| Georgia
(Sakartvelo / Грузия) |
Russian helicopters seen in Georgian airspace
The Foreign Ministry has expressed concern at Russia's continuous breach of its
undertakings under the Six-Point Ceasefire Agreement and its reluctance to sign the
non-use of force agreement with Georgia. It went on to accuse the Russians of
masterminding terrorist attacks based in the occupied territories (South Ossetia and
Abhazia), as well as repeated intrusions into the Georgia's airspace. The ministry said
these served as clear evidence of aggressive intentions toward Georgia.
On 7 September the Ministry of Foreign Affairs released a statement regard violation of
the Georgian airspace by Russian helicopters. “At 1:05 pm three Russian MI-8 military
helicopters breached Georgian airspace over the Tanie Gorge near the Shatili village in
severe violation of the fundamental principles of international law, as well as
sovereignty and territorial integrity of Georgia. The helicopters intruded 3 km deep
into Georgian airspace and circled around the Georgian border police checkpoint for
approximately 15 minutes. Afterwards the helicopters left Georgian airspace.”
The ministry believed that the action was clearly aiming at provoking a response from the
Georgian side, and intended to escalate the security situation. The Georgian side, it
said, had acted responsibly and with restraint, as further deterioration of the security
was not in the interests of Georgia and the wider region.
Under these circumstances, it becomes obvious that new provocations should be expected
from the Russian side.
The Ministry appealed to the international community to both provide a proper assessment
of the recent violation of Georgian airspace by Russian armed forces and to insist on full
implementation by Russia of the August 2008 Cease-Fire Agreement.
President hosts top first year students in his vineyard
At the weekend of 10-11 September President Mikheil Saakashvili hosted a group of students
in his vineyard. These were first-year students who had gained the highest scores in the
national entrance exams. Minister of Education, Dmitri Shashkini was also present at the
occasion.

The President emphasised the significance of the engineering professions
and natural sciences - the best ten students were enrolled at these faculties this year.
The President bought half a hectare of land with a vineyard on it in the Kvareli district
of the Kakheti Region for 30,000 lari (about £11,400) last year and three months ago
began to build a house there. Students were the first guests of the president on this new
land.
President presented the best ten students with personal computers. He suggested that they
use them to create new computer programs for school pupils; the Ministry of Education
would purchase those programs and introduce them into the school program.
Dmitri Medvedev recalls Georgian conflict three years
earlier
According to Russian President Dmitry Medvedev the night of 8 August 2008 was one of the
hardest in his life. In an interview in the Black Sea resort of Sochi, Medvedev recalled
the period of war in 2008. “On the night between 7th August and 8th August, I received a
phone call from the defence minister. I was on vacation at the time, sailing down the
Volga River. And the whole world was looking forward to the Olympics that were about to
take place in China. The Minister told me that Georgia had launched a full-scale combat
operation. To be honest, my initial reaction was complete doubt. I told the Minister: “We
should check this. Is Saakashvili completely out of his mind? Maybe it’s just a
provocative act, maybe he is stress-testing the Ossetians and trying to send us some kind
of messages?”
The interviewers asked Medvedev to comment about the fact, that before starting the war a
lot of inhabitants of South Ossetia had been evacuated. “Some of them may have been
away, certainly. But my answer to your question is –the number of casualties should
never influence your decision on what retaliation measures you are going to take.”
Was asked about whether it was the intervention by the French President Nicolas Sarkozy
that persuaded him to halt the Russian forces’ march towards Tbilisi.
“Of course not. No head of state is capable of talking another head of state into
anything. Let me stress again: taking cities was never our goal. Our goal was to stop the
war machine which was at the same time aimed at two breakaway territories and regrettably
at our citizens. What Sarkozy did was very kind. He called me and said: ‘I heard there
was conflict, do you want me to fly over to Moscow?’ I said I would be happy to see him.
He told me: “I am currently chairing the EU. I'll come over to discuss the incident.”
… He came to Moscow and we talked. I explained my position to him. He told me: ‘I
understand and I agree. Some things I will be able to say in public, some I won’t. But
regardless of that I want to have a part in stopping this conflict.’ I told him: ‘All
right, let’s plan together.’ I told him he could take the plan to Georgia. The best
thing about what he did was probably that he had the courage to come to Russia at a time
when literally everyone was talking about what we had done. He was brave enough to go on
to Georgia with our initiatives and he garnered a satisfactory reaction from the Georgian
authorities, President Saakashvili first and foremost. That was his contribution to the
diplomatic cause that helped to solve the conflict. To this day I am very thankful to
President Sarkozy for having done that. His role is very important, but he never said
anything like ‘maybe you should stop here’. He understood that my decisions were my
own.”
President Saakashvili's office said that following the interview given by Medvedev it had
been flooded by questions from journalists, prompting president's spokesperson, Manana
Manjgaladze, to comment. “We've once again listened to the Cold War-era phrases about
Western conspiracy against 'Soviet Russia'. All of this causes the concern of Georgia and
not only of Georgia. It is regrettable that the President of a neighbouring country speaks
in such manner not only about Georgia, but about other neighbours and their statehood as
well and expresses complete disrespect towards partner countries.” She said that it was
‘alarming’ that the Russian President “still justifies with cynicism the ethnic
cleansing and occupation” carried out against Georgia.
Experts to observe melting glaciers in Georgia
For purpose of avoiding possible natural disasters, a geological expedition has been
planned to the Devdorak Glacier in order to examine the process of ice melting there.
It was reported on 9 August that the decision was adopted by the Ministry of Environmental
Protection. Representatives of the environmental ministry are expected to observe the
alarming situation on the glaciers for a period of one month.

