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Select Briefing Summary: Europe East

Core Content

This briefing provides an overview of political, economic, and social developments across several Eastern, Central, and Southeast European countries as of September 2004. It highlights key political movements, foreign policy priorities, economic strategies, and public opinion trends, with a focus on the newly joined EU members and those preparing for future accession.

Main Political Developments

Poland

• The Polish Peasants Party (PSL) launched a national campaign to collect signatures for an appeal to the Polish government to withdraw troops from Iraq immediately.
• The appeal lacks legal force but aims to build public support.
• The Polish Social Democrats argue that the Polish contingent should remain in Iraq until the planned general elections in January 2005.
• Disputes among political parties reflect differing views on the success of the stabilization mission in Iraq.

Czech Republic

• Prime Minister Stanislav Gross announced a referendum on the EU Constitution will be held simultaneously with the next general elections in June 2006.
• Foreign Minister Cyril Svoboda emphasized that the country's international priorities remain unchanged, focusing on European integration, trans-Atlantic alliance, and counter-terrorism.
• The Czech government plans to establish a Czech-German military unit within the EU defense structure to foster partnership and mutual trust.

Hungary

• After the resignation of Prime Minister Peter Medgyessy, the Hungarian Socialist Party (HSP) overwhelmingly supported Ferenc Gyurcsány as his replacement.
• President Ferenc Madl will announce the official nominee for the position on 27 September.
• Gyurcsány, a former advisor to Medgyessy, is seen as a modernizer of the HSP and is among Hungary's wealthiest citizens.

Slovakia

• The Slovak Ministry of Social Affairs and Family plans to increase the minimum wage from SkK 6,080 to SkK 6,500 (USD 185 to USD 197) effective 1 October 2004, a 6.9% increase.
• Unions demand a higher increase of SkK 7,190 (USD 218) to offset 8.5% annual inflation.
• Robert Fico, leader of the opposition Smer, is the most trusted politician in Slovakia with 22.6% public support, according to a recent poll.

Economic and Social Developments

Slovakia (continued)

• Eurostat reported that Slovaks are the most vulnerable to poverty among the 10 new EU members, with 21% living below the poverty line.
• The Slovak Youth Party (SMS) aims to gain at least 8% of the vote in the upcoming elections and has outlined a platform focused on youth issues like employment and the environment.

Romania

• Romania announced a €1 billion border security project to prepare for EU accession in 2007.
• The goal is to fully comply with the Schengen Agreement by December 2009.
• The Romanian Finance Ministry stated that the government will lower the inflation rate from 14.1% in 2003 to 9% by the end of 2004, citing improved tax collection and economic growth.

Regional Developments

Baltic States

• Lithuania is concerned about Russian broadcasts potentially being used as Kremlin propaganda. The government has not yet introduced legislation on the issue.
• Latvia approved a Development Cooperation Plan for 2005, aiming to support democratic reforms in other countries and gain economic benefits from future partnerships.
• Estonia decided not to hold a referendum on the European Constitution, opting for parliamentary ratification instead. The Centre Party supports a referendum, but most parliamentarians view it as unnecessary.

Southeast Europe

• Slovenia is preparing for general elections, with the Slovenian Youth Party (SMS) targeting 8% of the vote.
• The SMS platform will focus on youth-related issues, including employment and the environment.
• Croatia implemented a strategy for tighter financial control in the public sector to meet EU standards. This includes setting up a Central Harmonization Unit and having independent auditors report directly to ministers.
• The strategy is expected to save at least 10% of funds within the Ministry of Health and Social Welfare.

Other Developments

European Union

• The European Commission proposed better interlinking of economic governance instruments in response to a June European Council request.
• The focus is on budgetary coordination and surveillance to address varying economic conditions in the 25-member Union.

NATO

• A 30-soldier German contingent arrived in Faizabad, Afghanistan, as part of NATO's Provincial Reconstruction Team (PRT).
• The PRT will expand to 85 soldiers and will be joined by a 65-man temporary unit to support the October presidential elections.

Final Olympic Medal Count (as of 30 August 2004)

About the Briefing

• Produced by: CSIS East Europe Project
• Date: September 3, 2004
• Volume: 1 | Number: 11
• Team: Janusz Bugajski (Director), Ilona Teleki (Fellow), Milena Staneva (Research Assistant and Editor), Jane Sklenar, William Sullivan
• Note: CSIS does not take specific policy positions and aims to provide nonpartisan analysis of developments in Eastern Europe.