Address by Estonian Minister of Foreign Affairs Urmas Paet in Moldova State University

“Europe – a road ahead”

Address by Estonian Minister of Foreign Affairs Urmas Paet
Moldova State University, 27 October 2006


Ladies and gentlemen,

Last summer, when I opened a conference here in Chişinǎu, I noted that the eastward spread of the European values and the principles of the rule of law is not limited to the Central and Eastern European countries that joined the European Union two years ago. Today we see reforms taking place, at different levels and speeds, in Moldova, Ukraine as well as Georgia. I am pleased to be able to stand here before you today and acknowledge that, indeed, Moldova has set a foreign policy course of integration with the European Union.

Let me assure you that we understand and support Moldova’s strivings, which clearly have a regional as well as pan-European meaning.

In my presentation today, I will first talk about Estonia’s experiences in implementing reforms and accession to the European Union. I will then try to relate these experiences to the challenges that lie ahead for Moldova. Thirdly, I will touch briefly on the relations between the European Union and Moldova, including how the EU can contribute to resolving the Transnistrian question. I will conclude my presentation with an overview of Estonian-Moldovan relations.

Ladies and gentlemen,

I would like to start by talking about Estonia’s experience in carrying out reforms and its accession to the European Union. Estonia’s reforms were radical and at certain times even unpopular. Thanks to these reforms, Estonia has undergone a huge change from a former command economy to a rapidly developing country with an open economy and transparent taxation system. Our economic growth in the last few quarters has been 10-12 per cent, year on year.

The cornerstones of the development of the Estonian economy have remained the same during all governments. They are:
- a balanced state budget,
- a stable currency board arrangement and liberal economic policy
- a friendly and open investment environment,
- a clear-cut and transparent taxation system.

At the government's initiative, great emphasis has been placed on developing information technology and modernizing the related infrastructure, including providing IT-related education in secondary schools. One of the groundbreaking steps in this field was the creation of so-called e-government. The objective of this is to make government more transparent and effective, to bring it closer to the people and, at the same time, save on costs. The idea already has adherents in many countries. In cooperation with the business community, a network of public Internet access points open to everyone has been created, spanning the entire territory of Estonia, and the priority of the government today is to lay the groundwork for universal home Internet access. We are sharing our experiences in this field with other countries through the E-Governance Academy.

The accession to the EU was an Estonian foreign policy priority as early as 1995, but it was not a goal for Estonia in and of itself. The accession process itself was a means of guaranteeing stability, security and economic growth and of raising the standard of living. Estonia and other states that joined the European Union in the spring of 2004 had to expend great effort and do their homework in order for that to happen. In the course of pursuing these goals, Estonia developed all walks of life, from running the state to education, from the economy to the field of health care and the environment. The work was strenuous, but with the help of the EU, we reached our goal. Today’s Estonia is a democratic state with an open society and a market economy. Freedom of speech and the respect for human rights are firmly rooted.

Cooperation based on common values is important for all small states. Everyday communication and pragmatic cooperation promotes economic activity and is an important factor from the aspect of guaranteeing international security. That, ladies and gentlemen, is the moral of the European Union's half century of experience. At the grass-roots level, the European Union means, above all, more freedom! And that encompasses everyone, whether we are talking about students, business people or farmers.

The European Union is a growing family. Estonia has been an EU member for two and a half years, but we have the status of a schoolboy in a good many issues. We can give a definite answer to one question that was voiced with concern prior to accession. Namely, Estonia has not lost its identity and individuality in the course of the long accession process and during the time it has enjoyed membership.

The lesson Estonia can teach Moldova and other neighbours is that there is a need to set specific goals and put in place action plans for reaching those goals.


Ladies and gentlemen,

Next I would like to talk a little bit about our support for continued internal reforms in Moldova. As European Union foreign and security policy leader Javier Solana has said: “The EU is a model of what societies can do for the good of their citizens and this has led governments to change the ways in which their countries operate. As it expands, the EU has taken on the role of leader in creating an increasingly expanding area of freedom, democracy and stability. Democracy does not lie in theory and rhetoric. It requires action and practical reforms.”

Thus, Moldova’s primary goal in approaching the European Union should be the implementation of domestic reforms. Above all, it is in the interests of Moldova itself to establish a properly functioning market economy, to ensure the processes of an open civic society and to take effective action against corruption in complete harmony with all of the principles of the rule of law. The foundations of a sustainable democracy are an independent and high-quality judicial system and effectively functioning state institutions. The reform plans and political goals of young democracies are often ambitious. It is understandable that young democracies are impatient in reaching these goals, but patience and prudence in the implementation of plans is a key to making them a reality. Twenty good, honest and independent judges make more of a mark than any number of declared good intentions.

In getting its society and economy on its feet, Estonia went through a stage of development in the course of which the government had to carry out unpopular and sometimes even painful economic reforms. As a result of those reforms, our economy is today characterized by high competitiveness ratings. Without reforms, it would be naive to hope for an economically and socially sustainable state to take shape. Here I would emphasize that progress must be made in all fields. For example, without ensuring the rule of law, it would be difficult to achieve anything in many other spheres. The initiative for reforms must spring from Moldova itself. Each state undertakes these initiatives for itself, not for any symbolic “Brussels”. As a European Union member state, Estonia is always prepared to share its experiences with Moldova, ready with support, as needed, on the bilateral level as well as through multilateral programmes.


