Speech by Foreign Minister Kanerva at STETE Seminar on Ukraine's European Perspective

Finland, the EU and Ukraine
Speech by Foreign Minister Ilkka Kanerva at STETE Seminar on Ukraine's European Perspective, 8 November 2007, Helsinki

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Good morning or dobroho ranku (as they say in Ukrainian),
Dear participants in the seminar, ladies and gentlemen,

Thank you for the kind invitation to open this seminar on Ukraine's European perspective. I congratulate STETE for good timing in organising this event and I believe Ukraine's recent elections provide a good background for analysing the country's future.

After its enlargements in 2004 and 2007 the European Union gained several new neighbours in eastern Europe. Among them, Ukraine is of particular importance. It is an opportunity both for Finland and for the EU.

There are good reasons for Ukraine's significant potential. One of them is the country's size in terms of both geography and population. Another is the possible huge impact that Ukraine's political and economic development may have. Ukraine has a chance to become a success story and a leading democratic example within the EU's Eastern Neighbourhood. So far this chance has been somewhat underutilized. But the opportunity is there. It needs to be used to the full extent.

Ukraine has showed that it is capable of organizing democratic elections. The criteria of free and fair elections have been met. Consolidation of certain democratic norms plus freedom of speech and of the media have been key achievements for which I commend Ukraine.

The point is that now we would like to see Ukraine progress beyond that. Democracy is not only about organizing meaningful elections. A functioning political system requires constitutional order. Ukraine needs a government with authority, a government that together with the president and parliament produces reforms that the country and its people need.

During Finland's EU Presidency, EU-Ukraine relations reached a new level. We agreed on an ambitious joint approach to the new Enhanced Agreement, and decided to begin negotiations. We also initialled the visa facilitation and readmission agreements. We were able to involve a wide circle of Ukrainians and to engage the EU Member States in a dialogue that clarified expectations and realities on both sides.

Some of you may know that Finnish-Ukrainian relations have a long history. As long ago as 1918, Finland established one of its first diplomatic missions in Kyiv, the capital of freshly independent Ukraine. Today, our bilateral relations with Ukraine have become close and active. President Yushchenko paid an official visit to Finland last year. Prime Minister Vanhanen visited Ukraine in 2005. Presidents Halonen and Yushchenko have agreed to meet next time in Ukraine. I intend to visit Ukraine early next year in the capacity of the OSCE's Chairman-in-Office. The Nordic Forum for Security Policy that will be held in Kyiv next year is a prime example of intensified contacts between Finland and Ukraine.

I have noted with pleasure that trade between Finland and Ukraine is growing rapidly. Last year our exports to Ukraine grew by nearly 50 per cent. And the growth continues. Finnish companies' interest in Ukraine is also increasing fast. Some 60 to 70 Finnish companies are now active in the country. Continued growth of Ukraine's economy, including Ukraine's ability to attract foreign direct investments, depends primarily on improving the business climate. Strengthened rule of law, lower regulatory barriers and enhanced measures to root out corruption are necessary.

Ladies and Gentlemen,

Ukraine has clearly stated its aim to both adopt and apply European values and standards. This continuing orientation towards European integration has been expressed not only by President Yushchenko but by all of Ukraine's three major parties and their leaders. Ukraine's eventual objective is membership of the European Union.

Finland and the EU are fully committed to support the reform agenda of Ukraine. At this stage, the four most immediate goals that ought to be achieved in the near future are:

- Firstly, the EU and Ukraine are to conclude negotiations on a new Enhanced Agreement. This agreement will form a new and stronger basis for EU-Ukrainian relations.

- Secondly, the finalization of Ukraine's WTO accession is a priority for the EU. Joining the WTO will make Ukraine a more reliable and predictable partner for the entire international business community.

- And thirdly, once Ukraine's accession process to the WTO has been finalised, the EU and Ukraine will start negotiations on a 'comprehensive and deep' free trade area (also known as 'FTA plus').

All of these three goals are interrelated. The WTO accession is a precondition for starting negotiations on the free trade area; and the free trade area is part of the new Enhanced Agreement.

- A fourth, very important goal is to ratify the visa facilitation and readmission agreements between the EU and Ukraine as soon as possible. Visa facilitation will benefit the Ukrainian people by making travel to the Schengen area easier.

All these developments will bring Ukraine gradually closer to the European Union. They will also pave the way for Ukraine's further integration with Europe.

What about Ukraine's European perspective, or to be more precise, its chances of becoming an EU member state someday? According to article 49 of the Treaty on European Union, any European State may apply to become a member of the Union. There is no doubt about Ukraine's Europeanness both in terms of geography and general orientation. As far as Finland is concerned, Ukraine therefore clearly has a European perspective.

However, it is not so simple in real life. Firstly, a country that wishes to become a member needs to fulfil certain criteria set by the Union. And on the other hand, the Union itself needs to be ready. At present, these two conditions have not been met. However, once the EU has a new treaty basis and reformed institutions, the matter of Ukraine's potential EU Membership will largely depend on Ukraine itself. In the meantime, Ukraine should certainly improve its case by having a functioning political system that produces further reforms.

The European Neighbourhood Policy (ENP) is the comprehensive policy framework that the EU applies in relation to the region known as its Eastern Neighbourhood. We realise that Ukraine is not satisfied with the ENP and wants more. However, one has to bear in mind that at the practical level ENP is a country-specific policy. Every partner country is treated individually, depending on its needs, merits and readiness to cooperate with the EU. Every country moves ahead at its own speed. ENP does in no way prejudge further development of Ukraine's relations with the EU. ENP is a race of individual cars, not a single bus travelling too fast for someone and too slowly for someone else.

Here my message is: be ambitious and patient at the same time. Give the Neighbourhood Policy and the EU-Ukraine Action Plan a chance. Use the ENP and its financial instruments as a reform tool. You don't need to do this because of the EU - do it for your own benefit!

As always, my words today have been optimistic. There has been a clear and hopefully an irreversible development in Ukraine's democracy, media freedom and civil society. The economy is growing and becoming more international. All this is very good. But still a lot needs to be done. In the first place, Ukraine now needs to have a solid coalition government that can cooperate with the parliament and the president.

Ukraine's success is in the interest of both Ukraine's people and Ukraine's neighbours. EU-Ukraine relations will become deeper and more integrated as Ukraine makes genuine progress in carrying out reforms and adopting European standards. Ultimately, very much depends on Ukraine itself. I hope my optimism is justified - usually it has been.

Finally, I wish you a successful seminar on Ukraine's European perspective. Just remember that a perspective becomes a reality only when hard work is the catalyst.