November 10, 2003, KievTHE EU AND EASTERN NEIGHBOURS WIDER EUROPE – GENERAL REMARKSLadies and Gentlemen,Lithuania has successfully completed accession negotiations almost a year ago and will enter EU on the 1st of May 2004. Almost a year ago we have joined the EU discussion on Wider Europe-New Neighbours initiative – a new historic endeavour, which aims to bring EU and its Eastern European neighbours much closer.Despite a very short period for this kind of political initiative, joint efforts on Wider Europe concept brought us to a stage when concrete steps should be taken in the nearest future – Action Plans for Ukraine, Moldova and Russia will be prepared in the first half of 2004.In Lithuania we are well aware about Ukraine’s cautious first reaction to Wider Europe initiative. Main argument I have heard from my Ukrainian colleagues, that Wider Europe does not give a response to Ukraine’s aspirations to become EU member. That reminds me Lithuania’s efforts to be included in the processes of EU and NATO enlargement.To this kind of doubts I have an answer. We have stressed several times that current debate on Wider Europe policy should not prejudice the question of the future EU borders. Doors of the Union are not closed for the countries that have European aspirations. By enhancing co-operation and encouraging reforms Wider Europe policy could support these aspirations It also could serve as an instrument for integration into EU, if country concerned makes this choice. I agree that EU neighbours differ very much. That is the reason, why Wider Europe initiative is based on the principle of differentiation. It means that EU itself and each EU neighbour could use this initiative for a wide range of aims – from co-operation and strategic partnership to integration. At the same time, it is obvious that Wider Europe policy will be a street with a two side traffic, or as Commissioner Gunter Verheugen emphasized recently in his speech in Moscow – New Neighbours concept is based on a joint ownership. What we need to do is to increase eastern neighbours’ awareness of membership requirements, foster the process of democratisation, administrative reform, economic liberalisation. It is necessary to develop “border friendly” justice and home affairs policies, and foster cross-border and regional economic and infra-structural co-operation. This would create a regional dynamics between the new members and their immediate eastern neighbours. UKRAINE’S STRATEGIC GOALUkraine is the country which could benefit most from New Neighbours policy. Therefore, we consider preparation of the Action Plan for Ukraine as a priority for the New Neighbours policy. I have presented to the European Commission Lithuanian non-paper with our suggestions with the aim to stimulate the formation of the policies towards Ukraine. Let me stress the key points of our proposals.Political will and public supportThe understanding of the EU cannot just be pragmatic. It is not only the provider of assistance and not only an economic union. The EU first and foremost should be regarded as a community of values. In this regard it is important to increase awareness about EU, to enhance political co-operation with Ukraine. Primarily it should focus on the democratic reforms and the development of civil society.In its turn Lithuania has established a comprehensive bilateral mechanism of political dialogue with Ukraine by creating joint institutions at the level of Presidents, Prime Ministers and Parliaments as well as initiating dialogue of business community and intellectuals. The purpose of all these structures is to foster political will for democratic, economic and institutional reforms. Free and fair presidential election in 2004 is an important benchmark for Ukraine.Active policy towards civil society is an important aspect in terms of activities related to Ukraine. Closer contacts with the elements of the civil society in Ukraine could be one of the ways of ensuring positive atmosphere for political and economic reforms. Expanding relations with political parties in Ukraine could also be considered both on bilateral as well as multilateral basis.Road map for economic integrationFurther Ukraine’s progress on full implementation of the provisions contained in the Partnership and Co-operation Agreement and results of negotiations on the accession to the World Trade Organisations will show the speed that the country is ready to take in economic reforms and real improvement of business environment. That would bring EU and Ukraine closer to the possibility to start discussions on future establishment of the free trade area. Timetable of economic reforms, including implementation of the PCA and WTO accession, if agreed between the EU and Ukraine, would assist Ukraine in getting closer to the EU economic criteria. Legal approximationWe claim that “policy by declaration” is never enough. The approximation of legislation, which is a core priority of the PCA and the Common Strategy, should move as smooth as possible. The EU should offer timetable for legal approximation, supported by means of technical assistance. Annual review of progress, made by Ukraine, in approximation and implementation of legislation to the EU norms and standards should be launched to demonstrate the EU interest in Ukraine’s efforts in European integration. Administrative capacityAs we know, the qualifications and skills of the officials and the administrative capacity are essential. We do observe quality improvement of Ukrainian civil servants, but still there are too few of competent officials to carry out swiftly the transformation of the system. Expertise of Lithuania in the issues of transition of post-soviet period as well as its EU accession experience gives an advantage to provide expert support to Ukraine in such issues as development of administration system on the way of implementing structural reforms.Therefore, we have been participating in a trilateral project of the Baltic countries and Canada on co-operation with Ukraine in economic training. We have already started implementing several assistance projects, including a project related to training of Ukraine's public officials on transformations in public administration. Lithuania is ready to provide bilateral assistance to Ukraine in the fields of development of civic society, transformation of market economics, WTO issues, and environment. CONCLUSIONSThe EU is both a vehicle for change and an end-goal for the majority of European countries. These two aspects compliment each other. Yet, the problem remains for those countries, which have not been offered a membership prospect. The task is to develop policies that would be separate from the issue of membership, while at the same time try to stimulate the reforms that could make it possible at some point in the future, given appropriate circumstances, to consider this very membership. Thank you for your attention.