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Home , 1999 in Luxembourg, Copenhagen criteria, Ivan Kostov, President of Estonia

BULGARIA

During the first year of the term of the new Government, the Prime Minister gave a statement about the Government’s work to the National Assembly in , on May 15th 1998.1

During this speech, regarding mainly the reforms planned and made by the Bulgarian Government in the program “ 2001”, the Prime Minister Ivan Kostov names as one of the major objectives of the United Democratic Force (UDF) Government the pan- process. The UDF has after one year in power succeeded in establishing European and completing political transition peacefully, which should prove the reliability of Bulgaria’s state institutions. Part of Bulgaria’s strategy for accession to the (EU) will be the building up of a new state administration system. The first step forward this reform is an Administration Bill initiated by the Government. The judiciary reform, which is meant to regulate efficiently public relations and implies a three-tier justice administration system that already established courts of appeal, should also speed up the process of accession. The Government was able to reduce trafficking of people, CDs and drugs by the new Act on the Ministry of the Interior that renewed the structure of the police force. The Prime Minister mentions furthermore the following steps, stipulated in the program “BULGARIA 2001” for accession to the EU: The national pre-accession strategy to place Bulgaria within the industrialised European is of fundamental interest for the country. Mr. Kostov understands the decision to include the country in the enlargement of the EU as a sign of appreciating Bulgaria’s achievements. The second step is the harmonisation of Bulgarian legislation with EU-law. Bulgaria is working uninterruptedly to meet the criteria. In addition, the country seeks to satisfy the Maastricht criteria for membership in the Economic and Monetary Union (EMU) and to be recognised as an infrastructure centre in Southeast . As far as the economy is concerned, Bulgaria depends on encouraging on privatisation and foreign investors as motor of a competitive market economy. A program on restructuring and privatisation of the Military-Industrial Complex is one of the elements for the country’s accession to European structures. In 1997 EU-orientated exports accounted for 44.7 % of all Bulgarian exports and the trade balance is still positive and amounts to 305 million US-Dollars. For Prime Minister Ivan Kostov thus is reason enough to pursue accession to European structures. The major EU trade partners were (26,1 %), (23,3 %) and (15,5 %). The major priority of the Bulgarian investment program lies on developing power, transportation and communication infrastructure as well as integrating them into European infrastructure. The Bulgarian Government thereby places special emphasis on corridor 8 that connects the country to the Middle East and Central . Regarding communication, the document “Policy in Communications”, the new Communication Act and the preparation for setting up an independent authority according to the legal and regulatory framework of European legislation have been major steps advancing European structures in the Communication sector. In the sphere of transportation infrastructure an indicative program has been developed that covers 26 priority investment projects within the system of European transportation corridors

1 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/kostov4.html 1 No 4, 7, 8, 9, and 10. The , the PHARE Program and the National Highway Network Fund support the rehabilitation of the highway network and bridge rebuilding. 2,6 million from the PHARE program is equally being used for repairs to the railway and the foundations of the Rousse-Gyourgevo bridge. The Ministry of Labour and Social Policy and the National Employment Office are in charge of providing conditions for a well functioning labour market, of helping to increase the number of new jobs and to boost employment. This shall be achieved by conducting a self-employment promotion policy that draws on the experience of West European countries. Also national vocational training standards, as well as education in general, will introduce uniform requirements for the acquisition of professional qualifications in line with EU standards.

On April 21st 1998, Bulgaria’s Prime Minister Ivan Kostov stated the situation of Bulgaria within Europe and during the crisis at the Parliamentary Assembly of the in Strasbourg.2

First of all the Prime Minister points out the highly symbolic character of the Council of Europe, that embodies the principles of a state which is committed to the , representative democracy and respect for as well as the centuries-old European system of values. Further, Mr. Kostov speaks for the Bulgarian Government and the Bulgarian people who share the belief that “Europe” will be the key word in the coming century and he warns not to draw a new borderline within Europe and separate the Balkans. The Prime Minister sees the Bulgarian initiative on educating citizen as part of the Action Plan “democratic security” and calls the Council of Europe to strengthen the citizens` knowledge of their rights in all European countries. Then Mr. Kosov starts to resume Bulgaria’s role during the Kosovo crisis, when the country was named an island of stability, but suffered economically for the safety of Europe because of the UN-imposed Yugo embargo. In his notion the real integration of the Balkans in Europe means therefore first and foremost the establishment of sound economic relations, the influx of sizeable capital and the transformation of the region into an infrastructure and energy centre which is open to the Middle East, Central Asia and the Caspian Basin. He re-emphasises Bulgaria’s efforts to strengthen peace and security in South –Eastern Europe, such as participation in and playing host to meetings of the Ministers of Defence, Transport and Energy or initiating trilateral meetings on different levels, including top-level, between Bulgaria, and Greece as well as between Bulgaria, Romania and Turkey. It was under Bulgarian diplomacy that the Joint Declaration of the Ministers of Foreign Affairs of Bulgaria, Romania, Greece, Turkey and Macedonia on the situation in Kosovo took place on March 10, 1998. This Declaration can be used for further actions in the region, for example of the European Union and the Contact Group at later stages in the Kosovo crisis. The world should know that for the first time – with the Declaration on National Salvation adopted in May 1997 – there has been a real and effective interaction of the democratically elected institutions in Bulgaria. The National Security Concept approved by an overwhelmingly majority of more that three-quarters of the MPs is the most vivid proof that there exists a strategic majority for change in Bulgaria. The name of that change is Europe and the Atlantic community. The Bulgarians return to Europe where they have always been, it is the only way to economic prosperity, sustainable development and security. National legislation shall be brought in line with European standards and enforcement mechanisms are to be created, as well as reforms in administration and the judiciary for which

2 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/Pase_eng.html 2 Bulgaria asks for advice from international organisations. A European legal integration program is on its way and the Bulgarian Government has been successful in fighting excessive corruption to non-existence. As Bulgaria is open to , democracy and human rights, the Government supports the proposal to establish the post of Human Rights Commissioner whose independence and objectivity will ensure considerable progress in the enforcement of the main European conventions. The Bulgarian President already signed the Framework Convention on Protection of National Minorities in October 1997 at Strasbourg.

At the Economic Forum in Salzburg on June 23rd 1998, the Bulgarian Prime Minister Ivan Kostov held a speech regarding the reforms and objectives meant to be achieved by the Government by 2001.3

The Prime Minister presents the objectives and way of carrying out the reforms in Bulgaria between 1998 and 2001 as following: First of all, Bulgaria aims to meet the Copenhagen criteria and enter into European Union accession negotiations. In parallel, the country also wants to meet the Maastricht criteria. The second major objective is to develop the country as an infrastructure, communication and energy dispatching centre. These reforms are supported by the World Bank and the IMF, which shows Bulgaria’s political stability. The Currency Board Arrangement has furthermore stabilised the financial sector and in July the Lev: Deutsche Mark exchange rate was fixed at 1000:1 and will remain such till the is pegged on the Euro. 73 % of the state-owned long-term assets will be privatised through the privatisation program by the end of 1999. The Bulgarian investment program envisages over 6 billion Dollars investment by or with the participation of the central Government and the municipal authorities by 2001. The Government of Bulgaria will support each investor, because for Bulgaria a stable economy is the only way to open the country to European integration. Mr. Ivan Kostov expects Bulgaria to catch up on the reforms, to learn from the mistakes of those who started before them and to take the path of European Union and NATO accession successfully.

At the “European Enlargement” plenary session at the Economic Forum in Salzburg on June 24th 1998, the Bulgarian Prime Minister Ivan Kostov mentioned some points of critique regarding the standpoint of the European Union towards the timing of Enlargement.4

The Prime Minister initiates his speech by showing Bulgaria’s interest in the success of the Euro and by expressing the conviction that the challenges of the coming century are far larger than they seem today, at least as far as Bulgaria is concerned. Although Bulgaria appreciates the Luxembourg decisions that started the EU accession, they are not sufficient for the country. Bulgaria, facing the problems of transition and lying in Europe’s most turbulent region, expects from its partners in Europe a braver vision and stronger orchestration. Mr. Kostov criticises the current decisions as not taking adequate account of the human factor, the potential of the countries in Central and Eastern Europe, their geopolitical significance and most of all the risks that they are facing. There is no alternative to rapid integration for avoiding regimes like that of Milosevic or Lukashenko. In the case of Bulgaria it should furthermore be remembered that it was isolated in the course of five years by the Yugo embargo – for the sake of European security. The country strictly abided

3 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/Salzburg_23_eng.html 4 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/Salzburg_24_eng.html 3 by it and incurred financial losses that exceeded all the credits extended between 1989 and 1998. Bulgaria is concerned about its feeling that new dividing lines in Europe are to be drawn. This fear derives from the delay and postponement of EU Enlargement and not from the Enlargement itself, that solves problems in the region instead of creating them. To dispel that feeling the Prime Minister proposes to give a clear rational schedule of accession rather than generalities and promises in principle. The Bulgarian Government has approved and is implementing a preparation program for EU membership, which envisages that by 2001 Bulgaria should meet the Copenhagen criteria and be ready to enter into accession negotiations. This should be achieved by integration into EU law, success of planed reforms, faster economic growth, better competitiveness of Bulgarian goods, trade liberalisation, capital movement and strict determination to the financial discipline of the Currency Board. All these plans should finally comply with decent income levels in Bulgaria.

At the Opening of the Autumn Session of the National Assembly on September 2nd 1998, The Prime Minister of Bulgaria, Ivan Kostov, encouraged the Parliament by numerating the planned reforms in all sectors of the State.5

The Prime Minister points out once more, that every year is decisive for Bulgarian reform and that it would be thoughtless to presume it is going to finish soon. Beyond that, reforms imply instability, but stability is in fact badly needed by Bulgarian society. So the Government takes the opportunity to initiate the process of completing the reform in specific social and economic spheres by the end of 1998, and by the end of July 1999. The judiciary reform could be brought to a successful end by attaining the enforcement of the rule of law upon everybody in Bulgarian society. Through the second phase of the tax reform Bulgarian tax legislation should more easily be harmonised with EU tax legislation by draft-laws submitted from the Government to the National Assembly. The Prime Minister also plans to bring the reform of the electronic media to a successful end by the end of 1998, and here privatisation plays an important role. The most painful part of the structural reform - rehabilitation of enterprises, bankruptcies and privatisation - is going to be carried out in the next three years. Loss-making enterprises shall be declared bankrupt by the end of the first quarter of 1999, at the latest by mid 1999. July of that year is also the date that the Prime Minister is mentioning for passing the administrative acts needed for the state administration reform. As regards human rights, the Bulgarian Government is not going to question the ratification of the Convention on Minorities and will thus demonstrate that they are worthy Europeans.

The Bulgarian Prime Minister Ivan Kostov showed conviction in Bulgaria meeting the Maastricht criteria by the year 2001 at the Meeting in Vienna on December 12th 1998.6

Speaking for the Bulgarian Government, the Prime Minister firstly notices positively that the European Union acknowledges the progress of Bulgaria. Nevertheless, Bulgaria is obviously sometimes unsuccessful in promoting its case convincingly. The Prime Minister notes furthermore that 18 months are first of all too short for demonstrating visible results of all the launched reforms and secondly also too short for establishing confidence.

5 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/kostov2.html 6 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/EC_eng.html 4 Due to time limits new essential achievements could not be reflected in the report presented to the Vienna European Council, but they give sufficient ground for optimism for the forthcoming report of the year 1999. In respect to the Conclusions of the Council of the European Union requesting the , giving priority to a high level of nuclear safety in the Accession Partnership process, the Bulgarian Government assures that nuclear safety is also an utmost priority to them. In economic terms, the discipline required by the Currency Board arrangement enables Bulgaria to meet the Maastricht criteria by the year 2001. The Government would therefore welcome the introduction of the third phase of Economic and Monetary Union (EMU) as of January 1st 1999 and is convinced that Bulgaria shall achieve the same level of stability and transparency of its financial policy as applied by the full-fledged EMU participants.

On January 6th 1999, Prime Minister Ivan Kostov addressed greetings to the heads of diplomatic missions in Sofia, regarding from the outgoing the future of Bulgaria in Europe.7

The Prime Minister starts his speech by summarising Bulgaria’s policy in 1998: its constructive presence in the international community as well as its concern with peace and security in Europe and in the world, which brought the country the title: island of stability. The Government sees the country’s geopolitical role in the Balkans as transforming the region - which is a potential source of tension and conflicts - into a zone of security, stability and an open gate to Europe, both economically and politically. To Bulgaria real integration into Europe means foremost the establishment of sound economic relations, then sizeable capital influx and last the transformation of the region into an infrastructure and energy centre which is open to the Middle East, Central Asia and the Caspian Basin. The objects Bulgaria pursues are economic growth and the revival of the Bulgarian economy, which are tasks that cannot be achieved quickly. Nevertheless, Bulgaria plans to meet the Maastricht criteria by 2001 and therefore warmly welcomes the initiation of the third phase of the Economic and Monetary Union (EMU) as of January 1, 1999. The Prime Minister is convinced that Bulgaria will be able to achieve the same stability and transparency for its financial policy as full EMU participants. This can be proved by the following facts: In 1998 the country completed a three year agreement with the IMF, the World Bank likewise supports the reforms in Bulgaria and on January 1, 1999 the country became a full CEFTA member. As regards privatisation, the Prime Minister however demands active support to overcome the weakness in the economic and structural reforms so that it will be possible to complete privatisation 1999. Mr. Kostov points out that Bulgaria’s preparation for EU membership is and will continue to be of primary importance and it is the country’s aim to meet the Copenhagen criteria so as to open accession negotiations in 2001. Fast-track performance to meet the EU obligatory pre-accession conditions will remain a key task between now and then and the prospects of the Prime Minister for Bulgaria to meet these conditions are optimistic.

7 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/index.html 5 On the 120 Anniversary of the Parliament, the Bulgarian Prime Minister Ivan Kostov emphasises the close relation between Bulgaria and the European Union in front of the Parliament in Sofia on February 10th 1999.8

For Mr. Kostov the Bulgarian National Assembly symbolises most clearly modern Bulgarian statehood, because it is the place where Bulgaria not only pronounced the national idea, for which it had long suffered, but also its will for democracy, economic progress and European identity. He furthermore assures the Parliament that its stability is crucial for the stability of the state. Remaining in history, The Prime Minister talks of the strong connection between Bulgaria and Macedonia, but looking forward to the future he is convinced that the most frequently used word in Parliament will be Europe instead of Macedonia. Macedonia and Bulgaria have reached an agreement to sign a Joint Declaration on February 22nd 1999, that includes close to 20 bilateral agreements, regarding trade, economic development, movement of goods, services and capital, customs and border formalities, transport links, mutual investment and the development of cultural co-operation. This is the European news of Bulgaria on the historic 120th year of the Bulgarian parliament.

On the occasion of the Adoption of the Act on Ratification of the Framework Convention on Protection of National Minorities on February 19, 1999, the Prime Minister Ivan Kostov put efforts into convincing the majority of MPs to vote for the Ratification, that was already accepted by the Bulgarian Government and the Bulgarian President.9

Thanks to the fine co-operation of the Government and the President there is an agreement on the signing and ratification of the Convention, but the first voting in the Parliament brought no clear majority. Therefore the Prime Minister appeals to the Parliament, above all to the opposition, to restrain their fears and to do something extremely significant: to bury nationalism by voting for the adoption of the act on ratification of the European Framework Convention on Protection of National Minorities. He tries to convince the MPs by bringing the crisis in back to their minds, the problems that arise from extremism and he asks them to become real European politician by voting for the ratification. After the law is adopted on the second vote, Mr. Kostov calls this decision a step forward to Europe, where Bulgaria in his eyes has always belonged. Beyond that, this pro-European decision is taken by the Prime Minister as a sign that there is a European Majority of two thirds in the Bulgarian Parliament.

During his speech at the second economist roundtable with the Government of Bulgaria at Sofia on June 8th 1999, the Prime Minister Ivan Kostov summarised Bulgaria’s achievements and showed his disappointment at the insufficient reaction of the EU.10

The achievements of the past two years have attracted special attention because of discussions on the Stability Pact, which has often been referred to as one of Bulgaria’s achievements. These achievements have been economic, for example the introduction of the idea of the Euro to the Balkans through the stability provided by the Currency Board. But they have also been political: After the ethnic genocide against in 1989, Bulgaria has created a way of living

8 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/ns_120_e.html 9 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/ns_ram_konvetion.html 10 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/KOSTOV2-%2008-06-99.html 6 together in peace. The top priority of domestic policy is fighting organised crime to improve tax compliance, increasing respect for the Government and stabilising the economy. Regarding the future, there will certainly be no easy way out for Bulgaria that still has not reached the turning point in convincing investors to put their money into the country, partly because of the Yugoslav conflict that was misleadingly named the Balkan war. Political risk perceptions should be reduced by clear signals from the West and the Prime Minister states two ways in which the EU could send positive messages instead of unjustified negative ones: One concerns Schengen: The restrictions – like visas – restrain investors from investing in Bulgaria and show the government that its progress against organised crime is not regarded as being sufficient. The other concerns membership negotiations: The EU could evaluate Bulgaria’s performance positively at the December meeting in Helsinki and invite the country to start negotiations at the beginning of next year. The Prime Minister thinks that Bulgaria’s risk is overestimated, because it is assessed on the basis of 1997 data. Apart from demanding an updating of the evaluation, Mr Ivan Kostov mentions a few other things that could be done by the EU to sustain his country: Simply pouring cash into the region is not the answer and there is no need for additional credits, because that only means more debt. The answer is finding a responsible government, giving it money and then seeing what it does with this financial support. Beyond that, non-Bulgarian projects, for instance the Trans-European Corridor 4, should be Europe’s concern and not merely Bulgaria’s. Corridor 8 is another problem and it is not a purely Bulgarian concern, although its inhibition prevents Bulgaria from the Adriatic Sea and the Italian market. It should be taken into account that the Kosovo crisis influenced Bulgarian economy and therefore Bulgaria would like two projects to be prioritised: The already mentioned Corridor 4 and the rebuilding of the bridges over the Danube, because nobody knows if or when the Yugoslav route might be closed again. The big loss-making enterprises of Bulgaria should be closed by the end of June. The other growth and budgetary problems should be resolved by concentrating on small and medium-sized enterprises instead of big ones. Mr Kostov sees the role of the Government in creating the right conditions for business to invest, rather than to invest itself.

On June 22nd 1999, The Bulgarian Prime Minister Ivan Kostov held a speech before the Bulgarian Parliament in Sofia on the occasion of the Cessation of the Air Strikes against Yugoslavia, regarding Bulgaria’s future plans and its past decisions.11

The Bulgarian position during the Kosovo crisis was neither motivated by xenophobia, nor by a future NATO membership nor by probable economic benefits from the future peace. It was prompted by the Bulgarian interest of reaching speedy and just peace to end ethnic genocide. Creating and defending this position was a great challenge for Bulgarian society and institutions, but they successfully passed this test and showed convincingly the merits of Bulgarian democracy. It was a judicious European choice to grant airspace for the air operations and all Bulgarian institutions supported this position of Bulgaria. Therefore Mr Kostov claims that Bulgaria is an example for all its neighbours and that the country came out of the crisis stronger, as European Bulgaria. But still the future of South Eastern Europe is unclear, the threat of destabilisation of the Republic of Macedonia and continues and democracy isn’t yet well established in Yugoslavia. Bulgaria responds to these problems with the following policy: The first objective is the speedy return of the deported Kosovo to their homes, which faces the problems that the people first of all have no practical means to return quickly by the

11 http://www.bulgaria.govrn.bg/eng/prime_minister/statements/WAR-END06_23.HTML 7 winter with no guaranteed security. Bulgaria therefore offers to assume concrete obligations for the realisation of a plan for the return of the deported Kosovo Albanians. Bulgaria doesn’t support the idea of a revision of the Balkan borders because any ethnic cleansing will be a reason for new conflicts and the destabilisation of South-Eastern Europe. To guarantee military and civil security for everybody, the Bulgarian Government will suggest to the National Assembly that it allow passage through Bulgarian territory for international security forces such as KFOR. The Prime Minister emphasises that the neutral position of Bulgaria has never been against the and in favour of the Albanians in Kosovo. Bulgaria’s attitude ensues from its European value system, treating all neighbours equally and wishing them well. That is why the Bulgarian Government did not wait for permission from outside as for when to cancel the oil embargo against the Federal Republic of Yugoslavia, because they acted due to the need of their neighbour. From the peace Bulgaria expects foremost that the customs duties and a part of the other restrictions on Bulgarian exports to the European Union Member States will be reduced. The financial support from the pre-accession fund of the EU will not be large and will just release internal financial resources for priority activities. As the implementation of infrastructure projects is of high importance for the country, the Prime Minister will insist on the construction of transport, energy and products highroads of common European importance, including the bridge across the Danube between Vidin and Kalafat of the Pan European corridor No 4. Bulgaria’s economic priority today is to accelerate local and foreign investments to avoid begging in front of Europe’s gates and trying to elbow away neighbours which are in extreme need.

