President of the Republic sent a letter to Prime Minister Mart Laar on Monday, June 26, in connection with the discussion of the sale of the shares of Narva Elektrijaamad Ltd on the Government's session on Tuesday. In his letter, the President emphasised that the growth of Estonia's gross domestic product during the last five years indicates that Estonia's GDP will reach the level of the well-developed EU countries within 25 years. The sale of the shares would compel Estonia to make considerable investments that would raise the price of power above the level of the Nordic countries and reduce the competitive ability of Estonian goods and hinder the economic growth even more. The Head of State considered the security policy aspect of the transaction to be the most important. The argument that the transaction would give Estonia an advantage in joining NATO and thus guarantee our national security is unfortunately unrealistic. As the President said, our national security is first and foremost guaranteed by a stable government coalition, liquidation of unemployment and labour deficit, balanced state budget, our will to defend our country and our solid principles. The latter also mean the responsibility to make our own decision on what is good and what is harmful for Estonia, and the resolve to decline this transaction in a clear and well-founded manner, without fearing the political pressure of the lobbyists of one administration or another. In long perspective, solid principles have always turned out to be the best investment in the good reputation of the state.

The President considers it necessary for the Government to have also a mandate from the Riigikogu when making their decision on the matter. On December 16, 1998, the Riigikogu decided that also the business companies founded on the basis of the State Enterprise Eesti Energia Eesti Elektrijaam and Balti Elektrijaam were to be included in the list of strategically important business ventures and therefore, the transaction is impossible without a new decision by the Riigikogu.


Press Service of the Office of the President
Kadriorg, June 27, 2000

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