Responding to reports on their countries, Latvian and Lithuanian leaders acknowledged the need for more work in preparations for accession. Following a less-than-glowing assessment of Lithuania's readiness, the Lithuanian president assured the Swedish foreign minister his country would make faster progress towards accession during Sweden's presidency of the EU which begins in January.
In a speech in the German city of Wismar on Nov. 9, Meri told politicians that EU enlargement must begin in 2003, reported the Baltic News Service. "It is important for us to know that the EU will be ready to accept new members by the end of 2002, and that from then on the door will be open to the 12 candidate countries, whose accession date will depend only on their ability to fulfill membership responsibilities," he said.
The report on Estonia highlighted progress in adopting legislation on justice, home affairs and the environment compatible with EU norms.
While progress has also been made on integrating non-citizens, Estonia's language law must be implemented in accordance with international standards, the report stressed. The powers of the country's ombudsman for the protection of minorities should also be increased, it read.
Estonia's administrative capacity has been strengthened but further work is needed, according to the report. As in the other two Baltic states, little progress has been made in regional development policy, and Estonia's internal financial controls also remain weak. The Latvia report reflected the country's "satisfactory" progress on accession preparations, said Gunter Weiss, head of the European Commission's delegation to Latvia.
In economic terms a slight difference remains between Latvia and countries such as Estonia, which began accession negotiations earlier, he said. Within two to four years, Latvia should be able to cope with competitive pressure and market forces in the EU provided the pace of structural reform is maintained, said Weiss.
The application of EU legislation should be improved and administrative capacity should be strengthened in Latvia, the report added. These areas will require "severe changes," said Weiss. Efforts to combat corruption should also be maintained, advises the report.
It highlights weaknesses in the country's administrative capacity, delays in the privatization program and the state of the agricultural sector as particular problem areas. Agricultural reform should receive a boost from EU funding of rural development under the SAPARD program, said Weiss.
Regarding the integration of Latvia's non-citizens, the report praised the adoption of a language law and accompanying regulations which comply, in general, with the country's international obligations. But the report also recommended that Latvian language learning should be promoted.
The Latvian financial system is functioning effectively and macroeconomic stability has been achieved, the report added, but the current account deficit (7.4 percent of GDP in the second quarter of 2000) is a cause for concern.
The European Commission's report on Lithuania is "a touch more positive" than last year, said Dieter Thiel, head of the commission's delegation to Lithuania. It nonetheless contained many reservations. Fiscal imbalances and state interference in the economy have been reduced, according to the report. Significant overall progress has been made in the adoption of the so-called "acquis," or accession requirements, said Thiel. But while the macroeconomic climate remains stable, rising unemployment and falling investment are causes for concern.
Estonian Prime Minister Mart Laar said he was confident Estonia will have completed accession talks by the middle of 2002, reported BNS. "This requires a great deal of hard work and will leave no time for comfortable coasting along," he said. Laar described EU accession as the "opportunity Estonia has been seeking all along." But Estonia will continue to resist EU demands for it to raise fuel taxes to EU levels before joining, he said.
Latvian Foreign Minister Indulis Berzins dismissed concerns expressed in the Latvia report regarding the country's large number of non-citizens.
"The high number of non-citizens is not news to us," he told BNS.
"We're concerned that applicants for citizenship are capable of acting like citizens."
But criticisms of the judiciary and the state's administrative capacity were more serious, he said. Latvia's chances of inclusion in the first round of enlargement will be reduced unless efforts are made to solve such problems, and the necessary funds provided, he said.
At a meeting in Vilnius with Swedish Foreign Affairs Minister Anna Lindh on Nov. 10, Lithuanian President Valdas Adamkus said the Lithuania report would stimulate efforts to meet accession requirements, BNS reported.
"This urges us to work even harder so we can conclude membership talks by the end of 2002 and be ready to assume EU membership responsibilities and commitments in 2004," said Adamkus.
Estonia leads the EU enlargement process for a number of reasons, says Roberts Remess of the Economists Association 2010 in Riga. Estonia's Soviet-era reliance on light industry, such as textile and equipment manufacture, have made it more compatible with the global market, he says, while the Latvian economy, which consisted mainly of uncompetitive large enterprises, has been less adaptable. While economic policies in the three states have been broadly the same, decision-making processes in Estonia have been more efficient, both at institutional level and within the leadership, said Remess. The strong influence of Finnish culture in Estonia has also encouraged understanding and acceptance of market economics, he said.
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