8 Czech Republic12

On August 19th 1998, the Government of the issued a policy statement.

The main goal of the Czech government is the transformation of the Czech society in order to become a modern society of the . The country is lacking systematic evaluation of the first eight years after November 1989. As far as the economic situation is concerned, the Czech Republic is facing an economic depression. The situation is affected by a drop in economic performance, a declining standard of living measured by a drop in real wages, an increasing growth in unemployment, as well as a growing national debt . In support of the social transformation that was initiated in November 1989, the Czech Republic would like to carry out the following measures:

A reform of public administration including the commitment of some new bills with a view to implementing a constitutional act on the establishment of self-governing regions The revival of economic growth by applying policies in the industrial, agricultural and export field The approximation of the Czech legislation to

Aiming to reinforce the democratic state, the legislative steps taken by the Parliament of the Czech Republic would require constitutional acts:

In order to join the European Union, the country has to establish the principle of precedence of European Community law over national law A proposal for the supplementation of the Constitution with an institute of a public defender of human rights and freedoms will be submitted

Human rights and freedoms are considered to be an inseparable part of the new democratic state. Great importance will also be given to the rights of national and ethnic minorities in a way that the coexistence of the majority society with the Romany minority would be guaranteed. In connection with this, the Czech Republic is going to work for programmes to amplify information about the Roma among the Czech society as well as to improve the education of the Roma. As regards the economic policy, the government will establish transparency of public financial flows, such as subsidies. It will be indispensable to implement a comprehensive state economic policy that would fit in to the practice of the EU. In the field of public finance, the Czech Republic is endeavouring for a reform of the taxation system in order to bring the taxation system into line with the harmonized taxation systems in the EU. This reform would include the following principles:

The rates of VAT will gradually be harmonized with EU standards An increase of the income tax rate is not foreseen

12 Sources that have been used to elaborate the chapter: *Internet site: http://www.vlada.cz *Ministry of Foreign Affairs of the Czech Republic: Mrs. Hana Flanderová Loretanské námesti 5 11800 Praha telephone: 00420-2-24182195 fax: 00420-2-24182054 9 Regarding the principles of the EU Common Agricultural Policy, measures of the Czech government will be orientated towards:

The protecting of basic food supplies from local resources The abolition of the unequal situation concerning agricultural primary producers as price receivers on the market

The priority target of the Czech foreign policy is the involvement of the country in European and world politics based on cooperation, , human rights and cooperative security. The Government is pursuing admittance to the European Union and the NATO. While negotiating accession to the EU, the country is insisting on conditions that adhere to Czech national interests. Another important decision is the adoption of a constitutional referendum bill regarding the accession of the Czech Republic to the European Union. During the process of elaborating an EU accession strategy, the country is trying to gain economic assistance within the Agenda 2000 programme of the EU. Furthermore, the Government is dedicated to effectively using opportunities, such as the funding of projects granted by the European Investment Bank.

In April 1999, the Czech Minister of Foreign affairs, Mr. Jan Kavan wrote the article “The Czech Republic’s foreign policy for European Integration” in the journal “Euro-Invest 2000”.

Referring to the Czech Policy Statement from August 1998, Mr. Kavan stressed the principal objectives, such as the creation of favorable conditions for the peaceful development, security and prosperity of the country as well as of the citizens. 15 European countries with a total population of 370 million are viewed to provide reliable security for Czech interests. The priority target within the European process of cooperation has already been achieved: the creation of peaceful relations among the member states of the integration grouping and the setting up of preconditions for close cooperation and economic prosperity. Mr. Kavan highlighted the joining of the European integration process as one of the main foreign policy priorities. The approval of the country in the first wave among five candidate countries from Central-and Eastern Europe has been seen as a great success. The Czech Republic would like to contribute to the unification of Europe with its own cultural identity. As the creation of the European Monetary Union and the introduction of the Euro are considered to be a real success for the European integration process, the country will carry out measures in order to adhere to the criteria of accession. After forming part of the EU, the Czech Republic would like to join the European Monetary Union as early as possible. With a view to guaranteeing that the internal market would not be destabilized by organized crime, the government is working for the harmonization of migration and visa policies with that of the EU and preparing for the adoption of the Schengen acquis and the Amsterdam Treaty. The Czech Republic is endeavouring to be ready to join the Union by the year 2003. Nevertheless, many important tasks have to be taken into account like the implementation of a large body of legislation constituting the . In this field, the required institutional and organisational prerequisites have already been carried out. At the moment, the Czech Republic is drawing up a modified version of the National Programme for the Preparation of Membership. During the pre-accession period, the Government is fully making use of the resources offered by the EU to applicant countries, such as the Phare programme as well as programmes to be carried out for the areas agriculture and regional policy.

10 By informing various groups of the population about the EU and the benefits of a future membership, the people will be prepared in a responsible way for a referendum on the accession of the Czech Republic to EU.

In April 1999, the Czech Prime Minister, Mr. Milos Zeman wrote the article “The new Czech Government-making plans” in the journal “Euro-Invest 2000”.

Aspiring for EU membership, the strategy of the Czech Republic is focused on the objective to make up for shortcomings that were affected by the decades of communist totalitarian system. Through cooperating with EU bodies and agencies, these shortcomings will be solved. Due to Mr. Zeman, the GDP of the country currently represents approximately 63% of average GDP in the EU and is the highest in all the transforming states of Eastern Europe. This positive record is founded as a part of the historical heritage instead of resulting from post-revolution economic policy. Already in the beginning of the century, the Czech Republic, as part of the Austro-Hungarian Empire, was highly industrialized. In comparison with and , his country was able to maintain this advantage during the communist rule for 40 years. Nevertheless, favourable conditions of the country were extent to some affected by the mismanaged models of economic transformation. As far as Mr. Zeman is concerned, the main reason for the current economic difficulties results from the badly managed privatisation programme. This was a new and untested privatisation technology referring to the Marxist theorem on public ownership. At the moment, the new Czech Government is working towards the following measures:

Organization of the fight against economic crime Establishment of better conditions for foreign investors by improving the transparency of the capital market Improvement of the legal system of the country

One reason why the Czech Republic would like to be admitted into the EU are the resources that the country could obtain from structural funds. In addition, a future membership of the EU might contribute to overcome the effects of a 40 years’ isolation during the communist dictatorship. The country is totally convinced that fixing a final date for accession would depend on its own readiness as a result of the preparation process. Already during the pre-accession period, Mr. Zeman would welcome the participation in some European projects, such as the trans-European networks (infrastructure investment projects). This inclusion of the applicant countries in long- term development projects would be appreciated especially due to globalization. As regards the cooperation within the Visegrad group, such as Poland, Hungary, and the Czech Republic, Mr. Zeman is convinced that this cooperation would accelerate the accession process. In connection with this, the Czech Prime Minister would like to see the inclusion of Slovakia to the first wave of candidate countries since this incorporation would reduce the costs of some border installations that would disappear anyway within a few years.

11 *

Remarks by , Minister of Foreign Affairs, at the U.S. Chamber of Commerce, 16 September 1998, Washington D.C.: Estonia and the EU accession process.

Mr Ilves spoke on Estonia and the EU accession process stressing three topics: the nature of the accession negotiations, broad political and economic aspects of the negotiations and the Russian crisis. The watershed in Estonia's post- 1991 history - its inclusion in the first group of countries invited to begin accession negotiations - not only confirmed progress in the field of European integration, but also the status of a stable, free and democratic country. According to the Minister it was testimony to the success of radical economic reforms undertaken by the country upon the restoration of independence. These included the elimination of all tariffs, the creation of the first and until now the most successful currency board system in Eastern Europe, a constitutionally mandated balanced budget, a flat/rate income tax, and the most extensive privatisation in Eastern Europe, which moreover privatised for cash using the Treuhand model. The EU accession negotiations launched in March 1998 were unlike traditional negotiations, where the underlying premise of the accession negotiations was that Estonia, like other candidate countries, would take on board the acquis communautaire in full. In the next few years, Estonia would have to reach agreement with the European Union over the technicalities of its accession. Though Estonia accepts the EU' s rules in principle, their immediate implementation in certain fields will prove difficult, as has been the case with all countries that have joined the EU. Time and money was needed to improve the environment, a legacy of the Soviet era. Some more technical questions also had to be ironed out, including the continued validity of Estonian trademarks after accession and the size of fisheries quotas. On the political level, Estonia had started to feel the potential of deeper links with Europe. Her status on the international stage had been upgraded from EU 'applicant' to 'future member.' Close association with the European Union means that Estonia had shed the unwanted moniker of a former Soviet republic. European integration had become part of daily business of Estonian national administration, institutions, politicians and business community and individual citizens. What were once foreign policy and the domain of diplomats, had now become a central domestic issue. The prospect of EU membership led to a significant rise in the quality of guarantees and control mechanisms on all Estonian goods and services. Since the start of accession negotiations in March 1998, foreign investors have shown a greater interest in Estonia. Foreign Direct Investment to Estonia was one of the highest in Central and Eastern Europe - according to the United Nations Committee on Trade and Development it rates highest per capita behind Hungary.

------* Sources: http://www.president.ee, http://www.vm.ee and http://www.riik.ee.

12 Estonia commenced the irreversible transition towards a market economy in 1992. The post-socialist economic reform was not painless. A radical course was chosen, involving complete price liberalisation, the adoption of a currency-board system, a constitutionally mandated balanced budget and complete openness to foreign trade and investment. As a result, Estonia now boasts one of the healthiest growth rates in the region. In 1997, Estonia's GDP growth reached 11.4% - the highest in Europe. Inflation has been decreasing steadily.

Estonia had reached a high level of integration with the European economy. Since 1995, more than half of Estonia´s exports and two-thirds of Estonia's imports had come from trade with the European Union. Following the entry into force of the Estonia-EU Association Agreement in February 1998, trade between Estonia and the EU had been completely liberalised in all but a few sectors, such as processed agricultural goods. Yet while Estonia's future lies in the European Union, the do not plan to limit themselves strictly to the European market. Commercial relations with , and the Ukraine were growing rapidly. Estonian banks were aggressively entering the Latvian and Lithuanian markets. In order to diversify their export base, Estonians were interested in promoting trade relations and investment with states and regions beyond Europe. Estonia, with a population of 1.4 million, represents a limited market for the US. But her open, liberal economy and strategic regional position make her an ideal platform for investors looking to enter the European market. The spin-off benefits of EU membership - a higher profile for Estonia internationally, greater credibility in the eyes of investors, a solid common currency, and increased market access, would undoubtedly make Estonia a more attractive partner to American firms.

Prime Minister Mart Siimann's address to the European Union Conference, 5 November 1998, .

At the international meeting in Estonia that focused on the subject of the European Union after Estonia started accession negotiations with the European Union, Mr Siimann discussed issues of the enlargement process. He talked about the possible effect membership would have on Estonia's competitive abilities and on the economic environment as a whole. With regard to the European Union as an economic union, he said open and just competition was especially important for small countries with market economies, like Estonia. Foreign trade was the key to Estonia's economic development. Because of its small internal market, Estonia was among those few countries in the world that derives two thirds of its gross domestic product from trade. The Prime Minister deemed competition on the European market extremely intense and therefore the strengthening of Estonia's competitive capabilities central to economic reforms. Mr Siimann said that starting in 1995, Estonia's economy had been on the upswing. The European Union provided essential support to the reforms. Estonia's political and economic reconstruction was, nevertheless, far from complete. There were large capital items, such as environmental protection, regional development, infrastructure modernisation, that Estonia alone could not finance. The European

13 integration process and the European Union's assistance helped to effect the reforms faster and more efficiently. With a view to increasing Estonia's competitive capacity, Mr Siimann said the opportunity to offer one's merchandise and services in the whole Union meant increased volume of production. Adoption of European Union quality guarantees and control mechanisms would help to improve the quality of Estonia's products. Compliance with European Union standards would make it possible to sell Estonia's products under the "Made in the European Union" label. Increasing Estonia's competitive power in the eastern market was another positive development. European Union membership also meant an expansion of export opportunities also with countries outside the Union, including . After Estonia had become a member of the European Union, Russia could no longer treat Estonia differently from other European Union countries. The Union's support for ecology and transportation infrastructures within the homogeneity framework, and the retraining of the unemployed with assistance from the European Social Fund, would help Estonia in bringing economic standards closer to the standards of the member states. The quality of life and standard of living in Estonia would rise thereby.

A few sensitive sectors for the European Union, such as agricultural products, were not included in the free trade regime that exists between Estonia and the European Union. Membership of the European Union would bring about positive changes in this area. Presently, agriculture and food productions were the most critical areas of consideration in Estonia's economy, and in the context of European Union accession. The competitive capacity of Estonia's producers would be enhanced after European Union membership, because then European Union producers will no longer be able to send their products to Estonia under subsidised pricing. The competitive capacity of the Estonian economy was increased by foreign investments. Despite low domestic savings, Estonia's level of investment reached almost 30% of the gross domestic product. Among Central and Eastern European countries, Estonia was very attractive in terms of investments per capita. After joining the European Union, the volume of investments should increase even more, because then investment in Estonia would mean investment in the European Union market. In addition, European Union membership would increase the investor`s confidence in Estonia and would create a stable investment environment. The transformation of the economy into an all-European one would create a new situation. This economic environment would be especially favourable to small and medium sized enterprises. Opportunities to obtain loans from other member states' credit institutions would open and reduce the cost of borrowing in Estonia and thereby improve the business climate. In the interest of large business, Mr Siimann mentioned research programs whose benefits and expenses were shared in common. The result would be the technological development of European business, modern production methods and lower costs. Mr. Siimann said Estonia was in the process of bringing laws into compliance with the European Union legal system. This would bring about rapid economic development and enhance the general well being of the population. Union membership would precipitate economic interest towards Estonia in those developed countries that are not members of the European Union.

14 European integration was an important catalyst for Estonia's development. It would expedite development in all spheres of life. The Prime Minister mentioned that some people claimed European Union membership would mean the abandonment of liberal trade policies, especially trade with third countries. Nevertheless, he stressed that significant agreements reached at the Uruguay round of the World Trade Organisation, which aimed at the global liberalisation of trade, would affect the European Union and other countries, and that should be recognised by Estonia. In conclusion, Mr Siimann emphasised that the government considered European Union membership to be Estonia's political priority. It had symbolic as well as practical significance. Full membership status within the European Union would give Estonia de jure restoration of European inclusion and the termination of half a century of forced political, economic and cultural separation. In practical terms, membership of the EU would offer new opportunities for development and would be an essential guarantee for Estonia's future.

Remarks by Raul Maelk, Minister of Foreign Affairs, at the International Conference “Estonia and the European Union”, 15 November 1998, National Library in Tallinn: Estonian vision of the European Union.

Mr Maelk said that after months of intensive 'screening,' Estonia had reached the halfway mark in the first phase of its EU accession negotiations. In order to prepare for this technical exercise, Estonian experts have worked through approximately 80.000 pages of compulsory EU legislation and also looked at numerous recommended texts that form part of the acquis. This comparison of Estonian legislation with the European Union's had brought positive results. Estonia had gained practical information and experience. There were few contentious issues to negotiate.

The EU's decision to move to the second substantial phase, of the negotiations in parallel with the screening process was deemed significant. Mr Maelk stated that moving forward in several of the screened chapters helped maintain the momentum of the entire enlargement process. This was important considering that the negotiations were certain to continue for several years. Defining Estonian interests and working out sound positions was the most important part of the negotiations work. In this process, the delegation was co-operating closely with the 's European Affairs Committee. As Mr. Maelk's predecessor stated on 31 March 1998 at the launch of the negotiations, Estonia seeks a negotiating result that is constructive, and above all, acceptable to the Estonian people.' Maintaining close contacts with their elected representatives helps ensure that this goal is met. Estonia´s aim was to keep the lines of communication open with the Estonian public during the negotiations. In the past, many EU members, in particular its Nordic neighbours, had stressed the role of information. As the central body responsible for co-ordinating the negotiations process, the Foreign Ministry had worked hard to disseminate information on a regular basis. On internal preparations for accession the Foreign Minister said that the accession negotiations were at the top of Estonia's foreign policy agenda. However, they were not the only aspects of Estonia's integration. Estonia was proceeding along a number of connected routes towards the goal of accession including

15 implementation of the Europe Agreement, the Accession Partnerships, and participation in the Accession Process. Moreover, Estonia's integration into the EU was no longer strictly a foreign policy issue. In the coming years the merging of foreign and domestic politics would deepen even further. The accession to the EU depended on the success of the domestic reforms rather than on any timetable agreed on in Brussels. Estonia had its National Plan for the Adoption of the Acquis (or NPAA). This document was approved by the Estonian government and forwarded to the European Commission in spring 1998. It contained detailed plans on what Estonia would do to meet the acquis. Harmonisation should continue to receive full attention. At the same time, it had to be ensured that legislation was implemented effectively. Estonia had moved rapidly along the road of EU integration, but as it came closer to full membership it had to be prepared to encounter some legal, technical and administrative challenges. Mr Maelk said Estonia should be ready to make adjustments on the national level in order to manage in the European system. His country would continue to look to the European Union for support and assistance in this respect. From that point of view, regular reports from the Commission on Estonia's progress toward accession were regarded as useful documents for showing the areas where efforts had to be increased. On Estonia´s vision of the European Union Mr Maelk said there was no doubt that the EU enlargement would play an important part in defining a vision of the new Europe. For decades, the European Union had functioned as a vehicle of peace, stability and prosperity in Europe. But if the EU was to continue to play this part into the 21st century, it had to change and adapt to new circumstances. As an applicant country, Estonia is obviously interested in the EU's successful reforms. Nevertheless, widening and deepening could, and should, proceed in parallel. The aim should be to sustain the momentum necessary for a successful enlargement until the last candidate accedes to the Union. A critical mass of goodwill should be maintained in order to keep the enlargement process dynamic and credible. Enlargement was in the interest of applicants and members alike. It had been a good stimulus for applicant countries to continue reforms and it had been the driving force behind change in the EU. A failure to move the enlargement forward would interrupt both reform processes. Estonia would like to see other candidates, in particular its southern neighbours Latvia and Lithuania, join the negotiations process as soon as possible. For Estonia, European integration was not a goal in and of itself, but a means of meeting national objectives of building a state based on European traditions and values, developing a functioning market economy, consolidating democracy and creating a stable and prosperous society. Estonia's vision of the European Union was closely linked to this chosen path of development.

Recent global economic problems did highlight the benefits of economic integration with the EU and underlined the importance of the EU's secure and stable markets for Estonia. As a nation of 1.5 million the limits of the domestic market were recognised and the opportunity to compete in a larger market of a half-billion customers were welcomed. Through deeper engagement with the EU on the political level, the Estonian voice in regional and European issues had been

16 strengthened. Through EU membership the scope of involvement in the international community would broaden even further. Estonia hopes to gain equal access to European markets and full representation in European decision-making structures. Moreover the country is interested in joining a European Union that is citizen-friendly, cohesive and strong; in which the interests of both small and large member states are represented; in which national interests are taken into account; and that is effective both internally and on the international stage. In Estonia, public discussion on the European Union had focused mostly on the issue of membership; the question under debate had been whether or not to join. The real issue at stake was what kind of European Union does Estonia actually wants to join. The concerns centred mostly on the issue of national identity; would the Estonian national identity come under threat; would the Estonians lose their national character. The practical experience of small countries, however, suggested that this would not be the case. In an enlarged EU Estonians would be able to maintain their national character and stand for national interests. As a future member Estonia is determined to follow the EU´s internal debate. This was important to formulate its own vision of the Union and someday participate in defining a vision for the European Union for the 21 century.

