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

Cooperation on Economic, Energy and Labour Market Policy in the Baltic Sea Region Franz Thönnes, Member of the German Bundestag Member of the Standing Committee, Baltic Sea Parliamentary Conference Friedrich Ebert Stiftung Riga, 5 October 2012.

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

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  1. 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 ConferenceFriedrich Ebert StiftungRiga, 5 October 2012

  2. The Baltic Sea RegionThe region offers unique scope for cooperation: 5 Oct. 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 2

  3. The Baltic Sea RegionMembers of the Council of Baltic Sea States 5 Oct. 2012 Denmark* Germany* Estonia* Finland* Iceland Latvia* • Lithuania* • Norway • Poland* • Russia • Sweden • European Commission * EU member states

  4. The Baltic Sea RegionEconomic Cooperation – Challenges 5 Oct. 2012 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 4

  5. The Baltic Sea Region Economic Cooperation between Germany and Latvia 5 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 5

  6. The Baltic Sea Region Economic Cooperation 5 Oct. 2012 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 – Associationof chambers of crafts, commerce and industry (2004) 6

  7. The Baltic Sea Region Economic Cooperation – Challenges 5 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 % 7

  8. Economic Cooperation – Challenges 5 Oct. 2012 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) 8

  9. Economic Cooperation – OpportunitiesEU Baltic Sea Strategy 5 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 sustainab- le region Improving environmental protection in the region (Baltic 21 network – climate change, sustainablerural 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 9

  10. Economic Cooperation – OpportunitiesEU Baltic Sea Strategy 5 Oct. 2012 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 health • Improving transportation links within the Baltic Sea region and with other parts of Europe 10

  11. Economic Cooperation – OpportunitiesPolicies of the Northern Dimension 5 Oct. 2012 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) 11

  12. Economic Cooperation – Opportunities 5 Oct. 2012 • 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) 12

  13. Economic Cooperation  Opportunities 5 Oct. 2012 • (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 13

  14. The Baltic Sea Region. Current Cooperation in the Energy Sector 5 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 2012 Welcomed declaration by foreign ministers / closer cooperation on energy policy issues with special focus on supply security 14

  15. The Baltic Sea RegionCurrent Cooperation in the Energy Sector 5 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 15

  16. The Baltic Sea RegionCurrent Cooperation in the Energy Sector 5 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 16

  17. The Baltic Sea RegionCurrent Cooperation in the Energy Sector 5 Oct. 2012 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 17

  18. The Baltic Sea RegionCurrent Cooperation in the Energy Sector 5 Oct. 2012 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) 18

  19. The Baltic Sea RegionCurrent Cooperation in the Energy Sector 5 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 19

  20. The Baltic Sea Region - Cooperation in the Energy Sector:Challenges 5 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 20

  21. The Baltic Sea Region - Cooperation in the Energy Sector: Challenges 5 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. 21

  22. The Baltic Sea Region - Cooperation in the Energy Sector: Opportunities 5 Oct. 2012 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 22

  23. The Baltic Sea Region - Cooperation in the Energy Sector: Opportunities 5 Oct. 2012 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? 23

  24. The Baltic Sea RegionCooperation on the Labour Market - Challenges 5.10.2012 24 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

  25. The Baltic Sea RegionCooperation on the Labour Market - Challenges 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 %

  26. The Baltic Sea RegionCooperation on the Labour Market - Challenges 5 Oct. 2012 Commuting - EURES – Border regions in the European Union 26

  27. The Baltic Sea RegionCooperation on the Labour Market - Challenges 5 Oct. 2012 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 27

  28. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5 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) 28

  29. The Baltic Sea RegionCurrent Cooperation on the Labour Market EU-Baltic-Sea-Strategy-Flagship-Project Baltic Sea Labour Network 2008 – 2011 Motivation Working together through labour market issues is extre- mely important since this dynamic region could be deve- loped 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.

  30. The Baltic Sea RegionCurrent Cooperation on the Labour Market 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.

  31. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5.10.2012 31 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

  32. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5.10.2012 32 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

  33. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5.10.2012 33 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

  34. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5.10.2012 34 Finally: Establishment of Baltic Sea Labour Forum in 2011 suported by the CBSS, BSPC and EU • Forum members are 22 trade union confederations, employer organisa- tions 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

  35. The Baltic Sea RegionCurrent Cooperation on the Labour Market - Chances 5.10.2012 BSLF -platform for social dialogue: 35 jointly identified problems and challenges, issues like: - labour mobility - growth - competitiveness - education and training - high employment rates

  36. The Baltic Sea RegionCurrent Cooperation on the Labour Market - Chances 5.10.2012 36 • 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

  37. The Baltic Sea RegionCurrent Cooperation on the Labour Market 5.10.2012 Topics 2012 – 2013 37 • Mobility of labour • Working conditions • Cross border mobility • Youth unemployment* • Youth Guarantee decided by the Baltic • Sea Parliamentary Conference 2012

  38. The Baltic Sea RegionRecommondations for better political cooperation 5.10.2012 38 • 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

  39. Cooperation in the Baltic Sea Region THANK YOU FOR YOUR ATTENTION!

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