State Secretary Kim Traavik
Seminar on Norway and Poland
Oslo, 16 june 2003

EU and EEA enlargement - the Norwegian view

Let me begin by congratulating Poland on the successful outcome of the EU referendum on 7-8 June. Poland and the other acceding states are entering the EU at a time of change, which in fact is not an unusual situation for the EU. Poland will add value to and influence considerably the future direction of the EU. Let me also say how pleased we are that we have reached a final conclusion on the parallel enlargement of the EEA.

Norway strongly supports the enlargement processes in Europe. I firmly believe that EU enlargement, together with the parallel enlargement of NATO, will contribute to greater security and stability in Europe. The two enlargement processes complement each other and will yield net positive results for all of Europe.

These two historic events are of course fundamentally in Norway’s interest. The future memberships of NATO and the EU will to a large extent overlap. This will in my view strengthen the strategic partnership between the EU and NATO and hence transatlantic co-operation. But it will at the same time pose challenges for those countries that remain outside one or the other. Norway, a member of NATO but a non-member of the EU, is a case in point.

Norway is of course co-operating closely with the EU on foreign, security and defence policy issues. As Poland, we share the basic foreign policy outlook of the EU, and we see the value of a distinct European voice in the world. Norway and Poland both participate in EU-led civilian and military peace operations in the Western Balkans. As non-EU European NATO Allies, Norway and Poland have until recently had the same formal platform for participation in the security and defence policy of the EU.

Now, however, Poland – along with seven other new EU members (seven because Malta and Cyprus do not participate in the ESDP) – is moving to the other side of the table. What used to be referred to somewhat cryptically as the 15+15 and 15+6 formats for ESDP contacts with third countries is being replaced by the 23+5 format. The 23 are the new and old EU members, the five are Turkey, Iceland, and Norway as well as Romania and Bulgaria. Clearly, in these changed circumstances looking out for Norwegian interests as regards the ESDP will be even more of a challenge than it has been until now.

Strengthening the EU as an actor on the world scene is an important part of the efforts to prepare the Union for enlargement. This has been a basic objective at the Convention and will be at the ensuing Intergovernmental Conference.

The Iraq crisis once more illustrated how difficult it is for the EU to act in concert on important international security questions. It will not be easier after enlargement. The increased number of Union members will give the CFSP added weight when agreement is found, but the task of arriving at common positions will be harder. At the same time Iraq has shown once again how important it is to improve the functioning of the common foreign and security policy – the CFSP – and to further develop the European Security and Defence Policy - the ESDP.

Three days ago, the constitutional Convention for all practical purposes completed its work. Not surprisingly, the proposals on the CFSP in the draft EU Constitution at first look do not seem to imply dramatic departures. CFSP will remain essentially intergovernmental and decision-making will continue to be based essentially on unanimity. But the idea of an EU foreign minister, if endorsed by the Intergovernmental Conference, should provide the EU with a clearer and more visible profile on the world arena.

The carefully circumscribed provisions mandating various forms of reinforced or enhanced cooperation – that is, cooperation between some but not all of the Union’s members - in the area of security and defense also deserve thorough scrutiny – also from the point of view of Norway, outside the EU but inside NATO.

We for our part have consistently welcomed the emergence of a European Security and Defense Policy. ESDP adds in a significant way to the ability of the broader international community to manage crises and prevent conflicts. Hence, we have committed both civilian and military personnel as well as resources to be drawn upon in the context of EU-led peace operations.

But we have consistently taken the view furthermore that the ESDP must evolve in harmony and close cooperation with NATO and our North American allies. Any competion between the EU and the Alliance or appearance thereof must be avoided. Duplication of basic structures or key functions would be politically harmful and economically wasteful. We know that Poland shares this view.

We congratulate Poland on the accession to the EU, but we regret that you will no longer belong to our club of non-EU European NATO Allies. The co-operation between Norway and Poland, in Brussels and elsewhere, has always been excellent. Poland’s role in the stabilisation and reconstruction of Iraq is but one expression of your country’s commitment to leadership and solidarity. We are confident that the exemplary co-operation between our two countries will continue when you have become a member of the EU.

It is essential that the enlargement of the EU, which will erase the old dividing lines in Europe, does not create new ones. We welcome the Wider Europe Neighbourhood initiative as a way to strengthen cross-border co-operation with Russia and intensify co-operation with the "new neighbours" Belarus, Ukraine and Moldova.

