The point of departure for Norway’s policy on Europe is this: Europe’s future is Norway’s future. We have interests to pursue in Europe. And we have a clear responsibility to take our share of the burden for securing peace, stability and progress as a once divided Europe now grows together.

At two occasions, in 1972 and 1994, the Norwegian government drew the conclusion that full membership was the best option. At both occasions the voters narrowly rejected that idea.

When will there be another application? Many of our European friends and partners ask this question. The Labour Party Government advocated in favour of membership in 1994. Since then we have based our cooperation with the European Union on the outcome of the referendum. From this foundation we seek every opportunity to maintain and further develop our relations with the European Union.

But Europe is changing, the European Union is changing and Norway must keep eyes and ears open. The Labour party convention this fall will debate our approach for the next parliamentary term (2001-2005). We will be seeking the necessary flexibility to consider what option serves Norway best as the European Union prepares for enlargement and faces other major challenges of historic proportions.

The referendum in 1994 was a no to membership. But we did not vote ourselves out of Europe or European co-operation. This is reflected in the European Economic Area Agreement that gives us access to the Single Market as well as European programs on Research and Development on equal conditions with the members of the Union.

Among the European Union member countries we find our closest political partners, 11 of our 16 allies and our most important trading partners. We have a common border of 2300 kilometres with neighbouring EU-member countries Sweden and Finland. European rules and regulations for the integration of the Single Market are continuously incorporated in Norwegian legislation through the EEA Agreement.

The Schengen Agreement gives us the possibility to maintain the achievements of the Nordic Passport Union and opens for a close co-operation on immigration and the combat of drugs and organised crime.

Our relations with the European Union remain the cornerstone on our policy on Europe. The EU continues to be an instrument for peace and stability in Europe. It provides the most comprehensive, most successful and most dynamic framework for regional co-operation ever experienced. We must never forget that this pooling of sovereignty at European level is a means to achieve stability, prosperity and security for the peoples of Europe. We need at strong, dynamic EU-co-operation to cope with the challenges linked to employment, environment, welfare and international crime. Even as a non-member, Norway stands ready to shoulder its part of the responsibility.

And we too have to study the consequences of a changing European Union. The EEA agreement safeguards important interests relating to traditional trade. It does not provide an answer to the emerging areas of cooperation; on defence and security, on a common currency or on the new and ambitious goals for Europe.

The Tampere and Lisbon-summits are milestones in the direction of a Union based on strong political co-operation. Soft law and soft integration are supplementing the traditional EU-method of harmonisation.

Our arrangements for close co-operation with the European Union through the EEA and Schengen gives our experts a possibility for participation and co-operation at technical level with the Commission and, in the case of Schengen, the Council. But we see clearly that this cannot replace formal co-operation at official and political level. The EU is developing new instruments as benchmarking and scoreboards with even greater emphasise on policy-co-ordination. Our co-operation with the EU cannot be complete as long as we are not in a position to participate in the real decision-making bodies of the Union, the Council and the Parliament.

Historians focus on 1989 as the year when the tide turned. Yes, the fall of the Berlin Wall was one of the key events of the century. But the real changes lie ahead. It is now – at the doorsteps to the 21 ^st> century that we will be building the new and undivided Europe. Now come the hard decisions, for the European Union, but also for Norway.

The ongoing Intergovernmental Conference is discussing major reforms of the European institutions and a Charter of Fundamental Rights is being developed. We face a real possibility that our Nordic neighbours will introduce the common European currency. It is both a political obligation and a practical necessity for my Government to develop even further Norway’s relationship with the European Union. Rather than focussing on the problems, we will take advantage of the opportunities that exist both as regard implementation of EU acquis in areas as food security and energy as well the strengthening of EU policies in the area of Justice and Home affairs and Security and Defence.

Norway supports the further development of the CFSP and a strengthened security and defence policy of the Union. The Union should develop its policy and structures in this field based on partnership and inclusiveness. Early involvement of non-EU European allies should be welcomed whether such operations draw on NATO assets and capabilities or not. Contribution to the civilian aspects of crisis management and conflict prevention in general is also important. The new structures should be simple and transparent enough to enjoy the political support of both the NATO allies and European Union member countries. Europe needs a strong and effective system for consultation and co-operation in the field of security and defence building on the experience gained in Bosnia and Kosovo.

The Schengen Agreement provides us with an instrument to continue close co-operation with the Union also after the integration of the Schengen acquis in the Amsterdam Treaty. But important aspects of the further development of the EU-co-operation in the area of Justice and Home affairs are not seen as a direct development of the Schengen-acquis and as such not part of the agreement. To fight cross-border crime, not least in relation to drug-related matters, close police-co-operation and juridical co-operation in criminal matters are of utmost importance for Norway as well as for our partners, whether they are members or candidate countries.

The EU must show that it can deal with the challenges that require joint efforts at European level. Europe needs to respond to the challenges of globalisation. The new knowledge based economy gives new opportunities for employment and social cohesion. Local initiatives should be married with efforts at national level and strengthened by a common European approach.

Norway will contribute her part.