"Austria's Role in an Enlarged European Union"
Statement by the Federal Minister for Foreign Affairs
Dr. Benita Ferrero-Waldner

Japan Institute for International Affairs
Tokyo, October 19, 2001

Ambassador Owada,
Excellencies,
Distinguished guests,
Ladies and Gentlemen,

European unity has come a long way. As early as 1946 – under theimpression of the cataclysm of World War II – statesmen like
Winston Churchill dreamed of a better Europe. “We must build akind of United States of Europe”, Churchill said.

Half a century later, we do not have a United States of Europe, buta highly integrated European Union, which is an important politicaland economic factor in the world, with (supranational) strong
institutions, its own currency and a Common Foreign and Security

2as well as a European Common Security and Defence Policy. The
ultimate objective of ever closer integration among member states is
no longer a distant dream.

The European Union is a success story. It has guaranteed peace,security, and stability for its 15 current members. The reach ofEurope’s peace dividend, however, has gone far beyond.

By the on-going enlargement process, the European Union will soongrow to almost 30 members and 500 million inhabitants, thereby
further enhancing Europe's global role.

I am grateful to the Japan Institute for International Affairs for theinvitation to discuss the subject of Austria’s role in the enlarged
Europe. I appreciate your interest in Europe, in Austria and in theissue of how to take our relations to even higher levels.

Let me first say a few words about the situation in the world after theoutrageous terrorist attacks in New York and Washington. I shallthen explain our position in the European Union enlargement
process before taking a peek into the future of the enlarged Union.
Finally I hope you will allow me to raise a few questions that should
lead us right away into our discussion.

September 11 has changed the world.

3Austria – together with her EU partners and many other nations of
the world, including Japan – stands in sympathy and solidarity firmly
at the side of the American people in the fight against terrorism. We
consider these hideous attacks as directed against us all, against
the civilised world as we know it.

We have joined the fight adopting a number of measures in thefields of police work, improved recognition and intelligence, judicial
measures, and by granting permission to use Austrian air space.

We also support the anti-terror-coalition with foreign policy
initiatives.

A few days after the crisis started, I paid an impromptu visit to theMiddle East. In talks with the heads of State and the Foreign
Ministers of Egypt, Jordan and Syria, as well as with the Foreign
Minister of Saudi Arabia and Palestinian President Arafat I could
explain the European position and point out the importance for thecountries of the Middle East to join the fight against terrorism. Iknow that Japan shares this view as was also underlined by thetrips of former Prime Minister Hashimoto and former Foreign
Minister Komura as special envoys to the Middle East only a few
weeks ago.

Austria traditionally enjoys a great measure of good-will in theMiddle East, which makes us trusted interlocutors.

4When Austria held the Chairmanship of the Organization for
Security and Cooperation in Europe last year, I regarded not only
the Balkans, but also the Caucasus region and Central Asia aspriority areas for the efforts of the OSCE in enhancing security andco-operation beyond the more narrowly defined borders of Europe. I
am also happy that our joint initiative for a Conference on CentralAsia, which was held in Toyko last December, was very successful.
It represented a landmark in the history of the OSCE, where Japan
enjoys a special status as a “Partner for Cooperation”.

In view of recent events the attention devoted to Central Asia has
proven very important and has created a lot of good-will. I shallreturn to the region in a few days’ time in order to get a first handimpression of the humanitarian situation evolving in the Afghanistan
context. I shall also discuss the European positions concerning thefight against terrorism with my counterparts in Central Asia.

I consider it very important to prevent the fight against terrorism
from turning into a conflict of civilisations. Following an Austrian
tradition of dialogue between Christianity and Islam as well as otherreligions, Austria – upon my initiative – engages in the “Dialogue ofCivilisations” under the leadership of UN Secretary General Kofi
Annan.

Let me use this occasion to repeat how delighted I am Secretary
General Kofi Annan and the United Nations, of which Vienna is thethird Head Quarters, were awarded the Peace Nobel Prize. This

5underlines once more the importance of the UN for securing peacein the world.

