Report by Foreign Minister of Estonia Urmas Paet on the activities of the Baltic Council of Ministers in 2005
Baltic Council
Tallinn, 25 November 2005
Mr President,
Distinguished Members of the Assembly,
Excellencies,
Dear Friends,
It is an honour for me to present you an overview of the activities of the Baltic Council of Ministers in 2005. I will first give you a brief review of how the BCM has performed generally in the implementation of the priorities set up last year. Then I would like to describe the activities in the priority areas of cooperation. Colleagues from Latvia and Lithuania will give you an outlook for priorities in the coming year and more detailed information on European integration respectively.
The BCM priorities for 2005 were agreed with the view to make full use of the new structure of the intergovernmental cooperation. 2005 has been the first year of BCM functioning with a new structure under the guidance of the Prime Ministers’ Council and the coordination of the Cooperation Council. All five committees of senior officials of the BCM were tasked with clear and substantial issues within their area of cooperation to be pursued on trilateral, regional and European level.
The meeting of the Prime Ministers’ Council of the Baltic Council of Ministers in Kuressaare, in September assessed the work of the BCM in its new format and gave guidance for further cooperation.
The Prime Ministers called for closer cooperation in Schengen related matters. For this purpose they decided to establish the Task Force on Schengen issues, aiming to strengthen joint coordination and streamlining of efforts between Estonia, Latvia and Lithuania in the process of accession to the Schengen area. The Heads of Government also stressed the need for timely political decisions regarding the common electricity market. Indeed, the issues of the energy markets are crucial in the years to come. The changes in the world energy markets have a great impact also on the market power of the Baltic States. In tackling these issues permanent co-operation between the authorities of the Baltic States is vital. The Prime Ministers also discussed the prospects of building new gas pipelines in the Baltic Sea area.
In the transport sector it was concluded, that upon completion of the Via Baltica reconstruction projects the main emphasis will be put on improvement of traffic safety and road infrastructure connections with neighbouring countries. Rail Baltica, in its stage of feasibility study, should firmly stay in the focus of trilateral cooperation.
The Prime Ministers stressed the need to increase the efforts for the NATO air policing solution in the Baltic countries and the further development of NATO air policing policy.
In conclusion, the Prime Ministers’ Council was of the opinion that the reform brought a new impulse into the activities of the BCM. But the need remains to continue with the adjustment of the work of the Committees of the Senior Officials. It is also vital to arrange their smooth cooperation with the committees of the Baltic Assembly.
Ladies and Gentlemen,
Let me now speak about the achievements and challenges in the main areas of cooperation starting with defence.
Defence co-operation is probably one of the most extensive and well-structured fields of co-operation between the Baltic States. It enabled our states and defence forces to prepare for NATO membership. Today I would say that Baltic defence co-operation is even more important. Through our common projects Estonia, Latvia and Lithuania are able to contribute more to NATO’s overall defence capabilities than doing it alone. It is good to see that the development of the trademarks of the Baltic defence co-operation: BALTDEFCOL, BALTNET and BALTRON is well on track as reported by the Committee of Senior Officials on Defence.
Baltic Defence College educates officers and civil servants not only from the Baltic States, but also from other NATO and PfP states. The College has become a desirable destination as an educational facility for officers from Ukraine, countries of South-Caucasus and the Balkans. The College’s value stands in the international environment and the high quality courses, which Estonia, as the host nation of the BALTDEFCOL, is committed to maintain also in the future.
Our common naval squadron – BALTRON - has been given a new responsible task of preparing the ships and crews for a naval unit of NATO Response Force. In addition to that, the BALTRON continues mine countermeasures operations in the Baltic Sea and its other traditional tasks.
BALTNET together with air policing are understandably in the list of top priorities of the Baltic States. The recent incident with Russian fighter SU-27 in Lithuania indicated the need to improve the Baltic Air Surveillance Network. At the same time, it also unmistakably pointed out the need for a NATO permanent solution, which has to provide Estonia, Latvia and Lithuania with air policing based on common NATO standards for 24 hours a day and seven days a week. We have taken a commitment to provide the full range of host nation support for air policing mission by the end of 2006. To this end, the Baltic Ministers of Defence have decided to establish a joint control and reporting centre in Lithuania functioning at least until the end of 2008, when the decision can be reviewed.
