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Today, Estonia has a distinctive geographical position on the external border of the European Union. Estonia is the border area of the European Union. The country is not evenly developed in socio-economic terms, and in order to ensure sustainability, especially rural areas need concentrated attention. Estonia is aware of the challenges the border regions are facing, notably economic and social development, and the need to improve infrastructure. One of the possibilities to improve the level of socioeconomic development in the lagging-behind areas is co-operation with the border areas of the neighbouring countries. A number of problems facing border regions today can only be solved by common action on both sides of the border. Joint action can also take advantage from the experience of both sides. Estonia is a full member of the European Union as of 1 May 2004. From this date on, Estonia has had the opportunity to participate in several Community Initiative INTERREG programmes co-funded by the European Regional Development Fund. However, for Estonia, cross-border co-operation is not something new. Estonia has participated in various cross-border co-operation programmes for almost 15 years, earlier than Estonia became the member state of the EU. Estonian organisations learned from our neighbours in Finland and Sweden about how to target common problems. We were happy about the possibility to receive new contacts, discuss common problems of the Baltic Sea region, and to find solutions to these. In terms of its general philosophy, cross- border co-operation applies to all aspects of daily life in the border regions, and includes a broad scope of activities. Cultural cooperation is often the first step for creating contacts between people across the borders, and raising mutual awareness of the common problems and development potential. The Community Initiative INTERREG programmes have proved to be a useful tool in the creation of a more balanced development in Europe, contributing to the reduction of the negative effects of borders. In that respect, the INTERREG programmes have generated a clear European added value - making the integration in Europe more visible to its citizens. The Estonia-Latvia-Russia INTERREG IIIA Priority was the main instrument for financing cross-border co-operation projects during 2004-2006 in the region. I am glad to notice the interest of Estonian organisations in participating in cross-border co-operation projects. The priority has financed joint activities of the Estonian and its neighbours’ municipalities and non-governmental organisations in the large variety of sectors such as environmental protection and development, transport and infrastructure, tourism and economic development. Projects in the field of training and cultural exchange have also been supported by the priority. A number of concrete cross border projects were very successful – not to mention the increased contacts between our regions, local governments and our people developed during the cooperation. Previous projects have prepared the ground for future co-operation. There are further opportunities which could be used from both sides. And – there will be more opportunities for cross-border co-operation during 2007-2013 under the European Territorial Co-operation Objective programmes. I hope that the widening opportunities for cross-border co-operation will be actively used by Estonia and its neighbours. All it requires is a willingness to work together and do something about the common problems. The problems of local administrations such as lack of human 1 and financial resources but also lack of experience with project management have not been overcome yet. But the willingness to do something about the problems is more important than that. Our co-operation can bring tangible improvement to the quality of life of people in the border regions and it is our task to use the possibilities to do so. Vallo Reimaa Minister for Regional Affairs Estonia 2