Effects of Baltic EU Membership on Northern Europe

 

Prime Minister, Ministers, Excellencies, ladies and gentlemen - Dear friends.
I am honoured to be here in Riga today, speaking at this conference jointly organised by the City of Riga, Latvian Ministry of Foreign Affairs, the Swedish EU Presidency and the European Commission.
Back in early April I was in Tallinn at another important conference organised between the Estonian government and the Swedish EU Presidency - and I welcome that an EU Presidency organises these joint events with candidate countries. By doing this, the Swedish EU Presidency has created a symbol of the future. An example to follow for future EU Presidencies.
Ladies and Gentlemen, the theme of this Forum is wisely chosen in the light of the European Council in Gothenburg last week.
Talking about the effects of Baltic EU Membership on Northern Europe, I for one am more than happy, that on the eve of Latvia’s, Estonia’s and Lithuania’s ten years of independence, the European Council was able to keep the EU Enlargement on track.
It has now been made clear, that it is possible for the best prepared candidate countries to complete their negotiations before the end of 2002, allowing the countries to participate as EU members in the European Parliamentary elections in 2004. Allow me, once again, to praise the Swedish EU Presidency for its superb work.
As much as I welcome that a date has been set for the Enlargement, I take strong issue from the chain of events that came before Gothenburg. The Enlargement was at risk because of petty national interests. This was unworthy. This was unacceptable.
The time is not to create doubts regarding the most important item on the European agenda: The Enlargement. That is also why the reaction from other EU members to the Irish “No” to the Treaty of Nice had to be firm and cool. The Irish have created a problem for themselves. It must not become a problem for the EU - and certainly not for the candidate countries. Therefore the message to the Irish must be the same that was delivered to the Danes in 1992 when they rejected the Treaty of Maastricht in a referendum: There will be no re-negotiation of the Treaty of Nice. All other member states are going to continue to ratify the treaty as if nothing had happened - leaving a door open for the country that has created a problem for itself.
Now, before I go into the perspectives of the Baltic Sea Region for the years to come, please let me quote the US President, George W. Bush, who during his European visits last week, said some very important things that we should indeed take notice of in our Region.
In Sweden, the US President declared his vision for Europe. He envisioned a Europe with more countries, more free trade, and one that welcomes Russia and encourages her to make the right choices in order to become a true partner for Europe and the United States.
He also stressed that Russia ought not to fear an expanded Europe; On the contrary, Russia ought to welcome an expanded Europe on her border.
Consequently, President Bush appropriately pointed out, that it was time to move beyond suspicion and toward straight talk - beyond mutually assured destruction - and toward mutually earned respect.
I agree with President Bush. And let me emphasise again, that his comments are especially pertinent for the countries of the Baltic Sea Region.
A speedy accession of Estonia, Latvia, Lithuania and Poland to the EU and even closer integration with Russia are decisive preconditions for releasing the Baltic Sea Region’s remaining potential - which is huge!
When your country together with Estonia, Lithuania and Poland become members of the EU and consequently continue your catching-up, the annual GDP rate is expected to be 2-4 pct. higher than EU average. Consequently, Poland might almost double its GDP in the coming years, and the GDP’s of Estonia. Latvia and Lithuania might increase by 60 pct. This is a very promising scenario for the Baltic Sea Region. This will have a positive effect on us all.
One of the reasons that the Baltic Sea Region has this very promising future, is that the Region is well positioned in the global IT race. We already have a competitive advantage being one of the leading IT regions globally. This position can, however, be developed further through intensified regional co-ordination and co-operation.
Information technology is a strong catalyst for growth and efficiency and is affecting many of the social and economic characteristics of countries. Information technology offers enormous opportunities to link up the Baltic Sea Region in a completely new way. Already today, we can see how businesses and individuals benefit from modern technology. What has happened in the Baltic Sea Region in the information and telecommunication sectors in recent years is indeed spectacular and unprecedented.
Germany is metaphorically denominated as a new e-locomotive. It has already the highest rate in e-business transactions. The total value of German e-business transactions today amounts to 12 billion dollars. And according to an analysis made by the research institute, Gartner Group, Germany might, by the year 2004, be a supreme power in Europe’s e-business world with business transactions reaching more than 300 billion dollars.   
The Nordic countries today rank among the world’s leading countries in the use and manufacturing of new IT and telecommunications products. But your country as well as the other candidate countries in our Region have experienced an IT revolution and are seriously catching up with the EU countries.
Estonia, Latvia, Lithuania and Poland boasts one of the most modern telecommunication networks - and a computer literacy that is higher than what is found in most Western European countries. In Russia, there are also some very positive signs: The IT sector is developing - especially software development. Multinationals like Motorola and LG Electronics have established development centres in St. Petersburg. There is indeed something to build on.
Another promising sector of our Region is the Energy sector.
Energy has been on the top of the Baltic Sea agenda for some time. The dependence of Western Europe on imported energy from Russia means that the issues affecting the energy sector have wider European implications.
The same applies for the many environmental problems in the Baltic Sea Region. The Region contains 132 registered ‘Environmental Hotspots’: An alarming figure. The Northern Dimension Action Plan’s focus on energy and environment creates a great opportunity for countries and companies to co-operate. The newly established Northern Dimension Environmental Partnership can even act as a model for other sectors.
However, although the potential of the Region is promising, there still is a need for improvement of the Region’s business environment to achieve our goals. What we need is a coherent Region with no country lacking far behind!
And that is why the Northern Dimension Action Plan is such an important policy document.
The Northern Dimension Action Plan gives the necessary tools for achieving this goal, namely ways to co-operate in all the fields necessary for creating a Baltic Sea Common Market with fair competition, equal treatment, no discrimination and a favourable business climate with quality and predictability.
The business community is in other words looking for the same kind of dynamism that characterised the establishing of the single market of the EU.
The Swedish EU Presidency has carried the Northern Dimension Action Plan far. Willing hands make light work. But we need to go even further. And time is short.
It is my assertion, that if we could combine the Northern Dimension Action Plan with the methodology of Jacques Delors' White Book on the Single Market, then we will be able to create more than a plan, we will have created history!
This ambitious goal will be at the centre of discussions at the Third Annual Baltic Development Forum Summit in St. Petersburg from the 23rd to the 25th of September 2001.
Regional leaders from government, business and academia will for the third time make our programme truly exceptional. And I invite you all to participate in the Summit in St. Petersburg - and help create a win-win situation in the Baltic Sea Region.
Concluding my remarks, I would like to set some goals for where we should be in our Region five years from now, in the summer of 2006.
First and foremost the three Baltic countries will of course be full members of the EU together with Poland. And no significant transition period was necessary when these countries joined the EU in 2004.
In 2006 a Baltic Sea Common Market is almost on track. Following the Swedish EU Presidency in 2001, the Northern Dimension Action Plan was combined with the methodology of Jacques Delors’ White Book on the Single Market - and the Baltic Sea Common Market is now set to become a Baltic Sea Free Trade Area within the European Union – developing a very special relationship with Russia as well as other CIS-countries.
The EU enlargement will have led to a relaxed security situation, where it is only a natural thing that Estonia, Latvia and Lithuania also have joined Poland in NATO. This will be seen as an addition to the common security for everybody in the Region.
These are the challenges. This is my vision for the Baltic Sea Region in the years to come. And I am certain that it can come true. I’m looking forward to speaking here in Riga in 2006.
Thank you.