Address by Estonian Foreign Minister Kristiina Ojuland at the European Institute in Bucharest

The European Union after the First of May


Dear ladies and gentlemen!

Thank you for inviting me and offering me this opportunity to talk with you, here, at the European Institute!

The year 2004 is particularly significant for both Romania and Estonia. Last week, together with five other Eastern European nations, we became full members of the North Atlantic Treaty Organisation. This means, that Romania and Estonia have become partners in the only organization capable of providing credible collective security for Europe. This historically noteworthy development is the result of our hard work and mutual commitment to shared values and responsibilities. Both countries have also been working steadily for membership in the European Union. Estonia will join on 1 May, and Romania has a clear prospect for becoming a member in 2007.

The enlargement of the European Union is not a step that has been taken just for its own sake, but a process that will bring very real benefits for everyone. This enlargement creates the surplus value of prosperity and security that a divided Europe would not be able to provide. All three previous enlargements in the history of the EU have changed the Union significantly. The enlargement in May will be particularly important, however. And not merely because of its "big bang" nature. For the countries involved, it actually means reunification. There exists no new or old Europe. There is only one Europe, that has been artificially divided for more than six decades.

It goes without saying, that the enlargement on May 1 does not conclude the reunification process. Estonia supports the further enlargement of the EU, and of course the membership of Romania and Bulgaria in the Union. The continuing enlargement process should be based upon the same principles as applied to the ten states presently acceding. We welcome the fact that, according to the regular reports adopted by the European Commission, Romania, as well as Bulgaria, made significant progress in 2003 in implementing the accession criteria. The political criteria have been fulfilled, and the countries are also moving closer to fulfilling the economic and acquis criteria. The Commission is fully committed to maintaining the momentum of the negotiations.

What are the implications of the May 1 enlargement, and what is the Estonian perspective on the future of Europe? Allow me, at this point, to focus on three important issues -- changes in the decision-making process, the economic implications of the enlargement, and the relations between the European Union and its neighbours.

Firstly, concerning the changes in the decision making process and institutional structure of the European Union. It is most welcome, that both Present and Acceding Members of the EU have been involved in the debates on the future of the Union, at the Intergovernmental Conference, on an equal footing. We find it to be of great importance, that the current Candidate Countries are also involved in this process.

In spite of the considerable progress achieved during the Italian Presidency at the Intergovernmental Conference, there are a few big issues - for example, the definition and scope of qualified majority voting (QMV) - and several smaller ones, that still need to be worked out. The results of the last European Council assured us, that the Irish Presidency is making progress in finding solutions to the still open issues in the draft Constitutional Treaty of the European Union. We find it essential, that the European Council expressed the political will to reach an agreement, by June, acceptable to all present and future Member States.

Estonia is satisfied with the broad consensus that has developed concerning some questions of great importance to us. Among these are the principle of one Commissioner per member state, and the retaining of five seats as a minimum in the European Parliament. Representation of all countries in the Commission offers a good possibility for injecting new ideas into the system. As for the voting system, we are ready to support the double majority system, provided there is parity between the Member States criterion and the population criterion.

As far as the Union’s external relations are concerned, Estonia totally shares the majority of Member States’ conviction that the EU’s international role needs to be strengthened. Estonia would agree, in principle, with increasing the Union’s defence capabilities. Combating terrorism is, and has to remain, one of the main priorities of the European Security and Defence Policy. As the recent tragic events in Madrid demonstrated, terrorism is ever more present within the borders of the European Union.

We support the EU and NATO agreement - Berlin Plus - which enables the European Union, within the framework of the so-called Petersberg Tasks, to also carry out military operations. But NATO’s role in Europe is irreplaceable. The further development of the ESDP should not weaken the transatlantic link, nor duplicate NATO. Maintaining strong cooperation between Europe and the United States is of the utmost importance for the region's security.



Dear friends!

Secondly, let me say a few words about the economic implications of the enlargement. This ongoing process means that there is also an expansion of the single market. On May 1, the population of the European Union will increase by eighty million new citizens. Romania and Bulgaria will add another thirty million. This is a significant and vital contribution to the Union's aging labour force.

