Luxembourg, 21 October 2002 13377/02 (Presse 331)

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1.1. The Ministers for Foreign Affairs of the Member States of the European Union and a representative of the EU Commission, the Ministers for Foreign Affairs of the seven Partner Countries (Estonia, Iceland, Latvia, Lithuania, Norway, Poland and the Russian Federation), together with observers and the International Financial Institutions met on 21 October 2002 to set out draft guidelines for a new three-year Action Plan for the Northern Dimension with external and cross-border policies of the Union 2004-2006.

1.2. The Conference proceeded on the basis of the results of the ministerial conference on the Northern Dimension and the Arctic Window in Greenland on 28 August 2002.

,QWHUQHWhttp://ue.eu.int/ (PDLO[email protected] 13377/02 (Presse 331) 1 (1 1.3. The Conference welcomed the interest paid to the Northern Dimension by the Heads of Government at the IV Baltic Sea States Summit held in St. Petersburg on 10 June 2002 and by the Ministers for Foreign Affairs at the 11th Ministerial Session of the Council of the Baltic Sea States held in Svetlogorsk, Kaliningrad oblast of the Russian Federation, on 6 March 2002.

1.4. The Conference took note of the conclusions of the Arctic Council Ministerial Meeting held in Saariselkä (Finland) on 9-10 October 2002.

1.5. The Conference welcomed the successful pledging conference for the Northern Dimension Environmental Partnership Support Fund held in Brussels on 9 July 2002. The EU, the Northern Dimension partner countries and International Financial Institutions confirmed their support of the NDEP to ensure an efficient use of resources allocated to environment and nuclear safety.

1.6. The Conference welcomed the attention given to the Northern Dimension at the Baltic Sea Parliamentary Conference held in St. Petersburg on 1 October 2002 and the Fifth Conference of Parliamentarians of the Arctic Region, Tromsö 11-13 August 2002.

1.7. The Conference also welcomed the large number of conferences held in the past year with a focus on the Northern Dimension. It took note of the results of the Northern Dimension Business Forum held in Copenhagen during the Baltic Development Forum Summit on 14 October 2002. The dialogue with the business community in the framework of the Northern Dimension Business Forum and other fora should be further developed in recognition of the fact that private sources must provide the major part of the capital needed to further develop the Northern Dimension area.

1.8. The proposals made at the above mentioned conferences should be carefully examined in the course of preparing the new Action Plan.

1.9. The Conference welcomed the readiness of the European Commission to prepare a draft 2004-2006 Northern Dimension Action Plan, taking account of the elements provided hereafter and drawing on extensive consultations with all partners.

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2.1. The Northern Dimension area is one of the most dynamic regions in Europe. It has achieved high growth rates and has a solid basis for developing a leading knowledge-based economy, thereby making a significant contribution to achieving overall European objectives for growth, competi- tiveness and job creation.

2.2. The Northern Dimension is a framework for continuous dialogue on priorities and for co- ordination and co-operation. The approach is broad and horizontal. The aim is to add value to the efforts to develop the area by promoting coherent actions.

2.3. The whole area will be deeply transformed by the upcoming EU enlargement. The principal objective of the future Northern Dimension policy will therefore be to address the opportunities and challenges posed by this historical event. The positive impetus provided by the enlargement of the Union should be of benefit to the entire Northern Dimension area.

2.4. In this perspective, it will be important to strengthen efforts, on both sides of the borders, to stimulate trade, investment and infrastructure, to create productive employment and to promote social and cultural exchange, in a context of full respect for the environment and sustainable development.

2.5. A strengthened interaction at all levels between Russia and the EU in the context of the Northern Dimension is essential to achieve these overall objectives, and will act as a catalyst for Russia's closer ties with Europe.

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3.1. The Conference agreed that a new Action Plan is needed, as a principal instrument to provide all actors involved with a guiding framework regarding objectives and priorities, indicating certain specific priority themes which partners should take forward.

13377/02 (Presse 331) 3 (1 3.2. The European Commission should maintain its overall leading role in the Northern Dimension. The Commission should also facilitate information exchange among all regional actors concerned.

