H.E. Mrs Kristi Karelsohn:

I thank the honourable Chairman and members of the committee. I am very happy to present Estonia's priorities here. As a first time Presidency for Estonia, it is a very exciting time ahead of us. We all feel that we have to take a great responsibility in the role and take the European agenda forward.

There is no need to assure anybody that it is not the easiest time for the European Union, when we are taking up our Presidency. First there was the eurozone crisis that shook the fundamentals of our common currency. Then there was the migration crisis - far from over today – which started to pose new challenges for our unity and collective operation. A year ago, after the Brexit vote, people started to ask existential questions about the future of our Union. The increasing threat of terrorism, both in the real and cyber worlds, also contributes to the turbulence and instability for the European Union lives in.

The overarching aim of the Estonian Council Presidency is to ensure that - despite all the global and local challenges - the EU remains united and decisive. We must keep looking for issues, initiatives and ways that unite us, and not for those that pose a risk of dividing member states. We should look for initiatives that balance things and build bridges.

One of the most challenging developments in that regard is Brexit which, as a topic, is not mentioned among their priorities. It will no doubt be a very controversial topic and a factor in financing the EU's work, at least for the next couple of years, but the main responsibility in the negotiations lies with the Commission and its chief negotiator. Estonia, as President of the Council, will be at the service of the 27 member states and will work closely with other EU institutions to ensure as smooth and constructive a Brexit process as possible. However, we would like to avoid Brexit being in the centre of our Presidency and see the Union moving forward with its everyday agenda. Despite the difficulties being posed by the negotiations, the Union also has to preserve its unity.

Despite, and even due to, these challenges, the EU has to look forward. The White Paper and reflection papers by the Commission, and several reports by the European Parliament, give us a good basis for discussion about the future of the EU. We must not forget, however, that it is not the institutional set-up that is the most important aspect, but that our citizens must be at the centre of our attention. Delivering concrete measures for our citizens is what the Estonian Presidency will strive to achieve.

We have four equally important priorities for the Estonian Presidency. First is an open and innovative European economy. Second is a safe and secure Europe. Third is a digital Europe and free movement of data. Fourth is an inclusive and sustainable Europe. We also have two cross-cutting issues on our list of priorities, which are the Eastern Partnership and the digital agenda.

On our first priority, an open and innovative European economy, an open Europe means creating better opportunities for its citizens and businesses. A strong Single Market is a key driver of economic welfare, but it is not yet complete. To support growth and competitiveness, we must ensure providing services and starting business in the EU is easy and that rules are transparent and predictable. We need to create new funding opportunities for companies and a stable banking sector. These objectives could be achieved by protecting and promoting the EU's four freedoms and facilitating the freedom of establishment and cross-border mobility of companies. The European economic and monetary union has been strengthened in recent years, but much is still ongoing. It is necessary to complete the second stage of the creation of the European banking union and work must continue on implementing the capital markets union.

Guided by the principles of the European energy union, the Estonian Presidency focus is on the new electricity market design, which provides an essential basis for a single European energy market. Estonia will co-ordinate the clean energy package and seek agreements on practically every aspect of the package.

In the era of the slowdown of globalisation, trade is no longer an EU policy that enjoys unconditional support, but Estonia believes in free trade and stands, together with Ireland, in defence of it. We hope to finalise the agreement with Japan. There is an opportunity for a political agreement tomorrow at the EU-Japan summit. We also want to make progress on other agreements such as Mercosur and those with Mexico and other countries.

With regard to a safe and secure Europe, the security situation in Europe and its neighbourhood countries remains complex. Terrorism, organised crime and the protection of the EU's external border remain a high priority. The migration crisis proves that Europe cannot ignore the events unfolding outside its borders.

It will come as no surprise that Estonia intends to put greater emphasis on defence co-operation and levels of defence spending to enhance European military capabilities. We also hope for the European Parliament's support in setting up the European defence fund. Estonia will join the Permanent Structured Cooperation, PESCO. In addition, we want to move forward with EU-NATO strategic co-operation for tackling hybrid and cyber threats, inter alia.

We believe internal and external security is indivisible. Estonia supports the High Representative in implementing the global strategy. We are ready to contribute to the strengthening of transatlantic ties, supporting the implementation of the objectives of the European neighbourhood policy and ensuring the EU's political focus remains on the Eastern Partnership, which is one of the cross-cutting priorities for our Presidency, as mentioned.

In recent days, the level of migration has reached new peaks. It is an issue that got a good deal of attention in the previous session here. In our view, the most important aspect is co-operation with third countries to deal with the root causes of migration. We have to protect those who are entitled to international protection and at the same time strengthen our external borders, implement an effective return policy for those who are not entitled to stay, and fight against trafficking of people and irregular migration.

One of the main Estonian priorities is the reform of the European common asylum system. We must continue creating databases and modern IT solutions that allow for rapid exchange of information when needed. To improve the exchange and use of information, we will continue the work towards interoperability of different IT systems and databases.

That leads me to our favourite topic and the third priority, which is DigitalEurope and the free flow of data. It will come as no surprise to anyone that one of our priorities is DigitalEurope. We see technological innovation not as an objective itself but as a tool to make the lives of people, companies and governments more effective. We believe that making good use of technology will be the key to success for Europe.

Our Presidency will focus on the establishment of a digital Single Market, increased use of e-solutions and data as well as on the development of cross-border e-services and cyber defence. We have planned around 45 events and meetings directly or indirectly related to digital topics. About half the informal Councils and four Minister’s meetings also have a digital dimension. The most important event, as mentioned by the Minister previously, will be the digital summit in September in Tallinn.

We will also aim at introducing new smart IT solutions to make the EU function more efficiently and easier to understand. In the same way, the free movement of data is something that concerns all European policies. Data is the raw material of the information society that makes the flow of capital, people, goods and services easier, faster and more affordable. Today, this potential is not fully exploited within the Single Market. The free movement of data, as the fifth freedom of the EU besides the existing four freedoms, is a future-looking debate that Estonia wishes to initiate. Better cross-use of data is needed for better decision-making, efficiency and fighting common threats like terrorism and cyber crimes.

Doing that, one cannot overlook the fundamental freedoms of our citizens. The free movement of data needs clear rules. We need to find ways to ensure the data is used in a secure way for our individual and collective benefit. That involves data protection and privacy, new technologies, cutting edge infrastructure and all other enablers and restrictions on the movement of data. Also, Estonia is ready to share its wide experience here. Among other things, I was delighted to speak at the recent data summit in Dublin about how we have built trust in an Estonian digital society. More concretely, we want to focus on the removal of unjustified data localisation requirements; promoting a once only principle for eGovernment services; and creating clear rules on data access and portability.

The fourth priority is an inclusive and sustainable Europe. We believe that economic achievements alone do not bring happiness and prosperity for European people, but we have to seek a balance between economic, social and environmental goals. Inclusive Europe supports equal opportunities for employment, access to services and social inclusion.

When moving across borders, equal opportunities also mean fair mobility. To promote the free movement of persons, workers and services and supporting social guarantees, Estonia will continue the work on social security co-ordination regulation.

A sustainable European Union cares about and contributes to a cleaner environment and a more balanced economic model. We want the European Union to stay committed to the Paris Agreement and a 40% reduction in greenhouse gas emissions by 2030. We aim to make progress on all climate policy files and look forward to productive collaboration with the Parliament in advancing them.

I thank all members for their attention. I am happy to take comments or questions they may have and engage with the committee in the future during our Presidency.