Biannual address to the Storting on important EU and EEA matters

Translation from the Norwegian

 

I am giving this address on important EU and EEA matters against a backdrop of turmoil in Europe’s neighbouring countries in the south – in the Middle East and North Africa. The spark in Tunisia half a year ago ignited a fire that has swept from country to country, resulting in uprisings and demands for democracy, respect for human rights, justice and welfare throughout the region.

There is reason to hope that Tunisia and Egypt will develop towards peace and democracy. Libya, however, has moved in the direction of violence and conflict, as the Minister of Defence and I pointed out in our address to the Storting on 9 May this year.

The upheavals and popular uprisings of this Arab spring are readily recognisable to European countries, as similar events in Europe led them to become the democratic societies they are today. We therefore have a responsibility to stand up for those who are now fighting to achieve respect for human rights, rule of law, reforms and democratic rule.

In relation to Libya, several EU countries as playing key roles – in the UN Security Council, through the EU’s extensive sanctions and by providing humanitarian aid. European countries are also the main contributors to the NATO-led military operations.

Europe’s support will be no less important when it comes to establishing new governance structures and institutions. The UN is working on contingency plans for Libya, and the UN Secretary-General expects the EU to contribute to the country’s reconstruction. EU High Representative Catherine Ashton has announced that the EU will open an office in Benghazi next week.

It is important that European countries act in such way that the members of the Arab League and of the African Union become as closely involved as possible, so that they take on more responsibility for the current policy and the future choice of direction.

This increases the immediate relevance of the EU’s role as a peace builder and stabilising force. In March this year the EU heads of state and government decided that the Union would enhance its Neighbourhood Policy with respect to countries to the south. This partnership for democratic development, economic integration and growth includes all the countries south of the Mediterranean from Morocco in the west to Jordan in the east.

The Council of Europe’s Committee of Ministers decided at its session last week that the Council, too, would strengthen its neighbourhood policy and make its experience and expertise available to its neighbours in the south.

My journey through South Eastern Europe in April, which started in Turkey and continued through Kosovo, Macedonia, Serbia and Croatia, underlined for me once again how important the European integration process is for political development in this region. Reforms aimed at EU membership form a template for these countries’ reform policies – indeed they are a visible manifestation of their ability to carry out economic and political reform.

The need for predictability for economic development and investments is one aspect here; stability as a prerequisite for resolving regional and national tensions is another. It is therefore important that the most vulnerable countries in the region, particularly Bosnia and Herzegovina, also feel they are making progress on the path towards closer EU integration.

Turkey is aware of political obstacles on its way towards EU membership, but is nevertheless determined to implement the required adaptations. I note that Turkey is doing so with more self-confidence than just a few years ago. This is due both to rapid economic growth and to the feeling that it is now playing a far more important regional role in terms of foreign policy.

Norway is stepping up its cooperation with Turkey, for example in the area of peace and reconciliation. We are also further developing our cooperation with the countries in the Western Balkans, as the Government set out in the white paper it recently submitted to the Storting.

The unrest in North Africa has led to increased migration. More than 780 000 people have left Libya. More than 34 000 migrants have come to Europe, most of them Tunisian job seekers and people from sub-Saharan Africa. A further deterioration of the situation in Libya could result in an even greater migration flow, and many of these migrants may need international protection.

The country of entry has the main responsibility for dealing with asylum applicants in a responsible manner. The EU can assist the individual countries of entry with control of their maritime boundaries and management of their asylum application systems.

Frontex, the EU border agency, is coordinating joint maritime operations off the island of Lampedusa and elsewhere in the Mediterranean. 

We have a responsibility to assist in a spirit of solidarity, and Norway is doing its part to help Europe manage the migration flow in a satisfactory way. Norwegian humanitarian assistance has been used to enable people to return to their home countries. Norway has agreed to accept 90 refugees from Libya under its existing quota for resettlement refugees; these will mainly be third country nationals who are in need of protection. Thirty of these will be taken from the group of refugees located in Malta. In addition, the Government has decided to increase the quota for resettlement refugees by 250 in 2011, as a one-off measure, to help to address the need for protection caused by the situation in North Africa.

In response to the flow of migrants across the Mediterranean, France and Italy wish to strengthen external border control and make it easier to reintroduce temporary internal border controls. In their discussion on 12 May, the ministers of justice and home affairs agreed any such changes must not undermine the fundamental principle of free movement of persons within Schengen, and this is a view Norway shares. Any amendment of the Schengen acquis would have to be deliberated both by the European Council and the European Parliament. We would take part in such a discussion through the Mixed Committee.

