Deputy Minister of Foreign Affairs Kim Traavik

Norway and Estonia – New opportunities within the enlarged EU/EEA

Tallinn, 16 November 2004

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Excellencies, colleagues, ladies and gentlemen,

On behalf of the Norwegian Government I have the pleasure of welcoming you all to this conference on new opportunities for co-operation between Norway and Estonia within the enlarged EU/EEA. The EEA financial mechanisms pave the way for co-operation in a variety of fields, and open opportunities for a wide range of actors. I look forward to signing the memorandum of understanding (MoU) on the Norwegian financial mechanism in Tallinn Town Hall later this morning. I am also delighted to see such a broad turnout here today – with representatives from the business community, the social partners, civil society, academia, and central, regional and local authorities.

Ladies and gentlemen,

Norway and Estonia’s historical ties date back more than a thousand years – to the times when Scandinavian Vikings and Baltic seafarers traded goods and explored each other’s territories. Our contacts continued through the Middle Ages and the Hanseatic period and remained close up to recent times. I am proud to note that Norway never accepted the Soviet annectation of Estonia during the period 1941-1991.

Estonia has come a long way since 1991. And Estonians have every right to be proud of their country’s achievements in the twelve years since Estonia’s reemergence as an independent nation.

When the Berlin wall fell, and the new, united Europe emerged, Norway and Estonia resumed active relations. Today we enjoy extensive co-operation in the fields of politics, business and culture. We are partners in the Nordic Baltic Co-operation and in the Council of the Baltic Sea States. We are allies in NATO and partners in several multilateral organisations, such as the OSCE, the Council of Europe and a number of UN agencies.

Since 1 May Estonia has been a member of the EU, and we are now partners in the European Economic Area. We are both part of the internal market. This is the start of a new and important era in our bilateral relations. The enlarged EEA offers new opportunities for Norwegian and Estonian economic co-operation, trade and investment.

Estonia has enjoyed impressive economic growth for several years. This has attracted considerable investments from Norwegian companies. A large number of Norwegian companies are now established in Estonia in the areas of energy, retail, real estate and shipping, to mention a few. I am pleased to note that many of these companies are represented here today.

In the cultural field, a variety of contacts have developed. There seems to be great interest in both Norway and Estonia in getting to know each other’s cultures. Over the last decade, Norwegian and Estonian students have participated actively in exchange programmes. A good number of Estonian students now speak Norwegian, and vice versa. These contacts are important. People-to-people contacts really are the backbone of friendship between nations.

Ladies and gentlemen,

Views still differ in my country as to whether Norway should join the European Union. There is, however, broad consensus among Norwegians that we too must take our share of the responsibility for ensuring peace, stability and prosperity on our continent. Accordingly there is wide support for the idea that we must contribute to bridging the social and economic gaps in the enlarged union. And this is what the EEA financial mechanisms are all about.

Norway wants to be an active and constructive partner in Europe. We wholeheartedly supported the enlargement of the European Union. The enlargement was a great achievement, which will contribute significantly to greater political stability and economic development in Europe. This is of course also in Norway’s interest. The fact that the EU remains open for further enlargement is in itself one of its most powerful external policy instruments, and is a powerful incentive for economic and political reform in countries aspiring to get closer to the EU.

Close and mutually beneficial ties between the European Union and Norway are a top priority in Norwegian foreign policy. The foundation for this policy is the European Economic Area Agreement, which makes Norway part of the EU internal market. This is important since more than 70 per cent of our foreign trade is with the 25 EU member states.

As a Schengen partner, Norway is associated with important aspects of EU co-operation in the field of justice and home affairs. This means that Norway and the 13 EU members that are part of Schengen have a common external border, and that citizens from these countries may travel without passports in the Schengen area. We also take part in the Dublin co-operation, which gives us the same asylum regime as the other Schengen countries.

Norway is closely aligned with the EU on a range of foreign and security policy issues. We share the basic foreign policy outlook of the EU, and we see the value of a distinct European voice in the world. With our EU partners, we share a strong commitment and an active approach to multilateral co-operation.

Norway and Estonia share the goals of preventing new dividing lines in Europe and promoting democratic and economic reforms and development, both in the European neighbourhood and in the EU itself. A result of the enlargement is that the EU and the EEA have new immediate neighbours. The EU Northern Dimension with its Action Plan and partnerships are important for both our countries.

