Foreign Minister Urmas Paet emphasised that the humanitarian situation in Haiti continues to be very complicated. “In order for the aid that has been donated and that will continue to be donated to reach those in need, the international community must have close co-operation. Helping to co-ordinate aid is the goal of the Estonian logistics experts in Haiti,” stressed Paet. “At the same time, we must make plans for the reconstruction and restoration of Haiti as well,” he added.

The aid that has been given by Estonia thus far to alleviate the aftermath of the earthquake in Haiti totals 5.5 million kroons (352 500 EUR). Three million kroons (192 300 EUR) are reaching Haiti in the form of our and other international experts, and 2.5 million (160 000 EUR) were donated through the International Federation of Red Cross and Red Crescent Societies (IFRC).

To support the aid activities of international organisations, Estonia sent two 45 m2 tents with floors, furniture and lighting to Haiti, which are needed to provide temporary living and working space for the aid workers. Estonia has also sent an IT expert and a three-member logistics team with supplies to support the activities of the international organisations in Haiti. A member of the Estonian Rescue Service was working in Haiti as part of the European Union evaluation team.

The European Commission has promised to support long-term reconstruction work in Haiti with 3.1 billion kroons (200 million EUR). The European Commission has allocated 468 million kroons (30 million EUR) for humanitarian aid in Haiti and the member states have bilaterally donated nearly 1.44 billion kroons (92 million EUR).

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Ban Ki-moon stated that resolving Somalia's domestic political crisis also plays a major role in getting Somali piracy under control, as it would allow for the creation of a unified government.

Ban Ki-moon and Paet both emphasised the UN's role in supporting civil society and improving the humanitarian situation in Afghanistan. The UN Secretary-General stated that the UN is expanding its activity in Afghanistan little by little, steadily reaching out into more provinces.

Paet asserted that Afghanistan is an essential development co-operation partner for Estonia, and Estonia is interested in the expansion of the UN mission's activities to the southern regions of Afghanistan. “The presence of the UN mission in all regions of Afghanistan would improve the co-ordination of development activities and political communication,” he added.

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Estonia was chosen to be a member of the UN Economic and Social Council (ECOSOC) for the first time at UN headquarters in New York on Wednesday, 22 October. Estonia’s membership in ECOSOC will begin on 1 January 2009 and last for three years, until 31 December 2011.

The Economic and Social Council addresses many issues that are important to Estonia, such as development co-operation, human rights, and humanitarian issues. Foreign Minister Urmas Paet stated that Estonia can focus on humanitarian topics in ECOSOC, maintaining and enhancing our humanitarian aid reputation. “Our membership will also give Estonia a chance to increase its visibility in the international arena, intensify relations with developing countries, and continue being actively involved in advancing equal rights and the situation of women through UN development activities,” said the foreign minister.

The Economic and Social Council is the principal organ in the UN dealing with economic and social issues. ECOSOC is responsible for advancing economic development, human rights protection, and international co-operation in various social fields and to co-ordinate the activities of UN special agencies, programmes, and funds. The Council has the power to make or initiate studies, make recommendations, prepare conventions, and organise international conferences. ECOSOC’s 54 member states are chosen by the UN General Assembly.

Estonia has also submitted its candidacy to become a member of the UN Human Rights Council in 2012 and a member of the UN Security Council in 2020.

More information about ECOSOC can be found at: http://www.un.org/ecosoc/

Additional information on the High-Level Meeting is available at the web site of the President of the General Assembly at http://www.un.org/ga/president/62/issues/HLMonHIV.shtml

UNAIDS web page at http://www.unaids.org/en/

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The Council noted in a declaration that the Middle East was standing eye to eye with one of the most serious crises in years. Paet said the European Union is prepared to all it can to overcome the current impasse in the peace process and alleviate tensions in the region as a whole. "The Gaza ceasefire is the first important step toward abatement of tension," said Paet. "At the same time the ceasefire only has a point if violations cease and it is supported by the political process," he added.

The Council stressed the need to implement rapidly and completely the road map for peace in the Middle East, leading off with the most important points: the complete and rapid guaranteeing of freedom of movement and access, release of prisoners and recommencing security related cooperation.
Paet said that these first but important steps must lead to concerted negotiations concerning the final status of Palestine. "The goal is the same as it was: to end the occupation which began in 1967 and the creation of an independent, democratic and vital Palestinian state," said Paet.