Denmark’s decision a few days ago to strengthen control on its intra-Schengen borders has been met with scepticism. The Danish authorities have claimed that this is intensified customs control of goods, not control of persons. The Commission is now assessing whether Denmark’s tighter control is in accordance with the Schengen acquis and the principle of free movement of persons.

The financial crisis and the serious debt situation in several EU member states also form part of the backdrop to this address. Although growth rates have picked up in some European countries such as Sweden and Germany, the situation is generally shaky and variable.

The increase in raw material prices and indirect taxes has fuelled inflation. This was one of the reasons why the European Central Bank increased interest rates on 7 April for the first time since 2008. Further hikes in interest rates could hamper growth and make the burden of servicing debt even heavier for the most vulnerable countries.

Developments in Greece have recently taken a more serious turn. The country has become trapped in a situation of high and continuously increasing government debt. This is making it difficult to achieve the necessary budget consolidation. It has also increased the premium on Greek government debt. Once again, the EU and the IMF are considering what can be done to alleviate the situation.

On Tuesday 17 May, the EU ministers of finance adopted a package of financial assistance for Portugal totalling EUR 78 billion, of which the IMF will provide one third. For Ireland they adopted a decision modifying the conditions underpinning the existing package of financial assistance to ensure the smooth implementation of the programme adopted in 2010.

Spain is also vulnerable, but the development of the country’s debt situation is less dramatic than it has been during the past two years. Spain’s economy is nearly twice as large as the Greek, Irish and Portuguese economies combined. Developments in Spain are therefore of great significance for the whole continent.

Overall unemployment in the 27 EU member states is somewhat lower compared with last year, but it is still extremely high for certain groups. It is a serious problem that the unemployment rate among people under the age of 25 is about 30% in several EU member states.

This spring, the EU member states have found ways of strengthening Euro cooperation.

In March, the European Council adopted a minor treaty amendment to allow for the establishment of a permanent European Financial Stabilisation Mechanism in 2013. The amendment must now be approved by the EU member states. The Euro Plus Pact was adopted at the European Council summit in March. This political pact establishes general economic policy guidelines and provides for measures to strengthen fiscal discipline. The choice of measures and their implementation will still be decided at national level, but will be closely supervised by the EU. The Euro Plus Pact is intended to support the Euro zone, but it does more than that – for six member states outside the Euro zone have so far expressed their interest in joining.

In other words, the EU member states, and particularly those in the Euro zone, are taking a step beyond binding cooperation on fiscal policy alone, and there are signs of general economic coordination.

A new round of stress tests will be carried out to determine banks’ exposure to government debt. These should identify which banks will require additional capital.

These measures are no guarantee against future economic turbulence, but the EU is seeking to prevent such turbulence in the future and diminish the effects should it happen again.

When President of the European Council Van Rompuy visited Oslo on 30 March, he did not conceal the fact that the EU faces the following challenge: A number of EU member states will have to carry out reforms and budget cuts on the one hand, while stimulating economic growth and job creation on the other. At the same time he stressed that no one should underestimate the will that is being mustered by the EU member states to this end. The next few months will show what this will lead to.

Innovation, improved resource efficiency, research and education are key to long-term growth and to the fight against unemployment.

In June, one year will have passed since the European Council adopted the Europe 2020 strategy, which gives a central place to research and education. Although Europe 2020 is not binding for Norway, the strategy is relevant to us for several reasons.

Firstly, the EU is by far Norway’s largest import and export market. It is of fundamental importance to the Norwegian economy that the EU succeeds in increasing value creation and employment.

Secondly, several elements of the seven flagship initiatives are EEA relevant. One of these is the resource-efficient Europe initiative intended to support the shift towards a resource-efficient, low-carbon economy. It aims to strengthen the European economy and at the same reduce environmental pressure, as Minister of the Environment and International Development Erik Solheim earlier today informed the European Consultative Committee of the Storting.

Thirdly, Norway also has interests related to initiatives that are not necessarily directly EEA relevant. Proposals in the area of energy are an example of this.

There is renewed interest in the development of the internal market.

The internal market ensures that Norwegian enterprises have the same access to the market and to important input factors as enterprises throughout the EEA. Generally speaking, Norway benefits from the development of common rules and standards for the European market.