Devdorak is a valley glacier on the north-eastern slope of Mount Kazbek
in the Caucasus mountain range on the northern border opf Georgia. The glacier is 7.2 km
long and about 300m wide with an area of 4.1 sq km. It ends at an elevation of 2,257
metres. Its surface is dissected by icefalls and fissures. Experts say both the Gergeti
and Devdorak glaciers are characterised with catastrophic pulsation.
Three leading photographers convicted for spying
Three leading photographers have all pleaded guilty and received suspended sentences on
espionage charges. They were Georgia's official presidential photographer, another
photographer who was an Internal Affairs Ministry contract employee, and the Tbilisi
representative of the European Pressphoto Agency (EPA). The three had been in pre-trial
detention since 7 July, suspected of photocopying and collecting state-classified
documents for delivery to Russian military intelligence (GRU) contacts.
On 22 July, the three were released from the courtroom after a 45-minute trial, based on a
plea-bargaining agreement signed that same day by the defendants, their respective
lawyers, the prosecution and the court. Presidential photographer Irakli Gedenidze, the
Interior Ministry's former photographer on contract Giorgi Abdaladze, and EPA's Tbilisi
representative Zurab Kurtsikidze were sentenced to prison terms of either three or two
years. The court then suspended the imprisonment sentences and put the defendants on
probation terms for up to four years, allowing them the right to exercise their profession
in Georgia while on probation. Abdaladze's wife received a 6-month suspended sentence for
minor complicity.
According to the Prosecutor's Office, the defendants fully co-operated with the
investigation and corroborated information about Russian intelligence activities against
Georgia. The value of this information earned them mitigating circumstances. Under
Georgia's criminal code, the defendants were liable to prison terms of up to 12 years.
Apparently, the plea-bargain and the court's lenience are intended to encourage agents or
other collaborators with Russian intelligence in Georgia to seek similar mitigation.
The trial had to be held in camera because the evidence consisted of classified documents
photocopied by the defendants. Some documents were too sensitive to be submitted in
evidence for the trial. Documents that were submitted to the court included a floor layout
of President Mikheil Saakashvili's residence, lists of cleaning personnel of the
presidential buildings, a schedule of the president's appointments and itineraries of his
visits in the country, a schedule of coordinated actions by the state guards' service and
the Internal Affairs Ministry, a plan of security measures for Estonian President Toomas
Ilves's recent visit to Georgia, transcripts of Azerbaijani Foreign Affairs Minister Elmar
Mammadyarov's recent top-level meetings in Tbilisi, as well as lists of Georgian citizens
employed by the United Nations, OSCE and the Council of Europe.
The prosecution also submitted a list of phone calls between Kurtsikidze and two supposed
GRU officers.
President Saakashvili’s predecessor, Eduard Shevardnadze, had been the target of two
assassination attempts said to have been organised in Russia and openly welcomed by
Moscow's officials at the time.
Gedenidze, the presidential photographer, made an early confession on 9 July.
Abdaladze, the Interior Ministry's former contract photographer, pleaded not guilty and
declared a hunger strike initially, but recanted and confessed on 18 July. Their lawyers
were present during those confessions.
Russia objects to US naval cruiser visit to Batumi
Russia has strongly objected to the visit of a US naval cruiser to the Georgian port of
Batumi, arguing that it is a provocation because the US ship is part of a missile defence
system to which Russia is strongly opposed.
The USS Monterey in the Black Sea for joint US-Ukraine exercises including
"counter-piracy operations; non-combatant evacuation operations, as well as board,
search and seizure trainings." Other countries taking part in the late June exercise
were Azerbaijan, Algeria, Belgium, Denmark, Georgia, Germany, Macedonia, Moldova, Sweden,
Turkey and the UK.
The US Embassy said the visit was a normal training mission, conducting joint maritime
training with several countries adjoining the Black Sea. It was part of the continuing US
commitment to Black Sea regional stability and maritime security.
Russia argues, however, that the Monterey is equipped with the Aegis radar
system, and as such would be part of the European missile defence shield that the US wants
to build around Russia. The visit, Russia says, is a wolf in sheep's clothing, and the
Russian Foreign Ministry had expressed concern that the US would at the same time be
conducting reconnaissance operations near the borders of Russia.
“Whatever the explanations are,” the ministry said, “it is clear that the Georgian
authorities will see the incident as encouragement for their ambitions for revenge against
the Russian allies of Abkhazia and South Ossetia, which is unlikely to help stability in
the region.”
Georgia - key facts
Sakartvelos Respublikis
Republic of Georgia (Gruziya)
Geography 69,700 square km (26,900
square miles) in area. Georgia, occupies the western part of the Caucasus Mountains;
it is flanked by Russia to the north, Azerbaijan and Armenia to the east and
south-west and Turkey to the south. Its western border runs along the Black Sea. Its
frontier with Russia includes a mountainous stretch bordering Chechnya. The capital Tbilisi
is referred to in some European languages and formerly in Russian as Tiflis.
Population 4,489,000 as of January 2001, the latest estimate by the
State Statistics Department. According to Central Election Commission estimates, there are
2.8 million eligible voters.
Ethnic composition As of 1997, 69% Georgian, 9% Armenian, 7.4%
Russian and 5% Azeri. Other small indigenous minorities include Ossetians (3%), Abkhazians
(2%) and Adzhars.
Language Georgian, written in a unique ornate, rounded alphabet. It
is the largest among the Ibero-Caucasian languages, a non-Indo-European group. The script,
with 33 letters, draws on ancient Eastern Aramaic.
Religion The Orthodox Church of Georgia is one of the oldest
Christian communities in the world, dating back to 337. Most Georgians belong to this
faith. There are small communities of Muslims, Catholics, Slav Orthodox believers,
Armenian Apostolics and Zoroastrians.
