The enlarging EU – challenges and
opportunities for Norway
Europe Conference, Oslo 2 February
2006
Check against delivery
Translation from Norwegian
Ladies and gentlemen,
The EU is expanding. In one of his
best-known poems,
Gobelin Europa, the Norwegian poet Stein Mehren describes
Europe as a gobelin tapestry. The poem was originally written in
1965, but new lines have been added – several times. It is quite
dark and pessimistic, but a tapestry is made up of many different
colours, shades and patterns, and I think his image is a good
one.
In its policy platform, Norway’s
new coalition government identified European policy as one of its
main foreign policy priorities. We will pursue a more proactive
European policy.
The main point I want to make today
is that the Government wants Norway to play an active part in
efforts to develop an inclusive and secure society in Europe. This
is in our own interests too.
We are not part of the EU and will
not join the Union during our term of office. But we will
cooperate, make the most of common opportunities, take our share of
our continent’s responsibilities, safeguard our own interests and
demonstrate our commitment to the common good, solidarity and joint
responsibility.
I am particularly pleased that
Commissioner Olli Rehn and Polish Minister for Regional Development
Grażyna Gęsicka were able to be here today. They both play key
roles in the new Europe: Mr Rehn as Commissioner for Enlargement
and Ms Gęsicka as a representative of one of the largest, most
influential countries in the new EU – Poland – our ally in NATO and
our partner in so many other areas.
The EU is important for Norway and
for Norwegians. Here we have close allies, neighbours and
long-standing friends. Here we have our most important economic
partners. The EU is a meeting place for politicians, researchers,
the business community, artists and students. We share a common
culture. And history shows that we also have a common destiny. We
are all part of a rich and varied tapestry.
The Government has said that it
will pursue a proactive European policy. What does this mean?
A proactive European policy
involves seizing opportunities in Europe. It involves ensuring that
we can exert influence and do so in areas that are important to us.
It involves setting priorities and putting forward clear policy
aims. By taking action we will win credibility.
A proactive European policy
involves awareness-raising and greater efforts here in Norway. It
involves greater openness, more dialogue and active debate. We must
make use of the experience and knowledge to be found throughout
Norway – and that I can see is well-represented here today.
A proactive European policy also
involves shifting our perspective and focus. We must not allow
ourselves to get stuck in the yes/no rut from 1972 and 1994, when
Norway was engaged in a heated debate on whether or not to join the
EU. This must not be the only frame for all discussions on Europe.
Now we must look ahead to the future with an open mind. The debate
must continue – democracy is designed to encourage such debate. But
in our day-to-day work we must look together at the choices we
have, what is in our best interests, and how we can make the best
possible contribution.
We should look for opportunities
rather than just focusing on the problems in our relations with the
EU. The EU affects every part of our society, and every part of our
society should be aware of its importance.
We will cooperate closely with the
EU on the basis of existing agreements. We have the EEA Agreement
and the Schengen agreement. We cooperate on foreign and security
policy. We cooperate in the fields of research, culture and the
environment. We play an active part in NATO, the OSCE and the
Council of Europe.
We are not interested in pursuing a
proactive European policy just for the sake of cooperation, but
because we have a vision for the way Norway should develop and for
Norway’s role in Europe.
Today I would particularly like to
talk about two main political priorities for Norway in the enlarged
EU:
The first is how we can help to
develop an inclusive society in Europe.
The second relates to the need for
responsible management of natural resources, both fish and energy,
and our policy on the High North is highly relevant here.
These two priorities are closely
linked. I would like to begin by giving you a brief account of
developments in the EU as Norway sees them.
The latest EU enlargement has
changed the face of Europe. In a short space of time, the Union has
grown from 15 to 25 members. And more countries are in the queue to
join. Both this and previous enlargement processes have promoted
the growth of democracy and human rights and helped to make Europe
a more stable place.