With regard to Iran, the foreign ministers of the European Union expressed concern that Iran's policies could have a negative effect on Middle Eastern security and stability. Paet noted that Iran has become the most powerful state in the Middle East. "Iran must take its role in the region far more conscientiously," emphasized Paet. Paet added that Estonia hopes for a diplomatic solution to the nuclear question and expressed regret that Tehran has not displayed a serious attitude to the proposals of EU foreign policy head Javier Solana.

Speaking of problems related to Africa, the EU's foreign policy heads drew attention to Sudan's Darfur region. In the declaration passed, the Council expressed deep concern over the security and humanitarian situation and human rights violations in Darfur. Paet said that the expanding violence in Darfur has led to an abrupt worsening in the humanitarian situation, forcing the suspension of humanitarian operations. "We believe that violence must end immediately and that all sides must honour human rights pursuant to the recent declaration if the UN Human Rights Council," said Paet. "The Sudanese government must commence cooperation with the international community, since the level of violence in the country requires rapid intervention," he added.

Estonia has provided support for the improvement of the humanitarian situation in Sudan since 2004. This year the Foreign Minister sent 800,000 kroons for a humanitarian aid project in Sudan. The African country has been gripped by civil war for the last 21 years, as a result of which the country has been classified by the UN as one of the world's biggest humanitarian disaster zones. The UNHCR has specialized in aiding refugees in the region and humanitarian aid goes above all to refugees and displaced persons in southern Sudan.

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On 11 October, medical supplies, purchased for 50,000 kroons from the Foreign Ministry's means earmarked for Humanitarian aid were sent to Pakistan with the disaster relief team.

In addition, Estonia allocated 1.5 million kroons to NATO to support the NATO air bridge for delivering humanitarian aid to Pakistan.

More information on development co-operation is available on Foreign Ministry's home page at: http://www.vm.ee/est/kat_425/.

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The team arrived in Pakistan today morning, October 11. The team’s specific working area will be assigned shortly after the arrival. The length of the mission is twelve days and according to the planned agenda, the team will reside and work from its own base camp.

The Estonian Rescue Board’s chief director, Mati Raidma also joined the team and he will start working in the disaster area as a member of the United Nations Disaster Assessment and Coordination (UNDAC) team. Estonia is represented in the UNDAC since 2000. In previous years Raidma has taken part of UN missions in Turkmenistan, Kyrgyzstan, Yakutia and Georgia.

At the beginning of this year the Estonian Disaster Relief Team worked in Indonesia in the Banda Aceh region.

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Estonian Ambassador to the UN Tiina Intelmann stated that Estonia’s relations with Iraq have in reality existed for some time already. Estonia’s and the international coalition’s mission is more significant than ever – a new, democratic Iraq has to be rebuilt. “Also here Estonia can lend assistance primarily through the UN activities,” Ambassador Intelmann noted. Recently, the UN Security Council emphasised that all layers of the Iraqi population would like to see a stronger UN involvement in rebuilding Iraq. Estonia intends to offer experts to the UN working group helping write the Iraqi Constitution.

The Republic of Iraq recognised the Republic of Estonia on 1 January 1992. On 5 August 2004, the Government gave instructions to establish diplomatic relations with the Republic of Iraq. Estonian Defence Minister Margus Hanson visited Iraq from 2-6 November 2004, meetings with Iraqi Defence Minister Hazim al-Shalaani and Commander of the Coalition Forces General George Casey. The Defence Minister also met with the Estonian light infantry platoon ESTPLA-9 and the Estonian cargo handling team CT-3.

On 20 June 2003, 43 Estonian servicemen were sent to Iraq on a 6-month peace support operation. In the second half of last year, the fourth replacement team consisting of 32 servicemen was sent to Iraq. Three staff officers are also serving in Iraq. In spring 2005, the Iraqi Prime Minister sent a letter to the Estonian Prime Minister asking to extend the mandate of Estonian servicemen for another year. On 20 April 2005, the Riigikogu decided to extend the mandate of the Estonian servicemen until the end of this year.

