Deputy Minister of Foreign Affairs Kim Traavik

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

Riga, 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 Latvia within the enlarged EU/EEA. The Memorandum of Understanding we have just signed is an important new element in our bilateral relations. It paves the way for co-operation in a variety of fields, ­and opens opportunities for a wide range of actors. I am delighted to see such a broad turnout here today.

Ladies and gentlemen,

One week ago it was fifteen years since the Berlin Wall fell, heralding the emergence of a new, united Europe. You Latvians have every right to be proud of your achievements over those eventful years. Since the early nineties, Norway and Latvia have become close partners in a number of important areas. The robust ties that traditionally existed between our two countries have been revived. Today, we enjoy extensive co-operation in the fields of politics, business and culture. We are active 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.

Our economic co-operation and trade have grown steadily over the past decade. A large number of Norwegian companies are established in Latvia, in areas such as energy, retail and real estate – to mention just a few. Norway is today a major investor in Latvia.

In the cultural field, a variety of contacts have developed. Historical ties in the field of art and architecture are being revived. An interesting example is the contact between the cities of Riga and Ålesund, which are exploring the possibility of co-operating to preserve their Art Nouveau heritage.

Since the beginning of the 1990s, Norwegian and Latvian students have actively participated in exchange programmes, particularly in language courses. There seems to be great interest in Norway and Latvia in getting to know each other's cultures better. Such cultural exchange is important. People-to-people contact is the backbone of friendship between nations.

Since 1 May, Latvia has been a member of the EU, and we are partners in the European Economic Area and the Single Market. This is the start of a new and important era in our bilateral relations. The enlarged EEA, which now includes 28 nations and 450 million people, offers new opportunities for Norwegian and Latvian economic co-operation, trade and investment.

Ladies and gentlemen,

Views still differ in Norway as to whether our country should join the European Union. But there is, a broad consensus among Norwegians that we too must take our share of the responsibility for ensuring peace, stability and prosperity on our continent. Therefore there is wide support for the idea that we must contribute to bridging the social and economic gaps in the enlarged union. 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 to further enlargement is in itself one of its most powerful external policy instruments and an equally powerful incentive for political and economic reforms among countries aspiring to get closer to the union.

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 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 activist approach to multilateral co-operation.

Norway and Latvia 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 is important for both our countries. Norway believes that third-party participation in projects under the umbrella of the European Neighbourhood Policy could complement and reinforce the efforts of the EU. We would like to explore, in co-operation with Latvia and the Commission, whether the financing mechanisms could play a role in this respect as well.

Ladies and gentlemen,

Over the next five years Norway’s contribution 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, in dialogue with us, will set priorities for the use of the funds. Similarly, the beneficiary countries themselves will propose, develop and implement the projects and programmes.

We will meet annually 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 improvements in the priority areas can be accounted for. In order to do this, there are some crucial concerns that must be carefully addressed:

• First, there must be transparency in the decision-making processes on both sides.
• Second, project proposals must be invited through open “calls for proposals” to ensure the participation of a broad range of actors.
• Third, the participation of regional and local authorities should be ensured.
• And fourth, inclusiveness and the participation of civil society are important. I am very happy to note that Latvia will create a special NGO fund for this purpose.

And we must ensure that

• Projects and programmes under the financial mechanism promote equal opportunities for men and women,
• That all activities are environment-friendly and promote sustainable development,
• That all activities are compatible with EU-funded activities, and finally that
• all 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 Latvia is an important partner country. Approximately 10.7 million Euro is allocated to Latvia 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 government level.

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.

The purpose of today’s conference is therefore to provide interested parties in Norway and Latvia 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.

A solid platform for co-operation has already been established in areas such as health, regional policy, justice and student exchange. In other areas co-operation still needs to be developed. Furthermore, the increased mobility of persons, goods, capital and services gives rise to new challenges such as increased organised transnational crime. There is also growing awareness and concern in Norway about trafficking in human beings in Europe. Many of these new, common challenges can only be met through increased co-operation.

Ladies and gentlemen,

Today’s conference will focus particularly on the environment, regional development and integration of minorities in society.

In all of these areas Norwegian participants have proven competence and expertise to offer. We believe that close interaction between the private and public sectors is the best approach to achieve social and economic development.

Environment and sustainable development are important priorities in the Memorandum of Understanding which we have just signed. Norway has long experience in implementing EU directives on the environment, such as those on electric and electronic waste and on integrated pollution prevention and control. Norway was in fact the first European country to introduce a system for handling electronic waste, and we have co-operated closely with the EU on this matter.

As a major energy producer and exporter, Norway also has extensive experience in energy-related issues, including energy efficiency. In the field of sustainable development, Norway would like to assist in competence building.

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

The issue of integrating minorities into society is an important area for Norway. Norway and Latvia have had some co-operation in this field, and we hope it will continue. We believe NGOs have an important role to play in this area, and today’s workshop will also address their role. I hope the workshop will give rise to new ideas for projects that can be developed further.

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 Latvia, and that the mechanisms will prove to be a valuable investment in our common future.

Thank you.