Vaira Vīķe-Freiberga, President of the Republic of Latvia:

Latvia and the New Round of EU Enlargement

Address to the Foreign Affairs Commission of the European Parliament Brussels, November 27, 2000

Mr. Chairman,

Excellencies,

Ladies and gentlemen,

It is a true pleasure to be here in Brussels, a city that has become a vibrant centre of gravitation for our Continent. I am delighted at this opportunity to address today the pivotal issue of our common future – the enlargement of the European Union.

Let me begin by emphasising the invaluable support of the European Parliament to pan-European integration, and to Latvia’s accession to the Union.

Last month, on October 4, the European Parliament called on accession negotiations with Latvia to be conducted in such a manner as to allow Latvia to participate in the first wave of enlargement – provided, of course, that Latvia can demonstrate the required progress in adopting and implementing the Acquis communautaire . We are thankful to the European Parliament for its recognition of Latvia’s achievements, and for maintaining the crucial principle of individual merit and fair treatment among the candidate countries.

I take this opportunity to invite Chairman Elmar Brok and his fellow members of the European Parliament’s Foreign Affairs Commission to Latvia during the Belgian Presidency of the EU in the second half of next year. You will all be most welcome guests in our capital city, which will be in the midst of its 800th anniversary celebrations.

Ladies and gentlemen,

For Europeans, this turn of the millennium is a very exciting time. We face fundamental changes and far-reaching transformations. Our Continent has entered the new phase of a comprehensive pan-European reunification. Ongoing institutional reforms present new options regarding the distribution of powers and co-operation. Accession negotiations with the candidate countries are proceeding to a decisive stage.

The subject of my presentation today concerns our vision of Notre Europe in the 21st century, as well as our approach to current issues in EU enlargement negotiations.

Nearly all of the countries on our continent share a common dream. We dream of a Europe united and free of armed conflict. We dream of a stable, secure, and prosperous continent.

The enlargement of the EU and of NATO will help us to realize this dream. The end of the Cold War and the collapse of the Soviet Union allowed the former communist bloc countries to resume their status as sovereign states and independent political entities.

Given at last the opportunity to make their own choices, these countries have opted firmly in favour of Western democratic values and the concept of a civil society. Armed with the determination to reassume their rightful place in an extended family of European nations, they have been working hard to rebuild their economies and to restructure their social systems.

The common values that all of our countries hold rest on a solid core of immutable, fundamental principles: free elections and genuinely democratic political institutions, respect for private property and the existence of a free market economy, respect for human rights, and the primacy of the rule of law.

These principles are the foundation upon which we wish to build, in order to create a family of secure, stable and prosperous nations that will eventually encompass the entire European continent.

The realization of such a monumental endeavour will require a high degree of integration on a European scale, and involve a number of mutually reinforcing processes. Crucial among these are the determination of the European Union’s future identity, and the continuation of the European Union’s enlargement.

Ladies and gentlemen,

The creation of what is now the European Union soon after the end of the ruinous destruction of the Second World War, brought with it an era of unprecedented peace and prosperity in Western Europe.

This Pax Europea has lasted half a century, and I devoutly hope that it will continue to reign for centuries to come.

Yet the need to be competitive on a global scale, along with the challenges posed by the influx of a large number of new member states, has created external pressures on the EU that have contributed to the need for change. Furthermore, the European Union’s own internal dynamics have reached a stage that requires new answers on the future of this international organisation.

Discussions on the future form of a new Europe, its models and perspectives, have arisen with renewed vigour this year. European leaders, politicians and analysts have addressed a variety of options. We in Latvia are following these discussions with great interest and stand ready to contribute to this pan-European debate.

Clearly, the EU we enter will differ from the one we know at present. Given the difficulties of arriving at a rapid agreement on some very fundamental issues, we believe that certain aspects of the EU’s reform should be decided upon at a later stage. This would provide an opportunity for acceding member states to participate in shaping the future of the European Union.

In this year’s Enlargement Strategy Paper, the European Commission proposes using the framework of European Conferences – with the participation of the Foreign Ministers or Presidents of the EU member states and candidate countries – as fora for discussions about the future of Europe. Latvia appreciates this proposal. The discussions in Sochaux on November 23 revealed that the European Conference might indeed be an appropriate venue for this type of discourse.

Indeed, the debates at such fora will be far more productive and enjoy far greater legitimacy if the candidate countries themselves, as future member states, are also involved in crucial decision-making discussions on the future of organizations that they, too, soon will be joining.

Whatever model is chosen for the future EU, the equality of the Union’s member states must be ensured, and the creation of a two-tiered Europe should be avoided. Consequently, Latvia has certain reservations about the merits of a unilaterally created "hard core’’ body of EU nations. Any principle of enhanced cooperation among the EU’s member states should contribute to integration rather than fragmentation. It should not be used as a protectionist measure by current EU members against prospective future members.

Latvia also welcomes the proposal to abolish the veto rights of any single member state in the Council of Ministers. In our opinion, the exercise of veto powers will not contribute to integration.

The importance of a strong and independent Commission is undisputed. For this reason, Latvia believes that each member state should have the right to nominate one national commissioner. We fully realize that each member of the Commission must be supranational, and that each commissioner has the solemn duty to place the interests of the European Union above those of his or her own national state.

Nevertheless, the appointment of at least one commissioner from each member state will help to strengthen the Commission’s legitimacy, because most people see the Commission as a sort of government of the EU.

The EU faces the difficult task of implementing sweeping reforms without hampering the effectiveness and accountability of its institutions. Under these circumstances, Latvia hopes that the most urgent institutional reforms of the EU are agreed upon at the upcoming Nice Summit, in order to avoid unnecessary delays in the accession negotiations, and in the enlargement process itself.

