Balkan Leaders Pledge Economic Cooperation

Sarajevo | 21 November 2009 |

Five Balkan leaders pledged Friday in Sarajevoto foster economic cooperation between their countries and encourage further investment in infrastructure, voicing hope that this joint effort will help their countries overcome the global economic slowdown.

Respective presidents of Albania, Bosnia, Croatiaand Montenegro- Bramir Topi, Zeljko Komsic, Stjepan Mesic and Filip Vujanovic - took part in a two-day regional forum to discuss economic challenges faced by their countries.

Bulgaria’s deputy president Angel Marin also joined the high-level gathering.

“Your presence here reflects our common aspiration for better regional cooperation, both economic and political,” Komsic said.

Komsic added that it was very important that regional political and business leaders are willing to talk “with a view to finding solutions for a difficult economic situation caused by the global economic crisis."

All five countries, except for Albania, registered an economic contraction last year. Their leaders said cross-border cooperation would help pull their countries out of the current slowdown and called on regional companies to increase jointactivities and thus facilitate access to foreign markets.

According to a study prepared for the forum, only Albania’s economy has grown last year, attracting a steady flow of direct foreign investment, which president Topi said was due to a good regulatory framework and the willingness of large expatriate Albanian community to invest in their home country.

Albania’s gross domestic product, was expected to grow 0.7 percent this year and 2.2 percent in 2010.

The study showed that the Balkan countries rely heavily on external financial sources, including loans and remittances.

Regional leaders said that their respective countries are planning to increase infrastructure investment, particularly in tourism and energy.

However, they agreed that cross-border cooperation is the best way to cushion the effects of the global crisis.

“It is important that we hear from one another about the position of our countries and our plans for the future," said the Bulgarian deputy president Angel Marin.

“One of the ways for overcoming the crisis is to increase spending, and we can achieve this if we increase our trade exchange," he added.

“Our economies are very compatible and we can expect greater (joint) activity in European and non-European markets,” Stjepan Mesic said.

“We already have some favorable opportunities for joint activity of our construction, engineering and other companies in international markets,” Komsic added.

Presidents also voiced hope that regional cooperation could help their countries to stem the current brain drain.

“America coughed, Europe contracted pneumonia and we have gotten ebola. We are failing faster than others,” said Zlatko Lagumdzija, the author of the study which collected economic forecasts from international financial agencies and banks.

Lagumdzija added that the forum has helped “to give a clear diagnosis and to more or less determine the therapy.”

“The only question now is if the patient is willing to cooperate,” he concluded.

Presidents of Sloveniaand Serbia, Danilo Turk and Boris Tadic respectively were also scheduled to take part in the meetings. However, Turk could not have attended because the fog at Sarajevo’s airport prevented his plane from landing, while Tadic had to stay in Serbiadue to the death of the Serbian Orthodox Patriarch Pavle.