Estonia’s priorities are in line with the general developments in the EU. Estonia’s interests are Europe’s growing political influence at the global level and the strengthening of its economic competitiveness. Estonia has defined its general EU policy principles in a strategic framework document approved by the Government in March 2004 "The Estonian Government’s European Union Policy for 2004-2006".
Pursuant to that, Estonia strives to promote the common interests of Europe through five main objectives:
Worldwide promotion of democracy and well being.
Estonia’s aim is to assist in every way in fulfilling the ambitious target of developing the EU economy into the most competitive and dynamic knowledge based economy in the world by 2010. With a new financial perspective for 2007-2013, the EU will have to create conditions for involving the new Member States in the fulfilment of the EU’s economic and political goals. The EU must also be developed as a partner with growing global significance. To guarantee the sustainable development, Estonia considers it imperative to attach equal importance to the three main pillars – economic, social and environmental spheres, while developing in a balanced and coherent way. To increase the safety of EU citizens, it is necessary to go on with the development of the common immigration and asylum policy, to render the Schengen compensation mechanisms more effective and to enhance the fight against international crime.
The Estonian Government establishes its short-term goals and reviews them after each EU presidency. The Government approved Estonia’s priorities for the Luxemburg EU Presidency on 20 January and endorsed the associated Action Plan.
Primarily, the Estonian goals focus on increasing the long-term competitiveness of the EU and on protecting its interests with regards to financing the Union. In addition, the Government has set increasing the free movement and security of Estonian citizens, and the development of EU relations with Russia, as well as with other neighbour countries as priorities.
2. The Lisbon process
2005 marks the halfway point in the Lisbon process, launched to enhance the competitiveness of the EU. A thorough analysis of the successes and omissions was carried out in the lead up to the Spring European Council. Member states should increase their commitment to achieving the Lisbon objectives – instead of adding new goals the existing ones have to be fulfilled, while focusing on the most important areas.
In the upcoming years, it is essential to focus priorities more on growth and employment. It is important to enhance productivity and the quality of work. To create new jobs, a more business friendly environment for the establishment of new enterprises must be ensured. Simplification of legislation and reducing the administrative burden on entrepreneurs must remain a priority. The knowledge and skills of employees must correspond to the needs of the economy, for which purpose it is necessary to adjust the education system to the expectations of the labour market. Besides a high quality labour force, the use of new technologies is a basis for the growth in productivity. Here the fostering of innovation, and of research and development is most important, as well as closer co-operation between research institutions and enterprises.
For a better implementation of the strategy, each Member State should draw up an Action Plan taking into consideration its needs and the structure of its economy. Estonia has its long-term national strategy document "Estonian Success 2014", concentrating on the goals of the Lisbon strategy. The development of this strategy began in 2003 under the Prime Minister’s supervision. "Estonian Success 2014" will remain an open document, which can be renewed with the passing of time.
3. Financial perspective
February 2004 marked the beginning of discussions on the next EU budget framework or the financial perspective (FP) (Agenda 2007) for 2007-2013. The Member States have agreed to reach a political agreement by the European Council convening in June this year. As one of the key issues of the Luxemburg Presidency, it is also a priority for Estonia. Estonia supports the adoption of an objective based, optimal EU financial perspective, which would take into account all aspects related to the enlargement and would save budgetary resources by eliminating ineffective expenditures. Estonia considers it feasible to reduce the commitment appropriations ceiling down to 1.1% of EU GNP, but finds that reducing the commitment appropriations to 1% of EU GNP presupposes the carrying out of radical reforms. At the same time, Estonia is open to different suggestions for reducing the budget volume proposed by the European Commission.
Estonia prefers an economical and transparent EU budget, which at the same time would create added value. Estonia considers research, innovation and education, the key areas in ensuring the competitiveness and economic growth of the country in the future. Therefore, Estonia considers it necessary to develop research and development (R&D) infrastructures and to promote co-operation between researchers.
