Cooperation in the Baltic Sea Region: New Roles and Challenges for all Players in Europe after the EU Enlargement

 

Excellencies, ladies and gentlemen,
 
Dear friends!
 
It is a great pleasure and honour to open this prestigious series of talks at the Nordic Embassies. I welcome this initiative taken in cooperation with the Council of Nordic Ministers under the able leadership of Secretary-General Per Uncle.
 
For me as a former Foreign Minister, it is a privilege to be able to "speak my heart" without the risk of being blamed by the press the next day!
 
You see, the good thing about being a former minister is that you can say what you want without having to face nasty questions in Parliament. The only vote of no confidence I risk facing nowadays is from my dog - when he refuses to walk with me on a rainy day.
 
So: Be warned! I am speaking only on my own behalf – without any political or diplomatic responsibilities.
 
Nordic Cooperation will always have a special place in the hearts and minds of those of us, who share languages and cultures as well as the self-tormenting love of our climate.
Through history we have indeed been fighting each other, but that belongs now to a distant past. And the creation of the Nordic Council after WW-2 has given us a solid basis for the cooperation in a lot of practical areas.
 
When the Nordic Agenda was fulfilled, most of the Nordic countries realised that our future cooperation has to develop within a broader context – the European – and it is my sincere hope, that some day we shall also see both Norway and Iceland as members of the European Union.
 
Developments after the end of the Cold War – German unification, democracy in Poland , the end of the Soviet Union , freedom to the Baltic countries – gave us new possibilities to strengthen cooperation in the Baltic Sea Region. In a distant past this was a region of affluence and growth and cultural exchange, and the vision grew that we might once again make our region a symbol of cooperation and wealth instead of instability and hostility.
 
And – being in Berlin – I would like to elaborate on that.
 
Berlin is indeed one of the most influential metropoles and key capitals of Europe .   And let me be very clear: My main message here today is that Berlin should expand its role in the dynamic new Europe that is emerging after the successful enlargement of the EU.
 
To me, Berlin is obliged to continue its role as the centre of Europe . Berlin - and thus Germany - should expand its activity and engagement in Europe and in the increasing regional cooperation represented by the Baltic Sea region. Only by doing so, will Berlin maintain its strong position.
 
Berlin represents the history of Europe .
 
The effect of a decisive foreign policy culminated in 1989 with the collapse of the Berlin Wall. Berlin became one city.
 
Today, the enlargement of the EU will give us one Europe.
 
In many ways, I felt that the visions of Adenauer, Robert Schumann, Helmut Schmidt, Genscher and Kohl were fulfilled last year when the decisions were finally taken to enlarge the EU and NATO.
 
And I sometimes wonder what would have happened, if the decision to unify Europe had been as swift and resolute as the decision to unify Germany ?
 
For 28 years the Wall had stood as the symbol of a divided Europe in a divided world, the symbol of suppression, of xenophobia, of a terror regime - that had to lock its people up lest they be tempted by another, freer life.
 
The Berlin Wall – that hideous, 28-mile-long scar through the heart of a once proud European capital, not to mention, the soul of a nation.
 
And then, suddenly, on a cold November evening, it was gone - and Germany became one within only one year. What a revolution, what a celebration and what a victory it was for the free world.
 
President Truman was right when he once said: "In periods where there is no leadership, society stands still. Progress only occurs when courageous, skilful leaders seize the opportunity to change things for the better".
 
And, to me, the enlargement of the EU represents exactly that: An outstanding opportunity to change things for the better. It is an opportunity for the European countries, regions, major cities, business community, and the academic world.
 
Some of the benefits of the enlargement of the EU are indeed flowing already making it hard not to set new goals. Not only for Europe – but also for the region we share, the Baltic Sea Region.
 
My vision remains to create a Baltic Sea Single Market, including North West Russia equal to the EU's Single Market.
 