Estonia has also made material contributions to the rebuilding of Iraq. In 2003, a donation was made to the UN Office for Coordination of Humanitarian Affairs (OCHA) and to the International Committee of the Red Cross (ICRC) for Iraqi humanitarian aid in the total amount of 1 million kroons. In 2004, a voluntary donation was made to the UN Children’s Fund (UNICEF) for purpose-oriented support to the rebuilding of Iraq in the amount of 500 000 kroons. An Estonian police instructor has also been sent on a mission to Jordan to train Iraqi policemen. 500 000 kroons were also donated to the UN for financing security forces in Iraq. Estonia donated 2 400 Kalashnikov automatic rifles originating from China and 1.1 million cartridges to Iraqi security agencies. Estonia has also sent a military instructor to the NATO Training Centre in Baghdad.

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Two projects are directed at Georgia; an EU training programme for Georgian Civil Servants in co-operation with the EU TACIS aid program applied for by the Estonian School of Diplomacy and a project for the officials from the Georgian Parliament in co-operation with the Swedish Parliament applied for by the Riigikogu Chancellery. In the framework of the first project, the Georgian officials will be introduced to the Estonian experience in European integration and a week-long training course is scheduled for 12 Georgian officials, who work in the European integration departments of different Georgian state institutions. The goal of the second project is through practical parliamentary work experience to support Georgia’s endeavours in building democratic rule of law. In the framework of the project, a week-long study programme will take place for 10 officials of the Georgian Parliament.

The initiator of the third project is also the Estonian School of Diplomacy. The Foreign Ministry is going to allocate two scholarships for a Moldavian and a Georgian young diplomat to study international relations and European integration in Estonia.

The Foreign Ministry also approved monetary support for a humanitarian aid project in Indonesia conducted by the Rescue Board. The goal of the project is to send the logistics group of the Estonian Disaster Relief Team on a mission to Calang, Indonesia to support international humanitarian aid organisations (OCHA, UNDP, WHO, WFP) engaged in liquidating the damage done in South-East Asia

The Foreign Ministry also decided to support the Open Estonia Foundation’s project in co-operation with the GLEN (Global Education Network of Young Europeans) education programme. The main purpose of the project is to raise the knowledge of Estonians regarding development problems in poorer countries and the importance of development co-operation in communication between countries and peoples. The project will allow for students and young professionals to work in their fields in a developing country, to obtain cultural exchange experience and then actively participate in promoting a solidarity way of thinking in Estonia. The global education project GLEN was created in 2003 by the German organisation ASA and partner organisations of the seven new EU Member States. The purpose of GLEN is to promote the understanding of the world based on solidarity, justice and economy through volunteering work in a developing country among European youth. To attain the goals of the project three Estonian youths (aged from 21 to 30) will participate in three-month community projects approved by the partners of the project.

8 million kroons is allocated from the Foreign Ministry’s 2005 budget to development and humanitarian aid.

An overview of Estonian development co-operation is available on the Foreign Ministry’s home page at the address: http://www.vm.ee/eng/kat_178/

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On 2 October 2009, the General Assembly adopted a resolution on Sytem-wide coherence (A/RES/63/311) which took up five key areas of concern:  strengthening the institutional arrangements for support of gender equality and women’s empowerment; strengthening governance of operational activities for development of the United Nations system; improving the funding system of operational activities for development of the United Nations system; “delivering as one”; and harmonization of business practices.

Kallas said at a conference on the media and corruption organized by the Estonian Newspaper Association in Tallinn on Friday that it was not such a mad idea as it might look.

Kallas said that Estonia needed something positive in order to stand out, the preconditions for working in the name of that aim existed and besides the budgetary revenues were not of a size worth mentioning.

"Quite a few times the issue has been discussed in various groups what Estonia's positive initiative in the European Union could be. We do not only have abuse of Russia by which we can stand out internationally," he said.

Kallas stated that there was no corruptive culture in Estonia. He said that the summary of the European Union's corruption study, which refers to "a possible corruption free culture, Estonia's advantage in its fight against corruption ahead of several Central and East European countries," allowed making such a statement.

Kallas pointed out that Estonia was ranked 27th in the corruption perception index of Transparency International. Of Estonia's neighbors, Finland is No 5 and Sweden No 1. Russia, one of the most corrupt countries, ranks 147th and also Latvia with its 52nd ranking is not in a very good position.

"We stand in the point of collision, intersection and influence of different business cultures. There are 12 countries of the European Union, including Slovenia, ahead of us and 14 countries coming behind us," Kallas said.

He said that comparing the situation in EU member countries within the limits of his competence, he dared to see Estonia not in the worst light.

