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2004 – A Europe of 25 – Crisis or Reform?
Excellencies, ladies and gentlemen,
Little more than a decade ago, we had the ‘fall of the Wall’, the ‘tearing down of the Curtain’ and the ‘collapse of the Empire’. Next May, the EU enlargement will take place. These dramatic changes have sparked fears of crisis among the more nervous observers. Well, let me give you a different perspective from an experienced country that has peacefully won the Cold War and is now on the brink of EU and NATO membership.
I never tire of telling visitors that Latvia is an old European country. Our European credentials are strong – the 800-year-old Hanseatic capital Riga; the German, Polish and Swedish historical influences; a rich native Baltic identity. 50 years of Soviet occupation could not suppress our determination to return to the West. We firmly believe that we belong in Europe, and the resounding ‘yes’ from Latvian voters in the referendum on 20th September was the latest proof of our European calling.
Over the past decade we have rebuilt our democratic institutions and our market economy, adopted laws and policies to align ourselves with the requirements of EU membership.
Enlargement opens up new opportunities for business. A recent survey carried out by The Economist Intelligence Unit among senior executives in Europe shows that enlargement should bring more stable business environments, growing consumer markets and richer consumers, smoother logistics and more transparent procurement.
Enlargement also brings political advantages. On the global arena, Europe will have ten more voices in the United Nations and other international bodies. Common positions and joint actions on foreign policy issues will carry more weight. Within the EU itself, the newcomers, in particular those from Central and Eastern Europe, will bring a new energy to the daily business of the EU. Our belief in the importance of transatlantic ties should strengthen the relationship between the US and the EU.
Our recent experience of transition to democracy and the market economy also qualifies us for contributing to stability and good governance in the immediate neighbourhood of the EU. For historical and geographic reasons the three Baltic states have a unique experience of relations with Russia, Belarus and the Ukraine. Our Eastern border will next year become the external border of the EU. We therefore have to address the opportunities and challenges arising from enlargement by strengthening practical cooperation with our New Neighbours at the cross-border and regional level. The integration of Russia is very important for the stability and development of the Baltic Sea region. Cooperation has already begun in several areas - trade, energy, maritime safety, justice and home affairs, border control and management. Support for civil society, especially in Belarus, is another priority.
Since regaining independence in 1991, Estonia, Latvia and Lithuania have worked closely together to promote common interests in Northern Europe, including shipping safety, improved transport links and security in energy supply. We are active in the Council of the Baltic Sea States and enjoy close practical relations with the Nordic countries. The Baltic Sea region is now the most dynamic region of Europe and we have the experience to make Europe more competitive on the global stage.
However, we cannot afford to become complacent. It would be a mistake to think that the process of reform will end on 1st May. Enlargement remains a challenge both for the new and the existing Member States.
The newcomers will have to work hard to catch up in the European economic network. One of our top priorities will be to improve transport and energy links with the rest of Europe. We also need to focus more on education and research that promotes development and attracts more investments. Effective government policy on structural reforms, taxation and fighting corruption is a precondition for success. On a more fundamental note - while other regions of the world struggle with population control, we are concerned about alarmingly low birth rates, not only for the tax burden that will fall on future generations, but also for the vitality of our language and culture.
Speaking about the challenges of enlargement that lie ahead for the present Member States, it is not only about facing new competitors and seizing the opportunities that arise from new markets. It is also about understanding the needs and particularities of the new Member States and supporting their efforts to find their individual place in Europe’s economy.
A common challenge to both present and incoming Member States is to fine-tune the institutional set-up of the EU, so that a union of 25 and more will function effectively, while preserving the principle of equality demanded by all our citizens.
In order to ensure a maximum efficiency, the decision-making procedures must be as simple as possible. Latvia supports the idea of a double majority voting system within the European Council. This is a relatively simple system that can be easily explained to our citizens, unlike the qualified voting system envisaged by the Nice Treaty.
A fundamental aspect of the principle of equality lies in each country’s right to nominate a member of the European Commission, who has full voting rights and a portfolio. Some have questioned the Commission’s effectiveness with 25, 27 or more members. We believe that it is possible and the Commission believes that it is possible. Each commissioner reinforces the notion that his or her country bears equal responsibility for the common interests of Europe.
Likewise with the rotating presidencies in the European Council structures. There is broad agreement that the system needs to be reformed, but the principle of equal rotation has to be maintained. It provides each Member State, regardless of size, with the invaluable opportunity to lead the work of the European Union in a particular field.
One of the ways for the Union of 25 to go ahead is enhanced cooperation, where a group of countries chosen to be more integrated in one or another area. Enhanced cooperation should, however, remain open to every Member States, regardless of its population and financial resources. As to proposals concerning a common European defense policy, we believe that all Member States must have an equal say in the adoption of decisions that concern our security.
I believe that the Intergovernmental conference will result in a satisfactory compromise. After all, the European Union has constantly evolved over 50 years and is capable of further adaptation according to needs. The greatest challenge has always been to bring the EU closer to its citizens. Our aim is to associate the EU with everyday realities such as regional aid, ease of travel, food safety and consumer protection. We must keep this goal in mind as we continue on the path to the EU enlargement.
Thank you.
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