Last updated in March 2010
Political relations
Germany resumed diplomatic relations with Estonia on 28 August 1991, eight days after it had regained its independence. Relations between Germany and Estonia have developed very well since then. Political dialogue is intensive and based on trust. Thanks to a network of contacts at national, federal state and local government level, as well as private initiatives, broad sections of society are engaged in bilateral relations.
Some of the high points in bilateral relations were the visits to Estonia by Federal President Köhler in November 2004 and June 2005, the visit by Federal Foreign Minister Steinmeier in July 2007 and by Federal Chancellor Merkel in August 2008 and the short visit by Federal Foreign Minister Westerwelle in January 2010. Furthermore, Estonia’s President Ilves – in office since October 2006 – met with Federal President Köhler and Federal Chancellor Merkel in February 2007. A further meeting between the two Presidents took place in Berlin on 23 October 2008. On 9 November 2009, President Ilves and Prime Minister Ansip took part in the celebrations marking the 20th anniversary of the fall of the Berlin Wall. On 20 January 2010, President Ilves met with Federal President Köhler in Berlin. Prime Minister Ansip met with Federal Chancellor Angela Merkel on several occasions during Germany’s EU Presidency. Foreign Minister Paet last visited Berlin in July 2008.
Regular trips to Estonia by members of the German Bundestag and high-ranking representatives of Germany’s ministerial administration underline the important position Estonia occupies in German foreign policy. In March 2010, the Estonian Parliament’s Foreign Affairs Committee was in Berlin for talks with the German Bundestag’s Foreign Affairs Committee and representatives of the Federal Government.
Together with twinned towns and districts in Germany, the federal states are doing much to foster German-Estonian relations. Representatives of the federal state governments and parliaments regularly travel to Estonia for talks.
Economic relations
After Finland and Sweden and Russia, Germany is one of Estonia’s main trading partners. In 2009, trade between Estonia and Germany was worth EUR 1.51 billion. Germany is Estonia’s third-largest import partner, after Finland and Lithuania, supplying 10 per cent of the country’s total imports (in 2009, imports from Germany were worth approximately EUR 761 million).
As a destination for Estonian exports, Germany ranks fifth, taking approximately six per cent of Estonia’s total exports (in 2009, exports to Germany were worth EUR 390 million). The principal destination for Estonian exports is Finland, which takes 18 per cent of Estonia’s total exports.
Germany has a stake in some 430 companies registered in Estonia. The German-Baltic Chamber of Commerce provides a direct liaison for German business and industry.
As of 31 December 2009, Germany accounted for 1.2 per cent (EUR 140.4 million) of all foreign direct investment in Estonia (EUR 11.3 billion). Germany thus ranks 13th among foreign direct investors in Estonia. The principal foreign direct investor is Sweden, with investments worth approximately EUR 4 billion (39.7 per cent of all foreign direct investments in Estonia). Most foreign direct investments are concentrated in the financial services, property, transport and communication sectors.
Cultural relations
Cultural cooperation between Germany and Estonia has a long tradition. Trade and business relations date back to the Hanseatic League and the influence of the Baltic German nobility continued for 700 years. The strong position of the German language up to the mid-1990s and the influence of German ways of thinking on Estonia’s intellectual history have been instrumental in preserving cultural ties between Estonians and Germans, even during the period of the Soviet occupation.
After Estonia regained its independence in 1991, cultural relations were further intensified. The main players here are the German Embassy, numerous German cultural intermediaries (such as the Alexander von Humboldt and Robert Bosch Foundations), other non-governmental organizations and their Estonian partners. Cultural cooperation focuses on promoting the German language, scientific and academic cooperation and the cultural programmes of the German Cultural Institute/Goethe Institute in Tallinn and the German Cultural Institute in Tartu.
