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INTERVENCIÓN de VALDIS BIRKAVS

Ensayo nº16

Honourable Mr. Chairman, Ladies and Gentlemen, It is my pleasure and great honour to deliver a presentacion here at che Spanish Institute of Foreign Affairs, and I would like to thank the Institute fot the invitation to speak here.

The year 1997 seems to be a landmark year Ín the history of Europe, as two of its institutions are going to enlarge by moving eastward. Therefore in my presentacion I wouid like to dweil upon one target of Latvian foreign and security policy which in our vision can be reached in two parallel, complementary and interrelated ways. The target is the return of Latvia to Europe and making this return irreversible, ana tile two ways are Latvias integracion ioto the European Union and NATO. Since my presentation seems to fall almost exactly one month from the NATO Summit, which takes place in Madrid at that, I wil] briefly dweil upon che factors that determined Latvia's foreign and security policy choíce, and then pay tribute to the Madrid Summit by discussing oui policy vis-a-vis NATO first.


The 20th century has brought about many dramatic changes in the destiny of Latvia. First, after the collapse of the Russian Empire and the outcome oí Worid War One, in 1918 the Latvian natíon couid proclaim itself as an independent state. It became a democratic and internationally recognised republic, which became a member of the League of Nations and achieved remarkable results in all spheres ofíife. Economically Latvia was on a par with the Scandinavian countries, its mam rrading partners were Germany and United Kingdom. Latvia westem orientatJion m culture and eáucation was not less distínct.


After the occupation of 1940 by the Soviet Union, totalitarian regíme Was forced upon Latvia, which not oniy isolated it from its natural partners in the west, but ruined the economy of Latvia, devastated its culture and carried out a lastíng policy of russificarion. In chis regard Latvia is thankful to Spain, which like the most of western countries dÍd not de iure recognise the incorporation of Latvia and the other two Baltíc states Estonia and LÍthuama meo Soviet Union.


Among factors which made ít possible for Latvia to renew its independence and take its European road agaín, the already mentioned non-recognítíon policy of the western countries and their support for the Strivings of the Baltic nations to reestablish their sovereign statehood were very important. Equally, if not more important was the European identity of the Latvian nation which did not allow it collide with the masiS of Soviet people and forget its roots. Europe- an identity served aiso as the fírst impulse to the developroent of Latvian foreign policy after regaining of independence in 1991.


To the west of us there is a oíd in which integracion, based on the principies of democracy and market economy, is about to produce a new internacional system that will guarantee peace and stability to aÍl the individual nations, leaving them their own sense of identity; an integraced communicy of nacions where the appearance of a single councry which might produce instability and rock the whole syscem is not possible.


To the east of us there is a vast post-soviet space ín which the íssues of the division ofinfluence and resources have not been comnierelv solved vet. Russia —the biggest power in that space— poses a great uncertainty as to its economic development and future of democracy alone, not to mention the pattern it is going to follow in relations with its immediate neighbours and the wet in general; henee, the prospects for stability and a profoundiy democratic development to the east of Latvian borders are still very vague for quite a number of years to come.

Referring to the geopolitical situation I just pictured, Latvia had a choice of becoming either a part of the future or a part of uncertainty. In such setup, integration with multilateral international organisations was actually the oniy security policy option for a small state like Latvia, and this determined its foreign policy choice. Security, economic integration and regional integration issues were those we had to solve in the context of multilateral relations. Already In early 1995 the LatvIan Parliament -—the Saeima-— unanimously approved a document on the main directions of Latvias foreign policy up to 2005, which determines de priority aims of Latvias integration into the European Union and NATO.

NATO membership is a strategic target of Latvia's foreign policy, determined by our historical experience and our current geopolitical situarion, and an understandable wish to avoid becoming prisoners of both our history and our geography.

The wish to join it is determined also by the strong sense of belonging to the Euro-Atlantic community of democracies, since we share the same values, the same cultural heritage and adhere to the same principles as the present NATO members. Politically Latvia is ready to meet the membership criteria already now. We have succeeded in forming a democratic society, we have a free market economy functioning, and our armed forces are controlled by civilian institutions.