Enlargement has widened the social
and economic disparities in the EU. Social differences that have
arisen over many years will not disappear overnight. Promoting
social and economic cohesion within the EU will be a long-term
endeavour. At the same time, immigrants to Europe must be dealt
with fairly and humanely. It is in our own interests to reduce the
disparities within Europe. Norway has already made
contributions in this respect, both in the form of welfare models
and in the form of financial contributions through the EEA
financial mechanisms.
The EU has become a more important
player in the international arena and often speaks with a single
voice. This can be seen in its dealing with the WTO, NATO, and a
number of other international organisations. Norway has similar
views to the EU and its member states on many issues, but in other
cases our views differ. We will work together with the EU where
this is appropriate. But we will also take a clear stand where our
interests and views diverge from those of the EU countries.
The pace of change in Europe in
recent history has been extremely high. I would like to remind you
that when the EFTA countries were negotiating with the EC in the
late 1980s, we were told that membership was not an option at the
time. This was because the EC was fully engaged in preparing the
single market, and therefore did not have the capacity to consider
further enlargement. The enlargement that is now taking place is
far more extensive and involves far greater economic and cultural
differences.
It is therefore not surprising that
there is a certain amount of fatigue and frustration in connection
with further developments in the EU. Weak economic growth and high
unemployment levels in the EU have given rise to public
dissatisfaction and protest. Now that there are more voices round
the table, it is harder to reach agreement on principles and rules
for governance, as we have seen in the efforts to draw up a
constitutional treaty. But there have been crises as long as the EU
has existed, and they have often given momentum to the process.
It is important for Norway that
things go well for the EU. This includes economic growth, effective
ways of fighting unemployment, and an efficient system of
governance that has widespread public support. This is important
for stability in Europe, and it is important for Norwegian
companies and jobs, because the EU is our most important
market.
I would like to make a general
comment at this point. In the world today, we are all dependent on
one another. Cooperation will be vital if we are to deal with the
challenges connected to climate change and environmental policy,
poverty reduction and human trafficking. We have to have common
rules. These rules must be understood, respected and obeyed.
It is thus a paradox that at a time
when we need common rules more than ever before, we are seeing
growing protests against the bodies that are responsible for
drawing up these rules. This is happening in the EU, in the WTO
and, in some countries, in relation to the UN.
As Norway has chosen to remain
outside the EU, I believe we should be realistic about the extent
to which we should be commenting on the EU’s own development. Gro
Harlem Brundtland once opened a speech in Brussels by saying that
asking a Norwegian prime minister to speak about the EU’s
development could be compared to asking Genghis Khan to speak about
peaceful coexistence.
But it is a fact that there is
ongoing debate within the EU – on making EU cooperation relevant
and meaningful for people’s everyday lives, on how the EU
institutions function, on how to find the balance between widening
and deepening of the Union. I meet colleagues from the original EC
countries who claim the EU today does not inspire people; they do
not feel that it is important to their lives, their hopes and
dreams for the future.
When such fundamental questions are
raised, it is easy to overlook the achievements that have in fact
been made and the results that EU cooperation is producing in
almost all sectors of society. This debate is an inevitable part of
the process that the EU is in at present, searching for its future
form and direction.
We should take note of this.
Because this may be a good opportunity for us to cooperate, put
forward proposals and ideas, and reach common goals in the very
areas that are important for people’s day-to-day lives, such as the
whole breadth of the energy sector.
I believe that one of the strengths
of our High North policy is that is brings Norwegian foreign policy
closer back home. The same can be said of our European policy.
For example, EU rules affect rural
Norway, the working lives of Norwegians, and the business
environment.
The Government is currently drawing
up an action plan that will enable us to implement a proactive
European policy. This must reflect the experience we have gained
and will be tailored to the enlarged EU, which is itself facing
considerable political, social and economic challenges.
The action plan will stress the
need for clear and timely political priorities. We must not try to
cover everything. We must coordinate our efforts. We must make the
best possible use of the opportunities we have to exert an
influence. We must be better at recognising that issues are
interrelated. We must take a constructive approach to our
obligations.
