Abstract
In the 20 years since the ‘Baltic Way’, a common identity has resurfaced among the Baltic states, which are bound by strong geo-strategic interests and political ties to the European Union, NATO and the forum of cooperation of the Baltic and Nordic countries (NB-8). One of the EU's current challenges is to address the problems of uneven infrastructure and economic development in the Baltic region, along with the environmental hazards threatening the Baltic Sea. The author argues that the EU's Baltic Sea Strategy will be highly useful for restoring and maintaining the ecological balance of the Baltic Sea and for promoting balanced economic development in the region. Latvia is committed to the development of an integrated energy market and seeks to foster growth and competitiveness through the elimination of economic and social disparities in the Baltic region. Full support from all Baltic states, the European Union and international institutions and programmes is essential for reaching these goals.
Keywords
Few weeks ago I flew to Sweden and Finland on business. In my briefcase I had my Latvian passport, credit card, mobile phone and e-ticket. No visa to obtain, no hard currency to buy, no travel via Moscow as was necessary 20 years ago. And I was travelling as the head of the Latvian government, once again an independent state, and a member of the European Union and NATO.
It is helpful to remember this perspective when all the talk these days is of the economic difficulties in Latvia. My country has changed almost beyond recognition in the 20 years since the fall of the Berlin Wall and the event known as the Baltic Way. On 23 August 1989, the 50th anniversary of the Molotov-Ribbentrop Pact, nearly two million people joined hands in a 600-km-long human chain—the Baltic Way—in order to protest peacefully against the Soviet occupation of Estonia, Latvia and Lithuania stemming from the pact.
The three Baltic states have been bound for centuries not only by geography but also by shared history and cultural affinity. Latvia and Lithuania have related languages, although throughout the centuries we have spoken to each other in the dominant foreign language, now increasingly English. Our common Baltic identity became strongest after we all disappeared behind the Iron Curtain and then joined hands to reclaim independence as the Soviet regime collapsed.
Since the Baltic Way, our three countries have maintained and built contacts in all possible fields. The human chain has become a dense network of transport, energy, education, tourism, culture, defence, business and trade links. These contacts were cemented by our accession to NATO and the European Union, respectively, in March and May 2004. I am proud that my party, New Era, headed the government of Latvia in the run-up to accession. As Minister of Finance at the time, I devoted all my energy to preparing Latvia for EU membership with regard to finances, customs and taxes. I was also involved in the referendum campaign, explaining to Latvian voters the details of EU financing. A total of 71% of eligible voters participated in the referendum, voting 67% in favour of joining the EU.
Naturally, all three Baltic states have established close links with the Nordic countries and with other countries around the Baltic Sea rim. As neighbours and friends, the five Nordic countries have provided support from the very beginning. Iceland was the first country to recognise de jure our restored independence in August 1991. We soon embarked on the ‘5 + 3’ cooperation, which has now evolved into the ‘NB-8’ format. In fact, the week after next I will again be going to Sweden, this time for the annual NB-8 Prime Ministers meeting.
It is sometimes argued that the NB-8 configuration does not make sense, as some of its members are not members of the EU (or the Eurozone) or of NATO. Given that six—and with Iceland on the road to membership, possibly soon seven—of us are in the EU and that the two members outside NATO have a close partnership with the Alliance, I believe there is firm common ground for cooperation in this format.
With most of the Nordic countries, as well as with Poland, Russia and Germany, we share the benefits and concerns of bordering the Baltic Sea. The Baltic Sea is rather shallow, with only 3% water turnover per year. Since the end of the Cold War and the EU enlargements of 1995 and 2004, the number of Member States surrounding the Baltic Sea has grown to eight and it has become practically an EU inland sea, not only in geophysical but also political terms.
The challenge to the EU is to address the problems of environmental hazards, as well as the uneven infrastructure and economic development around the Baltic Sea. This challenge was recognised in the European Parliament already back in 2005, when the Baltic Intergroup, headed by MEP Christopher Beazley, made public calls for a comprehensive approach to the Baltic Sea within the EU context. This later led to the adoption of a Parliamentary resolution in November 2006, calling for a strategy to be outlined by the Commission and adopted by the European Council.
At the time of writing, the Commission has submitted its Communication on the EU Baltic Sea Strategy, and the Swedish Presidency expects the Strategy and its Action Plan to be adopted at the European Council meeting at the end of October 2009. The Strategy will not require new financing before 2013, nor will new institutions be created for its implementation. Its aim is to improve and give added value to existing cooperation in the Baltic Sea region. The Strategy is based on four pillars: (1) improving the environmental condition of the Baltic Sea; (2) promoting more balanced economic development in the region; (3) making the region more accessible and attractive; and (4) making it a safer and more secure place. These four goals are further divided into 15 different challenges or priority areas. Specific targets or goals will be set and different Member States allocated the task of implementing concrete projects with designated lead partners, specific targets and review dates. Latvia, together with Denmark, has assumed responsibility for Priority Area 10, namely, to improve access to and efficiency and security of the energy markets.
The development of a common EU energy policy and support for regional energy projects are vital for the Baltic Sea region. Increased energy safety and sustainable economic growth are key factors in this regard. To this end, Latvia will support the development of an integrated, well-functioning and competitive energy market in the Baltic Sea region (building up energy interconnections with the European energy networks and upgrading power generation infrastructure). We also wish to promote the production of renewable, clean energy through applying the best know-how and new technologies, and to improve energy efficiency in housing and industry. Latvia is already the EU country with the highest share of renewable energy (32%) in its energy consumption, and our new target is 40%.
In our view, it is also essential to foster growth and competitiveness in the Baltic Sea region through eliminating economic and social disparities that hinder achieving the full potential offered by the EU's internal market. Support for small- and medium-size enterprises and innovation activities should be our focus. Modernised and accessible transport infrastructure and bridging gaps in connections between the Baltic states and the European transport network will serve as important factors in facilitating free movement of goods, assuring parity of access to services and developing sustainable modes of transportation.
Education, research and culture are essential aspects for the development of human resources, enabling citizens to achieve their fullest potential in life and thereby contributing to future growth and social welfare. Students these days require higher levels of education and more complex skills in a competitive labour market dominated by rapid development of new technologies and demands for new and updated skills. The Baltic Sea region has great potential to become a hub for education and research, as well as offering unique cultural diversity. Creative industries are increasingly important in generating and sustaining competitiveness.
The Baltic Sea is one of the most environmentally endangered seas in the world, so it is essential to restore and maintain its ecological balance and to preserve the inherent restoration capacity of the sea. Since not all states around the Baltic Sea are members of the EU, the involvement of international institutions and programmes is important for reaching common goals. In this respect the existing instruments of the Northern Dimension, the Helsinki Commission, the International Maritime Organization and the Council of Baltic Sea States should be used in the implementation of the Strategy. The involvement of third countries that have an impact on the waters of the EU, particularly on their environmental quality, is of vital importance (e.g., cooperation with Belarus and Russia regarding the protection of the Daugava River basin).
Of course, some threats, such as crime and natural disasters, have no respect for national borders, and responses to these threats also require a macro-regional approach, complementing measures taken at EU level. The Baltic Sea Strategy is obviously still in its infancy and will continue to evolve in accordance with the needs of this macro-region. My hope is that in 20 years' time, we will judge this year as a time of difficult but necessary decisions, of rising up from our laurels and working harder than ever to improve the lives of people all around the Baltic Sea rim. With the support and encouragement of our Baltic and Nordic friends and neighbours, along with all partners in the EU, I am sure we can recover and begin to prosper again soon.