Speech held by Raul Mae1k, Minister of Foreign Affairs, for the Government of the Republic at Riigikogu, 26 November 1998.

On behalf of the Government, the Foreign Minister presented a report on Estonia's main foreign policy priorities on 26 November 1998. Concerning enlargement he said EU membership was important for a small European state like Estonia. Membership would allow Estonia directly to influence the Union's internal processes. These processes would have an impact on Estonia, even if the country remained outside of the Union. 56 percent of Estonia's total foreign trade was already with the European Union. In comparison, trade with the CIS countries accounted for only 15 percent. The difficulties Estonia was currently experiencing in certain economic sectors demonstrated the vulnerability of small countries in today's globalising marketplace. The acquis screening process began on 31 March and accession negotiations were opened at ministerial level on the concrete conditions for accession to the first seven chapters on 10 November. The start of substantive negotiations in parallel with the screening process was a significant step in the accession process. Speaking as the official head of the negotiations delegation, Mr Maelk confirmed that the Estonian delegation and the Foreign Ministry have worked intensively to ensure that Estonia does not hold up the process. Position papers for the first twelve screened chapters were completed last summer. These positions were discussed and approved by the Government at the end of August and were officially presented to the European Union in early September. Estonia had reached the halfway point in the analytical comparison of Estonian legislation and institutions with the European Union's. The final bilateral screening meeting was scheduled for spring 1999.

1 January 2003 was set as a rough guide. Meeting this deadline not only depended on the actual negotiations, but on the ability to resolve problems that had appeared

17 during the screening process and the willingness to keep promises as outlined in Estonia's position papers. Estonia's rapid accession was dependent on domestic reforms. Yet a great deal was also determined by the pace of reforms in the EU itself and dependent on the EU's readiness for enlargement and the existence of a critical mass of goodwill in support of enlargement. The European Union's enlargement and its reform had to proceed in parallel. Estonia's progress was confirmed by the report released by the European Commission on 4 November. Nevertheless, the report also outlines the work that still remained to be done. The Riigikogu, as the country's legislative assembly, had a key role to play in this process. The Riigikogu's European Affairs Committee had made a significant contribution to the European integration process, which should be acknowledged. Estonia supported the rapid inclusion of Latvia and Lithuania into the group of countries engaged in accession negotiations with the European Union.

Speech held by Raul Maelk, Minister of Foreign Affairs, at the French Institute of Foreign Relations, 17 February 1999, Paris.

The Minister of Foreign Affairs spoke on the challenges and priorities of Estonia´s foreign policy that the nation would have to face in the coming years. The Estonian-Russian relations were also part of his speech. Integration with Europe's most important organisations - the EU and NATO - was helping to define an international profile for Estonia. Over the past few years, EU integration had been at the top of Estonia's foreign policy agenda. Estonia had enjoyed the status of an associate member since 1995 and was currently one of the so-called 3+1' countries negotiating EU membership. While the EU continued to be a priority for Estonia, in the past year, Estonia`s focus had shifted from political issues to more practical ones. Estonian diplomats were spending less time on political lobbying in EU capitals and more on basic issues such as how to transpose eighty thousand pages of acquis and master EU terminology in time for accession. Today, there were two central priorities in the field of EU integration. First, bringing accession negotiations to a successful conclusion. Substantive negotiations were opened in November and 'screening' will be completed in July. Estonia had already submitted position papers on 15 out of 31 negotiating chapters. The second priority was to prepare as comprehensively as possible for accession to the Union. The objective was to implement as much of the acquis as possible and be ready for full membership by 1 January 2003. The European Commission's progress report of last November concluded that Estonia had already made substantial progress towards meeting this goal. Estonia was on the right track but much work still needed to be done. Tackling numerous legal, technical and administrative challenges on the road to full membership would certainly keep Estonia occupied well into the next century. Mr Maelk said that Estonia negotiated its accession in Brussels and at the same time prepared for membership at home. The Foreign Minister said that was a test of the administrative capacity and of the ability to function as a member state in the complex EU system. The burden of preparing for EU membership rested mainly on the candidate country, but the actual date of accession to the Union is not solely up to Estonia. The incumbent Union members also had to prepare for enlargement.

18 The last intergovernmental conference had only proved a partial solution to the institutional dilemma posed by enlargement. Reform would have to continue in a number of key areas. These included among others more efficient decision-making procedures in the Council.

Mr Maelk deemed it natural that the Agenda 2000 was a special priority for the Union and, in particular, for the German Presidency. Nevertheless the debate on Agenda 2000 should not lead to a slowdown in the process of enlargement. From the Estonian vantagepoint, these two activities were like walking and talking - something any healthy person, or a healthy community, should be able to do at the same time. It was not an either/or choice. In fact, if done right they would not only be compatible but mutually reinforcing. On the eve of the 21st century, there was a collective desire to leave the past behind and look for a new face for Europe. There was no doubt that EU enlargement, if successful, would play an important part in defining a vision of the new, stronger Europe. For this, enlargement had to remain high on the EU agenda. The prospect of membership clearly precipitated reform within the applicant countries. Enlargement was a vital part of the efforts to strengthen the Union. Therefore, the collective aim should be to sustain the critical mass of political support necessary for a successful enlargement until the last applicant accedes to the Union. Mr Maelk concluded, the EU had a proven record in enabling a country to preserve its uniqueness. Through the EU Estonia hopes to foster and develop its national identity in the European setting.

Statement by H.E. , President of Estonia, at the "Morning Newsmaker" News Conference, 15 March 1999, National Press Club in Washington, D.C.

The President said Estonia had two big foreign policy priorities, membership of NATO and membership of the EU. Concerning negotiations with the EU he said that for Estonia the European Union and NATO were two sides of the same coin. They stood for the same values, the same principles and the same ideals. That was, why Estonia like the other Central European countries aspiring to NATO membership, also wished to become a member of the European Union. On this front Estonia had so far got further than with NATO, as negotiations for full membership were well under way. Estonia's economic progress, which had made it into one of the best-performing countries in Central Europe, was the catalyst for the European Union's decision to initiate accession negotiations with this country. Negotiations were running well and Estonia's internal preparations for membership were well on track. Domestic work was planned in a way that would allow accession to the EU on 1 January 2003. Becoming a member of the European Union would give Estonia a seat at the table and the President expressed his hope that the accession process would provide an additional impetus also to Estonia's NATO aspirations.

19 H.E. Lennart Meri, President of Estonia, held a speech at the conference “Post Crisis Emerging Markets: Investment opportunities in Europe and Asia", 23 April 1999, New York.

In his speech that focussed mainly on the Estonian economic system the President also spoke about the Enlargement process. He said the future for Estonia lay with the European Union. Economic ties with Europe were getting closer every year. Estonia followed European guidelines in the legislative process. Leading partners were the Nordic countries. One example of how the integration of Estonia with the Nordic countries was gathering speed was mentioned: many and Swedes - as well as other neighbours - took the trip to Estonia as easily as to any town in their home countries. Every year, Estonia was visited by 5 times more visitors than there are Estonians. According to Mr Meri Estonia was in most aspects ready to join the EU immediately.

The former dependence on the Russian market had been decreasing rapidly. After seven years of change, Russia now accounted for only about 10 per cent of Estonian foreign trade, other CIS countries for another 3,5 per cent. The European Union, on the other hand, absorbed 64 per cent of exports and delivers 56 per cent of Estonian imports. These numbers used to be the other way around. In the President's opinion Estonia´s success reflected the fastest economic turnaround anywhere in the region.

Remarks by Toomas Hendrik Ilves, Minister of Foreign Affairs, at the Heritage Foundation, 23 April 1999, Washington, D.C.: The Baltic Quest for Security: Euro-Atlantic Integration.

Mr lives spoke mainly about NATO and security in Northern Europe, but also summed up Estonia's steps and her position in the Enlargement process. He said that Estonia's focus has shifted from the global political issue (how far Estonia had advanced and whether or not she should be invited to the first round of negotiations) to practical ones. Estonian diplomats were not concerned with political lobbying in EU capitals; rather, officials from other ministries travelled to Brussels to deal with issues such as fishing quotas in Lake Peipus, and deficiencies in Phyto-sanitary control systems, in short: how to transpose eighty thousand pages of EU legislation or 'acquis.' The Minister said that there were two central priorities in the field of EU integration. First, to bring accession negotiations to a successful conclusion. Second, to prepare for accession to the Union. These two priorities were worked on in parallel, meaning a double effort for the negotiators as well as a double burden on the Estonian civil service. Mr Ilves said the bulk of the work was domestic; tackling the numerous legal, technical and administrative challenges on the road to full membership was to keep Estonian occupied well into the next century. The Minister was confident that efforts on the Estonian side would be well worth while. Apart from the obvious economic benefits, EU membership would give his country a voice in Europe and its evolving foreign and security policy.

20 Statement by Toomas Hendrik Ilves, Minister of Foreign Affairs of Estonia, at the meeting of Nordic-Baltic Foreign Ministers with Russia, 15 May 1999, St. Petersburg.

Mr Ilves spoke on EU enlargement and its impacts on regional co-operation. Since 1991, the European Union had played an instrumental role in promoting stability and prosperity in the region. The Union had built up close links and signed agreements with all countries around the Baltic Sea. The EU was an active member of the Council of Baltic Sea States and had provided substantial financial and technical assistance. In the coming years, the EU would become an even greater actor in Northern Europe. Soon Estonia, Latvia, Lithuania and Poland would join the European Union doubling the number of EU members in the region and extending its external border further to the South. This would not be the Baltic Sea region's first enlargement. In 1995, the rapid accession of and to the Union could be witnessed. Trade and cross-border co-operation in the Baltic Sea region had since developed rapidly. The Union had started to focus more on Northern Europe and has launched a series of new initiatives to develop relations with countries in the region. A good example was the Northern Dimension. Now that the EU enlargement process was well underway, it was possible to identify some of its short-term effects on the region. Mr Ilves said he believed that EU enlargement would positively influence the region. For some years, the prospect of EU membership had encouraged rapid development and political and economic reform in many countries, including Estonia. The efforts made by associated countries in the field of EU integration had led to an increase in overall prosperity and stability in the entire region. All states around the Baltic rim, including those that did not seek to join the EU, benefited from this. EU enlargement also promoted regional co-operation by providing new opportunities, including financial ones, for developing and implementing co-operation projects with neighbours. Existing regional networks would diversify as more countries join the EU and seek to develop relations with their neighbours and partners. The Minister mentioned three specific areas where the EU framework would have a positive impact on regional co-operation.

Borders Well-managed borders were a prerequisite for EU membership and overall stability in the region. EU enlargement would lead to the implementation of uniform border-crossing procedures and common requirements for border crossing by most countries in the region. The establishment of a common framework in an enlarged EU would benefit the entire region and foster wider co-operation. The Finnish-Russian border was a good example. Infrastructure and customs co-operation on this border was well developed and regular. It was also an exemplary model for Estonia for the development of cross-border co-operation between an EU and a non-EU state in a visa-regime situation.

21 Economic co-operation The Minister referred to the Baltic Sea region's great economic potential. More efforts, however, should be made to make full use of this potential. After eight years of reform in the eastern littoral of the Baltic Sea, discrepancies in legislation, business practices and market orientation had been significantly reduced. Political, economic and administrative obstacles to trade and investment still existed. Application of the EU's uniform economic framework is the best way to remove these obstacles. Trade, in particular, was an area where problems could easily arise as states tried to protect their domestic market. Estonia had experienced these types of problems with most of its neighbours. The EU was a useful framework for discussing these issues. The difficulties in Estonia's free trade agreements with Latvia and Lithuania have been overcome and they were now being fully implemented.

Environment The environment was one of the regional priorities. Work was being done under HELCOM to identify the region's environmentally dangerous hot spots and implement projects within the Baltic Sea Joint Comprehensive Environmental Action Plan framework. A good example was construction of sewage and wastewater treatment facilities in St. Petersburg. Many projects in this field, however, lacked the necessary funding and expertise. EU Enlargement would encourage the development and the implementation of these projects.

22 CYPRUS13

On March 12th 1998 the Cypriot President Mr. Clerides met Mr. Robin Cook, the Secretary of State for Foreign and Commonwealth Affairs of the .

During this meeting the Cypriot President gave a statement relating to Turkish Cypriot participation in the accession negotiations. He referred to Paragraph 28 of the Luxembourg Conclusion which says, inter alia, that the accession of should benefit all communities and help bring about civil peace and reconciliation and he offered the Turkish Cypriot Community to nominate representatives to be included as full members of the Cypriot team to the negotiating process for acceding the European Union.

Mr. Clerides is convinced that Cyprus is faced with a historic challenge, because he believes that the forthcoming enlargement of the European Union will shape the future of Europe and enormously benefit both communities in Cyprus.

At the Third EU-Cyprus Intergovernmental Conference held in Brussels on April 19th 1999, the Chief Negotiator of the Republic of Cyprus, Mr. George Vassiliou, presented Cyprus´ progress regarding harmonisation.

In his speech Mr. Vassiliou expressed Cyprus´ appreciation at receiving a very positive message from the leaders of the fifteen Member States during the Berlin Summit. Moreover, he stated that Cyprus would be ready for accession even earlier than planned, i.e. by 1st January 2003, having withdrawn its request for an extension in liberalising the telecommunications sector. A new harmonisation programme has been prepared and will be adhered to. A similar legislative programme based on the EU`s requirements for the postal services has also been prepared. Furthermore, the Government is in the final stages of preparing the new statistic law which will be in full accordance with EU law and includes plans for the setting up of a Statistical Advisory Council. Mr. Vassiliou expressed gratitude for the closure of the chapter on Statistics and accepted his country’s need to expand on several issues regarding Consumer and Health Protection, although Cyprus has already enacted the legislation on product safety and is in all other concerns such as liability, consumer credit, distant selling and time-sharing ahead of the indicated time envisaged for the amendment of the relevant legislation. Finally, with regard to Fisheries, the Chief Negotiator reconfirmed that Cyprus is willing to adopt the acquis and to accept the Community’s exclusive competence over Fisheries. He did not foresee any problems in conforming to the acquis and was confident in its own industry conforming to EU practices. Finally Mr. Vassiliou had no doubts that Cyprus will be ready for accession to the European Union on time.

13 The original documents derive from the sources: http://www.pio.goc.cy http://www.cyprus-eu.org.cy Cypriot Ministry of Foreign Affairs. 23 Address by the Cypriot Minister of Foreign Affairs Mr. Ioannis Kasoulides on “Stability and Prosperity in the Eastern Mediterranean: Prospects for Co-operation Between the European Union, Cyprus and the Middle East” in Nicosia on May 9th 1999.

Referring to the Balkan Wars, the Minister of Foreign Affairs stressed that it is imperative to divert attention from conflict and concentrate rather on peace, stability and prosperity in the area around them, and indeed in Cyprus as well. The country has a geographical and historical potential in contributing to the peace and stability of the Middle East as well as a European vocation. Mr. Kasoulides reaffirmed Cyprus´ determination to become a full member of the European Union, and its accession would create a valuable link between Europe and the Middle East and break down many cultural barriers.

On May 18th 1999, Mr. Ioannis Kasoulides, Minister of Foreign Affairs of the Republic if Cyprus, held a lecture at the Swedish Institute of International Affairs in .

In Mr. Kasoulides eyes today’s Europe represents a mosaic of nation-states with a common tradition of democracy and political pluralism that entails both a deepening and a broadening. In this context enlargement should be looked at, namely as part of the process for Europe’s self- fulfilment until it realises its historical vocation. The Minister is convinced that the accession to the Union of Cyprus, and the countries of Central and Eastern Europe will strengthen and enrich Europe while providing the necessary momentum towards closer integration within the Union itself. An enlarged and integrated Union, confident in itself, will assume its rightful place in the global scene not only as a political actor, but also as an economic power, and a cultural force. Europe should reach out to its neighbours in the east and the south and contribute towards peace, stability and prosperity, not only inside, but also outside its borders. The Minister of Foreign Affairs stated his opinion that the process of enlargement should move forward at a rapid pace and remain open to all countries with a European vocation, including Turkey, provided they fulfil the demanded criteria of the acquis. Cyprus seems to him to be the most prepared candidate nation in terms of meeting these criteria and as well as enhancing EU´s culture, stability and prosperity, Cyprus could also act strategically as a stronghold in the South. As an Euro-Mediterranean country, Cyprus could act as a link to the important areas of , the Middle East and even the Orient. The island could play the dual role of a springboard for business and people and a shield from the threats of terrorism and narcotics. Mr. Kasoulides stated that Cypriot accession is politically as well as economically desirable, as it would stabilise the Eastern Mediterranean and as well serve as a catalyst towards resolving the Cyprus problem. In order to combat Turkish intransigence over a solution, the EU should offer Cyprus a clear path to membership. Only then would Turkey reconsider its opposition to Cypriot accession and gain the necessary impetus to work towards co-operation. If the EU were to bow to Turkish opposition, the long deadlock over the island would continue. Although the Cyprus government should wish to see a reunited island enter the Union, it does not see any reason why accession negotiations cannot continue to run alongside efforts to solve the internal problem. The Minister claimed that the Cypriot problem would always be an issue for the EU whether accession took place or not, being a direct problem for two member states, Greece and the United Kingdom. Dwelling on the political problem instead of the accession process would only feed the Turkish desire to maintain the status quo. The solution to the Cyprus problem will lift

24 one serious obstacle in the improvement of the EU-Turkish relations and the Minister believes that there could be progress to this problem before the next stage of enlargement. There is an open invitation to the Turkish Cypriot community to nominate representatives to the team which is negotiating the terms of accession of Cyprus to the Union and it would be of significant benefit to the Turkish Cypriots to follow this invitation. According to Mr. Kasoulides, the majority of that community, if not the government, is in favour of joining the EU and if the government of Mr. Denktash could enter into the negotiations in the same spirit an agreement would finally be possible.

Address by the Chief Negotiator Mr. George Vassiliou at the Fourth EU-Cyprus Intergovernmental Conference in Brussels on May 19th 1999.

Mr. Vassiliou regarded the conclusion of the negotiations on Agenda 2000 as a new impetus to the accession process. Cyprus looks forward to working closely with the Commission and the Member States in order to achieve progress on the remaining, more complex chapters. The Cypriot Chief negotiator expressed his satisfaction at the state of accession negotiations and on the closing of the chapters on Consumer and Health Protection, Customs Union and External Trade Relations that will, in his opinion, soon be followed by the closing of the Telecommunications chapter. Cyprus was ready to do its utmost to continue the success of its EU harmonisation programme and would strive to conclude those chapters still remaining open, which are the following: As regards Fisheries, it is Cyprus` intention to co-operate with those Member States who raised some important questions to address in a satisfactory manner all these issues. In relation to Accounting Law, the country accepted the position concerning the need to make available to the general public the accounts of every company, with the exception of the special treatment of shipping company accounts. Beyond that, Cyprus fully understood the importance attributed to the protection of Intellectual Property Rights, relevant border controls, training and the need both for strengthening the capacity of the Institutions dealing with copyrights and enhancing co-operation. As far as trade marks are concerned, there has in the past very rarely been any conflict between community and Cypriot trade marks and it is the country’s intention to implement the relevant acquis in a full and satisfactory manner, as well as acceding to the Lugano Convention. Regarding Competition law, Cyprus has to furnish further information before this chapter can be closed, but Mr. Vassiliou stressed the role of the Commission for the Protection of Competition established in 1990 and the current initiation of new legislation. The Chief Negotiator concluded by reaffirming Cyprus`commitment to complying fully with the EU`s monitoring requirements.