The co-operation of the energy officials of Estonia, Latvia and Lithuania has been very intensive during 2005. The issues of the BCM work plan have proved to be extremely topical for this year and will remain so for the years to come.
The Baltic States’ energy authorities and politicians have significant energy policy issues to solve in the coming years. The integration of the Baltic States electricity networks with the Nordic electricity grids in year 2006 through the submarine cable Estlink will be a very important step in the development of electricity markets and security of electricity supplies in the Baltic region.
In parallel, it is vital to commonly create a stable framework for this electricity market.
Two major political decisions to take in the common Baltic power market are about the possibilities of electricity trading with Russia and about rebuilding of the Ignalina nuclear power plant. Decisions on these issues will largely define the investment climate for the new power plants. These decisions should be made together by all Baltic States.
In the gas sector the political co-operation should be tightened to support the integration of the Baltic gas market to the EU gas networks. I am aware that the Baltic Assembly will discuss the issue of gas pipelines at length during a session tomorrow. At this stage I would therefore limit myself only to a brief comment.
I believe that any major European-wide project deserves a thorough analysis of the needs and interests of the region it will affect. This is the spirit of European cooperation today and this has to be the basis for overall EU support to weighty proposals. The current development of the project to interconnect Russian and German gas pipelines via the Baltic Sea raises several environmental and economical concerns. However, we should not only stress various aspects of this gas pipeline. It is equally important for the Baltic States together with Poland to make alternatives like the Amber pipeline look more attractive for the investors. The clear advantage of the Amber pipeline is the potential of gas storages in the Baltics. This possibility should be more actively marketed to the project participants by the Baltic gas companies, authorities and politicians.
Now, about the transport sector.
It is obvious that there is no competitive economy without a well-developed transport system. A sound transport system is one of the preconditions for successful development of other branches of the economy. The Baltic States have been successful in developing transport sector and transport infrastructure. Transport and storage sector contributed approximately 10% to 11% of the countries’ GDP. The balance of transport services export and import has constantly been positive in the Baltic States.
It can be said that at present there are no significant outstanding problems in the transport sector between the Baltic States. The economic and political environment for transport sector has been developed rapidly and it influences transport sector performance significantly. Most often common efforts are being focused towards international transport organisations, or better positioning and cooperation in the EC legislative process. For example, the legal interoperability of two international railway systems, COTIF and OSJD, will be a major task for the Baltic States. To this end the Baltic States’ experts and authorities in transport have a very close and intensive cooperation.
Successful cooperation has to be continued between the Rail Baltica project stakeholders. The Project International Coordination Group has been established and the work on pre-feasibility studies for Rail Baltica project has started this month. The Rail Baltica project European Coordinator, Mr Pavel Telička in September met and briefed the Prime Ministers on the status of the project and its outlook for the future.
One of the main common tasks has been the Via Baltica route. Reconstruction and improvement works, mostly based on EU funds and assistance, have been continued on all the national sections of the road Via Baltica. Major work along this route will be completed on 2006.
I would like to highlight here the need for further development of Via Hanseatica corridor. For instance, the opening of new Sillamäe port facility earlier this year will considerably affect the transport volumes carried along this route.
Ladies and Gentlemen,
The environmental co-operation priorities of the BCM set for 2005 included regular exchange of information on EU matters, especially on the topics discussed at Environmental Councils; implementation of bi-and trilateral agreements, and protection of the Baltic Sea marine environment.
The main accent in environmental co-operation has remained on the protection of the Baltic Sea marine environment. Our countries co-operate successfully in the framework of HELCOM. Together with the other Baltic Sea states we have set the objective and worked for the declaration of the Baltic Sea as a particularly sensitive sea area (PSSA) and prohibition of single-hull tankers at the Baltic Sea.
It has been agreed that the exchange of experience on the next EU financial perspective and the efficient use of EU funds has to be stepped up. In order to do so a Task Force or Working Group will meet next year on the invitation of the Lithuanian colleagues.
Today we can be content with the environmental co-operation between the Baltic States. Information exchange and experts meetings are flexibly arranged upon necessity, personal networking is in place. Work on the implementation of bi- and tri-lateral agreements is on-going. Several projects have been initiated and working groups operate on implementing specific tasks under these agreements (For example drawing up joint nature management plans and a water management plan for the international Koiva river basin district).
