The Baltic Sea Region The region offers unique scope for c ooperation :

Cooperation on Economic, Energy and Labour Market Policyin the Baltic Sea RegionFranz Thönnes, Member of the German BundestagMember of the Standing Committee, Baltic Sea Parliamentary Conference

Friedrich Ebert StiftungRiga, 5 October 2012

The Baltic Sea connects all these nations

Hanseatic era 12th - 17th centuries

Intense maritime traffic and trade

Approx. 150 million people(8 EU countries)

Labour force of 67 million(without R)

30.9 % of the total EU labour force

Over 100 universities and institutions of higher education

Over 25 % of Europe’s economic strength

1/3 of all European exports

The Baltic Sea RegionThe region offers unique scope for cooperation:

25 Oct. 2012

• Denmark* Germany*

Estonia*

Finland*

Iceland

Latvia*

The Baltic Sea RegionMembers of the Council of Baltic Sea States

35 Oct. 2012

Lithuania*

Norway

Poland*

Russia

Sweden

European

Commission

* EU member states

Global Competition – Challenges(PPP – Purchasing power parity)

BSR GDP approx. US $ 4,000 billion

EU GDP US $ 15,821 billion

USA GDP US $ 15,094 billion

China GDP US $ 11,300 billion

India GDP US $ 4,458 billion

Japan GDP US $ 4,400 billion

Germany GDP US $ 3,099 billion

Russia GDP US $ 2,383 billion

Brazil GDP US $ 2,294 billion

GB GDP US $ 2,261 billion France GDP US $ 2,218 billion

The Baltic Sea RegionEconomic Cooperation – Challenges

45 Oct. 2012

• GDP Latvia approx. €20 billion• Exports (1. RUS, 2. LIT, 3. EST, 4. G) 2011 +30 % - Chemical and petroleum products, foodstuffs and machines

• Imports (1. LIT, 2. G) 2011 +30 %- Wood products, foodstuffs, chemical products and machines

• Volume of trade with G (1. LIT, 2. RUS, 3. G) 2011 €2.0 billion

• Imports from Germany 2011 €1.3 billion

• Exports to Germany 2011 €0.67 billion

• German companies in Latvia 1,000

The Baltic Sea Region Economic Cooperation between Germany and Latvia

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Economic Unions

Baltic Sea Forum – Pro Baltica (BSF, 1992) Baltic Sea Chambers of Commerce Association (BCCA, 1992) Visions and Strategies around the Baltic Sea (VASAB, 1992)

Baltic University Programme (BUP) Baltic Development Forum (BDF, 1999)

Baltic Sea Trade Union Network (BASTUN, 1999) Hanseatic Parliament – Association

of chambers of crafts, commerce and industry (2004)

The Baltic Sea Region Economic Cooperation

65 Oct. 2012

Demographic Challenges

Population aged 15 – 44 years by 2030

Sweden + 1,4 % Estonia ./. 17.9 %

Denmark ./. 0.6 % Lithuania ./. 23.2 %

Finland ./. 4.1 % Russia ./. 22.6% Germany ./. 15.6 % Latvia ./. 24.3 %

Poland ./. 22.1 % EU 27 + 6.1 %

The Baltic Sea Region Economic Cooperation – Challenges

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Latvia

• Service sector’s share of Latvia’s economy 74 %• Many Latvians work abroad – Brain Drain• Shortage of qualified labour• Youth unemployment at 30 %• 35 % of population of different ethic origin• Population 2000 – 2011 ./. 300,000 to 2 million• Lowest birth rate in the EU (1.17 births per woman)

Economic Cooperation – Challenges85 Oct. 2012

Goals of BSS

Promoting balanced economic development and increasing prosperity / Improving cooperation with neighbouring states in the former Soviet Union (new action plan within the BSS)

Developing the Baltic Sea region into an ecologically sustainable region Improving environmental protection in the region (Baltic 21 network – climate change, sustainable rural and urban development, consumption and production) Making the region more accessible and attractive

