Speech delivered on the implementation of Estonia's European Union Policy by Prime Minister Taavi Rõivas at the Riigikogu, 17 November 2015

19.11.2015 | 16:24

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Honourable members of the Riigikogu, Honourable President of the Riigikogu, your Excellencies,

This is not the first time this year when matters concerning Europe have led me to speak in front of the Riigikogu. Europe was the focal point during the discussion on the foundations of forming the Government as well as in relation to the political statement that was presented in the summer. For the past six months we have been working on Estonia's European Union Policy for 2015-2019 in close cooperation with both the Riigikogu and the stakeholders.

Although it is a government document in the formal sense, it is customary for Estonia to find as large a commonality as possible in European matters, and represent the Estonian Government and the Riigikogu with a joint mandate. Truth be told, this has been one of the main supporting pillars for our success so far. As a result of this document, we hope to form more detailed standpoints on approximately 70 initiatives, about which I plan to report back to you the following year. I would like to remind you that one of the main tasks of this Government is the successful presidency of the Council of the European Union in the first half of 2018. I will now touch upon a few important keywords and topics that are brought up in this document.


Dear members of the Riigikogu,


If we were to picture ourselves in the future for a moment and look back on 2015, the most prominent highlights would probably be connected to security issues – mostly wars and violence in countries neighbouring Europe, the resulting uncertainty and flows of migrants; but terrorist acts in Paris and other parts of Europe as well. Friday night’s acts of terror in Paris and the slaughter at the satirical newspaper Charlie Hebdo office earlier this year were both repulsive attacks against our common democratic principles and our way of life.


Our best response is to stay true to our values, and what’s most important, stay true to ourselves so that our behaviour does not come to resemble that of the attackers. France has set an example and been a symbol of these values for many years. The Declaration of the Rights of Man and of the Citizen, passed by France's National Constituent Assembly in 1789, focused on the basic humanist principles of the Age of Enlightenment and separated them from religion and the form of government. This became the foundation for Western societies, the founding acts of the European Union and the Constitution of the Republic of Estonia. ISIS is a inhuman and barbaric opposite to this understanding. This is why we are all French today – one for all and all for one. We will do all that is necessary to overcome religious extremism, terrorism and hatred.


However, security is not on our minds only due to recent terrorist attacks. There is an ongoing war at the proximity to European borders, which has brought about drastic and unfortunately lasting changes in the security environment for a foreseeable time. The key measure of foreign policy is its success in the immediate neighbourhood. It is not possible to force your own opinions and values on others. However, all countries should have the opportunity to choose a suitable way of life and their alliances. Europe and the European way of life do not pose a threat to anyone. War and aggression are not the instruments of international law; no justice can come of injustice. This is why the Minsk Agreements must be followed to the letter – until Ukrainian border guards are on post throughout the entire length of the Ukrainian state border, not some foreign power or an extension thereof. And there can be no bargaining room concerning the set conditions – cooperation elsewhere does not mean that Europe can make concessions in its neighbourhood. Compliance with the Minsk Agreements does not bring about the restoration truth and justice, but rather a partial restoration of the status quo ex ante. Losses of war remain, our eyes will remain open, and Europe has to come to the necessary conclusions. Common Foreign Policy, including the policy of sanctions, should be of a patient, consistent nature, and capable of reacting to escalation if necessary.


The success of the Neighbourhood Policy and the unadorned evaluataion of the security situation remain priorities for Estonia and should be the cornerstones of the EU Global Strategy for foreign and security policy, which will be completed in the coming year. Whereas the goal of the Southern Partnership of the European Union involves broad-based partnership and cooperation, the Eastern Partnership also includes a European perspective. In the future, our value proposition to our neighbours should also contain gradual sharing of the freedoms of the European Union – freedom of movement of workers, goods, services, capital and information – as is already implemented by some non-EU countries. In order to do so, the keywords for 2016 have to be visa waiver and free trade for Georgia and Ukraine.


Honourable members of the Riigikogu,


The main question, maybe even an existential question, for Europe during this year and the next will concern solving the refugee crisis that has escalated as a result of the Syrian civil war. In relation to the terrorist attacts that took place in Paris, I find it necessary to open this topic by saying that drawing direct links between refugees and terrorism is arbitrary. By now we have clear intelligence on four terrorists who were all were French citizens I would like to reiterate what Bishop Philippe Jourdan has said – there is anger in the hearts of terrorists and it has nothing to do with religion or nationality. The power vacuum that has occurred in failed states has created fertile soil for terrorist organisations and radical religious organisations, such as al-Shabaab, al-Quaeda and ISIS. These groups do not pay attention who end up as targets of their brutality or who gets to live; these organisations are the reason why so many people are forced to flee their homes. If terrorists abuse the asylum system or any other system, we have to take a stern look at our capabilities to avoid such situations and create a functional system, instead of generalising our allegations to all war refugees.


