Ladies and Gentlemen,

First of all allow me to express my sincere pleasure at the fact that this Hungarian-Estonian economic seminar has been arranged, since it is a unique opportunity to get to know each other better. Although we are kindred peoples, we still have a lot to discover about each other.

Apart from common ancient roots there are many other bonds between us. Primarily it is a similar fate that befell our peoples. Now, after the inglorious end of the socialist experiment imposed on us, we as well as other Eastern and Central European countries are involved in a large-scale transition process unequalled in world history: during an incredibly short period of time we have moved from a totalitarian to a democratic system of government, from a command economy to a market economy.

After several generations the human searching spirit and the miracle- working omnipotent wizard - private initiative - have escaped captivity. Our rapidly changing street scene, if only our shop counters, bear evidence of the operation of Adam Smith's mysterious ''invisible hand''.

Again a real opportunity is glimmering for the emergence of a united Europe, one that could hardly be dreamed of after World War II when the European Coal and Steel Community, the distant predecessor of the European Union, was conceived. Both Estonia and Hungary have made their choice in favour of the European Union. We know that we must hurry, our exam before Europe is close at hand.

As a kindred nation, Estonians have always watched Hungary with a brotherly glance, sympathizing with her afflictions and rejoicing over her successes. And today we have every reason to rejoice over Hungary's present achievements which have taken Hungary to the fore of the reform countries and secured her the position of one of the surest EU entrants. What is especially pleasant is that Estonia is among them alongside Hungary. As a confirmation of that, I might refer to a recent report of the EBRD, according to which Estonia and Hungary are two of the most successful reform states in all Eastern and Central Europe. At the same time we should beware excessive euphoria. Indulging in narcissism might unnoticeably lead to missing the train.

I would prefer not to dwell on the Estonian economic reform and our economic indicators, the more so that this is the topic of the next report by the Estonian Minister of Economics, Mr Jaak Leimann, and naturally he will do it much better than I.

Let me note, however, that we have had to make serious efforts in the name of our present achievements, to despair of many things, at times to move on, as it were, with a taste of blood in the mouth.

Our economic policy priority is the creation of an open and stable economic environment where it would be safe and profitable to act for both domestic and foreign companies. The complete absence of restrictions on the movement of goods and capital has helped Estonia quickly to rejoin the world economy.

The influx of foreign investments into a country serves as a kind of litmus test of the success of its economic reform. And I am happy to mention that not unlike Hungary, Estonia has been successful here. The foreign investments into Estonia over the past five years, amounting at times to as high as 9.5% of the annual GDP, have played an essential role in the restructuring process of the Estonian economy.

Ladies and Gentlemen,

We live in a world that is becoming more and more intertwined. The stormy development of communications and information systems is removing obstacles to relations posed by geographical distances; rather, the more significant distances nowadays are psychological. It is beyond doubt that the key to a future progress is provided by the ability to participate in international co-operation, in intensive exchange of goods, services and ideas.

In this connection I hope that we will soon be ready to sign a free trade agreement and an agreement on the mutual protection of investments, which would provide another stimulus for mutually beneficial economic co-operation.


With these views and hopes I would like to conclude my remarks and to call on you to discover the inexhaustible possibilities offered by the continuously changing world today and tomorrow.

I wish your seminar every success.

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