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Central and Eastern European Update Summary (July 20, 2007)

Core Content

This summary provides an overview of recent developments in several Central, Eastern, and Southeast European countries, focusing on political, economic, and international relations. It includes updates on EU integration, energy projects, defense policies, and bilateral agreements.

Czech Republic

• Schengen Zone Preparation: The Czech government plans to launch an information campaign to prepare for Schengen zone entry starting in 2008.
• Asylum Rules: Interior Minister Ivan Langer introduced a new package of 20 laws to tighten asylum rules, which will be debated in Parliament.
• EU Constitutional Treaty: Prime Minister Mirek Topolanek stated that holding a referendum on the new EU constitutional treaty would push the country further from the EU mainstream, arguing that the new framework remains mostly unchanged from previous agreements.

Hungary

• Foreign Control Prevention: Prime Minister Ferenc Gyurcsány requested regulations to prevent foreign state-run companies from gaining control over strategically important Hungarian sectors. These regulations are expected to be implemented by the end of August.

Poland

• Work Permit for Foreign Workers: As of July 20, Poland will allow residents from Ukraine, Russia, and Belarus to work in all sectors for a maximum of six months per year due to the country's growing economy.
• Missile Defense Base: Polish President Lech Kaczynski visited the United States, where discussions with President George W. Bush focused on the proposed missile defense base in Poland.

Slovakia

• EU Integration: Slovakia is expected to join the Eurozone on January 1, 2009. Dual pricing will be required for at least one year, with strict price monitoring to prevent illegal hikes.
• Energy Cooperation: Italian Prime Minister Romano Prodi visited Slovakia, discussing EU issues and energy cooperation. The project to complete the third and fourth units of the Mochovce nuclear power plant is expected to start in the fall of 2007.
• Nuclear Power Plant: Enel, an Italian energy company, is expected to complete the new units of the Mochovce nuclear power plant.

Slovenia

• Bilateral Relations: Serbian Foreign Minister Vuk Jeremic visited Slovenia, discussing bilateral relations, Kosovo's status, and Euro-Atlantic integration. Slovenian officials assessed relations with Serbia as very good, especially in trade.
• Albanian Relations: Slovenian Foreign Minister Dimitrij Rupel met with his Albanian counterpart, supporting Albania's NATO and EU integration efforts and discussing the reopening of the Albanian embassy in Ljubljana.
• Cross-Border Rail Link: A memorandum was signed between Slovenian and Italian transport ministers to develop a cross-border rail link between Divacam and Trieste, part of the Trans-European Transport Network (TEN-T), estimated at EUR 139 million and to be completed by 2013.

Baltic States Update

Estonia

• Energy Policy Coordination: MEP Tunne Kelam recommended the EU appoint a coordinator for external energy policy to ensure adherence to competition rules.
• NATO Commitment: Prime Minister Andrus Ansip met with NATO's Military Committee, reaffirming Estonia's commitment to NATO operations and announcing an increase in defense spending to 2% of GDP by 2010.

Latvia

• Nuclear Power Plant in Lithuania: The newly elected Latvian President Valdis Zatlers visited Estonia and Lithuania, discussing the construction of a new nuclear power plant in Lithuania and the need for consensus on minority shareholder interests.

Lithuania

• Gazprom Power Plant: OJSC Gazprom announced plans to build a new power plant in Lithuania based on the Kaunas Heat Power Plant, expected to be commissioned in 2010 to address potential electricity shortages.
• Diplomatic Engagement: German Foreign Minister Frank-Walter Steinmeier visited Lithuania, discussing the U.S. missile defense shield and the withdrawal from the Conventional Forces in Europe Treaty. He proposed a joint meeting with Lithuanian, German, Polish, and Russian top diplomats to address Kaliningrad-related issues.

Southeast European Update

Bulgaria

• Trade Deficit: The National Statistical Institute reported a first-quarter trade deficit of 4.1 billion leva (USD 2.7 billion), with exports to EU states increasing by 12.7% and nearly doubling to CIS countries.
• Defense Report: The Bulgarian Parliament adopted a 2006 defense report outlining military operations and infrastructure development for the Black Sea region, as well as recommendations for updating strategic documents.
• Libyan Prisoners: The High Judicial Court of Libya commuted the death sentences of five Bulgarian nurses and a Palestinian doctor to life imprisonment after eight years of legal proceedings. Bulgaria will apply for the transfer of its citizens and has pledged financial aid to the families of infected children.

Croatia

• Bilateral Agreements: Croatian Prime Minister Ivo Sanader signed a Friendship, Good Neighborhood and Cooperation Pact with Greek Prime Minister Costas Karamanlis, focusing on strengthening bilateral relations in commercial, economic, and tourism sectors.
• Military Reforms: The Croatian Defense Ministry delegation met with Portuguese Defense Minister Nuno Severiano, discussing military reforms, Euroatlantic integration, and priorities for the Portuguese EU presidency.

Romania

• Energy Depletion: A report indicated that Romania's oil and natural gas reserves would be fully depleted in 15 years, necessitating a new strategy involving coal and renewable resources.
• EU Funds: Romanian Prime Minister Calin Popescu-Tariceanu and European Commissioner Danuta Hubner signed a reference document for the transfer of EU structural and cohesion funds to Romania, amounting to EUR 19.67 billion, aimed at increasing competitiveness and reducing regional disparities.

Key Information

• EU Integration: Several countries are preparing for or have already joined the EU, with discussions on Eurozone entry, constitutional treaties, and NATO commitments.
• Energy Projects: Major energy initiatives are underway, including power plants and cross-border rail links, to address energy security and economic growth.
• Bilateral and Regional Relations: Diplomatic engagements highlight the importance of regional cooperation, especially in the context of EU enlargement and Euro-Atlantic integration.