Due to a political rally, held on June 7th 1999 in Nicosia, The Deputy Government Spokesmen Mr. Arotis gave a statement relating to the enlargement of the European Union.

The Government Spokesmen warned the political parties not to give anyone reason to doubt Cyprus` readiness to undertake all its responsibilities and obligations on becoming a full member of the European Union, which is of vital interest to the Republic of Cyprus and its people.

25 Above all, Mr. Arotis stressed that it must not be forgotten that Cyprus needs the Common Foreign and Security Policy the European Union is trying to formulate, and therefore anti-war protests could send a negative message to the EU Member States.

At the third Intergovernmental Conference for Cyprus`Accession to the European Union at Ministerial Level, the Cypriot Minister of Foreign Affairs Mr. Ioannis Kasoulides held a speech on June 21st 1999 in Luxembourg.

First of all, the Minister of Foreign Affairs Mr. Kasoulides expressed his full satisfaction with the German Presidency and the results of the agreement reached in the Berlin European Council on the Agenda 2000. These have brought the finances of the Union into order, thus aiding the enlargement process. In particular the Cypriot government highly appreciated the Union’s declared intention to render Cyprus the financial assistance that would supplement their efforts in the pre-accession strategy towards alignment with the acquis. The discussion on institutional reforms in the Union have further cleared the way towards the next enlargement, enhancing the prospects for the appropriate acceleration of the accession negotiations process. The Republic of Cyprus accepts totally that it is a duty of the candidate countries to play their part in full and redouble their efforts in order to be ready for accession and to complete effectively and on time. Therefore the Government of Cyprus has entrusted the former president of the Republic of Cyprus, Mr. George Vassiliou, the task of preparation and co-ordination of all the Government departments, the and the civil society for the transposition and implementation of the acquis communautaire and the necessary reforms, as well as the responsibility for the negotiations between Cyprus and the EU. In relation to the Common European Policy of Security and Defence (CEPSD), Cyprus supports the two decisions already taken to incorporate functions of the WEU in the EU`s framework and to create the new posts of a Secretary-General of the Council and High Representative for the CEPSD and a Deputy Secretary-General of the Council. To keep the positive momentum of the whole enlargement process, Cyprus affirmed the effective implementation and enforcement of the acquis through the setting up of appropriate institutions and mechanisms and realised the importance of monitoring the degree of preparedness of the candidate countries. The country has prepared detailed harmonisation programmes for all screening chapters and a computerised monitoring system. It can thus already welcome the fact that the EU and Cyprus agree that the five chapters of Consumers and Health Protection (chapter 23), Costums Union (chapter 25), External Relations (chapter 26), Statistics (chapter 12) and Telecommunications and Information Technologies (chapter 19) require no further negotiation. Cyprus appreciated the high level of co-operation that made possible one year’s transitional period in the telecommunications chapter, which should soon be meeting the European requests such as the other not yet closed chapters as Free Movement of Goods (chapter 1), Company Law (chapter 5), Competition (chapter 6) and Fisheries (chapter 8). Beyond that, the Cyprus Government wishes to integrate the Turkish Cypriot Community in preparing Cyprus for accession and to enjoy the benefits of membership with all other Cypriots. Mr. Kasoulides ensured the audience that his government will do all possible to give peace and reconciliation in Cyprus another chance for the benefit of all the people of Cyprus and he asked the European Union and its Member-States to support these efforts. The Minister of Foreign Affairs criticised Turkey’s intransigence in the negotiations but vowed that she should not be

26 allowed to dictate to the European Union or hinder Greek Cyprus` chances of accession, for Cyprus is a part of Europe and aims at becoming a full member of the European Union. Turkey in his opinion will one day, as well become part of Europe. As regards the changing role of the European Union, the Minister painted a picture of the EU as a global force rather than just a political antity. Cyprus would therefore expect the EU to take a more active role in solving problems outside the boundaries of its member states. If the Union were to become involved in the Middle East peace process, for example, it would prove that Europe were a trustworthy partner of the Eastern Mediterranean and the Middle East. Cyprus wants to be included in such a vision for a variety of reasons, the most salient of which has to do with solving its own national problem.

27 LATVIA*

On October 20th 1998, the Minister of Foreign Affairs of Latvia, Dr. Valdis Birkavs, gave a speech at an International Conference on "Economic Development in the " in Tallin.

The Foreign Minister Dr. Valdis Birkavs stated that Latvia was making good progress in its preparations for EU membership. As signals of this, he mentioned the referendum of October 3rd, when voters in Latvia decided to ease the nationalisation criteria for non-citizens, and the admission of Latvia to the WTO. The accession to the WTO is seen by the Foreign Minister as part of a general effort of integration into Euro-Atlantic structures. The three are preparing for membership in organisations and alliances that are networked into the world order - the European Union, NATO and the WTO. Since the restoration of independence, the Baltic States have pursued a comprehensive reform package to establish an economic system based on the principles of market economy. Mr. Birkavs indicated that the progress in creating economic conditions to cope with the pressure of the international market was the right basis for further integration into the European Union as well as the global economic system. He believes that the development of the Baltic market will be important segment of the strategy for development of Europe as whole and for the flow of Western values of democracy and rule of law into Russia. The Foreign Minister asserted that the European Union is undoubtedly the driving economic force in the Baltic Sea region. The launch of the Euro is seen to open new perspectives for both member states and accession states. Latvia continues to believe that the EU member states will not slow the speed of enlargement to the Baltic States and that the European Council in Vienna at the end of 1998 will positively evaluate Latvia's progress since July 1997.

On the 26th November 1998, Dr. Valdis Birkavs, the Foreign Minister of Latvia gave a speech on "Baltic Security" on the 13th Baltic Assembly Session in Tallin.

The Foreign Minister declared, in Hegel's words, that only lesson one learns from history is that people learn nothing from their history. For that reason he sees that a sense of common experience, common values is important because it makes people discuss and evaluate the security environment of the Baltic states, and makes them develop joint approaches and work on joint projects. Mr. Birkavs stated that Europe, and Latvia as part of it, is building its new security architecture, and Latvia has to be integral part of it. This new security order will be built around the enlarged NATO and EU, and involve close co-operation of these organisations with Russia. The enlargement processes of the EU and NATO, regional co-operation and relations with Russia are four priorities of the newly elected Latvian government's foreign policy.

------* Source: http://www.mfa.gov.lv .

28 The Minister pointed out that participation in NATO is the only mechanism to ensure that his country's security is tied with that of other European countries through hard-core security guarantees. He does not need to explain that Latvia needs NATO membership, but wanted to emphasise that Latvia can play a positive, contributing role in the NATO context and achieve membership.

Latvia expects that the Alliance clearly and explicitly recognise that NATO's goals are the same as those of the Baltic States - to make sure that Estonia, Latvia and Lithuania are qualified members of the Alliance. The Minister insisted that the Washington Summit next year has to bring the enlargement process forward, and has to reject any claims of Russia to draw "red lines": the question of the next enlargement of NATO has to be the question about the Baltic states. As for the European Union, Mr. Birkavs explained that although the EU is not a traditional security organisation and lacks the kind of advanced, integrated military capability of NATO, the EU contributes to prosperity and security of its members and even associated countries through its particular economic mechanisms. The Minister stated that the Progress Report of the European Commission shows that Latvia has prepared itself well for the EU accession talks. When exactly they will start will depend on the EU, he said, but Latvia can be satisfied with the achieved progress, and his government is confident that this progress will bear fruit. The important reforms accomplished by the Baltic States in developing free, democratic societies and market economies are values in themselves. Mr. Birkavs further underlined that it is important to understand that in coming closer to EU membership, Latvia is also approaching NATO membership. This is because despite the fact that enlargement of EU and NATO are two different processes that are developing according to different mechanics, the values shared by EU and NATO members do not differ. The recognition by the European Commission of the political readiness of Baltic States means that political “criteria" are also met for the NATO membership said the Minister. He went on to say that the EU's recent initiative of the Northern Dimension develops a more active EU policy in the northern part of Europe to promote stability, security and economic growth. Latvia believes that it must be part of this initiative to the fullest possible extent and to contribute to shaping its development. Enhanced co-operation within Baltic Sea area is an element that strengthens stability in the region, and helps Latvia prepare for EU and NATO membership, he added. The future of the Baltic region at first will depend on Baltic countries themselves, not on the EU and NATO.

On the 5th December 1998, the Latvian Foreign Minister, Dr. Valdis Birkavs, held a speech on the theme "How Secure are the Baltic States" at a conference in Riga organised by the Konrad Adenauer Foundation and the Latvian Institute of International Affairs.

The Foreign Minister discussed important developments in security thinking such as the way terms like "co-operative security", "comprehensive security" and indivisibility of security" have become an indispensable part of vocabulary and thinking, while at the same time the old concepts and calculations of the balance of power have not completely lost their influence. Mr. Birkavs insisted that the

29 ultimate solution to the military security of the Baltic states is full-fledged membership in the North Atlantic Alliance and underlined the fact that last year's NATO Madrid Summit effectively recognised Baltic states as candidate countries. In areas of political and economic security, the Minister emphasised the continued importance of integration into the EU as the other important priority and goal of Latvia's foreign policy. Latvia also sees integration as its main instrument and engine in addressing challenges in these areas. For Latvia, the EU is not about military security, but it is seen as effective in dealing with threats to social and economic stability, threats posed by organised crime, and threats to the well being of people. In Mr. Birkavs' view, the Common Foreign and Security Policy will enable Latvia to play its part in the issues of European importance. The Minister sees political and economic progress achieved by Latvia and the other Baltic States since restoration of independence as impressive. Overcoming the legacy of the former totalitarian system and developing a new model of society have been successful and Latvia is now a stable democracy, a functioning market economy. The EU is Latvia's largest trade partner and its share in foreign trade is growing. Foreign Direct Investment was the highest in the region last year, GDP growth is also among the highest in the region, and inflation has dropped to below 6%. The maturity of Latvia's economy is exemplified by the fact that the crisis in Russia, although it has had limited influence, has not affected Latvia more than other Central and Eastern European countries. Mr. Birkavs underlined that the European Commission's Progress Report shows that Latvia has achieved outstanding progress in fulfilling economic and political criteria for EU membership, and in some areas has even exceeded short-term and medium-term priorities as defined by the Accession Partnership. In some respects Latvia fulfils the Copenhagen criteria better than some of the countries that were last year invited to start accession talks. Latvia believes that these accomplishments cannot be dismissed by EU member states and that a clear decision must come for the accession talks to begin. The Foreign Minister assessed the importance of the latest changes to the Law on Citizenship, approved by referendum, in having demonstrated the desire for integration - both of Latvian society, as wells as Latvia's integration in the European and Transatlantic institutions. EU and NATO membership are goals that the three Baltic states have set for themselves, said the Minister, and Baltic co-operation as well as the skills of consensus-building will all be needed once the states become members of NATO and the EU. Enhanced co-operation within the Baltic Sea area helps Latvia to prepare for membership. It strengthens stability, fosters the objectives of these organisations in the region and develops the image of the Baltic Sea as a place for prosperity and co-operation. The co-operation among Baltic and Nordic states has become an essential feature of the region. The involvement of the EU and NATO countries in regional co-operation in the Baltic Sea area reflects understanding that the Baltic states are part of indivisible European and transatlantic security picture. Mr Birkavs hoped that this involvement would grow and saw as a positive sign the way that Germany, as an advocate of the Baltic States, has been taking an active role in the region. The Minister also emphasised the importance of the Northern Dimension initiative which he interprets as aiming at developing a more active EU policy in the Baltic

30 region in order to promote stability, security and economic growth. Latvia wants to be a part of this initiative and to contribute to its development. In all of his country´s foreign policy aims, proclaimed Mr. Birkavs, the support and involvement of all Western partners is indispensable for Latvia.

On the 22nd February 1999, the Latvian Minister of Foreign Affairs, Dr. Valdis Birkavs, spoke at the Second Meeting of the Latvia - EU Association Council in Luxembourg.

The Foreign Minister underlined that Latvia's progress has been assessed in the Regular Report and that the Commission has found that matters of EU integration are consistently assigned the highest priority in his country. Latvia is preparing for membership not just with words but with practical deeds. Mr. Birkavs emphasised that the accomplishments thus far have been taken together of Latvia´s own volition but also with a helping hand, and in dialogue with the European Union. Latvia produces targeted, co-ordinated work with the instruments at its disposal - the Europe Agreement, Accession Partnership, the Regular Report, and the screening process. The Minister welcomed the Commission's decision to bring the Accession Partnership closer into synergy with the Association Agreement. Achieving synergy between all the instruments, which facilitate Latvia´s accession process was estimated by him to enhance effectiveness of the ongoing work. The Minister explained that last autumn, the Commission's Regular Report defined new tasks for Latvia's EU integration. In effect, the Commission's avis - Agenda 2000 - was thus updated. Now Latvia is renewing the National Programme in close co-operation with the Commission, and within the framework of the Europe Agreement. The Minister suggested that a fresh version of the Accession Partnership would be quite helpful at this point. He also wished that the new Accession Partnership would be more of a real partnership in the sense that Latvia could contribute more in identifying new priorities and tasks. The Latvian government has prepared and approved an Action Plan for Solving Shortcomings Outlined in the Regular Report. This Plan shows how a co-ordinated implementation of tasks identified in the Regular Report will take place. The Action Plan is being integrated into the updated National Programme; this Programme will assess the status of Latvia's preparation for membership in every sector and the consolidation of achieved reforms. The Programme will include budget estimates so that EU assistance may be targeted in a manner, which will complement national budget allocations. The Accession Partnership forms the core of Latvia's EU accession strategy. The Commission, in the Regular Report, states that "Latvia has addressed in a satisfactory manner most of the short term Accession Priorities." The Minister went on to highlight some of the achievements of his country in this respect. Latvia now fully meets the Copenhagen political criteria. Since implementation of the amendments to the Citizenship Law in November 1998, Latvia is also in full correspondence with OSCE recommendations concerning social integration. The government has approved the set of regulations, which specify implementation mechanisms for the updated Citizenship Law. Latvia has implemented the short-term and medium-term accession priorities in the field of naturalisation: the naturalisation procedure has been simplified and improved and the process has

31 accelerated. During the last five months, the number of applications for naturalisation has increased 130% when compared to first eight months of 1998. In fulfilling the short-term economic priorities, last spring, the government adopted a Medium-term Economic Strategy. The Joint Assessment on Economic Policy Priorities was signed by the European Commission and the Latvian Government on February 17,h this year. Mr. Birkavs assured that his country continues to implement the reform agenda in a dependable manner. Structural reforms have led to increased capacity to bear the impact of EU market forces; the privatisation process is almost complete; the environment conducive for accelerated enterprise restructuring. The Minister stated the end of 1999 anticipates harmonisation with the acquis on the free movement of goods. Considerable progress has already been achieved in the areas of quality control, intellectual property rights, and competition. In his view, ecology is another area where advances are needed and where advancement is finally becoming apparent. Progress has been made in the past year toward adopting legislation in the field of environmental protection with a view to aligning legislation with the acquis including the environmental impact assessment directive, the access to environmental information directive, the drinking water, and most of the radiation protection directives. Mr. Birkavs contended that Latvia is on the road to full compliance with the EU accession criteria. All short term Accession Partnership priorities are accomplished and work on medium-term priorities is underway and building up steam. In his closing remarks, the Minister proclaimed that an objective evaluation of Latvia´s preparedness to assume the obligations of an EU member state supports the expectation that accession negotiations will be initiated this year.

On the 26th March 1999, the Latvian Foreign Minister, Dr. Valdis Birkavs, held a speech on “EU Enlargement and the Northern Dimension” in the Representative Office of the European Commission in Bonn.

With the spectacular resignation of the European Commission in the background, the Foreign Minister hoped that the nomination of a strong leader in the Berlin summit had established the Commission on firmer footing. He stated his country´s concern about the impact of the war with on Russian-European relations and on bilateral relations with Russia. In the Latvian government, the Minister assured every effort would be made to keep the level of rhetoric to a minimum. Along with membership in the EU and NATO, good bilateral relations with Russia are a top priority for Latvia, and they do not want to see Russia recoiling into some new form of isolation. The war will no doubt affect the balance in Europe, and in Mr. Birkavs' opinion, the effects of NATO's action will be far-reaching and positive for the Baltic States. What is important is that the countries of Europe be cohesive in the face of such challenges. The Foreign Minister's speech centred on Latvia's European integration efforts, Latvia's progress in those efforts, and regional co-operation. His analysis of the situation in the Balkans was that it is creating a southward drift in attention. However, he sees that anchoring the Baltic States is also a vital project. As a point of comparison, Mr Birkavs offered the crisis of 1956, when Europe was distracted by the Suez Canal crisis and lost sight of developments closer to home in Hungary. Mistakes of history should not be repeated. The work of constructing a new

32 European architecture requires constant attention to all parts of the map of Europe. Thus, the Minister stated that until the Baltic States are included in the European Union, Europe will not be whole and until the Baltic States are included in NATO, European security will not be indivisible. Mr. Birkavs went on to give a description of the current status of EU accession preparations and his estimation of Latvia in that process. He said that his country has now operated for one full year with guidance and support of the Association Council. The Luxembourg decision to judge applicants individually created a candidate "passing lane". Latvia, he said, is being driven by this motivating principle. In addition, the European Commission's Regular Report and the Council conclusions in Vienna confirm Latvia's steady progress in complying with the Copenhagen criteria. On the process of the actual negotiations the Minister declared that the multilateral round of screening has been completed, the bilateral round is ongoing and will be concluded in June. After June, he said, reforms in Latvia will continue in accordance with the National Programme. At this juncture, it would be tremendously logical to begin direct accession negotiations in the sectors where screening is most advanced. However, the Minister criticised that the EU plans an unnecessary pause in the Latvian accession process for the summer of 1999. Latvia would have wanted more work. The Minister stated that direct negotiations should not be thought of as some kind of prize for Latvia. His country would not consider them laurels on which to rest. At the current stage, he sees direct negotiations are the right mode to facilitate reforms, and there is no substitute for direct negotiations. They are a tool of reform because difficult change is (more palatable) easier to swallow when packaged with the benefits of entry into the European Union. Mr. Birkavs expressed his opinion that the question of whether to introduce - or not to introduce – direct negotiations is more an art than a science. From the EU side, the worry is that an invitation sent too early could slow the dynamics of progress: for countries that are invited to join the "first" wave group for direct negotiations, any perceived increase in the commitment to membership could lead to some measure of complacency. However, the Minister contended that complacency is an acceptable risk if a given candidate country has progressed sufficiently far in reforms. Only for those countries that have not progressed enough the risk is unacceptable. He estimated that questions of falling back from progress - institutional memory, hidden vested interests, and the constant loss of public officials to private business - make the "right" time harder to calculate. The Minister said that knowing the "right” time to issue an invitation requires more than mere logic. Practical wisdom is needed, not Euro-scepticism. Mr. Birkavs called for the rediscovery of the distinctions between hope - one of the three virtues - and mere expectations. In Latvia, direct negotiations remain a powerful signal. They are a stamp of approval and a reduction of uncertainty to potential investors. Negotiations are also a signal for non-citizens who are hesitant to apply for citizenship. Negotiations indicate an irreversibility of the enlargement process and the proximity of membership. Therefore, the Minister stressed that EU strategy for enlargement must include an analysis of the benefits of relieving financial constraints on reform which would be delivered through early membership versus those advantages of postponing membership to maintain leverage.

