Second meeting of the Association Council between the EU and Latvia
Joint Press Release
Luxembourg, 22 February 1999
1. The EU Latvia Association Council held its second meeting at Ministerial level on Monday 22 February 1999, chaired by Mr. Valdis BIRKAVS, Foreign Minister of Latvia and Head of the Latvian delegation. The EU delegation was headed by Dr. Hans-Friedrich VON PLOETZ, State Secretary for Foreign Affairs of Germany. The European Commission was represented by Commissioner Mr. Hans VAN DEN BROEK.
Fulfilling its central role in EU-Latvia relations, the Association Council reviewed Latvia's progress in preparation towards accession to the Union and the development of bilateral relations under the Europe Agreement. It also exchanged views on international issues of common interest.
2. The Association Council noted that since the entry into force of the Europe Agreement on 1 February 1998, pre-accession activities have intensified. The accession process, based on Article O of the Treaty on European Union, which was formally launched on 30 March 1998 for ten Central and East European States and Cyprus, forms a comprehensive, inclusive and on-going process. Each of the applicant states proceeds at its own rate, depending on its degree of preparedness.
Against this background, the meeting of the Association Council provided a timely opportunity to review Latvia's progress in the pre-accession strategy. The basic framework is set out in each Accession Partnership adopted in March 1998. From its side, Latvia drew up its National Programme for Integration into the European Union, which describes the actions needed to reach the objectives set out in the Accession Partnership.
Latvia's pre-accession performance was assessed by the Commission in autumn 1998 in its first Regular Report. The Vienna European Council welcomed the progress achieved as described in this Report and took note of the Commission's intention to propose the opening of the negotiations, before the end of 1999, if the momentum of change is maintained.
In this context, the Association Council noted that major progress has been made in dealing with the weaknesses identified in the Opinion and Accession Partnership priorities, in particular as concerns the amendments to the citizenship law which were confirmed by referendum in October 1998. The Association Council welcomed this farsighted decision which constitutes an important step towards further integration of all inhabitants of Latvia. It noted the steps taken by the Latvian Government to ensure implementation of the amended law in full accordance with the respective OSCE recommendations ; this will increase the possibility for non-citizens, including stateless children, to acquire citizenship and become fully integrated members of Latvian society. The Association Council recalled the great importance it attaches to the integration of all components of society and agreed that this is an area which needs continued attention.
The Association Council welcomed the favorable developments in Latvia, in particular, in the macroeconomic field, in foreign direct investments and in privatisation. It also welcomed Latvia's progress in establishing the legal framework and the institutions required in a market economy. It agreed that Latvia should now give priority to the consolidation of economic stability, through policies aimed at reducing existing imbalances, and to the elimination of the remaining gaps in the regulatory and supervisory framework. The Association Council looked forward to furher improvements of the legal environment for enterprises and to the completion of the remaining privatisations. The Association Council underlined important steps Latvia took towards strengthening its public administration, recognising the importance of setting up and developing enforcement capacity in areas such as standards and certification and state aids. Further efforts are also needed to clarify responsibilities in the fields of environment and regional development.
Looking forward to furthering pre-accession work, the Association Council was informed that the Accession Partnership will be revised in the coming months and that the Latvian authorities are currently revising their National Programme. It noted that the completion of the multilateral phase of the analytical examination of the "acquis" ("screening") and the imminent passage to its bilateral phase will confer new dynamism to the process and thus speed up preparations for negotiations.
3. Concerning the development of bilateral relations in the framework of the Europe Agreement, the Association Council noted with satisfaction that, after one year of functioning of the Europe Agreement, the Association mechanisms have reached their cruising speed and allow for a fruitful co-operation between Latvia and the European Union.
The Association Council welcomed the on-going development of bilateral trade relations and noted that no significant trade problems have occurred so far. The EU is now Latvia's major trade partner, absorbing 59% of Latvia's exports and counting for over half its imports. The Association Council supported the principle of negotiations on mutual concessions in agricultural products with a view to furthering liberalisation and improving market access for both parties, thus preparing the unification of the market at the time of Latvia's accession to the Union.
This process of on-going and increasing integration, together with the present macro-economic and structural reforms, has allowed for a considerable limitation of the negative effects from instability in the international financial markets.
The Association Council welcomed Latvia's accession to the WTO. Concerning the external economic relations in general, the EU side recalled that full compatibility with the commitments that Latvia will have to take on in view of EU membership should be ensured.
The Association Council was encouraged by the progress made in the negotiation of the Protocol on European Conformity Assessment (PECA). A successful conclusion of these negotiations will result in an increased level of alignment in the standards and certification area and will contribute to the removal of existing barriers to trade.
The Association Council stressed the importance of continuing co-operation in the field of state aid with a view to ensure full alignment and enforcement of the "acquis".
The Association Council underlined the importance of Latvia's participation to Community programmes, an important element of the pre-accession strategy as it also enables the Latvia administration to experience in practical work in Union bodies. In this context, the Association Council noted that several decisions establishing the modalities for Latvian participation in certain Community programmes have been taken or are under examination. The EU side recalled in that context that participation in the MEDIA II programme is conditional on a sufficient degree of alignment with the audio-visual "acquis".
The Association Council welcomed the Union's financial contribution to the development of the Latvian economy. European Investment Bank lending since 1994 has reached a total of ECU 95 million. The Association Council noted that the accession-driven focus of PHARE will ensure that assistance is targeted on pre-accession investment priorities.
4. The Ministers had a fruitful debate on international issues of common interest. They noted with satisfaction that co-operation in the context of foreign and security policy between the EU and the associated countries continued to develop.
The Association Council emphasised the importance of regional co-operation as a means of fostering stability and good neighbourly relations. It welcomed the constructive role Latvia plays in this area, in particular in the context of the Council of Baltic Sea States.
5. In conclusion, the Association Council expressed its confidence in the development of the relations within the Europe Agreement and emphasised the crucial role it is further called on to play in preparing Latvia for accession to the Union.
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