Bergedorfer Round Table 121 PROTOCOL Welcome Weizsäcker I would like first of all to welcome President Koivisto and thank him very much for agreeing to take part in this debate; likewise our welcome and thanks to the Minister of Foreign Affairs, Mr Tuomioja, who will in a moment be giving the introductory talk on the topics before us. I should like once again to thank Minister Jakobson for his after-dinner speech yesterday, which put the fundamental problems in their historical context. Last, but not least, thanks are due to Minister Iloniemi, who has agreed to chair this discussion. It is always a special pleasure to visit Finland, a country of great hospitality, a country where the air is fresh. And a country whose support and advice are vital to Europe. The CSCE summit conference, which ended in Helsinki with the Final Act in 1975, was not merely a multilateral confirmation of the status quo following the second world war; above all it breathed new life into east-west relations, which was of benefit to all sides. Since Finland joined the European Union we have seen the entire Baltic region - fuelled by the aspirations of other Baltic Sea States to become members soon - grow into a unique region within the European Union. Some people even go so far as to say it is a model region in the making. In no other part of this big disparate entity we call Europe are nations linked, both by a shared inland sea and by their long history of close cultural, economic and academic relations, as intimately as the Baltic Sea States. We are surely not aiming too high if we include the words "prosperity and stability" in the meeting`s title, in the hope of soon being able to exchange the question mark behind it for an exclamation mark. We are likewise conscious of the fact that in the Baltic Sea region Russia is more closely bound to the west than anywhere else along its European borders. This too is an exceptionally important fact and a topic on the agenda. Permit me, finally, to make one further remark: this round table was not initiated by a state body but by the entrepreneur and industrialist Kurt A. Körber, a philanthropist, a man with a sense of responsibility, who felt an urgent need to set up an international forum for the frank exchange of ideas and opinions; a forum that has been proving its worth for more than forty years, particularly in the dialogue between East and West. We are delighted to have a further opportunity today for such talks in Helsinki. The Baltic Sea (PDF-Version) Page 1 Bergedorfer Round Table 121 Iloniemi I wish first of all to thank the Körber Foundation for choosing Helsinki to be the venue of this conference. Helsinki is a natural place on the Baltic for discussing affairs that have relevance to Baltic developments. Our first theme is what potential does the Baltic region have to offer politically and in economic terms in North-Eastern Europe. We are privileged to have two speakers who will enlighten us on the topic. The first speaker will be the foreign minister of Finland, Dr Erkki Tuomioja, followed by former Minister Haarder from Denmark. But, may I say that the congregation that we have today here is unique in the sense that we have two former heads of states and a wide range of highly relevant careers and experience among the participants so that we have a truly expert group to tackle our topic. Tuomioja What potential does the Baltic region have to offer? I will try to answer this from a political rather than an economic point of view. On the economic side I would just remind you of the fact that the Baltic region is one of the most dynamic regions in Europe and in the whole world today. I think we were reminded of that this week when we had the ministerial council meeting of the Baltic Sea states in Hamburg, in the richest region in the European Union. It is an example also for some of those who are still poor around the Baltic Sea, which shows the potential that the Baltic Sea region has to offer, indeed in international trade, it is one of the biggest today`s players on the world. But, as I said, I will focussing more on the politics of the region and concentrating on three closely interconnected aspects of the ongoing transformation process, namely the Northern Dimension of the EU, the enlargement of the EU and the integration of Russia in pan-European cooperation. The Northern Dimension has become an established concept in the Union and among its partner countries. It has also become an integral part of the external policies of the Union. This regional initiative of 1997, has directed the thinking of the northern players. It has given an impetus to new strategic thinking not only among governments but also at regional and subregional levels within non-governmental organizations, private business and, last but not least, networks like this one here today. The Northern Dimension is a partner-oriented EU policy. The key political objective is to engage Russia in European integration for closer cooperation with the European Union. The only way of doing this is to counteract tendencies towards any new dividing lines along the border between the expanding European Union and the Russian Federation. Russia has to be convinced that the Union will remain its main partner in the future. The candidate countries to the EU in the region, Estonia, Latvia, Lithuania and Poland, and the EEA-countries, Iceland and Norway, as well as Russia, can make their voices heard in the Northern Dimension context and through dialogue influence the Northern Dimension agenda in close cooperation with the Commission. As not everyone necessarily is entirely familiar with the ND-concept, I will just mention the key sectors in the action plan for 2000 to 2003. They are energy, transport, the information society, the environment, and natural resources, nuclear safety, public health, trade and business cooperation as well as investment promotion, human resources development and research, justice and home affairs, regional and cross-border cooperation and Kaliningrad. The list is quite comprehensive and if anything was left out, it was possibly culture. The action plan is not a list of priority projects but the basis for the implementation of the Northern Dimension. It is a political recommendation and a reference document to be taken into account in preparing projects and activities initiated by the EU member states and other partners. Joint financing of community programs through international financial institutions, national programs and the private sector is essential. Without considerable funding from national resources and from the international financial institutions the implementation of the action plan will be difficult. National resources here also mean the partner-countries and funding from the private sector. Obviously those who are willing to contribute the most to projects will stand to gain most. The need for joint action involving such programmes as Tacis, Phare and Interreg is widely recognized. Now we expect the interface between Phare and Tacis to be examined with a view to enhancing cross-border cooperation between the future European Union and Russia. The Baltic Sea (PDF-Version) Page 2 Bergedorfer Round Table 121 In the case of the international financial institutions, it goes without saying that they follow their own rules and policies when making decisions. Political recommendations like the Northern Dimension action plan cannot play a decisive role in their actions. The European Bank for Reconstruction and Development (EBRD) recently presented an initiative on a Northern Dimension Environmental Partnership. Moreover, the new possibilities for the European Investment Bank (EIB) to take part in some environmental projects in Russia must be seen as a promising start to its future involvement in the ND region. As for Northern Dimension financing one could say, in fact, that there is no lack of resources as such but there is a lack of bankable projects and a lack of commitment from the recipients, including Russia. I say this because we have several examples of projects where the financing is, in principle, in place but we still have difficulties in coming to terms over the actual implementation, which means that Russia, for the time being, is left without sorely needed funds, which we have already reserved. Improvement in the investment climate, including real and effective action against corruption, which unfortunately still exists in countries around the region, is indispensable in paving the way for implementation of Northern Dimension policies. The Swedish EU presidency has adopted an active role in developing the Northern Dimension and has concentrated especially on four priority areas: the environment, nuclear safety, the fight against organised crime and Kaliningrad. Together with the Commission Sweden will prepare a full report on implementation for the Gothenburg European council next week. In January this year, the commission presented its policy on the Kaliningrad region. This now forms the basis for discussion of possible steps to further promote cooperation between Russia and the enlarging EU. As a so-called pilot region in the relations between the EU and Russia Kaliningrad has attracted great interest on the part of several players. I think we should note with satisfaction that Russia has included the governor of Kaliningrad as a delegate to a ministerial meeting in Luxembourg on the Northern Dimension and to the recent Baltic Sea states council meeting. Discussions continue in the Partnership and Cooperation Agreement (PCA) subcommittees. Practical solutions must be found on ways now to deal with the Kaliningrad enclave after the next enlargement stage.