Government Georgia is defined as a democratic republic under the
constitution adopted on 24 August 1995. The President is directly elected for a five-year
term and cannot serve more than two terms.
Armed forces Estimated at 17,500 by the International Institute for
Strategic Studies. The defence ministry publishes no figures. US military advice and
training has recently been attempting to bring Georgia's armed forces up to modern
standards.
Economy Traditionally agricultural, producing fruit, wine,
oils, tobacco and spices. Industries include manganese and coal mines, crude oil and gas
production and food processing. Privatisation began after independence in 1991 and the
selling off of communications and manufacturing enterprises are continuing. The
International Institute for Strategic Studies estimated gross domestic product in 2002 at
$15 billion or $2,900 per person. The consumer price index rose 5.6% in 2002. GDP growth
was 5.4% in 2002 and is projected to be 8% to 9% in 2003.
Currency Lari. The exchange rate was 2.1 lari to one U.S. dollar as
of 31 October 2003.
History Under Tsarist rule from 1801, Georgia
(Gruziya) became a Soviet Socialist Republic in 1921 and constituent of the USSR in
1936. Independent from 1991. South Ossetia and Abkhazia seceded in 1991-2,
leading to a destructive civil war till 1993. |
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Prime Minister defends his policies in European
Parliament
On 18 January Prime Minister Viktor Orbán told a sceptical European Parliament that his
government's legal dispute with the EU can be resolved swiftly. He was speaking a day
after the EU Commission had launched legal proceedings. The Commission said that new laws
on the central bank, the judiciary and data protection authority, which took effect this
January, had put those bodies' independence at risk.
In a short speech to the Strasbourg parliament, Orbán said he was engaged in
"restructuring of enormous scope and importance" in Hungary and "it is
understandable there are debates about that". He did his best to play down the
dispute with the European Commission, arguing that its objections related to technical
points not to Hungary's controversial new constitution. He insisted that his government
had been forced to make changes because Hungarian institutions had been "on the brink
of collapse" when his party came to power in 2010.
MEPs on the left and centre sharply criticised Hungary's conservative prime minister.
Former Belgian Prime Minister Guy Verhofstadt, leader of the European Parliament Liberal
group, urged the parliament to vote next month to suspend Hungary's voting rights in the
Council of Ministers. He said the dispute with Hungary was not just a technical matter.
"It's about checking the conformity of the constitution and cardinal laws with
European values."
Currently attempting to negotiate an IMF aid package, Orbán cannot afford to lose EU
backing. Hungary is struggling to service its debts and wants to reach a new deal with the
EU and IMF on a standby loan worth up to €20 billion euros. Hungary's total debt has
risen to 82% of its output, while its currency, the forint, has fallen to record lows
against the euro.
The head of the IMF, Christine Lagarde, has made it clear that aid will be dependent on
Hungary complying with EU conditions.
Orbán's party Fidesz has a two-thirds majority in parliament, giving it considerably more
power than any previous government since the collapse of communism in 1989. It has used
this majority to force highly controversial changes through parliament. But now his
government has been given a month to make changes to the controversial laws. Failure to do
so would be grounds for the European Commission to levy fines or take Hungary to the
European Court of Justice.
EU Commission President José Manuel Barroso said he had received a letter from Orbán in
which "he has indicated to me his intention to modify the relevant legislation".
Nevertheless, he added, "beyond the legal aspects, some concerns have been expressed
regarding the quality of democracy in Hungary, its political culture, the relations
between government and opposition and between the state and the civil society."
EU opens legal action against Hungary over new laws
The European Commission on 17 January opened legal proceedings against Hungary over
reforms to its central bank, data protection and judiciary. The Hungarian cabinet was
given a month to respond to EC concerns.
The government responded saying that it would try to "resolve the problematic
questions as soon as possible", so as to avoid an escalation of the legal dispute.
Prime Minister Viktor Orbán argued that all "convincing arguments" will be
listened to, and laws will be changed if necessary.
Two formidable critics of the government of the Fidesz party now hold influential
positions in Europe - Commissioner Olli Rehn and Martin Schulz, newly elected Speaker of
the European Parliament.
There are fears that Hungary's new data protection authority will come under Fidesz
influence and that a plan to make 274 judges retire early will undermine the judiciary's
independence by enabling new pro-Fidesz appointees to replace them. A new media authority
set up by Fidesz is also highly controversial. The changes are part of a new
constitution which took effect on 1 January.
Thousands of Hungarians demonstrated early in January over what they claim is Fidesz
authoritarianism.
Klubrádió turns to court on lost licence
Independent radio station Klubrádió started legal action in mid January to challenge the
loss of its frequency after a decision by the Media Council in December. The popular
liberal talk station’s frequency was awarded to a new, unknown company, Autórádió
Mûsorszolgáltató, for 12 years. Autórádió won the bid with a 75 million forint
(£203,600) offer over bids of 55 million forints (£149,310) by other prospective
stations. Autórádió has capital worth only 1 million forints.
Klubrádió owner András Arató told the daily newspaper Népszabadság on
17 January that Autórádió’s bid had not included a valid business plan.
After the Media Council’s decision on 20 December, spokeswoman Karola Kiricsi said
Klubrádió had received maximum points for the proportion of music offered, public
service, programming plans and experience, but that weaker scores on other criteria caused
the bid to fail. She did not clarify what these other criteria were. According to the
Media Council decision, Klubrádió is to close on 31 March.
The Media Council in nominally independent but has been staffed by nominees of the Fidesz
party. It has drawn criticism from EU institutions. Ryan Heath, spokesman for EU Digital
Agenda Commissioner Neelie Kroes, said the loss of Klubrádió’s frequency cannot be
examined in isolation from the wider debate on the media in Hungary.