In October last year, the Commission presented a plan of action consisting of 50 measures aimed at strengthening the internal market. The vast majority of these are relevant to Norway. The Minister of Trade and Industry has submitted Norway’s comments to the Commission on behalf of the Norwegian Government. Our comments express our support for the Commission’s efforts to strengthen the internal market and the importance we attach to the implementation of existing legislation. We also stressed the importance of striking a balance between market forces on the one hand and social and labour rights on the other.

In April this year, the Commission presented the final version of its plan of action, in which Norway’s concerns are duly addressed.

The results achieved under the Lisbon strategy, the predecessor of the Europe 2020 strategy, were variable. Many of the goals were not met. The Europe 2020 strategy is more specific. We will follow the EU’s further efforts closely, identify Norwegian interests, and participate where appropriate.

The EEA Agreement was signed 19 years ago on 2 May. It is the most comprehensive international agreement Norway has concluded, and it systematises our relations with the EU. We might ask what overall effect all this legislation has had on Norwegian society – economically, socially, legally and administratively.

This is one of the questions that is currently being examined by the government-appointed committee chaired by Professor Fredrik Sejersted. The committee’s report is scheduled to be presented by the end of the year, and will be followed up by a white paper.

According to its mandate, the committee is also to promote debate on Norwegian European policy. I would like to commend the committee on the way it has addressed this task. Debates on many different aspects of the EEA cooperation have been held all over the country, most of them drawing a full house. There is keen interest and engagement in European affairs in Norway. Next week I will take part in the committee’s debate on what some call “the Norwegian dilemma: being both inside and outside” i.e. on the form of our association with the EU.

We should also note the interest the EU has shown in the committee’s work. In the conclusions of its meeting in December 2010, the European Council called for a parallel assessment in the EU and exchange of experience with the EFTA/EEA countries. Experience is currently being exchanged both in Oslo and in Brussels. This is encouraging.

It is also worth noting that the Council described the work carried out under the EEA Agreement as exemplary. This is because its framework has withstood several treaty revisions and the enlargement of the EU to include new member states.

But it is primarily due to political will – not least in Norway under successive governments and several parliaments – the will to fulfil our obligations and seek pragmatic adaptations of the Agreement over time. It is also due to the willingness to conclude new agreements in other areas as the EU cooperation has evolved.

The focus of the Sejersted committee and the Ministry of Foreign Affairs should be on how we can maintain the EEA Agreement as an effective cooperation instrument. In this connection, Norway must take advantage of all the opportunities provided by the Agreement, including the right to enter a reservation, to safeguard Norwegian interests.

The EEA Agreement and how it functions should be assessed in the light of the major changes that have taken place in Europe and the EU in the course of the years

In addition, the possibility of further developing the institutional framework for contact with the European Council, and particularly with the European Parliament, should be considered in the light of the changed balance of power in the EU.

We will revert to these and other issues in a white paper next year.

Another question that is raised from time to time is whether the EEA should be enlarged to include other countries outside the EU.

One of the EU’s tasks, now being administered by the European External Action Service (EEAS), is to find ways of providing for small states such as Andorra, San Marino and Monaco to associate more closely with the internal market.

This is basically a matter for the EU and the countries concerned. In the Government’s view, association with the internal market through the EEA via the EFTA pillar would not be appropriate for these states. Their needs and capacities differ from Norway’s. Therefore, a more restricted, simplified form of association seems more realistic.

The EEAS is expected to prepare a report on relations with these states before the summer. Norway has had talks with the EEAS where we have been informed of the progress of this work and expressed our views on the matter.

The Government is pursuing a proactive EU and EEA policy that is abreast of current developments. This is apparent in the way we deal with specific EEA matters, and I would like to mention some of the most important ones. The third postal directive governs aspects of the internal market that apply to us through the EEA Agreement. The legislation governing mail exceeding 50 grams has already been liberalised in Norway through the incorporation of the two previous postal directives into the EEA Agreement. The third postal directive abolishes all exclusive or special rights for mail weighing less than 50 grams, and opens this part of the postal market up for competition as well.

The Government gives priority to ensuring high quality, reasonably priced postal services for all people in Norway. The frequent delivery of mail and standard postage rates are important in this connection.

Today, postal services in areas that are unprofitable, but important from a societal perspective, are financed partly through the exclusive rights accorded to Posten Norge AS and partly over the annual government budget. There is reason to believe that the abolition of exclusive rights would increase pressure to finance more of these costs over the government budget.

