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President of the Republic of Estonia Warsaw University of Technology 18 March 200218.03.2002
The Future of Poland and Estonia in the Baltic Sea Region
Dear rector!
Distinguished academic family!
Excellencies!
Ladies and Gentlemen!
The Senate Hall of your University has survived turbulent times. Rectors throughout history look upon us from the pictures on the walls, as if symbolising changing life as well as permanent values.
As a former rector I have the honour to recognise outstanding achievements of the Warsaw University of Technology, which has such distinguished a-hundred-years-old history. I am pleased to admit that quite a few Estonians have studied at the University throughout the history, especially between two World Wars. According to Estonian historian Raimo Pullat the number of students from Estonia reached about 30 in Poland in the late 1930s. Poland provided benefits to our students, which increased the number of students as well as the popularity of your University in Estonia. Highly symbolic is the fact that bridge engineering was significant among disciplines studied in Warsaw.
Our youth has always been ready to go to the wide world to learn - living at the crossroads on the coast of the Baltic Sea we have participated in achievements of other European nations. Estonia's national interests and Estonian national identity have belonged and still belong into Europe.
The Estonians as a nation developed on the current territory about five thousand years ago. Century after century wars rolled across Estonia. Our territory was subjected to different countries whereas our national identity survived despite of everything. Estonia's European identity became significantly more valuable during our national awakening period at the end of the nineteenth century and was consolidated in the independent Republic of Estonia after the proclamation of independence in 1918. Even fifty years of Soviet occupation could not break the European orientation of Estonia. The restoration of Estonia's independence in 1991 opened a possibility to consolidate Estonia's historic position in Europe.
Dear audience!
The co-operation between Poland and Estonia is based on the varied and rich history of our relations, unity of aspirations and endeavours as well as mutual understanding. I have seen it in Estonia and experienced during sincere and close meetings within my ongoing visit.
Recalling briefly the history of our relations we can single out significant landmarks from various periods. In the sixteenth century military developments in the Baltic Sea region led Southern Estonia under the Polish rule. During the reign of King Stefan Batory of Poland a Jesuit College, which also engaged the Estonian language, was established in Tartu. As recognition of remote history our university town Tartu has still a white-red city flag.
Later both Poland and Estonia ended up within the Russian empire. In the nineteenth-twentieth centuries several generations of Poles who later played a significant role in the Polish society studied at the University of Tartu. Thus, a firm foundation and intellectual bond had been set for the interaction of two independent states in the 1920s and 1930s.
Defending its independence in 1918-1920 Estonia also secured the safety of Poland from the north. Repelling strikes from the east, Poland ensured Estonia's security from the south. This is the evaluation of Estonian-Polish relations during a period so significant for both countries as given by Jüri Uluouts, an outstanding Estonian researcher and statesman before World War II. Friendly Estonian and Polish military units met and "shook hands" near Jekabpils on 4 June 1919.
The geopolitical position of our countries between two super powers - the Soviet Union and Germany - had an impact on the Estonian-Polish relations between two World Wars. Such a position set prerequisites for co-operation based on concurrent interests. Unfortunately neither large Poland nor small Estonia could solve their security concerns. In the early 1920s there were attempts to promote co-operation between five countries, involving Poland, Lithuania, Latvia, Estonia and Finland. Unfortunately these attempts failed as well and by the time of secret agreements in 1939 all the above countries were alone. Estonia gained valuable experience to do its utmost to co-operate closely with Poland. If Poland is safe and doing well, it will have a major importance for all three Baltic countries.
Economic, cultural and military co-operation of Estonia and Poland between two World Wars was highly fruitful and friendly. I am afraid that today neither Estonia in Poland nor Poland in Estonia has achieved the position they had at that time.
Living under the Soviet power many people in Estonia gained support in their dreams and ideas from the capability of Poland to maintain its identity even in the toughest circumstances. Repeated attempts of Poland to break loose of the Soviet Union, attempts to run its own life as much as possible were rays of hope for Estonia. Sometimes fresh ideas were drawn from Polish research work and culture.
Estonia's Declaration of Sovereignty passed at the end of the 1980s was one of the first steps ravelling both the Soviet Union and the foundation of the communist system in Europe that led to its collapse. Estonia used its historic chance and restored its independence on 20 August 1991.
Poland, having been among the first to recognise Estonia's independence on 31 December 1920, was also among the first to recognise the restored independence, as early as on 26 August 1991. Diplomatic relations between two countries were restored in September 1991. During ten years we have set a firm contractual base for our relations.
Ladies and Gentlemen!
During the last ten years both Estonia and Poland have had to take difficult decisions and complicated choices upon transition to market economy. After the restoration of independence Estonia's economic policy principles have been open economy, fixed exchange rate of the kroon and balanced budget. Radical reforms have established favourable environment to develop private entrepreneurship and market economy, strengthened Estonia's competitiveness in the external market. The choice has been efficient as confirmed by an average annual economic growth of five per cent. High investment level, especially that of foreign direct investments, and low national debt load characterise Estonia.
