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CHALLENGES TO THE FOREIGN POLICY OF THE EU. Approach of the New Government of Lithuania

Excellencies,

Colleagues,

Ladies and gentlemen,

Twenty years ago the city of Berlin offered to the world one of the most memorable sights in modern history- the dismantling of the Berlin Wall.

Few places in Europe carry the symbolism of transformation from captivity to freedom, from division to unity so strongly as this city. And as such, Berlin is highly symbolic of the path of Europe herself, from a continent divided to a continent united.

Two institutions and a common set of values had been paramount in guiding Europe through this historic transformation following the dismantling of the Wall: the European Union, NATO, and their shared belief in democracy, freedom, the rule of law, and free market economy. 

Twenty years after the fall of the Berlin Wall, democracy and free market have gained solid ground in Europe, and both the EU and NATO continue to extend their appeal beyond their borders, with new candidates lining up, eager to join the ranks.

The gains are enormous. But so are the challenges. Conflict persists, from decades-old tragedy of the Middle East to the recent unrest in South Caucasus. The world is facing a major financial crisis; climate change poses growing risks; wars over scarce resources such as water or raw materials are an increasing possibility; the universality of our values is being challenged by authoritarian regimes; while energy is becoming a tool of power exertion.

How do we respond to these and other challenges? Without going into an exhausting discussion, I would like to focus on three essential elements: a strong transatlantic link, EU’s solidarity and leadership, and building a more secure and predictable neighbourhood.   

Let me start by saying that a strong NATO and a vibrant  transatlantic link remain indispensable. In April this year we will mark the 60th anniversary of the North Atlantic Alliance. Thanks to its ability to enlarge and adapt, NATO remains a cornerstone of European security. Among other things, France’s current discussion regarding its full return to NATO military structures testifies to NATO’s lasting importance for Europe.

North America’s relationship with Europe enables us all to achieve goals that neither one of us could on our own, which is especially important in today’s complex and often unpredictable strategic environment.

In our view, the core purpose of NATO- to provide for collective defence of its members and to institutionalise the trans-Atlantic link- must be kept rock solid. Of course, the complexity of present challenges has prompted NATO to undertake a variety of out-of –area missions. Remember the slogan of some fifteen years ago- out of area or out of business? Today, we are out of area and still in business, with the operation in Afghanistan as a key to the Alliance’s success.  

However, the memory of previous and the ever present possibility of new terrorist attacks inside NATO countries, as well as the increasing importance of issues like energy security and cyber-security, among others, have re-emphasised the importance of NATO operating in area (NATO home missions), in order to maintain solid deterrence and defence. NATO members situated along its periphery deserve particular attention in this regard. We need to make our  Alliance more visible, and more capable to respond.

As we prepare for the NATO summit later this spring, enhancing trans-Atlantic dialogue with the new US administration is critical. We have all seen the huge excitement in Europe regarding the election of President Barack Obama. Everyone was expecting a new honeymoon with America. Our mutual goal now is to make the honeymoon of European-American partnership into a solid marriage.

In Munich last weekend Vice-President Joe Biden clearly stated the willingness of the US Administration to listen, engage and partner. America needs Europe just like Europe needs America- from Afghanistan to Iran, from the Middle East to China, from energy security and Russia to democracy promotion in the EU’s and NATO’s Eastern neighbourhood.

This will require a shared vision, close coordination and consistency in implementing commonly agreed goals. It will also require Europeans to do more by, for example, extending a helping hand to the Americans on the closure of Guantanamo, expansion of the mission in Afghanistan, in dealing with the Middle East crisis, Iran and elsewhere.

In terms of a broader transatlantic link, Lithuania welcomes the initiative on closer economic cooperation between the EU and the US, launched by the Federal Chancellor Angela Merkel during the German Presidency. At the same time we believe that in the long-run we should aim for the creation of a Trans-Atlantic Free Trade Area.

In seeking ways to strengthen the transatlantic link, we should also consider how available European instruments, for example, ESDP’s Berlin Plus, can be better used to enhance the Euro-Atlantic partnership.

At the moment, we are conducting a single operation, the ESDP mission in Bosnia and Herzegovina which will end next month. How do we breathe new life to existing agreements? Maybe we can think of “Berlin Plus 2”, or “Berlin Plus Reversed”? By “reversed” I mean a two-way approach: Berlin Plus provides us with a possibility to draw on some of NATO's military assets for peacekeeping operations; while “Berlin Plus Reversed” could enable NATO to draw on EU’s civilian assets for its operations.

The Afghanistan case makes it clear that neither military nor civilian assets can work separately; we need a comprehensive, integrated and consolidated civilian-military approach. Thus a renewed Berlin Plus option, whatever its name, could be the right step in the right direction. 