The question has also been raised as to whether the incorporation of the directive into the EEA Agreement could have a negative effect on wages and working conditions in the postal sector, on the basis of observations in some EU countries.

Generally speaking, the Government’s view is that there are weighty arguments for why Norway should not incorporate the directive into the EEA Agreement. Next Monday, i.e. 23 May, I will meet our EFTA partners, Iceland and Liechtenstein, and the EU in the EEA Council in Brussels. There I will inform them about Norway’s position. Norway will follow the procedures in the EEA Agreement for entering a reservation as we proceed with this matter.  

The EEA Agreement contains detailed procedures for how such a matter is to be dealt with. In the Government’s view, it is important that all parties respect the substance of the EEA Agreement and the obligations it entails, and will emphasise following the procedures set out in the Agreement. According to Article 102 of the Agreement, the parties are to seek to resolve the conflict or minimise the detrimental effects insofar as possible.

We cannot today anticipate the outcome of consultations in accordance with the procedures provided for in Article 102. If, however, the parties fail to arrive at an agreement, the affected part of the EEA Agreement may be provisionally suspended.

If this should happen, we would have to make a thorough assessment of the consequences. It is too early to say what the economic consequences of a possible suspension would be. Both the scope of the suspension and how it is implemented would be important factors in this assessment.

It is the party that wants a legislative act to be incorporated into the EEA Agreement that decides when an Article 102 procedure is to be formally initiated. Several EU member states have not yet implemented the directive in their national law, and the directive gives 11 member states the right to postpone implementation until 31 December 2012.

The Government will keep the bodies of the Storting informed of progress in this matter, and of the consequences a possible suspension would have for those aspects of the EEA cooperation that would be directly affected by it.

Norway’s present prohibition against the advertising of alcoholic products in foreign television broadcasts targeted at Norway has come under pressure from the Audiovisual Media Services Directive. We have taken a broad approach in our efforts to reach agreement with the EU on a continuation of the exemption that is in place today. This enables us to stop such advertisements.

We are concerned about the links between advertising and consumption. We have expressed this concern to the EU, but so far the EU has not complied with our request. We expect a formal response from the Commission.

The Storting has decided that the Data Retention Directive is to be implemented in Norway, and it will now be incorporated into the EEA Agreement. Meanwhile, we are aware that the legislation in this area is being revised.

Here we see a typical feature of cooperation in the EU and the EEA – namely a continuous process of development. In connection with this revision, we should note that the Commissioner for Justice, Fundamental Rights and Citizenship, Viviane Reding, has given top priority to protection of personal data. She has announced that new rules for data protection will be drawn up during the course of the year. We do not have any details as yet, but we do know that the Lisbon Treaty provides for a more coherent approach to protecting personal data in the EU.

New legislation in this area could have consequences for Norway. The Government will seek to ensure that new rules that affect Norwegian interests take account both of the need for the protection of individuals’ personal data and of the need of society as a whole for insight and control.

If we are to be granted exemptions from EU legislation, we must put forward convincing arguments, demonstrating – wherever possible – that an exemption or adaptation does not have a discriminatory effect or distort competition. This is what we have done in connection with the deposit guarantee scheme, and our request to retain our level of coverage of NOK two million per depositor per bank.

The current EU directive is being revised. We are working for the inclusion of additional wording that allows Norway to keep its current level, which has remained unchanged since 1996. The EU has decided to fully harmonise the level of coverage under the deposit guarantee scheme at a level of EUR 100 000 as of 1 January 2011. The principle of full harmonisation forms the basis of a proposal for a new directive on deposit guarantee schemes, which is now being discussed in the EU. Previously, harmonisation has only applied to the minimum level of coverage.

As mentioned, it is difficult to reach agreement on adaptations for Norway. Exemptions undermine the very core of EEA cooperation: homogeneity. This also applies within the EEA. Legislation is to be implemented in the same way in all 30 EEA states in order to ensure equal conditions of competition and predictability, which is generally in our interests too.

In our work on the Directive on Deposit Guarantee Schemes, it has been important to make it clear to the EU that a continuation of the Norwegian level of coverage will not distort competition. We have proposed mechanisms that will effectively ensure equal conditions of competition even if Norway retains its current level.

