Swedish presidency - finding solidarity in the face of crisis

Thank you very much for inviting me to this conference. The idea of bringing senior scholars and high practioners from all over Europe to discuss the upcoming Swedish presidency in the light of crisis and solidarity is indeed very interesting and timely. I look forward to hear your advice.

To say that Europe is facing massive challenges may sound obvious, but right now there are many important issues on the EU-agenda that we have to deal with the coming years.

High on the agenda are:

- The financial and economic crisis
- Climate change
- The future of the enlargement process
- Making Europe more safe, open and secure

These are issues that we also have to handle during the Swedish presidency. In addition we will have to deal with the outcome of a possible new Irish referendum on the Lisbon Treaty and hopefully prepare for the implementation of that new Treaty

As the countdown continues Extensive work is now underway to prepare ourselves for the issues to be dealt with during our presidency. But sometimes things turn out like the John Lennon song "Life is what happens to you while you are busy making other plans". Planning is important, but things seldom turn out the way you intended. That means that we also have to expect the unexpected and plan for the unplanned.

Ladies and gentlemen,

The world is experiencing the worst economic crisis since the 1930's. Despite this Europe has proven to stand strong and unified, acting decisively to the current acute situation. It inspires me with hope in a time of uncertainty and economic unrest.

To handle the effects of the economic crisis is of course at the top of the Swedish presidency agenda.

I'm convinced that our economic development and future prosperity in Europe will depend on how we together can shape better conditions to respond successfully to opportunities and challenges in a world of new markets and new competitors. If the EU makes the right economic reforms now, it can secure a prosperous, fair and environmentally sustainable future for Europe. It can ensure that our economies are well positioned to take advantage of the opportunities offered by globalisation.

To ensure this we need open markets. We need markets allowing money and people to move from declining into growing industries. We need to devote resources to research, innovation, better education and training systems. We need an open global trading system.

Protectionism cannot make Europe wealthier. We will gain nothing by trying to keep our doors shut, and we will gain nothing from trying to isolate our economies from globalisation.

We must take measures to strengthen the global competitiveness of the EU in a world with new markets and new competitors.

To my mind we need a strategy with a stronger focus on how to strengthen Europe's competitiveness globally, while transforming Europe into an eco-efficient economy as well as coping with an ageing population.

All of these three challenges call for a strategic, ambitious and well-coordinated policy for research and innovation in Europe. During the Swedish presidency we will lay the foundations for a renewed strategy for growth, post Lisbon. The focus will be on the main challenges of the 2010 and 20's. We hope that the Spanish presidency can take the final decisions in the spring of 2010.

We will press forward with work to further develop and deepen the internal market and further exploiting the services sector's growth potential. We will work to further reduce the administrative burden and work for better regulation.

We will put the job creation high on the EU agenda and intensify the discussion on the reforms needed - both on national and EU level - to overcome labour market exclusion and increase participation and labour supply in a time of aging population.

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Already in 1987 the Brundtland Report, also known as Our Common Future, alerted the world to the urgency of making progress toward economic development that could be sustained without depleting natural resources or harming the environment. The report provided a key statement on sustainable development, defining it as: "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Tackling climate change is indeed the biggest task facing the world right now. It requires global solutions in which the EU must be on the offensive to reach agreements that will match the high expectations that exist in many countries.

If we continue like before, by 2030 world energy demand will be 50 per cent higher than today and global carbon dioxide emissions will have increased by nearly 60 per cent. We can already now witness dramatic facts:

- Climate change could further reduce available freshwater by as much as 20 to 30 per cent in certain regions.

- The UN predicts there could be approximately 50 million "environmental" migrants by 2020.

- Sea level rise may threaten the habitat of millions of people.

On this negative note, let me underline that climate change is not only a threat. It also brings opportunities. Time has come to seize these opportunities, since the opportunities both helps altering climate change and at the same time improving European competitiveness.

By being at the forefront, Europe can not only tackle the threat but also become a leader in developing the technology needed. Concerted action could offer new business opportunities, jobs and a vast export market.

Globally, the overall value of the low carbon energy sector could be high, and according to a Commission estimation employ more than 25 million people. The EU Emissions Trading Scheme is worth 20 billion euros a year today and it could be worth twenty times that in 2030. A climate-friendly economy needs structural change but it is clear that we have enormous gains to make. Furthermore, it could make Europe more secure from possible supply problems.

This is indeed a priority of the Swedish presidency - to halt climate change and improve the environment. Not surprisingly, the climate change is rated as the most important issue in the light of the elections to the European parliament on the 7th of June.

We are going to play a crucial role in ensuring that the EU delivers on important issues relating to climate, environment and energy.