Nevertheless, I agree with the President of the European Council Donald Tusk – our primary task and responsibility as European leaders lies in keeping Europe safe and protected. Our first task is to gain control over current on-goings. We should not slam our doors in the faces of those in need, but we do have to improve the way in which people who enter the European Union and Estonia are registered and the way in which their need for help is verified. The European asylum system does not need revision only in terms of solidarity and burden sharing, but also from the point of view of law enforcement and internal security. One option is to bring back the expedited procedure for identifying unjustified requests and sending the applicants concerned back without delay. We should create joint and interoperable systems for dealing with preliminary inspections, border crossing, overstay and passanger name record, as soon as possible. We acknowledged the necessity of mitigating security risks as soon as the discussion began and offered the help of our procedure team, which was compiled of officials from various agencies, to other member states concerning the implementation of resettlement schemes.


The crisis mechanism of the European Union for the resettlement of refugees, which is not yet fully functional in the southern member states is not a viable solution to the migration crisis. This mechanism is necessary first and foremost so that European freedoms would apply in the case of crisis as well, and would provide support for the member states that have been affected most by the crisis. This is exactly why I said last week, when Sweden restored internal border controls, that in the framework of our existing commitments we should evaluate positively Swedish request for relocation. The reason for this is not the mere fact that Sweden is a country very close to us, but also because the situation at the external borders is not yet under control, and we are facing great difficulties with initiating resettlement from the southern member states.


I have always thought that we should learn from this crisis and use the opportunities we get to implement change. One of them is the idea of a Common European Border Guard System. This is not possible to achieve in a short time span, but the situation today indicates that we have to consider a higher concentration of means; in the future, this would be funded from the central EU budget. Although in 2015, Estonia has managed to contribute 10% of its border guard personnel to various European operations, in the long run such a solution is not viable. If the sovereign right of border control also means lack of control we are soon out of necessity without the European freedoms and borderless Europe, without which the youth of today could not even imagine life in Europe. No freedom should be taken for granted and guarding external borders is a public service that all member states on the external border provide to other member states. This is one of the reasons why we are currently creating an innovative and technically advanced eastern border for the European Union. Restoring internal border controls is a result of a missing general solution or its weakness, and this is an area that would need much more Europe.
Honourable members of the Riigikogu,


While focusing on current issues, we should not forget about the eurozone. I spoke of this while addressing a full house when the crisis clock already struck the hour. Greek waiver of the euro would not have brought about the end of the eurozone, although so far, no-one has been able to prove how the expulsion, termination, or suspension of membership of a single country would have made things better for Greece or the eurozone as a whole. How convincing would such a eurozone be to its members or market? It is good that we reached an agreement. I believe that it can be implemented, is in the best interest of all of us, and reinforces the viewpoint of unwavering nature of the eurozone membership. The agreement does not however mean that I approve of the preceding irresponsible and costly political charades.


We have persistently supported the notion that the stability-orientated policy and market pressure of the eurozone have to continue. This is why we have to complete the banking union with a deposit guarantee system and resolution fund, create a of capital markets union, and strengthen the global competitiveness of eurozone countries. Considering this crisis experience, we should also add clear rules concerning the sovereign default proceedings of a eurozone member to our toolbox for future use. This would make it possible to restructure the debt obligations of a eurozone member state inside the eurozone, and would give a clear signal to market participants concerning decision-making about investments, both to private and public investors. In addition to initiatives of the monetary union, it is important to maintain stability, implement decisions and create opportunities for economic growth and for providing support to investments.


Honourable members of the Riigikogu,


The situation of European agriculture has shown extreme turbulence as well. The sharp incline in farmers’ income and profit numbers of the dairy industry indicate, among other things, serious problems within the supply chain. The Common Agricultural Policy has stood the test of time in crisis situations. In the autumn, the European Union allocated approximately € 500 million to an aid package aimed mainly for helping dairy producers. This is an addition to the € 42 billion that are paid from the EU budget annually as direct grants. This year Estonia added nearly € 10 million from state budget funds to the EU grants. Along with the European Union contribution, the agriculture sector has received € 33 million in extraordinary grants this year. These grants are meant primarily for carrying out structural changes. An implementing decision of the European Union will likely come to force already this December; this decision will grant us the desired flexibility to relocate live pigs in various trade restriction zones.