As you all know, the EU's Single Market that we drafted in the early 80's and which will now include the new member countries, is based on the four main ‘freedoms’: Free movement of goods, services, people and capital.
 
We are on our way to a real free and open market in Europe.
With the recent referendums, the so-called New Europe has proven ready to exploit the opportunities opened up by a closer and more obliging European cooperation.
 
The candidate countries have been opening their markets and reforming and restructuring their economies in preparation for EU membership. This has led to strong economic growth and effective demand.
 
Old Europe, on the contrary, seems to drag her feet.
 
Both Sweden and Denmark have voted against joining the single European currency. Germany is troubled with recession. And France is undermining the stability pact.
 
What a shame that Old Europe has already weakened its opportunities for enjoying the golden opportunity which the enlargement represents!
 
“Old Europe” versus “New Europe” – that pun was given a new life earlier this year by the US secretary of defence Donald Rumsfeld – but let me assure you that before he did so, the theme of next months “Baltic Sea Summit” in Riga, organized by Baltic Development Forum, had already been given the headline “Old Europe meets New Europe”…
 
I think it is rather obvious that the addition of “New Europe” to the European Union of mostly countries from “Old Europe” will change some political balances on our old continent.
 
This was made clear earlier this year by the appeal by a number of New Europe political leaders to guard the transatlantic ties.
 
Let me be very direct on this:
 
I was not impressed – to put it mildly – by the way in which the issue of Iraq was made an element in the German election campaign a year ago. And what followed - in particular at the joint meeting in Paris by the two parliaments to celebrate the anniversary of the Elysee Treaty – came close to a fracture of half a century’s solid German foreign policy.
 
I have for years been an admirer of the way in which Germany has conducted its foreign and security policy. Therefore, the Franco-German way of dealing with the issue of Iraq has left me rather sad and depressed – and worried for the future of European unity.
 
I cherish the Franco-German cooperation as one of the most important developments in post-war Europe. But I will not accept is as being so sacrosanct that the rest of us shall simply adapt to what is decided between Paris and Berlin.
 
On the other hand, I remain quite convinced that Germany does not share the French conviction that Europe should be defined as a “counterweight” to the US. And neither do I.
 
The split between Europe and the US – and the internal split among European allies and partners – on the issue of Iraq made us reach the lowest point so far in European cooperation since the end of the Cold War.
 
I do not blame Germany and France alone for what happened. But the way in which the issue was dealt with - in relation to your European partners - certainly undermined all the efforts that have been invested in creating a more common foreign and security policy in Europe – and gave a new meaning to the German acronym for “ gemeinsame aussen und sicherheits politik ” – GASP!
 
I had hoped to see a change of direction at last weeks meeting here in Berlin by the leaders of Germany , France and the UK. So far, this hope has not been fulfilled.
 
I think it is necessary to underline this:
 
With the new balance in a Europe of 25+ there will be less room for a common policy which is – well, let’s call it by it’s right name – anti- American.
 
I am not advocating for a situation where Europe should follow our American partners in whatever is decided in Washington when it comes to defend us all against the new threats in the post-cold-war-world. I am simply stating the fact, that we can only get influence on our American partners if we earn their respect as well as their trust.
 
I would like to leave my grandchildren to a Europe that - together with the US - is part of a centre of powers, which are united by common interests - and common values.
 
Alone, Europe cannot play a significant role in world affairs. Together with the Americans, we can. Germany knows that. And New Europe knows that.
Let me get back to our own “near abroad”:
 
One important part of Europe after enlargement is still not fully discovered by all European capitals - although it's right here at our doorstep.
 
I am referring to the Baltic Sea region. We should all take notice of this important region. Let me remind you that by next year, within the Baltic Sea region, only Russia and Norway will be outside the EU.
 
Among the new members is Poland who has proven to be a staunch supporter of the European idea - by completing our common task to build a Transatlantic House of Freedom, open to all of Europe 's peoples, prepared to meet the global challenges of the 21st Century.
 
