Välisminister Ojulandi ettekanne Austria Majanduskojas

Address by Kristiina Ojuland Minister of Foreign Affairs of the
Republic of Estonia to the Austrian Chamber of Commerce 29 January 2003 

Ladies and Gentlemen,

The great Austrian and great European, Count Richard Coudenhove-Kalergi wrote the following epigraph for his masterpiece Pan-Europa: “Jedes grosse historische Geschehen begann als Utopie und endete als Realität”. This manifest, for the uniting of Europe, was born right here in Vienna, exactly 80 years ago. That, which was then the dream of only a few, is now a reality for hundreds of millions. Ten years ago accession to the European Union  was also just a dream for Estonia but by today, this wish is becoming a reality. And now the nations of Europe are no longer asking “What kind of a Europe will we get in the 21st century?”, but rather, “What kind of a century do we want to create for ourselves together with Europe?”.

I

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 borders. Therefore, the European Union’s enlargement offers us both opportunities and responsibilities.

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.

II

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 acceding 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 does not support the idea of creating the post of President of the European Council. We definitely prefer to see the preservation of the rotating Presidency in the Council and in Coreper. We find that the method of the Union has been effective and that it should be preserved. Also, the European Commission should not be assigned a lesser role. And we believe, that based upon the principle of equality of all member states, every member state’s representation must definitely be maintained in the European Commission.    

Estonia’s firm 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.

The Estonian Parliament  --  Riigikogu  --  has decided that the referendum necessary for acceding with the European Union will be held this year on September the 14th. In Estonia, the general public’s support for acceding with the EU has lately been a stable 50% plus (in December 2002, 57% for, 36% against). For the public, two issues have been central - the balance between the citizen and various EU institutions and the protection of the interests of small states in the European Union.

III

John Kennedy once said that distinguishing domestic politics from foreign policy is like drawing a line on water. Without a doubt, one of the principal sources of Estonia’s success in the foreign policy field has been consistency in domestic politics. By avoiding sudden and diametrical changes in key policy areas, Estonia has earned the reputation of a reliable and responsible country that can be taken seriously. Decision-makers have been guided by the understanding that a country’s reputation does not necessarily have to be shaped by its geographic size or population, but rather by its economy, how innovative and successful its reforms are, how co-operative and responsible are its politics.

Estonia understood early on that a country with limited natural and human resources can thrive only if it rules out autarchy, in all of its forms, opens up its economy to investments and its markets to free competition. Without a doubt the rapid and radical reordering of the economy and joining the world market has served as a stabilising factor in Estonia and the surrounding region. In short: fiscal and economic policy has played a key role in helping Estonia become a producer, not a consumer of security. Indeed, this can be considered a decisive feature in Estonia’s transition process.

Estonia’s high international credit and economic potential ratings show that these developments have not gone unobserved. Estonia is 21st in the Institute of Management Development’s index of competitiveness, which is a much better position than that which has been achieved by whatever other Central and Eastern European state. Presently, in the sphere of economic freedom, Estonia is the sixth state in the world, sharing that position with Denmark and the United States. Transparency International lists Estonia as a state with a very low corruption indicators. 

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.

IV

Tigers have never roamed our tiny northern country, but seven years ago, we saw the launching of the computerization of the Estonian school system - The Tiger’s Leap.

By the year 2000, the aim of computerizing all Estonian schools had been achieved. Within the framework of this project, there were several basic principles, which we have adapted for new endeavours.

Firstly, the active role of the state as an initiator and implementer, especially in the primary phases of new programs. In today’s Estonian economy, the private sector plays an 80% role, and quite often, we have to debate the matter of what function the state plays in such a situation at all. We have to admit, that the Estonian market, with its population of 1.4 million, is a small one. Within, both the state and local government sector, the energetic implementation of IT solutions helps to overcome several problems, which are dependent upon the smallness of our market, yet helps to create a critical mass of offered services. Many government decisions create an appropriate environment for the further development of private sector services.