Having seen the workings of the UN from the inside as well as fromthe vantage point of Austrian Foreign Minister I have always held
the conviction that peace in the world needs a strong UN. I am alsoa very staunch supporter of a close dialogue between the EuropeanUnion and the United Nations on the whole spectrum of UN
activities and I am particularly appreciative of Japan's very important
contribution and support. As a host country for UN headquarters
and as an active member we shall continue to work with the UN as
closely as possible.

The new threats to the world emanating from ruthless terrorist
networks and the volatile political situation in the world render
European integration and enlargement of the EU even more
important. Only co-operation and solidarity can help us overcome
modern-day problems.

Enlargement and the simultaneous intensification of the European
integration process will help Europe to better cope with theeconomic challenges of globalisation. Europe will become an evenmore important partner for the world, including, of course, forJapan.

Let me quote from last year's speech by former Foreign Minister
Yohei Kono when he said, “Japan and Europe, as global partners,

6

are inseparably linked regarding security. Both sides have the will
and the capability to engage in mutual assistance in the face ofchallenges to the security of either side, such as those in Bosnia,
Kosovo and East Timor, and as regards the Korean Peninsula
Energy Development Organization, known as KEDO".

I appreciate the Japanese initiative of ushering in a decade ofJapanese-European co-operation, which will contribute tobroadening the avenues of co-operation that we have identified . Inthe triangle EU –Japan - USA the EU-Japan arm needs
strengthening. Let us accomplish this in the decade to come!

I agree that for Europe and Japan co-operation should rest on
shared global responsibilities, be it with regard to regional conflicts,issues of globalisation, the environment, social issues, etc. Security
has become very interdependent in today’s world.

Common analysis and shared opinions on such issues are very
important. Even more important is common action. For this reason I
support the decision of the EU-Japan summit in Tokyo in July 2000
to elaborate an Action Plan for EU-Japan Co-operation. We need tointensify our cooperation in all areas and address global issues in ajoint effort; instability in the Balkans, the Middle East and in Asia all
affect the security of both of us.

7I received first hand impressions of such a region of great concern
for security in Asia, when I visited the Republic of Korea earlier thisyear. I used this visit in order to support President Kim's Sunshine
Policy.

At the same time I appreciate Japan's constructive role inaddressing the problems of regions like the Balkans, where Austria
has traditionally been very active in trying to help find ways for amore peaceful development.

Let me now turn to the enlargement of the European Union:
In 1989 then Foreign Ministers Nakayama and Mock together visitedthe location on the Austrian-Hungarian border, where only a few
months before the Iron Curtain had been symbolically cut.

When communism in Eastern Europe started to crumble, Austria
was among the first to recognise that we had to offer a European
perspective to the Eastern part of the continent. A development hadstarted, which brought my country from the periphery of Western
Europe to the centre of the continent and strengthened its positionin this dynamic and strategic region of Europe.

Austria engaged intensively in these young democracies andemerging market economies.This is especially true for the 16.000
Austrian companies, which have invested in Central and Eastern
Europe so far. Austria has thus become one of the three most8

important investors in the four EU candidate countries bordering
Austria. Tens of thousands of jobs have been created in the region.

Our trade volume with the countries of the region has been growing
rapidly , mostly in double digits, in both directions ever since the fallof the Iron Curtain.

Hundreds of international companies, including Japanese, haveinvested in Austria. Many have made Austria their base for doing
business in Central and Eastern Europe.

Having said this, it is no surprise that it was under the Austrian EU
presidency in 1998 that membership negotiations started with thecountries of Central- and Eastern Europe.

EU enlargement today is my ICHI BAN (number one) priority forAustrian foreign policy.

I pursue this important objective being guided by the principles offairness and flexibility, safeguarding our own interests as well as
taking the interests of the candidates into consideration. Speed isimportant in the enlargement process but not for the sake of quality.
After all, we are talking about a process of historic dimensions,which will profoundly change Europe.

9The negotiations are proceeding very well. It is possible, that thefirst candidates might join in 2004. Some of the negotiation chapters
are very tricky, though.

This is particularly the case for certain aspects of the freemovement of workers and certain services. Job market balance isthe issue. The solution lies in our concept of transition periods. This
concept is gaining acceptance on both sides.

Other complicated issues in the negotiation process pertain to
nuclear reactor safety, road transport, the environment, andagriculture. Nuclear reactor safety is an area of particular concern to
the Austrian public.