Ladies and gentlemen,

The transatlantic partnership would also be made stronger by enhancing the EU’s role as a global player. I trust that in order to cope with existing and emerging challenges internationally, we need a strong and united European Union speaking with one voice and acting as a truly global player in promoting the interests of our citizens in the interdependent, flat and crowded world of the 21st century.

Especially now, as the world faces a major financial and economic crisis, enhancing and projecting the role of the EU as a global player is nothing less but a necessity.

To build such a global Europe, we need to deepen EU’s integration and further develop its long-term strategic vision, based on solidarity among all member states. The entering into force of the Lisbon Treaty would be a major step in that direction- and I hope we make that step sooner rather than later.  

We need strong EU leadership in order to be successful in dealing with other key players on the international scene, such as the United States, China, India and Russia, on issues like non-proliferation, disarmament, fight against terrorism, and migration.  We also need strong EU leadership to move things forward on such complex matters as crisis management, global economic governance, climate change and energy security.

Given the importance of energy issues and its security implications, Lithuania welcomed the decision of the German Presidency to place energy security at the top of  EU’s policy agenda.

Let me dwell on the issue of energy at some length. As demonstrated by the recent Ukraine-Russia gas conflict, energy has become a tool of power politics. Lithuania is particularly sensitive to this issue, since in terms of infrastructure integration the Baltic States remain a valley of exclusion in an ever more integrated European Union.

For her own benefit, Europe must react with decisiveness to diversify her energy supplies, by focusing on a systematic policy response, tackling the bottlenecks of European energy security, and developing a competitive and well-integrated EU internal energy market.

We need concerted actions in the following areas: 1) developing internal interconnections, 2) building effective and competitive internal energy market, 3) ensuring transparency of external supplies and 4) ensuring alternative sources of supply, thereby reducing our dependence on a single supplier.

In this context, we welcome the proposal of the European Commission to allocate additional financial support of 175 million Euros for the Swedish-Baltic electricity interconnection. We hope German and other EU Governments will support the Commission’s proposal.

A swift implementation of this project would be a significant step in breaking the energy isolation of the Baltic States and facilitating their energy integration with the rest of the EU. We also welcome proposals to extend financial support to NABUCCO and projects across Europe for LNG terminals, new pipelines and electricity connections. All this combined will contribute towards making the European Union energy sector single, interconnected, and less vulnerable to power games by certain countries.

In the meantime, we should use our negotiations with Russia on the new Partnership and Cooperation Agreement as a tool of influence, by encouraging Russia to become a reliable and responsible provider of natural gas and oil. We should use the negotiations to legally bind Russia by the principles of transparency, mutuality, non-discrimination as well as other principles of the Energy Charter.

Intensive cooperation with Ukraine is also essential for the improvement of energy security in Europe. The EU – Ukraine Association Agreement, currently under negotiation, should boost transparency in the energy sector and should facilitate the EU law approximation process and application of good practices in the Ukrainian economy and society as a whole.

Ukraine’s deeper integration into the EU energy system should also be seen as a matter of priority.

Among the wide range of issues facing us today, I would also name recovery from the financial crisis and revival of economic growth as a goal of utmost importance. To tackle global economic crisis, enhancing multilateral cooperation is highly important. In this context, we believe the proposal of the Federal Chancellor Angela Merkel to establish an Economic Council at the United Nations is timely and merits a serious discussion. 

On the other hand, solidarity of member states and their financial services is of critical importance. While speaking in Munich on 6 February, 2009, President of the World Bank Robert Zoellick gently reminded his audiences that for the last decade Western European Banks had enjoyed impressive profits thanks to the growth of Central and Eastern European countries. Now is a good time to show solidarity and in return, to ease credit lines for businesses in those countries.

In addressing current economic difficulties and developing a long term strategy, the EU should build on its major achievements such as the completion of the EU internal market, further expansion of the Economic and Monetary Union, as well as openness to free trade.

We fully recognise the strategic and practical advantages the EU single market and free trade with the rest of the world provide to all of us. Take my country, for example: thanks to foreign trade, we had enjoyed impressive growth in the past few years. I will only mention here that Lithuania’s foreign trade turnover in 2008 was bigger than the nation’s GDP. Given the obvious advantages of free trade, I can tell with certainty that we need more openness and more free trade, not less, in times of global economic slowdown.

We therefore need to vigorously pursue multilateral trade talks, while also exploring possibilities on the bilateral front. A free trade agreement with Korea - the first deliverable since the launch of Global Europe - could be completed rather quickly. We need to follow up with India, Asian economies, and MERCOSUR. We should also work toward establishing free trade relations with Ukraine, Russia and other Eastern neighbours.

On the other hand, we should be vigilant and firm in ensuring that our trading partners do not violate or restrict free trade. Tackling government interventions, violations of intellectual property rights and non-tariff barriers is key to success in our trade relations with international partners, such as China or, as a matter of fact, Ukraine, and others.

