Estonia in the European Union

31.03.2008

Estonia has been a member of the European Union (EU) for over three years now, which has allowed us to better establish our goals within the EU and to define our role as a member state. Estonia has demonstrated that it is an active and constructive member state and engages pragmatic policies in order to further integrate into the EU. It is in Estonia's best interests to have a European Union that is economically competitive and internationally influential, but also effective and operative within itself. Following its accession to the EU, Estonia has accomplished much in both the economic and political realms. This is reflected in the public opinion poll released in December 2007, in which 84% of voting-age Estonians support Estonia's EU membership; this makes us one of the most EU-supporting member states.

Estonia's EU policy guidelines are described in the Estonian government's European Union Policy for 2007-2010. The purpose of this document is to specify the issues that are most important to Estonia, while still keeping in mind the broader interests and developments in the EU. The following is a selection of themes that are significant to Estonia and will take center stage in EU policies in the near future.

European Union Reform Treaty

In order to carry out the goals of the EU and increase the organization's effectiveness and transparency, it is necessary to have a well-functioning institutional framework. For this reason, amending the basic documents of the EU-the Treaty on the EU and the Treaty establishing the European Community-in a timely manner is crucial for the sake of further development.

In June's European Council meeting, European heads of state decided to call an Intergovernmental Conference (IGC) with the goal of compiling a Reform Treaty, following the specifications set by the Council. Diligent work at the conference allowed the heads of state to approve the reforms already in October of 2007, which leaves ample time to ratify and enforce the Treaty before the European Parliament elections in 2009. Both Estonia and the entire EU considered it essential that the Reform Treaty preserves the innovations agreed upon by the IGC in 2004.

Enlargement

Estonia considers enlargement to be one of the EU's most successful policies. Enlargement has considerably increased peace, stability and wealth in Europe, and we believe that these will increase more with a continuation of the enlargement process. Estonia's own accession and integration into the EU in 2004 serves as an example of this success. Estonia finds that member states should avoid negative rhetoric connected with enlargement and do everything to ensure that the positive facets of the last enlargement are reflected equitably.

Estonia consistently supports the further enlargement of the European Union and finds that the EU has to stick to its earlier decisions regarding enlargement, as well as to the promises of potential future development made to the countries of the western Balkans in the Thessaloniki agenda in 2003. We speak from experience when we say that potential for future development alongside the EU is a good incentive for the implementation of political and economic reforms.

Criteria for joining the EU (Copenhagen criteria) are clearly laid out, and each acceding nation is required to fulfill them. Estonia supports  the continuation of the EU's enlargement process, but believes that each aspiring nation should be assessed according to its own national progress in fulfilling the criteria. Estonia, as a recent addition to the EU, is prepared to share its experiences with other aspiring nations.

European energy policy

The European Union's crude energy sources are scarce, and dependence on imported petroleum and gas is rapidly increasing. This year, member states will produce only 18% of the EU's total petroleum expenditure, 37% of its natural gas usage and 54% of its coal. It is predicted that the EU's dependence on imported energy sources will increase from the current percentage, about 40, to about two-thirds by the year 2030. For this reason, it is important to focus on ensuring the security of our crude energy supplies. Member states need to invest more in energy conservation, renewable energy resources, and reducing the affects of climate change.

The theme of energy has been prominent in the EU ever since the Russia-Ukraine gas conflict that occurred early in 2006. In March of 2006, the European Commission published a Green Paper. Later in March, the European Council agreed to begin developing an Energy Policy for Europe, and in June the Council approved a document on external energy ("An external policy to serve Europe's energy interests") compiled by the Commission and the High Representative for the Common Foreign and Security Policy, Javier Solana. The year 2007 also began with a lot of activity - in January, the Commission published an "energy packet" that consists of a strategical overview of the energy situation, along with many source documents.

In March 2007, the European Council approved an action plan, which prescribes the following objectives for all EU nations:

• Increase renewable energy use in the EU to 20% of total energy use by the year 2020 (mandatory goal)   
• Increase biofuel use to 20% of total energy use by the year 2020 (mandatory goal)
• Achieve a 20% conservation of energy by the year 2020 (according to current estimates of energy usage)  
• Reduce greenhouse gas emissions by 30% by the year 2020, given that other industrialized nations endeavor to do the same.
• Fulfill a unilateral obligation to reduce EU greenhouse gas emissions by 20% by the year 2020 regardless of what other nations endeavor to do. 

