Joint Communiqué of the 12th Conference of Finance Ministers of the Nordic and Baltic Sea Countries

Ministers of Finance of the Nordic and Baltic Sea Countries – Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Sweden and Denmark – and the Russian Federation met for their 12th Conference on 31 May 2007 in Oslo, Norway.

The Conference was hosted and chaired by Ms Kristin Halvorsen, Norway’s Minister of Finance.

Ministers discussed two main topics:
• Sustainable development: Climate change and energy efficiency
• Building Social Bridges – for more employment and social inclusion

The discussion on sustainable development centred on the interlinkages between climate change and energy efficiency. Ministers agreed on the importance of limiting man-made climate change, and that an integrated approach to climate and energy policy is needed to achieve this. It was acknowledged that economic instruments are important for mitigation of greenhouse gas emissions. Ministers stressed that ministries of finance have a central role to play, in order to ensure that climate change policy is cost-efficient. The existing fruitful regional cooperation in the field of climate and energy should be further developed, as the Nordic and Baltic Sea countries are key parties in the work on a post-Kyoto climate regime. The Testing Ground Agreement and Facility are innovative initiatives with a potential to facilitate more effective climate policy in the Nordic and Baltic Sea countries.  

The discussion on social bridges centred on two elements: First, how to improve the functioning of the labour markets, and in particular, ways of improving labour supply, and secondly, the role of lifelong investment in human capital in enhancing employability and social inclusion. Ministers agreed that while economic policy must facilitate structural adjustment and support sustainability of public finances, it must also be designed so as to minimise social exclusion. Measures should be aimed at improving incentives for individuals to contribute to economic activity. While benefit systems are instrumental for protecting individuals from the negative repercussions of not being employed, they may, if poorly designed, serve to exclude rather than to include.

Ministers also took note on the latest economic developments within the Nordic and Baltic Sea region and exchanged the views on possibilities for closer cooperation in strategic policy areas.

Ministers welcomed and accepted with thanks Germany’s offer to host the 13th Conference of Finance Ministers of the Nordic and Baltic Sea Countries in 2008.