Norway believes that third-party participation in projects under the umbrella of the European Neighbourhood Policy will complement and reinforce the efforts of the EU. We would like to explore, in co-operation with Estonia and the Commission, whether the financing mechanisms could also play a role in this respect.

Ladies and gentlemen,

Over the next five years, Norway’s contribution under the two financing instruments to bridging economic and social gaps in the enlarged EU will amount to some 227 million Euro annually. Iceland and Liechtenstein will also contribute to one of the two financial mechanisms established. We see this as an investment in a more stable, more prosperous and more integrated Europe. We also see it as a contribution to a well functioning internal market, to which we attach fundamental importance.

I want to emphasise that the beneficiary countries will set priorities for the use of the funds, in dialogue with us. Similarly, the beneficiary countries themselves will propose, develop and implement the projects and programmes. But the sort of partnership and networking which we hope will come out of this conference could be helpful in that process.

There will be annual meeting to review the progress of the implementation of the financial mechanisms. For the Norwegian Government it is essential that this substantial financial support leads to concrete results, and that progress in the priority areas can be accounted for. In addition there are some crucial concerns that must be carefully addressed:

• There must be transparency in the decision-making processes on both sides.
• Project proposals must be solicited through open “calls for proposals” to ensure the participation of a broad range of actors.
• The participation of regional and local authorities should be ensured.
• Inclusiveness and the participation of civil society are important. Hence, I am very happy to see that Estonia will create a special NGO fund for this purpose.

And furthermore we must ensure that

• projects and programs provide equal opportunities for men and women,
• that they promote sustainable development,
• that the activities are compatible with EU-funded activities, and that
• activities undertaken under the financial mechanisms include adequate anticorruption and financial control measures.

Ladies and gentlemen,

Norway is by far the largest contributor to the EEA financial mechanisms, and Estonia is an important partner country. Approximately 6.5 million Euro is allocated to Estonia annually. We are confident that the co-operation under the financial mechanisms will strengthen the bilateral ties between our two countries, and not only at the level of government.

Hopefully it will also facilitate contacts and pave the way for co-operation between our two countries’ business communities, local and regional authorities, and civil societies.

In fact this is why we came up with the idea of holding this conference in the first place. The purpose of today’s conference is therefore to provide interested parties in Norway and Estonia with an arena where they can come together and learn from each other, team up in new partnerships and further develop partnerships that have already been established. We hope and trust that contacts and partnerships today will lead to tangible results, including concrete co-operative projects.

A solid platform for co-operation has already been established in areas such as health, regional policy and language training. In other areas, co-operation still needs to be developed. At the same time, the increased mobility of persons, goods, capital and services is a good thing, but also has unintended side-effectes such as increased organised transnational crime. There is growing awareness and particular concern in Norway about trafficking in human beings. New common challenges such as these can only be met effectively through increased co-operation.

The social dialogue that takes place in the tripartite co-operation between governments, employers’ organisations and trade unions is important for reducing welfare gaps and generating socially responsible and sustainable economic growth. We therefore hope to see co-operation projects between the social partners in our two countries under the financial mechanisms.

Ladies and gentlemen,

Today’s conference will focus particularly on health, the environment and regional development.

I think it is fair to say, with all due modesty, Norwegian participants have relevant competence and expertise to offer in all these areas. We believe that close interaction between the private and the public sector is the best approach for achieving social and economic development.

Health is an important priority in the MoU. In the area of communicable diseases, Norway and Estonia have co-operated closely within the framework of the Council of the Baltic Sea States. We would like to extend this co-operation under the new financial mechanisms. Norwegian institutions also have extensive expertise when it comes to children with special needs.

Norway has long experience in implementing EU directives on the environment. As a major energy producer and exporter, we also have extensive experience in energy-related issues, including energy efficiency at all levels.

Norway and Estonia have already developed extensive regional co-operation, and Norway is an active partner in the EU Interreg programmes. Strong public-private partnerships at the regional and the local level are needed to achieve the objective of sustainable development. Norway also has a great deal of experience in the field of local governance. We are looking forward to strengthening our co-operation even further in this field.

Ladies and gentlemen,

I would like to conclude by thanking all those who have contributed to making this event possible. I am confident that this conference will provide a good setting for launching the EEA financial mechanisms in Estonia, and that the mechanisms will prove to be a valuable investment in our common future.

Thank you.