At present this might not be the case with regard to the technical membership criteria. However, in this sphere we have achieved remarkable progress in a very short time, despite the fact that we started to build our defence forces from scratch only a few years ago. In order to exemplify this, I would like to mention only a few facts. Latvia is an active contributor to the Partnership for Peace program. This fall we shall host a full PfP exercise Co-operative Best Effort at a training base in central Latvia —a facility we have offered for use to NATO narions. Within the PfP Planning and Review process we have committed ourselves to 22 Interoperability Objectives.

Latvia has made Its contribution to the international peace efforts as well. latvian soldiers have taken part in IFOR and SFOR. A Latvian is serving in SFOR headquarters in Sarajevo, performing the duties that are normally carried out by an American colleague. Together with Lithuania and Estonia, Latvia has formed a peace keeping force, BALTBAT. The Baltic cooperation is expanding to include a joint naval unit, BALTRON, and a regional ait surveillance system, BALTNET.

Returning to NATO as our foreign policy target, I would like to stress here that Latvia is vitally interested in the continuation of MATO enlargement regardless of whether or not it is in the first wave itself. No nation between Russia and NATO can feel secure before the security problems of each and every country in the region are addressed and solved. The decision of NATO to enlarge by any number of countries will strengthen European security, as it will move the borders of the Euro-Atlantic space eastwards, and with definitely project greater stability also in the direction of the Baltic Sea region. In this regard Latvia strongly welcomes the beginning of NATO enlargement.

Obviously, we have no guárantees that Latvia will become part of NATO in the first/wave of enlargement. However, there is no reason why we should exclude/ourselves from this; process or lower the ceiling of our security policy because of this, as it is our strong belief that issues of Baltic security cannot be separated from European security as a whole of the security of the Central Eastern European countries in particular. This would indeed create the notorious division lines, and would mean a digression from the commitments to base de new European security building on cooperation, collaboration and contribution of each state to greater stability and security, not on geopolitical considerations.


Henee it is important that the Madrid documents set out the principles of the security policy of western countries towards the countries of the Central Eastern Europe, with the aim co prevent the formation of security vacuum or grayzones. These principles should form the basis of the practical policies of the NATO countries in the period after Madrid.

Speaking of the enlargement process, it is important that all candidate countries are still involved in ic, as a division between the have-gots and have* nots may lead to further misperceptions and undesirable reacrions. The alliance could state that the first countries invited to join will not be the last, that all eligible candidates will be invited to join the Alliance and that the Alliance ha? a Strong Interest in the security of these countries and will help them prepare to join. This could take the form of consultations to provide for an individual assessment identifying áreas in which additional efforts on the part of other applicant countries are needed in order to meet membership requirements.



I would like to conduele the NATO copy by stressing once again that Latvia will remain strongly committed to its goal to join the Alliance regardless of whether it is in the first wave or not. In order to enhance io security and prepare for membership in the Alliance, Latvia will have to make one of a number of instruments. The ones connected directly with NATO are Partnership for Peace Plus program, participation in the Euro-Atlantic Partnership Council, and the individual dialogue with NATO. In addition to this Latvia will make use of a number of bilateral initiatives on the part of the United Stares, Denmark, Ufanee and Norway. These inItiacives will play an important part in the security policy of the Baltic States and will enhance stability in the Baltic Sea region, Latvia and the other two Baltic Stares, will strengthen their defence capabilities and continue their integration with NATO.

The second foreign policy priority of Latvia—the enlargement ofthe European Union—- at the moment is not connected with the opening of NATO. However, from the vantage point of Latvia's security policy objectives the two processes of inregration are interrelated and complementary.

I wouid like to point out that Latvias further integration with the European Union has been preceded by a remarkable process of recovery that is taking platie in national economy. The decline hat followed the collapse of the Soviet economic system and introduction of market reforms was successfully stopped and currently the recovery is going on at fast pace, and Latvia effectively has managed to cover the gap in dynamics of its economy and that of Estonia, which made the fastest starc of all the three Baltic States.

The relationship between Latvia and the European Union has developed rapidly since 1993, when the European Council in Copenhagen decided to develop closer relations with the Baltic States. In 1994 Latvia signed the Free Trade Agreement with the European Union, which entered into force in January 1995. In the autumn of that year Latvia submitted and official application for its accession to the European Union. The Association Agreement will enter into force after its ratification in the parliaments of all the BU member States. Only those by Irench and Belgian parliaments are pending, I would like (O use this opportunity to thank the Spanish legislators for already having made this decision.


