Estonia

General

The Republic of Estonia is one of the Baltic States, the others being Latvia and Lithuania. Its neighbours are Russia to the east and Latvia to the south. The Gulf of Finland separates it from the Finnish mainland to the north and the Baltic Sea from Sweden to the west.

Like its Baltic cousins, Estonia has a long history of foreign occupation but it is often suggested that the three states share little else in common than their recent independence, their proximity and a similar geographical size.

Independence from the former Soviet Union's rule was regained on August 20, 1991 and Estonia joined NATO on March 29, 2004 and the European Union on May 1, 2004, following the favourable outcome of a national referendum.

Relative to other nations of the former Soviet empire, Estonia has experienced rapid growth and a notable rise in living standards. It remains nonetheless one of the poorest members of the EU, although probably wealthier than the two other Baltic states, due largely to its proximity to Finland and to significant investment in the country's infrastructure.

Modern Estonia has a Scandinavian feel. Tallinn, the capital and largest city has impressive steel and glass architecture, and its old cobbled streets contrast with the thriving new centre. Stunning medieval buildings have been carefully restored. Significant effort has been made to preserve culture, nature and history, while embracing innovation.

The population of Estonia stands at 1,324,333 (2006 figure) with the following concentration of ethnic groups: Estonians 68%, Russians 26%, Ukrainians 2%, Belarusians 1%, Finns 1%, other 2.2%.

The Estonian currency is the kroon (EEK). This has been the currency since 1928, circulating until the Soviet invasion of 1940 when it was exchanged for rubles. The kroon was re-introduced in 1992. One kroon is divided into 100 senti.

Political status

Estonia will hold its next general elections on March 4, 2007.

It will become the world's first country to allow voting in a parliamentary election via the Internet. The system was trialled during the local elections in 2005 when just under 10,000 people voted in this way. Estimates are that up to 40,000, out of a total electorate of more than 940,000, will cast an e-vote. Voters access the electoral website and swipe their state-issued ID card through a card reader attached to their computer. They then enter their PIN and select the political candidate of their choice.

The electorate may vote during advance polls on 19-23 February and 26-28 February 2007 and during the election day.

The following parties and candidates will be represented in the election:

Legislative power lies with the Riigikogu or State Assembly, which consists of 101 seats. Members are elected to serve a term of four years.

Reform Party leader Andrus Ansip is the current prime minister, his party holding 19 seats, though his coalition partners in the Centre Party have two more seats at 21. The third coalition member is the People's Union with 12 seats.

The two main coalition parties, the centre-right Reform Party and the left-leaning Centre Party, are both riding high in the polls.

Religion

In accordance with the Constitution of the Republic of Estonia, everyone has the right to freedom of conscience, religion and thought. Membership of a church or a religious association is voluntary. There is no state church.

The predominant religion is Christianity. The 2000 census revealed only 31.8% of the population claiming any religious affiliation. Of those that do, about 180,000 are Lutheran and 170,000 Russian Orthodox.

Climate

Northern Europe is warmed by the Gulf Stream and therefore benefits from a milder climate than its northerly latitude would suggest. The coastal and inland climate differs due to the influence of the Baltic Sea.

The best time to travel to Estonia is during the months of April to September when the temperature is usually around 20 degrees Celsius and when the nights are very short. Snow is usual in winter, particularly in the south-east, and the temperatures will fall to around -5 degrees C.

The total annual rainfall is 500-700 mm, which peaks towards the end of the summer.

Economy

Since independence from the Soviet Union and accession to the EU, Estonia has successfully made the transition to a modern market economy.

In 2006, gross domestic product rose by 11.5% and Estonia continues to be one of Europe's fastest growing economies.

Its currency is pegged to the euro and it enjoys success in the electronics and telecommunications sectors, assisted by developments in Finland, Sweden, and Germany, three of its main trading partners.

Foreign investors are beginning to be concerned by the increase in labour costs and inflation, with some reportedly considering relocating production to Belarus and Ukraine, where costs are significantly lower.

Main Trade Partners in 2005

Main Exports and Imports in 2005 (as a % of total trade)

Sources: Statistical Office of Estonia

Innovation

Estonia has a much smaller population than traditional high-tech innovators such as Japan and Finland, yet in recent years the country has made a name for itself with pioneering innovation and entrepreneurship.

Despite modest economic means, Estonian banks started to offer online banking services in 1997.

It is the birthplace of internet-telephony company Skype which was sold to eBay for 2.6 billion US dollars in 2005. It has also been at the forefront in developing mobile-phone payments for services such as bus tickets and parking meters. There is widespread provision of wireless internet access in public spaces from cafes to parks.

Language

The official language of Estonia is Estonian, which is a Finno-Ugric language somewhat related to Finnish and distantly related to Hungarian.

The Latin alphabet is used. The letters of the Estonian alphabet are as follows: a b c d e f g h i j k l m n o p r s š z þ t u v w õ ä ö ü x y. Many Estonians speak English and/or Russian. Many inhabitants of Tallinn and northern Estonia speak Finnish. German, French and Swedish are also spoken.