Just like Poland, also Estonia is known as a country of bold radical reforms. Both of us have now reached a phase, which allows us to talk about successful nearing to the end of the transition period. This was substantiated in the World Bank analysis released earlier this year. The report underlines that in such successful reform countries like us the tasks to complete the transition phase overlap with EU accession preparations.
The radical reform policy option has had its negative side as well, which we both know very well. Changes in the economic structure have brought along unemployment and deepening social stratification. Regional development is increasingly unequal. Many people in Estonia do not realise as yet that their life has improved during the last decade. These features indicate lack of balance in the development of our society.
Under the circumstances Estonia has tried to alleviate the situation with aggressive and targeted social policy. It has been possible to find broad-based societal support to solutions of complicated issues such like reorganisation of Estonia's pension system. Unfortunately we have not been able to adequately improve vocational education and adult education, therefore we have apart from high unemployment rate also a large number of job opportunities available. It is impossible to recruit people with required skills for these jobs.
Having reached the end of the transition period, we should reach a broad societal agreement on Estonia's further development. We need balanced, sustainable development. Similar to Poland, Estonia would also like to move forward at a speed to be able to catch up with the current EU Member States.
For progress Estonia requires wider and more diversified international co-operation. Step by step the EU candidate countries and Poland as the largest thereof are acquiring a new role for us. Already today a number of major international companies take Poland and the Baltic states as a single region outlining their production capacities and marketing structures. Estonian citizens realise this doing daily shopping and seeing products of several well-known international companies labelled "made in Poland".
Unfortunately companies based on the national capital of our states have not done anything much to operate in each other's markets. The trade of both Estonia and Poland is closely linked to the market of the European Union. Last year the EU countries were responsible for 69 per cent of Estonia's trade against CIS (Commonwealth of Independent States) countries' four per cent. We can also single out the EU candidate countries and as a most significant figure underline 80 per cent, Estonia's export to the EU current and potential Member States vis-à-vis total export. In fact both Estonia and Poland have already now closer trade links with the European Union than some "old" Member States with their counterparts within the Union.
Although Finland and Sweden have a major share in Estonia's trade, contemporaneously since 1993 trade turnover with Poland has also been continuously growing. You are our firm and stable trade partner, the first among Central-European countries whereas trade volumes are still relatively small - 1.6 per cent of Estonia's total trade volume in 2001. Further growth will accelerate with the expansion of our free trade agreement to involve also agricultural products. Estonia would like to achieve complete free trade with Poland as well with other candidate countries as fast as possible. Co-operation between different authorities of both countries has established a solid framework to expand and diversify economic ties.
At times I think that rushing to vast but highly competitive markets in Western Europe, our businessmen have neglected working with historic partners. We get an impression that the progress our states have achieved has not been fully appreciated. I hope that bilateral business delegations can bridge the gap. The high-level business delegation accompanying me is a proof of an increasing interest in Poland.
We can analyse our economic relations also from a different angle - co-operation in the Baltic Sea Region. The countries of the region accounted for over seventy per cent of Estonia's export last year. The Council of the Baltic Sea States is intensifying its efforts to make a better use of the region with such large growth potential.
Goods, services and capital flows of European significance cross Polish and Estonian territories. Considering economic development trends the share of north-south axle will increase in future as well. Estonia visualises intensified co-operation with Poland in establishing infrastructure. I am pleased to note that regular coach line and airline routes were opened between our countries in 2000.
The VIA BALTICA project launched in 1988 is very important for the entire Baltic Sea Region, influencing the industrial, tourism and business developments in a region with about 50 million people. The distance between Warsaw and Tallinn is not too long to cover in order to spend the weekend in each other's capitals, in case there is a proper road, of course. Besides the capital we have about 1500 islands and other scenic places waiting for Poles. Apart from VIA BALTICA we visualise another project - RAIL BALTICA - as the other axle of VIA BALTICA transport corridor, connecting Finland and the Baltic states with the high speed Berlin-Warsaw-Minsk-Moscow railway.
We can also see potential mutually interesting co-operation with Poland within the energy co-operation of the Baltic Sea Region. For Estonia and other Baltic states Poland is a significant link in creating the Energy Ring around the Baltic Sea. In future Estonia would like to achieve a really open gas and energy market as well as supplier competition for consumers. Estonia has been active in developing regional co-operation in information technology and telecommunication. Our country has gained international recognition with its e-government (an electronic information system of the government). Estonia is one of the few countries were the number of mobile phones is distinctly higher than that of regular phones.
Ladies and gentlemen!
The security in our region will be extremely significant for the future of Estonia and Poland. Estonia has been consistent in its wish and readiness to join NATO. It has been the key priority of our national security. The latest opinion poll held at the end of February displayed a high 68-per-cent support to the accession to NATO. It is a pleasure that repeated surveys show public readiness to defend the country and that seventy per cent of the people support keeping the defence budget at two per cent of the gross domestic product.