Promoting civil and maritime security

Transforming the BSR into a model region for clean shipping

Economic Cooperation – OpportunitiesEU Baltic Sea Strategy

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Economic Development and Increasing Prosperity Eliminating trade barriers Harnessing and boosting the region’s research and innovation potential Promoting entrepreneurship / Strengthening SMEs Promoting sustainable agriculture, forestry and fishing Improving access to energy markets; securing a reliable energy supply Promoting the attractiveness of the Baltic Sea region, primarily with

measures in the areas of education, youth work, tourism, culture and

healthImproving transportation links within the Baltic Sea region and with

other parts of Europe

Economic Cooperation – OpportunitiesEU Baltic Sea Strategy

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The Partnerships of the Northern Dimension

Northern Dimension Environmental Partnership (NDEP)

Partnership in Public Health and Social Well-being (NDPHS)

Partnership on Transportation and Logistics (NDPTL)

Northern Dimension Cultural Partnership (NDPC)

Economic Cooperation – OpportunitiesPolicies of the Northern Dimension

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• Sea freight volume + 60 % by 2030 (Currently 2,000 ships per day)

• Port infrastructure

• Model region for clean shipping / Clean Baltic Shipping

• Infrastructure (Fehmarn Belt, Rail Baltica – link between Warsaw, Kaunas, Riga and Tallinn, SEBA Modernisation

Partnership for the South Eastern Baltic Sea Area – CBSS project fund)

Economic Cooperation – Opportunities

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• (Green) tourism / Baltic Sea Tourism Forum

• Scientific cooperation

• WTO – Russian membership

• Environmental technologies

• Healthcare business (Medicon Valley)

• Design and creative industries

(Hamburg/Skåne, S, FI, DK)

• Using EU Strategy for the Baltic Sea Region

Economic Cooperation Opportunities

135 Oct. 2012

European Union’s climate goals for 2020 20% reduction in greenhouse gases, 20% increase in renewable energies, 20% increase in energy efficiency

CBSS 2010 Vilnius Declaration Integrated energy markets by 2020

CBSS Declaration on Energy Security, Plön 2012

Decisions on energy cooperation by energy ministers in the Baltic Sea region, Berlin 2012(Increasing supply security, energy efficiency

and the use of renewable energies)

CBSS summit in Stralsund, 31 May 2012Welcomed declaration by foreign ministers / closer cooperation

on energy policy issues with special focus on supply security

The Baltic Sea Region. Current Cooperation in the Energy Sector

145 Oct. 2012

Nuclear energy in the BSR

Germany is implementing nuclear phase-out – switch to renewables

Finland is planning a fifth nuclear power station

Russia – further development, e.g. Kaliningrad

Lithuania is building Ignalina III

Sweden has five nuclear power stations

Poland is planning to build three nuclear power stations

The Baltic Sea RegionCurrent Cooperation in the Energy Sector

155 Oct. 2012

BASREC Baltic Sea Region Energy Cooperation

Finances feasibility studies and symposiums

Developing wind energy

Developing carbon capture and storage (CCS)

General energy policy strategy up until 2020

Connecting the Baltic Sea region to European energy markets


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Baltic Energy Market

Interconnection Plan (BEMIP) for el. and gas

Nordic Gridmaster Plan – P, LIT, D and northern Europe Transmission line between S and LV (NordBalt) Transmission line between EST and FI (EstLink-1) Offshore wind energy project DK, P, S (Kriegers Flak) and FI Power links between Germany and Poland Liquefied natural gas terminal in Świnoujście, Poland


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Energy policy cooperation

EU +/or 3 EST/LIT/LV + 3 DK/S/Fi + 2 D/P (+ COM) EU Strategy for the Baltic Sea Region BEMIP Action plan for energy supply security

Council of Baltic Sea States BASREC and BALTIC 21

Russia EU-Russian dialogue on energy policy Northern Dimension (environmental partnership)