Tallinn newsroom, +372 610 8862, sise@bns.ee

Handing over the medals to Col. German Kesa and Cmdr. Ingrid Muhling, Lt. Gen. Frank Helmick, commander of the NATO training mission and of the development headquarters of the international Iraqi security forces, said that the importance of NATO in building up the Iraqi security forces was increasing and that Iraqi officials highly valued the NATO training mission.

Kolonel Kesa serves as deputy chief of staff of the NATO training mission with logistic, communications, personnel and financial operations under his supervision.

Besides, Gen. Babaker Zebari, commander of the joint staff of Iraqi armed forces, recognized Cmdr. Muhling with a letter of thanks.

Col. Kesa said that the past six months had been of critical importance both for the mission and for the Iraqi security forces. "We have been parties in handing over responsibility to Iraqi authorities. The role of both the NATO training mission in Iraq and the role of countries is changing; and we must establish in cooperation with Iraqi security forces in what spheres Iraqi power structures need our assistance most," he said.

Estonian officers have been taking part in the NATO training mission in Iraq since 2005. Maj. Jaak Tammisto is now serving as head of the administration of the mission, and Maj. Ulo Isberg is starting his service as public relations chief.

The NATO training mission is the only NATO operation in Iraq. The aim of the 200-strong mission is to develop and support an independent and sustainbale Iraqi army, above all military educational institutions and command centres as well as those subordinated to the Interior Ministry.

In addition to training and consultancy the mission also coordinates support in terms of resources and accoutrement necessary for the training of the Iraqi security forces.

Tallinn newsroom, +372 610 8810, sise@bns.ee

The Czech Republic has identified three E's -- economy, energy and Europe in the world, in particular the development of the bloc's eastern partnership and transatlantic relations -- as the key issues of its presidency.

Estonia sees accession to the euro zone and streamlining the implementation of EU structural funds as prerequisites of creating an environment supportive of economic development. The country aims to be ready for the switch to the euro by 2010.

Another subject of great importance to Estonia is energy security that should be taken into consideration in the making of all other decisions, the government said.

For bolstering domestic security, Estonia is interested in the formulation of a general information technology strategy during the Czech presidency with account of the need to ensure central administration of large-scale information systems and consistent development.

The European Neighborhood Policy and development of measures to strengthen it are also included in Estonia's objectives.

Tallinn newsroom, +372 610 8822, majandus@bns.ee

Toomas Sildam, spokesman for the Estonian head of state, told BNS on Thursday that the details of the meeting and the topics to be discussed are being agreed.

"It's clear that there will be no shortage of topics at the meeting of Barroso and Ilves," Sildam said.

According to unconfirmed reports Ilves will confer on Barroso a high Estonian decoration.

"The president has not decided about who will be decorated yet. Under law the president must endorse the list two weeks before Independence Day at the latest," Sildam said.

Last year the president published the list of people decorated with Estonian orders on the occasion of the Feb. 24 Independence Day on Feb. 6.

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The plan sets out the main directions of development of military national defense, key development projects and the main investments for the next decade, spokespeople the Defense Ministry have said.

Drawn up in collaboration between the Defense Ministry and the General Staff, the development plan is in conformity with the strategic threat assessment and addresses the gaps in capabilities that have been identified.

The areas to be developed as priority areas are participation in foreign missions and interoperability with NATO, along with the development of corresponding units; development of command, communications, reconnaissance and surveillance systems; developing of the Amari air base; creating of mobile medium-range air defense to a limited extent, and further developing of short-range air defense.

The development plan also calls for the further development of an infantry brigade kept in high readiness, including the creation of armored units using tanks or armored personnel carriers.

It envisages the acquisition of fast boats for the defense of territorial waters and of transport helicopters, further developing of anti-tank capabilities, of the Kaitseliit volunteer corps, and increasing financing for the latter.

The number of professional military would be raised by about 125 people annually and the present model of conscript service preserved.

By the end of the period the size of the war-time operational structure of the defense forces would increase from the present 16,000 personnel to around 25,000 personnel, to which units formed on the basis of Kaitseliit will be added.

Fulfilment of the development plan presumes increasing the share of military spending to two percent of GDP by 2010 and keeping it there after that.

The development plan would be reviewed every four years.

