Riga/Tallinn - Estonian president Toomas Hendrik Ilves gave his full backing to Turkish membership of the European Union on Friday during a state visit by his Turkish counterpart, Abdullah Gul.

Speaking in the elegant surroundings of Kadriorg Palace in the Estonian capital, Tallinn, Ilves described Turkey as "a firm ally of Europe" and affirmed that Estonia continues to support Turkey's ongoing bid for full EU membership.

Riga- The long-term prospects for the economies of the three Baltic states were called into question Friday when London-based ratings agency Fitch downgraded its opinions on Estonia, Latvia and Lithuania.

Fitch revised downward its foreign and local currency Issuer Default Ratings (IDRs) and its Country Ceilings for all three countries by one notch, while its overall Outlooks remain "Negative" for each country.

Riga - Estonia's economy continues to stagnate after a decade of spectacular growth, according to official figures released Thursday.

In August 2008, industrial production decreased by 3 per cent year-on-year Statistics Estonia said.

Manufacturing production fell by 2 per cent owing to dwindling orders in domestic and external markets driven by a sharp drop in consumer demand as the effects of the global "credit crunch" make themselves felt.

One of the most telling figures was a 20 per cent reduction in beer production, while Statistics Estonia also noted that wood manufacturing, which is an important industry and major employer in Estonia "is endangered by a serious shortage of materials."

Riga/Tallinn  - Estonian President Toomas Hendrik Ilves urged his country's stateless residents to adopt full citizenship on Wednesday.

Speaking at a ceremony in Tallinn at which he handed citizenship certificates to newly-qualified citizens, Ilves said: "Your will demonstrates that you trust and need Estonia. I affirm to you that Estonia trusts and needs you."

Estonia has an estimated 100,000 residents who do not have full citizenship, out of a total population of 1.3 million. Most non- citizens are ethnic Russians.

Tallinn - Authorities in Estonia have arrested a former high-ranking official in the defence ministry and his wife under suspicion of treason, local media reported on Monday.

The prosecutor's office said Herman Simm collected classified information and passed it on to representatives from another country.

The authorities will not release any details about the case, nor will they say which country hired the alleged spy, Gerrit Maesalu, spokesman for the State Prosecutor's Office, told Postimees Online.

However, citing unofficial information, the Baltic News Service has reported that Simm worked for Russia, making him the first official suspected of treason since Estonia broke away from the Soviet Union in 1991.

Tallinn - Annual inflation in the Baltic natio