3.3. An appropriate division of responsibility should be agreed for the implementation of the new Action Plan among all relevant actors including EU Member States and partner countries, regional bodies, local governments, the business community and civil society, academia and the scientific community.

3.4. The Conference requested the Commission and the International Financial Institutions to work with all partners to achieve better co-ordination of financing instruments. The Commission will continue to strengthen co-ordination and synergy between the EU financing instruments (i.a. TACIS, PHARE, INTERREG). Attention will be paid to the problems arising from the use of different financing instruments in the context of cross-border, transnational and interregional co- operation. The financing approach used in the Northern Dimension Environmental Partnership might be considered for use in other sectors as a useful model.

3.5. The richness of co-operation fora across the region is a positive feature of the area and this strength should be built upon, in particular through an effective division of labour and co-ordination among the existing organisations such as the Council of the Baltic Sea States, the Barents Euro- Arctic Council, the Arctic Council and the Nordic Council of Ministers.

3.6. The new Action Plan should give a particular attention to regions such as the Arctic and Kaliningrad, ensuring that these cross-cutting themes are mainstreamed in all relevant aspects of Northern Dimension activities.

3.7. A review and monitoring mechanism should be established. This should be based on annual progress reports that are focused on the effectiveness of the co-ordination efforts of the Northern Dimension and should not duplicate reports of spending bodies. Senior officials should meet annually to monitor the progress in executing the Action Plan. The first such meeting will be held late in 2004. Annual meetings will thereafter alternately be held at Ministerial or Senior Officials level.

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The new Action Plan should give priority to improvement of the framework conditions aiming towards the establishment of a favourable business climate in order to increase trade and investments thereby helping to realise the objectives of the Northern Dimension policies. Good governance must be part of this priority.The Action Plan must support the implemen- tation of the economic reforms in the Russian Federation.

Further efforts must be made to remove technical and other barriers to trade and investments, to promote equal competition among economic actors and to develop a transparent financial sector. Special consideration must be given to SMEs, and especially to Russian SMEs, in order to make it easier for the enterprises to adjust to the European market. Ongoing efforts to speed up border crossings and to fight corruption should be continued.

Measures to stimulate investments should be adopted. It is important to take account of the role which foreign investment can play and the need to attract the kinds of investment which can best promote development and innovation. The plans for launching the Baltic Sea region as a "Joint Investment Area" should be supported.

13377/02 (Presse 331) 5 (1 Enhancement of corporate environmental and social responsibility and accountability, in line with the Johannesburg Plan of Implementation, should be a priority. The effects of investment projects in indigenous and other local communities and their traditional industries should be appropriately addressed. Trade, business co-operation and economy must develop in the full respect of internationally recognised principles of sustainable development.

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Infrastructure must be developed in the area in order to provide better security of energy supply to the European continent. The work on energy issues in the framework of the Council of the Baltic Sea States will be taken into account when planning actions related to integration of energy markets, climate issues, energy efficiency, renewable energy and using the Baltic Sea region as a testing ground for the Kyoto flexible mechanisms. The new plan should promote efficient production, distribution and use of energy.

Elements of the EU-Russia energy dialogue are particularly relevant for the Arctic and High North. The Action Plan should encourage Arctic states to take due account of environmental, social and economic impacts of undertakings to develop, use and transport hydrocarbons, taking into account the latest research on the specific circumstances in the Arctic.

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The new Action Plan should support the goal of creating an environmentally friendly integrated transport and communications market and promote efficient use of existing infrastructure and support the further realisation of the Pan-European transport network in partner countries.

13377/02 (Presse 331) 6 (1 The means include harmonisation of laws, attraction of investments, enhanced administrative capacity, use of advanced logistics and telematics, networking researchers, reducing waiting time at borders and improved safety.

Short Sea Shipping should be developed as an efficient form of transport following the White Book initiatives on the Marco Polo programme as well as taking account of the revision of the TEN guidelines in 2003/2004 and the new concept of "Motorways at Sea".

The new Action Plan should consider issues of Maritime Safety and Security as reported by the Committee on Maritime Safety (COMS) of the Baltic Sea Parliamentary Conference. Particular emphasis should be given to the implementation of the HELCOM Copenhagen Declaration by the Baltic States.

