sábado, dezembro 04, 2010

The specific regional problems of Lithuania


The specific Lithuania problems were widely discussed before accession to the EU. There were two main problems for Lithuania: the transit from/to Kaliningrad region and Ignalina Nuclear Power Plant (NPP). These are still very actual problems. In this article I will shortly discuss both of them.
The Kaliningrad region is the most western part of the Russian Federation, separated from the main part of Russia territory. It shares borders with Baltic Sea, Poland and Lithuania. The territory is very small, but causes big problems. Since 1995 to 2003 Russian citizens that permanently were living in Kaliningrad region were able to travel through Lithuania without visa. Also no visas were required from Russian citizens travelling by train from Russia to Kaliningrad region and back. However, according EU procedures (Schengen Treaty), Russian citizens need a visa for crossing EU member states borders. So Lithuania before accession into EU had to solve this problem.
There were two negotiations: between EU and Russia (Lithuania has participated as a future member of EU) and between EU and Lithuania (according to Treaty of accession to the EU). It took long time, but finally all sides reached an agreement. Joint Statement on Transit between Kalinigrad Region and the Rest of the Russian Federation (2002) was the result of the negotiations between EU and Russia. According to this paper, Russia citizens must have Facilitated Transit Document (FTD) in order to travel throw Lithuania territory. Until now, Lithuania has not received any rebukes from Russia for the way the FTD are administered. Also, Lithuania has reached a success in negotiation with EU, preventing that the FTD would undermine to Lithuania’s membership in the Schengen Area. This situation satisfies all parties so it is expected that in any time soon will be no problems about transit to/from Kaliningrad region.
The second main specific regional problem of Lithuania, which was also very important before accession to EU, is Ignalina NPP in the city of Visaginas. EU required the closure of its first sector before 2005 and of the second sector before 2010. Lithuanian community was not satisfied with this requirement for several reasons. First of all, the decommissioning of NPP is a very expensive procedure and Lithuania alone was not able to do it. Secondly, Lithuania did not want to fall dependent on energy imports, which could lead to higher price of electricity (NPP was producing 80% of total electricity needed for the country). Also, NPP was working properly, without any accidents, so most of the people were thinking that it was too early to close it. Finally, in Ignalina NPP were working more than 2000 people. Furthermore, many institutions and organizations in the city were dependent on the NPP, because they were offering direct services to this enterprise. The city of Visaginas was built specially for Ignalina NPP, so people was afraid of facing a huge unemployment rate in this region.
However, the EU, after long negotiations, suggested a support of 837 million EUR for decommissioning of Ignalina NPP. This sum was more than half of the sum needed for decommissioning. Also it was promised that Lithuania in the future will get support for disposal of hazardous waste operations, which will last about 30 years. Finally, Lithuania agreed to stop reactor’s work before required deadlines. It was also decided that infrastructure of Ignalina will be used to build new common nuclear power plant for Lithuania, Latvia, Estonia and North of Poland. Unfortunately, after the economic crisis there are no companies that want to build this reactor, so the question of a new NPP in Ignalina is very uncertain.
On the third quarter of 2009, the unemployment rate in Ignalina have reached 19,6 per cent. This is one of the highest unemployment rates in all Lithuania and it will become even higher because most of the workers are still working in the NPP (for the last decommissioning procedures).
The government introduced a plan called “SME Development Programme for the Target Region”, to attract investments to this region. Though, the region has a lot of lakes and forests. In economic terms it is a very weak region with domination of non-intensive farming. The majority of the people is living in rural areas and the infrastructure of the city is not attractive for business. However, government suggests grants and good conditions for investors so it is still willing that until 2015 this region will start to recover.
The transit from/to Kaliningrad region and Ignalina Nuclear Power Plant (NPP) are very different and specific problems. Even if it looks like that the problem of Kaliningrad region is solved, there is always an uncertainty about the policy of Russian Federation. The problem of Ignalina Nuclear Power Plant is also a long-term problem. The reactors have already stopped working, but the maintenance of the equipment and all hazardous wastes is very expensive. The region of Visaginas, which was depend on the NPP is facing big economic problems and in the future probably will have even bigger problems. The government of Lithuania has a big challenge to solve these problems.

Aušra Pockevičiūtė

References:
1. Transit from/to Kaliningrad region:
http://www.euro.lt/en/lithuanias-membership-in-the-eu/transit-from-to-kaliningrad-region/ .
2. Joint Statement on Transit between the Kaliningrad Region and the Rest of the Russian Federation, 10th EU-Russia Summit, Brussels, 2002 November 11:
http://ec.europa.eu/comm/external_relations/russia/summit_11_02/js_kalin.htm .
3. Protocol No. 5 of the Accession Treaty (2003) On the transit of persons by land between the region of Kaliningrad and other parts of the Russian Federation:
http://eur-lex.europa.eu/en/treaties/dat/12003T/htm/L2003236EN.093100.htm .
4. Ignalina NPP and the Prospects of Nuclear Energy in Lithuania:
http://www.euro.lt/en/lithuanias-membership-in-the-eu/ignalina-npp/ .
5. Historic overwiev of Lithuania-EU relations;

[artigo de opinião produzido no âmbito da unidade curricular “Economia Regional” do 3º ano do Curso de Economia (1º ciclo) da EEG/UMinho]

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