Master programme in Economic Growth, Innovation and Spatial Dynamics Economic Partnership as a Stabilizing Factor for Shaping Political and Social Cooperation The case of Evros-Maritza-Meric Euroregion by Iryna Turlay [email protected] Abstract: Cross-border integration between Greece, Turkey and Bulgaria has been recently dominated by traditional perception of political diplomacy that overrides the considerations for economic cooperation. This project suggests that more in-depth case analysis of the Evros-Maritza- Meric Euroregion will elucidate the evolution of this concept. The existence of long-term barriers in the cross-border region impeded the process of synergies exploitation as well as utilization of existing driving forces. The recent EU enlargement and Turkey‟s EU membership negotiations lessened considerably the tensions in the region and opened up new venues to fully explore the potential of three corner area i. e. the Evros-Maritza-Meric Euroregion. Key words: cross-border integration; Greece, Turkey, Bulgaria; synergy; barriers; driving forces EKHR21 Master thesis (15 credits ECTS) June 2011 Supervisor: Karl-Johan Lundquist Examiner: Lennart Schön Website www.ehl.lu.se Economic Partnership as a Stabilizing Factor for Shaping Political and Social Cooperation The case of Evros-Maritza-Meric Euroregion 2 Table of Contents Abstract: .........................................................................................................................................1 1. Introduction................................................................................................................................3 2. Method and material..................................................................................................................7 2.1. Choice of data ..........................................................................................................................7 2.2. Method limitations .............................................................................................................8 2.3. Sources and source criticism ...............................................................................................8 3. Theoretical framework .............................................................................................................10 3.1. Cross-border integration ...................................................................................................10 3.2. Summary ..........................................................................................................................18 4. Empirical Study .........................................................................................................................20 4.1. The Evros-Maritza-Meric Euroregion ................................................................................20 4.2. Obstacles and chances for cross-border cooperation .......................................................25 4.3. Patterns of flows within the eligible area ..............................................................................28 4.4. Prospects of economic cooperation ..................................................................................31 4.5. Discussion .........................................................................................................................33 5. Conclusion ................................................................................................................................36 Reference List ...............................................................................................................................38 Annexes ……………………………………………………………………………………………………...42 Economic Partnership as a Stabilizing Factor for Shaping Political and Social Cooperation The case of Evros-Maritza-Meric Euroregion 3 1. Introduction “The market can clean the path but it is politics which places the concrete to make it a road” President of the Greek Enterprises Federation et al Tsarouhas 2009 After the Cold War, economic changes accompanied by increased mobility of people led to the emergence of new demands for regional regulation and rebuilding of trust across Europe. In recent years we witness tremendous changes in the realm of international politics preparing the ground for more efficient interregional cooperation where economic factors (rather than pure political formal negotiations) actually preside over or at least influence significantly power relations among states (Tsarouhas 2009). Such an assumption undeniably challenges the ideas of neorealist theory regarding its state-centric orientation and its indiscriminate use of a vaguely defined „national interest‟ as the motivating factor of state performance (ibid). The three countries - Greece, Bulgaria and Turkey - share a long history of political tensions and conflicts thereby attracting considerable attention of historians and political scientists. However, the perception of conflict superseded considerations for cooperation particularly in the field of economic partnership (Kollias & Günlük-Senesen 2003: 1). Clearly, it is not possible to find two all the more three matching regions for a process of successful integration. However, for many countries, Euro regions turned into the role models of power rearrangement between the government and the border regions in dealing with actual problems linked to social and political areas as well as setting off a variety of projects targeting development of interregional growth possibilities. The cross-border relationships in the Evros-Maritza-Meric Euro region between Greece- Bulgaria and Turkey are complex and as a model of regional cooperation not easily understood at a glance. The three countries have different economic and political structures and account of EU membership accompanied by rich and common historical heritages. This makes this case a real research challenge; as much as the tools used to facilitate cross-border cooperation in the eligible area are also subject to a certain degree of ambiguity. Economic Partnership as a Stabilizing Factor for Shaping Political and Social Cooperation The case of Evros-Maritza-Meric Euroregion 4 My study was originally motivated by my transnational observance of the remarkable upsurge of interregional cooperation and partnership as means of exchanging practices to fully utilize a regional potential. Preliminary, this presupposition began to shape itself by my seeking to examine in which ways economic potential i.e. industrial complementarities, which are traditionally thought to be the indicators of interregional synergy, affects political stability and collaboration in the Evros-Maritza-Meric Euro region. In the process, however, it became clear to me that to identify and highlight economic complementarities in the region that includes three countries with different organizational structures and the account of EU membership appears to be a rather challenging task. In seeking an understanding of obstacles and chances for economic interaction within the chosen geographical area, the barriers and driving forces for integration are to be identified and evaluated followed by further elaboration of the cross-border linkages by evaluating prospect industrial complementarities, FDI flows and trade levels in the Evros-Maritza-Meric Euroregion. Prior literature documents that the development of international ties to overcome difficult national disputes is not a new phenomenon. It is perceived as a quite logical way to open up possibilities for economic growth and collaboration. Take for instance Germany‟s border regions with France or the Netherlands. These regions are no longer considered to be challenging regions because of successful cross-border cooperation channeled via Euro regions. The Rhine river was once perceived as the „Great Divide‟ by the French and Germans, yet has been transformed into „unparalleled axis and pole of development‟ (Hansen, 1983: 258). The same applies to the successful Dutch–German cross-border cooperation that has not only enhanced economic development of the region, but has also „deepened‟ integration between the states; thereby eliminating the distrust between the two nations (Grix & Knowles 2002). A number of scholars have described cross-border cooperation extensively from a variety of disciplinary perspectives. However, these works are highly imbued with traditional inflections, arguing that strengthening of cross-border cooperation will eventually weaken the position of a nation-state. At the same time, they also question an often-mentioned supposition about globalization and its impact on state and state borders. Other, more empirically focused works, contribute greatly to the cross-border heritage by scrutinizing specific cases from different perspectives (Perkmann 2003; Grix & Knowles 2002; Anderson Economic Partnership as a Stabilizing Factor for Shaping Political and Social Cooperation The case of Evros-Maritza-Meric Euroregion 5 1997; Anderson & O‟Dowd 2002; Anderson & O‟Dowd 1999; Krätke 1999; Lundquist & Trippl 2011; Trippl 2010; Lundquist & Winther 2006). The historical evolution of the relationship between Greece, Bulgaria and Turkey has been described by academics, NGOs, governments and it is certainly not an unexplored domain of study (Kollias & Günlük-Senesen 2003, Tsarouhas 2009; Rumelili 2003, Papadopoulos 2008). The majority of the literature has been politically centered; however, Tsarouhas in his analysis deviates from the “political harmonization to economic