Importance of the Cross-border Cooperation for the Present and Future Birgit Autere Ulkoasiainministeriö

Main Topics of the Presentation Finnish- Russian Cooperation since 1992 Importance of the Kolarctic Programme for Barents Cooperation Benefits of ENPI CBC Programmes Cross-border Cooperation as Confidence Building Measure Success Factors behind the CBC Programmes Challenges

Finnish- Russian Cross-border Cooperation since 1992 Bilateral Neighbourhood Area Cooperation and Interreg- Tacis have been predecessors to ENPI programmes ENPI CBC Programmes based on the good practices of Neighbourhood Area Cooperation and Interreg-Tacis Neighbourhood Programmes Neighbouring Area Cooperation Interreg Interreg-Tacis Neighbourhood Programmes ENPI CBC Programmes ENI CBC Programmes

Agreements for Bilateral Cooperation Finnish-Russian Neighbouring Area Agreement concluded in 1992 Finnish-Russian Agreement on Promotion of Cross- border Cooperation signed in 2012

Bilateral Finnish-Russia Neighborhood Area Cooperation Set a model for the ENPI CBC Programmes co-financed by the EU Finland channeled in 20 years approximately 330 MEUR Yearly nearly 200 projects executed between authorities, institutions, companies, regional and local actors and NGOs. All in all 2500 projects executed over the years. Cooperation focused on the North-Western regions of the Russian Federation, especially the Republic of Karelia, the Murmansk Region, the Leningrad Region and the City of St. Petersburg

Bilateral Finnish-Russia Neighborhood Area Cooperation Integral part of Finland's foreign and security policy. MFA administered and coordinated the cooperation. To mirror against the historical background, the significance of the cooperation was the establishment of networks, exchange of experiences and information between different actors.

Bilateral Finnish-Russia Neighborhood Area Cooperation One of the concrete outcomes was contribution to wastewater treatment plants in St Petersburg. Finland demonstrated with well-functioning Neighbouring Area Cooperation that it is worth investing in EU's external borders. Neighbourhood cooperation know-how perceived as export product for other EU external borders.

Neighbouring Area Cooperation

Termination of the Neighbouring Area Cooperation Need for change: major changes in operating environment New way of cooperating – equal partnership EU's Cross-border Cooperation Programmes evolved Finnish Government emphasis on EU external border cooperation programmes Increased regional cooperation in the Baltic Sea, Barents and Arctic regions

Importance of Kolarctic Programme for the Barents Cooperation The Barents Euro-Arctic Council (national level) and Barents Regional Council (regional level) since Strengthen cooperation, stability and sustainable development in the Northernmost regions of Finland, Norway, Russia and Sweden. Barents working groups cover 11 different sectors and the indigenous peoples cooperation. Priorities of the Finnish BEAC Chairmanship : Economic cooperation incl. transport and logistics; Environment and Climate Change; Youth.

Financing of Barents Cooperation Kolarctic ENPI CBC Programme has been the most important source of project financing. Project examples: -Barents Freeway Project -Public-private partnership in Barents tourism (BART) -Children and Youth at Risk in the Barents region -New Horizons (Culture)

Kolarctic CBC Financing in Barents Projects Positive: Objectives of Barents cooperation have been taken into consideration in the planning of new Kolarctic CBC programme. Kolarctic programme financing can be targeted to activities supporting the Barents cooperation and other Euro-Arctic cooperation. Coherence with the priorities of the Barents Working Groups and Arctic strategies of the participating countries ensured Kolarctic geographical area will cover almost the whole Barents area

Kolarctic CBC financing in Barents projects Shortages: No financing available before 2016 Financing gaps: small projects (< €); health and social sector projects

The Role of the Central Government in Cross-border Cooperation To create a conducive, able environment for cross-border cooperation work. Cross-border cooperation between the regions and for the benefit of the region. Cross-border cooperation is cooperation between regions on both sides of the border with the support of the central government of the participating countries and EU.