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According to the bill forwarded to the parliament, Estonia would continue participating in the United Nations' military monitoring mission in Lebanon, Israel, Egypt and Syria with up to five defense forces personnel, spokespeople for thr Estonian Defense Ministry told BNS.

Participation this year is budgeted to cost 2.2 million kroons. Capt. Margus Aas and Capt. Georg Linkov of Estonia currently serve on one-year missions with UNTSO.

The existing parliamentary mandate expires on Feb. 22.

As of last summer more than 150 monitors from a host of countries were deployed with UNTSO.

Estonian observers have been deployed in Israel and Syria as part of UNTSO since 1997.

(EUR 1 = EEK 15.65)

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One of the reasons for the discontinuation of the mission is that Estonia failed to reach agreement with the Iraqi government on the accord concerning the status of the troops.

Thus the next Estonian infantry unit, ESTPLA-18, will not be deployed in Iraq. Estonia will continue taking part in the NATO training mission in Iraq with three staff officers, spokespeople for the Defense Ministry said.

Defense cooperation between Estonia and Iraq will continue in other forms in accordance with a bilateral agreement that is now being drafted.

Aaviksoo said there were three reasons why the mission in its present form was ended. The first is the stabilization in the security situation in Iraq.

"The second is that according to the Riigikogu mandate, concluding an agreement on the legal status of our soldiers was a prerequisite for the continuation of Estonia in Iraq, on which it is not possible in the light of the decision by the Iraqi parliament to reach an agreement satisfying both sides," said the minister.

The third reason is that the Iraqi government has clearly expressed the wish to continue bilateral defense cooperation in a non-combat form.

Aaviksoo will head to Iraq soon to officially end the mission of Estonian troops in a ceremony. He will also meet with Iraq's Defense Minister Abdul Al-Qadir Jassam to discuss the future of defense cooperation between the countries.

The Estonian defense forces have been taking part in the mission in Iraq since June 2003.

The Iraqi government has turned to the United Kingdom, Australia, Romania, El-Salvador and Estonia with a request to continue military cooperation also after the UN mandate for the coalition troops ended at the end of last year.

The previous Estonian combat unit, the 34-strong ESTPLA-17, returned from Iraq shortly before Christmas. ESTPLA-18 is manned and has been in readiness for deployment.

On Dec. 17 last year the Estonian parliament voted to extend the mission for Estonian troops in Iraq until the end of 2009 on the condition that Iraq will file a corresponding request and either a troop status accord will be signed or a UN resolution adopted on continued foreign troop presence in Iraq.

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Mantica has meetings scheduled with Estonian Foreign Minister Urmas Paet, Foreign Ministry Undersecretary Harri Tiido, and political director of the Foreign Ministry Clyde Kull.

The topics of discussion will primarily be related to bilateral relations, but will also include European Union enlargement, European Neighborhood Policy and Eastern Partnership, and the Mediterranean Union.

Other topics to be addressed are European security and energy policy, Italy's presidency of the G8, and issues in the Middle East, the spokespeople added.

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"Today we should deal with the structural reforms that will directly influence fiscal policy in the years 2011-2013," Padar, who was attending an EU finance ministers meeting in Brussels, told BNS.

Padar said he was referring to administrative reform, but also the social policy and reforms concerning the financing of health care.

The finance minister said that for drafting of the budget for 2010 laws need to be changed, and in addition the very cemented political promises will have to be reviewed in the context of 2009.

Padar highlighted the fear that meeting of the Maastricht criterion as regards fiscal deficit may be jeopardized by the debt burden of local governments.

"When we speak about government sector deficit -- and the Maastrict criterion is about government sector deficit -- then it's the state budget together with local governments. It is very important for local governments to be statesmanly in this kind of crunch and pre-election situation," he said.

According to an Eurostat survey published at the end of last year loans of local governments in Estonia make up a larger part of the government sector debt burden than in any other EU member state. Central government debt accounts for about 25 percent and debts of local government for about 75 percent of the country's total debt. Much of the rest of the EU has a local government debt burden making up around 20 percent of total debt, the next after Estonia being Luxembourg with a ratio of 30 percent.

According to a forecast published by the European Commission on Monday, Estonia's government sector debt in 2008 amounted to 4.3 percent of GDP. If the current policy continues it is set to grow to 6.1 percent of GDP in 2009 and to 7.6 percent in 2010.