33 The Minister then presented the progress Latvia has made in realising accession strategy goals. He highlighted the fact that Latvia now fully meets the Copenhagen political criteria and that since the implementation of the amendments to the Citizenship Law, which began in November 1998, Latvia is also in full correspondence with OSCE recommendations concerning social integration. Children born in Latvia of non-citizens are eligible for automatic citizenship. Mr. Birkavs affirmed that his country continues to implement the reform agenda in a dependable manner. A market economy is functioning; economic development has been steady; GDP is at four percent; the budget is balanced; external debt is very low; the inflation rate continues to decline (around 4 1/2% now - the lowest of the candidate countries) and the national currency - the lat - is solid. The Minister also emphasised that the Latvian economy is beginning to profit from the legislative harmonisation related to trade. Trade liberalisation is boosted also by WTO membership: on February 11, 1999, Latvia became the first Baltic State to enter the WTO. He stated that with audio-visual policy, during the accession process to WTO, Latvia proved that it knows how to act as an equal partner with EU members. Latvia has achieved a higher degree of trade integration with the EU than EU experts expected. Latvia is committed to both eliminating administrative barriers to trade and to asking for better EU market access for Latvian exports. Mr. Birkavs asserted that it would be better to boost Latvian development through market forces rather than another expensive assistance program. He stated that the Latvian judicial system is being brought more closely into line with European standards. The court bailiff system is being reformed. The fight against organised crime is being handled more skilfully and statistics from 1998 show that the number of solved crimes was the highest among the Baltic States. Corruption is being tackled progressively and a Corruption Prevention Program is being implemented. The Minister went on to say that Latvia exists in the Northern Dimension of Europe and declared that strengthening of the nation can be done best by working closely with its immediate neighbours, Estonia and Lithuania, and by cultivating good relations in the Baltic Sea area. While active dialogue and application of confidence-building measures were seen as fringe benefits of peaceful coexistence during this century, international co-operation will prove to be a necessary insurance policy for human survival in the next century. Northern Dimension infrastructure projects are being formulated to join Baltic Sea peoples into one community, intrinsic to Europe. Mr. Birkavs regards the idea of the Northern Dimension to be gauged to generate a continuous momentum in European consciousness. From the idea is derived a policy for increased activity and support for economic growth in our part of Europe. Latvia has been quick to provide input and draw attention to concrete projects. The Minister stated that the Latvian Government supports projects, which facilitate development of the common electricity market as suggested in the Baltic Ring Study. The Nordic Gas Grid would be, in his view, another major contribution to regional security. Latvia's potential gas storage volume is sufficient to cover load fluctuations through the full extent of the European Union. The Minister concluded by saying that enlargement is about common values, and the defence of those values; about widening and strengthening of the zone of stability and prosperity. The project of enlargement cannot and will not be complete, until all those European countries that share the same values of

34 democracy, market economy and individual liberty have joined. He assessed that promising arrangements were made in the Berlin Summit. Nevertheless, Latvia is resting its biggest hopes on the Cologne Summit to demonstrate that critical mass of consensus on enlargement. In his opinion, an objective evaluation of Latvia's preparedness to assume the obligations of an EU member state supports the expectation that accession negotiations will be initiated this year.

35 Lithuania

At the Partnership Commission meeting in Riga on the 8th of July 1998, the Lithuanian Minister of Foreign Affairs, H.E. Mr Algirdas Saudargas, gave his opening statement14.

In his statement Mr Saudargas asserts that Lithuania is confident to initiate the integration negotiations at the Vienna Summit and that the eastward enlargement is an irreversible endeavour. At the same time as Lithuania’s economy is growing, foreign direct investments in Lithuania is also increasing. Lithuania’s future is looking promising and its government is taking firm reform measures in order to establish a transparent legal framework for investments and business development. Additionally, the government is prepared to confront and combat illegal immigration, organised crime and human as well as drug trafficking. The implementation of export controls and law enforcement will also be carried out.

On the 15th of July 1998, a Joint Communiqué of the Foreign Ministers of Estonia, Latvia, Lithuania and Germany was issued in Nida15.

During the session the foreign ministers discussed the process of the EU enlargement and the accession of Estonia, Latvia and Lithuania. The integration of the three applicant countries was especially discussed in the context of ensuring stability and prosperity throughout the Baltic Sea region. Further more, the ministers gave their consent to the initiation of the accession process of the ten Central and Eastern European states and Cyprus. They also stressed the importance of the acknowledgement that all states are to be judged according to the same criteria as well as being allowed to proceed at their own rate, depending on their own readiness. The Foreign Ministers from the three Baltic States paid a special tribute to the German Minister by expressing their gratitude towards Germany and its valuable contribution to the enlargement process. They also gave their approval to the initiation of the accession process with Estonia but also recognised the improvements made by Latvia and Lithuania towards carrying out the Copenhagen criteria. In addition, they expressed their optimism for the Commission’s review of the progress made by the applicant countries to result in bilateral intergovernmental conferences between the Council and Latvia and Lithuania.

On the 30th of August 1998, the Lithuanian President Valdas Adamkus, was interviewed for the article “A Destiny Called Lithuania”, in the paper, Lithuania in the World16.

Addressing his responsibilities in the co-ordination of Lithuania’s foreign policy, Mr Adamkus highlights his two official visits to Poland and Brussels. The significant dialogue with Poland aimed to assure the politicians that Lithuania is determined to maintain good relations with Poland, which soon is to become a member of the European Union. The issue of minority rights was also examined as well as the importance of preserving these rights on both sides of the border. The meeting in Brussels more specifically focused on the enlargement process of the union and emphasised Lithuania’s commitment to speed up its integration process.

14 Source: www.urm.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 15 Source: www.urm.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 16 Source: www.Irp.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 36 The President continues to speak about his visit to Sweden where he discussed security and economic issues. The Baltic Sea region has a great economic potential and its economic and security development will play a significant role for Europe’s future. Most of Lithuania’s trading partners are found around the Baltic Sea area and Sweden’s investment in Lithuania, for instance, increased by 27 percent in 1997.

At the Vilnius Conference on the 3rd – 4th of September 1998, the Lithuanian Minster of Foreign Affairs, Mr A. Saudargas, addressed the participants17.

Mr A. Saudargas initiates his speech by recognising that Lithuania’s integration into the European Union is the country’s key foreign policy. The integration is however an extensive procedure which includes the process of developing the already existing co-operation between Lithuania and the EU member states. At present there is a broad national political consensus regarding Lithuania’s membership of the European Union. Through the integration, Lithuania not only seeks to secure political stability and economic development but also to strengthen its European identity. The country is also already discussing the number of benefits that Lithuania would gain from participating in the . First of all, it would guarantee a continued stable development of Lithuania’s economy and increase the standards of living in the country. Moreover, the affiliation would increase competition, effectuate solutions to regional policy matters and result in the implementation of the CAP principles in Lithuanian agriculture. Finally, the Minister proclaims that EU membership will increase the stability within the country since the EU provides a mechanism for addressing “soft security” concerns, particularly those of intergovernmental activities found in the Third Pillar. Ever since the European Commission submitted its view on the enlargement in July 1997, Lithuania has made fundamental changes and significant development in order to comply with the acguis communautaire. Further more, substantial efforts have been made in conjunction to reconstruct the country’s economy and to promote investments. Whereas these changes are seen in a long - term perspective, Lithuania’s short - term priority is to initiate the accession negotiations.

At the Vilnius Conference, the Euro-Atlantic Integration as a Key Aspect of Stability, on the 3rd –4th of September 1998, the President of the Republic of Lithuania, Mr Valdez Admkus, gave a speech to the participants18.

In his speech, Mr Admkus speaks about the Euro-Atlantic Community of States that symbolises market economy, human rights, democracy, solidarity and the rule of law. The end of the Cold War has paved the way for the enlargement of the Euro-Atlantic Area. It has made it possible for the Central and Eastern European states to regain freedom and to reclaim their rightful place among the other European democratic states. It is the European Union together with NATO that provides the necessary institutional framework for this development and the Lithuanian membership of these institutions are of ultimate importance. The fundamental truth is that the membership of these institutions is the guarantor of freedom and democracy. In this context, Lithuania will therefor pursue to start negotiations on the EU membership as soon as possible,

17 Source: www.urm.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 18 Source: www.urm.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 37 hopefully at the end of 1998. The President concludes his speech by proclaiming that a new European security and stability framework is developing.

On the 19th of November 1998, the Minister of Foreign Affairs of Lithuania, H.E. Mr Algirdas Saudargas, gave a speech on the Role of the EU and NATO in the Baltic Integration at the Third Annual Stockholm Conference on Baltic Sea Security and Co- operation19.

In his introduction, the Minister alleges that the Baltic States as well as the EU and NATO are facing a period of transformation. By opening up their doors to the new member states they illustrate that absolute security and stability can only be achieved through deepening integration and co – operation. Today the Baltic States are transforming and Lithuania’s integration into the EU remains the country’s primary foreign policy goal. Lithuania’s economy has shown substantial progress and while its GDP increased by 5.7 percent in 1997, the annual inflation rate has consistently remained as one of the lowest in Central and Eastern Europe, reaching a record low of 3.7 percent in October 1998. Further more, the business climate in Lithuania is looking prosperous and foreign investment into the country is steadily growing. Mr Saudargas proclaims that he is confident that Lithuania’s positive development will increase the country’s possibility to become integrated with the EU. He moves on to elaborate on the Commission’s analysis and concludes that Lithuania was favourably rated in the context of all the Copenhagen criteria. The Commission did, however, want to see some of the recent economic reforms to be carried out in practice before recognising Lithuania’s full compliance with the Copenhagen economic criteria. The conclusion of the Commission states that should Lithuania’s reforms and decisions continue to be implemented as at present, it would be able to initiate negotiations. Lithuania firmly adheres to the decisions of the European Council in Luxembourg in 1997 and to the notion that all candidate countries should be judged according to the same objectives and to their own merits and progress. Lithuania is also completely aware of the preparations made by the Union to meet the challenges of the enlargement and it supports the necessity to carry out internal reforms within the EU. These reforms should, nevertheless, not postpone the association negotiations. Today, the Baltic Sea is becoming a sea of integration, stability and confidence and we must take the opportunity of integration to create a stable and prosperous Europe.

At the Conference, The Baltic States’ integration into the European Union: Focus on Lithuania, in Vilnius on the 22nd - 23rd of March 1999, the Political Director of Lithuania’s Ministry of Foreign Affairs, Mr Vygaudas Usackas, delivered a speech20.

Mr Usackas discusses the Baltic Sea co - operation and harmonious relations within the light of the EU enlargement. During history the Baltic Sea region has systematically been occupied and oppressed by its larger neighbours, but at present, the region is one of the most prosperous and promising in Europe. The fall of communism and the restoration of a free Lithuania have made the integration process into the European Union possible. The Lithuanian people together with the national government strongly support the accession into the EU and perceive it to be a

19 Source: www.urm.lt/new, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment 20 Source: www.urm.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment

38 unique opportunity for creating stability in the region. The continued integration of the growing economies of Poland and the Baltic States into the Union’s common market together with an EU strategy plan on Russia, will create new opportunities and greater co-operation. Lithuania is, however, stressing the importance of continuing close ties with the Kaliningrad region in order to prevent a furthering uneven development between the two entities. Such a development could result in negative social, economic and psychological consequences.

At the Conference, Ukraine’s European Choice: Baltic Dimension, in Kiev on the 3rd – 4th of May 1999, Lithuania’s Vice minister of Foreign Affairs, Dr Gediminas Serksnys, spoke about his country’s view and experience in regards to the EU21.

Lithuania’s integration process into the European Union is an indispensable endeavour in order to reinforce the country’s European identity and to lay the foundation for improved economic development. The ’s 50 years of annexation serves as a vivid reminder that Lithuania needs to deepen its engagement and participation with Europe if it is to secure its cultural and national identity. The enlargement process of the EU, Mr Serksnys asserts, grants us this unique opportunity. Lithuania applied for EU membership on the 8th of December 1995 and their integration process consists of three major legal instruments.

· Agreement on Economic, Commercial and Trade Co – Operation between the EEC and Lithuania, signed on the 11th of May 1992. This agreement lays the foundation for the co – operation between Lithuania and the EU.

· Agreement on Free Trade and Trade related matters, concluded on the 18th of July 1994. This agreement covers trade, competition, state aid, intellectual property rights and public procurement rules.

· The European Agreement was signed on 12th of June 1995 and put into effect on the first of February 1998. It serves as an association between the , their member states and Lithuania and it has recognised the country’s goal to become an EU member.

The Minister proudly proclaims that the European Council of Vienna recognised Lithuania’s progress and preparations for the accession by proposing the accession negotiations to be initiated. At the second Lithuanian – EU Association Council in February 1999, for instance, Lithuania’s progress was acknowledged with great satisfaction. The Lithuanian Ministry of Foreign Affairs bares the main responsibility for the country’s accession into the EU and it has concentrated on four major areas. Firstly, the drafting of the negotiations positions and the co- ordination of the screening exercise. Secondly, it is responsibly of the implementation and supervision of the Europe Agreement and thirdly, it deals with political co – operation including the CFSP. Finally, it is in charge of supervising Lithuania’s trade with the EU, external relations and co-ordinating technical assistance such as Phare.

21 Source: www.euro.lt, the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment

39 Mr Serksnys concludes by using his country as an example of an ex- Soviet annexed state that has made a clear political decision to join the EU, the first real integration block.

On the 7th of May 1999, the Vice-Minister of Foreign Affairs of the Republic of Lithuania, Mr Gediminas Serksnys, gave a presentation at the Conference “German and American policies towards the Baltic States. The perspectives of EU and NATO enlargement22”.

The second Lithuanian – EU Association Council that was held on the 22nd of February 1999, recognised Lithuania’s positive development in regards to its pre-accession operations. The European Union welcomed the signing of the European Convention for the Protection of Human Rights concerning the abolition of the death penalty. Further- more, the Council welcomed Lithuania’s transition to become a fully-fledged market economy and encouraged further reforms within privatisation and bankruptcy regulations. On the first of May 1999, Lithuania initiated the bilateral EU – Lithuanian acquis screening that will assist Lithuania in the evaluation of their level of acquis adoption. The European Commission’s response to Lithuania’s NPAA (National Programme for the Adoption of the Acquis) Program has been crucial for providing new guidelines and amendments. Finally, Lithuania is well aware of that the enlargement process poses a complex challenge to the EU and its framework and that considerable alteration and preparations have to be made.

22 Source: www.urm.lt// , the whole document is available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage: http://www.europarl.eu.int/enlargment

40 Hungary

On October 7th 1998 the Spokesman of the Ministry of the Republic of Hungary delivered a Press Conference23.

When being asked about a plan under which the Hungarian diplomacy will prepare the beginning of substantive accession negotiations on November 10th 1998 the Hungarian spokesman points out that decisions on both the position papers concerning the accession negotiations with Brussels and the position to be represented during the screening of its membership are made by the Government. Regarding the topics that are expected to be on the agenda in the first round of the accession negotiations, the spokesman explains that the Hungarian Government and the Ministries in co-operation with the State Secretariat for Integration of the MFA have completed the preparations. Hungary intends to continue the approach to the EU-membership as before: with its participation in the substantive negotiations and the further rounds of the screening in a well prepared manner.

Answering the question about Hungary’s official position on revising the number of countries taking part on the first wave of the European Union’s enlargement, the Hungarian spokesman argues that Hungary takes the view that the enlargement of the European Union should be implemented by taking into consideration the individual performance of the countries that wish to become members. Therefore Hungary maintains its preparation in a dynamic way, he said. Hungary is also interested in an integration of all countries of its region that meet the criteria of Copenhagen. It is willing to transmit its experiences gained during the accession negotiations to the countries that do not belong to the first wave of enlargement.

Prime Minister Victor Orban’s Speech on the Congress “Europe 2000: A Union for the Citizens. A Union with Global Responsibilities” on 6th of June 199924

First the Hungarian Prime Minister explains his personal view on Central Europe. He differenciates the countries in Central Europe by the following measures: the status of law and order, the level of transparency and corruption and the penetration of organised crime. In his point of view there are 3 groups of states: countries where the communist state is replaced by a state of law and order, other states where it is possible that respect for law succeeds, but there are also states where respect for law and order is not probable. As regards Hungary, the Prime Minister is of the opinion that the transition of the past ten years is finished now although there is still a lot to do. Concerning the EU, Mr. Viktor Orban expressed his pleasure about the concrete way of enlargement of the European Union defined at its Berlin summit. If an institutional reform in the EU takes place before the end of the next year, the intended date for accession of Hungary can be maintained, he said. Viktor Orban finishes his speech by saying that Hungary is looking forward to the year 2002 as the date of its accession to the EU.

The Hungarian Ministry of Foreign Affairs provides the exact National Programme for the Adoption of the Acquis Hungary, revised version from July 199925

23 Source: http://www.mfa.gov.hu/1998/10/spok1007.htm 24 Source: http://www.meh.hu/kormany/kormanyfo/1999/06/990606en.htm 25 source: http://www.mfa.gov.hu/euanyag/NPAA/Cover.htm 41 The programme treats the different criteria for the EU membership and how the obligations of membership are assumed. In this connection the plan examines the internal market without frontiers, innovation, economic and fiscal affairs, the sector policies, economic and social cohesion, quality of life and environment, justice and home affairs, external policies and financial questions. Furthermore the paper points out the administrative capacity to apply the acquis.

Detailed information is available on:

http://www.mfa.gov.hu/euanyag/NPAA/Cover.htm

42 Poland26

The Polish Prime Minister, Mr. Jerzy Buzek, held a speech at the Conference on “Common Securing of Europe’s Future” in Göttweig, Sweden on the 6th of June 1998.

The applicant countries have to demonstrate that they are willing to make internal efforts to adopt the political, economic and social standards existing in the European Union (EU). Europe’s wealth depends also on the will to carry out internal reforms in the Union. Both processes, Mr. Buzek believes, should run in parallel. When thinking about the future of the EU, in this way proceeded by the Prime Minister, Poland cannot ignore the emerging threats. The position taken by certain member states which look primarily to intensify and increase co-operation within the framework of EU over its enlargement concerns Poland. The Polish state is interested in the results of several reforms within the Union, such as the financial reform, the reform of regional policy and of the Common Agricultural Policy. They have a direct impact on the form of Poland’s future membership in the EU. Public support for Poland’s joining the EU has been constantly on a high level despite the fact that the Polish society has endured the immense costs of the reforms. In order to keep up support for reforms, the public has to see a clear time perspective. For this reason it is very important to announce clearly the moment when Poland will be capable of getting full membership in the EU. Mr. Buzek moves on by pointing out that the new Europe has to rely on a basis of common values. The decision of the EU to admit new members does not pose a solely technical problem. The principal of solidarity lies at the foundation on which the EU was built. The feeling of co- responsibility for the destiny of the whole Europe is the cornerstone of integration. Security and peace in Europe depends on the success of the transformation processes in the states of central and eastern Europe. The Polish Prime Minister demands that states which cannot yet join the EU should have an clear path to European structures because the prospect of membership has a mobilising effect. The joining of new states to the European Union is not only a political problem. In EU member states there exists a strong public fear in connection with the accession of CEEC to the EU. The economy, the labour market, agriculture, transportation and the technical infrastructure are in this context particularly sensitive areas. As Mr. Buzek asserts, Poland understands such feelings. However, if the Central Eastern European Countries are left outside the European structures, this may cause a deepening of the disproportion and to an intensification of negative trends. It is an illusion to believe that problems can be solved with a policy of isolation. In Poland’s opinion, the joining of new members to the EU will end in an enlargement of the zone of stability and co-operation and will also promote the economies in EU member states. And furthermore the accession of central eastern European countries to the EU will be a materialisation of the European idea of unity.

26 Sources that have been used to elaborate this chapter: *Information Point of the European Union Delegation of the European Commission in Poland Mrs. CZARNECKA Tel.: (+48 22) 627 14 82 Fax: (+48 22) 627 14 81 *Internet site: http://www.msz.gov.pl The whole documents are available on the INTRANET homepage http://www.europarl.ep.ec/enlargement , or on the INTERNET homepage http://www.europarl.eu.int/enlargement 43 On June 14th 1998 the Polish President Alexsander Kwasniewski delivered a speech at a meeting with participants of the XXXVI Congress of European Journalists in Warsaw, Poland.