The Committee of Senior Officials on Home Affairs has in 2005 worked on issues concerning migration, external borders, police, witness protection, terrorism and crisis management.
The most important task in the nearest future is to facilitate joining the Schengen area.
On 29 September 2005 the Prime Ministers Council established the Task-Force on Schengen issues. It has to co-ordinate cooperation on the implementation of Schengen acquis, preparation and carrying out of common Schengen Evaluation Programme. The common goal is to ensure the readiness of Estonia, Latvia and Lithuania to join Schengen area simultaneously in 2007.
One of the critical issues in joining Schengen is finding a flexible solution to extend the time-period for using the Schengen Facility beyond the initial deadline, 31 December 2006. Estonia, Latvia and Lithuania will have to join their efforts in seeking together with the EU Commission a viable solution that would not undermine the work already done in order to be prepared for the Schengen accession.
As a matter of fact, today, our Ministers of the Interior are meeting in Latvia in order to discuss preparation for the Schengen evaluation and implementation of the Schengen Facility.
In addition to discussing Schengen matters, the Ministers also will sign the protocol on co-operation in protection of witnesses and victims regarding the procedure of transfer.
To sum up with the BCM activities let me point out that the detailed Report on the activities of the Baltic Council of Ministers in 2005 has been made available to you in written, and in addition it will be presented on the webpage of the BCM Chairmanship.
Ladies and Gentlemen,
Cooperation with the Nordic countries remains to be of great value for the Baltic countries. In virtually all areas Estonia, Latvia and Lithuania develop productive cooperation with the Nordics. This tradition has to be maintained and deepened.
The possibilities for practical cooperation have widened after the Baltic countries have become co-owners of the Nordic Investment Bank. On case-by-case basis we expect other Nordic institutions to open up for participation from Latvia, Lithuania and Estonia. We have to take full advantage of this development and work closely with the Nordic Council and the Nordic Council of Ministers to find new areas of expanding our close relationship.
In conclusion, I would like to thank you for your attention. Colleagues from Lithuania and Latvia will follow up with the priorities of the Baltic Council of Ministers for 2006 and issues in the European integration. I wish you success and a productive working session.
Tallinn, 25 November 2005
Mr President,
Distinguished Members of the Assembly,
Excellencies,
Dear Friends,
It is an honour for me to present you an overview of the activities of the Baltic Council of Ministers in 2005. I will first give you a brief review of how the BCM has performed generally in the implementation of the priorities set up last year. Then I would like to describe the activities in the priority areas of cooperation. Colleagues from Latvia and Lithuania will give you an outlook for priorities in the coming year and more detailed information on European integration respectively.
The BCM priorities for 2005 were agreed with the view to make full use of the new structure of the intergovernmental cooperation. 2005 has been the first year of BCM functioning with a new structure under the guidance of the Prime Ministers’ Council and the coordination of the Cooperation Council. All five committees of senior officials of the BCM were tasked with clear and substantial issues within their area of cooperation to be pursued on trilateral, regional and European level.
The meeting of the Prime Ministers’ Council of the Baltic Council of Ministers in Kuressaare, in September assessed the work of the BCM in its new format and gave guidance for further cooperation.
The Prime Ministers called for closer cooperation in Schengen related matters. For this purpose they decided to establish the Task Force on Schengen issues, aiming to strengthen joint coordination and streamlining of efforts between Estonia, Latvia and Lithuania in the process of accession to the Schengen area. The Heads of Government also stressed the need for timely political decisions regarding the common electricity market. Indeed, the issues of the energy markets are crucial in the years to come. The changes in the world energy markets have a great impact also on the market power of the Baltic States. In tackling these issues permanent co-operation between the authorities of the Baltic States is vital. The Prime Ministers also discussed the prospects of building new gas pipelines in the Baltic Sea area.
In the transport sector it was concluded, that upon completion of the Via Baltica reconstruction projects the main emphasis will be put on improvement of traffic safety and road infrastructure connections with neighbouring countries. Rail Baltica, in its stage of feasibility study, should firmly stay in the focus of trilateral cooperation.
The Prime Ministers stressed the need to increase the efforts for the NATO air policing solution in the Baltic countries and the further development of NATO air policing policy.