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A delegation from the Estonian Ministry of Defense is currently holding talks with the Iraqi government on the troop status accord that would make it possible for Estonian military to continue serving in Iraq now that the UN mandate has ended.

Defense Minister Jaak Aaviksoo said last week that the accord will be signed in the coming few weeks.

Raidma, MP from the ruling Reform Party, would not offer any guesses as to what the outcome of the negotiations would be, adding that the result will be announced after the talks have ended.

Arising from Estonia's international commitments the country must increase its input in some other mission should no new Estonian unit head to Iraq. That, of course, requires the parliament's mandate, he added.

"The Ministry of Defense, the government and the General Staff will start dealing with this," Raidma said.

Estonia has taken a commitment to keep 250 defense forces personnel on foreign missions.

While a mission in Africa is a possibility, in greatest probability it will be Afghanistan, he said. In such case the parliament must change the mandate concerning Afghanistan.

There are 140 Estonian personnel deployed in Afghanistan now.

The parliament last year extended the Afghanistan mission of the Estonian defense forces until Dec. 31, 2009 and increased the contingent's maximum size from 150 to 170 personnel. Estonia is about to send a team of air intercept controllers and a team specializing in the fight against improvised explosive devices to Afghanistan.

The previous Estonian infantry unit, the 34-strong ESTPLA-17, returned from Iraq shortly before Christmas. ESTPLA-18 is manned and ready for deployment, waiting for the outcome of the negotiations on the accord setting out the legal status of the Estonian troops.

The Commission forecasts that the economic fall in 2008 would be more than two percent, 2.4 percent, to be precise.

The European Commission forecast economic growth for Estonia in 2010, when the gross domestic product of the country is going to rise by 1.2 percent.

Last fall the EU forecast Estonia's economic fall at 1.3 percent and the fall in 2009 at 1.2 percent. The EU then forecast the growth by 2 percent in Estonia's gross domestic product in 2010.

According to the recent broadcast consumption of the private sector will decline by 3.4 percent this year.

Estonia's export should decline by 1.6 percent and import by 3.2 percent this year. Next year, growth in export and import is expected at respectively 1.5 and 0.5 percent.

In the recent forecast the number of persons gainfully employed will contract by 4 percent, much higher than the 1.8 percent of the fall forecast.

According to the new forecast the level of unemployment in Estonia will grow to 8.8 percent this year and 9.7 percent next year; the earlier forecasts were 6.7 and 7.7 percent respectively.

The harmonized consumer price index will this year rise by 3.2 percent and next year by 2.7 percent. The earlier forecast was respectively 4.9 percent and 3.3 percent.

The forecast shortfall of the state budget with respect to GDP will be 1.6 percent this year and 1.3 percent this year. For 2008 the European Union forecast the Estonian shortfall at 2.8 percent.

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In the operation conducted in the area of Nawa to the south of Helmand's regional capital Lashkar Gah, the Estonian unit attacked Taliban positions assisted by indirect fire support and air support, making the enemy retreat, military spokespeople in Tallinn said.

"When we came into contact it could be seen that we're dealing with a highly motivated and disciplined enemy and that dealing with him will not be easy. Despite that the unit managed to suppress the enemy and make him retreat," Lt. Juri Pajuste, the Estonian commander in the battle, said.

Pajuste hailed his men's good training and high motivation as the reasons that made success possible.

The purpose of the operation was to ensure the region's security.

With indirect fire support from its own mortar unit and support from attack aircraft, the Estonian unit attacked enemy positions. As a result of the battle that lasted until sunset, the Estonian unit moved through Taliban positions and cleansed the areas formerly controlled by the enemy. The Estonians didn't suffer any losses.

The Estonian contingent in southern Afghanistan is deployed as part of the British led Helmand battle group. For the present Estonian contingent service in Afghanistan began in November.

Estonia has been taking part in the NATO-led operation in Afghanistan since 2003. There are about 150 Estonian personnel serving in Afghanistan right now.

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The duties of vice president will be performed by Estonia's permanent representative at the United Nations, Ambassador Tiina Intelmann, the press service of the Foreign Ministry said.

The council deals with several issues of importance to Estonia, such as development cooperation, human rights and humanitarian questions.

Membership in ECOSOC gives Estonia an opportunity to increase its visibility in the international arena, forge closer ties with developing countries and focus on the sphere of humanitarian aid. The country will also be able to continue active efforts to bring equality and improvement of women's situation into sharper focus in development activities of the UN, the ministry said.

