NordenBladet —The Government approved two financial allocations from the Government’s reserve as meeting decisions.
Firstly, it was decided to allocate 50,000 euros from the Government’s reserve to the Ministry of Foreign Affairs to provide assistance to the Czech Republic.
Based on the data of the European Centre for Disease Prevention and Control from 3 November, the Czech Republic ranks second in Europe in terms of the 14-day infection rate of COVID-19, after Belgium. The 14-day infection rate per 100,000 inhabitants is 1586.3 in the Czech Republic. This level of spread of the virus places an exceptionally heavy burden on the local healthcare system and the state has made several requests for assistance to alleviate the issue. Although Estonia’s capacity and capabilities to provide assistance that would exactly match the assistance required by the Czech Republic are highly limited, Estonia considers it vital to offer its support to the Czech Republic as a matter of urgency in resolving a very complex and difficult crisis situation.
Secondly, the decision was made to allocate 100,000 euros from the Government’s reserve to the Ministry of Justice in 2020 to cover the costs of supporting the provision of legal advice.
NordenBladet —At today’s meeting, the government decided to allocate 880,000 euros from the reserve to the Ministry of Education and Research to continue the COVID-19 monitoring study in November and December 2020. The aim of the monitoring study conducted by the University of Tartu is to monitor the actual spread of the coronavirus and the course of the epidemic in Estonia.
According to Prime Minister Jüri Ratas, in the current situation, the state needs science-based information to make decisions. “In order to control the spread of the virus, we need constant input from scientists on the epidemiological situation. In this way, as a country, we can respond quickly and flexibly and avoid placing an excessive burden on our people and businesses. The monitoring study provides valuable input on the basis of which the government can plan further activities,” said Ratas.
The Minister of Education and Research Mailis Reps acknowledged the work of the researchers. “Estonia has done well in preventing the spread of the virus so far, and our researchers have played an important role in this. The government has funded several large-scale researches to further investigate the coronavirus during and after the emergency situation,” said Reps.
The monitoring study is carried out on the basis of a random sample of the adult population, which makes it possible to identify the extent of the spread of asymptomatic infections. People’s risk behaviour and its changes will also be studied. At the beginning of September, for example, thanks to a monitoring survey, the latent spread of the virus was discovered in Ida-Viru County and a little later nationwide. Thanks to the monitoring survey, the spread was detected in the initial phase of the outbreak.
Researchers at the University of Tartu have conducted a cross-sectional study consisting of eight survey waves to determine the actual spread of the coronavirus and the course of the epidemic. Based on a random sample, nearly 21,000 people across Estonia have been interviewed and tested. Six waves were conducted countrywide and two were conducted regionally in Ida-Viru County and Tallinn and Harju County.
The allocated amount is intended for four study waves in November and December this year. After each study wave, the research team has provided the government with mid-term reviews which serve as a basis for evaluating the effectiveness of the measures and revising them if necessary.
The scientific council will use the results of the study to assess the situation and to advise the government in planning and easing measures. The results of the study will also be shared with the Health Board.
Participation in the study is voluntary – the people included in the sample have the right to refuse to answer or take the test at any time.
In addition to the COVID prevalence monitoring survey, waste water surveillance will continue to detect latent spread of the virus and to do so as early and accurately as possible. If the possible spread of the virus is detected in some areas during the surveillance of waste water, the share of these areas in the population-based monitoring sample will be increased.
NordenBladet —At today’s cabinet meeting, the government discussed the possibilities of using nuclear energy in Estonia and decided that a national working group of nuclear energy should be created to define the nation’s positions towards the issue.
So far, no decisions have been made regarding the use of nuclear energy in Estonia, as thorough preparations are required prior to that. The working group will be tasked with analysing the feasibility of using nuclear energy in Estonia with the help of foreign experts and submitting their conclusions and proposals to the government. Their impact analysis on the implementation of nuclear energy will help the government make a calculated and informed decision on the matter.
