Prime Minister Matti Vanhanen at the plenary session of the European Parliament on 25 October 2006

Outcome of the Lahti Summit Meeting.


Mr President, Honourable Members,

Last Friday, 20 October, I had the pleasure of hosting the informal meeting of EU Heads of State or Government in Lahti, and the working dinner that followed with the Russian President, Vladimir Putin.

Both the informal meeting and the working dinner proved very productive. These informal meetings of EU leaders are an excellent way of building political consensus, with a view to making progress on the main challenges that face the Union.

The informal meeting focused particularly on external energy relations. We also discussed immigration and the situation in Sudan/Darfur. A separate working session was devoted to ways of promoting innovation policy to guarantee the Union’s competitiveness and economic growth. Developing innovation policy is the main issue for the EU’s competitiveness and is crucial if we want good jobs to stay in Europe.

The open and thorough discussions during the working lunch enabled us to close ranks for the dinner, showing the doubts that had existed in certain quarters to be unfounded. The overall atmosphere over lunch was excellent and the solidarity among the Member States could definitely be felt. We attached a great deal of importance to speaking with one voice. I referred to this determined will to reach consensus as the “Lahti Spirit”.

Our dinner discussions with the Russian President, Vladimir Putin, were open and frank. In addition to energy issues, we also discussed key international issues and freedom of expression in Russia.

Mr President, Honourable Members,

The informal meeting of Heads of State or Government held a comprehensive and broad debate on energy. The tone of the debate was positive and, despite certain slight differences, also very coherent. Among the topics covered were: the principles for developing energy relations between the EU and Russia and implementation of those principles; the forging of closer relations with strategically important third countries; the curbing of climate change through energy policy; and more effective exchange of information through a network of energy correspondents.

With regard to energy relations, we agreed that there is a need for tighter cooperation between the EU and Russia. This cooperation should be based on the principles laid down in the Energy Charter and the G8 Declaration, in particular openness, market-based solutions and reciprocity. These principles should already be applied now and they should also be incorporated in a concrete form into the forthcoming EU-Russia Agreement. We outlined common policies for EU-Russia energy relations at Lahti.

There was a clear consensus that we should step up our efforts to forge closer relations with producer and transit countries in the Union’s neighbourhood by the end of the year. The goal is to extend the principles governing the internal market to cover as wide an area as possible in neighbouring regions.

Climate change was referred to in many addresses as the most important international challenge. The EU must, in particular, show leadership in the promotion of sustainable energy. As regards innovations and technologies that relate to energy efficiency, European companies have a lot to offer. We shared the view that issues relating to energy and climate should feature prominently at summits between the EU and third countries, as they have during Finland’s EU Presidency.

The securing of a reliable supply of energy requires considerable investments in transmission networks and other infrastructure. Therefore, cooperation with international financial institutions must be intensified in energy infrastructure projects. Energy security aspects should also be taken into account when the European Investment Bank, EIB is granting new lending mandates to third countries.

It is important for the Union to have comprehensive information on which to base its energy policy decisions and responses to external disturbances. We agreed in Lahti that we shall make every effort to ensure that the network of energy correspondents is established by the end of the year. Relevant details will be agreed upon at the Council. By collecting and analysing information, the network will promote cooperation between the EU Member States and institutions, and make for greater solidarity on energy issues.

EU leaders’ discussions on the external energy relations will provide background for the next spring European Council which is to adopt a prioritised Action Plan on Energy Policy for Europe.

Mr President, Honourable Members,

At the working session of the meeting of Heads of State or Government, we discussed how to move forwards on innovation policy. The main topics were intellectual property rights, particularly patents, cooperation between the private and public sectors, the European Institute of Technology and standards.

We agreed that the Union needs a clear strategy on intellectual property rights. The Competitiveness Council will provide the Commission with details of what it would like to see in the strategy on intellectual property rights. At Lahti, we stressed that the Commission proposal should look in particular at the quality of the intellectual property rights system. The Commission will present its proposal before the spring European Council.

One of the very strong messages from Lahti was that the European patent system must be made more cost-effective and more predictable. Litigation systems must also be developed. We need to move ahead quickly with this. Towards the end of the year, the Commission will issue a communication containing concrete proposals on the development of the European patent system. Equipped with the Commission proposal, the Council will look at various options. The issue of how to make the patent system more effective has been a difficult one for the Council but work on developing the system is essential to promote European innovation. I personally think that everyone must keep the common interest in mind, be prepared to show some flexibility rather than sticking rigidly to their national positions, and agree to simplify the language regime, for example.

We also agreed that we needed to promote cooperation between the public and private sectors. The European Technology Platforms and Joint Technology Initiatives are good ways of developing key technologies. If we are to make progress, it is important for the seventh framework programme to be adopted without delay. The programme should also be a source of EU funding for Joint Technology Initiatives.

I am particularly pleased that the Lahti meeting confirmed that Artemis, one of the most advanced technology initiatives, will be taken further, and that the Commission intends to give it the status of a Joint Technology Initiative. Businesses are investing very significant amounts in the joint initiative. The Finnish Government has set an example, promising to contribute €70 million over a seven-year period. Artemis is one of Europe’s biggest Joint Technology Initiatives, in a very important and promising technological field.