ECOSOC is the world organization's principal body for promoting economic development, protection of human rights and international cooperation in social affairs and for coordinating the activity of UN special agencies, programs and funds. The council initiates and conducts research, gives recommendations, prepares conventions and organizes international conferences. The 54 members of ECOSOC are elected by the UN General Assembly.

The other vice presidents of ECOSOC come from Malaysia, El Salvador and Mauritania.

Estonia's membership in ECOSOC started on Jan. 1 and runs for three years.

Estonia has also made a bid for a seat on the UN Human Rights Council starting from 2012 and the Security Council from 2020.

Tallinn newsroom, +372 610 8832, sise@bns.ee

Finance Minister Ivari Padar told journalists after a government press conference on Thursday that negotiations with one institution are going on also now and that talks with more parties are to follow. He wouldn't give any names.

Padar said the institution that the Finance Ministry was in talks with was not the International Monetary Fund (IMF). The Finance Ministry started inquiries as regards the terms of a possible loan already at the end of the fourth quarter of 2008, he said.

Shortly after the end of the press conference Padar specifified his remarks through spokespeople.

"The Finance Ministry has not started formal negotiations as regards taking a loan. We have as part of our normal work had meetings with different banks and international financial institutions, at which the possibilities and terms of getting a loan have been discussed among other topics. These have not been specifically negotiations on borrowing, which is why there is nothing more to be added on this topic," the minister said.

Padar said it was important to remember that possible borrowing would not mean that additional money was added to the state budget, but it would offer additional possibilities to manage cash flows. The loan will not replace the forthcoming vital cuts in the state budget, he said.

The minister underscored that it would be rational to finance with a loan activities that are aimed toward economic development or principal, structural political reforms.

Padar said in his remarks to reporters that the contraction in tax receipts at the end of 2008 increased the danger that the deficit in this year's budget could exceed the limit of 3 percent of GDP, which must not happen if Estonia wishes to qualify for eurozone membership.

Judging by what the ministry knows at this point the size of the gap this year might be from 5 to 6 billion kroons (EUR 0.32-0.38 mln), despite the cuts made in the course of the budget drafting process in late 2008, Padar said.

Information about December tax receipts raised the estimate of the size of this year's deficit by one billion kroons, he added.

Prime Minister Andrus Ansip told the government press conference that it would be reasonable to borrow money for specific investments, especially infrastructure projects.

Such projects are financed at favorable terms by the Nordic Investment Bank, for instance.

Answering a question from BNS as regards the interest rate of the possible loan, Ansip ruled out a rate to the tune of 10 percent and also said Estonia could raise money cheaper than the 5-6 percent suggested in the question. Interest rates in Europe apparently will keep declining, yet the situation may change fast, the prime minister said.

(EUR 1 = EEK 15.65)

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Aaviksoo said in the information hour in parliament on Wednesday that the treaty to be signed with Iraq would be certainly in line with Estonian law.

"We will naturally see that the treaty would be in line with our legislation concerning Estonia's obligations. We can see no reason for the need to ratify the treaty in parliament," Aaviksoo said.

The Iraqi presidential council ratified on December 28 the parliament's decision that permits British, Australian, Estonian and other countries' troops to remain in the country also after the beginning of this year when the United Nations mandate expired.

Before Christmas a 34-strong Estonian infantry platoon, Estpla-17, returned from Iraq to Estonia. A new platoon, Estpla-18, has already been formed, but before legal clarity Estonian soldiers are not going to be dispatched there.

At present there are three Estonian soldiers in Iraq taking part in the NATO training mission.

The Estonian parliament decided on December 17 to extend the Estonian defense forces mission in Iraq until the end of the next year in case Iraq makes a respective request and a treaty on the status of forces is signed or the United Nations passes a respective resolution.

The Estonian defense forces have taken part in the Iraqi Freedom operation since June 2003.

Tallinn newsroom, +372 610 8862, sise@bns.ee

Ansip expressed pleasure at the fact that Thorbjorn Jagland was prepared to run for secretary-general of the Council of Europe side by side with his busy political activity, a spokesman for the government told BNS. But the prime minister underlined that only the national parliaments' delegations to the Parliamentary Assembly of the Council of Europe could make the final decision concerning the secretary-general.