The Italian Journalists’ Federation also criticised the “silencing of such independent
information channels as Klubrádió” and the “concentration of communication” in
government control. On 18 January the Federation organised a sit-down strike outside the
Hungarian embassy in Rome.
Bleak fate in prospect for national airline Malév
The national carrier Malév has been ordered by the European Commission to repay within
four months some 88 billion forints (£239 million) in state subsidies received by the
airline between 2007 and 2010. Unless an investor or financially strong partner
willing to put money into the loss-making, heavily indebted airline can be found, Malév’s
fate looks bleak.

The airline is certainly not capable of repaying the amount from its own
resources. The state is no longer able to bail out Malév because the financing of the
airline from tax money has been banned once and for all by the European Commission.
The Hungarian government now has four months to find a solution. Sale of the airline is
currently not on the agenda. Although the Chinese carrier Hainan Airlines earlier put in
an offer, the negotiations were discontinued. The daily newspaper Népszabadság
reported that the Hungarian side was primarily responsible for the negotiations breaking
off because it considered Hainan’s offer to be far too low. The airline’s head
János Berényi told Népszabadság that the ruling of the EU Commission did not
at present affect the daily operations of the airline. Financing was still in place for
Malév flights.
The Ministry for Infrastructure Development promised that a decision will
be made on Malév within a week. The EC procedure against Malév was initiated years ago
by the budget carriers Wizz Air and Travel Service, on the grounds that the huge state
subsidies given to Malév distorted competition. During the procedure, the government
attempted consistently to prove that the financial aid was in line with EU law. Malév was
renationalised in 2010.
The Malév Group employs around 2,600 people and works with about 500 Hungarian companies
on a contractual basis. The airline contributes around 70 billion forints (£190 million)
to state revenue annually. Malév accounts for roughly 40 per cent of flights at Liszt
Ferenc International Airport. The airline carries just under three million passengers
annually and offers connections to 45 cities worldwide.
Chained opposition MPs detained by police
On 23 December police broke up a demonstration by green liberal opposition MPs who chained
themselves together outside parliament.
Twenty-seven activists were detained by Budapest police. Eleven MPs were among them,
including former Socialist Prime Minister Ferenc Gyurcsány. The head of the Socialist
Party, Attila Mesterházy, was also among those detained.
The opposition objects to key laws on elections, taxation and the central bank, which
Parliament has been preparing to adopt. They say the laws will tighten the grip on power
of the ruling Fidesz party.
Prime Minister Viktor Orbán's right-wing Fidesz has an unprecedented two-thirds majority
in parliament. For the new laws it has used a fast-track procedure leaving little time for
debate.
| Activists from the LMP party (Politics Can Be Different)
blocked the car park of parliament for two hours, in an attempt to prevent MPs entering,
before police removed them. The protest delayed the start of the parliament session. |
 |
The European Commission, European Central Bank and credit
rating agency Standard & Poor's (S&P) have voiced fears that Orbán's planned
reforms of the Hungarian central bank could undermine its independence. S&P downgraded
the country's debt to junk status on 22 December.
The government is seeking a new loan from the EU and International Monetary Fund (IMF),
but negotiations have soured over the controversial new financial legislation.
Constitutional Court rules new laws violate basic rights
On 19 December Hungary’s Constitutional Court vetoed parts of the media and criminal
codes that were internationally criticised for curbing press freedom and the independence
of the judiciary. It was a confrontational response to a series of new laws rushed through
Parliament by the easy two-thirds majority held by the government.
The court also annulled a new law regulating religious organisations on procedural
grounds, the court in Budapest said in three separate rulings that day. The church law,
which would have come into effect on 1 January, only included 14 Christian churches and
Jewish congregations, forcing all others to seek recognition from MPs in parliament.
Since coming to power last year, Prime Minister Viktor Orbán’s MPs have set about
curbing the powers of the Constitutional Court, ousting the Supreme Court’s chief
justice, writing a new Constitution, replacing an independent Fiscal Council with one
dominated by party allies and created a media regulator whose directors were exclusively
picked by ruling party officials.
The media law “unconstitutionally limited freedom of the written press,” the
Constitutional Court said in its ruling, citing more stringent regulation for newspapers
versus other media. The court also scrapped a regulation that would force journalists to
reveal their sources in most cases.
UN Special Rapporteur Frank La Rue said in April that in Hungary political influence and
the threat of fines might result in self-censorship, adding that there was a “framework
of control” over the media.
The regulation of the press is constitutional “in its aim and system,” the state Media
Authority said in an e-mailed statement today in response to the court’s decision,
adding that the court’s decision won’t “substantially” affect the authority’s
work “in upholding the freedom of press and speech.” Karola Kiricsi, spokeswoman for
the Media Authority, fiercely criticised international media for what she called "a
political attack" on the authority.
The newspaper Nepszabadság reported on 16 December that the European Commission,
had “serious concerns” about Hungary’s judicial overhaul. It cited a letter the
previous week sent to Hungary’s government by EU Justice Commissioner Viviane Reding.
Despite crisis, Hungary wants to join eurozone
President Pál Schmitt confirmed in mid December that his country remained committed to
adopting the euro. He took the view that the current financial crisis in Europe was not
caused by the common currency, but by overspending by some eurozone nations.
“There’s an ancient Hungarian saying: ‘Do not stretch your blanket beyond what it
can bear’ ”, he said on 15 December in an interview with The Washington Times.
“In Hungary, we also need to take heed of this saying.”
President Schmitt cited a provision in Hungary’s new constitution that caps the country’s
debt-to-GDP ratio at 50 percent.