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The new Action Plan should encourage further progress made in the framework of the Northern e-Dimension Action Plan (NeDAP) launched in 2001. Activities might be proposed in: High Speed Research Networks and advanced broadband applications, ICT Security, eSkills, eCommerce, eGovernment and Indicators. The possibility of expanding NeDAP to address challenges related to telecommunications in Kaliningrad and the Arctic should be considered.

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The Action Plan should promote the sharing of experience in utilizing the scientific potential to promote sustainable economic growth. Opportunities to co-operate with Russian institutions in the application of their scientific potential for economic development should be used.

Sustainability in the capacity building process is the key word on the personal, local, regional and international level. A qualified work force requires educational opportunities for all age groups.

More intense exchange of students and researchers will enhance development. States should improve the conditions for such exchanges especially in the leading sectors of the economy.

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The new plan should promote research pertaining to climate change and economic, social and environmental impacts caused by climate variability and change. Consideration should be given to the ongoing work by the Arctic Council Arctic Climate Impact Assessment. The research programmes of the EU and partners should consider the need to develop infrastructure, materials etc., which can stand harsh climatic conditions in view of climate change and efforts to develop competence in solving transport and other problems under extreme climatic conditions and long distances. There is a need for applied research into environmentally sound exploration, extraction and transport of fossil energy and minerals. The plan must recognise the need to analyse how rapid social, political, economic and environmental changes occur in the Northern Dimension area.

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The new Action Plan should build on the progress made under the current plan and give high priority to the fight against communicable diseases, especially TB and HIV-AIDS, in Northwest Russia and the candidate countries in accordance with the recommendations adopted by the Fourth Baltic Sea States Summit in St. Petersburg on 10 June 2002 on the threat of communicable diseases.

The plan should include a programme for the development of competences in the health sector in Northwest Russia, including Kaliningrad.

The objectives and actions of the new Action Plan should be developed in accordance with the EU strategy on public health (the EU Public Health Programme 2003-2008).

The Conference noted that there is a need to consider the establishment of a Northern Dimension partnership to support concerted joint actions to overcome the serious health and social problems in the area. The partnership could reinforce wide collaboration of countries, organisations, financial institutions, business and industry, communities and civil society. It should be based on long-term sustained commitment by equal partners, with initial impetus coming from the Northern Dimension partner countries themselves.

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The new plan should take into account the need to strengthen cultural development and the preservation of cultural heritage, including the promotion and preservation of cultural diversity.

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4.3.1. The Action Plan should address environmental challenges on the basis of monitoring reports by the European Union, HELCOM, Baltic 21 and the Arctic Council's Monitoring and Assessment Programmes.

4.3.2. Priority will be given to support investment projects in major hot spots in order to reduce pollution of the Barents and Baltic Sea regions, to enhance financial and environmental sustainability in both the rural and urban sectors, promoting energy efficiency in the context of the implementation of the Kyoto Protocol and water management, and assisting the region to align with international agreements such as the UN-ECE Espoo, Aarhus and Stockholm Conventions.

4.3.3. The Conference urged all the parties involved to sign as soon as possible the Multilateral Nuclear Environmental Programme in the Russian Federation (MNEPR) agreement, which creates the legal basis for a significant effort to deal with accumulated spent nuclear fuel and radioactive waste in Northwest Russia.

4.3.4. The Northern Dimension Environmental Partnership and its Support Fund were indicated by the Conference as crucial frameworks for the implementation of environmental and nuclear-related projects in the Northern Dimension area. The Conference also invited those Countries that are not yet part of the initiative to consider joining it as soon as possible.

13377/02 (Presse 331) 10 (1 4.3.5. The Action Plan should contribute to the goal of the Johannesburg Plan of Implementation to accelerate the shift towards sustainable consumption and production, water efficiency plans and to achieve the goal of clean drinking water and to reverse the current trend in natural resource degradation, including the goals pertaining to sustainable fisheries. The Plan should also contribute to the elaboration of national and regional strategies for sustainable development. It should contribute to the aim to achieve by 2020 that chemicals are used and produced in ways that lead to the minimisation of significant adverse effects on human health and the environment, taking into account the adverse effects of persistent organic pollutants (POPs) and mercury on human health in the Arctic.