Ladies and gentlemen,

The EU’s commitment to extend its borders eastward may well be the most important political decision for Europe in the next century. For this reason, the public at large in both the EU member-states and the candidate countries should be assured that the EU’s enlargement is not a matter of the political elites and big business alone.

Enlargement is an investment in the future of the entire continent, and for everyone living in it. Enlargement therefore requires democratic legitimisation through intensive public debate and communication. Latvia strongly supports the Information Strategy begun by the European Commission. In the implementation of such sweeping reforms, the citizens of all European countries must feel that their voice is truly being heard. We must continue to raise public awareness about the advantages of an enlarged EU.

Ladies and gentlemen,

The accession negotiations leading to the EU’s enlargement are lengthy and complicated. Latvia is interested in an open and fair process, in which each country’s state of readiness is judged on its own merits, and according to its ability to answer to the Copenhagen criteria.

The European Commission’s recent Enlargement Strategy Paper essentially corresponds to Latvia’s interests. Firstly, it rejects the formal classification of the applicant countries according to groups, and does not exclude Latvia from catching up with those countries that started their negotiations earlier. It also provides a "road map" for the conclusion of negotiations.

So far, Latvia has performed well in its accession talks. During the first year of negotiations, we have engaged in discussions on over half of the topics covered in our eventual accession treaty. The pace of negotiations has been faster than that of the first applicants, who started their negotiations earlier. This shows that the decisions adopted by the European Council in Helsinki on an individual approach and catch-up possibilities are warranted.

Latvia has proved its ability to make full use of the individual approach and catch-up principle. We are pleased that all of the candidate countries are now being given an equal chance to complete the accession process according to the real progress they have made. We welcome the decision of the French Presidency to hold accession negotiations with each candidate country according to its actual state of readiness, and regardless of when negotiations with that country were actually begun.

We consider any attempts to regroup the candidate countries into artificial, premature categories as being somewhat mal ? propos . We do not wish to be left waiting at the door when we are, in fact, ready to enter.

I can assure you that Latvia is prepared to be among the first in Central and Eastern Europe to join the EU. By the end of this month, the Latvian Government will have approved nearly all of its negotiation positions.

These positions offer solutions for some problematic issues pointed out in the most recent Regular Report on Latvia, namely, administrative capacity, judicial reform and agriculture.

The Commission’s most favourable assessment of Latvia’s progress allows for the opening all of the remaining negotiation chapters during the upcoming Swedish presidency of the EU. I devoutly hope that this will happen. There should be no impediments that might artificially slow down accession negotiations, which we would like to conclude by the end of the year 2002 – the target date set by both Latvia and the European Commission.

Ladies and gentlemen,

Enlargement has worked as an additional impetus for reform in the candidate countries. In Latvia, both political and economic reforms have been implemented consistently and have led to unquestionable results. The continuously favourable assessment of Latvia by international credit rating agencies, and by the European Commission, attests to the country’s enduring economic and political stability.

From an economical point of view, Latvia is practically ready for accession to the EU. About two-thirds of Latvia’s foreign trade is already conducted with the EU member-states. And the European Commission has concluded that Latvia’s economy would be capable of withstanding the market pressures of joining the Union.

Latvia’s economic indicators are extremely favourable. The country’s Gross Domestic Product increased by over 5 per cent, according to figures for the first half of this year. Latvia’s rate of inflation and foreign debt are among the lowest in the Central and Eastern European countries. I should also mention that the country’s bankruptcy law is fully functional.

The privatisation process in Latvia is nearly complete, with the exception of a few of the country’s largest enterprises, such as the Latvian state energy company, shipping, and railroad services, where other methods of restructuring and liberalisation are being applied.

Privatisation has helped Latvia to attract foreign direct investment. Latvia occupies a stable fourth place among the candidate countries in attracting FDI per capita. Taking into account the relatively small size of Latvia’s local market, this is a considerable achievement that reveals the liberal character of Latvia’s economy.

Ladies and gentlemen,

Over the past half-century, the enlargement process has contributed to economic growth and political stability in the European continent. It is sure to be a win-win process for both the current and future member states of the Union, just as it has in the past. For the EU member states, enlargement means more stability, more security and more opportunities. The success of this enlargement will determine the EU’s capacity to compete on a global scale. The European Union of the future, with its modern and open societies and over 500 million people, shows great promise of becoming an economic and political superpower.

The EU’s continued enlargement will be a source of mutual enrichment, with the cultural diversity of the European countries as a major asset for the future of the continent. Europe has always been a multicultural entity. "Unity in diversity" remains an essential feature of the European Union itself.

In assuming the presidency of the Council of Europe, Latvia is ready to assume it responsibilities in promoting European solidarity and preserving our continent’s cultural heritage. Among the planned activities during Latvia’s presidency will be a special conference due to be held next April in Riga on the future of Europe’s less widely spoken languages.

Let us recall that the primary goal of the EU’s founding fathers, as they convened in 1951 to sign the Treaty of Paris, was to "first of all create real solidarity" among the organization’s member states.

During the debates on the different forms of institutional reform in setting out Europe’s future, we remain faithful to the principles of solidarity, equality and mutual trust, which form the very basis of any union. The future of Europe should not be marked with divisions between the large and the small, or the old and the new. The structures of the Union must protect equally the interests of all member countries.

Europe – our common home – is a unique place, where so many nations with different cultural, political, and historical experiences are learning to live together peacefully. Enlarging the fold should not be seen as endangering the advantages that the EU members have managed to achieve. Every country is a piece of our Continent, and Europe is made the greater by including us all.