The Role of the Central Government in Cross-border Cooperation In Finnish ENPI programmes central government has understood its role. Regions sit on the driver's seat. CBC on EU external borders perceived as cooperation for integrated and sustainable regional development and for harmonious territorial integration across the EU external border.

Role of the Ministry for Foreign Affairs of Finland in Cross-border Cooperation Responsible for external aspects of the political framework Keeping CBC in the foreign policy agenda Member of the Joint Monitoring Committee ENI Committee representation – involved in ENPI/ENI legal framework negotiations process Advocating CBC at national and EU level (lobbying for ENI CBC finances Chairmanship of the Finnish-Russia Border Traffic and Border Infrastructure Development Working Group (dealing with LIPs priority list)

ENPI CBC Benefits from the Central Government Point of View Since ownership of CBC programmes in the regions, level of activity increases per se Day-to-day CBC contacts between the authorities augment Combines foreign policy interests with regional development and cooperation needs of the border regions Border crossing capacity increased (LSPs) Instrument to underpin and complement EU's Northern Dimension policies and Arctic Council policy development.

Cross-border Cooperation as Confidence Building Measure Rapprochement through joint actions creating positive atmosphere Tool for maintaining concrete cooperation with Russia Creating culture of trust Permanent cooperation mechanism, automatically improves relations Best of the cases cooperation not undermined by politics in the capitals

Critical Views on EU CBC Funding Heavy reliance on EU funding for cross-border contacts. If no EU funding for CBC, like years , immediate interruption of activities and contacts? Cross-border cooperation should be integrated into all activities in the border regions, not depend on programmes. Cross-border cooperation not only in the framework of the CBC programme.

Success Factors behind the CBC Programmes Existing cooperation mechanisms in place with all countries in the North long before the CBC programmes, tradition of cooperation Strong regional identity, traditionally state borders not known in Lapland Regional Councils as Managing Authorities for CBC programmes, possess long experience in programme implementation and ensuring good governance Strong regional emphasis, decision making in the regions, jointly decided priorities, respective regional councils in the best position to identify regional needs. Towards stronger linkage between regional strategies and EU funds

Cross-border Cooperation Challenges Delayed start of programme implementation EU-Russian political relations -Finalization of ENI CBC Programmes -Ratification of Financing Agreements -Approval of Large Investment Projects EU sanctions looming upon CBC and possible Russian counter-sanctions (i.e. EBRD) Restructuring of ministries in the Russian Federation Economic development on both sides of the border

Lessons Learnt CBC advocacy work pays off at EU level. More flexible CBC Implementing Rules and ENI Regulation reflecting more CBC work, not development assistance. In addition, CBC sanctions avoided. Programmes have strengthened the stability, economic development and cohesion on and around the border regions. CBC programmes have demonstrated a clear benefit for both sides of the border and a real cross border character. The domino effect of a prolonged legal framework formulation, delayed programming of new-generation ENI CBC programmes and foreseen long selection and contracting process lead eventually to minimal implementation period.

Lessons Learnt Regions on both side of the border should be fully committed to cross-border cooperation in order to make it work A great percentage of absorption of EU funds - excellent implementation capacity at programme level Cooperation and joint action per se are valuable Partnership building takes time, learning by doing together

Importance of the CBC for the Future Results-oriented, practical cooperation in bordering areas needed in the future despite the prevailing international political situation ”Fading out the borders” For the sake of mobility of people and promotion of people-to-people contacts Cross-border cooperation has been and will continue to be a key priority for the Government of Finland

Esityksen nimi / Tekijä 26 Questionnaire for NGOs and civil society actors NGOs and other civil society actors in the Barents region are invited to fill in the questionnaire regarding their cross-border project financing The answers will contribute to gathering information concerning the financial needs and the existing financing sources in cross-border cooperation in the Barents region. The website will be open until 20 January 2015.

Thank You and Merry Christmas!