Furthermore, Latvia , Estonia and Lithuania , have all with convincing majorities accepted EU membership without exemptions or restrictions or opt-out’s. Latvia 's vote on Saturday turned out even more convincing than I hoped for.
 
Despite all the negative forecasts and buzz before the referendum, the Latvians pronounced a loud and clear "yes". Congratulations! And welcome back to Europe . We are proud to have the Latvians with us again.
 
To me these countries represent “the New Europe”.
 
The Finns did not have full freedom of action until the end of the Cold War. Therefore, it would be appropriate to include Finland as a part of New Europe.
Finland 's exceptional performance in the last few years ought to be an example for the rest of the region. Once Finland joined the EU, they earned respect and gained influence – and as a Dane I do not hesitate to name them as the “best” Europeans among the Nordics.
 
The enlargement of the EU is an opportunity to create a truly comprehensive European Union, to promote the cooperation with Russia , and finally to consign the Iron Curtain to history.
 
Unfortunately, a new division is emerging between an Old Europe, that has problems with making up her mind and taking hard decisions, and a New Europe, that exploits the opportunities opened up by the enlargement.
 
That is a shame - and one we need to challenge.
 
In my view, the Baltic Sea countries, including Germany , have an obligation to demonstrate readiness to:
 
· Push for reforms of markets,
· Reform of institutions - and, sometimes,
· Support unpopular economic measures.
 
We have done so in the past, we can do so in the future.
 
To build a strong Europe, we need to develop strong, democratic nation states with healthy economies and dynamic civil societies.
 
A precondition for this, however, is a global outlook and clear strategies for growth and development.
 
This can only be achieved if the framework conditions are optimal and established in coordination with other regional partners from all sectors of society in a true public-private partnership.
 
A lot of new organisations have mushroomed in our region in order to facilitate cooperation.
 
One of them is Baltic Development Forum – that is working hard to become a leading networking and agenda setting organisation. We push for partnership between the public and private sector. And we bring together the players with ideas and influence to achieve this.
 
We have excellent cooperation with governments, the Council of Baltic Sea States, Nordic Council of Ministers, Union of Baltic Cities, Baltic Metropoles, World Economic Forum, the Konrad Adenauer Stiftung, employers organisations, chambers of commerce and various other key players. The Hamburg Chamber of Commerce is actually on board as well as the city of Hamburg as two of our recent members.
 
Stockholm, St. Petersburg, Tallinn , Hamburg and many other major capitals and metropoles have already realized the potential of the Baltic Sea region and the value of cooperation across borders and sectors.
 
Business has already shown the way through pioneer work in the new markets years ago. And gradually governments, cities, universities, media and NGO’s have seen the light. Even the European Commission now looks to the Baltic Sea region in its new programmes, although the fight with the Mediterranean lobby has been intense.
 
And this is exactly the point.
 
Europe needs many strong regions which are both competing and cooperating. This is important in order for the regions to stimulate each other, intellectually as well as economically.
 
We need new Smart-regions – and the region around the Baltic Sea is indeed on track to become the Smart Region of Europe, - a frontrunner in the global competition.
 
Back in 1992, Genscher and I became founding fathers of an informal governmental structure for Baltic Sea cooperation, the Council of Baltic Sea States. Today, the CBSS is an effective coordinating body for official Baltic Sea cooperation.
 
And let me emphasize, the involvement of Russia is particularly important in that context. A deepened economic integration of Russia into the European economy, is not only in Russia 's self-interest but important for all of us.
 
However, a pre-condition for dynamic development of our societies is inspiration and indeed concrete action from a multitude of players.
 
This is why the initiative was taken in 1999 to establish a high level platform for business, politics, academia and the media in the Baltic Sea region - which today is known as "The Baltic Development Forum".
 
Within the framework of Baltic Development Forum we try to develop, implement and push a dynamic regional agenda within the European and indeed a global context.
 
