Mr Chairman,

Excellencies,

Ladies and gentlemen,

It is a true pleasure to join you here today as the representative of the Latvian government and as the Chairman of the Presidency of the Council of Baltic Sea States. 

The fact that today's seminar takes place at the Stockholm School of Economics has a symbolic meaning. Education is one of the top priorities of the Latvian Presidency.

We can be proud that the Baltic Sea region is one of Europe's fastest growing areas. However, in today's globalized world, we have to put our efforts together to make our region more competitive. For this to succeed, we need a competitive education framework with joint cross-border centers of excellence. In this regard, the Stockholm School of Economics with its involvement in Riga and St. Petersburg is an outstanding example. This cooperation, based on solid mutual benefit, clearly demonstrates the kind of synergies that our region must be aiming at.

Since 1992, when the Council of Baltic Sea States was founded, the region has changed dramatically – the majority of member countries now belong to the European Union.

These fundamental changes significantly influence regional cooperation. At the same time, it is clear that we need to mainstream our common activities in the region and re-evaluate the existing mechanisms of working together.

Today making our region more competitive is an essential task, to be based on development of skills, business and investment. No less important is to face our common challenges, for example, environmental issues or sustainable energy policies.

We should put regional cooperation in a broader European perspective. Few weeks ago, when the Baltic States and Poland joined the Schengen area, the physical borders on land and sea were lifted. In a couple of years, majority of our states will be members of the Euro zone. I expect that these are just a few of the processes, which will significantly change the dynamics of our cooperation and economic development.

Currently, Latvia is in the middle of its Presidency in the Council of Baltic Sea States.

A good and solid basis has been created by Sweden as the previous Chair by taking initiative to re-evaluate the efficiency of the structures of the Council itself. Consequently, last June, in Malmo the Foreign Ministers of the Council of Baltic Sea States resolved to reform the CBSS structure.

Now Latvian presidency is in the process of formulating our most urgent and common challenges. We strongly believe that the overall goal of regional cooperation should be to enhance competitiveness and sustainability of the region. Not surprisingly, on top of the list there are 4 E's: environment, energy, economics and education.

Regarding environment, our attention is directed to the Baltic Sea. We believe that strong and efficient coordination among different initiatives in the region dealing with environmental issues should take place as soon as possible. CBSS should consider its proper role and possible contribution in facilitating implementation of the new HELCOM Action Plan. 

In recent years energy has increasingly become part of the global debate due to its crucial role in sustaining rapid economic growth. Since energy means economic security and responsibility for the next generations, CBSS countries are mostly concerned about development of renewable energy sources, bio-energy, energy efficiency and diversified energy supply.

We need to establish energy infrastructure connections between the Baltic States and the rest of the European Union, for example, electricity interconnections between Estonia, Latvia, Lithuania, Sweden and Poland.  I personally believe that additional debate is needed about the possibilities for Baltic States to integrate in the common Nordic electricity market.

Speaking about economics, there are several sub-directions – promotion of trade and investments, innovations and new technologies, competitiveness in its broadest meaning, as well as maritime policy. Most of our governments have constructive and regular dialogue with our business communities, but, nevertheless, we can still contribute to improving business environment in the region.

Coming to the fourth 'E' - education, we should admit that the real value of our region is in our human resources. Nowadays, development and strength is in knowledge, information, science, creativity and innovation. That's why investment should go into education, science and creative industries in order to enhance productivity and stable economic growth in long-term.

Ladies and gentlemen,

Success of today's Europe lies within its regions. A higher degree of integration can be achieved among the neighbors. This is why today we engage in the discussion on the EU Strategy for the Baltic Sea Region.

I note with satisfaction that at the end of last year the European Council invited the Commission to present an EU strategy for the Baltic Sea region at the latest by June 2009.

Now, when the European Commission has started its work on the Strategy, the countries of CBSS should not stand aside, but actively assist. We have strong and experienced regional players - intergovernmental structures, business leaders and NGOs. They have an opportunity and responsibility to be active in presenting their visions and ideas. Just an outstanding example - the Baltic Development Forum 2007 Tallinn recommendations 'The Baltic Sea Region as a state to do business'. 

Besides the elaboration of Baltic Sea Strategy, we as EU members should create a real and performing internal market. An important step forward lies in enabling the greatest possible freedom of movement and greater access to the labor market.  

However, ladies and gentlemen, there is another essential country in the region, namely, Russia.  The dialogue and cooperation between the European Union and Russia will play a significant role in the success of the EU Strategy for the Baltic Sea Region and successful cooperation in the region in its turn will be beneficial to the EU as a whole.

The work on the Strategy should be harmonized with the strategic priorities of the region. In the June CBSS Summit in Riga, Latvia will report on the priorities of cooperation of the countries around the Baltic Sea. This will be our contribution to and for the EU Strategy.

Thank you for your attention!