Estonia in the European Union

15.12.2008

Since the spring of 2004, when Estonia became a member of the European Union, Estonia has demonstrated that it is an active and constructive partner and continues with these pragmatic policies in its further integration into the EU. European Union membership is an invaluable factor in raising Estonia's political and economic profile, so a strong and well-functioning EU that is politically influential and competetitive on the world stage is in our best interest. This goal is reflected in the Estonian government's European Union Policy for 2007-2011, which keeps in mind the broader interests and developments in the EU and presents Estonia's proposals for coming to terms with the challenges standing before the European Union.

The following gives a brief overview of Estonia's positions, as well as issues in the European Union that Estonia will be focused on in the near future.

Treaty of Lisbon

The renewing of the fundamental document of the European Union came about primarily from the need to ensure effective functioning in the Union and to update the Union's goals in a rapidly changing world.

After a long so-called reflection period, the heads of government signed the Reform Treaty on 13 December 2007 at the European Council in Lisbon. If the Treaty had gone through a ratification process free of obstacles, it would have come into effect on 1 January 2009. After the rejection of the Treaty following a referendum in Ireland on 12 June 2008, the date when the Treaty comes into effect has unfortunately been postponed.

Estonia supports moving forward with the Treaty of Lisbon. The Riigikogu ratified the Treaty of Lisbon on 11 June 2008, and we hope that all the other member states will follow suit before long. The Treaty will make the European Union more democratic, improving relations between the EU and its citizens by offering the possibility of motions made by citizens as well as more rights for national parliaments to join in on discussions. The decision-making process will become more efficient and transparent. The Treaty of Lisbon also has notable significance in terms of shaping the European Union's role in the world and guarantees a strong Europe, which is a requirement for meeting the challenges of a globalising world. On the world scale, we are a partner to be considered only if we are a unified union, not a group of member states with different interests.

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. If nations with an EU perspective stay on course with their reforms, both the nation wishing to join and the European Union itself will win. Enlargement will improve the European Union's competitiveness and security, as well as increase the EU's role in the globalising world. When it carried out its internal institutional reforms, the EU also reinforced the acceptance of new member states. Naturally the nations wishing to join must fulfil all the prescribed criteria. However, the European Union should not turn back from the accession promises it has already made.

Estonia sees the EU's enlargement policy as an opportunity for nations who want to share the same values with us-values based on democracy and a free-market economy, innovative views, a society that looks to the future. We gladly share the reform experiences we gained when joining the EU with any nations that are interested. We would like for stability and peace to extend beyond the current 27 member states.   

For enlargement, we must all continue to encourage possible future member states and avoid taking steps that discourage them. We are interested in long-term stability in the Balkans, and as an EU member state we would like to do everything possible to achieve this. Keeping Turkey on the reform path is one of Estonia's priorities. We also feel it is essential to explain the benefits of enlargement to the public more clearly than before.

The Strategy for the Baltic Sea Region and the Northern Dimension

One of the most important initiatives of the European Parliament is the development of the Baltic Sea Region Strategy. In the conclusions of the December 2007 Council, the EU member states called on the European Commission to present a Baltic Sea Region Strategy no later than June 2009.

Estonia would like to actively participate in the formulating of a strategy. We support the idea of a flexible and ambitious strategy, keeping in mind the importance of spacial integration and overcoming regional differences. The most important issue for the region is the condition of the Baltic Sea environment, and research and development activity will certainly benefit from a regional approach.  

The external aspects of the EU's internal Baltic Sea Strategy are covered in the project-based Northern Dimension, which has been active since 1999. Its members are the European Union, Russia, Norway, and Iceland as equal partners. We are active in the Northern Dimension's social partnership and act as observers in environmental partnership.

In March 2007, the European Council approved an energy action plan for the years 2007-2009, which prescribed the following concrete energy and climate policy objectives for the EU member states: 

• Increase renewable energy use in the EU to 20% of total energy use by the year 2020
  Increase biofuel use to 20% of total energy use by the year 2020
• 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 industrialised nations endeavour to do the same
• Fulfil a unilateral obligation to reduce EU greenhouse gas emissions by 20% by the year 2020 regardless of what other nations endeavour to do.  