He noted that before Hungary can adopt the euro, it has to meet certain criteria on debt,
inflation and long-term interest rates required by the Maastricht Treaty that set up the
currency in 1999. “It continues to be in our interest that we become members of the
monetary union,” he said. “Not only our reserves, but our international contracts, our
international trade, is conducted significantly in euros, so therefore it is in our
interest to keep a strong euro.”
“We’re still far from being able to join,” he admitted, predicting that Hungary
could not adopt the euro until “close to the end of the decade”.
The president’s comments come at a time of significant economic distress in Hungary,
which is to seek assistance from the International Monetary Fund in talks starting early
next year.
The previous week Moody’s had downgraded Hungary’s bond rating to junk status for the
first time in 15 years, accelerating the recent plunge in value of the Hungarian currency,
the forint. The Hungarian currency has lost 13 percent of its value against the euro since
July, reaching a record low on 14 November.
The forint’s volatility was one of the key reasons for adopting the euro, the President
said. “The stability of the currency obviously provides greater stability for every
member of that union. I feel even now that belonging to the eurozone provides some sort of
safety.”
Banks and Government to share foreign currency loan burden
The government and commercial banks in Hungary have agreed to share the burden on foreign
currency mortgage loans, Economy Minister György Matolcsy said on 15 December.
Banks will assume two-thirds of the loan burden above 180 forint per Swiss franc, costing
them 600 billion forint over five years (£1.67 billion), Matolcsy said. The government’s
share would be one-third, amounting to 300 billion forint, he said.
Foreign currency mortgage loans overdue by more than 90 days will be converted to forints
and one-fourth of the outstanding amount will be written off, Matolcsy said.
The agreement is a “milestone” and “open to everyone” and should boost the forint,
Mihály Patai, President of the Bank Association said. The duration of the agreement would
be five years.
Ambiguous attitudes to EU financial pact
Prime Minister Viktor Orbán started on a “battle” to regain Hungary’s “financial
self-rule” when he spoke at the EU summit on 9 December. But a week later he appeared to
have lost the battle, as negotiations for a new IMF deal got under way. Initially it
had appeared that Orbán was alone in siding with British Prime Minister David Cameron in
rejecting outright any form of fiscal responsibility pact. But Orbán subsequently passed
the buck to the Hungarian parliament.
The government’s “unorthodox” policies to slash the national debt without
traditional austerity measures have run up against hard economic reality. The government
returned to the International Monetary Fund negotiating table on 14 December in the hope
of gaining a second bail-out. Any IMF deal would come with the usual strict IMF
conditions, inevitably meaning further austerity measures. Hungary is the only 2004 EU
member state with a western European level of government debt. No-one has been persuaded
that the strength of its economy can sustain that level of debt. Hungarian bonds were
marked down to “junk” status by one of the “big three” ratings agencies – Moody’s.
The situation became even more unrealistic when prime minister Orbán looked for a moment
last week to be the only EU member state besides the UK to refuse point blank the new
fiscal responsibility pact. In the end, Orbán joined the Czech Republic and Sweden in
handing over the decision to the national parliament. There is however a key difference
between Hungary and the other two - the Czech government survives in a minority situation;
the Swedish government is another coalition. By contrast Orban’s conservative government
in Hungary commands a two-thirds parliamentary majority.
Pride in history cannot be taken for granted
A Visegrad Fund survey co-ordinated by Slovakia’s Institute for Public Affairs and
released in mid December has found Hungarians to be less proud of their history than might
be expected. Contrasting with previous perceptions of Hungarians’ pride in their nation
and ancestors, only 57% of respondents said they felt proud or very proud of their
thousand-year history and 5% rather or very ashamed.
The survey had covered four central European neighbours. By contrast, over three-quarters
of Poles in the survey declared pride in their past. However Hungarians could at least
take consolation in the fact that their Slovak neighbours appeared to feel even less pride
in their own history: admittedly Slovak history has a much shorter life span, but only 43%
declared themselves to be proud of their national history and 7% reported being ashamed of
it. Poles and Czechs proved much more optimistic, with over half seeing their history as
progress.
Asked what personalities they were most proud of, Hungarians overwhelmingly went for
historical figures, starting with the country’s first king St István, and then on to
19th-century revolutionaries including Lajos Kossuth and the poet Sándor Petőfi. Nearer
to the present, only half of respondents agreed that it was good that communism had
fallen. János Kádár, Hungary’s communist leader for 32 years until 1988 was perceived
positively by 27% of young adults. In the Czech Republic, Slovakia and Poland analogous
personalities were seen positively by only 4 to 12 %.
Hungary - World of
Potentials
This entertaining short film takes a kaleidoscopic look at some of the attractions
of Hungary, and highlights inventions by Hungarians.
Click here to view |
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Russia opens anti-missile radar in Kaliningrad
On 29 November Russia opened a new radar station in its west European exclave of
Kaliningrad. The installation is capable of monitoring missile launches from the North
Atlantic. President Dmitry Medvedev was present at the inauguration ceremony.
A defence ministry official said the radar will go on combat duty from 1 December. Russia
also plans to deploy Iskander tactical missiles in Kaliningrad in future.
Medvedev had last week said in his address to the nation that he had ordered the launch of
the radar as part of Russia's response to United States plans for a European missile
shield. Medvedev had said on 23 November that Russia would move "advanced offensive
weapon systems" to its European borders in response to a planned US-backed NATO
missile shield if talks on the project fail.
Two days after the presidential statement, the chief of the Russian Aerospace Defence
Forces, Lt-Gen Oleg Ostapenko, said that a new radar station, capable of monitoring
missile launches from the North Atlantic, as well as the future European missile defence
system, is ready to be opened in the Kaliningrad Region. The radar station was ready to go
into operation as part of the national missile early warning attack system.
