SOCIETY / BUSINESS

Estonian Inflation to Slow Down in H2 of 2023: Bank of Estonia Deputy Governor

By
Helena-Reet Ennet
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NordenBladet – According to Bank of Estonia Deputy Governor Ülo Kaasik, inflation in Estonia has not risen notably since last August and is expected to slow down to single-digit levels in the second half of 2023. The decrease in inflation is due to the drop in energy prices and the price of oil and natural gas, while food prices will continue to rise. The real estate market has also sensibly settled.

The European Central Bank (ECB) has raised interest rates to slow inflation in the euro area, and Kaasik noted that the monetary policy had reacted firmly. He said that “there are no good ways to tackle inflation that has gotten too high, so we have to choose between bad and worse, and inflation remaining high for too long would be the most harmful outcome for people and for the economy as a whole.”

“The Bank of Estonia expects inflation to come down and approach a more normal level in the second half of this year,” Bank of Estonia Deputy Governor Ülo Kaasik said at the recent annual conference of the Estonian Economic Association (EMS).

The deputy governor also acknowledged that difficult times will continue for the Estonian economy, but the outlook is better for the second half of the year, with government spending supporting demand in the domestic market and growing company profits. The ongoing war in Ukraine is expected to impact Estonia’s economy more strongly this year, but Kaasik noted that the number of people employed in the Estonian economy is at a near record high. He stressed that the significant budget deficit is a feature of Estonia’s state finances and additional spending requires additional revenues.

Featured image: Ülo Kaasik (NordenBladet)

Estonia: Shift in consumer behavior towards focused shopping and price consciousness

By
Helena-Reet Ennet
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toit nordenbladet

NordenBladet – In a recent interview with ERR, Marge Kikas, head of sales for Maxima, a grocery chain that sells Latvian, Lithuanian, and Polish products, revealed a shift in consumer behavior in their stores. Customers are buying smaller quantities, avoiding impulse buying, and basing their purchases on price rather than the country of origin of the food.

“People look at the price. If the Estonian product happens to be cheaper, that is what they buy, while shoppers buy Latvian or Lithuanian if it is cheaper. Many clients decide based on the final price,” Kikas said.

Furthermore, consumers are also more likely to opt for private label alternatives to brand products, keeping an eye out for discounts. The supermarket chain has responded by increasing its private label selection.

Kikas noted a recent price rally in the last six months, with some product categories stabilizing in prices, however, the general price level is still rising. The future of prices is uncertain, as price negotiations are ongoing, but Kikas pointed out that eggs, mayonnaise, sugar, and flour have seen the greatest price advance, and sour cream has become significantly more expensive due to rising dairy prices.

“We can see some alleviation, while final stabilization is still some way off,” she said.

You can find the link to the original article “Toidupoes läheb ostjatele korda rohkem kauba hind kui päritolumaa” in the grocery store HERE.

Featured image: NordenBladet

Elron orders 10 new trains from Škoda to meet passenger demand

By
Helena-Reet Ennet
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NordenBladet – Estonian state-owned rail operator Elron signed a contract with the Škoda Group in December to build 10 new trains to meet the growing demand for rail transportation in the country. The number of train passengers in Estonia increased by over a million in 2022, requiring significant additions to Elron’s train fleet. The new trains will be built on the RegioPanter platform, used in the Czech Republic and Slovakia, and will be 83.18 meters long with wider boarding areas and designated spaces for bicycles, passengers with prams, and wheelchairs. The first train is expected to arrive in Estonia in Q1 2024 and will cost a total of €90.7 million, covered by the EU’s Modernization Fund. Before the new trains arrive, Elron plans to host a competition to name them.

Estonian state-owned rail operator Elron signed a contract with the Škoda Group in December to build 10 new trains to meet the growing demand for rail transportation in the country. The number of train passengers in Estonia increased by over a million in 2022, requiring significant additions to Elron’s train fleet.

“At the moment, there are 37 trains, which serve passengers, however it is clear that significant additions are needed to Elron’s train fleet in order to meet customer expectations,” said Elron project manager Viljar Luchtein, ERR mediates.

The new trains will be built on the RegioPanter platform, used in the Czech Republic and Slovakia, and will be 83.18 meters long with wider boarding areas and designated spaces for bicycles, passengers with prams, and wheelchairs.

“Preparations for the production of the train’s bulk structure began in December, which means that welding work is now at the initial phase and, in a few weeks, the train will be ready for assembly,” said Luhthein.

The first train is expected to arrive in Estonia in Q1 2024 and will cost a total of €90.7 million, covered by the EU’s Modernization Fund.

