Editor's note

Almost all countries around the Baltic Sea are the members of the European Union, except Norway and Russia; with the former, the EU has had a number of longstanding cooperative agreements, with the latter a sort of “partnership relations” during the last two decades.

The political and diplomatic approaches to the countries in the Baltic Sea region are still divided into “Nordic” and “Baltic”, which according to the region’s foreign ministers is a detrimental factor in making “broad politic cooperation”, the conference’s press-release underlined.

Danish Foreign Minister, Lene Espersen, added that the new “regional order” is becoming an urgent necessity for the Nordic-Baltic countries in order to defend their common interests: both within the EU and outside world. Hence, the Danish minister mentioned, among other things, the following priorities: energy sector, polar research and relations with Russia.    

Economic models and regional interests

It is wellworth keeping in mind the existing different economic development models in the European Union. Among the main four recently mentioned in the Mario Monti’s report, commissioned by President J.M.Barroso, analysing the perspectives in the Union’s development until 2020 (Mario Monti Report, 7 May 2010, 107 pp), was the Nordic model. It is not only notable in its essence, but quite different from other models in Europe, as well. Thus, Germany’s economy model is closer to the Nordic one, being of a “social market economy” character, though the level of corporate taxation in the region is varied: from about 30 % in Germany to 15% in Latvia, with Denmark, Finland and Sweden within 25-27% range. However, the three Baltic States have not yet elaborated a specific economic model; it is difficult to see whether such a model/models would fit into the Nordic one.

In the accent to the export potentials, for example, export growth in Germany was a major factor in growing GDP. Thus, household appliances manufacturing (e.g. Miele Group) was growing at the rate of about 17,5% compared to the same period last year. The drive which can easily be supported by growing manufacturing facilities in Poland and the three Baltic States. The latter need just a political will to support and develop manufacturing sector oriented towards export potentials.     

New momentum

The whole spectrum of the European Union’s integration has had a new momentum after the Lisbon Treaty entered into force last December providing possibilities to numerous initiatives. One of them was the so-called enhanced cooperation or the possibility for extensive sub-regional cooperation in Europe. The latter materialized last year in the Baltic Sea Regional Strategy inaugurated with the assistance from the term of the Swedish presidency in the EU. 

In the efforts to analyse the Strategy, the Baltic Economic Forum on Economic Development in the Baltic States will take place in Riga, 23-24 September 2010. The Forum’s issues are definitely well balanced and important, e.g. Baltic Sea region’s strategy, financial issues, transport, knowledge & innovations and the EU single market in the Baltics (the latter is hardly a present day priority).

However, it has to be noted that some important components of the mentioned “export oriented economy” are definitely missing in the Forum’s preliminary program; however, the changes are not so difficult to incorporate. 

Political leaders seem able to confront critically challenging economic features in the region. It is seen, for example, that the Baltic Sea region’s foreign ministers added some important and urgent aspects into the regional cooperation.

Good intentions, as is known, are half-way to success and, no doubt, the cooperation in the region is going to have a positive turn.