Address by Foreign Minister Urmas Paet to the Joint Session of the Baltic Assembly and the Nordic Council
Pärnu, Estonia
28 April 2005
Future Co-operation Trends of the Baltic and Nordic Countries
Honoured President,
Excellencies,
Ladies and Gentlemen!
Co-operation between the Baltic and Nordic countries has deepened during the period following the restoration of Estonian, Latvian and Lithuanian independence. On Sunday, a year will have passed since the accession of Estonia, Latvia and Lithuania to the European Union, and I can note with satisfaction that within this period co-operation between the Baltic and Nordic countries has intensified even more. This is attested to by the diversification of the spheres of co-operation and the steadily growing number of joint projects. The Baltic Sea region is an area with one of the fastest growing economies in the European Union, and co-operation between the Baltic and Nordic countries offers good opportunities for even better exploitation of this region’s potential.
Understandably, the different histories of our societies, particularly during the second half of the 20th century, set limits on the possible coinciding of national interests and the opportunities for co-operation. The prevailing major differences in the levels of economic development of the Baltic and the Nordic countries is the reason why we have to approach the planning of co-operation and the prospects for mutual rapprochement realistically. It is obviously not rational to plan measures and activities, which are economically and socially not feasible for the Baltic States at present, into this co-operation.
Despite the apparent differences in the levels of development and the standard of living, we must not underestimate the importance of geographical closeness as well as the common political and cultural traits of the Baltic and Nordic countries. These undoubtedly form the basis for numerous common interests and the obvious need for co-operation.
The intertwining of the economies of the Baltic and Nordic countries is continuing at a fast pace, which is making regional co-operation natural and inevitable. Vivid examples of economic integration between the Baltic and Nordic countries are growing trade and mutual investment. For example, over 58% of Estonia’s exports and almost a half of its import trade takes place with the Nordic and Baltic countries. Three quarters of the foreign investments made in Estonia come from these states and more than three quarters of Estonia’s own investments are directed towards the same states. Another essential indicator of Baltic and Nordic economic integration is the continuous founding of companies with a domestic market spanning the 5+3 area. The development of competitive regional companies is certainly in the interest of all the countries in the region.
I find, that the so-called NB8 is a suitable format for the promotion of Baltic and Nordic co-operation. At the same time, it is clear that we can talk about the NB8 only when all eight states are actually interested in joint co-operation. This co-operation must, first of all, be pragmatic and flexible, not strictly formalised. Over-institutionalised permanent structures are, considering the dynamism of today’s world, awkward and not easily adaptable, whereas flexible and networked organisations are remarkably more efficient. Over-formalisation would not take into consideration the differences between the various Nordic interests, nor the various trends that exist in the relations between Estonia, Latvia and Lithuania. In this situation, it is welcome that the Nordic Council of Ministers, chaired by Denmark, has consistently stressed the importance of developing co-operation with Estonia, Latvia and Lithuania individually, not with the three Baltic States as an integral whole.
Thus, it is definitely in Estonia’s interests, that the three Baltic States and the five Nordic countries jointly develop the framework for NB8 co-operation, yet without strict institutionalisation. The objectives could be the promoting and establishing of co-operation in certain defined spheres – in which, all eight states are convinced of the need for co-operation and the existence of common interests. Thus, in the present phase, we should map out our interests in the various spheres and use this as a basis for developing the co-operation programme. There is no point in creating a co-operation agenda where the need, interest or opportunities are lacking.
Ladies and Gentlemen!
In many spheres our common interest is quite apparent. Primarily, this concerns the upholding and strengthening of security and stability, both regionally and globally. Proceeding from this, we must continue our joint efforts in the areas of responsibility of the Ministers of Defence and Foreign Affairs regarding the strengthening of security overall as well as supporting transatlantic co-operation. At the same time, it is of course clear, that the drawing up of an integral NB8 co-operation programme in the defence and security policy sphere is complicated, since the various states involved do not have the same status in NATO and the European Union.
In addition to security and defence policy related co-operation, important spheres where co-operation should definitely be intensified include environmental protection and sustainable development; education and research policy; development of the economy, particularly information technology; as well as transportation and energy. Keeping in mind the tragic South-Eastern Asia tsunami catastrophe of last December, it would certainly be useful to promote co-operation in dealing with the consequences of natural catastrophes occurring far from the Baltic Sea region, in dispatching rescue squads, in aiding those stranded in disaster areas and helping them return home.
All these issues should be dealt with at the meetings of the NB8 Ministers of the respective fields after receiving directives from the NB8 Prime Ministers. In this regard, the next NB8 Prime Ministers meeting could discuss whether and which groups of Ministers should be given the task of compiling such programmes.