Most important is of course to contribute to a global post-Kyoto agreement at the UN climate conference in Copenhagen in December. The climate package agreement by the European Council last December was an important first step. Now we must make sure that the EU sticks together and that we get the rest of the world onboard. That will not be easy.

Last but not least, we will adopt a Baltic Sea Strategy. Almost a quarter of EU citizens - about 100 million people - are affected by the sensitive environment of the Baltic Sea. This requires a concerted European effort. A Baltic Sea Strategy will address regional challenges, mainly to the environment and to competitiveness in the Baltic Sea, through EU policies.

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A third challenge we have to face in a longer term is how we can ensure greater mobility of people on equal conditions.

Mobility of people from countries outside the EU, has by some been seen as a threat to European security. Our efforts have been focused primarily on the fight against terrorism, cross-border crime and illegal immigration. This is of course important, but time has come to also look at mobility as an opportunity and find ways to guarantee the individual legal rights. We must avoid building closed walls along the borders of Europe.

Europe is absorbing approximately 2 million migrants a year. The UN estimates that the number of migrants worldwide will increase by 40 per cent over the next 40 years.

This is good news since we have an interest in increasing mobility. One of the EU's core problems is a decreasing productivity. Europe also has an ageing population and will therefore soon face a declining working force. Fewer people in the work force will have to support a growing number of elderly people dependable on the social services.

We need more people working. Despite this, some Member States perceive migration as a problem rather than an opportunity. Increased mobility and migration puts new demands on harmonized legislation.

This is the background to the third set of Swedish priorities for the 18-month presidency period - to make Europe more open and more secure:

We hope to be able to adopt a new five-year programme in the area of justice and home affairs, the so-called Stockholm programme. This programme will be broad and forward-looking and include a balance between coercive and legal rights measures.

We will develop a common migration policy based on an effective, coordinated and balanced approach. We will strive to improve policy coherence between migration and development.

We will do our utmost to create a Common European Asylum System and to harmonise the area further to maintain long-term sustainability of our asylum systems.

The fight against cross-border crime must also continue. Sweden will put extra emphasize on the fight of trafficking in human beings and illicit drugs. The police authorities must be given better tools, for example though better exchange of information.

In the fight against crime, we must have a clear citizens' perspective and to strengthen the individual's legal rights in criminal proceedings.

The fourth and "last" challenge - the world order, the EU as a strong global actor and continued enlargement.

I would argue that the 5th enlargement of the EU has been one of the most significant achievements of European integration. It has confirmed the success of the European model of cooperation and it has generally contributed to the peaceful transformation in the ten latest Member States.

Therefore, Sweden has a strong interest in the membership of Turkey, as should the EU as a whole. It would be the culmination of a long process of European modernisation for the country, including a deepening of the democratic system and full respect for human rights. Turkish membership would also improve prospects for stability in the entire region.

Moreover, enlargement contributes to economic dynamism, demographic vigour and cultural diversity to Europe. This is why we need to keep our doors open to all European countries interested in membership and with an aim to meet the all the necessary criteria.

That is especially important for the Balkan region. We support the European ambitions of Croatia, Bosnia, Serbia, and Montenegro. And I look forward to an application from Iceland of course.

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We have already established that Europe faces some important challenges. To solve these it takes a lot of political will. Besides that we need some important tools - rules and money.

The Lisbon treaty
A collective sigh of relief was heard all over Europe when the Czech senate voted yes to the Lisbon treaty three weeks ago. The Swedish government welcomes this. The Lisbon treaty is a treaty for the future. It makes decision making more efficient and more transparent. At the same time the democratic dimension is strengthened as the European parliament gains more power and the national parliaments gains more influence when it comes to European issues. I hope that the Lisbon treaty also can be ratified in Ireland so it can be implemented as soon as possible.

The budget review
A modern Europe in a modern world must also have a modern budget. In order to achieve our goals and meet our citizens expectations, we must use our resources in the best way. Today 42% of the budget is earmarked to the CAP. This is not reasonable. This is an approach that the Swedish government has pushed on in the light of the budget review. Therefore its unfortunate that this important issue has been stalled by the commission. But we do not give up. The efforts to reform the budget goes on.

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Ladies and gentlemen,

On 1 July, Sweden will be in the driving seat of the EU, as we take over the presidency. There are huge difficulties surrounding our presidency - the uncertainties of the Lisbon treaty, a brand new European Parliament and a commission that has to be approved by the same parliament, the negotiations leading up to the Copenhagen meeting, the economic crisis and so on. But & we know that the presidency is a unique opportunity to move processes forward and to facilitate decision-making in the important areas mentioned above. We do this with enthusiasm, high ambitions but we also feel humble in front of the gigantic task. And how deep the economic crisis may be and how difficult the climate negotiations may be, I can only imagine how difficult the situation would be without Europe working together. It is only by full cooperation we can find sustainable solutions in the face of crisis.