“According to the agreed schedule, the first Škoda train is set to arrive in Estonia in the first quarter of 2024, after which it will need to be properly set up for use and undergo a period of testing. It is therefore expected to be fully operational from December 2024,” the text stated.

Before the new trains arrive, Elron plans to host a competition to name them. “Anyone interested can participate to ensure that the new trains get the most fitting names,” said the text.

Featured image: Pexels

Swedbank’s Former CEO Birgitte Bonnesen cleared of all charges in money laundering Scandal

By
Helena-Reet Ennet
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NordenBladet – Birgitte Bonnesen, the former CEO of Swedbank, has been acquitted of all charges in a case stemming from a money laundering scandal involving the bank’s Baltic operations. The Stockholm District Court found her not guilty of aggravated fraud, serious market manipulation, and unlawful disclosure of insider information. The accusations related to $40 billion in suspect funds handled by the bank between 2007 and 2019, which ultimately led to Bonnesen’s dismissal from her position.

A Swedish court has cleared the former CEO of Swedbank, Birgitte Bonnesen, of all charges in a case related to a money laundering scandal involving the bank’s Baltic operations. The Stockholm District Court found her not guilty of aggravated fraud, serious market manipulation, and unlawful disclosure of insider information.

The accusations related to $40 billion in suspect funds handled by the bank between 2007 and 2019, which ultimately led to Bonnesen’s dismissal from her position as CEO. The prosecutor had sought a minimum sentence of two years in prison for Bonnesen.

The case against Bonnesen also included accusations of publishing misleading information about money laundering in the Estonian branch of Swedbank. The prosecution claimed that Bonnesen spread misleading information about Swedbank’s anti-money laundering measures in the bank’s Estonian branch during the period from autumn 2018 to February 2019. This was after the Danske Bank audit, in which extensive suspicions of money laundering in the Estonian branch of Danske Bank were brought up.

Bonnesen was also suspected of fraud and illegal securities trading, but the court acquitted her of all charges. Bonnesen pleaded not guilty throughout the trial. This was the first time in decades that a former chief executive of a major Swedish bank had been prosecuted.

The acquittal of Bonnesen in the case is a significant development in the ongoing scandal surrounding money laundering at Swedbank’s Baltic operations.

Photo: Swedbank’s Former CEO Birgitte Bonnesen

Sweden’s Stance on Freedom of Speech: Burning of religious texts (including the Koran) cannot be banned by the government

By
Helena-Reet Ennet
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NordenBladet – Sweden is a country that values freedom of speech as one of its fundamental principles. This is why Stockholm cannot ban the burning of the Koran, even though state leaders personally disapprove of it, as stated by Swedish Prime Minister Ulf Kristersson. This article will explore the burning of the Koran in Stockholm and the stance of the Swedish government on the matter.

Listen to the conversation on this topic also on SverigesRadio.se:

Recently, Rasmus Paludan, a far-right Danish-Swedish politician, burned the Koran during a demonstration held at the Turkish embassy in Stockholm. The act of burning the Koran is considered disrespectful and unacceptable by many, but the Swedish government is unable to ban it due to the principle of freedom of speech.

Swedish Prime Minister Ulf Kristersson stated that “we have complete freedom of speech in Sweden, which also applies to the burning of holy books. Everything that is permitted by law, in my opinion, is not respectable and appropriate.” He also expressed that he shared this view with the US State Department, the Secretary General of NATO, and the Finnish government.

Kristersson emphasized that while the burning of the Koran may be considered disrespectful, it is still a legal act in Sweden. He also stated that it is important for society to respect each other’s beliefs and opinions, even if they may not agree with them. He also added that it is legitimate to be against Sweden’s NATO ambitions and to be critical of those who are currently doing everything possible to sabotage the joint NATO talks between Sweden and Finland. He also said that his position is exactly the same as Finland, the US and NATO.

In conclusion, the burning of the Koran in Stockholm, although considered disrespectful and unacceptable by many, is a legal act in Sweden due to the principle of freedom of speech. The Swedish government, represented by Prime Minister Ulf Kristersson, has stated that it shares this view with other countries and organizations such as the US State Department, the Secretary General of NATO, and the Finnish government. Despite this, the government also emphasizes the importance of respecting each other’s beliefs and opinions.

Photo: In Sweden, freedom of speech is a fundamental principle. This is the position of the Swedish government, as stated by Prime Minister Ulf Kristersson. The government encourages respect for different beliefs and opinions. (NordenBladet)

Finland issues new defense export permit to Turkey despite criticism from the Left Alliance

By
Helena-Reet Ennet
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NordenBladet – Finland has granted a new defense equipment export permit to Turkey, despite criticism from the Left Alliance. On Tuesday, Minister of Defense Mikko Savola approved an export permit for protective steel used to protect vehicles to Turkey. Riikka Pitkänen, a negotiating official from the Ministry of Defense, confirmed the decision and stated that it did not require a decision from the general session of the government.

