Estonia Country Brief

Introduction

Estonia is the smallest of the three Baltic Republics covering an area of 45,227 square kilometres, about two-thirds the size of Tasmania. Situated on the north-eastern edge of the Baltic Sea, Estonia borders Latvia in the south and the Russian Federation in the east and has strong cultural and linguistic ties to Finland. The country has a population of approximately 1.3 million.

The capital of Estonia is Tallinn. Estonia celebrates its national day on 24 February each year.

Political Overview

Estonia regained its independence on 20 August 1991 following the break-up of the Soviet Union. The Fourth Constitution of the Republic of Estonia, adopted on 28 June 1992, established a democratic system based on a Presidency and a unicameral 101-seat parliament, known as The Riigikogu.

In the March 2007 parliamentary elections, the mandate of Prime Minister Andrus Ansip's centre-right Reform Party was renewed with 27.8% of the vote, the highest level of electoral support for a governing party since independence was regained in 1991. The new governing coalition consists of the Estonian Reform Party, Pro Patria and Res Publica Union and the Social Democratic Party. The coalition controls 60 seats in the 101-seat Parliament. The next election is due by March 2011.

The President of Estonia, Toomas Hendrik Ilves, was elected in an Electoral College vote on 23 September 2006. The President has mainly ceremonial powers.

Estonia successfully concluded accession talks with the EU in December 2002 and the Accession Treaty was signed in Athens on 16 April 2003. A referendum on membership took place on September 14, 2003 with 67 per cent of votes in favour of joining the European Union. Estonia entered the EU on 1 May 2004.

At the NATO summit in November 2002, Estonia, along with six other Central and Eastern European countries, was invited to join NATO. Full membership took place on 2 April 2004.

Estonia joined the Schengen group of European countries on 21 December 2007.

Economic overview

GDP growth for 2008 is forecast to be 3 per cent (down from 7.1 per cent in 2007) and inflation 9.8 per cent (up from 6.6 per cent in 2007). Rising inflation has been particularly problematic with regard to Estonia's aim to join the Eurozone. Unemployment was at 4.7% in 2007.

Bilateral relationship

Australia was one of the first countries to recognize Estonia's return to independence in August 1991 and supported the withdrawal of all Russian troops from Estonian territory in the period that followed. Australia has the fifth largest community of Estonians abroad after Sweden, the USA, Canada and Finland- with a community of approximately 10,000, including second and third generation Estonian-Australians.

Australia has signed a Working Holiday Maker arrangement with Estonia, which came into effect in May 2005.

In July 1998 Estonian Prime Minister Mart Siimann visited Australia. An Australian Parliamentary delegation, led by the former Deputy President of the Senate, Senator Sue West, visited Tallinn in October 1999 and in April the following year an Estonian Parliamentary Delegation, led by Mr Savi Toomas, MP, President of the Riigikogu (Estonian Parliament), paid a return visit to Australia. The most recent high-level visit was by the then Minister for Immigration and Multicultural Affairs, the Hon Mr Philip Ruddock, in April 2002. A parliamentary delegation from Estonia visited Australia in March 2008.

The Australian Ambassador to Estonia is accredited from Stockholm. Australia also has an Honorary Consul in Tallinn. Estonia is represented in Australia by an Honorary Consul-General based in Sydney and Honorary Consuls based in Perth and Hobart. As of November 2007, the Estonian Ambassador in Tokyo is also accredited to Australia.

Bilateral economic and trade relationship

Two-way trade between Australia and Estonia was at $25 million for 2007 with exports to Estonia totalling $16 million and imports from Estonia $9 million. Major imports include telecommunications equipment and wood. Exports include gold coin and alcoholic beverages.

Australia is actively working to develop education links and student exchange arrangements with Estonia. Australia has two arrangements with Estonia involving the Estonian Business School, Monash University and Swinburne University of Technology.