In conclusion, the Prime Ministers’ Council was of the opinion that the reform brought a new impulse into the activities of the BCM. But the need remains to continue with the adjustment of the work of the Committees of the Senior Officials. It is also vital to arrange their smooth cooperation with the committees of the Baltic Assembly.
Ladies and Gentlemen,
Let me now speak about the achievements and challenges in the main areas of cooperation starting with defence.
Defence co-operation is probably one of the most extensive and well-structured fields of co-operation between the Baltic States. It enabled our states and defence forces to prepare for NATO membership. Today I would say that Baltic defence co-operation is even more important. Through our common projects Estonia, Latvia and Lithuania are able to contribute more to NATO’s overall defence capabilities than doing it alone. It is good to see that the development of the trademarks of the Baltic defence co-operation: BALTDEFCOL, BALTNET and BALTRON is well on track as reported by the Committee of Senior Officials on Defence.
Baltic Defence College educates officers and civil servants not only from the Baltic States, but also from other NATO and PfP states. The College has become a desirable destination as an educational facility for officers from Ukraine, countries of South-Caucasus and the Balkans. The College’s value stands in the international environment and the high quality courses, which Estonia, as the host nation of the BALTDEFCOL, is committed to maintain also in the future.
Our common naval squadron – BALTRON - has been given a new responsible task of preparing the ships and crews for a naval unit of NATO Response Force. In addition to that, the BALTRON continues mine countermeasures operations in the Baltic Sea and its other traditional tasks.
BALTNET together with air policing are understandably in the list of top priorities of the Baltic States. The recent incident with Russian fighter SU-27 in Lithuania indicated the need to improve the Baltic Air Surveillance Network. At the same time, it also unmistakably pointed out the need for a NATO permanent solution, which has to provide Estonia, Latvia and Lithuania with air policing based on common NATO standards for 24 hours a day and seven days a week. We have taken a commitment to provide the full range of host nation support for air policing mission by the end of 2006. To this end, the Baltic Ministers of Defence have decided to establish a joint control and reporting centre in Lithuania functioning at least until the end of 2008, when the decision can be reviewed.
The co-operation of the energy officials of Estonia, Latvia and Lithuania has been very intensive during 2005. The issues of the BCM work plan have proved to be extremely topical for this year and will remain so for the years to come.
The Baltic States’ energy authorities and politicians have significant energy policy issues to solve in the coming years. The integration of the Baltic States electricity networks with the Nordic electricity grids in year 2006 through the submarine cable Estlink will be a very important step in the development of electricity markets and security of electricity supplies in the Baltic region.
In parallel, it is vital to commonly create a stable framework for this electricity market.
Two major political decisions to take in the common Baltic power market are about the possibilities of electricity trading with Russia and about rebuilding of the Ignalina nuclear power plant. Decisions on these issues will largely define the investment climate for the new power plants. These decisions should be made together by all Baltic States.
In the gas sector the political co-operation should be tightened to support the integration of the Baltic gas market to the EU gas networks. I am aware that the Baltic Assembly will discuss the issue of gas pipelines at length during a session tomorrow. At this stage I would therefore limit myself only to a brief comment.
I believe that any major European-wide project deserves a thorough analysis of the needs and interests of the region it will affect. This is the spirit of European cooperation today and this has to be the basis for overall EU support to weighty proposals. The current development of the project to interconnect Russian and German gas pipelines via the Baltic Sea raises several environmental and economical concerns. However, we should not only stress various aspects of this gas pipeline. It is equally important for the Baltic States together with Poland to make alternatives like the Amber pipeline look more attractive for the investors. The clear advantage of the Amber pipeline is the potential of gas storages in the Baltics. This possibility should be more actively marketed to the project participants by the Baltic gas companies, authorities and politicians.
Now, about the transport sector.
It is obvious that there is no competitive economy without a well-developed transport system. A sound transport system is one of the preconditions for successful development of other branches of the economy. The Baltic States have been successful in developing transport sector and transport infrastructure. Transport and storage sector contributed approximately 10% to 11% of the countries’ GDP. The balance of transport services export and import has constantly been positive in the Baltic States.