Russia also plans to deploy Iskander tactical missiles in the Kaliningrad region in the
near future.
The Russian government has been seeking written, legally binding guarantees that the
missile shield will not be directed against it. The Americans, however, have refused to
provide those guarantees to Moscow and said it will not alter its missile defence plans.
Schools for foster parents to be set up
Seven facilities, helping and teaching families who want to adopt a child, will be
established in Kaliningrad, the regional government said on 15 November.
Under the government's new program for 2012-2016, designed to assist adoptions, adoptive
parents would be able to receive support from psychologists, teachers, lawyers and social
workers.
"The programme envisages establishing a complex system of selecting, tracking and
preparing citizens willing to adopt children, and further assistance to such
families," Kaliningrad's education minister Anastasia Khrebtova said.
The previous four-year program helped to decrease the total number of orphans in the
region by 10.5% in 2007-2011. As of early 2011, the Kaliningrad region had 6,500 orphans,
but more than 70% have been brought up in foster families, enabling a child to grow up in
a family environment without being legally adopted.
Things to know about Kaliningrad
Population: About 1 million, a fall of
500,000 since Soviet days.
Size: The area is half the size of Belgium - 15,000 square kilometres. It
is bordered by Poland to the south, Lithuania to the north and east and the Baltic Sea to
the west.

Capital: Kaliningrad city and port
Strategic importance: Kaliningrad port is headquarters of the Russian
Baltic Fleet, and was formerly a closed Soviet military zone.
Economy: According to the World Bank, Kaliningrad receives proportionally
more foreign direct investment than Russia as a whole, but far less than neighbouring
Baltic countries. Some estimates suggest the enclave's residents are 65 times poorer than
EU citizens.
Amber: Kaliningrad is the world centre of production of amber -
fossilised tree resin used for jewellery and decoration - most of which is smuggled out
via Poland and Lithuania.
Health issues: Residents have the highest incidence of AIDS in Europe.
There are 3,794 officially registered cases of HIV infection. The official figures
probably represent just one-fifth of the extent of the problem. Its port is thought to
have been the first place where the disease got into Russian territory, spread by
prostitution and drug use. There are estimated to be as many as 3,000 prostitutes in the
enclave.
Crime: EU officials have called Kaliningrad a "black hole" of
criminality. Organised crime is rampant in the enclave, and crime may account for half of
the enclave's income.
History: Kaliningrad was formerly the Prussian port of Königsberg,
capital of East Prussia. It was captured by the Red Army in April 1945 and ceded to the
Soviet Union at the Potsdam conference. It was renamed in honour of senior Soviet leader
Mikhail Kalinin, although he never actually visited the area.
Architecture: Much of the city's historic heart was levelled by British
fire bombing in 1944, and aggressive Soviet attempts to remove German cultural symbols
demolished most surviving monuments, churches and castles.
Significant residents: Philosopher Immanuel Kant was born in what is now
Kaliningrad (1724), and is buried there (1804). More recently, Vladimir Putin's wife
Lyudmila was born in the enclave.
Tourism: Around 70,000 German tourists, most with family roots in East
Prussia, visit the enclave every year. Ethnic Germans were expelled from the area under
Stalin. |
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| Kosovo
(Kosova, Kosovë / Косово и Метохија) |
Kosovo police and protesters clash near Serbian border
Police in Kosovo fired tear gas and water cannon to disperse hundreds of demonstrators on
14 January. The demonstrators were trying to stop traffic cross the border from
neighbouring Serbia. Albanian supporters of the Self-Determination Movement, an opposition
parliamentary party in Kosovo, had travelled to Kosovo's border with Serbia intending to
block the flow of Serb goods into Kosovo. It was a protest at what they said was Serbian
obstruction of Kosovo's independence since its secession in 2008.
They tried to block two border crossings. In the town of Podujevo near the main Merdare
border crossing, heavily-armed riot police fired tear gas and water cannon after some 500
demonstrators blocked the road and ignored calls to disperse.
The protesters responded by throwing rocks. Dozens were detained, and some protesters and
police were injured, a Reuters witness said. The security operation was led by Kosovo
police, without any apparent involvement of NATO peacekeepers or European Union police who
also patrol the country of 1.7 million people.
Serbia lost control over Kosovo in 1999. But Serbia's opposition to its existence has
slowed Kosovo's development as an independent state, obstructing its representation in
regional and international bodies and the free movement of people and goods. Tensions
resurfaced in mid-2011 over the status of a small slice of northern Kosovo abutting Serbia
and populated mainly by Serbs who were able to continue in effect as part of Serbia.
A few days earlier Prime Minister Hashim Thaçi said that he would not allow members of
the Self-Determination Movement to block Kosovo's borders. "Announcements by the
movement's leaders about violent attempts to take control of Kosovo border posts were the
worst possible for Kosovo at this time," Thaçi said. He added that members of
Self-Determination "should understand that violent acts are not the means for getting
into power".
Barricades in northern Kosovo partly
removed
On morning of 27 October Serbs in Northern Kosovo removed part of the barricade on the
Kosovska Mitrovica-Ribariće road in the village of Zupče. The barricade has been located
on the road leading to the Brnjak administrative crossing.

Large logs were removed from one traffic lane, allowing two
KFOR vehicles to pass through. An armoured KFOR vehicle and several soldiers had been
located about 300 metres from the barricade that the Serbs were dismantling.
According to the plan adopted by the four northern Kosovo mayors and the Kosovska
Mitrovica District head, barricades would the same day also be partially removed from the
east bridge over the Ibar River in Kosovska Mitrovica and from the entrance to Leposavic.
According to the plan, the roads should be open for transportation of fuel and food for
KFOR troops but not for EULEX members.
