OREANDA-NEWS. On June 04, 2008 at the Baltic Business Forum in Riga, the 11 heads of the governments of the Baltic Sea States confirmed that the success of the region depends on the cooperation of the countries. Prime Minister Andrus Ansip stressed the importance of competitive economy and environmental safety, and the need to invest in people and knowledge, reported the Official website http://www.valitsus.ee.

When talking about the future prospects of the Baltic Sea region, the Estonian Prime Minister found that the region must become one of the most technologically developed regions in the world.

In the current situation, according to Andrus Ansip, the uniform development of the Baltic Sea States is hindered by deficient infrastructure in certain locations. The Prime Minister mainly referred to the isolation of the electricity market of the Baltic States. “The creation of an integrated and open electricity market – together with a playing field for those who are interested in buying and selling electricity – would definitely boost the development of our region,” he noted.

Andrus Ansip stated that several energy cooperation projects are already under discussion. He stressed that these must be launched before the countries find separate and less efficient solutions for covering their electricity needs.

In parallel with energy issues, the Prime Minister thinks greater attention must be paid to the environment as well, which in the context of the Baltic Sea mainly means marine safety. Ansip noted that deficient infrastructure and safety measures may provide a short-term solution, but in the long run pose the risk of permanently damaging the Baltic Sea.

When talking about the economic policy, Andrus Ansip stated that here, a longer perspective should be kept in mind and the temptation to apply short-term political measures should be resisted as these risk the long-term development of the region. “In economic policy, unavoidable changes such as the aging of the population, increase in energy and food prices and the increasing sensitivity of the natural environment that surrounds us must be taken into account,” he said, and added that protectionism and short-term solutions will not mitigate these issues. Ansip was glad that most of the Baltic Sea states are known for the strength and long-term sustainability of their fiscal policy. “We should continue the implementation of the predictable and reliable fiscal policy in the future as well,” he noted.

In conclusion, the Prime Minister stated that the Baltic Sea region should not attempt to compete with regions that rely on low-cost labour. “I believe the key to our success lies in investing into people and knowledge,” Ansip said. He noted that in order to remain competitive in the globalising economy, the region needs a flexible labour force with good qualifications. “Our goal would be to establish a favourable environment for open-minded, innovative and qualified people”.

The Baltic Business Forum was held in Riga in the framework of the 7th summit of the Council of the Baltic Sea States. In addition to the Prime Ministers of the Baltic States, the Prime Ministers of Norway, Sweden, Finland and Denmark also participated, as well as the first Deputy Prime Minister of Russia, the Foreign Minister of Germany and the representatives of the governments of other Member States. The Minister of State for European Affairs was also present.