“The introduction of nuclear energy after 2030 is one possible way of increasing Estonia’s energy security, sustainability, and competitiveness, as well as reaching the climate goals set for 2050,” said Prime Minister Jüri Ratas. “It is one of many possible solutions for producing climate-neutral energy in Estonia, which definitely deserves widespread discussions within the society and thorough analyses to help us make decisions in the future.”
The topic of nuclear energy has become prevalent in Estonia mostly because it would help to achieve Estonia’s climate goals for 2050 as an energy source with low carbon emissions. Another benefit of nuclear energy is its capability of ensuring round-the-clock electricity supply regardless of weather conditions. However, one of its most significant downsides is the time-consuming and resource-intensive implementation process.
According to Minister of the Environment Rene Kokk, the use of nuclear energy would help to ensure Estonia’s energy security, but would also require large-scale investments from the government to build and operate a power plant, as well as an extended period of preparation.
“In addition to producing electricity, nuclear energy can also be used to heat buildings and, with certain technological solutions, produce hydrogen. However, numerous security and political risks are involved with establishing a nuclear power plant. It is also important to consider the issue of the used nuclear fuel – handling and storage thereof is complicated and would require the establishment of a suitable repository,” he explained.
The implementation of nuclear energy requires at least 10–15 years of preparatory work. Therefore, Estonia’s first nuclear power plant could not begin operations before 2035.
Currently, Estonia lacks the legal framework, the competent authorities, and the experts required for establishing nuclear power plants. Pursuant to the Radiation Act, a radiation practice licence for the operation of a new nuclear facility can be applied for after the Riigikogu has adopted a decision on commissioning a nuclear facility.
As it is currently not known whether a nuclear power plant could be built in Estonia and what technological solutions it would implement, the requirements for the storage of nuclear waste created in the plant are also not defined. In order to store the used nuclear fuel, a suitable repository should be established in Estonia. The nuclear waste repository that will be constructed for the disassembly and safe storage of the training reactors of nuclear submarines in Paldiski by 2040 is not suitable for the possible storage of nuclear fuel.
The decision of using nuclear energy is a matter of great significance for the general public; therefore, it is important for people to be allowed to contribute to discussions on the matter. It will be specified in the course of the process of analysis whether the general public would be involved in the form of a referendum or in other ways.
The working group will be assembled by the Ministry of the Environment in cooperation with the Ministry of Economic Affairs and Communications and other relevant ministries.
NordenBladet —The government approved the positions for the video meeting of the Economic and Financial Affairs Council of the European Union on 4 November.
The economic and finance ministers of the EU will discuss the European Commission’s action plan for combating money laundering and terrorist financing. Money laundering almost always has an international dimension, which means that money is moved across national borders. Global cooperation and cooperation between the European Union and its Member States is of key importance in the fight against money laundering. In order to prevent and combat financial crime, the European Union needs a more uniform set of rules, cooperation and exchange of information between countries need to be promoted, and supervisory issues need to be addressed. The government supports the Council’s conclusions on the fight against money laundering and terrorist financing.
As part of the European Semester process, ministers will discuss the annual sustainable growth strategy and the report on the European Court of Auditors’ country-specific recommendations.
The government considers that the rapid and successful implementation of the Recovery and Resilience Facility is essential to support the economic recovery of the Member States, which presupposes the establishment of national recovery plans. The government also agrees with the Council’s conclusions on the European Court of Auditors’ report on the European Semester.
The European Fiscal Board will present the 2020 report to ministers. In addition, the EU statistical system will be discussed.
The government supports the adoption of conclusions on EU statistics and emphasises the importance of using new methods and technologies to collect high-quality statistics and to reduce the associated administrative burden.
NordenBladet — Today, at a meeting with the members of the American Chamber of Commerce in Tallinn, Prime Minister Jüri Ratas said that the coronavirus crisis has proven how important cooperation between people and countries is. He confirmed that the United States of America is and will always remain an extremely important partner for Estonia.
In his speech, Ratas thanked all the members of the Chamber of Commerce for their contribution in developing economic relations between the United States of America and Estonia. He stressed that the year has been difficult, and the impact of the pandemic has been significant on the economies of Estonia as well as the USA. “The crisis is not over, and we have several months of uncertainty ahead of us. This means that the government must be prepared to support the economy as much as possible and necessary.” According to the prime minister, we must maintain the balance between the measures applied for restrict the spread of this virus and maintaining our normal everyday activities.