Norway has consistently emphasised that we are willing to continue an arrangement under which foreign banks operating in the Norwegian market have the opportunity to take part in the Norwegian deposit guarantee scheme by “topping up” to cover the difference between the EU deposit guarantee level of EUR 100 000 and the Norwegian level of approximately EUR 250 000.

Furthermore, we have consistently emphasised that we are willing to introduce an effective export ban on Norwegian banks to prevent them from offering their higher guarantee level to depositors abroad.

The Government will continue to work proactively with this matter in the future.

Labour law is another area that the Government follows closely. We will ensure that Norwegian principles and standards for decent work are maintained.

The Government will consider whether the Temporary Agency Work Directive should be incorporated into the EEA Agreement. One of the key provisions of the directive sets out the principle of equal treatment in terms of pay and working conditions for temporary workers who are hired from an agency. The directive also regulates opportunities and restriction regarding the use of temporary agency work.

In a round of consultation in 2010, the employers’ organisations maintained that the legislation on hiring temporary workers would have to be liberalised as a result of the directive. The Government’s view is that Norwegian legislation in this area can be retained. The Norwegian Confederation of Trade Unions (LO) shares the Government’s view. The employee organisations underline that in connection with the implementation of the directive it is important to ensure legal employment conditions, effective employment protection, and the introduction of statutory effective enforcement measures that secure equal treatment. The Government agrees that these are important considerations that must be taken into account in this connection.

The provisions of the EEA Agreement on state aid affect conditions for the Norwegian business sector. EU legislation sets out various restrictions on and a framework for state aid.

I will give two examples of guidelines for this area that the European Commission is currently working on.

The first is the new guidelines for state aid set out in the revised Emissions Trading Directive.

In accordance with the directive, state aid may be given to compensate installations for costs related to CO2 emissions that result in increased electricity prices. The objective is to prevent carbon leakage, i.e. that production is moved to other countries where emissions are not regulated.

The Commission has held a preliminary round of consultation to get input from authorities, organisations and companies for the development of the forthcoming guidelines. A considerable part of the Norwegian response has focused on methodology for calculating costs relating to CO2 emissions in the price of electricity. We have wanted to ensure that the guidelines take proper account of the Nordic hydropower-based electricity market. The Government will have the opportunity to put forward further viewpoints when a formal draft of these guidelines has been presented. The Government has not yet decided whether industry in Norway should be entitled to such aid.

The other example is the revision of the guidelines for regional aid.

These provide frameworks for various forms of state aid to companies located in regional areas. The guidelines form the basis for ESA approval of the scheme for differentiated employers’ national insurance contributions and support for regional development.

The Commission is now drawing up new guidelines for regional aid that will come into force in 2014. These will be important for Norway. We have already expressed our view to the EU that the present opportunities for providing investment aid to areas with low population density and for schemes like the differentiated employers’ national insurance contribution scheme should be continued. Norway will present its viewpoints to the Commission in the near future.

The EEA Agreement opens up opportunities for extensive research cooperation with the EU. Norway’s participates more extensively in the EU framework programmes for research, technological development and demonstration activities than in any other programmes in the EEA.

The Commission is now planning a new framework programme for research and innovation, which will be launched in 2014. We are drawing up Norway’s points of view on this. Once it has been approved in the EU, the Government will present the question of Norwegian participation to the Storting, probably during the course of the spring of 2013.

Research and innovation is one of the most dynamic policy areas in the EU. The Lisbon Treaty commits EU member states to cooperate more closely on research policy. The aim is to coordinate research programmes at national and European level. The Government will consider the extent to which Norway should participate and whether an equivalent framework should be incorporated into the EEA Agreement.

Education is also an extensive area of cooperation in the EEA Agreement; indeed it is the second largest in terms of programme cooperation. Norway recently took the initiative for a joint EEA/EFTA statement on the new generation of education programmes that is due to start in 2014. The question of participation in this area too will be presented to the Storting in 2013.

The Lisbon Treaty has introduced amendments to the EU’s comitology system, i.e. the procedure for the adoption of supplementary legislation by the Commission following discussions in committees made up of representatives of the member states. The European Parliament is now on equal footing with the European Council in terms of delegating such powers to the Commission. In addition, the comitology system has been simplified to ensure efficiency and transparency.

Nearly 80% of EEA-relevant legislation is supplementary legislation that has been adopted following the comitology procedure. The EEA Agreement gives Norway the right to take part as an observer. This means that we can provide information, express our views, and take part in the exchange of knowledge and information.