It can be said that at present there are no significant outstanding problems in the transport sector between the Baltic States. The economic and political environment for transport sector has been developed rapidly and it influences transport sector performance significantly. Most often common efforts are being focused towards international transport organisations, or better positioning and cooperation in the EC legislative process. For example, the legal interoperability of two international railway systems, COTIF and OSJD, will be a major task for the Baltic States. To this end the Baltic States’ experts and authorities in transport have a very close and intensive cooperation.
Successful cooperation has to be continued between the Rail Baltica project stakeholders. The Project International Coordination Group has been established and the work on pre-feasibility studies for Rail Baltica project has started this month. The Rail Baltica project European Coordinator, Mr Pavel Telička in September met and briefed the Prime Ministers on the status of the project and its outlook for the future.
One of the main common tasks has been the Via Baltica route. Reconstruction and improvement works, mostly based on EU funds and assistance, have been continued on all the national sections of the road Via Baltica. Major work along this route will be completed on 2006.
I would like to highlight here the need for further development of Via Hanseatica corridor. For instance, the opening of new Sillamäe port facility earlier this year will considerably affect the transport volumes carried along this route.
Ladies and Gentlemen,
The environmental co-operation priorities of the BCM set for 2005 included regular exchange of information on EU matters, especially on the topics discussed at Environmental Councils; implementation of bi-and trilateral agreements, and protection of the Baltic Sea marine environment.
The main accent in environmental co-operation has remained on the protection of the Baltic Sea marine environment. Our countries co-operate successfully in the framework of HELCOM. Together with the other Baltic Sea states we have set the objective and worked for the declaration of the Baltic Sea as a particularly sensitive sea area (PSSA) and prohibition of single-hull tankers at the Baltic Sea.
It has been agreed that the exchange of experience on the next EU financial perspective and the efficient use of EU funds has to be stepped up. In order to do so a Task Force or Working Group will meet next year on the invitation of the Lithuanian colleagues.
Today we can be content with the environmental co-operation between the Baltic States. Information exchange and experts meetings are flexibly arranged upon necessity, personal networking is in place. Work on the implementation of bi- and tri-lateral agreements is on-going. Several projects have been initiated and working groups operate on implementing specific tasks under these agreements (For example drawing up joint nature management plans and a water management plan for the international Koiva river basin district).
The Committee of Senior Officials on Home Affairs has in 2005 worked on issues concerning migration, external borders, police, witness protection, terrorism and crisis management.
The most important task in the nearest future is to facilitate joining the Schengen area.
On 29 September 2005 the Prime Ministers Council established the Task-Force on Schengen issues. It has to co-ordinate cooperation on the implementation of Schengen acquis, preparation and carrying out of common Schengen Evaluation Programme. The common goal is to ensure the readiness of Estonia, Latvia and Lithuania to join Schengen area simultaneously in 2007.
One of the critical issues in joining Schengen is finding a flexible solution to extend the time-period for using the Schengen Facility beyond the initial deadline, 31 December 2006. Estonia, Latvia and Lithuania will have to join their efforts in seeking together with the EU Commission a viable solution that would not undermine the work already done in order to be prepared for the Schengen accession.
As a matter of fact, today, our Ministers of the Interior are meeting in Latvia in order to discuss preparation for the Schengen evaluation and implementation of the Schengen Facility.
In addition to discussing Schengen matters, the Ministers also will sign the protocol on co-operation in protection of witnesses and victims regarding the procedure of transfer.
To sum up with the BCM activities let me point out that the detailed Report on the activities of the Baltic Council of Ministers in 2005 has been made available to you in written, and in addition it will be presented on the webpage of the BCM Chairmanship.
Ladies and Gentlemen,
Cooperation with the Nordic countries remains to be of great value for the Baltic countries. In virtually all areas Estonia, Latvia and Lithuania develop productive cooperation with the Nordics. This tradition has to be maintained and deepened.
The possibilities for practical cooperation have widened after the Baltic countries have become co-owners of the Nordic Investment Bank. On case-by-case basis we expect other Nordic institutions to open up for participation from Latvia, Lithuania and Estonia. We have to take full advantage of this development and work closely with the Nordic Council and the Nordic Council of Ministers to find new areas of expanding our close relationship.
In conclusion, I would like to thank you for your attention. Colleagues from Lithuania and Latvia will follow up with the priorities of the Baltic Council of Ministers for 2006 and issues in the European integration. I wish you success and a productive working session.
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