“One of the most important things that this crisis has demonstrated is the fact that people and countries are dependant of each other,” the prime minister said. “Most countries have applied strict measures to control the pandemic. We must work together to conquer this virus and protect our people. We will recover quicker if we work together.”
Ratas also pointed out that the crisis may present us with new opportunities to strengthen cooperation and increase solidarity while also improving our efficiency and profitability. One example of this is the increased demand for digital services. “Whether we are speaking of e-health, e-learning or cyber security, the Estonian private sector has great abilities for offering these services,” said the prime minister.
Ratas and the entrepreneurs also discussed the Three Seas Initiative, the priorities of the next state budget, and future plans of the government.
NordenBladet —Today’s meeting between Prime Minister Jüri Ratas and the representatives of the start-ups focused on the progress of the sector, development prospects, and conditions for reviving the private and venture capital market.
‘Start-ups more narrowly and IT sector more broadly have an enormous growth potential and a focus on offering high value-added products. As almost a quarter of the staff in this sector are foreigners, then from the perspective of our growth and competitiveness, it is important for Estonia to be a country where foreign talents want to come. Hopefully, under the leadership of the Ministry of Economic Affairs and Communications and in cooperation with the representatives of the sector, we will find solutions on how to support start-ups,’ Prime Minister Jüri Ratas said.
In addition, the main economic indicators of the start-up sector were presented at the meeting. According to the Estonian Startup Database, 1,105 start-ups with a total of nearly 6,300 employees have been registered in Estonia. The average wages in the sector amount to 2,508 euros, which is 1.8 times higher than the average wages in Estonia. Based on the forecasts, the combined turnover of the Estonian start-up companies will exceed 550 million euros this year, which is 40% more than last year. Labour taxes are paid in the amount of almost 71.7 million euros. The annual growth of the start-up sector is 30 percent on average.
The meeting also discussed the proposals of the start-ups to make employment legislation more flexible and introduce new forms of employment relations.
According to the Prime Minister, several worthy ideas were taken from the round-table. ‘Working and investing in Estonia must be as simple as possible, and the regulating legislation supportive and relevant,’ Ratas said. ‘Most certainly, the experiences and proposals of the representatives of the sector are an excellent starting point to ensure that the state could support our companies in the best possible way,’ he added.
At the round-table meeting, the Ministry of Economic Affairs and Communications presented existing and new initiatives on state investments in the development of venture capital markets. The next round-table meeting with start-ups will be held at the Prime Minister in spring of 2021.
NordenBladet —The Act that was passed in the Riigikogu today establishes the rules of the road and the requirements for electric scooters and other light electric vehicles so that their use would be secure and safe for other road users.
With the Act on Amendments to the Traffic Act (191 SE), initiated by the Government, a new category of vehicles is implemented, personal transporter, which covers various vehicles intended for carrying one person and powered by electricity, for example, electric kick scooters, electric skateboards, self-balancing transporters and other similar vehicles without seating. Under the Act, personal transporters may drive mainly in the environment intended for pedestrians and cyclists, and on the carriageway in exceptional cases. The requirements for crossing the carriageway and the obligations to give way, and the obligations of the driver of personal transporter in ensuring safety are also regulated. The maximum speed for personal transporter is established at 25 km/h, and in close proximity to pedestrians, it must drive at a speed not endangering pedestrians.
In order to ride a personal transporter on the carriageway, 10–15 year old drivers of personal transporter are required to have the right to ride a bicycle, and drivers aged under 16 must wear a fastened helmet when driving on a road. Also, requirements for the power of personal transporters and for the use of reflectors and lights are established, the maximum permitted width of personal transporters and the requirements for stopping and parking are provided for, and the fine rates for the violation of traffic regulations are provided for.
The requirements concerning cyclists and drivers of mini mopeds and mopeds, in particular the issues relating to their location on the road and their obligation to give way are additionally specified.