Turkey has been requesting that Finland lift restrictions on the export of defense equipment to the country. Turkey and Hungary are the only NATO countries that have not yet accepted Finland’s and Sweden’s NATO membership. Defense Minister Mikko Savola defended the decision, stating that it was made with the foreign and security policy assessment of the Ministry of Foreign Affairs, which was positive. Savola also stated that “Turkey is Finland’s future ally” and that this fact was taken into account in the overall assessment. It was first reported by Hufvudstadsbladet and then commented by Savola to Helsingin Sanomat.

This is not the first defense export permit granted to Turkey by Finland. In May 2022, Finland granted a permit for the technology and drawings of Patria’s armored wheeled vehicles. Additionally, a license for the export of target aircraft transmission platforms was granted to the Robonic company in September 2019.

However, the decision has been met with criticism from Li Andersson, Chairman of the Left Alliance and Minister of Education. Andersson stated on Twitter that the Left Alliance does not support the export of defense material to countries that are at war or that violate human rights. He also stated that in their opinion, Finland should not have granted an export permit for protection steel to Turkey.

Featured image: Mikko Savola (NordenBladet)

POLL reveals Russians perceive Baltic countries as a threat

By
Helena-Reet Ennet
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NordenBladet – A recent poll conducted by the Levada Center in Moscow and commissioned by the Estonian Ministry of Foreign Affairs (MFA) has revealed that residents of Russia consider their relations with Estonia, Latvia, and Lithuania to be strained, and view the Baltic countries as hostile and a threat to Russia. The poll, which surveyed 1,600 people and included focus group interviews in five cities, found that on a scale of 1-16, with 1 being the most positive and 16 being the most negative, respondents gave the Baltics a score of 4-8 in terms of the level of threat they pose to Russia.

The poll (here: levada.ru) also found that the general attitude towards Estonia has not changed much, but residents of Russia have become more critical of the Estonian government. Respondents in the focus group interviews were critical of the Baltic countries for joining NATO, suggesting that they have surrendered their independence in doing so, and that Estonians hate Russia and are rewriting World War II history and removing monuments.

In terms of relations with other western neighbors, respondents were the most positive about Belarus, scoring it 1-2 on the scale, with Finland and Norway receiving scores of 7-8. Relations with Ukraine received the maximum negative score of 16 from most respondents.

Additionally, the poll found that support for the war in Ukraine has fallen slightly, with 81% of respondents supporting the Russian invasion in March, falling to 75% in June, and 71% in December.

The presentation of the survey results was organized by the Estonian Ministry of Foreign Affairs on Tuesday.

Featured image: Russia, Moscow (Pexels)

 

Finland: Captain of Baltic Princess suspected of neglect in student’s disappearance

By
Helena-Reet Ennet
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NordenBladet – The preliminary investigation into the disappearance of a Finnish man in his twenties from the Baltic Princess cruise ship in November has been completed, and the ship’s captain is now suspected of neglecting good seamanship and rescue operations. The incident occurred during a PeIsKä cruise organized by Turku University economics students, and the man was last seen on top of the night club structures on the ship.

The Baltic Princess, operated by the shipping company, was on a PeIsKä cruise organized by Turku University economics students when a Finnish man in his twenties disappeared from the ship in November. The shipping company was notified of the man’s disappearance at three o’clock in the morning by an informant who had last seen the man on top of the night club structures.

According to the shipping company, after the announcement, the ship began to examine surveillance camera recordings and search for the man inside the ship. However, the Coast Guard was not alerted until four hours later, after seven in the morning.

According to the Coast Guard of Western Finland, the man had climbed onto the railings on the outer roof of the ship’s night club and fell into the sea almost immediately. Neither the ship’s master nor the ship’s staff had a definite observation about the man falling into the sea.

Because of this, alerting the authorities was delayed, leading to the suspicion that the ship’s captain neglected good seamanship and rescue operations. The matter has now been transferred to the prosecutor’s district of Åland for prosecution consideration.

Additional information:
* MS Baltic Princess is a cruiseliner owned by the Estonia-based ferry operator Tallink and operated under their Silja Line brand. She was built by Aker Finnyards Helsinki New Shipyard in Helsinki, Finland in 2008. The ship began service on the cruise route between Helsinki, Finland to Tallinn, Estonia on 17 August 2008. From 1 February 2013 the ship began service on the Turku–Mariehamn–Stockholm route. It features a variety of amenities, including restaurants, bars, a spa, and a variety of entertainment options.