185 Oct. 2012

Further cooperation projects

Poland and the Baltic states are building Visaginas nuclear power station in Lithuania Gas supply relationships between G and RUS (North Stream and N, S and DK, DK and RUS, POL and RUS and N, G and POL also imports oil from Russia Nordel – a cooperation body between the transmission system operators in Finland, Sweden, Norway, Denmark and Iceland The united Nordic electricity group, Nord Pool


195 Oct. 2012

The region is an important transit area for the trans-

port of Russian fuels to central and western Europe Estonia, Latvia and Lithuania depend unilaterally on

Russia for energy Involving Russia in regional energy cooperation

projects Nuclear plant safety Cross-border maritime spatial planning in the Baltic

Sea region (BaltSeaPlan) aimed at developing the use

of offshore wind energy

The Baltic Sea Region - Cooperation in the Energy Sector:Challenges

205 Oct. 2012

Development of renewable energies – current use(as part of total energy consumption in 2008)

Estonia 11% Poland 6%

Denmark 18% Finland 26%

Sweden 32% Lithuania 9%

Latvia 32% Germany 9%

Russia is planning to increase the energy efficiency in industry by 40% by 2020. It will install wind turbines with a power of 5,000 MW by 2020.

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The Baltic Sea Region - Cooperation in the Energy Sector: Challenges

New impulses for growth – wind energy

By 2020: Construction of 29 wind farms in the BSR /

11,000 MW = 25 times more electricity than in 2010

(including Russia with 5,000 MW of wind turbines)

By 2030: 25 additional wind farms in the BSR

Increasing to a total of 25,000 MW

225 Oct. 2012

The Baltic Sea Region - Cooperation in the Energy Sector: Opportunities

Submarine cable between G and N from 2014 Cooperation on nuclear plant safety Cooperation and

on the dismantling of nuclear power plants Bioenergy use – bioenergy promotion project Energy policy partnership in the Northern

Dimension? Energy agency for the eastern Baltic Sea region?

The Baltic Sea Region - Cooperation in the Energy Sector: Opportunities

235 Oct. 2012

The Baltic Sea RegionCooperation on the Labour Market - Challenges

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Labour Markets in the Baltic Sea Region

Labour market integration is more and more important for the BSR.• Free movement of workers• Youth unemployment • Ageing populations and pressures on pension systems, • Unemployment, Youth Unemployment• Shortages of labour supply • Risks of poverty and social exclusion

But labour markets in the region differ among others in terms of labour law and regulations, labour market institutions, welfare policies, pension policies, the role of social partners and lastly active and passive labour market policies

Different Growth Perspectives (2010)

Finland, Germany + 2 %Baltic States more than + 3 %Poland + 3,7 % Russian Federation + 4,3 %

Unemployment

Unemployment rate between 7,0 – 17 %Youth unemployment rate between 7,9 – 30 %Youth unemployment rate Germany 1Q 2012 8,0 %Youth unemployment rate Latvia 1Q 2012 28,1 %


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Commuting - EURES – Border regions in the European Union


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Commuters in the Baltic Sea region (estimated app. 130.000)

Denmark/Sweden 2,000 Sweden/Denmark 18,000

Norway/Denmark 600 Denmark/Norway 2,500

Sweden/Finland 2,400 Finland/Sweden 3,800

Germany/Denmark 9,800 Denmark/ Germany 1,000

Norway/Finland 200 Finland/Norway 1,000

Norway/Sweden 1,900 Sweden/Norway 15,900

Estonia/Latvia 500 Latvia/Estonia 1,000

Lithuania/Latvia 500 Latvia/Lithuania 1,000

Germany/Poland 460 Poland/Germany 1,940

Estonia/Finland 20,000 Finland/Estonia 1,250

Åland/ other regions – 4,000 Russia/Finland 9,000

mostly SWE/FI


275 Oct. 2012

Labour market-related organisations

Council of Nordic Trade Unions (NFS 1972) Baltic Sea Forum – Pro Baltica (BSF, 1992)