It is crucially important for us to
be involved at an early stage in decision-making processes where we
have clear interests. But we do not need to be equally involved in
all processes or have representatives in every one of the more than
400 working groups and committees we are entitled to be part of. We
often have common interests with the EU, and EU policy is a good
fit for Norway as well. But we do have to be ambitious.
The management of Norway’s affairs
with Europe is good in many ways, but there is also room for
improvement. A proactive European policy will have to be based on
openness, knowledge and public participation. We must all pull
together.
The Government is also engaged in a
dialogue with the Storting to ensure that the people’s elected
representatives are involved in our European policy. This will
provide a better basis for debate at an earlier stage, so that the
whole political spectrum can be heard before we try to use our
influence vis-à-vis Europe.
We must ensure that Norway has an
open and inclusive debate on Europe, with broad participation. In
my view, the starting point for this should be Norway’s place in a
social Europe.
Knowledge is fundamental for the
success of our European policy. We intend to step up efforts to
provide information and improve people’s understanding and
knowledge of the EU and how it works. These efforts will also
include the public administration. We have already started an
‘adult education project’, which involves among other things
sending all the state secretaries to Brussels in the near future.
This will be followed by other projects and schemes.
We need to increase the general
level of knowledge about the EU and strengthen education and
research in this field. We will improve the reporting and
publication of information on EU issues and ensure greater
transparency. We also want to establish dialogue and cooperation
with regional and local authorities, the social partners, various
organisations and movements, researchers, and other relevant
groups. These have expertise and useful networks. They often know
where there are problems and where we can make improvements.
The action plan will be presented
in a few weeks’ time. We are now involved in an extensive dialogue
with interest groups and experts who can help us to develop good
management of our European policy. We have had talks with the
social partners, interest groups and research centres, and next
week will be having talks with regional and local authorities. We
are grateful for the input and the many suggestions we have
received. We also appreciate suggestions and input from other
ministries and analyses from the Office of the Auditor General and
others.
I would like to emphasise that the
action plan is only the beginning of the process, not the end. We
mustn’t get into a rut at this stage. We must constantly be on the
look out for the best ways to promote our political priorities in a
changing Europe.
Ladies and gentlemen,
Norway’s primary goal for its
European policy is to promote the development of an inclusive and
peaceful society in Europe.
This means that we will be the
friend of our friends. We will stand shoulder to shoulder with our
friends in Europe. We can then expect their friendship in return,
and we are dependent on this. We will support the Nordic social
model, which is built on a strong sense of community, social
partners that show social responsibility and systems of
redistribution that ensure equal opportunities for all and make it
clear that everyone is equally valued.
The enlargement of the EU is a
major step. The new member countries have already done a great deal
in a short space of time to develop their systems and make
necessary adjustments. And this work is continuing.
Norway has supported the
enlargement. We admire the resolve shown by the EU and its member
countries in taking on such a major task and such great
responsibility. The new EU financial perspective makes it possible
to provide considerable financial assistance and real opportunities
for development in the new member countries. This is a positive
development and absolutely necessary.
We see that redistribution is
taking place not only within borders but also across borders.
Norway is taking its share of this responsibility. We are
contributing approximately NOK 9 billion over a five-year period
through the EEA Financial Mechanisms - approximately NOK 9 billion
for development projects in the new EEA member countries.
This financial support will promote
economic growth, democratic reform processes and the reduction of
social disparities. It will also help the new member countries to
meet their commitments, improve their environmental performance and
strengthen civil society.
Poland is particularly important in
this connection. The country receives around half of the funding
available. Agreement has been reached on the establishment of a
Norwegian-Polish research programme, a scholarship and training
fund, a seed money fund and an NGO fund. The NGO fund will be the
largest in Poland. We are delighted that Poland has also
contributed to it.