Ladies and gentlemen!

At this point, I would like to speak on the subject of relations between the European Union and Moldova. As a member state of the European Union, Estonia considers the European Neighbourhood Policy very important, its main goal being to contribute to the establishment of a democratic civic society in the European Union’s neighbour countries, including Moldova. Here we should acknowledge the fact that Moldova has placed the European Neighbourhood Policy Action Plan at the heart of its reform programme and that it has taken its first steps forward in a number of fields. In the framework of the European Neighbourhood Policy, Estonia and Moldova have become good neighbours and partners in cooperation.

In 2005, relations between the European Union and Moldova made a great step forward. In February, the European Neighbourhood Policy Action Plan for Moldova was signed in Brussels, while in October, the European Commission's representation was opened in Chişinǎu and the special representative of the EU, Adrian Jacobovits de Szeged, took his post. The European Union’s cooperation with Moldova is primarily related to legislative, administrative and institutional reform, the primary goal of which is to develop and promote peace, stability and prosperity in Moldova.

In the further development of cooperation between Moldova and the European Union, Estonia supports the start of the EU-Moldova visa facilitation talks as soon as possible. The visa simplification agreement is an important sign of the trust between the EU and Moldova and of the desire to have closer relations. Estonia has already taken action on its part in response of the plan of Moldova to waive unilaterally visa requirements for citizens of the European Union, including Estonia, from the first of January 2007. Namely, the Estonian government, on the nineteenth of October, approved the draft agreement between Estonia and Moldova waiving state fees for the processing of visa applications. Estonia will no longer require Moldovan citizens to pay a fee for the processing of transit and single-entry visa applications at Estonia’s diplomatic representations abroad. This step represents a gesture of goodwill on the part of Estonia.

Touching briefly upon economic topics, I welcome Moldova's efforts toward creating conditions that would allow the EU to pursue a more favourable trade policy towards Moldova. The European Union is a common market that is approaching 500 million consumers. Thus, greater efforts in reaching that market represent greater opportunities for development. I assure you that Estonia supports Moldova in achieving that goal. As I see it, Moldova’s current economic situation, with Russia having closed its market to an important Moldovan export article – wine – is similar to the situation Estonia experienced more than a decade ago when Russia levied double tariffs unilaterally against Estonia. Admittedly, it was very difficult for our business community to stay afloat, especially in the beginning, and, indeed, many enterprises did not do so. But hardship proved to be a sobering experience for Estonian entrepreneurs. It forced them to reorient their activity by showing them where reliable markets were located. This helped us to quickly integrate with Europe. In hindsight, some of our analysts have said, half-jokingly, that we should be grateful to Russia for establishing economic sanctions.

A very positive example of the cooperation, to this point, between the European Union and Moldova is the EU’s border assistance mission in Moldova (EUBAM). The mission on the Ukrainian-Moldovan border was launched on the basis of a memorandum signed between the European Union, Ukraine and Moldova on 1 December 2005. The objective of EUBAM – which has an eight-million-euro budget and, for the time being, a two-year mandate – is to contribute to increasing the general capacity of Ukraine and Moldova’s border guard and customs, to prevent illegal cross-border trade and to reduce related cases of corruption. The mission involves 74 experts from European Union member states, including five Estonian representatives. The decision of Ukraine to implement the customs agreement signed with Moldova on 30 December 2005 is praiseworthy. We hope that it will continue to be honoured. Estonia considers it very important that both sides continue to build a well-functioning border and customs inspection system.

The activity of the mission and, more specifically, the adherence in practice to the Ukrainian-Moldovan customs agreement, means the application of European standards in the field of border control and customs. Under no circumstance is it an economic blockade, as some statements would have it. Considering the current situation, the number of personnel in the mission should be increased further, in order to ensure a sufficient number of patrols on the so-called green border as well as presence at the border checkpoints.

We thus reach the topic of Transnistria. Estonia has been a consistent supporter of the unconditional withdrawal of Russian troops from Moldova and wishes to see a peaceful solution to this conflict, based on the principle of the territorial integrity of the Republic of Moldova. I am convinced that when it comes to the European Union’s eastern policy, we have to be more active than we have been so far in dealing with unresolved conflicts, including the Transnistrian question, lest they become sources of growing instability in the longer term.

It is important to find a political solution amenable to all parties, and I am of the position, that the continuing involvement of the international community is of determining importance in this matter. As I already noted, Estonia has been a consistent supporter of the unconditional withdrawal of Russian troops from Moldova – that means, abiding by the decisions of the OSCE’s Istanbul and Porto summit. Whether Russia complies with its obligations is a question of the OSCE’s credibility. The withdrawal of Russian troops is an important factor both for the unfettered development of Moldova as well as for the resolution to the Transnistrian conflict.