Estonia’s Government institutions have exhibited concrete interest in continued and intensified co-operation in spheres such as the environmental protection of the Baltic Sea, maritime affairs (shipping, harbours), maritime rescue, aviation, highway transport, education (creation of a common educational space), youth and children’s affairs, food safety, border management, migration and regional administration. Taking into account the importance of the rational and purposeful use of the biological resources of the Baltic Sea, we consider it essential that the NB8 states also co-operate in the sphere of commercial fishing and particularly within the framework of the Nordic Marine Academy.
Considering what a positive experience the Baltic States’ membership in the Nordic Investment Bank has been, it would be advisable to find opportunities for taking other such steps, which would lead to the three Baltic States joining or acquiring associated member status in joint endeavours that have encompassed only the five Nordic countries. Possible projects include the Nordic Gene Bank and the Nordic Joint Committee for Agricultural Research towards which a concrete interest has been shown in Estonia. There is also interest in developing a partnership with the Nordic regional planning organisation NORDregio and the Nordic Innovation Centre (NIC).
Interest in regional co-operation in general, as well as the diversity of interests in the Baltic Sea region, is confirmed by the existence of several mutually complementing parliamentary co-operation mechanisms. In addition, a proposal was made recently to establish a Baltic Sea Parliamentary Assembly with the objective of developing co-operation between the parliamentary institutions of the Baltic Sea region and promoting the discussion of the main regional topics. When initiating new forms of co-operation, it is first necessary to thoroughly analyse how they would create real added value compared to what already exists. Estonia supports better co-operation between regional parliamentary bodies, but we are of the opinion that in the process of developing or modernising regional parliamentary bodies, it is also necessary to preserve the direct representation of every state’s parliament. Indirect representation via another co-operative organ would lead to the creation of a hierarchy in which the principles of parliamentary co-operation would disappear.
It is clear, that in addition to working together within the framework of regional co-operative institutions, it is also in the interest of all of us to maintain consultations and the defending of our common positions in international organisations. From here arises the need to continue close intergovernmental co-operation in matters connected with the European Union, on both the 3+3 as well as the 5+3 level.
To conclude, I would like to stress that Estonia, as the Chair of the Baltic Council of Ministers, is convinced of the need to continue the development of co-operation between the Governments of the Baltic States and the Nordic countries and as the Chair will do its utmost to ensure that this process evolves smoothly. In time for Estonia’s chairmanship, the Baltic Council of Ministers has been given a new structure that will facilitate wider regional, particularly Nordic oriented and European integration related co-operation.
Thank you for your attention. I wish you a productive stay, good thoughts and naturally their realisation!
28 April 2005
Future Co-operation Trends of the Baltic and Nordic Countries
Honoured President,
Excellencies,
Ladies and Gentlemen!
Co-operation between the Baltic and Nordic countries has deepened during the period following the restoration of Estonian, Latvian and Lithuanian independence. On Sunday, a year will have passed since the accession of Estonia, Latvia and Lithuania to the European Union, and I can note with satisfaction that within this period co-operation between the Baltic and Nordic countries has intensified even more. This is attested to by the diversification of the spheres of co-operation and the steadily growing number of joint projects. The Baltic Sea region is an area with one of the fastest growing economies in the European Union, and co-operation between the Baltic and Nordic countries offers good opportunities for even better exploitation of this region’s potential.
Understandably, the different histories of our societies, particularly during the second half of the 20th century, set limits on the possible coinciding of national interests and the opportunities for co-operation. The prevailing major differences in the levels of economic development of the Baltic and the Nordic countries is the reason why we have to approach the planning of co-operation and the prospects for mutual rapprochement realistically. It is obviously not rational to plan measures and activities, which are economically and socially not feasible for the Baltic States at present, into this co-operation.
Despite the apparent differences in the levels of development and the standard of living, we must not underestimate the importance of geographical closeness as well as the common political and cultural traits of the Baltic and Nordic countries. These undoubtedly form the basis for numerous common interests and the obvious need for co-operation.
The intertwining of the economies of the Baltic and Nordic countries is continuing at a fast pace, which is making regional co-operation natural and inevitable. Vivid examples of economic integration between the Baltic and Nordic countries are growing trade and mutual investment. For example, over 58% of Estonia’s exports and almost a half of its import trade takes place with the Nordic and Baltic countries. Three quarters of the foreign investments made in Estonia come from these states and more than three quarters of Estonia’s own investments are directed towards the same states. Another essential indicator of Baltic and Nordic economic integration is the continuous founding of companies with a domestic market spanning the 5+3 area. The development of competitive regional companies is certainly in the interest of all the countries in the region.