Estonia created the world’s first paper-free Government. The fact that the state tries to order not yesterday’s, but tomorrow’s solutions, should stimulate firms competing for government orders to focus upon new, innovative solutions, thereby making these firms also competitive outside of Estonia.

A good example is the route that various Estonian governments have, over the years taken to integrate the traditional census registry with the microchip equipped multifunctional ID card, and the digital signature. It is essential that we implement the microchip-equipped ID card into the digital signature system. In Estonia, a document with a digital signature is legally useable in all situations and can be used for the confirmation of other documents.

Secondly, public-private partnership. The intensive co-operative activity, which began with the computerization of our school system, has continued in Look@World, a project aimed at resolving various IT development problems in our society. The initiative came from Estonian private firms, which, with the aim of promoting our information society, have contributed sums that equal the government’s IT investment. Until the digital signature was implemented, Estonians, for instance, dealt with the revenue service, and various other government agencies, via their electronic banking service, which had been the intermediary in their relationship with government services providing personal identification.  

Thirdly, transparency and openness. All major Estonian developments in the IT sphere have taken place in conjunction with open debate. In a small community, this offers the best opportunities for encompassing everyone who has something interesting to contribute. We can soon claim, that a developed internet connection with the citizens has become as widely an accepted composite of democracy.

Fourthly, the efforts to reduce the societal digital divide. A recent, very thorough study shows that, in Estonia, as elsewhere in the world, pensioners, middle-aged people, and older blue-collar workers have a problem keeping up with the rest of society. And people in more remote regions tend to be left behind.

Just a little over 30% of Estonian homes are equipped with computers, which doesn’t place Estonia especially high in the European "hit parade". But, if we consider public internet centres per thousand inhabitants, then we’re one of the foremost countries in Europe.
The aforementioned study shows that more than 41% of the populace actively uses the internet.

Fifthly, ensuring the existence of strong international competition in the private sector. Thanks to the ongoing competition between three mobile telephone networks; the opening up of fixed line telephone networks to competition; the increased use of various non-line internet connections; the internet services offered by cable television firms; and many other factors, we can, today, talk about indicators, which correspond to those of average European Union development. And among the Candidate States, we are, together with Slovenia, at the top of the "list". The integration of the e-mail and SMS message systems has created a correspondence system which has increased the efficiency of our whole society.

To be progressively competitive within the sphere of global competition, Europe must have large firms, which, functioning on an all-encompassing EU level, are capable of making substantial investments into research and development that results in truly groundbreaking studies. For small states, and their firms, the only way to achieve success, far too often, is to concentrate on some particular niche products. Estonia, for instance, can offer highly developed IT and communication sector adaptability, biotechnology, and the development of new innovative materials. And we, naturally, hope that in an unbiased and all encompassing EU market our export firms will be successful.

V

It has been predicted, that by the year 2010, the European Union should be one the most economically efficient and dynamically developing regions in the world. But if presently prevailing tendencies continue, the aforementioned outcome is hard to envision, especially if we consider the attitude of complacency, which the EU seems to be assuming of late. And for the neutral observer, this complacency is mystifying, considering the present economic atmosphere. Unfortunately, it seems there is a quiet acceptance of what can be labelled the “European rate of growth”, which will probably ensure a comfortable lifestyle, at least for a while, for the present generation. But this self-satisfied attitude will also ensure that the European Union will not be able to make up for economically falling behind the United States during the last few years. The fact is, that the EU is consistently lagging behind global economic trends. There is even the danger, that the European Union will become marginalized, both economically and politically.

But the European Union, and Estonia, are capable of much more. We believe, that both old and new Member States will make their worthy contributions to the true development of our common future. As a small state, we will hopefully be more flexible and adaptable than bigger ones, being therefore able to organize our economy and social system, in many ways, more efficiently. Thus, we will be able to ensure a quicker economic growth and general improvement of welfare for ourselves.

I believe that also in the sphere of Estonian – Austrian bilateral economic co-operation there is, still today, plenty of untapped potential, which, if properly harnessed, would prove how useful we can be for each other.

I thank you!