Mr. Kwasniewski asserts in his speech that the opinion that the EU is guided by the principle of exclusivity and not openness is redundant. The conditions of joining the Union are demanding because they give protection to the institutions and laws of the EU created over many years. For those countries that meet the required conditions the door to full participation in EU will be wide open. Turning this scenario into reality depends mainly on the political will of the negotiators of both sides. Nobody is allowed to consider the European integration process as imposed or mechanical. The unification of Europe is not historically determined but it is decided in full consciousness by the individual nations.

On the 22nd of June 1998, the Polish Minister of Foreign Affairs, Mr. Bronislav Geremek gave the address “ Security of Central Europe “ during the 15th International NATO Workshop in Vienna, .

In this speech Mr. Geremek expresses his opinion that the prospect of NATO and EU enlargement has done much for stability and security in Poland. The perspective of joining them provided a strong boost for deep internal reforms and solving international problems which could develop into destabilising factors of wider character. But the Foreign Minister adds that the Polish membership of NATO and EU does not mean realisation of all targets which are inherent in the process of building up security and stability. This is why Poland as a future member of NATO and EU acts to be ready for “ the day after “. Poland understands the quantity and extent of effort which it has to make in order to be politically, mentally and materially compatible with other members. Consequently it will be able to fully utilise the gains of being part of those institutions - for the benefits of all. Still, Poland is also well aware that this implies to share burdens and responsibilities.

During a meeting of the Joint Parliamentary Commission of the Republic of Poland and the European Union in Warsaw, Poland, on the 23rd of June 1998, the Polish Prime Minister Jerzy Buzek held a speech.

The co-operation of the Polish Diet with the is very important for Poland’s joining to the EU. European integration cannot be just a bureaucratic process. Enlargement of the EU needs the support of the European Society as a whole. For this reason the work of the Joint Parliamentary Commission of the Republic of Poland and the European Union is of particular importance in the process of building an atmosphere of understanding and co-operation between the European nations. The Prime Minister moves on to assert that it is also important to make the societies in Europe aware of the advantages which can be gained from the Union’s enlargement. This is also to break down the feelings of fear that are present in some groups within European society. He gives the example of citizens of the EU who feel apprehensive that enlargement will compound competition on the labour market or in some branches of industry. But at the same time they often do not take into account that the new countries entering the EU will not only receive aid of the Union but they will also be partners in development: They are bringing their fast-growing economies and their ready, expanding markets to the Union. All former enlargements of the EU

44 were profitable for old and new members and so the Polish Prime Minister believes that will be the same with the Eastern enlargement. Poland understands the “acquis communautaire” as one whole. That is why the Polish state thinks that transitional solutions would be used cautiously so as not to disturb the functioning of the Common Market in the EU. Because of the prospect of its membership in the EU, Poland would like to take part in debates on the financial and institutional reform of the EU. The new policy for agriculture and the structural policy are necessary for the smooth functioning of an enlarged Union. Mr. Buzek finishes his address by announcing that Poland wishes to join a strong and solidary EU. This is why Poland supports a process of deepening the EU which ought to run parallel to the enlargement of the UE.

On the 30th of June 1998, the Prime Minister of the Republic of Poland Mr. Jerzy Buzek delivered a speech at the conference of the U.S. – E.U. – Poland Action Commission in Warsaw, Poland. In his speech he announces Poland’s reasons for membership in the EU.

Poland wants to enter the EU for several reasons: EU membership is a step in securing its position as part of the Western community of nations and a confirmation of its place in the sphere of Western civilisation which is based on Christian values. But Mr. Buzek stresses that joining the EU makes sense when Poland and other Central and Eastern European countries become part of the Union on equal terms. The EU would stop being a “union” if some of its member states must experience long transitional periods. Besides these strategic and spiritual reasons, Poland has also an economic interest in entering the EU. EU member states are Poland’s best trading partners. In 2002 the Polish state will be able to participate almost totally in the Union’s common market. The The Prime Minister points out that Polish economic interests are at stake and therefore Poland is of course interested in getting an adequate political presence. He continues that the Union has to accomplish internal reforms. The process of their co- ordination and implementation cannot be a justification for keeping Poland away from full EU membership. It would be abnormal if Poland could not join the EU at the time when all of the terms of Poland’s Association Agreement with the EU are fulfilled.

On September 10th 1998 the Minister of Culture and Art of the Republic of Poland, Ms. Joanna Wnuk-Nazarowa gave a statement during the informal conference of Ministers of Culture of countries associated with the EU in Linz, Austria.

Ms. Wnuk-Nazarowa commences by questioning the role culture should play in enlargement of the EU. Culture is not an element that participates directly in the enlargement process, it is a subject in the highest grade to the principle of “”. But seen from the perspective of integration, culture is an integral part of many areas which are the subject of agreements and adaptation, such as employment or trade. Culture seen in this perspective has a huge influence on the enlargement of the EU. Therefore Poland supports that the European Commission is preparing a uniform cultural programme “Europe 2000” which declares that culture should be in the centre of the European integration process as its base. Poland considers the participation in this programme as a chance to speed its process of the adaptation up to the standards of the

45 Union in different culture-related spheres. This should not be too difficult because the Polish legal system in this area is not markedly different from the Union’s. Ms. Wnuk-Nazarowa moves on by answering the question of what Poland, as an applicant country, expects from the EU. Poland wishes to participate in existing cultural programmes in the widest possible manner. For procedural reasons these expectations do not seem to be the easiest approach. Programmes could be open to Poland’s projects only after Poland pays the appropriate dues, but for these, Poland is prepared. Furthermore, the Polish Minister announces what actions Poland should take before entering the EU. For some months Poland has been screening its legislation in the areas in which it must adapt itself to the “acquis communautaire”. This involves protection of intellectual property and the audio-visual domain. Ms. Wnuk-Nazarowa finishes her statement by asserting that to devise a strategy and instruments that encourage contacts between the state and the new people of Europe is the most important step in European cultural policy.

On the 16th of September 1998, the Minister of Foreign Affairs of the Republic of Poland Mr. Bronislaw Geremek gave a lecture in the Kiev Institute of in Kiev, Ukraine.

Poland is expecting that at the end of the year 2002 the negotiation and the ratification of Poland’s accession into the EU will be over. But will Poland’s entry into the Union isolate it from Ukraine? Mr. Geremek emphasises that its country does not want an “iron curtain” on its eastern frontier but a “border friendly to people”. Nevertheless Poland must not forget that by joining the EU it has to undertake the obligations determined in the which have entered into the Amsterdam treaty. The Polish Minister moves on by questioning what this means for Polish-Ukrainian relations. This does not mean that Poland will be obligated to close the border, but it means that Poland and Ukraine will be required to control the border in order to protect against organised crime and Mafia organisations which may move through Europe.

At the meeting with representatives of Swiss financial and economic circles in Bern, on the 22nd of October 1998, the Polish President Mr. Alexsander Kwasniewski delivered a speech.

Negotiations about Poland joining the EU are underway. Poland is fully conscious that entering the EU will not be easy because the standards set by the Commission are very high. But Mr. Kwasniewski stresses that Poland is working hard to overcome the difficulties in this regard. Poland is applying for membership and that is why it has to do most of the work. He moves on by asserting that the eastern enlargement of the EU is also in the interest of Western Europe. The recent economic turbulence and uncertainty concerning reforms in Russia ought to be considered as a convincing argument to speed and reinforce efforts for enlargement and not as a justification to delay or slacken this process. Fortunately, as far as Mr. Kwasniewski is concerned, the reactions of European politicians to the present situation seems to be in this direction. Poland is interested in deepening and enlarging the EU, or in other words, in the success of the common European currency “euro” and in its prompt members in the EU.

46 On October 23rd 1998 the President of the Republic of Poland Mr. Alexsander Kwasniewski held a speech at a meeting of the Swiss Foreign Policy Society in Bern, Switzerland.

There is a high level of support for accession to the European Union by both the Polish society and all major political forces. Poland perceives the road which leads to the EU as alike with the way forward to internal reforms. The reforms required for Poland to enter the EU are also useful for its internal development because of the high European standards. Poland’s reforms already have produced evident success: Poland has one of the highest growth rates in Europe, inflation has been descending, unemployment levels have dropped and Poland’s foreign currency reserves are increasing. Mr. Kwasniewski points out in his address that Poland is not interested in partial membership. Therefore it wants to join the European Monetary Union in the next stage and to measure up to the dispositions of the Schengen Treaty. Because Poland’s eastern border would be the future eastern frontier of the EU, it would have to act as a strong barrier against criminals, drug dealers and illegal immigrants.

On the 7th of December 1998, the Polish President Mr. Alexsander Kwasniewski gave an address at the “German-Polish European Talks” in Berlin, Germany.

Mr. Kwasniewski highlights in his address that present discussions concerning enlargement of the EU often show signs of thinking in categories and of myths. An example of this is the subject of maintaining the free flow of persons after enlargement of the EU. He proposes in order to release their thinking a serious and objective analysis of potential dangers and risks. It is dangerous for Europe to exaggerate and politicise the difficulties and risks for immediate goals because exaggerated fears could paralyse or postpone important decisions to the uncertain future. Finally the Polish President points out that no country should be excluded in advance but it should be clearly determined who can participate in the European Union, on what conditions and when. The Union has to set goals for the countries aspiring to the EU and to show them the way to accomplish this. The success of the enlargement depends on both the applicant countries and on the states of the EU. The importance of this enlargement process should be a spur for the two to make the necessary efforts.

At the University of Bucharest, Romania, the President of the Republic of Poland, Alexsander Kwasniewski gave a speech on the 4th of March 1999.

In his address Mr. Kwasniewski proclaims that Poland accepts a slow and staged enlargement of the EU. He has conscious that this stems essentially from the need to meet the requirements for membership in the EU which are difficult. Poland understands that enlargement can not be a one-time act, but at the same time he stresses that the enlargement process must be open for all states who meet objective criterions. The highlights that the openness of the enlargement will decide the success of the European project. Mr. Kwasniewski continues by arguing that the enlargement of the EU is a natural process which joins a Europe which has been divided for a long time. The enlargement of the EU will make it stronger in the world because it will become the largest region of similar

47 political and economic stability. It will also strengthen the reasons for change within the EU itself. For the President enlargement and deepening integration are complementary processes.

On March 16th 1999 the Polish President Mr. Alexsander Kwasniewski presented the paper “European Security and Regional Co-operation – Poland’s Perspective” at the Institute of Diplomacy and International Relations in Kuala Lumpur, Malaysia.

In this paper Mr. Kwasniewski proclaims that Poland is well on its way in its attempt to go into the European Union. He presumes that Poland will accomplish full membership capacity by the end of 2002, but initially, it will not be capable to fulfil all of the requirements necessary to be a part of the European Monetary Union. The Polish state envisages - on the basis of his economic growth rate and the optimisation of macroeconomic indicators - the possibility of entering the Euro zone between 2006-2008. Poland is conscious of the difficulties involved with this ambitious goal. The Polish President also announces that the decision of an enlargement of the Union will be coupled with the process of internal reforms in the EU. Poland would like to belong to a reform Union which is able to take up the challenges of a changed time.

On the 31st of March 1999, the President of the Republic of Poland, Mr. Alexsander Kwasniewski, gave the opening remarks at the meeting with the Joint Parliamentary Commission Poland – European Union in Warsaw, Poland.

As far as Mr. Kwasniewski is concerned the designation of Romani Prodi as the new President of the European Commission and the decisions on Agenda 2000 originate conditions for quick advance of the accession negotiations. In this way the Union is better prepared for an early enlargement. He proceeds that there has been an advance in negotiations for membership but it has not still led to solutions that Poland would have desired. Negotiations have been opened in half of the chapters but closed in only three out of thirty one. Poland is conscious of the efforts which it faces in order to get ready for membership in the EU. The Polish President stresses that in some fields Poland has already achieved a substantial grade of adaptation and the prospects for advancement of negotiations have also improved. This is due to the solid results of the screening process such as in the domain of justice and of home affairs. The question of the schedule of the enforcement of EU legislation though should be paid more attention. Mr. Kwasniewski concludes his opening remarks by acknowledging that Poland intends to be a strong member-state.

The Polish Minister of Foreign Affairs Bronislaw Geremek presented to the Plenary Session of the Sejm a policy statement on April 8th 1999.

Mr. Geremek starts by announcing that the active participation in NATO in order to strengthen Poland’s security and the intensification of the efforts to bring nearer membership of the European Union to Poland are two of the principal Polish foreign policy goals for 1999. But since Poland’s entry into NATO the membership of and integration into the European Union has become a major objective, the top priority, in Poland’s international strategy. The enormity of

48 challenges involved with this priority target, requires an intensification of efforts in this field of endeavour. The success of the accession negotiations will be dependent on the pace of Poland’s adjustment to EU standards and it’s competence to address the increasing international competition. The key to success in the negotiations is in the accomplishment of reforms which serve to modernise the country’s key economic and social structures and help to promote the policy of growth. The Polish Minister of Foreign Affairs proceeds to assert that Poland is successful on the international scene because of the country’s favourable political and economic transformation. However he emphasises that all the states of Central and Eastern Europe should have the possibility to recover their development costs and to join the Euro-Atlantic democratically structures when it is practicable for them. Mr. Geremek moves on by expressing his opinion that the internal reforms of the EU - which he announces as for a long time necessary - would increase in value the competence of the Union to take new member states into its fold. Poland expects a confirmation to keep the Unions internal reforms running to the process of its enlargement of the member states. Poland takes note with satisfaction the results of the Berlin European Council on March 25th 1999 because the Council delivered a compromise concerning the Agenda 2000 and he proclaimed the enlargement of the EU which will start in the year 2002. As the Polish Minister of Foreign Affairs said earlier, the priority target set for Poland’s international strategy is the integration into the EU. Therefore Poland considers it necessary to maintain the pace of the accession negotiations, to encourage the EU member states’ political will for an enlargement as well as promoting the positive aspects of enlargement in member- and applicant states and to drop negative stereotypes which often arise and to prioritise the promotion of Poland’s integration into the EU. Poland prepares a Polish outline opinion on the Union’s institutional reform which gives Poland a possibility to participate in an important debate now going on within the EU and also it sets great store on the definition of a schedule for the enlargement of the EU. Mr. Geremek highlights that the actions of Poland in 1999 concentrate on quick elimination of the barriers to integration into EU mentioned by the European Commission Report. The report concerns the progress made by Poland in preparation for membership of the EU. This is in order to accelerate the adjustment process and as consequence have success in both the negotiations with the EU and in the integration into EU.

On the 6th of May 1999 the Polish President Mr. Alexsander Kwasniewski held a speech during a breakfast given by the Svenska Dagbladet Executive Club and the Swedish-Polish Chamber of Trade in Stockholm, Sweden.

Poland should spare no endeavour in looking for effective restructuring solutions in the fields of heavy industry and agriculture. Here, there are still many problems and being conscious that to cope with them is a substantial condition for membership in the EU. The first three areas of negotiations – science, education and small to medium-sized enterprises - have been closed and in many others Poland has come to a de facto agreement with the EU. Poland can even conclude negotiations in several other fields in June. Mr. Kwasniewski is convinced that the government of Poland will give negotiation positions in all left chapters in November so that the negotiations for membership can be finished next year. He is conscious, however, that communication with the Union in particular areas, especially in agriculture, fishing, environmental protection, the free flow of people and capital, budget and regional policies, could prove complex and difficult.

49 On the 7th of May 1999, the President of the Republic of Poland Mr. Alexsander Kwasniewski held a speech during a joint press conference with the French President Mr. Jacques Chirac and the German Chancellor Mr. Gerhard Schroeder in occasion of the triple summit of Weimar’s Triangle in Nancy, .

Mr. Kwasniewski points out that Poland would like to be ready to join the European Union at the end of 2002 and he thinks that this is an ambitious but realistic target. This is realistic because Poland has the support of his partners. The Polish President asserts that the development and the strengthening of the triple co-operation within the context of Weimar’s Triangle accelerates and appeases Poland’s conversion into the European Union. This is why Poland welcomes the regular meetings with the heads of State of Germany and France. In addition Mr. Kwasniewski highlights that Poland follows the correct path towards the accession of the European Union and it knows and respects the conditions for this. New conditions for Poland’s membership of the European Union will not be formulated.

The Polish Foreign Minister Bronislaw Geremek gave the speech “ The South Eastern Europe Stability Pact as seen from the Polish perspective “ published in the ‘ Financial Times ‘ on the 10th of June 1999.

Mr. Geremek starts his speech by announcing the impacts of the on the international political scene. The European Union, especially, is facing now an enormous challenge. The crisis in the south - eastern Europe are destabilising the whole European continent. The war against poverty must be established in this region. This can only be achieved by an economic recovery and development plan corresponding the Marshall plan for Europe after the Second World War. But Mr. Geremek highlights that this should not be charity but an economic mobilisation of this region. The European Union should not only hold out accession hopes for the countries in south-eastern Europe but also help them to co-operate economically in the run-up to European integration.

50 Romania27

ADDRESS of Emil Constantinescu, , to the International Conference, “Caspian Energy to Europe”, September 1998

The President, Mr Constantinescu, is speaking about the European energy (oil) supply that runs between Central Asia and the European continent. He confirms that the need for the construction of a Southern corridor for energy transportation between these two regions is widely acknowledged. The important position of Romania in order to realise the construction of the corridor is underlined by Mr. Constantinescu. According to him, Romania’s offer to open and consolidate an East-West transport route for the resources originating in the Caspian Sea consists of using the port of Constantza as a drawbridge to the European zone. This indicates how important it is that Romania is and stays a politically solid pillar of regional stability. Romania has proved to be developing a functional and stable democracy, with reasonable and predictable foreign policy. Moreover, Romania's domestic policy, her political diplomatic relations with neighbouring countries, as well as the creation of a legal system matching European standards, are all unquestionable elements conducive to the acknowledgement of Romania’s present status. Yet, Romania is a keen associated member of the European Union and is seeking accession – which would further push her importance as a key player in the field of intercontinental energy supply.

On the Occasion of Romania’s National Day on 01.12.1998, President Emil Constantinescu addresses the Romanian people

Mr. Constantinescu stresses Romania’s will to develop a democratic and just form of society. It is incumbent upon the Romanian people that public institutions should be better run, and that the elected representatives should comply with their responsibilities. It is important according to the President, that majority must respect the minority’s opinion and the opposition must contribute to the stability and prestige of the country. Mr. Constantinescu declares that he will see to it that the public institutions function properly, and that the state institutions will not in any way be underscored or undermined. Provided that Romania is able to accomplish the ideals is has fought for, to build up a modern society, to remove for good the scum of dictatorship, to put in place a performing economy as well as efficient institutions; the victory of this achievement will be acknowledged through accession to the European Union.

27 Sources that have been used in this chapter: · Press Office of the Romanian Foreign Ministry Mrs. Gabriela Matie Phone: +40 1 230 57 85 · Internet page: http://domino.kappa.ro · Internet page: http://www.presidency.ro The whole documents are available on the INTRANET homepage http://europarl.eu.ec/enlarement or on the INTERNET homepage http://www.europarl.eu.int/enlargement 51 The Romania Ministry of Foreign Affairs published an official statement about Romania and its EU Integration Process on its WebPages on 16.03.1999

The Romanian Government’s domestic and international commitments have been defined in order to achieve a gradual rapprochement with the Community institutions and to intensify Romania’s preparation for accession to the European Union. The reform process is accelerated and Romania is adjusting structurally according to the requirements of the Internal Market and to the EU common policies. There have been achievements and consolidation of macro-economic stability in order to lay the foundation for further sustainable economic development. Romania has proceeded to an accelerated structural adjustment of the economy in order to make-up for the delays in social and economic transformation. A firm monetary policy has been designed to curb inflation. Financial policies have been introduced, aimed at achieving a balanced budget and giving a new impetus to economic programmes – mainly export-orientated. Moreover, there has been regional and local development aimed at increasing solidarity and cohesion in the political and social spheres. The social dialogue has been re-launched at a central and local level to further the development of a civil society. To comply with EU regulations, legislation has been harmonised by absorbing and implementing the “acquis communautaire”. Romania has undergone an institutional and operational adjustment and strengthening of co-operation with the member and candidate states in the fields of Justice and Home Affairs. Finally, the Ministry of Foreign Affairs refers to the structural and functional reform of the public administration. This was done in order to enhance the flexibility, effectiveness and coherence of administrative activities, to cut down bureaucracy, to eliminate duplication and overlapping, and to raise the degree of compatibility with the administrations of the EU Member States. The Romanian State has improved the activity of the national structure which is responsible for the management of the Accession Agreement. The country is preparing concrete and relevant projects that could benefit from financial assistance granted by the Community (the new PHARE programmes and “catch-up facilities”), with due consideration to the conditions set by the European Union. Romania is very keen on a continued substantive dialogue with the EU institutions and Member States in order to secure the political consensus in favour of taking the country off the EU “black list” for visas by extending a treatment similar to the one applied to other candidate countries. The official statement of the Romania Ministry for Foreign Affairs concludes that the country will intensify its participation in the regional and sub-regional co-operation schemes (BSECO, CEFTA; CEI), combined with an enhanced continuation of the friendly, neighbourly relations policies with the states in the adjoining regions.