Less than two weeks from now Baltic Development Forum will gather high-level decision makers from more than 15 countries for our annual summit.
 
More than 400 executives from government, business, cities, research institutions (including the Harvard Business School), and the media have signed up for the summit, which this year takes place in Riga .
 
I am very pleased that the presidents from Poland and the three Baltic countries will attend the summit as well as prime ministers, lord majors and business executives. The US as well as other major countries outside the region have also taken great interest and will send some high level representatives.
 
If you take a closer look upon the agenda at the Riga Summit you will get an idea of haw far we have already come in the work to create a common understanding of the potentials of our region:
 
· In the political part of our “Baltic Sea summit” we will discuss what implications the recent EU referendums will have on the Baltic Sea region. We need to examine what this implies for the region and how business, local administrations and national politics can adapt and make use of all these new opportunities.
· As far as the economic issue are concerned, we will examine the growth perspectives, investment opportunities, framework conditions for business, the impact of enlargement on SME’s, the new and expanded Single Market and we will also discuss how to create an action plan for the economic development of Kaliningrad.
 
Furthermore, we have each year some specific sectors which we single out for special assessment.
 
This year, we will look into:
 
· The future transport infrastructure in Northern Europe. - A Baltic Development Forum Round Table report on this key question elaborated by industrialists from the region will be presented in Riga to the EU and the European Investment Bank.
· Information and Communication technology put to the service of our citizens and how to position the region globally as a "Smart Region". This project is co-sponsored by the Nordic Industrial Fund;
· We will also look into how the public sector can save money on the health bills whilst improving its services through clever cooperation between public and private players;
· Finally, we intend to focus on Human Resource Management in the region's companies. This is an important aspect for all companies operating in a region as diverse as ours.
 
More than 80 members and partners are already supporting Baltic Development Forum's activities, including the cities of Stockholm, Copenhagen, Hamburg and Riga, the Nordic governments, around 50 private companies, the European Commission, the European Investment Bank and the Konrad Adenauer Stiftung.
 
Our member activities include Round Tables, Seminars, Networking events and, of course, our well-known annual summits. After major summits in Malmö (Sweden), St. Petersburg, Copenhagen and this year in Riga, we shall revert to the South-Western shores of the Baltic Sea for the next Summit and networking event in 2004. Germany seems an obvious choice. To be quite frank with you, I must say, that we need a more active participation from the federal level in Germany, and German business – as well as the active involvement from the city of Berlin in our work.
 
There has been a tendency in Berlin at various levels of federal and local government to look East and South - and for many good reasons.
 
I am puzzled by the limited interest which is given to the new growth area in the North-East right at your doorstep.
 
The three Länder in the North (Schleswig-Holstein , Hamburg and Mecklenburg- Vorpommern) have already seen the Baltic Sea as the gateway to Russia, Asia and the US. For that reason more than 200 major Chinese companies have now located in Hamburg and German business is gradually getting a grip abroad.
 
I cordially invite the Bundes-regierung, German business associations and not least the city of Berlin to join the work of Baltic Development Forum. We need each other in the new Europe ! It is just so obvious that we must take advantage of this opportunity.
 
Excellencies, ladies and gentlemen,
Dear friends,
 
2004 will mark the entry of a new era with ten new EU members.
 
I trust that the enlargement of the EU will help boost the economies in all of the Baltic Sea countries. I also believe that it will help integrate Russia even closer with the rest of Europe, taking the vision of a Baltic Sea Single Market one step closer to reality.
 
However, as I said early in my speech, progress only occurs when courageous, skilful leaders seize the opportunity to change things for the better.
 
As a journalist, economist and former politician, I appreciate different angles and contributions to a good story to make it even better and hit the front-page.
 
I am confident that the Baltic Sea region as part of New Europe will hit the front-page and stay there. Not only in Berlin, Warsaw, Vilnius and Helsinki. But indeed also in Brussels, Washington, Beijing and Tokyo.
 
Thank you!