From the beginning, Estonia has supported the EU in developing its energy policy. The general goals set forth in March pose a challenge for us, but they are attainable; at the same time, there is a possibility that the Commission's proposals for Estonia's national goals could be even more ambitious. We find that in addition to ambitious progress within our organization, the EU should also flesh out a coherent foreign energy policy, which failed to occur at the aforementioned Council meeting. A thorough analysis needs to be done of member states' dependence on third country energy sources and of a solidarity plan for how to cope with outside pressure on our energy supplies; third-party countries should be addressed as a whole. Estonia hopes that the session held in May for the Network of Energy Security Correspondents (NESCO, which is comprised of two representatives from each member nation, two from the Commission, and two from the Secretariat of the Council) will shed more light on these issues.

Climate change

Since the 1990s, the European Union has been a global leader in the fight against global warming. As a member state, Estonia actively participates in shaping the EU's climate change policies. Estonia joined the Kyoto Protocol in 1998, agreeing to reduce greenhouse gases by 8% compared to 1990 emissions between the years 2008-2012. Today the Protocol has been ratified in 132 nations. The EU is actively working on a new global framework agreement, which will integrate climate and energy policies. The EU's internal environmental goals and policies until the year 2020 were firmly established at the spring European Council meeting. With this, we are setting a good example for other industrialized nations, and we strive to involve developing nations in the battle against climate change as well. Estonia agrees with all the stipulated objectives.

Accession to Schengen

Acceding to the border control-free Schengen visa area and allowing complete free movement of Estonian citizens within the EU has been one of our most important goals. On 8-9 November 2007, the Justice and Home Affairs (JHA) Council accepted the conclusion that, based on evaluations, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, and Malta are prepared to accede to the Schengen area. The decision was approved by the European Parliament on 15 November 2007, and the final formal decision was made at the JHA Council on 6-7 December 2007.

The elimination of border controls at internal land and sea borders occurred at midnight between the 20 and 21 of December. Elimination of airport border controls became effective on 30 March 2008.

Nine of the 10 countries that became EU member states in 2004 have acceded to Schengen (Cyprus is the only exception). As of 21 December 2007, the Schengen area is composed of 24 nations and largely overlaps with European Union territory. Although Great Britain, Ireland, Cyprus, Bulgaria and Romania are EU member states, they have not signed the Schengen Agreement. Also, Norway and Iceland are not EU member states, but they are part of the Schengen area.

Financial perspective

2007 marked the beginning of a new 7-year budgetary period for the EU, for which the member states agreed on a long-awaited general framework in December 2005. The European Parliment approved of the budgetary framework in June 2006, and it was an infinitely important step for the EU. First of all, it would have been much more difficult to finance EU policies in the absence of a budgetary agreement. Second, the agreement proved that the enlarged EU can still function as it did before, and that it is possible for 25 nations to reach a compromise on such a complicated matter.

Negotiations were complex, but Estonia is content with the results. During the budgetary period, Estonia will get over 70 billion kroons from the EU budget (2004 standing price; estimated nominally 75 billion kroons), of which close to 52 billion will go to regional aid, about 9,5 billion to rural life, and about 8 billion to support agriculture. Estonia will contribute about 14 billion kroon to the EU budget over 7 years.

The budgetary agreement helps the EU develop and update policies, which otherwise would have been much more complicated. For example, the EU's competitive position in the world may have been compromised, and it also would have been more difficult for the new member states to achieve the the older member states' standard of living.

Lifting the budgetary ceiling to 1,047% of the EU's national economy's gross income, reducing England's reimbursement by 10,5 billion euros, and increasing cohesion plans for new states means that opportunities for development are increased for the less wealthy member states, and that the Union's economic equality is generally increased.

It is also true that for the next financial perspective, which begins in 2014, the EU should reach an agreement on even more thorough and complicated budgetary reforms. These would focus on all critical analyses of prior EU policies, including agricultural and cohesion policy reforms, and reforms of the EU's internal funds. For this reason, it has been decided to begin budgetary discussions earlier than usual, so budgetary questions will come under discussion once again in 2008/2009.

The Lisbon Strategy

In the spring of 2005, the European Council agreed on an updated Lisbon Strategy, which focuses on economic growth and employment rate strategies. Each member nation compiled a National Reform Programme (NRP) that outlines plans for national economic growth and improved employment rates.