The Parliamentary Assembly of the Council of Europe will elect its secretary-general in June for the next five years. The deadline for the nomination of candidates is the end of February.

Also Speaker of the Estonian parliament Ene Ergma met with her Norwegian colleague.

Ergma said that Hagland as a strong candidate to the post of secretary-general of the Council of Europe and Estonia could only be happy the he was running.

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Ilves, now on an official visit to Azerbaijan, gave an interview to Azerbaijan's state television answering to questions about cooperation between the two countries, neighbourhood policy of the European Union, the Nagorno-Karabakh conflict, energy security, the situation of the Azeri community in Estonia and other aspects of relations between the two countries.

Ilves described the relations between the two countries as "very good", but added that they would have to be deepened, the Azerbaijani news agency Azertac reported.

Speaking about the EU neighborhood policy, Ilves emphasized the role of Azerbaijan in the region, particularly taking into consideration the present energy security situation.

The Estonian president said that the present gas row between Russia and Ukraine showed one more time that it was dangerous for Europe to depend on one supplier alone. He also underlined the need to more seriously deal with building of the Nabucco gas pipeline.

Ilves credited the role of the Estonian Azeri community in the development of relations between the two coutries. He said that Estonia could be proud of its Azeri community whose members, citizens of Estonia, actively participated in political life.

Speaking about the Nagorno-Karabakh conflict, Ilves said that Estonia had alwayas respected the principle of territorial integrity, pointing out that war had never solved any problems. Ilves added that the Nagorno-Karabakh issue was not a problem for Azerbaijan alone but to many countries.

Ilves was the first Estonian head of state to visit Azerbaijan and he is in Baku at Azerbaijani President Ilham Aliyev's invitation from January 12 to 15.

The president is accompanied during the visit by Economic Affairs and Communications Minister Juhan Parts and a nearly 20-strong business delegation.

Azerbaijan and Armenia waged a war over Nagorno-Karabakh from February 1988 until May 1994. Because of the war Azerbaijan lost 9 percent of its territory and more than 800,000 fugitives were forced to return to Azerbaijan.

After the war a mainly Armenian-populated Republic of Nagorno-Karabakh with its capital in Stepanakert was established and only the Republic of Armenia has recognized its independence.

Budgetary income during the 12 months totaled 84.9 billion kroons, 94.1 percent of the target set out in the state budget law.

Expenditures were financed in the amount of 90.1 billion kroons or 94.4 percent of the budgeted sum, the Finance Ministry said.

Of the year's fiscal intake of 84.9 billion kroons, tax income made up 70.4 billion kroons and non-tax income 14.5 billion kroons. In December seven billion kroons was received.

In comparison with 2007, receipts grew by 2.9 billion kroons or 3.4 percent.

Of tax income, 95.8 percent of the planned amount was received. Inflow of tax revenue grew by 2.7 billion kroons or 3.9 percent against 2007.

Receipts of social tax, at 31.3 billion kroons, made up 99.2 percent of the budgeted amount. Receipts increased by four billion kroons or 14.8 percent in comparison with 2007.

The budget received 4.3 billion kroons in personal income tax, 104.3 percent of the budgeted amount.

VAT receipts totaled 20.5 billion kroons, which makes up 90.1 percent of the total envisaged by the budget and the supplementary budget. VAT income in 2008 declined by 1.8 billion kroons or 8 percent from 2007.

Of expenditure items, social support monies and allocations intended for a specific purpose topped the list with 65.1 billion kroons, having grown by 10.8 billion kroons or 16.6 percent year on year. The rise resulted mainly from increases in pensions and other social payments.

(EUR 1 = EEK 15.65)

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Political directors of all the 26 NATO countries as well as representatives of Croatia and Albania will take part in the meeting, a spokesman for the Estonian Defense Ministry told BNS.

The political directors will discuss issues on the agenda of the NATO defense ministers meeting in February in Krakow, such as the general security situation, NATO operations, future of the NATO Response Forces and other matters.

The Estonian delegation and the talks will be chaired by Sven Sakkov, deputy state secretary of the Defense Ministry for defense policy.

Jiri Sedivy, assistant NATO secretary-general for defense policy and planning, will take part in the meeting.

In Estonian terms the post of political director of the Defense Ministry corresponds to that of state secretary of the Defense Ministry for defense policy.