On 16.03.1999 the Ministry of Foreign Affairs published on its official WebPages a statement concerning Romania’s accession to the European Union.

The Ministry explains that an accession to the Union will be highly profitable for the country. EU membership will have a major impact upon all facets of economic, political and social life. The economic implementations will be the most significant, though radical mutation will also be recorded in the political, security, social and cultural domain. From the political perspective – according to the Ministry – the decisions making mechanisms will be reconfigured, in the sense of transferring certain competencies towards Community institutions. At the same time, Romania – once a member of the EU – will benefit from the possibility to participate in the complex collective decision process, thus being able to better promote its interest. There will be a whole list of advantages that are brought to Romania through accession to the European Union. The political and economic climate will be stable and promote sustainable development and the economic environment will be much more predictable.

52 Through accession to the EU the competitiveness of the internal market will improve. This development will lead to a stimulation of the national companies in the spirit of increasing their productivity and efficiency by developing new products and services. Additionally, there will be significant developments in trade, which is an important stimulus for the national economy and labour market. This goes hand in hand with the expected increased access to European capital and investment markets, to new equipment and information technologies, to “know-how” management and organisational techniques of developed countries. Moreover, becoming a member of the EU will increase national security through the integration in CFSP mechanisms. Romania will also be able to fully participate in the decision-making processes concerning the future structure of Europe. Equally important, the citizens of the country will be granted several improved rights deriving form “European citizenship”. Finally, there will be improved perspectives for Romanian labour through the access to the whole European labour market. The official statement of the Ministry for Foreign Affairs concludes that the costs that have to be paid in order to bring Romania’s economy and society up to European standards must not be arbitrarily imposed through EU exigencies. Such efforts and sacrifices are inherent in the actual transition stage, as they do constitute the price of inevitable reform.

On 16.04.1999 President Emil Constantinescu gave an official message to the Citizens of Romania

Mr. Constantinescu makes clear that the sovereignty, independence, integrity and unity of the Romanian State, as provided for the Constitution are not and cannot be raised for discussion. In the present environment, which both worrying and tensed [Kosovo crises], all the remarkable voices of international political life see Romania as a region of stability. The country is perceived as an example of a mature and democratic solution to political, interconfessional and interethnic issues. However, Romania is dealing with extremely tough economic and social issues and the opinions on how to sort them out are very different. The security of the Romanian State relies on its way to resolve, and show the world that the country managed to resolve for ever, the essential problems related to building up stable and democratic structures as well as a climate of tolerance. The responsibility and behaviour of Romanian citizens offer the world the image of an old, credible and reliable nation. Mr. Constantinescu concludes that Romania’s security is the result of its firm option for EU membership. There are not any other strategic options, middle course, or a neutrality void of any content for the Romanian State.

On 23.04.1999 the Romanian President Mr. Emil Constantinescu held a speech at the UN Plenary Session on “Investments in Central and Eastern Europe” in New York

Mr. Constantinescu stressed that Romania is developing a trustful and sustainable market economy and is trying to fulfil the obligations made by the EU that are required to reach accession to the Union. ”Romania is ready to be an open economic actor in the [South-Eastern European] region. Romania is on a road that leads to only one destination: a well-functioning market-economy, capable of coping with the competitive pressures of an open environment”. Hence, the country is on its way to fulfilling the obligations made by the EU for accession to the Union.

53 On the 10.06. 1999 the Rumanian Minister of Foreign Affairs, Mr. Andrei Gabriel Plesu gave a speech at the Ministerial Meeting on the Stability Pact for Southern and Eastern Europe in Cologne.

Mr. Plesu stressed the necessity of political and economic stability in the South Eastern European region, as it is important for the stability of Europe as a whole. The Foreign Minister claims that the Stability Pact for South Eastern Europe reflects the progress made by Rumania towards the vision of becoming a member of the European Union. The confidence based on the values of democracy is the cornerstone of a solid architecture in the South-Eastern European region. Mr. Plesu stresses the fact that Romania is ready to be a primary contributor in sharing with other countries the profits of her longstanding, relevant democratic experience. He concludes by referring to the Stability Pact as leading to a long-term endeavour towards trust, emancipation, consistency and prosperity which are important requirements for accession to the European Union.

Message by the President of Romania, Mr. Emil Constantinescu to the joint chambers of the Parliament regarding the national security strategy of Romania, June 29, 1999

The President, Mr. Emil Constantinescu, explains Romania’s security strategy for the coming year by emphasising the importance of economic, social, educational, administrative, diplomatic and environmental issues for the country’s security. Attaining security in all these areas will be to the advantage of the country as well as to the South Eastern European region as a whole. This development will eventually lead to a full membership of Romania within the European Union. Mr. Constantinescu claims that Romania grants and promotes the fundamental rights and freedoms of its citizens and makes sure that they are exercised in compliance with the standards of the European Union. Equally, the country will continue to grant the right of freedom of opinion and the recognition of NGOs. The President stresses the importance of multilateral co-operation during this century. History has proved that no country can live safely while isolating itself. Hence, Romania is keen on enforcing several firm principles and policies in order to develop a system of alliances and a spirit of real co- operation with the rest of Europe. Mr. Constantinescu continues his message by claiming that the new European security structure is based on a new logic: All partners now benefit from their status of security and confidence providers. To guarantee the security of Romania – in a military, economic and social way – the country’s strategy (in the medium and long run) is to be an integral part of Nato’s defensive structure and to gain full EU membership. These achievements will support the necessary means to promote Romania as a pillar of political, social, ethnic and religious stability in the region. Moreover, the President informs the Parliament that the country is running for the Presidency of the OSCE in November. . The country aims to hold the presiding position form 2001 onwards. Romania was even able to assure the support of the for this purpose. This development shows the continuity of the Romanian political and strategic progress that will finally result in negotiations

54 regarding EU membership as well as the aim to become a full member of Nato’s Security Council. Romania envisages to reach these aims by 2003. Another important step to continue political and social development, according to Mr. Constantinescu, will be to win credibility on the global capital markets. Romania lacks domestic financial resources to support lasting development; therefore, foreign direct investment is necessary mean. The start of an increase in foreign direct investment has been the growth of next year’s European grants (2000), which will be four times higher than the previous ones. This money has to be invested in areas of strategic interest, i.e. development of transport infrastructure, border securing, fight against pollution and agricultural development in order to secure an appropriate adjustment to the European level. Equally important will be the fight against organised crime and international terrorism. An essential role in fighting this risk is played by the Romanian intelligence service, which is already co-operating with European partners. To secure Romania’s position as a pillar of security in South-Eastern Europe, strong measures will have to be adopted to avoid Romania being transformed from a transit zone into an operation base for organised crime. Hence, the President announced a strengthening of the action chain of Police Force, Intelligence Service, Department of the Public Prosecutor and Justice, as well as the fight against corruption. For this purpose, and thanks to the support of the USA and the EU, a Regional Centre for the Fight against Trans-frontier Criminality was set up in Bucharest. By concluding his speech, President Constantinescu put emphasis on the importance of freedom and democracy, which he describes as the “engines that push forward Romanian society”.

On 05.07.1999 Foreign Minister Mr. Andrei Gabriel Plesu gave a speech at the Danish Institute for International Relations

The speech is called “Romania – A catalyst for Confidence and Stability in South Eastern Europe”. Therefore, Mr. Plesu starts by stressing that Romania is a country where democracy and respect for human rights are already well rooted and the debate on the domestic scene is routine in its political conduct. Romania is ready to be a primary contributor in sharing with other countries the profits of her long-standing, relevant democratic experience. Yet, according to the Foreign Minister, peace and stability, in the South Eastern European region cannot be achieved without economic security, which means access to prosperity for all people. Mr. Plesu is convinced that prosperity guarantees and facilities sponsoring partners to sustain direct investment in frontline countries. The developments of the last decade or so have proved that South Eastern European countries could not imagine their own future other than within the European Community. Romania appreciates the efforts made by the European Union, which are aimed at negotiating a formula as close as possible to reflecting this reality in the Stability Pact for South Eastern Europe. Moreover, the Romanian Foreign Secretary states that his country not only endorses politically but also supports effectively EU goals and actions. In South East Europe, historical memories of partition and abandonment still feature prominently in contemporary thinking. It would be difficult, states Mr. Plesu, for the region to develop more hope and confidence without being anchored to the stable, established democratic organisations of the West. The Foreign Secretary concludes that this is why South Eastern Europe needs the support of the European Union and this is why Europe needs the support of that region.

55 Statement of the Chief of Romanian Diplomacy’s Visit to on the 23.07.1999

During the discussion between the Romanian Foreign Secretary, Mr. Andrei Gabriel Plesu and his Spanish counterpart, Mr. Abel Matutes Juan, the two officials expressed the political will of their governments to stimulate the bilateral relations between the two countries. Spain not only expressed its support for Romania’s candidature at the OSCE Presidency in 2001 but it also declared being in favour of inviting Romania to negotiation for joining the European Union.

Interview with the Romanian Foreign secretary, Mr. Andrei Gabriel Plesu published in the Swiss newspaper “Le Temps” on the 11.08.99

When asked about the frustration of the Romanian people with the Western European countries, the Foreign Secretary states that one cannot blame others for ones problems. If Romania was as prosperous a country as it could be regarded as a victim of injustice and abandonment. Romania can not align within a few years to the priorities of the Western countries that have enjoyed decades of prosperity and institutional progress. He further suggests to first solve Romania’s own problems before dealing with the European Union. Mr. Plesu argues that the relation with the EU is a vicious circle, because in order to be accepted as Member State you have to adjust to certain criteria. Yet, if you want to adjust to those criteria you have to already be a Member State. Mr. Plesu stresses Romania’s political intention of becoming a member of the European Union. He regards the Helsinki Council – scheduled for December 1999 – as the date when Romania will be invited to start accession negotiations. Romania considers the beginning of that process vital.

56 SLOVENIA28

On July 13th 1998, during the part-session of the general meeting of the institution for the Danube region and Central Europe in Semmering, Austria, the Slovene Foreign Minister, Mr. Boris Frlec held the speech "Enlargement towards Eastern Europe - new challenges and opportunities for Europe".

Explaining the term "New Europe" in the introduction of his speech, Mr. Frlec pointed out that the way which had been tackled in history resulting in World War II was wrong, since it entailed conflicts within the European continent. This should be kept in mind when organizing the "New Europe". The ideas of Jean Monnet regarding the European integration have been contributing to find a solution concerning the European disputes. In connection with this, the organization of the joint institutions based on his ideas represents a factor of great importance within the European integration. The Slovene people consider Europe as a continent of integration that had a positive influence in improving the behaviour patterns of countries which had been suffering from the suspension of freedom. The Slovene government understands this process of integration and would like to become part of it. The Slovene Foreign minister is concerned about the future of Europe. In 2010, it might be established a union in Europe which could be a permanent danger consisting of 26 countries and having 500 millions of inhabitants. It is important to avoid a segregation between Eastern-and Western Europe that would be composed of circumstances such as economical differences, a restriction on the transfers of people, capital ressources and technology that could damage the security in Europe and the whole world. Another issue brought up by Mr. Frlec are the difficulties that occurred during the last decade of the 20th century such as the process of integration in Western Europe and the process of desintegration in the Eastern part. The former communist countries had to face a transition period within the years of 1989-1991 in order to recover part of the welfare, the democratization, the economic growth and the competitiveness that had been repressed in the past. Nevertheless, the gap is even growing compared to the situation of Western Europe in the 1950s. At that time, the factors regarding integration, market and security involving different conditions yielded at a social and economical development. For this reason, the enlargement and integration process towards Eastern Europe has been inspired by an historical opportunity.

During his speech, the Slovene Foreign minister commented on the situation of economical and political integration. Due to the experience and knowledge of the Western states, the countries from Central-and Eastern Europe could approach the EU, through uniforming of their commercial policies and the reforming of their internal economic policies. The accession of the less developped countries to the EU would increase the pressure on the Regional Funds. The

28Source that has been used to elaborate this chapter: *Mission of the Republic of Slovenia to the European Union 30, Avenue Marnix B-1000 Brussels tel.: 00322/5124466 fax: 00322/5120997 *Internet site: http://www.sigov.silup-rs/enindex.html The whole documents are available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage http://www.europarl.eu.int/enlargement

57 support of the enlargement process given by the member states would depend on this issue.By implementing reforms concerning the financial framework for the time period 2000-2006 and showing that all the participating countries would benefit from the reform of the Regional Funds, the European Union will reach a consensus regarding the expenditure transfer mechanism. This consensus would contribute in holding Europe together. The European Monetary Union has to be successfu to ensure the deepening of the European integration process in the future. Growing together within the political sphere would be the logical consequence of the EMU. In connection with this, the idea of the German Chancellor, Mr. would correspond to the Slovene point of view: "The Euro is needed to secure integration so deep that war in Europe never happens again". The joint support of the member states and its citizens in order to endeavour for the same goals would reinforce the process of integration. Enhancing reforms as well as the transparency of the European integration could extend the confidence of the people in terms of the EU. Since Europe is aware of its problems, new documents have been adopted such as the Agenda 2000 or the in order to face the new challenges. These documents show the willingness to conduct changes within the EU such as:

· the decline of the unemployment rate in Europe · the successful transition towards the new currency · the preparation and implementation of the enlargement process

In terms of these documents, the Slovene Foreign minister expounds that their successful conduction depends on the grade of the joint obligation to really carry out these texts. Finally, Mr. Frlec explains the Slovene way of understanding the "New Europe" as follows:

· It is a community that will include its citizens and states that will succeed in finding solutions to most of the structural questions. · It is also a community which has to realize several integration processes, such as historical, economical and political integration.

Focused on this way of understanding the "New Europe", Slovenia will contribute to remedy the leftovers of the previous division of ideological differences in Europe.

During a session of the Parliamentary Assembly of the Council of Europe on January 26th 1999, the President of the Republic of Slovenia, Mr. Milan Kucan held the speech: "A symbol of the Europe we desire".

First of all, Mr. Kucan appreciated the recognition expressed by the Council of Europe regarding his country, since it was the first international organisation to acknowledge the European and democratic orientation of Slovenia. The year 1999 is a celebratory year for the Council of Europe that was founded in May 1949 aiming to protect and consolidate political democracy. According to Mr. Kucan, Europe has never been so close to become a safe and common home of all countries taking part in the European continent. As far as the image of postsocialist societies is concerned, the main problem consists in the ineffective program of norms within the European law, instead of building up relations between the EU and societies that have different histories. Based on cooperation and solidarity, these countries could be integrated into the common European society.

58 In terms of unfounded European divisions, the ideas of the EU might be pushed back to some unspecified time in the new millenium. The Slovene President explained that being in the "waiting room" has negative rather than positive effects for the countries of Central-and Eastern Europe. The European developmental dynamic is also influenced by differences in development between smaller and larger countries as well as differences between stable and unstable security areas of the continent. In connection with this, Mr. Kucan was refering to a "third Europe" that involves certain postsocialist countries, including some that have emerged lately which are refusing the European democratic political tradition and system of values directed at the preservation of a somewhat modernized, but in fact an old social system. To be able to guarantee its own stabilization, Europe should not delay its association process. Mr. Kucan is convinced that changes are indispensable. Regarding Slovenia on a new path, the Slovene President highlighted that his country has changed fundamentally after going independent in 1991. Slovenia has carried out all of the key structural reforms. By ratifying the EU Association Agreement and conducting the appropriate procedures, full membership of his country would be forthcoming. The developmental dynamics of Slovenia are expressed by the relations held with neighbouring and other countries in Europe and on other continents.

During the 1st meeting of the Association Council between Slovenia and the European Union on February 22nd 1999 in Luxemburg, the Slovene Foreign Minister, Mr. Boris Frlec held a speech regarding the enlargement process and its criteria for participation.

This first meeting of the Association Council as well as the entry into the Europe Agreement on February 1st 1999 establishing an association between the European Communities and their member states, of one part, and Slovenia, of the other part are two events of big importance for the Slovene state. Mr. Frlec expounds that the entry into the Europe Agreement takes place during a time period when the relationship between the EU and Slovenia was developing into a partnership. Focused on this partnership, Slovenia would like to achieve full membership in the EU being the final goal. His country is determined to be admitted into EU by 2002. As far as the Slovene Foreign minister is concerned, the accession negotiations on EU membership are the most important achievements that Slovenia succeeded after recovering its independence. The accession partnership and the governmental program of re-admission regarding the European legal order- the "acquis communautaire"- represents a new element within the relations between Slovenia and the EU. In January 1999, Slovenia adopted the governmental program of re-admission by the year 2002. This governmental program provides the adoption of 200 laws and 900 official acts. Most of these laws will be passed a bill by the year 2001. Mr. Frlec expects that 2,5-4% of GNP would be needed in order to conduct the tasks deriving from the accession preparations. The Slovene government verifies the implementation of the program of re-admission on a quarterly basis. Last year Slovenia carried out several measures to adapt the country to the new principles of the PHARE-programmes which has been contributing to the implementation of the accession preparations. Between 1992 and 1998, Slovenia received about 175 million , this year another 53 million Euros will be available under the PHARE programmes. As far as the political criteria for participation in the EU are concerned, Slovenia has made considerable improvements. Nevertheless, the Slovene government is aware of the problems in the judicial area. By establishing a center of in-service training for judges, public prosecutors and public lawyers, it would be ensured that the proceedings will be finished faster.

59 As far as the economic criteria is concerned, Slovenia has been very successful. The country has since been one of the first reform states that were able to solve the economic crises during the transition period. Between 1993-1997 economic growth was about 4%. Mr. Frlec highlighted that Slovenia could achieve this rate without destabilizing the balance of payments compared to the other applicant sates.

The Slovene government is aware of the criticism expressed by the EU regarding the third criteria for participation in the EU: the capability to apply the European jurisdiction. To be able to reduce the gap between the two legislations, the Slovene government worked out a programm of 82 laws. The laws in terms of value added tax and consumer tax as well as the banking act have already passed a bill. For this reason, Mr. Frlec is convinced that the European Commission will confirm the progress that Slovenia could make. According to the Slovene Foreign Minister, the Association Council represents a great forum for his country to improve the dialogue between Slovenia and the EU by raising certain issues. Besides, Slovenia is looking forward to receiving recommendations and resolutions from this Council. His country suggests that the Association Council should make a decision with regards of the foundation of a consultative committee in order to deepen the dialogue and the cooperation between Slovenia and the EU. His country is interested in taking part within all of the programs of the EU. Another issue brought up by Mr. Frlec is the standpoint regarding the Lippizaner horses whose stud farm was founded in the Slovene town of Lipica in 1580. This issue is of big importance for the Slovene people and its solution would have a big influence on the attitude of accession to the EU expressed by his country. Slovenia would suggest to the EU not to keep the pedigree- book unless his country joined the EU. In the end of the speech Mr. Frlec stresses once more the main goal of Slovenia which would be the accession to the EU in 2002.

During the 6th Central European Presidential Conference in Lvov, Ukraine on May 14th 1999, the President of the Republic of Slovenia, Mr. Milan Kucan made the statement: "European Integration, regional connection and protection of ethnic minorities".