The deadline for the first call for
proposals was two months ago. Great interest was shown, and nearly
1400 applications were submitted.
The financial mechanisms are also
helping to strengthen bilateral relations between Norway and the
new member states. We are making it possible for broad range of
Norwegian actors to take part in schemes and activities under the
mechanisms both in Poland and in other countries.
However we cannot promote an
inclusive society in Europe through allocations and grants alone.
Experience from earlier enlargement processes shows the importance
of investment and trade. The fact that more people are moving to
new places for shorter or longer periods means that new contacts
are constantly being established and new friendships forged.
Cultural ties are developed and strengthened through opportunities
to meet. It is positive that Norwegian trade and investment are
being developed in the new member countries. It is also positive
that Norwegian artists are seizing the opportunities that are
available through EU programmes, and that support for translation
is bringing other people’s histories and narratives to
us.
For nearly two years, there has
been a migration of labour from the new member countries to Norway.
The transitional rules for free movement of people have worked
well. We have benefited from the additional labour that has come
into the country during a period of high activity. Like many of the
EU countries, we will be re-evaluating the transitional rules this
spring. However the flow of people has not been all one way. More
than 500 Norwegians are now studying in Poland; many of these are
medical students.
Before the summer, it will be clear
whether Bulgaria and Romania will become EU members in January 2007
or will have to wait until 2008. New EU members are also obliged to
apply to join the EEA Agreement. So that the single market can
function as smoothly as possible, it is important to ensure that
the two enlargement processes take place in parallel. This means
that negotiations on EEA enlargement will be an important issue for
the Government in the time ahead.
There are still many tensions in
Europe. The Western Balkans are still showing signs of instability
and the potential for conflict is great. I know that this region is
high on Commissioner Rehn’s agenda, and that it is less than a week
since he presented the Commission’s Communication on the Western
Balkans.
I believe that the EU is playing a
historic role here. Adaptation to European standards is important
for further development in the region. This will lead to greater
stability. Norway is providing substantial resources for the
countries in this region and is supporting their integration into
the Euroatlantic community.
Cooperation projects in the region
also promote stability. Last year, the EU signed the Energy
Community Treaty with countries in South East Europe, which covers
natural gas and electricity. Norway took part as an observer in the
process, and we are negotiating on Norwegian participation with a
view to accession when the treaty comes into force – probably
before the summer. We have expertise that will be valuable in the
development of this region and of the integrated European energy
market.
The enlargement of the EU also
raises important questions here at home. The EU and the EEA affect
the framework conditions for production and the labour market
throughout the country. We must prevent social dumping and pressure
on wages and conditions of employment. This is currently the
subject of debate throughout the EU, and Norway will take part. We
will strive to protect some of the core values of our society:
social inclusion, security and proper protection in the
workplace.
The Nordic countries have succeeded
in combining economic efficiency in a globalised economy with
social inclusion and protection of the individual. Although there
are differences between the individual Nordic countries, this
approach is often referred to as the Nordic model. It is based on a
balance of power between the state, the market and civil
society.
More and more people are now
looking to the Nordic countries. President Barroso recently noted
that the Nordic economic model has made most progress towards the
goals for economic reform. All the Nordic countries have high
scores on the Lisbon Indicators.
We have succeeded because we trust
each other and are able to understand and take account of each
other’s interests. Because we have a shared goal of providing equal
opportunities for everyone. Because we have a tax system that
redistributes wealth. Because we have an active public sector. The
social partners have played a constructive role. Their cooperation
has created social capital that we can continue to build upon. And
we have also demonstrated that this model is economically
viable.
The Nordic model has sometimes been
criticised. But both experience and research have shown that social
security, good services and a well-functioning labour market
enhance creativity and the willingness and the ability to accept
change, rather than the opposite. Commissioner Rehn knows this
subject well; he wrote his doctoral thesis at Oxford on the
importance of cooperation in small states in global markets.