The reform of the system involves certain changes to the division of competences between the Commission on the one hand and the European Council and the European Parliament on the other.

The procedures for how the Commission is to exercise its authority will also be amended, but it is not yet clear what exactly this will entail.

The Government has sought to safeguard Norwegian interests. We are reasonably confident that we will be able to retain the rights we have under the EEA Agreement.

Moreover, EU agencies and supervisory bodies are playing an increasingly important role in policy formation and implementation of legislation in the EU. Norwegian participation in these agencies is an important factor in our EEA cooperation and for ensuring equality before the law in the EEA.

Some agencies have recently been given decision-making authority. This raises questions of a legal and political nature. Our departure point is that the exercise of authority vis-à-vis an EEA/EFTA state should be the prerogative of a national or EEA/EFTA body. The Government will make sure that the provisions of the Norwegian Constitution and the EEA Agreement are respected in this area.

The nuclear disaster in Japan has intensified the debate on nuclear safety, environmental and health issues and alternative energy sources in several EU countries. At the same time, the situation in North Africa and the Middle East has resulted in increased oil and gas prices.

Norway plays a significant role as a stable supplier in Europe. More than 95% of Norwegian gas is sold in the European market. This will continue to be an important dimension in our relations with the EU and key European countries such as the UK, Germany, France and the Netherlands.

Through our talks on energy issues – our energy dialogues – we are directly engaged with our European partners in discussions on future energy production and consumption and environmental benefits in Europe.

The EU’s own energy policy seeks to meet several goals: secure energy supply, reductions in greenhouse gas emissions from the energy sector, and well-functioning energy markets. The meeting of the European Council in February reiterated the ambition of establishing a fully functional, inner energy market as of 2014, and that no member state should be isolated from the European gas and electricity markets after 2015.

These are very ambitious goals, requiring investment in new, expensive infrastructure. The Commission is to draw up an overview of infrastructure projects that could qualify for financial support from the EU. However, most of the investments will have to be from the energy market itself. Norway agrees with this.

In addition, the Commission presented last month two important documents on energy and climate change: a roadmap for a low-carbon economy towards 2050 and a plan on energy efficiency. The roadmap sets out that an overall plan should be established for reducing CO2 emissions in the EU by 80–95% by 2050. The Government welcomes this ambitious goal.

We are negotiating with the Commission on amendments to the EEA Agreement and the incorporation of the revised Emissions Trading Directive. This directive paves the way for the establishment of a harmonised system for the whole of the EEA.

The EU is also working on Roadmap 2050 towards a low-carbon economy in Europe. We have highlighted the role of natural gas in the EU’s energy mix within this timeframe, most recently at the EU’s informal meeting of energy ministers in Budapest.

We have also expressed our views on the EU’s energy and climate policy on several other occasions over the last six months. I have the impression that Norway’s views are listened to in the EU and that our knowledge and our political initiatives in this area are important.

In other connections in the Storting, we have highlighted the increasing interest shown by the EU in the High North and our particular expertise in this region.

Norway has presented its viewpoints on the Arctic to various parts of the EU system, and we believe this work has borne fruit. Norway’s viewpoints are met with growing understanding in the EU. This was most recently reflected in the European Parliament’s resolution on the Arctic of January 2011, which takes our interests into account to a considerable extent.

This is an example of how Norwegian points of view – in areas where we have interests and expertise – can gain ground in the EU when they are appropriately presented.

One of the topics we discussed at the Arctic Council’s Ministerial Meeting in Greenland last week, which was also attended by parliamentarians, was how to strengthen the capacity of the Council. It was agreed that a permanent secretariat should be established in Tromsø, which has hosted a temporary secretariat since 2006. The establishment of a permanent secretariat will strengthen the Arctic Council’s work, and reinforce Tromsø’s position as a centre for Arctic issues – both in Norway and at international level.

The Agreement on Cooperation in Aeronautical and Maritime Search and Rescue in the Arctic was signed at this meeting. This is the first legally binding agreement negotiated under the auspices of the Arctic Council. It is designed to ensure that the existing search and rescue capacity in the Arctic is better coordinated. The next step is to start negotiating an agreement on emergency preparedness and response to oil spills in Arctic waters.

Agreement was also reached on the criteria for applicants such as China, Japan and the EU to gain the status of permanent observers to the Council.