Estonia (as well as Latvia and Lithuania) is of the opinion that the method used to calculate the structural aid ceiling of 4% of a member state’s GDP should be modified, because real economic growth is not taken into consideration. The Commission has taken 4.1% as the average annual growth rate of the new Member State economies in calculating the aid ceiling of 4% for 2007-2013. The Baltic States, unlike the other new members, are characterised by a notably higher economic growth prognosis –at least 6.75%. This “calculation” would lead to an unjust limitation of cohesion funding. Therefore, we propose an amendment to the methodology for calculating the macroeconomic projections for the period 2007-2013 by using separate average annual growth rate forecasts for the Baltic States as the countries with the highest GDP growth rates.
4. Enlargement
As of May 2004, there are 25 Member States in the European Union. The largest single enlargement in the EU's history, to the ten countries who began membership negotiations in 1997, ended with their accession in 2004.
This does not, however, signal the end of EU enlargement; accession negotiations with Bulgaria and Romania were successfully completed in 2004, and the EU has decided to begin accession negotiations with Turkey and Croatia in 2005. Macedonia has also submitted its accession application, on which the Commission is forming its opinion. Estonia has supported the new enlargements.
The European Union is an open organisation, and to improve Europe's welfare and safety the unification of Europe must continue. Future enlargement will follow the same principles that guided previous enlargements. Each candidate will be evaluated according to its own achievements. As a new Member State, Estonia knows from its own experience how important the prospect of EU accession is for the implementation of political and economic reforms. Having recently completed the integration process, we are prepared to share our experience in accession negotiations with candidate countries.
5. Accession to Schengen
As a new EU Member State, an Estonian priority is the accession to the Schengen visa area. We wish to ensure the rapid and complete, free movement of Estonian citizens within the EU.
To ensure Estonia’s technical compliance for possible accession to the Schengen visa area by 2007, a decision by the Government has launched a three-year accession programme supported by the EU with 76 million euros.
Pursuant to the European Council’s Decision of 5 November 2004, the enlargement of the Schengen visa area will start with the necessary evaluations of the Member States in the first half of 2006. Estonia expects that an evaluation schedule, specifying those spheres where evaluations can be concluded before the completion of the Schengen Information System II, will be produced by the spring of 2005.
As one of the accession prerequisites is keeping pace with the development schedule of the Visa Information System (VIS), Estonia wishes to be one of the six Member States with whom the Commission will start a thorough planning and implementation process for the VIS data communication network. Estonia wishes to make its own contribution to the development of the VIS.
6. Euro Accession
According to the Accession Treaty, Estonia must accede to the European Monetary Union (EMU) and adopt the single currency, the euro. In the case of Estonia, the earliest possible deadline for the adoption of the euro is the second half of 2006.
Estonia joined ERM2 on 28 June 2004. Accession to the EMU requires that all the new Member States join and participate in the exchange rate mechanism ERM2. ERM2 is a framework, in which the participants will tie their national currency rates to the euro and bring their economic indicators into line with the Maastricht criteria. The most important being that the annual state budget deficit must not exceed 3% and a state’s debt burden must not exceed 60% of the state’s annual GDP.
A consistently balanced budgetary policy since independence and a small state loan burden enable Estonia to fulfil these formal requirements. Also, within recent years interest rates have decreased and inflation has subsided.
Estonia’s goal is a smooth accession to the euro area, since it will support our competitiveness, economic growth, as well as employment through which the living standard will improve rapidly.
7. Ratification of the Treaty establishing a Constitution for Europe
Pursuant to the Constitution of the Republic of Estonia international treaties cannot be ratified by referendum. Thus, the Treaty establishing a Constitution for Europe cannot be put to a referendum, as will take place in many other EU Member States. According to the Estonian Constitution, the Riigikogu may submit the Treaty to a referendum as a national issue, the way European Union accession referendum was presented, when people were not asked to approve the Accession Treaty, but were posed the question "Are you in favour of the accession to the European Union and passage of the Act on Amendments to the Constitution of the Republic of Estonia?" This resulted in a Constitution amendment.
