Statement by Mr. Pekka Huhtaniemi, Under-Secretary of State, Finnish EU Presidency, at the signing ceremony of the modernized CEFTA
Bucharest, Romania, 19 December 2006
Your Excellencies, ladies and gentlemen,
It is my pleasure to greet you on behalf of the Finnish EU Presidency on this happy occasion.
Recalling the European Council conclusions on 15 December, 2006, the European Union warmly welcomes the signing of the enlarged and amended CEFTA. This inclusive Regional Free Trade Agreement is a substantial step forwards both economically and politically. The Stability Pact for South-Eastern Europe has to be commended for its supporting work as well as the European Commission. We look forward to a swift ratification of the new CEFTA next year, and we note great satisfaction that the agreement is going to be regionally inclusive.
We appreciate the role of Romania as the chair of CEFTA in the negotiations of the new agreement and thank our hosts for this signing ceremony.
I would first like to congratulate Romania and Bulgaria for their accession in the European Union in the beginning of the New Year. We are happy to welcome two new member states.
The European Union has repeatedly confirmed a European perspective also for the Western Balkan countries and strongly encourages acceleration of reform processes. The European Union has actively promoted regional free trade in South-East Europe - not only because free trade fosters economic development and prosperity in this region, but also because it is a step towards European integration.
With Moldova, a signatory of this new agreement, the European Union is developing relations on the basis of the European Union Neighbourhood Policy - towards stronger economic and political cooperation.
Good neighbourly relations and regional cooperation in South-East Europe is a part of the conditionality of the Stabilisation and Association Process. We hope that the growing regional trade will also contribute to other forms of regional cooperation. The creation of the regional free trade area is also a symbolic step of the Western Balkan countries on the same road that the earlier CEFTA members took before - a step towards a future European wide free market.
Another important step was taken in the beginning of July this year as the Energy Community between the EU and the South-East Europe entered into force. A lot of effort is needed to implement the Energy Community and to create an integrated energy market, but this is necessary in order to improve conditions for industry and to attract urgently needed investments - and thus boost economic development.
Free trade of goods and services will encounter practical obstacles in the beginning. New legislation will be needed. Old perceptions and old practices have to be replaced by new ones. But let me assure you that creating a functioning and inclusive regional free trade area will help your countries to adjust to the European wide competition and advance your European integration process.
I would like to mention one more thing which I believe will be beneficial also to businesses and economic growth - facilitating people-to-people contacts. The Presidency is happy that the visa-facilitation negotiations have now been opened with all the Western Balkan countries for which goal the Presidency worked hard during past months.
The Presidency wishes every success to the new regional free trade area. You can trust on the European Union's continuous support to South-East Europe and to your reform processes.
Thank you.