The Act also contains a transitional provision under which persons who, before the entry into force of the Act, will have procured a personal transporter with a maximum design speed exceeding 25 km/h will be able to continue to use it in the case when the speed limit for personal transporters will be set at 25 kilometres per hour.
The Act specifies, among other things, the safe passing of pedestrians, the obligations in the event of restricted visibility, and the safety requirements in buses used for occasional carriage of children on roads outside built-up areas.
During the debate, Raimond Kaljulaid (Social Democratic Party) and Sven Sester (Isamaa) took the floor.
77 members of the Riigikogu voted in favour of the passage of the Act, nine were against, and there were three abstentions.
The Riigikogu also passed a Resolution
With the Resolution of the Riigikogu “Increasing the Holding of the Republic of Estonia in the International Finance Corporation” (237 OE), submitted by the Government, the Riigikogu grants its consent to increasing Estonia’s holding in the International Finance Corporation (IFC) by 3102 shares totalling 3 102 000 US dollars (approximate cost 2 872 222.22 euro). It is a financing transaction. The obligations will be assumed in US dollars. Contributions will be made within the period 2021–2025.
The International Finance Corporation is an organisation focusing on private sector investments. For example, in 2019, it invested 19.1 billion US dollars in 65 countries into the businesses of developing countries. The IFC, which is a member of the World Bank Group, was established by 31 countries in 1956. The authorised capital stock of the IFC was 100 million US dollars. The IFC currently has 185 members. Although the IFC is an institution that is a member of the World Bank Group, it has its Articles of Agreement and separate share capital, financial structure, management and employees.
87 members of the Riigikogu were in favour of passing the Resolution.
Two Bills passed the second reading
The Bill on Amendments to the Tax Information Exchange Act (238 SE), initiated by the Government.
In order to facilitate the overcoming of the economic difficulties accompanying the emergency situation due to the coronavirus, the European Union member states have agreed by a relevant Council directive that member states can defer the beginning of the exchange of information on cross-border arrangements by six months. In view of this, the Bill will make amendments to the time limits for filing the arrangements, while no substantial amendments will be made.
The exchange of information concerns cross-border arrangements that enable aggressive tax-planning and the concealment of the beneficial owner of assets or complicate the exchange of bank account information. Under the current law, providers of tax advice, banks and taxpayers would have to begin to communicate the information on the arrangements to tax authorities from 31 July 2021. According to the Bill, 31 January 2021 will be the new deadline.
The Bill on Amendments to the Labour Dispute Resolution Act (214 SE), initiated by the Government, will amend the principles for the remuneration of lay assessors of labour dispute committees.
Under the Bill, the remuneration of a lay assessor will be equal to the minimum hourly wage rate, which is 3.48 euro this year. At present, the remuneration of lay assessors is calculated on the basis of the Salaries of Higher state Servants Act according to which the hourly wage is 3.07 euro. In the future, the work of lay assessors of labour dispute committees in preparation for sessions will be remunerated. At present, remuneration is paid only for the time spent on attending the sessions of a labour dispute committee.
The explanatory memorandum notes that two lay assessors must attend a session of a labour resolution committee: a representative of employees and a representative of employers. Similarly to lay judges, the purpose of lay assessors’ attendance is to view the labour dispute matter from a human rather than juridical aspect in the resolution of a labour dispute, taking into account the particularities of the views of the employees and the employers where they are of importance in the resolution of the labour dispute matter. The bases for the calculation of the remuneration paid to lay assessors have not been changed since 2013, and, under the current procedure, the remuneration paid to lay assessors is lower than the minimum hourly wage rate. This restrains employees and employers’ willingness to contribute to the work of labour dispute committees in the resolution of labour disputes.
In addition, the Bill introduces amendments aiming at specification and amendment of the current procedure in the interests of legal clarity. For example, it will be specified how many people can have recourse to a labour dispute committee with a joint petition, and the additional option of conducting sessions via a video bridge will be provided.
Two Bills passed the first reading
The Bill on the Ratification of the Agreement between the Republic of Estonia and the European Organization for Nuclear Research (CERN) concerning the Granting of the Status of Associate Member in the Pre-Stage to Membership of CERN (230 SE), initiated by the Government.