The Estonian Government approved the Draft Treaty establishing a Constitution for Europe on 21 October 2004 and the Treaty was signed on 29 October 2004.
In Estonia, the Riigikogu will make the final decision on the necessity of a referendum. In December 2004, the Constitutional Committee of the Riigikogu established a working group, which must submit its opinion on whether the Estonian Constitution and the Constitution Amendment Act enable the Riigikogu to ratify the Treaty establishing a Constitution for Europe without amending the Constitution or not.
Estonia attaches great importance to informing the public of the Treaty, as it is also a good opportunity to raise the people’s knowledge about the EU as a whole. The State Chancellery’s EU Information Unit has the central role in the co-ordination of the informing process. An information plan has been outlined including different media projects, information days, the publication of fact sheets and brochures, training sessions for journalists and for the representatives of rural areas. An important role will be played by non-governmental organisations.
8. Public opinion
As with European Union institutions, the Riigikogu and the Government are responsible for informing the citizens of European developments and Estonia’s participation in the EU decision-making process to ensure maximum awareness of European affairs. Information services are organised and co-ordinated by the State Chancellery’s European Union Information Unit.
In Estonia, Internet resources are fully exploited; several EU information centres have been established all over the country, and the county governments have employed regional EU information officers. A great number of governmental institutions regularly publish information materials, which are available in libraries, information centres, county governments etc.
Support among Estonians for the European Union has remained stable at 67-70% of the population. The last survey in March showed support among Estonia’s population for the European Union to be 70% (EU public opinion fact sheet).
9. Estonian representatives in European Institutions
European Commission
On 1 May 2004, Commissioner Mr. Siim Kallas from Estonia began his work in the European Commission. The appointment of a commissioner is of great importance to the new Member States. However, since the Commissioners work in the interest of the Community and they are independent in the performance of their duties, we cannot call Siim Kallas Estonia’s Commissioner. Nevertheless, his appointment will definitely help to make the work and the structure of the Commission more comprehensible to the Estonian public. It will also help raise the awareness of the Commission as an institution standing for the interests of the EU.
Siim Kallas continued his work as a Member of the Commission in the new Commission that took office on 22 November 2004. He is the Commissioner for administrative affairs, audit and anti-fraud, as well as the Vice President of the new Commission. The next Commission will be nominated in 2009.
European Parliament
The European Parliament elections, which took place in Estonia on 13 June 2004, were a new and significant experience for the Estonians. The European Parliament has gradually gained a larger say in the EU decision-making process and the Treaty establishing a Constitution for Europe will increase its competency even more. Thus, the decisions made by citizens at European Parliamentary elections are of great importance.
Estonia has 6 representatives in the European Parliament: Mr. Toomas Hendrik Ilves, 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 ALDE) 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. Mr. Ilves was selected as the Vice-Chairman of the Committee on Foreign Affairs. Mrs. Mikko joined the Committee on Culture and Education. Mr. Tarand is a member of the Committee on Industry, Research and Energy. Mrs. Oviir was selected for the Committee on Women’s Rights and Gender Equality, as well as the Committee on Employment and Social Affairs. Mr. Savi joined the Committee on Development and Mr. Kelam joined the Committee on Regional Development.
Other institutions
Mr. Uno Lõhmus was nominated from Estonia as a judge to the European Court of Justice from 1 May 2004 until 6 October 2009.
Ms. Küllike Jürimäe was named to the Court of First Instance until 2010.
The Estonian representative in the Court of Auditors is Ms. Kersti Kaljulaid, who is one of the rapporteurs in Group II "Structural and internal policies". Her mandate ends in 2010.
Representatives of Estonia’s civil society are actively involved in the European Economic and Social Committee, and the representatives of Estonia’s local governments are taking part in the work of the Committee of the Regions. Estonia has seven members in both of these committees.
More information about Estonia in the EU:
Ministry of Foreign Affairs
Coordination of European affairs in Estonia
