Norway’s Role in the Development of the Baltic Sea Region

Article for the bi-monthly review of Turku School of Economics and Business Administration’s Pan-European Institute

Mr Jonas Gahr Støre, Minister of Foreign Affairs

Norway has been a member of the Council of the Baltic Sea States since its establishment in 1992, and is an active participant in the Council’s regional cooperation efforts. Norway may not be a part of the Baltic Sea region in strictly geographical terms, but both trade and shipping links and people-to-people contacts can be traced back to Viking times.

Parts of the Baltic Sea region have experienced radical political, economic and social change since the early 1990s. Norway has engaged in this process, not only through investment by Norwegian companies and closer and more comprehensive trade relations, but also by providing democratic institution-building assistance to Estonia, Latvia and Lithuania.

Norway has also helped to prepare the way for four Baltic Sea countries to join NATO and the European Union/the European Economic Area (EEA). Assisting in this way benefits Norway’s security and trade. While some may argue that the expansion of NATO and the EU is creating new borders within Europe, Norway is focusing on the new opportunities this expansion is creating for the consolidation of peace and security in the European region. Moreover, the expansion opens the way for neighbouring countries, including the Russian Federation, to participate in the dynamic economic developments of the expanded common market.

Developing relations with the Russian Federation is one of the cornerstones of Norwegian policy, and not least Norway’s Baltic Sea policy. The close and friendly relations between the Russian Federation and Norway have made a real contribution to peace and stability in Northern Europe, and I believe that they will continue to do so.

The Baltic Sea region is emerging as one of Europe’s most promising areas. Economic development is bringing social and material benefits for its population, and the region is becoming a strong, competitive participant in regional markets. The State of the Region Report 2005 concluded that the Baltic Sea region is continuing to register strong prosperity growth, outpacing growth in the Central European Region and the EU-25. The Baltic Sea region also has a higher level of employment than the European average. It is in Norway’s best interests not merely to follow these developments, but to participate actively in them.

Through the EEA Financial Mechanisms, Norway is contributing to the reduction of social and economic disparities in Europe, and providing support for new EU member states in their efforts to participate fully in the enlarged internal market. A large proportion of the funds allocated through the Financial Mechanisms are earmarked for states in the Baltic Sea region, particularly Poland.

As an important producer of oil, gas and hydroelectric power, Norway values its energy dialogue with the countries of the Baltic Sea region. The region covers a large part of northern Europe, and features a wide range of resources and actors in the energy field. Norway is an active member of BASREC, the Baltic Sea Region Energy Cooperation, one of the most important bodies dealing with energy issues in the region. This intergovernmental cooperation platform provides a forum for energy dialogue between the 11 countries of the region and the European Commission.

Discussion in forums such as BASREC must focus not only on energy issues, but also on environmental considerations. Norway has been following this approach in relation to the High North, an area rich in both energy resources and fish stocks. The collapse of fish stocks in other areas is a constant reminder of the importance of international cooperation to ensure that living marine resources are managed in a wise, sustainable manner. Norway’s recently-adopted integrated management plan for the Barents Sea–Lofoten area is a key instrument in the responsible management of resources in that area. The plan sets out standards for the oil and gas industry, maritime transport and the fisheries industry, and I believe that it could serve as a model for the Baltic Sea region.

The great political changes that took place in many of the countries surrounding the Baltic Sea in the last decade of the 20th century paved the way for extensive people-to-people contacts, the development of NGOs and civil society groups, cooperation in higher education, and youth and cultural exchanges. The Council of the Baltic Sea States, of which Norway is a member, has actively promoted development in these important areas. Norway considers cooperation at grassroots level to be vital, and has been supporting the annual NGO forum for the region and the EuroFaculty academic programme for several years.

We cannot ignore the challenges that have emerged in the Baltic Sea region in recent years in relation to human trafficking and cross-border organised crime. Meeting these challenges must be given priority at political level. Human trafficking is a transnational crime, affecting all countries in the region, whether as countries of origin or transit, or as recipient countries. It is also a gross violation of human rights. Destination, transit and origin countries need to combat the problem jointly, to send a clear message that human beings are not for sale.

Dealing with these issues requires a wider perspective, and this is exactly what the EU’s Northern Dimension provides. It is a political framework for the broader cooperation needed, not only on environmental and energy issues, but also on issues such as human trafficking and cross-border organised crime.

The Northern Dimension cooperation will take a significant step forward in 2007, when it will become a common endeavour involving the EU, Iceland, Norway and the Russian Federation as equal partners. Norway has given high priority to the inclusion of the environment, nuclear safety, natural resources, social welfare and health care among the priority sectors, and is therefore pleased that these form part of the policy framework document for the new endeavour.

Norway is a member of the four regional councils dealing with the Barents Euro-Arctic, the Arctic, the Baltic and the Nordic regions, and will continue its close cooperation with its partner countries in this vast region.

Jonas Gahr Støre

October 2006