Poland has taken a lead in the Wider Europe initiative. Your January paper on Wider Europe and the eastern dimension suggests a multidimensional policy approach and the inclusion of NGOs, civil society, business and governmental actors at local and national levels. Experience of co-operation in the Barents region, the Baltic Sea region and now within the Northern Dimension indicates that this is a fruitful approach to achieving stability and political and economic development.

From our perspective the idea of an EU Eastern Dimension is a logical one. There is no contradiction and should be no competition between an Eastern Dimension and the Northern Dimension. The latter could serve as a model for the further development of the Wider Europe initiative. After enlargement, we expect the Northern Dimension to become even more important as a broad framework for co-operation in Northern Europe.

Close international co-operation is the best way to address challenges in the High North, such as climate change, sustainable exploitation of natural resources in a vulnerable environment, and nuclear safety. And the northern Dimension is an important instrument to engage Russia in multilateral cooperation in essential areas. This, of course, is a key foreign policy objective of ours.

The Northern Dimension has been conducive to cross-border co-operation. Norway and Poland, which both share a border with Russia, have a common interest in this respect. Kaliningrad is, together with the Arctic region, given special attention under the Northern Dimension. The potential for increased trade and investment is considerable. A more transparent and predictable business environment is emerging in Russia. This will, in my opinion, lead to a considerably greater potential for trade and investment in all Northern Dimension countries, Norway and Poland included.

Of the challenges we are all facing, the threat of terrorism and the growth in organised crime are among the most serious. The international nature of these problems has made cross-border co-operation in the field of Justice and Home Affairs increasingly important. Norway is associated with important aspects of EU co-operation in this area, notably through the Schengen Agreement.

We look forward to seeing Poland and the other acceding states join in this co-operation, which should only enhance its effectiveness. As you know, we do not intend to restrict the free movement of persons to Norway from the new EU members. And if this is of interest, we will be ready to support you in your efforts to implement the Schengen acquis so that you can participate fully in the Schengen co-operation as soon as possible.

Significant progress has recently been made in this area. The European Arrest Warrant and other instruments concerning mutual legal assistance represent new and more effective ways to combat international organised crime,including the despicable trafficking in women and children. The establishment of Eurojust, which brings together public prosecutors from the EU member states, is also an important step in the same direction. As these new developments are taking place partly outside the Schengen sphere, Norway is currently negotiating association agreements with the EU, and hopes to conclude a co-operation agreement with Eurojust as soon as possible.

It is evident that the wide-ranging changes taking place in the EU confront Norway with new challenges. The European Union is looming larger and larger not only on our foreign policy horizon, but also as regards domestic policies. The Government is therefore seeking every opportunity to engage with the EU in order to promote our interests and to take part in the construction of the new Europe.

The president of the Convention on the Future of Europe, Valery Giscard d’Estaing, will present a new draft constitutional treaty for the European Union to the European Council in Thessaloniki on 20 June. The proposal is the result of an extensive pan-European debate involving a great variety of groups and representatives. There will undoubtedly be some tough bargaining during the intergovernmental conference that will discuss the draft, probably starting next October. Still, given its ambitious agenda, the degree of consensus reached at the Convention is impressive.

Norway particularly welcomes the Convention’s emphasis on transparency and openness, gender equality, non-discrimination, the environment and sustainable development, respect for linguistic and cultural diversity, and the role of local and regional authorities. We generally also sympathise with the Convention’s objective of enhancing the efficiency and democratic legitimacy of the European Union, and simplifying the treaties.

It is clear that Norway will be dealing with a different EU in the future. We are so closely connected with the EU in most policy areas that changes in the EU’s way of functioning will have considerable repercussions for Norway. By growing through enlargement, by streamlining its decision-making and by extending its competences to new policy areas, the European Union is exerting increasing influence on Norwegian policies. At the same time, we realise that the Convention’s proposals may, if adopted, pose new challenges regarding the functioning of the EEA agreement and our Schengen agreement with the EU. The EU is moving on, and we will have to consider whether our agreements need to be brought up to date.

More and more Norwegians apparently think we should instead go for full EU membership. It seems quite obvious now that we will have a new debate on membership in the run-up to and possibly in the aftermath of the general elections in 2005. Enlargement is probably one of the main causes of the persistent majority in favour of membership we have seen recently in Norwegian opinion polls.