We continue – I am confident – to be on a good track, however, forfinding acceptable solutions, as we have been able to solve
complicated issues in the negotiating process so far.

In continuation of close co-operation with our Central and Eastern
European neighbours we have – upon my initiative – set out tocreate a Regional Partnership with the Czech Republic, Hungary,
Poland, the Slovak Republic, and Slovenia, which will intensify
relations, prepare ourselves and our partners for their accession
and lay the basis for the pursuit of common interests in a second
phase, when our partners will have become full members of theUnion.

10I consider this a very important regional initiative in Central Europe
with great potential in all areas of co-operation, particularly forenhanced regional co-operation within the EU.

The enlarged Union will need further reforms to cope with around 12
new members in the near future. The EU therefore finds itself in themiddle of a debate on the future of Europe. A number of interestingideas have already been voiced, some of them very ambitious. I
believe, however, that we should continue to focus on the further
evolution of existing structures in Europe - which for some time tocome - will remain a construction "sui generis", based on its own
historical experience.

The reforms will have to strengthen the democratic legitimacy of EU
institutions, and to define more pragmatically which decisions
should be made on the European level and which on the national orregional level.

We shall have to address more directly the issues that ourconstituents are particularly interested in, such as social issues, job
security, etc.

I am a fervent proponent of including our population in thepreparatory process leading up to the next Intergovernmental
Conference dealing with the future of Europe. After all, it is for ourpeoples that we are building this new European house.

11Austria is also fully involved in the EU’s efforts to create military andcivil crisis management facilities. When we talk about the European
Security and Defense Policy we at present mean crisis
management. Defense proper is not yet on our agenda. Initial
operational preparedness for military crisis management should bereached before the end of this year. The crisis in the Balkans andother regions show very vividly how important this concept is including in ist civil dimension.. It has become ever more importantsince September 11 and its aftermath. Europe has to reckon with adiminished willingness of the US to get involved in militarycontainment of crises in Europe, such as Bosnia, Kosovo, andMacedonia.

Nevertheless it is also evident that NATO and the transatlantic
partnership will remain essential for security in Europe.

From today’s vantage point the European Union can expect Russia
to integrate herself into the ranks of responsible forces in the world
and to again become a global player. Austria has always spoken up
for Europe to work towards a closer relationship with Russia. Austria
has also supported the EU decision for a common EU strategy viaà-vis Ukraine.

Let me close with a few thoughts on relations with Asia and inparticular with Japan:

12Austria supports close co-operation of the EU with Asia, such as in
the ASEM framework. When I take a look into the future, I shouldlike to see us expand decisively on this relationship.

As I already pointed out, a very special place should be reserved for
EU-Japan co-operation in view of our shared values and thealready existing framework of regular consulation and cooperation.
The reality of the Euro as of January 1st, 2002, will give evengreater weight to economic and monetary policy coordination.
All the ingredients for a more dynamic relationship between Japanand the European Union are there, but additional efforts will beneeded to arrive at a real partnership, which would becommensurate with our declared expectations.

Let me, therefore, at the end of my remarks just simply raise a few
questions, which I should like to pose to you and which we may
discuss today:

Would you see the enlarged European Union as a partner for Japanor would it, with its economic weight and 500 million people, rather
be considered a fierce competitor to Japan?
• Do Japanese decision makers in politics and business sufficiently
understand the intricacies of the European decision makingprocess?
• What can Austria, which our Japanese friends rather see as acultural power, do to improve her position as an economic
partner?

13• Have our Japanese friends recognized the tremendous businessand investment opportunities the enlarged European Union willoffer to the world?
• What is the most important message, we Europeans have tounderstand to become even more trusted partners for ourJapanese friends?

I personally think that we have come a long way since thepublication of a book some 20 years ago entitled "Japan versus
Europe. A History of Misunderstanding" by E. Wilkinson, whichclosed with the following words:"Nothing can be achieved until the Japanese define more clearly therole they wish to play on the world stage, and having decided it,
make massive efforts to be better understood.
Nothing can be achieved unless the Europeans, in reacting toexternal pressures, respond positively with a newly awakened
desire to learn."

I am looking forward to our discussion. I thank you in advance foryour candid answers. I shall in turn do my best to answer yourquestions.

Thank you for your attention.