With the ratification of the agreement, Estonia will become an associate member of CERN. The Agreement concerning the granting of the status of associate member in the pre-stage to membership of CERN needs to be ratified in the Riigikogu, because, with the agreement, Estonia joins an international organisation and it regulates tax issues, granting a tax exemption on the property and income of CERN.
The accession will allow knowledge transfer for Estonian firms, in particular in high technology, but it will also open wider opportunities to participate in CERN procurements. After 2–5 years of associate membership, Estonia will become a full member of CERN and will conclude a new agreement that will replace this agreement. The associate member status before becoming a full member is mandatory for new member states. When Estonia becomes a full member, additional opportunities will open to it, as the maximum limit for the amount that can be recovered from CERN will be eliminated. In the associate member period, an amount recovered must not exceed the contribution of the state, and the state is not entitled to vote in the Council.
Prime Minister Jüri Ratas and Director-General of CERN Fabiola Gianotti signed the agreement via a video bridge in Tallinn and Geneva on 19 June 2020.
CERN was established on 29 September when the Convention for the Establishment of a European Organization for Nuclear Research entered into force. The Organization provides for collaboration among European States in nuclear research of a pure scientific and fundamental character, and in research essentially related thereto.
The Bill on the Ratification of the Council of Europe Convention on Cinematographic Co-production (revised) (258 SE), initiated by the Government.
The Convention aims to foster international cinematographic co-operation in Europe. The revision of the Convention was due to the significant technological, economic and artistic evolution of the film industry since 1992. The new technology has changed both the cinematographic production, distribution and release methods, and the national financing schemes in cinematography have diversified in the states parties. As a result of the Convention, it will be possible for Estonian cinematographic producers to join international co-productions more easily, thereby expanding the creative and financing opportunities to make film projects.
The Convention applies to co-operation films, for example, cinematographic works of fiction, animation and documentaries that are intended to be shown in cinemas and, as a general rule, involve at least three producers from three member states. The co-productions of the relevant countries are subject to the approval of the competent authorities of the states parties and the application for co-production status, and once it is obtained, it is possible to apply for support from public funds. The accession to the Convention is important to Estonia for participation in co-productions where the contribution of a producer remains below 10 per cent of the production costs of the film but is not less than 5 per cent. Compared to the Convention of 1992, the minimum necessary financial contribution of a minority co-producer has been reduced and this opens the possibility in particular for small countries to participate in more co-productions.
Co-production is of significant importance in the making of Estonian films with a higher than average budget because it is impossible to produce such films with Estonian funding only. The application of the Convention will involve no additional expenses from the state budget because the objectives set will be achieved within the budget of the Ministry of Culture and the Estonian Film Institute Foundation.
NordenBladet —Today, the Government decided to shorten the restriction on movement following border crossing, as well as the quarantine period of an individual who has had close contact with a person infected with the coronavirus, from 14 to 10 days.
Pursuant to the decision, the restriction on movement following border crossing will be shortened from 14 days to 10 days when arriving from a country with a high risk of infection. The opportunity to substitute the restriction on movement with two tests, the first of which will be taken immediately after arriving in Estonia, and the second no earlier than on the seventh day after receiving a negative result for the first test, will continue to remain in effect. If both test results have been negative, a person will be able to resume their normal life without waiting for the end of the 10-day isolation period. Specificities when travelling to Estonia from Latvia, Lithuania or Finland will also remain in effect.
In addition, the duration of quarantine for an individual who has had close contact with a person infected with the coronavirus will also shorten if they take a coronavirus test no earlier than on the 10th day, and the result thereof is negative or a doctor has deemed them not infectious. The 10-day period starts from the most recent close contact, which will be determined by the Health Board.
These amendments will specify the existing regulation and prescribe an exception under specific circumstances, pursuant to which, an individual, without whom the performance of a task of the State or local government would be impossible or seriously impaired, and who has had close contact with an infected person, is able to perform their task in urgent cases. An exception is also prescribed for a person who provides a vital service.