Uneasy recent history in Kosovo
Ethnic Albanians make up 90% of Kosovo's population estimated at 1.8
million in the census of April 2011. Of some 200,000 Serbs now left in Kosovo, about half
live in enclaves protected by NATO forces.
1989 Ethnic Albanians protest with strikes
and demonstrations against oppressive rule from Belgrade. Serb leader Slobodan Milošević
sets about removing Kosovo rights to autonomy, given in the 1974 Jugoslav constitution.
1990 Ethnic Albanian MPs in the province declare
Kosovo independent from Serbia. The Belgrade government dissolves Kosovo's autonomous
assembly and government.
1991 Albania recognises Kosovo as independent.
1992 Writer Ibrahim Rugova is elected President
of the self-proclaimed republic.
1998 Serb police say they have eliminated the
nucleus of the separatist Kosovo Liberation Army, killing guerrilla leader Adem Jasari.
The claim proves to be premature. In March Serb police continue their
onslaught against separatist guerrillas. U.S. Secretary of State Madeleine Albright says
the United States will not tolerate a return to bloodshed and holds Milošević
responsible. In September NATO issues an ultimatum to Milošević to stop
attacks on Kosovo Albanians or face air strikes.
1999 In March Kosovo Albanians
sign a peace deal in France. Belgrade rejects it. Peace talks end in failure. NATO begins
air strikes against Jugoslav positions in Kosovo on 24 March. In June
Milošević agrees to withdraw troops from Kosovo. NATO suspends air operations. U.N.
approves peace plan for Kosovo and the establishment of Kosovo Peace Implementation Force
(KFOR). NATO troops enter Kosovo one day later. NATO and the Kosovo Liberation Army sign a
formal agreement requiring ethnic Albanian guerrillas to disarm. In November
U.S. President Bill Clinton visits Kosovo and urges ethnic Albanians to forgive Serbs,
saying "time for fighting is past".
2000 Violence in the city of Mitrovica kills
eight ethnic Serbs in February. Kosovo Serbs demand the return of Serb
forces. In October there are the first free elections in Kosovo. Ibrahim
Rugova claims victory, raising hopes for co-existence with the ethnic Serb minority.
In November Rugova urges the world to recognise the territory as
an independent state. EU foreign ministers reject the call.
2002 Kosovo's main ethnic Albanian parties reach
a power-sharing deal at the end of February. They agree to elect Rugova
president with Bajram Rexhepi as prime minister. In June Serb
leaders formally end the boycott of Kosovo's new government and take an oath of office
alongside their ethnic Albanian colleagues. In October Serbian and
Kosovo Albanian leaders open their first direct talks since 1999 but Rexhepi stays away.
In December the U.N. unveils a 'road map' setting out the
conditions Kosovo must meet by mid-2005 before further talks on its final status.
2004 Worst violence between Albanian and Serb
ethnic communities since 1999.
2005 March
Ramush Haradinaj resigned as prime minister after being indicted for war crimes. Haradinaj
had been in the job for only three months before his indictment, but huis acqyuittal did
not come until 2008. He was replaced by Bajram Kosumi, deputy leader of the Alliance
for the Future of Kosovo (AAK). Regarded as a moderate, his key priority was the pursuit
of independence for Kosovo, and to seek integration with the EU and NATO.
The next Prime Minister Bajram Kosumi was a former teacher of Albanian
language and literature. As a student, he was sent to prison in 1981 for organising ethnic
Albanian protests against Serb rule. He later supported the goals of the Kosovo Liberation
Army but was not actively involved in combat.
October UN Secretary General Kofi Annan said
that talks should start soon on whether Kosovo should remain part of Serbia or be given
independence.
2006 January President
Ibrahim Rugova dies.
February UN-mediated talks between Albanian and
Serbian negotiators about the future status of the province start in Vienna.
March Former KLA leader Agim Ceku was nominated
as Prime Minister.
October Contact Group proposes delay in status
decision.
2007 March UN Security Council receives UN
envoy Martti Ahtisaari’s status plan. Russia calls for more talks between Serbia
and the ethnic Albanians. No UN resolution can be agreed.
July EU, Russia and US troika appointed
to mediate between Serb and Albanian parties. Renewed talks began in September.
November General and municipal elections
2008 February Kosovo declares unilateral
independence, backed by some EU countries and by the US.
President: Fatmir Sejdiu
Prime Minister: Hashim Thaçi
The flag of the new state of Kosovo is blue with the yellow map of Kosovo in
the middle and six white stars above it.

2008 December European Union launches EULEX
mission
2009 February One year after declaration,
independence still not recognised by 140 countries. |
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top of right column |
Votes on state appointments to be open
The Saeima (parliament) approved on 19 January the third reading of amendments to the
Saeima Rules of Procedure. They stipulated that several state officials would from now on
be elected by open vote and not by secret ballot. The bill stipulates that members of the
Saeima Presidium, the ombudsman, the auditor general, judges, the head of the
Constitutional Protection Bureau, the prosecutor general, the head of the Corruption
Prevention Bureau, the head of the Central Election Commission and a number of other
officials must from now on be elected by open vote.
Amendments to the constitution were forwarded for further consideration by Saeima
committees which would stipulate that the state president and Constitutional Court judges
should also be elected by open vote.
Moves to recognise Russian as a state language
President Andris Berzins has submitted to Saeima (parliament) constitutional amendments on
granting the status of a state language to Russian. At the same time, the President also
sent a letter to Saeima Speaker Solvita Aboltina, in which he emphasised that “making
Russian the second official language would mean abandoning Latvia as a nation state, which
in turn would contradict the spirit of the Constitution and the ideas that served as a
basis for the proclamation and restoration of Latvia’s independence”.