We now find there is growing
interest in the EU for what are being called “Nordic” solutions,
such as the way we combine a flexible labour market with individual
security. This is one of the main priorities of the Austrian
presidency of the EU. We have no hesitation in promoting our model.
Together with the trade union movement and other interested
parties, we should draw up a strategy for promoting, as widely as
possible, the standards and rules that we believe should govern the
labour market.
However it is also important that
we remain open-minded. The ability to learn from others’ experience
has been vital for the success of the Nordic model. Meeting places
where states come together to exchange experience are potential
sources of renewal. A proactive European policy will inevitably
also involve a process of change and renewal at home.
Here I would like to highlight two
particularly relevant issues:
The first is the Services
Directive. Most of you will be familiar with this important matter.
The directive has not yet been adopted, and is being discussed by
all the member states. The European Parliament will deal with the
matter in February. It is hoped that the directive can be adopted
in the early summer or during the Finnish presidency in the autumn.
The directive is EEA-relevant, and formal procedures in the EEA
will start once it has been adopted by the EU.
Our policy is clear and
unambiguous. We believe it is essential to prevent social dumping.
National standards must be kept intact. And effective control
mechanisms must be in place. The Norwegian services market is
already an open one. The Services Directive will therefore give
Norwegian service providers new opportunities as the markets in
other countries are opened up. We are following the process in the
EU closely and will present our position in detail by 8
February.
The second issue I would like to
highlight is the proposed reintroduction of differentiated
employers’ social security contributions. This is a simple,
effective tool in regional development policy. The Commission has
now changed its guidelines for regional aid. This means that an
important goal has been reached. The new guidelines will make it
possible to reintroduce differentiated employers’ social security
contributions for the three northernmost counties and parts of
Nord-Trøndelag. Parts of the rest of the country will also be
entitled to reintroduce a system of reduced employers’ social
security contributions.
These examples clearly illustrate
the importance of a proactive European policy. We must grasp the
opportunities, make use of our expertise and take coordinated
action.
Ladies and gentlemen,
Finally, let us turn our attention
to the High North. I have spent a lot of time on this issue
already, including writing articles in the press and giving
speeches both at home and abroad. I will not repeat all of this
today, but I would like to highlight the close links between our
High-North policy and our European policy.
The Barents Sea is rich in fish and
petroleum which can be used to supply Europe. But we are also
facing major climate and environmental problems. The Artic
environment is vulnerable, and there are large quantities of
nuclear waste to be dealt with. Unsound management of the region
may have wide-ranging consequences for the whole of Europe.
We intend to focus on the
opportunities in the High North – for harvesting fish stocks and
developing energy resources, for economic growth, for tourism,
research and cultural activities and for expanding cooperation with
Russia. We also intend to focus on responsibilities – the
responsibility Norway as a coastal state has for ensuring sound
resource management and order in the High North.
Our relations with our neighbour
and partner, Russia, are developing, mainly in a positive
direction. But there have also been setbacks, such as the Russian
ban on imports of Norwegian salmon. And while we must keep our eyes
open for opportunities for cooperation in this new era, we must
also remember that democratic traditions are not yet deeply rooted
in Russia.
The EU and the US are also
developing their relations with Russia. This also opens up new
opportunities. We will make use of our own experience and unique
position to take active part in the dialogues that have now been
started.
We have been cooperating on
fisheries management for many years with both Russia and the EU.
This cooperation must be expanded. If we fail to manage fish stocks
sustainably the fishing grounds will be empty in only a few years’
time. We will strive to prevent overfishing and sales of illegally
caught fish and to ensure sound management of the fish stocks.
The EU is much the largest export
market for Norway’s fish, but we have repeatedly found that the
framework for our exports to the EU is not good enough. For many
years, we have had to put up with restrictions or threats of
restrictions on our salmon exports to the EU. Just two weeks ago,
the EU decided to impose antidumping measures on Norwegian salmon.
