Main Guidelines of Estonia's Foreign Policy

Address by Kristiina Ojuland, Minister of Foreign Affairs, to the Riigikogu on behalf of the Government of the Republic of Estonia, 19 December 2002


Honourable Mr. Chairman,
Respected Members of the Riigikogu,
Honourable guests,

The nature of the Estonian Republic’s foreign policy is determined by our history, culture, and geographic location; by the fact that we are part of the cultural sphere, which adheres to Occidental values and an Occidental conception of the world; and by the understanding that the necessity of ensuring our national security is of primary importance among all our other domestic and foreign policy requirements. Therefore, Estonia’s endeavour to join both the North Atlantic Treaty Organization and the European Union has not been an end in itself, but rather, has been part of Estonia’s overall effort to create a political, economic, and administrative environment in which our national interests can be developed on the basis of a new set of dynamics. Estonia’s belonging to the aforementioned international unions would not restrict the free space, which a nation requires for its existence, but would actually expand it, thanks to increased opportunities and security.

Let us not forget, that our Western orientation has not been brought about by fantasies of an enjoyable life style, or by theoretical discussions concerning the philosophy of values. Although the sharing of common values is an inevitable prerequisite for integration with the West, this integration is nevertheless brought about by concrete political and economic conceptions of the nation’s will to persevere, by the realities of the globalising economic environment, by the challenges accompanying new developments in the national security sphere, by the necessity for reducing dangers and risks.

But, by saying all this, I do not, in any way, wish to place in doubt the common values, which have served as a signpost in our quest to find allies, and in the process of making correct choices. The maintaining of these common values in the daily political agenda, and the constant vigilance that must be maintained so that this pair of words will not be forgotten, or that their meaning will not become diluted, is primarily the duty of small nations, and is the future forming political challenge which we have been confronted with in today’s world

This address, by the Estonian Government to the Riigikogu, concerning our foreign policy, is being made just when we have reached the most significant point in our foreign policy development process, after the departure of foreign troops eight years ago. The consistent reforms of the last decade, the consistency and predictability of both our domestic and foreign policy, and our ability to cope with difficult negotiations have taken us to the point where, in the year 2002, Estonia has been invited to join NATO, and negotiations have been concluded with the European Union. Although the invitation to join NATO does not yet mean that we are members, and although we still have a great deal to do in the European Union accession process, the recent Prague and Copenhagen summits clearly confirm that Estonia is part of the Western world.

Please permit me to use this opportunity to express my recognition and appreciation of the Riigikogu of the Republic of Estonia, both the present body, and those of the last decade. Your activity, specifically, has created an image of Estonia as a parliamentary state with a predictable, and therefore, dependable and sincere foreign policy. The concept that a country’s image does not necessarily depend upon its geographical size, or the size of its population; but rather, upon the stability of its economy, upon the innovativeness of its reforms, upon its ability to co-operate with others and upon its ability to formulate a responsible foreign policy -- has given you, as the true governing body of our nation, an opportunity to develop our national interests in a very praiseworthy manner. The Riigikogu’s consistent policy concerning both NATO and the European Union is an excellent example of the national accord, which can overcome party politics and concentrate our limited resources upon the achieving of goals that benefit the further development of the whole nation. Let us, for instance, recall the summer of 1995, when, at an extraordinary session of the Riigikogu, 100% of the Members approved the association agreement with the European Union. Let us recall those parliamentary debates and decisions, inspired by a sense of political responsibility, which established the basis for our national security policy, and which confirmed our commitment to the North Atlantic Alliance. Considering the fact that joining both NATO and the European Union are the basic concepts upon which our present and future foreign policy are established, permit me to devote the rest of this address to these two essential factors.


I

In the year 2002, the most important event concerning the development of Estonia’s national security, took place in November, when, at the NATO Prague summit, we were invited to begin accession negotiations. Much of our activities, before and after this event, in the national security sphere, have been connected with the continuous adaptation of Estonia’s defence forces and governmental structures to the requirements and obligations, which come along with NATO membership.

In connection with this process, it is worth keeping in mind that the building up of our defence forces, just like the improving of the efficiency of our various governmental agencies, is essential and beneficial for Estonia. We would have to build up our defence forces at any rate, but the NATO context provides an efficient organisational framework, plus we can make use of the alliance’s know-how and the direct aid of many member states. By the year 2002, we increased our defence expenditures to 2% of our gross national product, and considering the high quality of the security, which we are able to obtain as potential NATO members, this must be seen as a very profitable investment. The maintaining of our defence expenditures, in the future, at this 2% level, is a concrete confirmation of our readiness to become a serious partner, and as a security producer, not just as a security consumer.