Seven of the eight Arctic countries were represented at ministerial level at the meeting in Greenland, and both the US Secretary of State and the Russian Foreign Minister took part. This is a clear reflection of the increasing importance of Arctic issues and the work carried out by the Arctic Council – the world’s only circumpolar forum. Sweden took over the chair from Denmark at the meeting. Sweden’s chairmanship will be the final phase of a Scandinavian chairmanship period from 2007 to 2013, during which there has been particularly close cooperation.

As the Storting is aware, Norway contributes to economic and social development in 15 of the EU member states through the EEA and Norway Grants. These are substantial funds to support development, mainly in the new NATO and EU members in Central Europe.

I have visited a number of beneficiary states and seen what a difference these funds can make. This is not aid, but support for projects on the basis of applications from the countries themselves within areas that we have agreed on.

Cooperation with the beneficiary states is generally good. However there have been difficulties with implementation in Greece, as obligations have not, in our view, been met. We therefore have no choice but to discontinue the disbursement of funds to Greece for the time being. The funds in question are for the period 2004–2009.

Following the agreements on the new EEA and Norway Grants for the period 2009–2014, Norway, Iceland and Liechtenstein are currently negotiating the distribution of the funds with 15 countries.

The projects must fall within defined priority sectors. Among the most important of these are the environment, climate change, civil society, the business sector and tripartite dialogue, and research. Beneficiary states can also apply for cooperation on areas such as justice and health.

So far, agreements have been signed with Slovakia, Lithuania, Latvia and Slovenia, while Poland, Estonia, Bulgaria, the Czech Republic and Greece are expected to follow suit in the near future.

We have agreed with Greece to cooperate on the asylum field with a view to strengthening the administration of this area. Particular focus will be given to the situation for unaccompanied minors. The Grants will thus help to strengthen cooperation in the EU on asylum.

Bilateral relations with the countries concerned are just as important as the focus on priority sectors. The EEA and Norway Grants are intended to promote cooperation between Norway and the beneficiary states. Opportunities have therefore been established for involving Norwegian partners more closely in programmes and projects, for example in Lithuania, where priority is being given to addressing climate change and strengthening the justice and home affairs sector.

An agreement was also recently entered into with the Council of Europe on closer cooperation with the beneficiary states in the justice and home affairs sector.

This year, the countries in Central and Eastern Europe – and we too – can celebrate the 20th anniversary of the end of Warsaw Pact and the beginning of no less than a new era in Europe. We have witnessed a peaceful transition without parallel in European history: from a single-party system to democracy, from planned economy to market economy, from uniformity and censure to a revival of a strong and diverse European cultural heritage. These states are now our allies and partners in the EEA.

On 1 July, Poland will take over the six-month presidency of the EU from Hungary. A whole year of Central European presidency of the EU will be an interesting reflection of a new age.

Poland is a large and strong EU member state, and will take the opportunity of its presidency to look eastwards and strengthen the Eastern Partnership – the EU’s relations with its neighbours Ukraine, Georgia, Moldova, Armenia, Azerbaijan and Belarus – with a view to closer political and economic cooperation.

EU membership for these countries is not on the horizon, but neither is it out of the question. In any case, that path would follow the direction of closer integration into the inner market. The ambition of Poland and of the EU is that the union should be a catalyst for growth and stability in the EU’s neighbouring areas to the east.

The situation in the Middle East and North Africa reinforces the hope that the EU can act as a stabilising force and peace builder in its neighbouring areas. EU Enlargement Commissioner Stefan Fule has said that if the EU wants to become a credible global actor, it must start in its own neighbourhood. We share this view.

Mr Fule and High Representative Ashton are launching a strategy for the EU’s neighbourhood policy in the south and east. It will take greater account of these countries’ own priorities as well as the situation of the EU. The EU has used the expression “more for more”: the more these neighbouring countries do to develop democracy, improve governance and strengthen human rights, the more they will be able to expect from the EU in terms of political and economic development.

Lady Ashton faces a tough challenge in getting the EU’s 27 member states to speak with one voice to their neighbours, with which they have different historical relationships, and which have very differing interests. Her efforts command respect, and we have close contact with her and her staff.

It was possible to reach agreement in the UN on a resolution on Kosovo that will form the basis for the further dialogue between Serbia and Kosovo. And the EU has continued to put full effort into the fight against piracy off the east coast of Africa. Moreover Lady Ashton has a personal engagement in the Middle East, and we cooperate closely in the Ad Hoc Liaison Committee, and in several other foreign policy areas. Such cooperation is also vital for promoting Norway’s interests.