Baltic Sea Chambers of Commerce Association (BCCA, 1992) Baltic Development Forum (BDF, 1999)

Baltic Sea Trade Union Parliament (BASTUN, 1999) Hanseatic Parliament (2004)

Baltic Sea Labour Forum (2011)

The Baltic Sea RegionCurrent Cooperation on the Labour Market

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EU-Baltic-Sea-Strategy-Flagship-Project

Baltic Sea Labour Network 2008 – 2011Motivation

Working together through labour market issues is extre- mely important since this dynamic region could be developed into one of the most competitive regions in Europe.

The long-term existing trade relations have been consi- derably reinforced over the last few years which is also underlined by the increasing demand for skilled labour.


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At the same time the Baltic Sea States are facing some major challenges such as the current demographic de- velopement which is affecting the decrease in labour force.

Besides this, the increasing labour mobility - especially commuters in the border regions - calls for new strategies and even more importantly, for detailed information about the respective labour and vocational training markets.


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Result: Project BSLN 2008 - 2011

22 partners in 8 countries 2,7 million Euros, part-financed by the BSR programme

Motivation: High mobility rate in the BSR, missing structures and solutions, tripartite approach

Results: Tripartite permanent network, studies to working conditions, pilot projects to social dialogue, tripartite statements / recommendations to the current labour market situation and organized events among social and political partners


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Social dialogue in the BSR Social partners are the experts in labour market policy;

therefore they should be heard

Models of SD differ at national level within the region

In the new member states low trade union and employer organisation density

Working together is supportive and new strategies can be developed


335.10.2012

Social dialogue in the BSR by BSLN activities in the SEBA Lithuania: Social dialogue centre to provide special educational seminars for young people

Latvia: Development and strengthening the social dialogue by organising forums in different regions for municipalities, trade unions, employers and experts

Estonia: Training of future leaders of social partners, inclusion in promotion of social partnership at workplace, sectoral and national levels

Poland: Training- and Cross-Border-Information-Center


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Forum members are 22 trade union confederations, employer organisations incl. Russia and governmental political institutions in the BSR

• The activities and topics are agreed in a tripartite Steering Committee• A forum secretariat is established in the CBSS Secretariat • Establishment and first round table at the BSLN final conference on 15 November 2011, 2nd round table in November 2012

Finally: Establishment of Baltic Sea Labour Forum in 2011 suported by the CBSS, BSPC and EU

BSLF - platform for social dialogue:

The Baltic Sea RegionCurrent Cooperation on the Labour Market - Chances

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jointly identified problems and challenges, issues like:

- labour mobility- growth- competitiveness- education and training- high employment rates

The Baltic Sea RegionCurrent Cooperation on the Labour Market - Chances

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BSLF core objectives:

• finding joint solutions to commonly identified challenges• influencing policy- and decision-making in the field of labour market policies by joint opinions or recommendations• promoting transnational social dialogue, based on responsibility of social partners for the development of labour market policies in the Baltic Sea Region• networking and exchange of experience between the social partners and political institutions in the Baltic Sea Region

Topics 2012 – 2013


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Mobility of labour• Working conditions• Cross border mobility

Youth unemployment*

•Youth Guarantee decided by the Baltic •Sea Parliamentary Conference 2012

The Baltic Sea RegionRecommondations for better political cooperation

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Recommondations for better cooperation of Social Democrats in the Baltic Sea Region

including Socialdemocrats from Russia:

establishing a Baltic Sea Socialdemocratic Internet- Platform a yearly conference of Baltic Sea Social Democrats Seminars with participitans of Left Parties and Trade Unions Better cooperation among SD and Trade Unions Prepapring Baltic Sea relevant conferences by SD-Meetings Common sommer camps for young SD and Socialist

THANK YOU FOR YOUR ATTENTION!

Cooperation in the Baltic Sea Region5.10.2012 39

The Baltic Sea Region The region offers unique scope for c ooperation :

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