It will still take some time for us to become full NATO members. If no serious obstacles arise, during our accession ratification process, in the present member states, this will take place in the year 2004. For Estonia, membership in the North Atlantic Alliance is more than mere participation in a collective defence and security structure -- NATO membership, along with membership in the European Union, will symbolize the anchoring of Estonia in the Euro-Atlantic security sphere. We will be together with states, with whom we share both common values and principles, and common goals. This, in turn, will enable us to, so to speak, clear many security problems off the table, and devote more energy to the nation’s social-economic development. NATO membership will improve Estonia’s risk rating, creating a more stable and secure investment climate in the country -- especially for long term investors -- thereby having a positive effect on the country’s economic development process. Membership in transatlantic structures will also, finally, give Estonia the long desired assurance that decisions affecting us will no longer be made without our participation and without our approval. And, what is perhaps most important, membership in NATO will begin to boost Estonia’s image in the foreign policy sphere.

Estonia is joining NATO during a period of international transformation processes. Various developments are taking place within the sphere of international relations, the final results of which are, at the moment, difficult to predict. Developments are taking place in the transatlantic relations between the United States and Europe; NATO is adapting to the transformed international security environment; a new structural model is evolving, which will create a new and tighter relationship between the European Union and NATO; quickly developing relations along the axes NATO-Russia and EU-Russia. All these developments are also creating many questions for Estonia, for which we have to find our own answers.

If Estonia becomes a member of the European Union and NATO, we will be confronted with having to make a choice -- whether to limit ourselves to the role of a passive follower, or to become an active decision formulator. I believe that, on the whole, it would be beneficial for Estonia to be an active participant, since then we would be in a better position to protect and promote our interests. If we become active in the NATO and EU processes, we would have more reason to expect other members to become actively involved in matters which interest or affect us. This, primarily, means that Estonian diplomacy has to devote itself to the more active development of policy positions concerning problems to which, perhaps, relatively little attention has been paid up until now. In addition to the formulating of concrete policy positions, Estonia can make a contribution based upon our experiences with carrying out extensive reforms. This is a resource, which, so called, old democracies lack. And Estonia already has experience with the sharing of this knowledge. For instance, the future oriented joint projects for supporting Ukraine and Georgia.

Belonging to a collective decision making mechanism will require us to also adopt positions on matters which deal with situations outside Europe -- in Africa, Asia, Latin America. Prior to European Union and NATO accession, we have often been motivated, in our decision making process, by the desire not to antagonize anyone in the structures, which we hope to join. But after accession, we will be free of this concern, and will therefore be able to express our convictions much more freely. Active participation in NATO matters means that Estonia’s foreign policy will become more encompassing, thereby increasing the expertise and scope of activities involved.

If we wish that other, physically distant countries will, in times of need, help to defend us, then we will also have to participate in the solving of geographically distant crises. The events of the last year and a half have proven quite clearly that in today’s world everything is inter-connected. A crisis, which erupts in one part of the world, can influence daily life in very distant lands.

In the national security policy sphere, it primarily means that we will be participating in joint crises regulation and prevention. No one is expecting a small nation like Estonia to contribute large military units, but within the scope of collective activities, even small states can participate with small but well trained and prepared forces. Plus, Estonia, as a country, which, during the last decade, has gone through a fast reform process, would be able to pass on non-military experiences.

This all may leave the impression that we will become very involved in matters, which are of absolutely no concern to the average citizen. But actually, these matters influence everyone, even though it might not be apparent in the course of everyday life. The goal of every country’s national security policy is to create an environment in which the average person should not have to worry, from day to day, about international security matters. This does not, of course, mean that these questions are the exclusive bailiwick of a limited circle of politicians and experts. Quite the opposite. Citizens’ active participation in the creation of informed political popular opinions and a common political will is the basis for a sound democratic society, and therefore, also one of the principle upon which our national security policy is based. And belonging to international structures gives us that unseen, yet, for the nation as a whole, a very real sense of security.

The years 2003 and 2004 will be, as far as the planned development of our national security policy is concerned, of critical importance. If everything progresses positively, we have reason to hope that when we are discussing this same subject two years from now, we will be able to talk mostly about a policy based upon membership in NATO and the EU. Organisations, in the further development of which, Estonia will also be able to participate.


II

Our accession negotiations with the European Union were concluded at the recent summit in Copenhagen. We can now state with complete conviction that Estonia has achieved substantial agreements with the EU. The accession terms agreed upon in the economic and administrative spheres proved to be even better than we had hoped for. This will no doubt have a positive effect upon our continued socio-economic viability.

Since the Riigikogu will be dealing with the achieved agreements as a whole, and in further detail, within the scope of a separate debate, please allow me, at this point, to just present a brief overview of the developments which have taken place within the framework of the European agreement within the last half a year. On the basis of the European agreement, many essential decisions have been adopted, during the last half a year, which have reinforced and intensified our relations with the European Union.

