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Central and Eastern European Update Summary (March 2, 2007)

Core Content Overview

This summary provides an overview of political, economic, and military developments in several Central, Eastern, and Southeast European countries, focusing on their progress toward EU and NATO integration, bilateral relations, and internal reforms.

Czech Republic

• Political Leadership: President Vaclav Klaus announced his intention to run for a second term in 2008. He is currently the most popular and trusted public figure in the country, with over 80% approval in recent polls.
• Nuclear Dispute: A long-standing dispute over the Temelin nuclear reactor with Austria continued, with protests and blockades at border crossings. A joint inter-parliamentary commission was established to resolve the issue.
• Military Reforms: Klaus appointed Vlastimil Picek as the new military chief-of-staff, emphasizing the need to enhance military capabilities and continue reforms for participation in NATO rapid reaction forces.

Hungary

• Party Leadership: Ferenc Gyurcsány was re-elected as MSZP party chairman with nearly 90% of the vote, succeeding Istvan Hiller.
• Public Support: Despite his leadership, public support for the MSZP is at a 10-year low, attributed to unpopular austerity measures aimed at reducing the public deficit.
• International Cooperation: Hungarian Foreign Minister Kinga Goncz participated in a Regional Partnership Initiative meeting with other Central European and international officials, focusing on Kosovo's status and Serbia's EU accession.
• Privatization: The Hungarian State Privatization and Holding Company (APV) approved the privatization of Malev, the national airline, with AirBridge Zrt, a Russian-led consortium, acquiring shares for HUF 200 million.

Poland

• Energy Security: PGNiG signed a USD 360 million agreement with ExxonMobil for a 15% stake in Norwegian offshore gas sites, marking its first major international acquisition in the upstream sector.
• Military Deployment: The 1st Logistic Brigade from Bydgoszcz completed preparations for Afghanistan deployment, supporting the main force of 1,000 troops.
• Foreign Relations: Foreign Minister Anna Fotyga met with Azerbaijani counterpart Elmar Mamedyarov to discuss energy security, aiming to reduce dependence on Russia and increase Caspian oil imports.

Slovakia

• Peacekeeping Redeployment: The Slovak government agreed to redeploy peacekeepers from Kabul to Kandahar, where NATO has increased its presence due to rising insurgent activity. The unit will assist in airport repairs and security.
• Schengen Membership: Interior Minister Robert Kalinak and Czech counterpart Ivan Langer discussed Slovakia's potential entry into the Schengen system, with Langer expressing confidence in meeting requirements by 2007.

Slovenia

• EU Presidency Priorities: Parliamentary committees approved a draft declaration outlining Slovenia's priorities for its 2008 EU presidency, including EU constitution ratification and membership talks for Croatia and Turkey.
• Regional Cooperation: Prime Minister Janez Jansa met with Macedonian counterpart Nikola Gruevski in Skopje, reaffirming support for Macedonia's NATO and EU membership, and signing four bilateral agreements on economic, health, adoption, and labor cooperation.

Baltic States Update

Lithuania

• Energy and Diplomacy: Prime Minister Gediminas Kirkilas and Norwegian counterpart Jens Stoltenberg met in Oslo, discussing a Norwegian gas pipeline to the Baltic region and support for Lithuania's OSCE and OECD memberships.
• NATO-Russia Cooperation: A NATO-Russia Council Workgroup meeting was held in Vilnius, focusing on defense reforms and cooperation for the 2008–2012 period.

Latvia

• Bilateral Relations: Lithuanian Foreign Minister Petras Vaitiekunas met with Latvian Prime Minister Aigars Kalvitis, emphasizing EU and NATO cooperation and ties with Nordic countries.
• Nuclear Project: Both leaders agreed on the need for a scientific and economic viability analysis of the Ignalina nuclear power plant in Lithuania.

Estonia

• Regional Relations: President Toomas Hendrik Ilves participated in a high-level discussion on Georgia with Georgian President Mikheil Saakashvili and Swedish Foreign Minister Carl Bildt.
• EU Relations: Foreign Minister Urmas Paet attended a conference on Georgia's EU integration alongside Georgian and Swedish officials, highlighting shared commitments to strengthen Georgia-EU relations.

Southeast European Update

Bulgaria

• Security Cooperation: A Bulgarian delegation led by Interior Minister Rumen Petkov visited Israel, signing a bilateral agreement on combating drug trafficking, human trafficking, and terrorism.
• Tax Treaty: Finance Minister Plamen Oresharski and U.S. Deputy Secretary Robert Kimmitt signed a bilateral income tax treaty to avoid double taxation and foster investment.
• Political Challenges: The right-wing opposition submitted a no-confidence vote against the Socialist-led government, though it is unlikely to succeed due to the government's majority.

Croatia

• EU Accession: The European Parliament prepared for a Joint Parliamentary Committee session with Croatia, where Allan Jones highlighted significant progress toward EU membership.
• Economic Support: The EBRD provided a EUR 10 million loan to support small entrepreneurs in Croatia, aiming to foster economic growth and social benefits.
• Bilateral Cooperation: Croatian and Montenegrin ministers signed a Protocol to establish a Business Council, focusing on economic, tourism, and transport cooperation.

Romania

• NATO and EU Support: President Traian Basescu welcomed Albanian Parliamentary Speaker Jozefina Coba Topalli, affirming Romania's support for Albania's NATO and EU accession.
• U.S. Relations: A U.S. delegation led by Congressman Tom Lantos visited Romania, raising concerns about political stability and minority rights.

Serbia

• Genocide Ruling: The International Court of Justice (ICJ) ruled that Serbia is not directly responsible for the Bosnian Muslim genocide (1992–1995), but failed to prevent it and neglected obligations to punish perpetrators.
• Political Response: President Boris Tadic proposed a Srebrenica Declaration to condemn the crimes and promote cooperation with The Hague. Serb opposition also supported the ruling and called for accelerated war criminal extradition.

About the Briefing

• Producer: Select Briefing is produced by the New European Democracies Project at the Center for Strategic and International Studies (CSIS).
• Purpose: The briefing monitors developments in Central, Eastern, and Southeast Europe, focusing on new EU member states and countries in the enlargement process.
• Team: The project is directed by Janusz Bugajski, with Ilona Teleki as deputy director and Milena Staneva as research associate and editor. Research interns include Besian Bočka, Jasenka Jocic, Adrienn Petrovics, and Rossen Tsanov.