Ladies and gentlemen,

Since I have been the patron of Invest in Estonia awards for years, it is with great distress that I must announce that it is not possible for me to be present on this auspicious occasion. I want to assure you that all the way until 6 October 2001 I will be closely following issues related to investment in Estonia.

As this year's winners are about to be announced, I would like to express a few thoughts which are foremost in my mind as the issues of Estonian economy are discussed. I am not afraid to say that we have been rather successful, in 1998 even more than ever before, in attracting foreign direct investment. Estonia was the very first country in Central and Eastern Europe to receive a foreign direct investment after the Russian crisis. In this respect we are like a bellwether of investment climate. Certainly all of your know well Estonia's advantages, such as the strategic position in the fastest developing region in Europe and our remarkable working morale.

I am proud that we have used no tools of competition, which may be regarded as unfair. We have so far avoided giving businesses huge one-off gifts of land and money in exchange for creating jobs. I hope we will avoid this in the future. Estonia has one of the lowest corporate tax rates in the world and with abolition of corporate income tax on investments this rate will be even lower. And the simple beauty of our tax system is that it is the same for everyone. I want our competitive edge to be fairness, transparency and a good infrastructure.

It is perfectly clear that just to maintain the status quo will not be enough to repeat or improve last year's record-breaking performance. I am aware that there is room for improvement.

It is not just the money Estonia welcomes. There is at least an equal need for know-how, for world-class managerial practices, for people with international outlook and world-wide business connections. If we fail to make Estonia an attractive place to live, our ports, fibre-optic cables and telecommunications will be of limited use.

As a private person and as a head of state I find the treatment of the families of expatriate managers, sometimes of the managers themselves, by our immigration officers humiliating. I also know that foreign businessmen have encountered difficulties in securing secondary education for their children. I regard supportive infrastructure as a factor of great importance in attracting the best and the brightest.

As a closing remark I want say that I appreciate the audacity and good business sense that brought substantial amounts of cash into Estonian economy last year. I appreciate even more the entrepreneurial spirit, which has created jobs in the outlying regions - not that any region in Estonia is truly outlying. But most of all I appreciate the people who have put their hearts into their business here and into our country.

Thank you, ladies and gentlemen.


Lennart Meri

back | archive of speeches | main page