- Estonia has adhered with the Union’s programs dealing with the media, private enterprise, customs and tariffs, the information society, efficient energy use, the providing of equal opportunities, and the elimination of social inequities.

- Decisions have been adopted which give Estonia, in 2003, the opportunity to participate in the sixth framework program for the development of science and technology, and also in the program dealing with unemployment, public health, and the exchange of information between various administrative agencies.

- The preparatory work necessary for adopting the agreement dealing with trade in agricultural products is in its final phase. This agreement would fully legalize the favourable trading terms, which have so far been applied on the basis of a unilateral EU act.

- Of major significance for manufacturers is the agreement concerning conformity assessment, which is to be signed at the beginning of 2003. On the basis of this document, common market regulations will be applied to various agreed upon manufactured goods, even before our accession to the EU.

- The European Economic and Social Committee and the Estonian social partners will establish a joint advisory committee on April 1. This will give the Estonian social partners an opportunity to participate in the EU accession process, and to prepare themselves for participation in the work of the European Economic and Social Committee as its eventual members.

- A joint advisory committee will be formed to promote co-operation and establish a dialogue between the Committee of the Regions and Estonia’s local administrations and agencies. The agreement dealing with the establishment of the advisory committee will be presented to a Cabinet session in January.

Another essential matter, which I would briefly like to deal with, and which, in connection with the European Union, requires that we all deal with, is the adaptability of appropriations.

The agreement achieved at the negotiations dealing with the chapter of finances and the budget, enables Estonia to receive from the EU budget, during the years 2004 – 2006, appropriations totalling nearly 11.4 billion EEKs. But this amount will not become a reality until Estonia is fully capable of executing the designated projects, is fully capable of properly utilizing the appropriations, and is fully capable of co-financing the projects with appropriations from the Estonian state budget. The Ministry of Finance will be responsible for the proper utilization of the EU appropriations. The utilization of the ISPA and SAPARD funds has thoroughly prepared Estonia for the proper administration of appropriations from the structural and cohesion funds.

After accession, Estonia will be part of target area 1, which will be receiving the most aid. To be eligible to receive and utilize aid, Estonia will have to draw up a several-year program, and establish the necessary administrative structures and procedures for properly executing the program. The program draft "The Estonian National Development Program for Utilizing EU Appropriations -- Overall Program Document 2003 – 2006" will be presented by the Ministry of Finance to the Government for approval on 21 January 2003, and to the European Commission at the end of January. All ministries concerned with this matter have drawn up the necessary programs, so as to prepare the appropriate administrative personnel for the proper utilization of the appropriations. It is of vital importance for the whole Estonian nation that all decisions, which are made in connection with these appropriations, be made very professionally. This means that all essential strategic factors be kept in mind. This will greatly affect the pace at which we will be able to continue the development of our nation. A very good role model for us is Ireland with its analogous experiences, from which, we Estonians, have a great deal to learn.

Respected Members of the Riigikogu,

Estonia is presently in the pre-accession phase. Concretely, this means that, until accession on 1 May 2004, we are going through the informing and consultation procedures. Within this framework, the European Union informs the acceding states of all new legislation, and when necessary, mutual discussions and consultations are held concerning them. And Estonia informs the European Union about any decisions it makes, which might in some way affect the commitments, which we will be assuming after accession.

Upon signing the accession treaty on 16 April 2003, the acceding states will receive active observer status within the structures of the Council of Ministers. The new members would participate with the right to express their opinion concerning the development of legislation and concerning matters which might affect them after accession.

The results of next fall’s referendum will be extremely important for us in both the domestic and foreign policy spheres. Since you are the elected representatives of the people in the legislative branch of the government, it cannot be over-stressed how great a responsibility rests upon your shoulders, in connection with this event. Without wanting to over-dramatize the situation, please permit me to, nevertheless, talk about some essential points connected with the aforementioned.

Taking into consideration the fact that a referendum is part of the democratic process, a possible “NO” vote will probably not have any immediate and inevitable effect on our economy. Especially, if the situation is looked at from the European Union’s point of view -- it is unlikely that the EU would undertake any unilateral steps which would dramatically affect the Estonian economy. The developments would probably be more dependent upon Estonia’s own post-referendum actions, or on how Estonia’s various policies coincided with the EU’s corresponding policies. If Estonia decides not to co-ordinate its policies with the EU, it could cause the EU to unilaterally re-evaluate its trade agreements with Estonia. Considering the fact that the majority of the present candidate states will probably join the EU, the significance of such a re-evaluation of trade relations is dangerous to underestimate (80% of our export sales go to the EU + the candidate states). It is obvious, that then we would also have to forego all EU pre- and post-accession financial aid.