As a continuation of the action plan, in September of the same year a packet of concrete goals was published regarding the EU's internal market, and in January 2008 concrete goals were established in climate and energy matters. Agreements were reached on both of those matters during France's presidency in the second half of 2008.

In the fall of 2008, the European Commission published their Second Strategic Energy Review, which focused on energy security and the external dimensions of the EU's energy policy. Along with the review, the Commission also worked out an extensive energy packet, which has at its centre energy security and the energy effectiveness that is extremely important for achieving security. One of Estonia's key issues is also addressed in the packet - specifically, the creation of an urgently needed infrastructure, which includes in its list of priorities the Baltic Interconnection Plan. Energy security will also be one of the primary topics of the European Council in the spring of 2009.

From the beginning, Estonia has supported a common EU energy policy. Estonia supports the development of a common EU internal energy market and moving towards a more sustainable economy through EU-regulated climate goals. The EU's climate and energy policy goals pose a challenge for us, but they are attainable. We find that similarly ambitious progress should be made internally by the EU on a coherent foreign energy policy based on the European Commission's recent proposals. We also believe that the EU should seriously and practically address the issue of energy security in member states as well as the union as a whole. 

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 emphasised the need for progress in the areas of economic and trade co-operation, visa facilitation, 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 thinks it is essential to develop an active communication format with the ENP's eastern countries. By developing the Eastern Dimension, the EU is confirming that it will address and intensify relations will all eastern countries of the ENP. It will act as a format for sharing experiences and will ensure the transparency of EU policy concerning all eastern nations.

The Eastern Dimension must be flexible enough to allow an individual approach to partner nations, permitting the EU to move more quickly with the nations that are prepared for it. The relations of the partner state with the EU should depend on the partner state's homework and capabilities, not its locations and historical affiliations. It is very important to progress quickly will the more successful nations. The financing of partner states should become more and more achievement-based, and the more successful target nations must be given the chance to advance more quickly (for example, through intensified agreement bases or sectorial agreements).

The Eastern Dimension also gives us a better opportunity to intensify contacts with Central Asian countries, the so-called neighbours of our neighbours, and it is essential from an energy security standpoint.

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

Russia's hostility towards Georgia in August of 2008 and its occupation of Georgian territory, in addition to its recognition of the independence of the separatist regions, have dramatically changed the security situation in Europe. Estonia still considers a unified European Union Russia policy to be very important, but we must seriously evaluate our long-term perspective for relations with Russia. Russia's aggression in Georgia is indicative of Russia's aggressive foreign policy, and therefore the European Union needs to consider both our own rhetoric as well as co-operation with Russia. Estonia is in favour of a profound analysis of EU-Russia relations. First and foremost, we must think about whether the EU and Russia still share common values.

Estonia believes that all co-operation projects should be re-negotiated, depending on whether the peace plan of 12 August is fulfilled by Russia.

At the same time, it is important for Estonia that practical co-operation with Russia continues, especially cross-border co-operation and projects related to environmental protection. Contacts between regular citizens are important as well.

Within the context of the European Union, the same issues are still important to Estonia, namely energy, environment, investments and their protection, co-operation in the shared neighbourhood, cross-border co-operation, justice system co-operation, and immigration.

Co-operation in the shared neighbourhood has an even greater significance in this new situation-from Estonia's standpoint, the European Union should give a stronger message of support to countries in the neighbourhood. Those countries that are interested must be able to comprehensively integrate their systems with those of the European Union.     

Immigration

Immigration has become an essential item on the EU agenda over the past few years, mainly because of the problems associated with illegal immigration and because of the increasing labour shortage in Europe, which calls for the facilitation of the legal immigration process. The further development of an all-inclusive European immigration policy is one of the highest priorities among today's internal European Union questions. France has placed an emphasis on this topic during their EU presidency in the second half of 2008. France's wish was to further harmonise the EU's immigration and refugee policies. At the October Council a European Pact on Immigration and Asylum was approved, which establishes principles and bases for the further shaping of the EU's immigration policy. The pact will also provide input for the new multi-year work programme on justice and domestic issues (the so-named Post-Hague programme starting in 2010), which should be ready by Sweden's presidency.