However, neither Estonia nor the European Union has bottomless pockets, so the sector has to contribute and search for solutions on its own as well. It was possible to predict the bottlenecks. Whether this concerns finding new markets, developing common actions, or creating crisis management instruments for initiatives. We have requested and received help from the European Union, but why are we unable to demonstrate solidarity towards our partners today, here in Estonia, when it comes to complicated situations in the supply chain. If there are no farmers, then there is no production or products to sell, reprocess or export. Consumers notice these developments and make conscious choices in shops. I would also like to express my gratitude to entrepreneurs who have treated farmers in an understanding and flexible manner.


To conclude the topic of crises, I wish to emphasise that cooperation in Europe, unity and solidarity help Estonia and other member states as well. There is no European policy that would not have European freedoms and the idea of solidarity engraved in its fundamental logic. Europe is not a friend only during good times, same goes for Estonia. Although the European solidarity is also favourable to Estonia, I would still like to emphasise that Estonia is not, nor wants to be a selfish country. Estonia wishes not only to be a better and more successful country, but also to help others. Examples of this can be found in the outstanding activities of our military in places such as Mali, Central African Republic or Lebanon. These efforts are a part of European solidarity, something that enforces our feelings of belonging to the EU. This is also why the Government’s European Union Policy begins by specifying that trust and solidarity are the cornerstones of common values and cooperation in the European Union. As Jean-Claude Juncker said in his annual State of the Union address, we need more Europe, and more union in this union.


Honourable members of the Riigikogu,


Our coalition agreement specifies that during its Presidency, Estonia will focus on the development of a single market and the digital single market, on energy policy and neighbourhood and foreign policy. I talked about foreign politics already mentioned in the beginning of this speech, but now I will briefly go over the other two themes as well.


I have said that as a country situated on the geographic periphery of the European Union, energy, transport and communication links and corresponding developments on the internal market are especially important to us. Despite the criticism, our agreement with Finnish colleagues was imperative so that we could reach a joint understanding in matters concerning the BalticConnector gas pipeline and the possibilities of establishing a terminal for liquefied natural gas. Fortunately, the new Finnish government honoured this gentlemen’s agreement and recently, as a result of hard work, we submitted a joint application to the European Commission a joint application for building a gas pipeline that connects Estonia and Finland according to what we have agreed upon. We decided to follow things through together as well in order to get the necessary funding for the project. Finland’s waiver gives Estonian entrepreneurs the chance to compete for developing this regional gas terminal. I am sure that if we had stuck to our stubborn all or nothing notion, without a foreseeable agreement, we would have made just as little progress by now as we had by then.


On the electricity market, our strategic goal is still to desynchronise the Baltic energy system from the North-Western Russian energy grid within the next ten years. This plan cannot be put to life without cooperation between the Baltic States. But the most important development in the field of energy in the near future will be reaching a global and binding climate agreement in Paris. Despite our emphasis on the use and valorisation of indigenous resources, the EU climate policy corresponds to the long-term goals of Estonian energy policy.


Honourable members of the Riigikogu,


Today, the world’s largest accommodation company does not own any hotels. The largest taxi company in the world does not own any taxies. There is not much sense in talking about ownership of books, videotapes or music records. Developments enhanced by information technology are so rapid that we find it hard to imagine what the next couple of years might bring in terms of our information society. In any case, it seems that future generations no longer believe in the notion that you must amass huge amounts of things to lead a fulfilling life. According to the auditing company PriceWaterhouseCoopers, by the year 2025 the potential value of the five main sectors of sharing economy can reach 335 billion dollars.  By 2035, we world may already have 1 billion digital nomads who are more keen on e-residency and sharing economy apps than things that hinder global mobility and lifestyle. Our task here is to offer functional e-solutions to them. Europe has to embrace this digital tipping point and Estonia wants to be in the forefront when it does.


Luckily, European developments concerning a single digital market are clearly visible and promising. The abolition of data roaming charges as of the second half of 2017 supports the spread of digital economy that is increasingly dependent on mobile devices. The Digital Single Market Strategy of Europe, which was submitted by Andrus Ansip, involves a great number of ambitious plans and delightfully many digital fingerprints from Estonia, so we are hopeful that main proposals in the strategy will be approved during our coming Presidency. A hearty third of Estonian’s European Union Policy is connected to digital solutions.


