Tony Blair
Speech on the European Bank for Reconstruction and Development and EU enlargement
19 April 2004
When the European Bank for Reconstruction and Development was set up in 1991, there was a unique opportunity to develop a new wider Europe, based on plural democracy and market-based economies.
 
Today, only twelve days before the accession to the EU of 10 new member states, we can say with pride that the opportunity has been successfully seized. It is a credit to the Governments of the region, and a credit to the EBRD, which has played a vital role in the process thanks to its unique mandate.
 
The extent and speed of change has been impressive.  It may have been slower than some optimists hoped for at the start.  And it has sometimes been painful for those losing the security and certainty of an old system and not seeing the early benefits of a new one. But the completion of the Europe's biggest ever enlargement, with the prospect of more countries joining in the years ahead, is the clearest sign that the reform journey has been worthwhile.
 
The 1st May will be a genuinely historic day. The day that the division of Europe - the legacy of the Second World War and the Cold War - will be erased. The first day for new reunited Europe, for an EU of 25. It is a transformation which we can see for ourselves, whether in the high streets of Prague or Budapest, or in the conference rooms of Brussels. Europe has changed in a thousand ways, and for the better. 
 
From the outset, there has been no stronger supporter of the enlargement process than Britain. It has been a rather rare point of cross-party consensus in Britain, where Europe is concerned. This government has championed it energetically.  We are proud of the part we have played - both up front and behind the scenes - to help the accession countries along the path to membership. You, the members and the staff of the EBRD also deserve to be proud. But the real achievement belongs to the ten countries which themselves have managed this transition.
 
Enlargement will increase stability, security and prosperity in our region.  
It will help prevent conflict in Europe ever reoccurring. It will entrench and help spread democracy, the rule of law and human rights. It will widen our co-operation to face new threats - from environmental degradation to terrorism - together. 
 
It will create a vast free trade market of 450 million consumers is an enormous achievement, with immense potential for the future. Increased trade, investment, and competition will benefit us all - in the new EU countries and the existing members alike.  
 
In Britain, the Treasury estimates that 100,000 British jobs are already linked to the export of goods and services to the new EU member states. Our trade with the eight largest accession states has grown by almost 200% in the last decade. Studies predict that this trade will continue to expand, creating more jobs in the future.
 
Of course enlargement also bring new challenges.  It will force the EU to review its processes, institutions and ideas. It means that the EU has new neighbours, with whom we must strengthen our relationships. We must adapt to reflect our expanded membership, as well as the changing world in which we live. 
 
In particular, Europe must press ahead with the process of economic reform. I am convinced that the entry of ten new members will be a boost for this agenda. The record of modernisation which the new members have demonstrated in the last decade and a half is an inspiring example to all of us. Their proven determination and commitment to reform will be an asset to the whole of the EU. 
 
Ten years ago, few of us would have envisaged the shape of Europe we now live in. But few could deny that Europe is today a more secure, stable and prosperous place.
 
This enlargement has undoubtedly been one of the European project's greatest success stories. Now we must sustain the process so future generations can continue to reap the benefits.
 
We hope to complete negotiations with Bulgaria and Romania by end of this year.  Then we have a crucial decision on Turkey in December, with the chance to anchor Turkey's place in Europe. And we have the prospect of future membership for the Western Balkans. 
 
That is why the EBRD will still have a very important role in the years ahead. 
 
The EBRD has been at the heart of the process of transition, supporting the economic and political transformation of many nations over the last thirteen years. 
 
The Bank was not set up to exist for ever.  It is there to help countries make the transition, to a point where their own domestic institutions and investors and international business provide the basis for their economic growth.  
 
The transition is not yet finished in the countries which are about to join the EU. The EBRD will still help them complete this process.  But as they gain a new framework of support as EU members, and as the interest of international investors grows, the EBRD's role should naturally fall away over the years to come.
 
Nevertheless, there is still a major role for the Bank in countries further east and south.  You are already playing a key role in Bulgaria and Romania.  The Bank has assisted international efforts for stabilization and reconstruction in the Balkans.  It has become an increasingly important partner in Russia's reform efforts.  This vital work must continue.
 
The Bank needs to make a more concerted effort in those countries of the region which are at an early stage of transition. These countries require substantial help to reduce poverty, to promote growth and tackle corruption, organised crime and HIV/AIDS.  
 
The EBRD can bring its unique mix of private sector expertise, institutional experience and finance to bear. But it needs the commitment of the countries themselves, new interest from domestic and international investors, effective coordination with the international community and grant support.  
 
We strongly welcome the Bank's new initiative to support the early transition countries.  The UK is ready to engage with the Bank in shaping this initiative and in giving new financial support.  Within the Bank this agenda needs to be promoted as a core priority.
 
The Bank must continue to search for ways to engage constructively in countries where problems exist over political reform.  This is not about imposing a particular form of democracy from outside.  Rather, it reflects the beliefs of the Bank's founders, confirmed in practice, that political reform and economic progress are inextricably linked. 
 
The EBRD has much to be proud of - and there could be no better time to recognise that than the eve of the EU's enlargement. It is also well positioned to meet the new challenges.  Its location in the City of London enables it to benefit from a huge range of expertise and experience close to hand. Its leadership and its staff have shown themselves ready to take on the next set of challenges with vigour.
 
It remains for me only to congratulate President Lemierre, the management and staff of the Bank on your achievements, and to wish you a very successful Annual Meeting here in London, and every success in the years ahead.

http://www.number10.gov.uk/output/Page5654.asp