Just as for the rest of Europe, immigration policy and its future is a very important and sensitive subject for Estonia as well. Estonia does not have any major problems in terms of immigration since there are few illegal immigrants or refugees, but we do have individuals without citizenship. We consider the topic very important within the framework of the EU, but we would prefer a restricted EU immigration policy, meaning one that refrains from wide-spread harmonisation. In other words, we believe that the decision regarding (legal) immigration should be left to each individual member state. The European immigration pact generally conforms to Estonia's principles regarding immigration policy, as it allows sufficient flexibility for the member states to regulate their own immigration.

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.

Negotiations were complex, but Estonia is content with the results. During the budgetary period, Estonia will get over 4.5 billion euros from the EU budget (2004 standing price; estimated nominally 4.8 billion euros), of which close to 3.3 billion will go to regional aid, about 0.6 billion to rural life, and about 0.5 billion to support agriculture. Estonia will contribute about 0.9 billion euros to the EU budget over 7 years. In terms of structural funds, achieving eligibility for the VAT tax for municipal governments was an important success.

The budgetary agreement helps the EU develop and update policies, which help to resolve the new challenges presented in the EU: increasing the EU's competitiveness in the world, decreasing the gap in living standards between old and new member states, etc. Lifting the budgetary ceiling to 1,047% of the EU's national economy's gross income, reducing  reimbursements 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.

Since many countries were not satisfied with the results of the negotiations in December 2005, it was agreed to do a revision of the budget, which includes both EU expenses (including common agricultural policy) and income (including Britain's reimbursements). The European Commission received the assignment of carrying out a thorough and comprehensive analysis of the EU policies and budget and to report the results to the Council in 2008-2009. Consultations on the analysis of each member state's budget ended in June 2008, and an overview of the results of the consultations will be given by the European Commission at the end of 2008.

Estonia continues to prioritise the simplicity and clarity of the budget and the productive use of resources. We feel that the Union's budget should only be used to finance those activities that clearly benefit from financing on the EU level. The budget should harmonise with the EU's political priorities. The activities to be supported above all are the Lisbon Process and the improvement of the EU's competitiveness in the world. We feel that financing of research and development, innovation, and education are essential. The Union's future budget should certainly consider the new challenges standing before the EU-globalisation, climate change, energy security, and demographic situations. We also consider spending for the EU's common foreign and security policy important. We feel that a solidarity policy should focus first and foremost on less wealthy regions. However, in agriculture we believe that instead of direct support, the focus should be on developing rural life in general.

Public opinion

According to the Eurobarometer poll conducted in the autumn of 2007, the Estonian population generally has great faith in the European Union - 80% of those polled felt that belonging to the EU is beneficial for Estonia. Perceiving the benefit from being a member of the EU has continued to increase since the autumn of 2005, when 56% of citizens perceived there to be a benefit.

The share of citizens who consider belonging to the European Union to be a good thing has decreased slightly compared to spring - from 66% to 61%, being still above the average level of previous years.

The Eurobarometer poll also showed that Estonian citizens think the EU plays a positive role in Estonia in most significant areas-defense and foreign policy, the fight against terrorism, environmental protection, and economic matters. The EU is associated negatively with tax issues and rising prices.

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

Estonians in European institutions

European Commission

On 1 May 2004, Commissioner Siim Kallas was nominated from Estonia started work in the European Commission. He continued to work in the new Commission that took office on 22 November 2004, and his area of work includes administrative affairs, auditing, and anti-fraud. Siim Kallas is also one of the five vice presidents of the European Commission.

Ms. Maive Rute works as Director of the Directorate for Promotion of SME 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 that took place on 13 June 2004 were a new and significant experience for the Estonians. The European Parliament fulfils the role of lawmaker and approver of budgets in the European Union. Based on conditions in the foundation agreements, the Parliament also functions for political control and consultation. Therefore, the choices of the citizens are considerably important. The election of new members of the European Parliament will take place in all member states from 4-7 June 2009. In Estonia, the election day will be Sunday, 7 June.

Under a number of the EU's agreements, the European Parliament has a continuously growing influence on the EU decision-making process, and in the light of the Treaty of Lisbon, 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 takes place 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 the chairman of the EU-Moldova Co-operation Commission, 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 2004-2009, 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 renewed every four years.

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

More information:

Estonian Permanent Representation to the EU
Estonian Government's European Union Policy for 2007-2011