Last week, the Commission issued a legislative proposal concerning the European Institute of Technology. Lahti gave the go-ahead for a swift and detailed examination of the proposal in the Council. I see this as a very valuable initiative. I think it could contribute real added value to the development of research cooperation between universities and businesses.

Lastly, I would like to mention standardisation, which we touched on at our meeting in Lahti. As I said earlier, standardisation is very important in terms of its impact on people’s day-to-day lives. For instance, introducing the Europe-wide GSM standard phones made it possible for Europe to become the world leader in the field. If Europe cannot agree on good standards, then other people will set them in other parts of the world.

We all know that innovation can deliver success and growth; the problem is how to move forwards in practical ways. Guided by the outcome of our discussion at Lahti, we will now try to make progress on creating an environment that promotes competitiveness.

Mr President, Honourable Members,

Our discussion on immigration highlighted commitment to cooperation and solidarity amongst the Member States as crucial to any solution to issues raised by immigration. It is a matter that concerns the whole Union.

While the acute crisis we are experiencing requires a rapid response in the short term, our discussions also emphasised the need for a coherent and comprehensive policy on immigration. The policy should address both legal and illegal immigration. We need to do more to help immigrants to integrate.

The need for close cooperation with African countries, and other countries of origin and transit, was particularly apparent. In the long run, the best way of relieving immigration pressures is development, in Africa and elsewhere.

The meeting gave its full support to the work being done by Frontex, the EU’s border management agency, and it was acknowledged that more resources were needed to bolster its work.

The meeting also spoke of the need to develop our decision-making system, to enable the Union to respond promptly and more effectively to acute problems.

Mr President,

Thank you for the strong and thorough contribution you made at Lahti. You made it very clear that the European Parliament wants more effective decision-making in the field of justice and home affairs. Finland, as the Presidency country, could not agree more.

The theme of immigration will be discussed again at meetings of the justice and home affairs ministers and of the foreign ministers. And we will return to the matter at the European Council meeting in December.

We also spoke in Lahti about the grave situation in Sudan/Darfur. We expressed our deep concern about the humanitarian situation and human rights in Darfur.

As President of the Council, I will pass that message on to the Sudanese President. We must maintain pressure on the Sudanese Government to bring an end to the fighting, enable the UN to mount a peace-keeping operation and start negotiations with the rebels.

Mr President, Honourable Members,

The informal discussions with the Russian President, Vladimir Putin, were extremely useful for the development of our strategic partnership. Maintaining a strategic partnership means being eager to cooperate and prepared to discuss all issues. A partnership should not be seen as a static state of affairs but as an ongoing process. To our minds, a genuine and lasting partnership has to be built on common values.

Mr President,

I would like to thank you for your contribution to our dinner debate and for your support on this crucial matter. Values are the foundation for everything.

Mr President, Honourable Members,

In our discussions with President Putin, we talked about how we could make progress towards the goals of energy cooperation through a new agreement. Our talks will also help to prepare the ground for the EU-Russia summit in November. We hope that the summit in Helsinki will agree to start negotiations on a new and comprehensive EU-Russia agreement.

With regard to international issues, we agreed with President Putin that we would attempt to build closer cooperation links between the EU and Russia. The need for closer cooperation has been demonstrated very clearly by recent events in Iran, North Korea and the Middle East.

Over dinner, I brought up the shocking murder of journalist Anna Politkovskaya. I told President Putin that people in the Member States were worried that the situation regarding freedom of expression in Russia had taken a turn for the worse. On behalf of the Union, I said how deeply shocked we were at the murder: it much be investigated, and those responsible must be brought to justice.

In addition I raised our concerns regarding Chechnya.

Relations between Russia and Georgia were also discussed. I voiced the Union’s concern at the increasing tension and told him the Union was prepared to act to find a solution to the problem.

We are building a strategic partnership with Russia in a “common space” – in concrete ways and on an extremely wide range of issues. The most prominent themes during Finland's term of President are: energy, the environment, transport, justice and home affairs and human rights.

The European Union needs to be able to speak to its partners with one voice. If we are divided and disunited, we will be weak. We will not be able to defend our interests or promote the values on which the Union is based. At Lahti, we succeeded in showing President Putin that the Union is united and determined. As President of the Council, I see that as something to be proud of and I think that the EU has taken a step forwards in our relations with Russia. This does not mean that Russia agrees with everything we say. We had a long discussion, where President Putin answered our questions in detail and also sought weaknesses in the EU’s action. We are used to this with Russia, it is part of normal dialogue.

Mr President, Honourable Members,

The crucial question now, post-Lahti, is how we translate our words into action and move forward on the issues that we discussed. We depend on the usual working methods.

Most of the work will be done in the Council on the basis of Commission initiatives. In a number of areas, we will draw, during the remaining weeks of our Presidency, on the political guidelines that have now been set. The European Parliament will also play a central role in making progress on the basis of what was agreed on at Lahti.

Thank you for this opportunity to present to you the results of the Lahti informal meeting of Heads of State or Government. I will be glad to answer any questions which my introduction my have given rise to.