News

A Presidency of the EU Council, what’s in for Lithuania? How strong is Lithuanian economy and why? What did EU membership bring to Lithuanian people? With this and more, Maxline talks to Tomas Gulbinas, an experienced Lithuanian diplomat, serving as a Director of the European Affairs Department in the Ministry of Foreign Affairs of the Republic of Lithuania.

Mr. Gulbinas, the Lithuanian Presidency in the Union — is this rather a challenge or an opportunity?

Holding the Presidency of the EU Council for six months is a duty prescribed by the Treaty on European Union and every member state has to assume it on the basis of equal rotation.

At the same time, the Presidency is an honour due to the huge responsibility entrusted to the presiding member state. Lithuania with a population of 3 million is now leading the entire EU with a population of half a billion. The difference of scale is striking. So  it is indeed a challenging task. And, of course, holding its first Presidency is a historic milestone for any member state.

Our Presidency comes at difficult economic times and at the end of the EU political cycle, which means a heavier legislative agenda than usual. In addition to the usual agenda, the Lithuanian Presidency comes also at the end of the budgetary cycle, when the EU has to agree on legal acts to implement the next Multiannual Financial Framework, covering the period from 2014 to 2020. It requires intense effort from our side, and very close cooperation between Member States, the Commission and the European Parliament.

The Presidency of the EU Council also presents various opportunities for my country. First of all, this is an opportunity for our citizens to feel ’in the driving seat’ of the European Union. Secondly, it is an opportunity for Lithuania to make a tangible, distinctive and highly visible contribution to the EU project. For half a year we will lead European efforts in such important areas as implementation of economic and financial reforms, energy issues, and bringing Ukraine and other Eastern Partners closer to the EU.

I should also mention that the Presidency gives us a better platform for presenting Lithuanian culture, history, tourism opportunities(we expect up to 30.000 guests in Lithuania due to the Presidency) and other achievements. This is also an opportunity to strengthen our diplomatic and civil service capacities, as well as an important opportunity for business.

What are the bonuses or mechanisms of influence which go together with the Presidency status?

The Presidency ensures continuity and smooth operation of the Council, and represents the Council in the inter-institutional cooperation with the European Parliament and the Commission, including the responsibility for conducting ‘trialogues’ with the European Parliament. It also acts as a supporting pillar to the permanent President of the European Council and High Representative for Foreign Affairs and Security Policy. The Presidency is responsible for coordinating the activities of the numerous working groups, where compromises are drafted and majority of the agreements are done.

To sum up, during the six-month Presidency, around 3400 various formal and informal meetings are organized, out of which around 200 take place in the country that holds the Presidency. The responsibility of the Presidency isthat while presiding over meetings it shall not think about national interests, but rather listen to all the opinions first, and then try to arrive at a compromise. The EU is a unique organization where solidarity and consensus play a key role, and where each opinion, even of the smallest state, matters.

During my short but pleasurable stay in your country, I acquired an impression that Lithuania’s economy looks strong. What is its foundation? Say, many new members blame the EU for ‘de-industrialization’ — has your country experienced any of it?

We are very glad that you have such a good impression about our country’s economy.

Indeed, after the economic shock in 2009/10, Lithuania has once again emerged as one of the most dynamic economies in the European Union. Facing the negative impact of the global economic environment, Lithuania has undergone significant financial and economic adjustments, and proved its ability to increase its global competitiveness.

It is ranked second in the EU in terms of national GDP growth (during 2012, compared to the previous year, this increased by 3.6 per cent) as well as the increase of export volumes (in 2012, these increased by 14.5 per cent), reveals Lithuania’s ability to consolidate constant economic growth. The continuing high growth of GDP during the second quarter of 2013, when it reached 3.7 per cent, only confirms this trend. The latest tendencies of decreasing unemployment, low inflation and gradual increase of wages arestimulating domestic demand, which is becoming another engine of Lithuania’s economy.

Lithuanian industry has been the backbone of the Lithuanian economy and it forms about 25 per cent of our country’s GDP. Lithuania is also an open free market economy and our economic development is greatly dependent on exporting industries – chemicals, plastics, furniture, metalwork, textiles and food. Nowadays the service sectors – logistics and transportation – are making a significant contribution.

Let us add that ITC, electronics, laser and the life sciences sectors, though not yet big contributors to GDP,are playing an ever-increasing role, and their contribution to the development of modern Lithuania cannot be overestimated. So, the main goal is to promote and give all possible support to different components of the country’s economy, establishing a viable balance between them. Being a part of the EU plays a positive role in that respect.

Taking all internal and external factors into account, we expect that in the near future and beyond, Lithuania’s economy will remain on the positive development track.

As the Presidency, we will strive to further increase the competitiveness of European industry. The priorities in these areas are the opening of new export markets by negotiating free trade agreements with third countries, including with the Eastern partners, and also agreeing on a action plan for more competitive European industry.

Is there any ‘reload’ in Lithuania-Russia relations and, if any, to what end it may actually develop?

The Lithuanian and Russian Foreign ministers have agreed to intensify cooperation between both countries. In order to maintain constructive bilateral relations, dialogue should continue on all levels: from expert level to the top officials. Our Foreign Ministers have already met twice this year, and a meeting of the two Prime Ministers has taken place as well. Every meeting helps to gain a better understanding of the other side, even though problematic issues have not disappeared.

