Oireachtas Joint and Select Committees

Thursday, 24 October 2013

Joint Oireachtas Committee on European Union Affairs

Experience of Estonia and Latvia in the EU: Discussion with Estonian and Latvian Ambassadors

2:15 pm

H. E. Mr. Gints Apals:

I thank the Chairman and the committee for their interest in Latvia's experience and for their kind invitation to participate in this meeting. We all know that the EU is much more than just another international organisation. Therefore, the experience of membership in the Union is rather complex and at the same time individual.

I hope the committee will allow me to start with a small retrospection to say that Latvia’s decision to move towards full membership of the EU was determined by geopolitical factors and by its own historical experience. The Soviet occupation and annexation separated my country from other European nations for five decades and soon after the restoration of national independence in 1991, Latvia started to build a modern democratic society seeking security and prosperity through close co-operation with the existing European and Euro-Atlantic structures, namely, NATO, the OSCE, the European Free Trade Association which existed at that time, and above all, the European Union. In the 1990s the EU gradually became the most dynamic and powerful European structure embarking on an ambitious policy of enlargement. Inevitably, Latvia decided to follow the general trend which prevailed in the whole of central and eastern Europe and decided to adopt the European socio-economic model, applying for membership in the EU soon after.

I would like to structure my short presentation today along three main vectors, namely, the political, economic and societal impact of Latvia’s accession to the EU. Before identifying the advantages attained, it is necessary to remind one that Latvia implemented significant reforms and benefited from EU assistance even before accession. Approximation of legislation and transposition of EU norms happened on the basis of the association agreement concluded in 1995 and, more importantly, in the process of negotiations on the accession agreement. Those negotiations started in 2000.

In the economic dimension, the EU is rightly considered as one of the most important resources for the social and economic development of my country. The EU provided significant support to Latvia’s infrastructure and economy through its structural funds, the Cohesion Fund and the Common Agricultural Policy. For example, in the financial framework for 2007 to 2013, Latvia received €4.5 billion through the acquisition of EU funds and €1.8 billion more under the CAP. I remind members that the annual GDP figure in Latvia for the year 2010 was just €22 billion. That means that almost 5% of our GDP was drawn from EU structural policies.

The accession to the EU made Latvia part of the Single Market. I remind members that the reorientation of foreign trade was a major task of my government back in the 1990s when Latvia sought to reduce its dependence on the Eurasian markets. At present, in 2013, a total of 70% of Latvia’s exports and 77% of its imports come from the EU. Needless to say, Latvia has adopted all the relevant quality and safety standards and norms that facilitate our co-operation with EU partners and also our trade with third countries.

Membership of the EU opened therefore the introduction of the single currency. The economic and financial crisis of 2008 and 2009 delayed Latvia’s accession to the eurozone by several years but at present all the criteria have been fulfilled and Latvia is about to introduce the euro on 1 January 2014, thus obtaining an even more favourable environment for investment and trade.

On the societal impact, individuals and society as a whole have greatly benefitted from Latvia’s membership. The major issues are improved standards of environmental protection, access to education and health services in all EU member states, EU support for youth and the integration of society in Latvia. Many Latvians made use of the opportunities offered by the free movement of individuals and labour force in the EU. Almost 300,000 people out of a total population of 2.2 million have travelled abroad to work or study. A total of 50,000 Latvians have come to Ireland for shorter or longer stays. The current number of Latvians residing in Ireland is approximately 25,000. My compatriots contribute to the local economy and also benefit from the Irish social system in full accordance with existing legislation.

A separate but no less important issue is the beneficial effect of membership on the development of the Latvian language and culture. Today, the Latvian language functions as a fully fledged official language of the EU. The population of Latvia profits from cultural exchanges with other European nations.

Next, I will deal with the political impact. In 2004, Latvia became a full participant in the EU decision-making process, significantly amplifying its political influence on internal and external policies of the Union and the functioning of European institutions. The new situation changed the horizon of domestic policy-making. Before the accession, Latvia was much less concerned with such global challenges as climate change, safety of energy supply, global competitiveness, migration, international terrorism and other such issues. After 2004, Latvia had put itself into a much wider international context, addressing many issues and challenges. Participation in the common foreign and security policy and the European scrutiny and defence policy was a major aspect of that process. A small nation could not conduct intensive political and economic relations with all the countries of the world on its own. Now, according to the provisions of the Lisbon treaty, the European External Action Service and the European Commission provide us with much broader outreach.

Having touched on external relations I wish to add a few words on security. We cannot overlook the security dimension. While recognising the fact that the EU is by no means a defence alliance, my country highly values the solidarity clause enshrined in Article 222 of the Lisbon treaty. That also provides us with a perspective for the future and there are many issues on which to work. I will conclude my presentation and I am ready to answer any questions.