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Central European Update Baltic States Update CSIS New European Democracies Project Volume 3 ¦ Number 24 ¦ June 23, 2006 Central European Update Czech Republic ¯ ¯ ¯ country in harmony with the EU’s Poland is preparing to deploy in The South Korean car parts maker On 21 June Hungarian Oil and regional system in order to facili- early July the 56th Helicopter Plakor is planning to build a new Gas Company MOL signed an tate the absorption of EU subsi- Regiment to Iraq. The unit’s main plant in the Czech Republic near agreement with Russian Gazprom dies. The motion requires a two- duty will be to provide combat the planned location of the Hyundai on extending the Bluestream pipe- thirds majority of MPs to pass. support and transport for ongoing factory in Novosice. After its com- line from Turkey. Economy min- However, opposition parties have operations and assist in humani- pletion, Plakor will provide Hyun- ister Janos Koka announced, argued that there is no reason to tarian relief. after meeting with Gazprom CEO give up the country’s traditional dai’s plant with plastic components Slovakia for automobile production. Plakor Alexei Miller, that they also es- 19-county system. The elections held on 17 June in will also supply the Korean-owned tablished a joint research com- pany that is to assess the possibil- Poland Slovakia resulted in the victory of KIA factory in Slovakia. Polish Foreign Minister Anna the left-leaning Smer party led by ¯ ¯ ¯ ity of building gas reserve termi- Fotyga started a three-day visit in Robert Fico. Election results The Czech electricity company nals in Hungary. Prime Minister Washington on 18 June. She met gave Smer 29 percent of the vote, Energo-Pro has won a USD 312 Ferenc Gyurcsany held talks with Miller as well, along with with U.S. Secretary of State Con- with 18 percent going to the rul- million tender for the privatization doleezza Rice and other high- ing Christian Democrats. Outgo- of six hydroelectric power plants Gazprom deputy-CEO Aleksandr ranking officials to discuss U.S.- ing Prime Minister Mikulas and transmission grids in Georgia. Medvedev. Koka pointed out that Polish relations and the course of Dzurinda was in power during Energo-Pro outbid several foreign Hungary supports the construction reforms in Ukraine. Further dis- Slovakia’s entry into NATO and and domestic investors including of the Nabucco pipeline, which is considered a rival route importing cussions were held on the Polish the EU and his government has Russia’s Unified Energy Systems. military presence in Iraq and Af- been credited for successful free- This deal follows an agreement gas from Iran and bypassing Rus- ghanistan and the possibility of market reforms that turned Slova- concluded in April with Turkey for sia. He noted that the government deploying anti-rocket defense kia into one of the most successful the construction and operation of remained interested in building a systems in Poland. economies in Central Europe. two hydropower plants near the liquefied natural gas (LNG) re- ¯ ¯ ¯ Fico had promised to increase Georgian border. serve and pipeline to Croatia. ¯ ¯ ¯ The first Polish contingent to be social benefits, improve health- Hungary On 21 June the Hungarian parlia- deployed in an African country care, and address the issue of high On 22 June U.S. President George ment started the debate on amend- departed from Wroclaw on 19 unemployment. W. Bush visited the Hungarian ing the constitution, which would June to take part in a four-month ¯ ¯ ¯ capital to mark the 50th anniver- allow for comprehensive reform tour with the EU peacekeeping The international ratings agency sary of the 1956 Hungarian Revo- of local government. One of the mission in Congo. The entire EU Standard & Poor’s warned on 19 lution. Bush met Hungarian Presi- proposed changes envisions de- force is comprised of two thou- June that Slovakia’s rating could dent Laszlo Solyom and thanked centralizing the public administra- sand peacekeepers of which 131 weaken if the new cabinet wasted Hungary for its contribution to the tion by establishing regional gov- are Polish soldiers. The main resources and postponed the missions in Iraq and Afghanistan. ernments and ceding a variety of mission of the EU contingent will planned introduction of the euro Solyom emphasized that the fight central powers to them. Justice be to provide security during by 2009. Smer leader Robert Fico against terrorism is a common in- minister Jozsef Petretei told par- Congo’s elections. The Polish unit stated that he intends to postpone terest for both countries, but that liament that the first regional as- is in charge of the safety of EU euro adoption until the situation is every step taken should be in line semblies should be elected in mission commanders and UN more favorable for the Slovak with international law. Bush also 2009, at the same time as the next