Ladies and gentlemen,

Let me now move to the issue of building a more predictable and secure neighbourhood. Undoubtedly, in order to safeguard the prosperity and security of our people,  our common interest demands  that we should be surrounded by like-minded nations who respect democracy, freedom, the rule of law and build their prosperity on the shared principles of a free market. 

The EU has at its disposal two major instruments to promote change among its neighbours: the Euro-Mediterranean process, now  the Union for the Mediterranean, and  the  Eastern Partnerhip Initiative. For obvious reasons I will focus on our neighbourhood, covered by the Eastern Partnership.

I understand that some of you took a train trip last year to visit Johannes Bobrowski’s legendary land of Sarmatia- across Eastern Prussia and into Lithuania, seeing Warsaw, Kaliningrad and Vilnius, which this year became Europe’s capital of culture, along the way. I am sure that the trip offered some insights into the history and realities of the region that sits at Lithuania’s- and the European Union’s- doorsteps.

We look forward to the forthcoming launch of Eastern Partnership initiative. This initiative should offer a stabilising framework to both bilateral and multilateral cooperation on EU priority issues with the region’s countries.

One thing is certain. To promote change further East, we need to be smarter in reaching out to the common people living on the other side of the eastern borders and  sustaining  the urge for more openness and freedom in these societies.

Enhancing people-to-people contacts is vital in this respect. For example, we have a unique neighbour next door- the Kaliningrad Region, which, in our view, could become a pilot project of EU-Russia integration. We can work creatively in extending cross border cooperation, promoting greater people-to-people and youth exchanges, and facilitating visa procedures which could one day lead to visa free travelling. 

In fact, we have almost completed the negotiations on small border traffic agreement with Russia. It will allow people living close to Lithuanian – Kaliningrad border to cross it almost freely and without visas.

We have also noticed signs of more constructive attitude from Russia. Our Bilateral Commission on cooperation on judicial issue will meet in Kaliningrad on 27 February. On 5 February together with the Russian MFA we held a discussion of Lithuanian and Russian historians on our common history. An agreement on the preservation of cemeteries in both countries is almost completed, and political dialogue between senior officials is scheduled for the beginning of March.

We welcome this sign towards more dialogue. As we proceed to develop pragmatic and business-oriented relations with Russia, we will continue to be guided by the values of freedom, democracy, human dignity, and historical truth.

Turning to another neighbour of ours, Belarus, I can say that over the past few months we have noticed growing interest of Belarusian leaders to balance their relations between East and West. The release of Alexander Kozulin and other political prisoners last year was the first signal of Belarus’ willingness to cooperate. The EU answered with a decision to suspend sanctions for six months as well as with opening possibilities for a political dialogue. Other small but positive steps  followed, such as registration of Milinkevich’s movement “Freedom of Belarus”, allowing distribution of two newspapers, also the launch of the Public Advisory Council with a limited participation of civil society activists.

On the other hand, Belarusian opposition still feels intimidated, as could be seen last week when several young opposition activists and representatives of SME communities where arrested.

Thus only time will show whether these initial overtures have any lasting value we can build on. However, it is our common interest to see an independent, stable and secure Belarus moving towards democracy and open society. In this respect, the Eastern Partnership provides a chance for Belarus to move closer towards the EU. I am particularly pleased that Germany has taken a keen interest in the processes in Belarus and look forward to working closely with you on the matter.

We should also be clear that a possible invitation to join Eastern Partnership is not a reward, but a pragmatic choice. As Commissioner Benita Ferrero-Waldner said recently: ”If the EU does not upgrade contractual relationship, we shall leave the field open in Belarus for other actors who care little if at all about improving human rights situation.”

Belarus can be invited to join the Eastern Partnership provided it shows commitment to move toward building an open society and democratic governance and respects the territorial integrity of all countries, including and in particular Georgia. Failure to do so may result in a lack  of  support on the EU side for opening a new chapter in Belarus’s relations with the EU.

Ladies and gentlemen,

Out of the rubble of the Berlin Wall, out of courageous  actions of countless people such as those who joined hands to form the Baltic Way twenty years ago, a new kind of Europe emerged- ever changing and open to new members as they embrace the shared values of democracy and freedom and undertake to build a common area of prosperity and peace. It is a Europe standing firmly on its two feet- the ever closer Union and the indispensable transatlantic link. The strength of those two pillars is in unity and balance. 

Together, Europe and North America form a core of global coalition that is well able to take on existing challenges or challenges yet to emerge. Those challenges we will have aplenty. It is therefore time to reset the button, to use Vice-President Biden’s phrase, in the broadest sense – and get to work. And as we proceed, I trust that Germany and Lithuania will be among the closest partners ever.    

Thank you.