We rejoiced with you when Poland became a full NATO member in 1999. Although Estonia remained in the waiting room, the invitation issued to new aspirants proved our right choice. Based on common values and its own and allies' interests Poland has been a consistent supporter of NATO's open doors policy. This position has been significant in shaping the Alliance's position. It was in Warsaw last year that the US President held a historic speech on the future of Europe and the role of NATO enlargement therein. Once again the important role of Poland in the development of transatlantic links was reconfirmed.
As a separate issue I would like to recognise Poland for its persistent and pronounced public support in our aspirations to become a NATO member. Estonia values highly the experience Poland has gained as a new member in near past. This experience facilitates our thorough preparations for future membership. Estonia's objective in joining NATO is not only to consume security but also to offer equal partnership in securing international security and defending democracy. Our evolving defence forces make this possible. Estonia and Poland have together participated and participate today in several peacekeeping operations. Participating in peacekeeping missions Estonia contributes to collective security already before becoming a consumer of security. This should be convincing enough that we are not going to live at other's expense in the Alliance.
Last summer NATO assured that enlargement will be firmly on the agenda at the Prague summit at the end of this year. I am really pleased that the serious preparation the Baltic states have undertaken has also been recognised recently. Estonia, Lithuania and Latvia are mentioned as strong candidates to get invitations in fall. It does not mean that we could be looking towards a defined finish line, the crossing of which would bring relaxation. Before and after Prague Estonia is going to continue intensive strengthening of its defence capacity and creating prerequisites for joint operations within NATO. First and foremost we do it for our own benefit.
The accession of the Baltic states to NATO would reduce vagueness in security in the Baltic Sea Region. This is not only in our but also in the interest of Poland and other countries in the region. We have followed with great interest the rise of Polish-Russian relations to a new quality level after your country became a NATO member. No doubt, our good friends in Finland and Sweden who have always emphasised their support to our security policy choices will be pleased when we achieve our security aspirations.
Ladies and Gentlemen!
Poland and Estonia together with other candidate countries have reached a decisive but also a most difficult phase in the accession negotiations with the European Union. This week Estonia will hold another negotiation round with the European Union. We hope to start closing several chapters. Definitely closing a chapter is significant although we would rather count problems still unsolved. In some chapters there are more of them, in others less.
The European Union has confirmed its intent to complete negotiations with more successful candidate countries within this year, which means strenuous efforts and responsible decisions on both sides. Estonia as well as Poland has its own essential fields to negotiate about and we are both working hard. I would not spend more of our time here to analyse Estonia's problems by chapters. I would rather single out regular meetings 5+1 of the Luxembourg Group in which Estonia and Poland participate. Joint analysis and exchange of experience has been beneficial.
Estonian citizens' support to the EU accession has recovered and reached 59 per cent at the end of February. Thus, before the decisive round of negotiations we have the public will in Estonia to bind our further development with the European Union.
The EU enlargement process has reached a stage in which the candidate countries should be even more involved in the daily activities and shaping of the future. At the recent Barcelona Summit the candidate countries were involved in the discussions on the Lisbon process focusing on enhancing the EU competitiveness. The candidate countries have undergone radical reforms and got used to changes; therefore their participation could speed up the entire process. Estonia with its open economy, attaching importance to future-oriented disciplines like information technology, biotechnology and new materials is extremely interested in the rapid performance of the Lisbon process.
The European Convention has started its work with the candidate countries participating. In Estonia several of the issues handled at the Convention are still under discussion, therefore I would not indulge in details either. Anyway I would like to reiterate that for us citizens' relations with the European Union would be important, the question is how to bring the European Union closer to its citizens. We take it for granted that there should not be any difference in rights of the old and new Member States. We are interested in an efficient decision-taking mechanism and balance between different levels.
Estonia is pleased with the progress of Poland as well as our closest neighbours Latvia and Lithuania on the EU direction. Considering the future of the Baltic Sea Region we can assume that upon favourable developments quite soon all the countries along the coast of the Baltic Sea will be Member States. This means that the Baltic Sea Region issues will rise more broadly into the agenda within the European Union. In several fields the Member States have delegated their powers to Community institutions. Thus, the European Commission will be playing a highly significant role in a number of Baltic Sea Region issues. Definitely the EU Baltic Sea Region policy will become clearer during the Danish Presidency in the second half of the year.
Thus, for example, the activity scheme for the Northern Dimension should be developed further. Relations between the European Union and Russia will acquire a new angle. Today four out of nine Baltic Sea States belong to the European Union whereas soon there could be eight. Russia can feel itself safe from the west, having friendly and co-operation-oriented neighbours operating within well forecastable and common strategy. The rapidly developing Baltic Sea Region will be significant for Russian economy.
Ladies and Gentlemen!
Today Estonia and Poland can look forward to their future full of hope. This has neither happened by chance nor is a gift of the gods. Both Poland and Estonia have had to work hard.
The flags of our countries share a common colour - white - the colour of freedom and hope. Our co-operation should defend the freedom of our peoples and secure our hope for vitality and development in future as well!
Thank you for your attention!
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