To fulfill the objectives of the Lisbon Strategy at a national level, Estonia created the Action Plan for Growth and Jobs for 2005-2007. The two main goals of the Action Plan are to develop human resources and to promote research and developmental activities. The drafting of the plan contributed to a rise in discussions on economic and employment issues in Estonia. Estonia will begin work on a new Action Plan for Growth and Jobs for 2008-2010 in the fall of this year, immediately after the European Commission's annual qualifying evaluation of the success of implementation of current plans. The creation of a new Action Plan will involve not just the ministries, but also experts, members of parliament, and other co-operating partners.

In general, the European Commission rates implementation of strategies for economic growth and creation of jobs as satisfactory, though they are currently more optimistic than they have been in years past. They highlight improvements in research and developmental activity, and sometimes also the enterpreneurial environment. Employment rate, energetics and climate change, along with the competitiveness of enterpreneurial endeavors, are the most emphasized of the activities of member states. According to the European Commission's assessment, Estonia's endeavors have produced very good results. Estonia is one of six member states (and the only new member state) to get such a positive evaluation that the commission did not feel the need to issue any official recommendations for amending policies or improving implementation of plans.

Free movement of labor

The free movement of labor is one of the EU's four main freedoms and Estonia finds that it should be equally extended to the inhabitants of all member states. Working in a foreign country increases skills and experiences and represents a win-win situation for both the employee and the employer and their respective nations.

In 2006, all EU countries restricting the movement of labor from new member states had to decide whether to abolish their set restrictions or extend them for the following three years.

On 1 May, 2004, England, Ireland and Sweden opened their labor markets to workers from new member states. At present, Finland, Spain, Portugal, Greece, Italy and Holland have done so as well. In addition, France, Belgium, Luxembourg and Denmark have opened their labor markets in many sectors or simplified the process for acquiring a work permit.

European Neighbourhood Policy

The European Neighbourhood Policy is one of the EU's most vital policies, which can influence the development of the EU's new neighbour states in areas such as political and economic reform, institutional development, drafting of new legislation, etc.

In order to encourage reform endeavors in its neighbouring nations, the EU must send a clear message as to the vital importance of fulfilling reform and neighbour policy goals and co-operation perspectives, and also offer them more clear and abundant opportunities to succeed. It is Estonia's objective that the EU will reach a consensus regarding attitudes toward aspiring member states, and that the Neighbourhood Policy will gain strength. In development talks for the European Neighbourhood Policy, Estonia has emphasized the need for progress in the areas of economic and trade co-operation, simplification of visa processes, working through frozen conflicts, and more frequent co-operation regarding energy. A critical facet of the EU's Neighbourhood Policy is the degree of the EU's willingness to furnish the philosophy of its four main freedoms to its neighbouring nations. A sectoral approach would be a good method for disclosing these main freedoms to our partners. Neighbouring states should have clarity and perspective regarding what will occur once they reach a certain goal or milestone (for example, if they fulfill specifications set forth by the European Neigbourhood Policy). Estonia also believes that the most important factor of all is the commitment shown by the neighbouring state.

Estonia emphasizes the importance of approaching each nation individually. A nation's relations with the EU must be based on the accomplishments made on a national level and their capabilities, and not on the nation's geographic location or historical affiliations. Funding of neighbouring states should become increasingly progress-based, with more successful nations getting the opportunity to progress more quickly (for example, intensified contractual talks, by way of a sectoral approach).

Although we have more contacts and experiences with our neighbors to the east, we believe the EU's co-operation with neighbors to the south is equally important.

The European Union and Russia

The EU's strategic alliance with Russia is based on the assumption of shared European values. We think it is vital that the EU's policies toward Russia are solid and unified, and that all member states demonstrate solidarity. In addition to matters of economic co-operation (including observing market economy principles), attention must also be given to developing a state based on the rule of law, democracy, and human rights (such as for ethnic minority populations) in Russia, and to securing the EU's outer boundaries and subsequent immigration and refugee policies. Estonia monitors EU-Russia co-operation in every area, and contributes greatly to developing EU positions on everything from economic co-operation to environmental and human rights issues.

We support creating a new framework agreement that would replace the alliance and co-operation contract in effect until 30 November, 2007. The new agreement must clearly define mutual rights and responsibilities in order to minimize the chance of different interpretations of the text. This will support EU-Russian co-operation that is bilaterally effective, in which the EU is presented strongly and uniformly. Estonia feels it crucial that the new framework agreement contains strong allusions to the four „common spaces” package signed in 2005.