The current CIS peacekeeping model in Moldova does not conform to international standards in any shape or form. It is unbalanced, due the fact that it involves the parties to the conflict. The European Union must consider the possibility of taking the helm of a peacekeeping mission in a new format. An EU mission, or one led by the EU, does not, at the same time, exclude Russia from participating.

If Moldova is economically successful, stable and strong, this will also contribute to the resolution of the Transnistria conflict. Moldova could, in such a case, become a strong pulling force and the desire of the inhabitants of Transnistria to be associated with a successful Moldova would outweigh Soviet nostalgia and the personal ambitions of the leaders of Transnistria.


Ladies and gentlemen,

As promised, the last set of topics consists of a short overview of Estonian-Moldovan relations. I am sincerely glad that the good, businesslike relations between our states have enlivened considerably in recent years. There have been a number of high-level visits between Tallinn and Chişinǎu. Moldovan President Vladimir Voronin paid an official visit to Estonia last September, and then, President Arnold Rüütel visited Moldova this March. The speakers of the parliaments, the foreign ministers and senior officials from the foreign ministries of both countries have also had meetings with each other. In September, an Estonian diplomat started work at the Moldovan Ministry of Foreign Affairs. His task is to advise the ministry, primarily in European Union-related fields. Yesterday, I opened the Estonian honorary consulate in Chişinǎu, which will certainly help to make Estonian and Moldovan cooperation closer, first of all, in the fields of culture and business.

According to the Estonian development cooperation strategy for the upcoming years, Moldova is an important recipient state for Estonian cooperation. We consider it very important that Moldova channels its internal political energy into the sustainable development of the reform process. I believe that familiarization with Estonia's experience will give Moldova's current and future officials a good overview of our development model, and that it would be possible to use this model in planning Moldovan reforms.

I would stress at this point that, as a small state, Estonia’s best opportunities for offering development assistance lie in knowledge-based consultation. I am sure that compared to other donor states, Estonia has something special to offer here, since we ourselves have recently travelled down this road. Estonia and Moldova have a similar recent history and are of a comparable size. In planning cooperation, Estonia has taken the wishes and ideas submitted by Moldova, and used them as a basis for compiling more concrete cooperation programmes. To this point, our cooperation has, at least in the public sector, reached a very practical level – examples of the fields of cooperation include the raising of the administrative capacity, more precisely strengthening of the foreign service, the use of information and communications technology and the development of an information society, plus environmental matters. In these fields, we have implemented bilateral as well as multilateral projects.

Estonia has been increasingly active with regard to Moldova since 2000. In 2004, with the participation of Moldovan partners, information policy training took place, and the civic association cooperation strengthening project “East Gate” began, the goal of which was to support the cooperation of and the exchange of experience between NGOs in Russia, Moldova, Ukraine and Estonia in order to increase socioeconomic parity in the target area, support the growth of democracy and raise the quality of life. In the same year, in cooperation with the British Embassy in Moldova, we started a trilateral project devoted to European integration topics. Since 2004, Estonia has also provided a helping hand for training and providing consultation to officials at Moldovan ministries and local governments in the area of harmonizing legislation with European Union law.

In addition, young Moldovan diplomats have studied at the Estonian School of Diplomacy and I am glad to inform you that the Estonian Ministry of Foreign Affairs has decided, this year as well, to provide a scholarship for one young national official from Moldova to enrol in the English-language training programme in the area of international relations and European integration. Likewise, the Estonian School of Diplomacy will hold European Union and NATO-themed training courses for Moldovan diplomats and national officials. The first round of training took place last month in Tallinn, with the focus being on Estonia's integration experience. Estonia plans to support the training centre established in the framework of the Moldovan Ministry of Education programme “Leap”, in Moldavian “Salt”, with computers and respective equipment for a computer class. In addition, Estonia offers Moldovan teachers computer-related training. Since Estonia has recently travelled down the road toward universal Internet coverage itself, teachers from Moldova and Estonia will no doubt find it interesting to exchange experiences.

We sincerely hope that Estonia’s aid in implementing reforms necessary for reorganizing society and bilateral Estonian-Moldovan cooperation will help Moldova to fulfil its plans and to maintain its chosen political course.

Ladies and gentlemen,

In closing, allow me to return to my starting point: Moldova’s choices as seen through an Estonian prism. The late Estonian President Lennart Meri was once asked what Estonia would do differently if it was not invited to join the European Union and NATO. The President’s answer: “Nothing. Estonia would do everything exactly the same way.” The logic of the response was simple. Reforms and innovations are necessary, above all, for Estonia itself, so that, one day, everyone would arrive at the common realization – they are (like) us!

The road chosen by Moldova is full of challenges. We know that it requires perseverance and fortitude. Estonia’s choices, back then, were OUR choices. In the same way, Moldova’s choices are YOUR choices, which YOU yourselves, above all, can fulfil. As friends of Moldova, we are always ready to support you unselfishly. Regardless of the difficulties we may encounter, it is the road towards the strengthening of sovereignty and national security, as well as of ensuring stability and the prosperity of your people.

Thank you.