The amendments will enter into force as of tomorrow for all persons in quarantine and self-isolation, including those people for whom, as at tomorrow, a restriction on movement or quarantine is in effect.
Decisions of the Government are based on scientific research pursuant to which, about 95% of people exhibit symptoms of disease within 10 days of coming into contact with an infected person. Considering this, shortening the isolation period has been recommended by international organisations as well as the Estonian Society for Infectious Diseases, the scientific advisory board that advises the Government, and the Health Board. The isolation period has already been shortened by several European States, including Finland and Latvia.
The duration of quarantine applicable for a person diagnosed with COVID-19 does not change with the Decision of the Government.
NordenBladet — After a discussion in a cabinet meeting, the government decided to approve draft development plans for five areas and send them to the Riigikogu for discussion. After a discussion in the Riigikogu, the government must finally approve the development plans.
First, the government approved the draft youth development plan for the period of 2021–2035. The new development plan is a continuation strategy for the current youth development plan 2020, setting goals for the youth field for the next 15 years. Based on the goals, young people in all regions of Estonia must be able to live a healthy and fulfilling life. It is important to empower young people and change communities and the state so that Estonia would be the best environment for growth, living, and self-fulfilment.
Second, the government approved the draft education development plan for the period of 2021–2035. The general goal of the development plan is to ensure that the people of Estonia have knowledge, skills, and attitudes that enable them to fulfil themselves in their personal lives, work, and society, and to improve their livelihood in Estonia and promote global sustainable development.
Third, the government approved the draft Estonian language development plan for the period of 2021–2035. The general objective of the development plan is to ensure the vitality and function of the Estonian language as a primary language in every sphere of life in the Republic of Estonia, to guarantee everyone the right and opportunity to use the Estonian language, to preserve and strengthen the status and reputation of the Estonian language and Estonian cultural and information space, and to value knowledge of other languages.
Fourth, the government approved the draft development plan for research and development, innovation, and entrepreneurship for the period of 2021–2035. The aim of the development plan is to ensure that Estonian research, development, innovation, and entrepreneurship together increase the well-being of Estonian society and the productivity of the economy by offering competitive and sustainable solutions for the development needs of Estonia and the world.
Fifth, the government approved the draft internal security development plan for the period of 2020–2030. The overall goal of the development plan is to promote a secure society where people could contribute to the life of the community. The most important activities of the development plan include the following: creation of a preventive and safe living environment; prompt and professional assistance; secure internal security; efficient population management, and smart and innovative internal security. In order to achieve the objectives of the development plan, a draft programme for the periods of 2020–2023 and 2021–2024 has been prepared with a more detailed description of roles and expected results.
NordenBladet —Today, the Riigikogu passed the Act under which, in the future, local governments will resolve extra-judicial place name disputes instead of the Place Names Board. The Board will give its weighted positions in name disputes where necessary.
The Act on Amendments to the Place Names Act (186 SE), initiated by the Government, also provides more clearly for the status of place name to preclude cases where a name is intended to give a named feature a legal status, that is, to change the regime of the rights and obligations of the named feature. The names of the persons who have acted against the establishment of the Republic of Estonia, the maintenance of constitutional order or the restoration of Estonia’s independence may no longer be established as commemorative names, that is, place names established in the memory or honour of persons. In the event of a conflict, the names authority will have to change the place name.
Amendments are also made to the procedure for the establishment of the Place Names Board. In the future, the Minister of Public Administration will establish the statutes of the Place Names Board, and the number of the members of the Place Name Board will no longer be determined at the level of Act. At present, the Board may have 11-15 members.
In the future, the Land Board who was the authorised processor of the register up to now will maintain the place names register instead of the Ministry of Finance. The functions of the authorised processor of the register are assigned to the information technology centre of the Ministry of the Environment. On the basis of that, in the future, the Minister of the Environment will also establish the statutes of the register.
During the debate, Eerik-Niiles Kross took the floor on behalf of the Estonian Reform Party Faction.
76 members of the Riigikogu were in favour of passing the Act and there was one abstention.