In his statement Mr. Kucan refered to the advantage that Europe is expecting to achieve through the fall of the in order to establish a future of peace and cooperation. The relationship between these two values should be considered, since it will become the foundation of a New World Order based on security:

· The events in the Balkans are reforcing the importance of the EU and Nato as well as an accelerated Euro-Atlantic integration. The enlargement of democracy towards Eastern-and South-Eastern Europe will also extent human rights that would entail the same value system in this region as in the rest of Europe.

· The regional integration when unifying Europe is the wealth of its multicultural, multiethnic and multispiritual framework.

· The success of the European unification project should also take into consideration the position, role and place of the Russian Federation within a common European home by means of these principles.

60 On May 27th 1999, the State Secretary for Foreign Affairs of the Republic of Slovenia, Mr. Ernest Petric held a speech at the Meeting of Political Directors regarding the Stability Pact for South-Eastern Europe.

Mr. Petric is delighted about the establishment of the Stability Pact, since it helps to find a solution for peace in South-Eastern Europe. Being both a challenge and an opportunity, it would be indispensable that as many EU member states and applicant countries as possible would join the Stability Pact. By leading accession negotiations, the Slovene government would appreciate it if all EU applicant countries could obtain full membership of the Stability Pact. His country is primarily interested in stabilizing South-Eastern Europe as well as deepening the democratization and welfare. For this reason, Slovenia would like to become a member state, too. Mr. Petric points out that his country could contribute to making the Pact more efficient and to lasting political solutions by applying the experience made within the cooperation process with and Macedonia. At the end of the speech, Mr. Petric stresses once again that this Pact represents the foundation for the stabilization and development of the region.

On June 22nd 1999, the Slovene Foreign Minister, Mr. Boris Frlec gave a statement during the 3rd meeting of the Governmental Conference regarding the accession of Slovenia to the European Union.

First of all, Mr. Frlec explained that Slovenia would be ready for full membership in the EU by the year 2002. After having some problems in the beginning, the Slovene government has now accepted a program of measures for the year 1999 that would assume the acquis communautaire. This governmental program establishes the development standards and strategies as well as the goals, politics, reformes and measures which are required for joining the EU. Slovenia has already handed in negociating positions for 19 chapters. In connection with this, Slovenia agrees with the point of view of the EU that at the moment no more negotiations would be necessary for the following chapters: 8-fishing policy, 12-statistics, 15- industrial policy, 19- telecommunications and information technology as well as 23-consumer protection policy. As far as chapter 1-the free movement of goods- is concerned, Slovenia is still preparing some additional clarifications within the framework of accepting the acquis communautaire on technical legal acts and maintenance of institutions. The country will still make further explanations about the program regarding the adaption of public orders. Furthermore, assignments will be made in respect of using the Slovene language when marking products. The Slovene government is convinced that this would not be an obstacle concerning the free movement of goods. In terms of chapter 5- company law-, Slovenia has suspended regulations that discriminated foreigners in the past by establishing the rule that the majority of the staff members had to be citizens of the Republic of Slovenia. Regarding chapter 6 -competition-, the Slovene government is preparing supplement declarations in order to avoid a distortion of competition. Within this context, Slovenia was able to make a significant progress. The legislation as for anti-trust law , public aids and distortion of competition is in its acceptance procedure. Furthermore, Slovenia has nominated a Commission that should review the governmental support. As far as chapter 25-customs union- is concerned, the Slovene government has accepted the transformation program of tax free shops to become usual shops having a gradual blade staging of the categories of taxation.

61 Concerning chapter 26-external relations-, Slovenia is going to acclaim a transition period of ten years in order to preserve the instruments of customs policy which are linked to a trade agreement with some states of former Yugoslavia contributing to stabilize this region.

62 SLOVAKIA29

On March 24th-25th 1999, the Foreign minister of Slovakia, Mr. Kukan made a statement on the extraordinary summit of the EU in Berlin.

Mr. Kukan expressed his satisfaction over that the member states of the EU declared their responsibility for further development of the integration progress in order to establish a democratic, socially and politically efficient Europe. Moreover, the Slovak Foreign minister considered the adoption of the Agenda 2000 to be of great importance on the way towards enlargement. As far as the conclusions of the summit are concerned, Mr. Kukan was convinced that a decision to initiate accession negotiations with his country could be made at the Helsinki summit in December this year accelerating the process of satisfying the Copenhagen criteria.

On April 6th 1999, the Foreign minister of Slovakia, Mr. Kukan held the presentation: "Slovakia-Prospects for Economic Co-operation and Foreign Investment Opportunities" for the Portuguese business community.

First of all, the Slovak Foreign minister talked about the significant changes that his country had gone through. Slovakia experienced setbacks during the last years in comparison with the other states forming part of the Visegrad Four group, such as Poland, the Czech Republic and Hungary. Returning back as soon as possible to the political stage and economic integration with the European Union is considered by the Slovak government to be the only option to become a modern and developed country. This decision is supported by up to 75 % of the Slovak population. Preparing for full integration into the European family to which Slovakia belongs to for historical, cultural and geographical reasons, his country could learn from that has succeeded well after its adhesion to the EU. Since Slovakia has been facing current economic problems, the Slovak government is trying to find a solution to the current economic situation which would include full integration of his country into the European economic field. Besides the country is trying to attract foreign investors by establishing a more favourable environment for them compared to other European countries. In connection with this, Slovakia has drawn up the document "The Strategy for Promoting the Entry of Foreign Investment into the Slovak Republic" defining measures in the field of legislation, finance and institutions on how to increase attractiveness of such investment. As far as the field of legislation is concerned, measures are orientated to:

C stabilize the legal system with the EU system C simplify legislation covering the transfer of ownership and acquisition of real estate

29Sources that have been used to elaborate this chapter: *Ministry of Foreign Affairs of the Slovak Republic: Mrs Veronika Lombardini, Deputy Director c/o Department of Political Relations with the EU Hlboka cesta 2 83336 Bratislava tel: 004217/5978 3182 fax: 004217/5978 3189 *Internet site: http://www.foreign.gov.sk/latest/speaches/kukan99-pal.html The whole documents are available on the INTRANET homepage http://www.europarl.ep.ec/enlargement, or on the INTERNET homepage http://www.europarl.eu.int/enlargement

63 C combat corruption

Regarding the financial field, the following incentives will be offered to new investors:

C a 100% tax break, e.g. tax holidays for a period of up to 5 years contingent on fulfilment of specific requirements C exemption from value-added tax C exemption from real estate transfer tax

In the institutional field, a framework for the effective promotion of foreign direct investment in Slovakia will be established. The Slovak government is aiming to improve its economy using out modern technologies in order to increase the transparency of privatisation. Another issue brought up by Mr. Kukan are the advantages that the Slovak economy could offer foreign investors, such as the skilled manpower that represents a cost advantage in comparison with the developed countries. By means of the Slovak market, foreign investors have the opportunity to enter the markets of the CEFTA countries, Ukraine, or Russia which have preferential trade agreements with Slovakia. Between January and October 1998, these countries received more than 32% of Slovak exports while at the same time over 55% of the Slovak exports were cancelled to member states of the EU.

At the Congress of the European Liberal, Democratic and Reform Party on April 29th 1999, the Slovak Foreign minister, Mr. Kukan held a presentation titled "Making the Difference".

By means of its enlargement and through the implementation of the Common Foreign and Security of the European Union (CFSP), the EU will be able to increase its influence on the international stage. As far as the CFSP is concerned, Mr. Kukan recommanded that Europe should increase its visibility in order to obtain a closer co-ordination of measures carried out by member states. Forming part of the European continent, the countries from Central-and Eastern Europe would like to contribute in building-up its structure. Considering the EU as a solid foundation, these countries are endeavoring for membership in the Union with a view to join the common market, to reinforce their economic and political position as well as assure security. Concerning the accession to the EU, Slovakia should have fully adopted the entire acquis within the CFSP which is also connected to the Schengen acquis. Regarding this, Mr. Kukan explained that he is in close contact with the Minister for Home Affairs with a view to harmonize the procedures among the applicant states. His country is about to discuss this issue among the Visegrad Four countries whose member states are Hungary, Poland, the Czech Republic and Slovakia aiming to coordinate their common steps on the way to EU membership. According to the Slovak Foreign minister, it should be taken into account that only through the respect of the cultural differences among the states and regions, unification in Europe could be achieved. Besides, Mr. Kukan annotated the fundamental difference which was made by the last parliamentary elections. The 84% election turnout of the Slovak citizens stands for the desire of change as well as for the Slovak membership in the EU as a democratic and prosperous country. The new government is supported by 60% of voters and holds a three-fifth constitutional majority in the parliament. Since Slovakia was left out of the first group of applicant countries

64 due to the non-fulfilment of the political criteria focused on the decision of the European Council in July 1997, one of the main goals of the new Slovak government is the accession of the country to the EU. For this reason, the new government has been strengthening the democratic institutions. Being accused of suppressing the rights of national minorities, the office of deputy prime minister for minorities was set up which is held by a representative of the Hungarian national minority. Slovakia endeavours for a good coexistence among the persons of different ethnic groups in the country. Furthermore, the new government has passed a law on direct presidential elections in a way that the candidate chosen by the population would contribute to enhancing democracy as well as the stability of the political system in Slovakia. In terms of the preparation for EU membership being a comprehensive process, the Slovak government set up a number of tasks to be carried out in the political, economic, institutional and legislative areas. Even if the satisfaction of these conditions is difficult, Mr. Kukan was convinced that the current ruling coalition would work for a successful completion. The inclusion of Slovakia into the first group of applicant states for enlargement would set a positive sign for his country.

At a session of the Slovak Parliament on May 12th 1999, the Slovak Foreign minister, Mr. Eduard Kukan delivered a speech to the report on the implementation of Slovak foreign policy objectives in 1998, to the current situation and foreign policy goals in 1999.

First of all, Mr. Kukan would like to emphazise that the priority of the Slovak foreign policy is the integration of his country into the Euro-Atlantic political, security and economic groups, such as the NATO, European Union, OECD and in the UNO. Since the period before the general elections in 1998 was marked by inconsistent measures carried out by the government and Slovak foreign ministry, the Slovak integration into the European Union got affected. Therefore, the documents for Accession Partnership were handed over to six of the associated countries without Slovakia. The Slovak government and its Foreign Ministry have increased their efforts in order to renew relations with the neighbouring countries, EU and NATO-member-states. Due to Germany's economic capacity, position in European and international politics, its EU presidency in the first half of 1999, the Slovak relations with Germany have a special position in Slovakia's foreign policy. Mr. Kukan appreciated the German support for the acceleration of Slovakia's integration to the NATO, EU and OECD. The relations with France and Italy are considered to be of great importance with a view to reinforce European and Euro-Atlantic integration aspirations. Regarding the other member states in the EU, Slovakia would like to deepen the political dialogue, thus the country could obtain assistance with the integration process and develop economic cooperation. In the context of the neighbouring countries, another main target of Slovakia's foreign policy is the establishment of good relations with Austria, the Czech Republic, Hungary, Poland and the Ukraine. In the field of regional co-operation, Slovakia has been renewing the co-operation within the scope of Visegrad Four group while improving regional co-operation, for instance the CEFTA and Central European Initiative. To be able to carry out all these objectives in 1999, it would be indispensable to improve the staff of the Foreign Ministry and the Slovak embassies. Highlighting that the main objective of the Slovak government in 1999 would be the advancement of the country to the first group of countries negotiating for EU membership, Mr.

65 Kukan explained that the open dialogue between Slovakia and the EU is supported by the structures specified in the Europe Agreement. Furthermore, the accession preparation focused on the updated National Programme for the Adoption of the Acquis Communautaire will be intensified.

Regarding national minorities' rights in Slovakia, preparatory work, such as a report on the implementation of the Council of Europe Framework Convention has been done. This report is scheduled to be handed to the Council of European Secretary General in early 1999. By organizing expert meetings in Bratislava in March and May 1998, the Foreign Ministry was able to compare the current Slovak legislation on the use of national minorities' languages with the international pieces of legislation and documents that Slovakia will sign.

During the International Colloquium about the enlargement of the European Union in Bonn on June 1st 1999, the Slovak Foreign minister, Mr. Eduard Kukan held the speech "The Economic and Social Transformation: Expectations of the Candidate Countries toward the European Union".

The full integration into the EU being the Slovak priority target, Mr. Kukan is aware that the preparation for joining the EU is a comprehensive process that includes political, economic, legislative and institutional measures. The parliamentary elections in fall 1998 proved that the majority of the Slovak population is in favor of democracy. The Slovak Foreign minister considered these election results to be prerequisites for the renewal of the functioning of democratic institutions. Another primary objective is the economic transformation of his country. In connection with this, Mr. Kukan affirmed that the development of the Slovak economy since 1989 entailed strong economic growth, while transformation was founded on the change of ownership and the introduction of competition. Data from the Regular Report on Slovakia's progress towards accession indicate that the per capita GDP measured in 1997 amounted to 47 % of the EU average, placing Slovakia third behind Slovenia and the Czech Republic. Despite the high economic growth rate of 5 to 7% during the last five years and a low inflation, Slovakia now has to face a state budget deficit, balance of trade deficit, high foreign debt and unemployment. For these reasons, the Slovak government approved the document "Plans to Address the Macroeconomic Imbalance and Competitive Capacity of the Slovak Economy" in January 1999 which should contribute to accelerate the restructuring of the Slovak economy. As far as the Slovak government is concerned, the inflow of foreign investment is one of the key elements that would entail the success of the restructuring of the Slovak economy. In connection with this, Slovakia passed the "Strategy for the Support of Foreign Investment" in March this year. At the end of 1998, the "Joint Assessment of Slovakia's Medium Term Economic Policy Priorities" was adopted. Regarding the strategy for accession to the EU, the representatives of Slovakia and the European Commission have agreed on the preparation of a joint Slovak and European Commission document on key macro-economic and structural policies to be implemented. By adapting to the demanding conditions of the Union's internal market, Slovakia will increase its capability to become a functional market economy. Mr. Kukan explained that his country will take into account the temporary difficulties that most citizens will have to face in the transition period when the economic policy measures will be implemented. Therefore, the Slovak government is gradually completing a number of steps with

66 a view to help the lowest-income groups of the population, for instance the package of social measures adopted in January 1999. As far as the high unemployment rate of 16,4% is concerned, the Slovak government is working to stimulate the growth of employment being connected with economic growth as well as economic restruction. Another issue brought up by Mr. Kukan is the financial assistance provided by the Phare programme of the EU which is the basic instrument of the pre-accession strategy. He considered the course of the Phare projects to be satisfactory.

The approval of Agenda 2000 at the Berlin Summit was appreciated by Slovakia since it will be one of the key conditions for the Union's enlargement.

On June 1st 1999, the State Secretary of the Ministry of Foreign Affairs of the Slovakia, Mr. Ján Figel held the presentation: "Slovakia and the EU: The Growth of Economic Opportunities" in the Philip Morris Institute for Public Policy Research in Brussels.

First of all, Mr. Kukan pointed out the key facts regarding relations between Slovakia and the EU:

C One of the main targets of the Slovak government is the implementation of a policy with an orientation towards values of freedom, democracy and solidarity.

C The High Level Working Group (HLWG) between Slovakia and the European Commission is an instrument of great importance in order to deepen the fulfilment of the short-term priorities of the Accession partnership.

C The Economic reform is the priority task of Slovakia's preparation for the EU membership.

In January 1999, the Slovak government adopted the "Programme designed to solve macroeconomic imbalance and to improve competitiveness of the Slovak Economy" with a view to carry out the restructuring of the Slovak economy. According to Mr Kukan, the 1999 State Budget is focused on the predicted parameters for 1999, such as a decreased growth in GDP in constant prices, higher inflation rate and higher unemployment rate. The EU is the most important trade partner of his country. As far as the pre- accession process is concerned, the Slovak Foreign minister made a summary of supplementary information:

C One of the priority parts of the pre-accession strategy is the building of institutions being required for the implementation of the acquis communautaire. C In order to approximate the legislation, a whole range of norms have been prepared. C Through the Phare programme, Slovakia received 45.9 million EUR in 1998.

On June 2nd 1999, the State Secretary of the Ministry of Foreign Affairs of Slovakia held the speech: "Slovakia on the Road of Accession to the EU".

In the first part of his presentation, Mr Kukan gave an overview regarding the political field. He considered the current governmental coalition to have the ability to successfully complete the tasks in the political, economic, institutional and legislative area. The new government has reinforced the functioning of democratic institutions of the state. Unfortunately, this post- 67 election development was not recognized in the November 1998 Regular Report of the European Commission. By emphasizing the good prospects of Slovakia for launching negotiations on EU membership, the conclusions of the Vienna European Council were really appreciated by the Slovak government. As far as the Helsinki summit is concerned, Mr Kukan is convinced about a possible invitation of his country in order to open up negotiations on accession to the Union. The measures that were undertaken with a view to fulfill the political criteria have strengthened the the functioning of the democratic institutions as well as the rights of the opposition and national minorities. Furthermore, the constitutional statute on direct presidential election has been taken into account which sets out in more detail the powers of the in the parliamentary framework. Regarding the use of minority languages, the Slovak government is underway to pass a bill.

Since the Slovak government is aware of the priority problems in the economic and legislative areas as well as the institution-building and staff training of public administration for membership of the EU, a document setting the time-table ("Harmonogram") containing 86 tasks and 2 recommendations for individual sectors was drawn up. As regards to the Slovak economy, the government is currently facing the problem of their state budget deficit. Therefore, a package of economic measures was adopted which should improve the competitiveness of Slovak economy. The country is aiming to stabilize the economy within the next two years. Concerning the objective of building up necessary structures in Slovakia, the government has been speeding up the pace of approximation of the legislation, for instance in the environmental field. In the second part of his presentation, Mr Kukan pointed out activities in the period preceding the adoption of the next Regular Report of the European Commission. During the 5th Association Council of the EU held on April 27th 1999 in Luxemburg, the significant progress in the fulfilment of Copenhagen political criteria and the economic programme of the Slovak government were taken into consideration. Nevertheless, the banking and financial sector should be emphasized more. The Slovak government appreciates the positive view of the functioning of the High Level Working Group (HLWG) which was initiated by the European Commission, since their work has contributed to diminish the deficiencies in the political, economic and institutional areas. The third part of the presentation represents Slovakia's point of view of the Central European region. Mr Kukan suggests that the Associated Countries should enter the EU on the basis of specific and individual evaluation of its readiness. In connection with this, the V-4 countries, such as Slovakia, Poland, Hungary and the Czech Republic, could join the EU as a single group of countries in the beginning of the next century. The strategic goal of Slovakia would be to enter the Union together with these countries.

During the Crans Montana Forum on June 26th 1999, the Foreign minister of Slovakia, Mr Kukan gave the presentation: "The Enlargement of the European Union: Perspective and Challenges".

In the context of fulfilling the short-term political criteria, the National Council of Slovakia passed the Act on Direct Elections of the President of the country in March 1999 with a view to reinforce democracy and stability of the political system. Regarding minorities in Slovakia, the Coalition Council discussed the Law on minority languages in June 1999 which is expected to be passed in September 1999. According to Mr

68 Kukan, this step should entail a good coexistence between persons of different ethnic origin in his country as well as the strengthening of internal cohesion. Another main target brought up by the Slovak Foreign minister in order to take on the obligations of membership, is the approximation of the legislation. In March 1999, the bilateral phase of acquis screening was openend with applicant states of the second group. The last bilateral screening meeting on Chapter 7 (Agriculture) will be accomplished in September 1999. Furthermore, Mr Kukan presented his comments on the screening process being prepared by his country and drawing up adequate institutional mechanisms. This process should yield to a problem-free transition to actual negotiations. The Slovak Foreign minister finally stressed again that the country is conducting intensive preparation for the EU membership. By the results, Slovakia succeeded in fulfilling the Copenhagen criteria Mr Kukan judged an adoption of opening accession negotiation on EU membership with his country at the Helsinki summit to be quite probable.

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