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4.4.1. This co-operation should contribute to promoting regional economic development and integration of the whole Northern Dimension area. The responsibility to initiate co-operation among bordering regions based on a genuine partnership lies mainly with the regions themselves. The EU financial instruments should support this co-operation as efficiently as possible. There is also a need to co-ordinate EU funds and bilateral funds to facilitate co-operation across the border with Russia within the Northern Dimension area.

4.4.2. The various cross-border co-operation arrangements in the area, including Euro-regions and the co-operation between Russia and Lithuania based on the Nida-initiative, could form a basis for intensified work focused on the borders with Russia in the Northern Dimension region. Co- operation with the Northwest areas of Russia should be intensified.

13377/02 (Presse 331) 11 (1 4.4.3. Regional and local authorities should build up knowledge and expertise in the use of the EU structural funds and programmes to support political priorities and strategic goals for the area and secure access for citizens to public services. Regional and cross-border co-operation and twinning projects should contribute to developing adequate management capability at the regional and local level. The experience of actors at sub-state level such as the Baltic Sea States Sub-regional Co- operation and the Union of the Baltic Cities and the Barents Euro-Arctic Regional Council could be used to ensure better co-ordination.

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The new Northern Dimension action plan should give priority to the fight against organised crime. Rapid implementation of the EU-Russia Action Plan against organised crime is essential. Particular emphasis should be given to combating crimes related to drugs, trafficking in human beings, money laundering and trafficking in stolen vehicles and highly taxed goods. Concrete operational measures must be further developed between the EU and Russia, building on the experience of the Task Force on Organised Crime in the Baltic Sea Region.

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It is a priority to foster good management of the new EU-Russia border. It must be secure and efficient, meaning that it should prevent smuggling, illegal migration and other cross-border crime but allow easy passage for the purpose of legitimate trade and human contacts. There is an urgent need to reduce waiting time at borders through better border management (e.g. practices and procedures) and improved border infrastructure. The existing co-operation and the extensive experience at the Finnish-Russian border, as well as the useful methodology for customs co-operation developed by the Barents Council could serve as models.

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Further work should be done under the new Action Plan to promote civil protection in the Baltic and Barents regions. An expert meeting in Copenhagen on 29-30 August 2002 provided material for further development of the Euro-Baltic programme.

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5.1.1. The development of the Kaliningrad region is a Russian responsibility. The new Action Plan must reinforce actions to promote the socio-economic development and the environmental protection of the region, which must be able to take advantage of the opportunities created by the EU enlargement. Improved border infrastructure and border management will increase the possibilities for Kaliningrad to benefit from the developments in the area.

5.1.2. The new Action Plan will have to pay special attention to the issue of energy supply to the Kaliningrad region, as an important factor for the overall development of the region.

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5.2.1. The new Action Plan will also have to give adequate responses to problems and challenges of the northernmost regions of the Northern Dimension area, and particularly of the Arctic. The Plan should include measures to promote a sustainable development, including the utilisation of natural resources of the Arctic.

5.2.2. Efforts should also be made to ensure a high level of education and capacity building at local level to support the development of the region. Due attention will have to be paid to the needs of indigenous peoples living in the High North and in the Arctic. Scientific Research will have to pay special attention to the Arctic region.

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6.1. The Conference reiterated the importance which the new Action Plan will have in connection with the upcoming EU enlargement. Accompanying this historical event in the most effective way, both at the policy level and in providing tangible effects, will be the main mission of the Northern Dimension policies in the next years.

6.2. In order to better fulfil this task, the new Action Plan must be based on a strategic vision of the development of the Northern Dimension region and on realistic objectives to be achieved through initiatives carried out in each of the priority sectors mentioned by the present guidelines. The Conference also invited all relevant actors to take an active role both in the discussions on the new Action Plan and in its implementation, to be reviewed and monitored at regular intervals according to the mechanisms foreseen by the Action Plan.

6.3. The Conference asked the Commission to start the preparation of the new Action Plan as soon as possible, in order to produce a consolidated draft during the second quarter of 2003.

6.4. The Conference asked the upcoming Greek Presidency of the Council to follow up closely and grant its full support to the whole process in the course of its mandate in the first semester of 2003.

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