Ladies and Gentlemen,

I have been looking forward to this state visit for a simple reason: I am not very happy with the extent of the Estonian-Greek economic relationship. The relations are cordial, but mainly because economically they are almost non-existent. Estonian imports from Greece last year were not more than 3 Mio $ and exports to Greece were less than 2.5 Mio $.

And this despite the fact that Estonia has been successful in reforming its economy as well as its political system, thereby performing one of the most successful turnarounds in Central and Eastern Europe. In most aspects, Estonia is now ready to join the EU immediately, though we see year 2003 as a more realistic time.

This is not just a walk in the clouds: in a study commissioned by the Austrian Foreign Ministry, the Austrian institute of economy (WIFO) ranked EU aspirants and other East European countries according to economic and financial indicators. Estonia finished a powerful second, ahead of such competitors as Hungary and Poland. To quote ''The Economist'', a publication respected by us all, Estonia is ''a little country that could''.

The main facts everyone should know about our reforms are:

1. Our constitution requires the Parliament to pass a balanced budget.

2. Our monetary system is based on a currency board with 8:1 peg to German Mark.

3. Estonia has one of the most liberal trade regimes in the world. Estonia has free trade agreements with the European Union, EFTA, and most of the former Soviet bloc. Last week Estonia's entry into the WTO was approved. The free market for Estonian goods encompasses 600 million consumers.

4. Estonia has a universal value added tax, and a flat rate corporate and personal income tax of 26%.

5. There are no restrictions placed on foreign ownership of business, repatriation of profits or ownership of land. Over two thirds of Estonian GDP comes from the private sector.

The European Union absorbs 64 per cent of our exports and delivers 56 per cent of our imports.

This has been rewarded by investor confidence. On February 19 Moody's Investor Services assigned a rating of A1 to Estonia's kroon bonds. In 1998, Estonia received seven billion kroons in foreign direct investment, which amounts to about 325 dollars per capita.

Recently the Baltic Sea region has emerged as one of the most dynamic areas in the world. Fortunately, the Port of Tallinn has always been at the forefront of development. Estonian ports are known for their effectiveness and their value for money. In addition to this, Estonian banks are among the most reliable in our region. Recent acquisitions of Estonian banks by Swedish banks confirm this. This unique combination has made us the favourite of many businessmen whose trade has an east-west or also north-south direction. Estonian firms are probably among the top experts of sea-land logistics interface. The business of transferring sea cargo to railways and the other way around is something we do very well. Our track record has earned us respect and customers. Our railway capacity is currently being upgraded to handle the increasing transit cargo flow.

It is obvious that it is time to give the commercial ties between Greece and Estonia a real boost. Presently, Greece ranks second to last in the list of Estonian trade partners in the European Union, ahead only of tiny Luxembourg. As one of the major trading cities of the Hanseatic League, Tallinn saw regular shiploads of Greek cargo already six hundred years ago. Business has become considerably more global since then and it would be only logical if our trade had increased with this trend. I hope this will happen now. The sea unites our two nations at the end of the twentieth century as it did in the Middle Ages. More importantly, now we are united by the common European ideal. The global communication of the end of the twentieth century gives Estonian and Greek businessmen all the means they need to turn to each other across the continent.

I expect many interesting and profitable contacts to arise from this occasion. With those words I would like to express my very sincere thanks for your interest in Estonia.

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