Featured image: Silja Line terminal (NordenBladet)

Toivo Sukari’s second heart procedure within a week: A Businessman’s struggle with Coronary Artery Disease

By
Helena-Reet Ennet
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NordenBladet – Finnish businessman Toivo Sukari, the founder and largest shareholder of Maskun Kalustetalo and Ideapark, recently opened up about his health struggles after a heart operation. Sukari, who is 68 years old and also owns the shopping mall chain stores Masku Koti and Sukarin Lomarakennus, was diagnosed with sepelvaltimotauti (coronary artery disease) last December during a routine health checkup.

Businessman Toivo Sukari, 68, recently opened up to Helsingin Sanomat about his health struggles after a heart operation. Sukari had a heart procedure called pallolaajennus (balloon angioplasty) on January 11th, which went well and he was able to return home to recover the same evening. However, just two days later, Sukari felt well enough to go for an eight-kilometer walk. Despite feeling good after the walk, the next morning he woke up feeling dizzy and with high blood pressure. He took a couple of sprays of nitroglycerin and soon lost consciousness. His wife Nadja Eerola called an ambulance and he was rushed to the hospital.

“My values changed instantly. My businesses vanished into the horizon as soon as I realized this was serious,” Sukari said.

A week later, on Monday, Sukari had to undergo a second pallolaajennus. “As far as I understand, it’s quite exceptional for someone to have two balloon angioplasties within a week,” he said.

Sukari has sepelvaltimotauti, which was diagnosed during a routine checkup in December. According to Helsingin Sanomat, the disease did not show any symptoms. Sukari requested to have an angiogram to check his coronary arteries.

However, Sukari’s struggles did not end with the second pallolaajennus. He experienced pain and discoloration in his hand, which was a side effect of the operation. He also received counseling while in the hospital.

“But I have someone at home with whom I can talk,” Sukari said. He also reflects on what could have happened if the disease had not been detected in December. “Would I have died on a walking trail? Or would I have lived happily thinking I was healthy and fit? Did I bring this on myself?”

Sukari, who comes from a Laestadian family and has seven siblings, is the founder and largest shareholder of Maskun Kalustetalo and Ideapark, as well as the owner of the shopping mall chain stores Masku Koti and Sukarin Lomarakennus.

Featured image: Toivo Sukari (NordenBladet)

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More info about balloon angioplasty:
Angioplasty is a procedure to open narrowed or blocked arteries caused by deposits of plaque. If the blockage is not major, the problem may be corrected by inflating the balloon several times to compact the plaque against the arterial wall, widening the passage for the blood to flow through. Typically, a device called a stent is placed within the coronary artery to keep the vessel open.

Estonia will not close Russian Embassy in Tallinn

By
Helena-Reet Ennet
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NordenBladet – Foreign Minister Urmas Reinsalu of Estonia has stated that the country has no plans to close the Russian Embassy in Tallinn. This statement comes in response to Russia’s announcement earlier this week that it would be expelling Estonia’s ambassador. Reinsalu emphasized that having diplomatic representation in Russia is rational for the protection of Estonian citizens and consular interests.

Estonia’s Foreign Minister Urmas Reinsalu has clarified that the country has no intention of closing the Russian Embassy in Tallinn. Russia has also made no announcements of doing so. Appearing on a politics show “Esimene stuudio” , Reinsalu stated “Our embassy [in Moscow] will remain in place. We have not set as an intention closing down the Russian embassy on the territory of the Republic of Estonia, while Russia has not announced such an intention either.”

Reinsalu further explained that Estonia’s response to diplomatic measures is based on the principle of parity and that Russia must take that into account. This means that as of now, there is no intention to expel or recall all diplomats on the part of either state. Reinsalu also noted that maintaining diplomatic ties with Russia is not irrational and that the reduction in the diplomatic corps does not mean a reduction in the information flows Estonia will have access to regarding its eastern neighbor.

Reinsalu also highlighted that the countries share a common body of water and border each other, making communication on some level “inevitable”. He also clarified that Estonia’s position on Russian aggression in Ukraine has not changed.

Establishing diplomatic parity with Russia is set to be completed next month and has been a topic of discussion for a long period of time at the Ministry of Foreign Affairs, given the number of times Estonia has had to expel Russian diplomats from its soil due to inappropriate activity. Latvia is also reported to be following suit in establishing diplomatic parity.

Photo: Urmas Reinsalu (Riigikogu fotoarhiiv/Erik Peinar)

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