Another main reason for the increasingly pro-European mood in Norway is, in my opinion, the growing awareness of the shortcomings and the limitations of the EEA agreement. People realise that since we have to adopt much of the EU’s legislation anyway, it would be better to be on the inside and have real influence on decisions. From this point of view membership would mean a recovery, not a loss, of self-determination.

However, there is no majority favouring EU membership in the present Parliament. That could change as a result of the 2005 election. In the meantime, the present government will seek to make the best of our current arrangements with the EU. Our first priority now is to ensure that EEA enlargement takes place in parallel with the enlargement of the EU. Hence, I am pleased that we have finally managed to reach agreement on the enlargement of the European Economic Area, following Poland’s lifting of its reservations.

In my view this deal is as good as we could realistically hope it would be. it includes quite generous duty-free quotas for herring and mackerel with an inbuilt allowance for growth. I hope that the result of the negotiations will secure Polish industry’s – and Polish consumers’ – access to Norwegian raw materials in the future as well. From our point of view the deal gives the Norwegian fishing industry the compensation for the loss of free trade access to the acceeding states that we set out to achieve.

The agreement on enlargement of the EEA will also entail substantial contributions from the EEA EFTA states to alleviate social and economic disparities in the ten new member states and – to a limited extent - in Portugal, Spain and Greece. We are satisfied with this part of the agreement as well. EU enlargement is a major contribution to stability and prosperity in our part of the world. It is only right that we should support it financially as well as politifically. We will benefit from enlargement, too, economically as well as politically. Hence, it is misleading to claim that our contributions should be considered merely "payment" for herring and mackerel, as some commentators have.

Through the financial mechanisms, 233.4 million euro will be made available annually – primarily from Norway – for projects in areas like environmental protection, human resource development, regional policies and cross-border activities, and strengthening of the judiciary. Poland will be the main beneficiary – close to 50 percent of the total amount will go to projects in your country. Therefore, I truly believe that the main results of the agreement – not least the financial mechanism – will be of benefit to all parties. And it will open a new chapter in our bilateral relations.

Against this backdrop, the objective of a simultaneous enlargement of the European Union and the EEA should be within reach. The homogeneity of the European Economic Area will thereby be assured. We look forward to being a partner of Poland in the EEA and to further developing our political as well as our economic co-operation.

Compared with our trade with the EU of today, Norway’s trade with the acceding states is modest and characterised by a low degree of diversification. But there is a growing interest within the Norwegian business community in the markets of Central Europe. Fish exports have been growing steadily, the energy markets show potential, and a number of Norwegian commercial interests have established themselves, acquired stakes or forged alliances in the areas of consumer goods, commodities trade, real estate and distribution. The enlarged EEA should enable us to develop this further.

Likewise, the volume of Norwegian investment in Central Europe is still rather low compared with that of the EU countries. But here, too, there is evidence of growing interest, particularly due to the many large-scale investments the acceding countries face as they prepare for EU membership.

The benefits of enlargement for commercial enterprises in the EFTA states are in large part due to the fact that a system of common rules will create stable conditions for trade. The reforms undertaken by the acceding states in preparation for EU membership have already had a major impact. Many formal restrictions on trade and investment have been removed. We are confident that further growth and development will follow.

I am also confident that the upcoming EU and EEA enlargement will lead to closer co-operation between Norway and Poland in the areas now covered by the EEA Agreement. Norwegian industry will be exposed to stiffer competition, but expansion of the internal market will also open up great potential rewards.

Poland occupies a key position in Central Europe as a cultural and geographical link between Central Europe and the Nordic countries, making Poland one of Norway’s most important bilateral partners. Our close relations have been further strengthened by regular contact between our politicians, academics and business communities.

Today, our bilateral trade amounts to more than NOK 6 billion. Poland is the single largest destination for Norwegian investment among the acceding states. Between 150 and 200 Norwegian companies have established themselves firmly on the Polish market. Norway supplies North Sea gas to Poland and an agreement on the long-term supply of larger quantities of Norwegian gas to Poland are currently going on between companies in both countries.

There is ample potential for these ties to increase further as Poland’s EU and EEA membership will no doubt help to further intensify our political dialogue and bolster Norwegian investors' confidence in the Polish market. As already nted, the new financial mechanism under the EEA will significantly broaden the basis for assistance to and co-operation with Poland.

Norway will continue to be an active partner in European co-operation. I am confident that Norway’s relations with Poland will gradually increase in all areas and that the EU and EEA enlargement will mean a new phase in this process. I wish Poland all the best as an EU member state from 1 may 2004.

Thank you.