We hope that this will establish common ground to start working on issues on which we can agree, and then move to more complicated topics. Without any doubt, bilateral relations always depend on the attitude of both countries, and it is very important for us that this attitude is based on mutual respect. Only strong relations, built on the basis of mutual respect, openness and reciprocity, can develop into equal partnership and mutually beneficial cooperation.

Are Baltic nations a visible entity on the Union level, otherwise, do they cooperate to achieve mutual goals, or rather compete with one another?

There is a great tradition of holding regular meetings of the Presidents of the Baltic States. The Prime Ministers meet in the Baltic Council of Ministers, and the Speakers of the Parliaments in the Baltic Assembly. Many other formal and informal meetings at different levels are held as well.

Common or coordinated actions of the three countries enhance the efficiency of their activities in the institutions of the EU as well as inforeign policy, and also reinforce their competitive place on the global stage. The implementation of big infrastructure projects, the protection of the environment, the developmentof a joint transnational innovation programme, and our common interests on foreign policy issues would not be possible without close cooperation of all three Baltic states.

Therefore regional cooperation is one of the cornerstones of the Baltic States‘ foreign policy, and the significant positive experience of trilateral cooperation has been steadily built up over the last decades.

So to answer the question directly, I would say that the Baltic States are more cooperative than rivals, and this cooperation lets us to solve various issues that allow us to work together to progress even further.

To what extent Lithuania is a player in Europe’s energy sector, as long as dynamic change is registered in the way Europe plans its energy security today?

There are many changes underway in the energy landscape of the EU. Just to name a few, for the first time in the history of the EU, the Treaty of Lisbon has a provision on energy policy; the EU has set an objective to establish the internal energy market by 2014, and there is a commitment to eliminate the energy isolation of certain Member States by 2015.

These goals are in line with what Lithuania has been advocating for a long time. First of all, because the internal energy market and a better-coordinated external EU energy policy bring extra benefits for European citizens and the European economy. Secondly, as “an energy island”, Lithuania views these two goals as being crucial to our national security interests.

Today, having assumed the Presidency of the Council of the EU, Lithuania has once again put a priority on energy issues. Lithuania is leading efforts bythe Commission and Member States to strengthen the implementation of thestrategy to establish the internal energy market by 2014. Lithuania is also seeking progress in strengthening the external dimension of EU energy policy, giving special attention to nuclear safety issues in the EU’s neighborhood.

Ukraine is discussing European choice with heated emotion. Could you briefly explain what has association and then membership brought to Lithuanian people?

The understanding that historically and culturally Lithuania belongs to Europe, and that we share the same values of democracy, freedom of speech, human rights, the rule of law and solidarity, helped us to remain focused on our efforts to integrate with Europe.

Another key factor for our success in European integration was the awareness that we implement reforms not for Brussels, but for the benefit of our own people. European integration mobilized us to implement legal reforms, as well as reforms in all sectors of the economy, including raising the standards of consumer protection and social security. European integration became a process where all major political parties, civil servants, businesses and wider society joined in a common effort to achieve the goal that united Lithuania –a membership perspective for the EU.

Reforms did cause some difficulties, but in the long run they brought much more benefits. Today all citizens of Lithuania can live, work and study wherever in the EU they prefer, and setting up a business has become a relatively easy task anywhere in Europe. We fully share the benefits of being part of the Single Market: our businesses can export their products or services freely to a market of half a billion people. Participation in the EU internal market adds around 2 percent GDP growth every year.

Some prices for everyday services have dramatically decreased. For instance, thanks to a single European market, prices of mobile calls have dropped by nearly 70%. As a matter of fact, Lithuania enjoys the lowest call rates in the EU. In addition, membership of the EU is a quality catalyst for national economies. Trade barrier elimination has made a significant contribution to Lithuanian GDP growth.In addition, pay-outs from the EU Structural Funds and other European financial assistance programmes have also been making a great boost to our economy and welfare.

Can you predict the EU nearest future — will it get more ‘federal’, or progress is stalled by eurosceptics and ‘southern populism’?

Lithuania’s vision is a strong, integrated, competitive and efficient Europe. The need for these qualities for Europe is even more visible in the aftermath of the global economic crisis. The main efforts right now are concentrated on fighting the consequences of the economic and financial crisis. We can already see results, as the European economy is recovering.

This is due to a common European response and the effect of close cooperation and solidarity among the Member States and the European institutions.

Indeed, during the search for better solutions to overcome the crisis, there were voices that supported a move towards federalism and greater integration. Others at the same time argued that treaty change would be necessary in this case.

On the other hand, Eurosceptic voices were also heard during those difficult times. But this is the essence of the democratic nature of the European Union where all can voice their concerns and reasoned opinions.

Today we are at a point where it is too early to draw any conclusions on the future of the EU. But I believe that the European Union will make well-measured decisions that will best correspond to the interest and benefit of our citizens. The European election in May 2014 will be a very important landmark in this respect.

See the original text here.

Source: http://mmaxline.wordpress.com