I find, that the so-called NB8 is a suitable format for the promotion of Baltic and Nordic co-operation. At the same time, it is clear that we can talk about the NB8 only when all eight states are actually interested in joint co-operation. This co-operation must, first of all, be pragmatic and flexible, not strictly formalised. Over-institutionalised permanent structures are, considering the dynamism of today’s world, awkward and not easily adaptable, whereas flexible and networked organisations are remarkably more efficient. Over-formalisation would not take into consideration the differences between the various Nordic interests, nor the various trends that exist in the relations between Estonia, Latvia and Lithuania. In this situation, it is welcome that the Nordic Council of Ministers, chaired by Denmark, has consistently stressed the importance of developing co-operation with Estonia, Latvia and Lithuania individually, not with the three Baltic States as an integral whole.
Thus, it is definitely in Estonia’s interests, that the three Baltic States and the five Nordic countries jointly develop the framework for NB8 co-operation, yet without strict institutionalisation. The objectives could be the promoting and establishing of co-operation in certain defined spheres – in which, all eight states are convinced of the need for co-operation and the existence of common interests. Thus, in the present phase, we should map out our interests in the various spheres and use this as a basis for developing the co-operation programme. There is no point in creating a co-operation agenda where the need, interest or opportunities are lacking.
Ladies and Gentlemen!
In many spheres our common interest is quite apparent. Primarily, this concerns the upholding and strengthening of security and stability, both regionally and globally. Proceeding from this, we must continue our joint efforts in the areas of responsibility of the Ministers of Defence and Foreign Affairs regarding the strengthening of security overall as well as supporting transatlantic co-operation. At the same time, it is of course clear, that the drawing up of an integral NB8 co-operation programme in the defence and security policy sphere is complicated, since the various states involved do not have the same status in NATO and the European Union.
In addition to security and defence policy related co-operation, important spheres where co-operation should definitely be intensified include environmental protection and sustainable development; education and research policy; development of the economy, particularly information technology; as well as transportation and energy. Keeping in mind the tragic South-Eastern Asia tsunami catastrophe of last December, it would certainly be useful to promote co-operation in dealing with the consequences of natural catastrophes occurring far from the Baltic Sea region, in dispatching rescue squads, in aiding those stranded in disaster areas and helping them return home.
All these issues should be dealt with at the meetings of the NB8 Ministers of the respective fields after receiving directives from the NB8 Prime Ministers. In this regard, the next NB8 Prime Ministers meeting could discuss whether and which groups of Ministers should be given the task of compiling such programmes.
Estonia’s Government institutions have exhibited concrete interest in continued and intensified co-operation in spheres such as the environmental protection of the Baltic Sea, maritime affairs (shipping, harbours), maritime rescue, aviation, highway transport, education (creation of a common educational space), youth and children’s affairs, food safety, border management, migration and regional administration. Taking into account the importance of the rational and purposeful use of the biological resources of the Baltic Sea, we consider it essential that the NB8 states also co-operate in the sphere of commercial fishing and particularly within the framework of the Nordic Marine Academy.
Considering what a positive experience the Baltic States’ membership in the Nordic Investment Bank has been, it would be advisable to find opportunities for taking other such steps, which would lead to the three Baltic States joining or acquiring associated member status in joint endeavours that have encompassed only the five Nordic countries. Possible projects include the Nordic Gene Bank and the Nordic Joint Committee for Agricultural Research towards which a concrete interest has been shown in Estonia. There is also interest in developing a partnership with the Nordic regional planning organisation NORDregio and the Nordic Innovation Centre (NIC).
Interest in regional co-operation in general, as well as the diversity of interests in the Baltic Sea region, is confirmed by the existence of several mutually complementing parliamentary co-operation mechanisms. In addition, a proposal was made recently to establish a Baltic Sea Parliamentary Assembly with the objective of developing co-operation between the parliamentary institutions of the Baltic Sea region and promoting the discussion of the main regional topics. When initiating new forms of co-operation, it is first necessary to thoroughly analyse how they would create real added value compared to what already exists. Estonia supports better co-operation between regional parliamentary bodies, but we are of the opinion that in the process of developing or modernising regional parliamentary bodies, it is also necessary to preserve the direct representation of every state’s parliament. Indirect representation via another co-operative organ would lead to the creation of a hierarchy in which the principles of parliamentary co-operation would disappear.
It is clear, that in addition to working together within the framework of regional co-operative institutions, it is also in the interest of all of us to maintain consultations and the defending of our common positions in international organisations. From here arises the need to continue close intergovernmental co-operation in matters connected with the European Union, on both the 3+3 as well as the 5+3 level.
To conclude, I would like to stress that Estonia, as the Chair of the Baltic Council of Ministers, is convinced of the need to continue the development of co-operation between the Governments of the Baltic States and the Nordic countries and as the Chair will do its utmost to ensure that this process evolves smoothly. In time for Estonia’s chairmanship, the Baltic Council of Ministers has been given a new structure that will facilitate wider regional, particularly Nordic oriented and European integration related co-operation.
Thank you for your attention. I wish you a productive stay, good thoughts and naturally their realisation!
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