The integration process of Latvia is marked by two closely connected dimensions. The first one refers to the administrative and legislative restructuring of the state, which is aied at the harmonisation and implementation of legislation. Latvia has prepared its national program for integration into the

European Union. This program analyses the situation in Latvia's legislation and sets aims to harmonise it with the legislation of the European Union. The pro- gram outlines the prospects for the nearest future, with domestic market legislation principally harmonised already in 1997-1998, and the process concluded in 1999. This process bring about the fúlfillment of two very important tasks. Firstly, it ensures a gradual joining of Latvia to the legislative space of the European Union. Secondiy, Latvia becomes an environment where the entrepreneurs from the EU members states can operate safety.

The second is a foreign policy dimension —the participation in the structured and political dialogue between Latvia and the European Union. Latvia rapidly approaches the Union and now one can say that the foreign policy of Latvia is developing in the context of the European Union-

Apapt from the institutional aspects and harmonisation of legislation, the integration process of Latvia has also an economic dimension. Reform policies and economic progress are indispensable for a country to join the European Union. In the case of Latvia the reforms have taken place, and the visible result is a rapid progress. After the already mentioned initial economic decline, the year 1996 saw a 3.6 per cent growth of the GDP. Growing economic activity makes 4% in 1997 expected, while 1998 should see a 5% growth. Inflation in 1996 was 13% which is lower chan in the other two Baltic States, this year its tempo continues to fast and In 1998 the experts foresee an 8% inflation.

Data testify to the fact that an economic model has stabilised in Latvia, which will persist in foreseeable future. An important role in national economy will be played by the services, dominated by financial services and transport. Today the transit services between the EU and CIS countries are developing especially dynamically, recently the turnover at the ports of Latvia has grown by 15%. Rapid development is expected also in the branches of light industry —textile, timber and food processing industries. It is very much likely that foreign investment will revive the heavy industry as well, which formerly worked exclusively for the Soviet market.

Positive tendencies in the economy testify to the fact that Latvia has swiftly adapted itself to the conditions of market economy and is ready to join he internal EU market very soon. The macroeconomics Indices testify co a growing tempo. Although it started its movement towards the European Union much later that the countries of the Central Europe, Latvia seems to be at the forefront of the reform process of Central Eastern Europe and can safety run for an early candidacy among the first countries to be accepted into the European Union.

In this regard I would like to stress that it is important that the integration process embraces the whole continent and gradually dismantles the artificial barrier which exists between the existing European Union members and associated countries in Central Eastern Europe. The European Union will fail to achieve its goals if its eastward enlargement will be delayed or it will end by accepting a
few geopolitically important countries. If Central Eastern Europe will not be integrated into the BU it will generate social instability which will inevitably affect the EU countries. Success will be achieved only when the whole of Europe will have the same rules of the game and will move in the same direction.

Latvia fully understands the complex character of the enlargement process and the time factor necessary for it$ realisation, In this regard Latvia considers that the enlargement Strategy to be adopted by the European Union will be the key issue of its policy towards the Baltic States. Latvia sees the necessity to begin accession negotiations simultaneously with all the candidatos. It is a pre- condition for the continuity of the process, stability and homogeneous econo- sene developnient in Central Eastern Europe as a whole, and in the Baltic region in particular. Further negotiations may include different mechanisms and varying tempos, but it is important to preserve a continuous cooperation and dialogue between the EU member States ana European Commission on the one hand, and the associated countries in Central Eastern Europe on the other. It is essential t0 preserve the tempo of reforms and restructuring, precisely defining the end result —a full-fledged membership in the European Union.

Here I wouid like to mention that Latvia considers Spain to be an important cooperation partner not oniy in the European integration processes, but also in bilateral economic, political and cultural co-operation. It is erroneous to speculate that admission of new members into EU would harm the interest of South European countries. on the contrary. Countries like Spain and Latvia have a huge cooperation potential which can be fully exercised only within the EÜ. We are not competing and will not compete economically. The Baltic States is a growing market for Spanish goods, and not only wines and fruit, but also a variety of industrial goods. In our turn, our timber exports may have good prospects in Spain.

In order to make the decisive step towards a united Europe, we need just litlie --"a readiness of the Europeans to cooperate and support each other in the name of a common future. It is this approach that ill allow us to reach our common goals - peace, stability and well-being. It is this approach that will allow to preserve European identity in the dynarok world of the twenty-first century.

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