Main Directions of Euregio Karelia 2020 Contents Main Directions of Euregio Karelia 2020 Foreword 1 SWOT analysis of the Euregio Karelia area....................................................................6 1.1 Strengths.........................................................................................................6 1.2 Weaknesses.....................................................................................................7 1.3 Opportunities..................................................................................................7 1.4 Threats.............................................................................................................7 2 Euregio Karelia 2020.....................................................................................................8 2.1 Target State 2020.............................................................................................8 2.2 Means of Achieving the Target State.................................................................8 3 Focus Points of Euregio Karelia Cooperation.................................................................9 3.1 Interest Representation.....................................................................................9 3.2 Infrastructure and Connections.........................................................................9 3.3 Business.........................................................................................................10 3.4 Social well-being.............................................................................................11 3.5 Cross-section themes......................................................................................12 4 Conclusion..................................................................................................................13 Foreword Euregio Karelia is a border area between Finland and Russia, as well as a cooperation area between the re- gions of Kainuu, North Karelia and Northern Ostrobothnia in Finland and the Republic of Karelia in Russia. Euregio Karelia was founded on the 24th of February 2000 with a contract signed by representatives of the regional councils of Kainuu, North Karelia and Northern Ostrobothnia from Finland, and a representative of the government of the Republic of Karelia from Russia. Euregio Karelia was the first Euroregion area estab- lished on the land border between the European Union and the Russian Federation. The basis of Euregio Karelia is the common aim of the partner areas to improve living conditions of inhabit- ants in the area via cross-border cooperation. As stated in the partnership contract, Euregio Karelia forms a foundation for contact between people, economic organizations and administrative bodies, strengthens and develops good neighbor relations, and protects the common cultural heritage of the partnering areas. The goal is to form and implement cooperation plans and projects to promote the development of border areas, as well as to eliminate any obstacles of cooperation. Euregio Karelia does lobbying towards the central administrations of Finland and Russia, as well as towards the European Union, on themes concerning funding, visa exemption, transport connections, communication, population well-being, and other border-crossing cooperation themes. Euregio Karelia directs on a strategic level the cross-border cooperation funding programmes of its area. The operational environment of Euregio Karelia has changed during the last decade. Changes were brought along by, for instance, the growth of cross-border passenger and cargo traffic, increase of economic activity and changes in the legislation and contractual terms regulating cooperation. In their 10th anniversary meeting in December 2010, the board of Euregio Karelia decided to prepare a stra- tegic document to outline cooperation up until the year 2020. The document “Main Directions of Euregio Ka- relia 2020” was prepared by the secretariat of Euregio Karelia. Using present state analysis, it states the methods and main areas of cooperation until the year 2020, and highlights shared cooperation projects. The background memo of the document (Operational Environment of Euregio Karelia 2000-2013) describes the present circumstances of cross-border cooperation and their changes during the previous 10-year period. The programme “Main Directions 2020” is based on a shared evaluation of previous changes in the Eure- gio Karelia operational area, as well as on future prospects. A significant and expected change is the pos- sible visa-free regime between the European Union and Russia. This would mean considerable growth of border traffic inside the Euregio Karelia area. Another factor to take into notice is the membership of Rus- sia in the World Trade Organization (WTO), which brings in new possibilities not only to business and trade, but also border traffic. “Main Directions 2020” highlights the central role of Euregio Karelia in the cross-border cooperation between Finland and Russia. Euregio Karelia functions as an umbrella for developmental projects and other meas- ures that promote cooperation in the area. “Main Directions 2020” is a strategic signpost for the preparation and implementation of the European Neighbourhood Instrument programme CBC Karelia 2014-2020 in the Euregio Karelia area. Materialization of the goals defined in this document requires a high level of commitment. This is why we find it very important that local authorities take into notice the outlines and measures presented in this document, and implement them in their own developmental programmes and decisions. We rest assured that the outlines and concrete operational suggestions in this document will be carried out in the public and private organizations operating in the Euregio Karelia area, and that materializing goals stat- ed on this common program will create new markets, businesses and jobs, as well as strengthen the area’s competitiveness. Thus the common goal of Euregio Karelia, to improve the area’s well-being on both sides of the border, will actualize. The board of Euregio Karelia will follow the implementation of the programme and will make necessary sug- gestions of proceedings to ensure the actualization of goals presented in the programme. The board of Euregio Karelia has approved this document in Kostomuksha on the 20th of May 2014. Chairman of the Board, Republic of Karelia Chairman of the Board 2014, Finland Deputy Head and Minister of Regional Mayor of Kainuu Economic Development of the Republic of Karelia Regional Mayor of Northern Ostrobothnia Regional Mayor of North Karelia 5 1 SWOT analysis of the Euregio Karelia area The SWOT analysis below describes in a simplified manner the strengths, weaknesses, opportunities and threats of the Euregio Karelia area. This analysis sums up the strategic basis of the “Main Directions 2020” document. Strengths Weaknesses • Developing operational area • Economic slowdown • Common cultural heritage (the Kalevala, Kareli- • Current visa policy and border formalities slow an descent, Orthodox Christianity) down cooperation • Rich natural resources • Deficiencies in infrastructure and transport con- • Diverse nature nections • Shared border, three international border cross- • Border crossing points are not prepared for vi- ing points sa-free access • Positive experiences on cooperation • Deficiencies in knowledge of language and cul- • Increased cooperation ture • High-level and versatile education and research • Vast, sparsely-populated areas • Good neighbor relations, functioning relations • Negative notions with authorities • Lack of up-to-date information • Lack of funding sources in the area Opportunities Threats • Development of foreign trade and economy via Russia’s membership in the WTO • No sufficient competence for a visa-free regime • Large projects in the area open up new cooper- • Continued concentration of population into ur- ation possibilities ban areas • Diversification of border area cooperation • Age group distribution: weakening of the depend- • Development of service infrastructure and trans- ency ratio port connections • Lack of competent workers • Development of information technology, remote • Funding instruments and resources reducing jobs and services • Actions of state authorities do not support the • Visa-free policy and facilitation of border formal- development of border areas ities • Decision-making moving further away from the • High-level cultural offerings and travel possibil- area ities • Development of transtraffic • Continuation of border cooperation programmes (ENI CBC) between the EU and Russia • Euregio Karelia as a strategic and political strength in cross-border cooperation 1.1 Strengths ing expanses, thousands of lakes, rock formations, swamps, forests, villages and cities. The biodiversi- ty of clean, expansive nature is vast and unique, due Rich natural resources and their sustainable use par- to for example uninhabited border areas. ticularly stand out as strengths of the Euregio Karelia area. By increasing the degree of processing, natu- High-class and versatile education and research in ral resources in the area can be utilized even better. the area make cooperation possible in various fields, Nature tourism is strongly developing in the area. for example in mining, forestry and energy produc- Euregio Karelia is a diverse area, where the scen- tion. Common culture stimulates both business life ery alternates between rugged hills and fells, low-ly- and arts. 6 The geographical