international staff, as well as the economy. A lower rating for Bra- met with Prime Minister Ferenc European parliamentary elections. security of N’Dolo international tislava could signal difficulties in Gyurcsany and discussed the issue According to the plan, seven re- airport in Kinshasa. upcoming loan negotiations. ¯ ¯ ¯ of voiding visa requirements for gions will be established in the new EU member states. Baltic States Update Lithuania stained. Under Lithuanian law, On 21 June Lithuanian President Estonia On 20 June the Lithuanian parlia- approval of the prime minister Valdas Adamkus began a two- On 16 June Estonia opened a new ment rejected President Valdas requires a simple majority vote, day visit to Turkey. Meeting with deep-sea port on the western is- Adamkus’ nomination of Social which means his candidacy Turkish Prime Minister Recep land of Saaremaa. The port, which Democrat Zigmantas Balcytis for needed at least 67 votes to pass. Tayyip Erdogan, Adamkus em- is expected to help boost revenues prime minister. Out of 132 parlia- The president has 15 days to phasized Turkey’s role in energy from tourism, can accommodate mentarians, 52 voted in favor of nominate a new prime minister. transit and asserted that Turkey cruise ships and other passenger Balcytis, 48 against, and 32 ab- ¯ ¯ ¯ belonged in the European Union. vessels up to 650 feet long. Page 2 Select Briefing Europe East Baltic States Update Contd. Estonia contd. must file declarations with the State Revenue nicipalities and other public organizations. On 20 June Estonian President Arnold Ruutel Service by 1 April 2008 stating their 2007 in- ¯ ¯ ¯ promulgated a law that postpones increases in come and assets. In coming years, such declara- On 22 June Latvian Foreign Minister Artis excise tax rates on alcohol, tobacco, and fuel tions will have to be filed only by people whose Pabriks, speaking at a meeting of the EU- for one and a half years. The law is intended to assets change as specified by specific criteria. Russia Parliamentary Cooperation Committee curb inflation and thereby help Estonia meet ¯ ¯ ¯ of the European Parliament, said that Latvia, the Maastricht criteria for adopting the euro. On 20 June the Latvian Cabinet of Ministers as a member state of the EU, seeks a friendly exempted citizens of Belarus from paying visa and pragmatic relationship with Russia. Latvia Latvia fees until Latvia’s accession to the Schengen is eager to sign a Latvia-Russia border treaty On 20 June the Latvian government intro- zone. The exemption is intended to promote and an agreement to promote cooperation duced a law according to which all residents contacts and cooperation between NGO’s, mu- between the two countries. Southeast European Update Bulgaria Angrokor President Ivica Todoric biggest part of the budget deficit ministry released a collection of On 21 June Bulgaria’s parliament investing USD 138.3 million in the from the domestic market. documents, dubbed “The White passed new legislation allowing Croatian foodstuffs company. As a ¯ ¯ ¯ Paper,” outlining Slovenia’s posi- for stricter measures in combating result, the EBRD gained an 8.33 On 20 June, Rompetrol Rafinare tion on the unresolved border money laundering in line with EU percent interest in the company, announced that it had renewed a issues with Croatia. The disputed standards. The move comes after allowing an EBRD representative USD 110 million loan with Banca areas lie along the Bay of Piran the May 2006 monitoring report to be on Agrokor’s supervisory Comerciala Romana (BCR), HVB and the Mura River, which pro- by the European Commission board. Thus far, the EBRD has Bank Romania, and Bank Austria vide Slovenia access to the Adri- criticized Bulgaria’s finance min- invested USD 1.6 billion in Croatia Creditanstalt to finance imports of atic Sea. Croatian Prime Minister istry for its inability to obstruct by financing more than 76 projects. crude oil, fuel oil, and gas con- Ivo Sanadar is to release “The suspicious financial transactions. ¯ ¯ ¯ densate. Rompetrol Rafinare is the Blue Pages,” which outlines Croa- ¯ ¯ ¯ On 21 June Croatian President refining unit of the Romanian oil tia’s opinion of the “The White The National Statistics Institute Stjepan Mesic met with Dutch group Rompetrol. Paper” and Zagreb’s position on Prime Minister Jan Peter Bal- the disputed areas. Croatian Presi- announced on 19 June that Bul- Slovenia garia’s economy grew by 5.6 kenende to discuss strengthening dent Stjepan Mesic stated that he relations between the two coun- On 17 June Slovenian Prime Min- percent in the first quarter of ister Janez Jansa met with Gaz- would seek an international judi- tries. Balkenende stressed that ciary court if the issue could not 2006. The increase was mainly a prom President Aleksey Miller to result of the 8.8 percent expansion Croatia’s path to the EU should not be resolved bilaterally.
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