Eesti in brief - 2010-05-05

According to the current plan on the adoption of the euro, prices in Estonia will have to be indicated in two separate currencies – in kroons and in euros – from July 1 this year, reports Aripaev. This requirement applies to all retailers. The meeting of the committee of experts on the transition to the euro convened in the Ministry of Finance on April 28. The committee’s chairwoman, Tea Varrak, said that the plan of transition to the euro specifies the general principles of the law by the same name. She said that displaying prices in two currencies during the entire year is an important tool for the population to get used to the new currency as well as to avoid an unjustified price growth. The European Commission and the European Central Bank are evaluating currently how Estonia has fulfilled the Maastricht criteria necessary to adopt the euro; they will make their reports public on May 12.

According to the municipal government, the recently renovated historic Nomme market building, which went up in smoke on April 29 in Tallinn’s Nomme borough, is to be soon reconstructed. The wooden market building, built in 1930, was re-opened to visitors in Oct. 2009, after renovation which cost 3.5 million kroons (224,300 euros). Many of Nomme’s residents say that they support the rebuilding of this market. The work will start as soon as the cost and insurance is agreed. According to Nomme district chief Rainer Vakra, the market was equipped with all required fire detection equipment and an on-site guard, who called in the fire. “The security guard reacted to the alarm and called the emergency call center,” said Vakra. The city will have to find the money even if the insurance won’t cover the full cost, he says.

The Riigikogu finance committee decided to initiate a bill that would reduce the negative effects of the Tallinn sales tax, yet this won’t prevent a pan-Estonian price increase, reports Aripaev Online, citing the committee’s chairman Taavi Roivas. The draft law that was complied in cooperation with the Employers Central Union and Retailers Association sets a transition period to updating prices. Roivas said that the administrative burden that the new tax will add to retailers reaches tens of millions of kroons. Thus, the aim of the new bill is to reduce these effects and preserve jobs in retail trade that are in danger because of the extra costs, said Roivas. Roivas said that the decision of Estonia’s largest municipality to implement the 1 percent sales tax inevitably affects consumers all over Estonia since many large chains have stores in Tallinn and elsewhere, and differentiating prices might not be possible. Tallinn intends to implement a 1 percent sales tax on retail trade this July 1.