Among the most important economic endeavours associated with European integration are increased efficiency and competitiveness. In order to revitalize the European economy, it is important that all member states follow the conditions prescribed for their fiscal policy in the Stability and Growth Pact. The further liberalization of markets, and the maximization of the potential of all Member States, rather than the suffocating of them with red tape, is also of particular importance.

Estonia has been in the forefront, among the Acceding Countries, in this respect. The bases for Estonia’s success have been its economic reforms, its liberal economy, and its free trade policies with other countries. According to the World Economic Forum Global Competitiveness Report, in 2003, Estonia ranked 22nd, ahead of seven EU Member States. Of the Acceding Countries, only Malta did better. In the 2004 Heritage Foundation / Wall Street Journal Index of Economic Freedom, Estonia ranks sixth. We want to take this forward-looking and reform-minded approach with us into the European Union.

Estonia’s successful experiences with economic reforms have led us to support the maintaining of unanimity in taxation. We find it essential for the conducting of an effective and competitive national economic policy. The other important issue for us is the free movement of labour. We hope, that for the eight new Member States, this will, in the near future, complement the free movement of capital, goods, and services in the European single market.

Efficiency, increased competitiveness, and sustainable economic growth are the core goals of the Lisbon Strategy. Estonian priorities coincide, to a large extent, with the measures, that the European Union, currently under the Irish Presidency, has been undertaking in order to implement the Strategy. Among these, are the creating of more employment in Europe, investment in human resources, life-long learning, and the promotion of environmentally safe technologies. In addition, to secure economic growth in Europe and increase the EU’s competitiveness, research and development (R&D), and scientific innovations should be prioritised even more. Increased attention has to be paid to the development of information and communication, as well as to the so-called frontier technologies, biotechnology in particular.


Dear ladies and gentlemen!

Let me now turn to the future relations between the enlarged Union and its neighbours. Enlargement means the redrawing of the borders of the Union. This means new neighbours and the need for a new policy. Romania and Bulgaria have a clear prospect for becoming members of the Union in 2007. But, there are countries in Europe, particularly those that lie to the east of us, which do not have such definite prospects.

Considering this, I find it particularly important to work upon the European Neighbourhood Policy. Estonia welcomes the “Wider Europe - New Neighbours” initiative. We are ready to actively develop relations with the European Union’s Eastern next-door neighbours, as well as to participate - both financially and with intellectual capital - in the cooperation projects aimed at these countries. This is significant for all of Europe.

Estonia welcomes the ongoing formulation, by the European Union, of concrete action plans based upon an individual approach towards every state. We, of course, expect similar involvement and active cooperation from the countries that these policies are aimed at. Ukraine has set a good example, expressing a clear wish for a more intensive level of partnership with the European Union.

We are ready to share our experiences with the countries involved, and to support them in their endeavours to carry out democratic and market economy reforms. We have already established a cooperative relationship with Ukraine and Georgia. Our contribution could be particularly effective in the information and communications technologies sector, where Estonia has been especially successful.

Romania, as a neighbour of both Ukraine and Moldova, has vast experience in cooperating with these countries. I hope that we can exchange our respective experiences in this sphere, and work together to find ways to help Ukraine and Moldova to become stable and prosperous democracies.

As to relations with Russia, the Brussels European Council reaffirmed the Union’s strong and genuine interest in an open, stable, and democratic Russia. The mutual relations should be developed further, on the basis of the Partnership and Cooperation Agreement and the so-called Four Common Spaces approach. It is essential, that Russia extends the Partnership and Cooperation Agreement to the ten acceding Member States, without preconditions or distinctions, by 1 May 2004. We all hope, that the question of extending the PCA will be rapidly settled, and that the obstacles to intensifying cooperation between the European Union and Russia will be removed.

Dear ladies and gentlemen!

The European Union is a constantly developing organisation, and will remain so even after May 1. It is changing internally, as well as in its relationship with other countries. We are looking forward to the day when Romania shares the same negotiating table with us as a full Member of the Union, as we already do within NATO.

The basis for the success of the European Union has been the capability of uniting very different states into a single functioning mechanism. The EU has been characterized as the "most successful union of countries in the history of mankind." Estonia supports the further development of the EU as a union of states in which the equal treatment of all Member States is assured. This has been one of the European Union’s basic principles, and must be maintained as such in the future.



Thank you for your attention!