In our opinion, there is no basis in the WTO rules for this
decision. We have therefore decided that we will if necessary take
the matter up in the WTO. However, we will not do so until we have
tried every possible approach to find an amicable solution. Our
goal is to ensure a stable framework for the Norwegian fish farming
industry.
Both in Norway and in the rest of
Europe, the greatest challenge is perhaps to change people’s way of
looking at the world – to redraw the map, as it were. It is by no
means certain that our European partners understand what we mean by
the Norwegian word “nordområdene” – the High North, or “le Grand
Nord”.
The fact that the EU does not yet
have an established policy for the High North opens up
opportunities for us. Not all the answers have been found. This
give room for thought and room for action. One of our most
important tasks is to link our High North policy to EU policy on
energy, fisheries, shipping, research, and cultural affairs and the
EU’s relations with Russia.
Just at the moment, it is easy to
gain attention for energy issues. Energy policy and security of
energy supplies are at the top of the EU’s agenda. We are engaged
in a close energy policy dialogue with the EU. Our views are taken
seriously because we are predictable and a major supplier. Almost a
quarter of the natural gas consumed in the EU in 2003 was from
Norway. Rising gas production means that we are becoming even more
closely linked to the rest of Europe, with new pipelines providing
physical links. By replacing coal, Norwegian natural gas also makes
an important contribution to a more environmentally friendly energy
mix in Europe.
We welcome the fact that Norway has
been invited to join with Russia in a strategic energy partnership
in the north. If Norwegian companies take part in commercial
developments on the Russian continental shelf, this will strengthen
cooperation between our two countries. Two Norwegian companies,
Statoil and Hydro, are among the five companies in the final stage
of negotiations before the Russians choose their partners for
development of the Shtokman field. The Norwegian authorities are
supporting these two companies, and I will discuss this during my
visit to Russia in two weeks’ time.
So far I have discussed resources
in the sea and below the seabed. But sound management in the High
North also means that we must set high safety standards for
shipping. The use of technology to liquefy natural gas makes it
possible to transport gas from the High North by tanker. The
Government is therefore engaged in a close dialogue with the EU as
it draws up an all-embracing maritime policy. We are an interesting
partner for the EU in this dialogue because we are clear, we are
competent and we are quick to grasp opportunities.
Knowledge is vital. We need
knowledge to promote our interests. We need cooperation to build up
our knowledge. This is why we have launched the research and
development initiative Barents 2020 to identify knowledge gaps. Our
participation in EU research programmes means ties us closely to
knowledge development in Europe.
And we have a contribution to make
in this process. One example is last year’s award of the EU’s
prestigious Descartes Prize for Research. One of the winners was a
project run by a team including scientists affiliated with the
University of Bergen. This project provided valuable information on
the possible impacts of climate change on fisheries, energy
extraction and transport in the High North.
Ladies and gentlemen,
Our High-North policy and our
European policy are being woven together.
We are living in an era when the
borders of the European Union are changing. New colours are being
added to the tapestry. Old dividing lines are fading. New ties and
friendships are developing. The fog is lifting in the High North,
and the progress we are now making here is also linked to the
changes further south in Europe.
I have described our two main
political priorities: we will work towards an inclusive society in
Europe, and we will seek to ensure responsible management of
natural resources. These two priorities are closely linked. We are
talking about managing resources: human and natural resources.
The overall goal of both these
priorities is to make Europe more stable and equitable. We have a
major responsibility for stewardship in line with our Nordic model
for society and welfare. We also have a major responsibility for
ensuring sound management of the natural resources in the High
North.
We cannot carry out these tasks
alone. We are dependent on cooperation and dialogue with our
European friends and allies. We must pursue a proactive European
policy. We must grasp opportunities. We must expand our knowledge.
Greater openness and closer dialogue will make it possible for our
policy to reflect all the colours and nuances in the tapestry.
If we are capable, if we are
knowledgeable, and if we all pull together, we will succeed.
Thank you for your
attention.