In the first common space, common economic space, Estonia feels it is crucial to have transparent and law-abiding co-operation regarding energy (meaning no risks from nuclear energy), which requires Russia's accession to the WTO and cross-border co-operation. In the common space of freedom, security and justice, the EU-Russia visa simplification and readmission agreements need to be thoroughly developed, along with the related simplification of the registration process for foreigners in Russia. In visa-related dialogue with Russia, we see visa-free travel in Russia in a long-term perspective. It is also in Estonia's best interests to continue constructive consultations between the EU and Russia regarding human rights, and to track the progress of democracy in Russia. In the third space, that of external security, Estonia thinks it is important to resolve frozen conflicts in the general neighbourhood and to have co-operation and dialogue in other international security questions. Fourth, in the space of education and science, we want to extend and intensify co-operation in the fields of education, science and culture (including co-operation with Finno-Ugric peoples and restoration of cultural assets).

Within the framework of the Baltic Sea Region Programme, Estonia supports the development of partnerships in environmental and social projects, as well as the possibility of partnerships in transportation and culture.

Public opinion

It is important to rebuild confidence in the European project among the EU's citizens. We have to demonstrate to our citizens that the enlarged EU is still cooperative, as well as able to co-operate.

According to the Eurobarometer poll conducted in the autumn of 2006, the Estonian population has a generally positive attitude towards an open market economy and globalization-they see more positive aspects than minuses in these processes.

About 75% of Estonian inhabitats believe that the EU plays a positive role in the world in terms of environmental protection and economic growth, and also in the area of ensuring peace and security. 70% of those polled acknowledge the EU's crucial role in the war on terrorism, and 62% said the same about the fight against poverty in the world.

Polls carried out regularly in Estonia by TNS Emori have shown that support for the EU among Estonian citizens has within the past two years remained consistently high, between 70-85%.

Estonians in European institutions

European Commission

On 1 May 2004, Commissioner Mr Siim Kallas nominated from Estonia started work in the European Commission, continuing work in the new Commission that took office on 22 November 2004 with his area of work including administrative affairs, audit and anti-fraud. Concurrently, Siim Kallas is one of the five vice presidents of the European Commission. The head of Siim Kallas' cabinet is Mr Henrik Hololei.

Ms Maive Rute works as Director of the Directorate for Promotion of SMEs' Competitiveness at the Enterprise Directorate General and Ms Signe Ratso works as Director of the Directorate for WTO Affairs, OECD and Food-Related Sectors and Principal Advisor of Trade Directorate General of the European Commission.

Dr Riina Kionka was appointed the Personal Representative for Human Rights (CFSP) of the SG/HR Javier Solana in January 2007.

European Parliament

The European Parliament elections, which took place on 13 June, 2004, were a new and significant experience for the Estonians. The European Parliament under a number of the EU's agreements has a continuously growing influence on the EU decision making process and in the light of the Treaty establishing a Constitution for Europe its competence is about to grow even more, thus the decisions made by the citizens at the elections were of great importance.

Estonia has 6 representatives in the European Parliament: Mrs Katrin Saks, Mrs Marianne Mikko and Mr Andres Tarand of the Estonian Social Democratic Party (Socialist Group); Mrs Siiri Oviir of the Centre Party (Alliance of Liberals and Democrats for Europe); Mr Toomas Savi of the Reform Party (Alliance of Liberals and Democrats for Europe) and Mr Tunne Kelam of the Pro Patria Union (European People's Party).

The work of the Parliament is performed in various committees. Currently, there are 20 permanent committees in the European Parliament. Among Estonian envoys, Mrs Marianne Mikko is a Member of the Committee on Culture and Education, as well as of the Committee on Fisheries, Mrs Katrin Saks belongs to the Foreign Affairs Committee, Mr Andres Tarand to the Committee on Industry, Research and Energy, Mrs Siiri Oviir to the Committee on Women's Rights and Gender Equality, as well as to the Committee on Employment and Social Affairs, Mr Toomas Savi to the Committee on Development and Mr Tunne Kelam to the Committee on Regional Development.

Other institutions

From Estonia, Mr Uno Lõhmus has been nominated as a judge to the European Court of Justice from 1 May 2004 to 6 October 2009, and Mrs Küllike Jürimäe has been named a judge to the Court of First Instance until 2010.

The representatives of different fields of Estonian economic and social life are members of the European Economic and Social Committee and Estonian local governments participate in the work of the Committee of the Regions. Estonia has 7 members in both committees; the composition of the committees is being renewed every four years.

The Estonian representative in the Court of Auditors is Kersti Kaljulaid whose mandate lasts till 2010.

More information:

Estonian Permanent Representation to the EU

Estonia's European Union Policy 2007-2011