In addition to the aforementioned, Estonia would soon run into various financial and economic difficulties. We have to keep in mind that Estonia’s economic, monetary, and other similar capabilities, plus our stability and reliability are presently being evaluated on the basis of our definite accession to the EU. A possible referendum vote of "NO" would force financial analysts to re-evaluate our "suitability". The results would probably be higher interest rates, difficulties in obtaining foreign financing and investments, and so on.

There are exactly 269 days left until the EU referendum. It’s time for all Estonian political sides to clearly state whether they will call upon the people to vote for the European Union accession, or whether they will start to agitate against accession. Sitting on the fence -- to join a little bit, and at the same time not to join a little bit -- is not an option.

Respected Members of the Riigikogu,

European unity is not an aim in itself. A European integration policy makes sense only if it is capable of achieving two goals: firstly, of influencing global policies which will determine the future; and secondly, of concretely and effectively contributing to the quality of life of every European citizen. Integration can successfully achieve both goals only if it maintains and respects the identity of every single individual -- a core value which is the basis for all culture, creativity, and motivation, and without which, true progress would be impossible. Let us not forget for a moment that every nation’s -- especially a small one’s -- survival and development is greatly dependent upon its ability to influence political, cultural, administrative, and economic indicators outside of its ethnic borders. Therefore, the European Union’s enlargement offers us both opportunities and responsibilities. The paradigm change, which Estonian society still has to deal with, is the concept of seeing integration primarily as a new opportunity. The slogan, which concisely and accurately expresses the true political challenge for today’s Estonian society should not be "identity despite integration", but rather "identity through integration".

“What kind of Europe will we get in the 21 century?” is a question, which many people are asking today. But I would like to ask you: “What kind of century do we want to create for ourselves, together with Europe?”

Discussions at the European Convention concerning the constitutional project and the future model of the Union are reaching a decisive phase. It has been in our interests to join a foolproof and effective Union, which assures equal opportunities for both big and small states. When planning to make institutional changes, it is very important to observe the principle that all member states are equal.

Estonia, and the majority of EU member and candidate states have established their governmental structure upon the traditions of parliamentary democracy. So, we can assume, that these principles will also be observed as the future institutions of the EU are being established. We support reforms, which make institutions and their co-operative endeavours more efficient, more transparent, and more democratic. At the same time, we feel that, when planning reforms, it is essential to maintain the existing institutional balance.

Estonia’s definite position is that the role of the national parliaments should increase in a reformed European Union, especially when it comes to the question of subsidiarity. This means the establishment of a procedural mechanism, which would enable a national parliament to become much more involved in the EU’s legislative procedures, and to do so already during the early phases of this creative process. This is the only way that the European Union can be drawn closer to the domestic politics and the citizenry of the individual member states. The national parliament must become the instrument for establishing an efficient connection between the individual citizen and the European Union.

We also believe, that even after EU accession, we should maintain the favourable economic environment, which has been dominant in Estonia till now. The achievements of our effective reform policies of the last ten years must in no way be diluted. In the European Convention, Estonia has insisted that in the taxation sphere, the EU’s authority should remain the same as was stipulated in the Community’s founding treaty. For instance, since Estonia’s policy of not taxing corporate profits, which are re-invested, has in every sense justified itself, I believe that taxation should remain within the direct authority of the member states. This position is not based upon an egoistic desire to promote local power, but upon a conviction that differing taxation systems will promote healthy competition between the member states. This, in turn, will increase the whole EU’s competitiveness in the context of the world economy.

We find that the constitutional treaty draft, which was presented on 28 October 2002, is a good basis for formulating the new model. In the draft there are several positive reforms, which are worth supporting. For instance, the draft attempts to simplify the EU’s treaty structure -- several existing treaties would be replaced by one well structured and all encompassing treaty, and the Union’s multi-pillar system would be eliminated. The EU would be given the status of a corporate body; for the first time, the right to leave the EU would be established; and it would be stipulated that the sessions of the Council of Ministers are to be public.

At the same time, some ideas which were proposed, like the establishment of a European nationalities congress, or the changing of the European Union’s name, were a bit forced, or did not seem to be justified. It is also difficult to agree with proposals like the stipulating of "federal principles", dual citizenship, or the establishment of a presidency for the European Council.

The discussions concerning these matters are still going on. When the results of the European Convention’s endeavours are assessed, the future member states must also be included with full participatory rights.

Respected Members of the Riigikogu,

Estonia’s accession to the European Union still lies ahead, and is dependent upon the opinions of the present member states, as well as the upcoming referendum. But it would nevertheless be useful to already contemplate the opportunities and obligations, which would accompany accession.

I wish you all the best in our common effort to maintain a responsible and progressive foreign policy!