In addition to implementing the aforementioned strategy, the European Union should also work towards ensuring the fifth fundamental freedom – the free movement of information. Information has been named the currency of the 21st century and the corresponding freedom should enable a person, as the owner of their personal data, not only to check, but also use and control their personal information. It should also be possible to allow other organisations to use the data, and the one-time use of data both in the public and private sector made possible. Although the implementing options of this idea have to be further analysed, enforcing such a freedom could potentially have a significant economic effect on start-ups and small companies.


Additional economic increase may result from the legal persons’ freedom of movement aided by digital solutions. This would be the case if current burdensome procedures that are necessary for initiating activity in another member state would be replaced by a transferrable electronic registration. If that would also be supported by mutual recognition of administrative decisions and trust on the European Union level, then the rights, permits and licences that are valid in one member state could be valid in another member state as well. This would make cross-border trade much easier and would help use the full potential of external competition and add efficiency to the public sector.


Honourable members of the Riigikogu, your Excellencies


Unlike the British, who have always had a special relationship with the continent, Estonia has been guided in its Europe-oriented efforts by the daring and youthful words of Gustav Suits: “Let us stay Estonian, but become Europeans as well!” These days, no-one doubts that we are Europeans, but the European pursuit and European nature have been ingrained in us for a long time now. We know what it means to live without that pursuit.


This week will mark the start of discussions on David Cameron's proposals, which mainly concern the relations between UK and the European Union, and are a preparation for the so-called British referendum, which should take place before the end of 2017. I have talked about this with the British Prime Minister David Cameron many times and in my opinion, it is possible to reach an agreement based on his proposals. Estonia has a good relationship with the United Kingdom, whose membership of the EU is not only very beneficial to us, but to the rest of the Europe and for the United Kingdom itself as well. This is the viewpoint we should have during the discussion – without the British the European Union would not have the economic, political or military characteristics that it does have today. In terms of the content of discussions, we shall draw on the fact that EU’s single market and fundamental freedoms are a balanced whole with the free movement of people. We share the British wish to strengthen the role of national parliaments, but we do not picture this in the form of a football referee giving out red cards, instead, we find that national parliaments should have a joint right of initiative (a so-called green card). I believe that the Riigikogu should take a stern look at its current Rules of Procedure in order to better participate in the decision-making processes of the European Union.


However, the relationship that the British are aiming for their membership is not similar to the one that Estonians have in mind for the future of the European Union and Estonia’s role in it. We see the European Union as an answer to potential challenges and want to be at the forefront of European Union developments. We are open to strengthening institutions and competencies, as well as cooperation in new areas. As a member of the eurozone and the Schengen area, we are already in a much different situation. Despite the aforementioned, we are definitely in favour of an open membership and do not desire political division in the European Union as its main strength is just that – political unity.


Last but far from being the least significant, I want to highlight that in addition to very many similar views and attitudes we are also connected to the British through our trio presidency. I would like to remind you that one of the main tasks of this Government is the successful Estonian presidency of the Council of the European Union in the first half of 2018. In addition to Estonia's European Union Policy, which is one of the foundations of planning the Presidency, the Government will also receive an updated Presidency Action Plan, which will function as a base document for the organisational planning of the Presidency. This version of the Action Plan will be the last and the Government’s political role in the preparations will be stronger and more direct from now on. When it comes to specific preparations, we have selected over 400 Government officials and members of the Riigikogu, as well as private sector employees, who will take on the main task of managing working groups and leading the Presidency. Competent and European civil servants is one of the main things that Estonia will get to keep from this period. Next year, we will send to Brussels the majority of officials who will participate in the 2018 Presidency. In addition to the fact that our work tempo may be all the faster, as our presidency will be at the end of the European legislative period, we should also be ready and willing to work with all topics and learn from the crisis years, in order to be prepared better for unexpected events and more serious crises.


Although the main burden of preparations in the coming years lies on the Government, the Riigikogu also has an important role in the Presidency, and not only from the perspective of improving parliamentary diplomacy. First in the list is of course the budget, which we have calculated based on the experiences of other Presidents and planned to be approximately € 74 million. Secondly, we need the Riigikogu’s support for implementing several changes in the legislation of public service; these changes would enable more flexible management of the working hours and motivation of officials who are connected to the Presidency. I hope that the Riigikogu will provide all means of support so that the Presidency would be prepared and carried out well, both in terms of content and management.


I have high hopes for your diverse, efficient and professional cooperation in the coming years. There are 775 busy work days left until the start of the Presidency.


Let’s work together to make Estonia greater! Thank you for your attention!

Valitsuse kommunikatsioonibüroo

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