Berzins said that he had passed the matter to the Constitutional Rights Committee and
requested its assessment of the issue. The President confirmed that he was ready to
participate actively in uniting society. The Central Election Commission announced on 19
December that the necessary number of signatures for staging a referendum on granting the
status of a state language to Russian has been collected.
Meanwhile MPs had passed a bill demanding a referendum on the subject, which if it
prevented the recognition of Russian, a populist likelihood, would contradict the
constitution, a matter for the Constitutional Court. The Constitutional Court promised to
act as swiftly as possible to make sure that its verdict did not come only after the
potentially anti-constitutional referendum. The Constitutional Court’s chairman Gunars
Kutris said on 15 January in an interview broadcast on the TV3 channel that the court
aimed to rule on the status of the state language referendum promptly and possibly suspend
the referendum.
Census shows rise in ethnic Latvian population
The proportion of ethnic Latvians living in Latvia has increased by 4.3% since 2000 - from
57.7% to 62.1% of the total population, according to preliminary data from the 2011
population census, reported in mid January. The total number of ethnic Latvians living in
Latvia at the moment is 1,370,703. The number of ethnic Russians living in Latvia has
dropped from 29.6% in 2000 to 26.9% in 2011. The total number of ethnic Russians living in
Latvia is 556,422.
The number of ethnic Belarussians living in Latvia has fallen from 4.1% of the total
population in 2000 to 3.3% in 2011. There are currently 68,174 ethnic Belarussians living
in Latvia. The number of ethnic Ukrainians has dropped from 2.7% in 2000 to 2.2% in 2011.
The number of ethnic Poles has fallen from 2.5% in 2000 to 2.2% in 2011. The number of
ethnic Lithuanians living in Latvia has fallen from 1.4% in 2000 to 1.2% in 2011.
Increasing internet access
In the first quarter of 2011, 64% of Latvian households had access to the Internet,
compared withg 73% of all European households. The EU statistical office Eurostat reported
in late December that Internet access had considerably increased both in the EU and in
Latvia over the past five years. In the first quarter of 2006, the Internet was in 42% of
Latvian and 49% of European households.
This year, the highest proportion of Internet access was registered in the Netherlands -
94%, followed by Luxembourg and Sweden - 91% each, and Denmark - 90%. The lowest internet
access rate was recorded in Greece - 50%, Romania - 47% and Bulgaria - 45%. In 2010,
compared with the neighbouring Baltic states, the Internet was available in 71% of
Estonian and 62% of Lithuanian households.
Demand on welfare in Riga increased in 2011
The City Council’s Welfare Department reported in December that 47,444 citizens of the
capital Riga were given the status of ‘needy resident’ in 2011 (based of 11-month
statistics), which is 11% more than in the same period the previous year. The number of
needy residents remained very high, and it had been growing by an average 6% every month
from January 2010 to April 2011. Since April 2011, though, this number had been decreasing
by an average 565 persons, or 2%, each month. If this trend persisted, the number of needy
residents in Riga could return to the level of August 2010, when 30,488 people had the
status of needy residents with the Riga Welfare Services. 54% of needy residents were of
legal working age, and it is this group that had been decreasing the fastest. According to
the State Employment Agency’s data, the number of unemployed residents registered with
the agency’s Riga branch had dropped from 37,935 in February, to 30,139 in November
2011.
Latvia - factfile
Population 2.3 million, of which 58% are Latvian
and 29% are Russian. Two other Russian-speaking minorities are Belarussians (5%) and
Ukrainians (4%). Lithuanians, Estonians and Poles make up the remaining 4%.
Language The official language is Latvian, but Russian is widely
spoken. Latvian is a Balto-Slavic language, similar only to Lithuanian.
Religions Lutheran, Roman Catholic and Russian Orthodox.
Geography Its area is 64,589 sq km (24,937 sq
miles). The country is situated with the Baltic Sea to the west, Estonia to the north,
Lithuania to the south and Belarus and Russia to the east. It is mainly flat and over 40%
forested.
Capital: Rīga, population 740,000, with a high proportion ethnic
Russian.
History In the past Latvia had been occupied at
different periods by Swedes and by Germans. In 1721 it was absorbed by Russia. In 1918 it
became an independent state, but in 1940, under the Molotov-Ribbentrop pact, became a
constituent republic of the Soviet Union. It was then occupied by Germany during the rest
of World War 2.
Following the Soviet WW2 victory in that region, thousands of Latvians were deported to
Siberia, while Russians and people from other Soviet republics started moving to Latvia
due to the manpower needs of the rapidly expanding planned economy.
The Perestroika reforms of the then President Mikhail Gorbachev prompted an
upsurge in nationalism across the Baltics in the late 1980s, and independence movements
won control in the region in 1990 after the so-called Singing Revolution.
Latvia's parliament voted for full independence and banned the Communist Party after the
failed Russian coup against Gorbachev in August 1991. The country was recognised by
the United States a month later and subsequently admitted to the United Nations.
In 1999, psychology professor Vaira Vike-Freiberga was elected as the first female
president in central and eastern Europe, and Latvia was invited to start negotiations for
EU membership later that year.
Political system The Republic of Latvia is a
parliamentary democracy. The 100-seat single chamber Saeima is elected for a four-year
period, with the latest elections held in October 2006.
President Valdis Zatlers; president elect Andris
Berzins takes office in July 2011
Prime Minister Valdis Dombrovskis
Economy Latvia launched itself on a path of reform along
market economy lines after it regained independence in 1991.
After a banking crisis in 1995 and a significant setback due to the Russian crisis in
1998, Latvia set about reducing its dependency on Russia. There was a period of budget
stringency and reorientation of exports to the EU and other western countries. It has now
developed into an open economy, with its stable currency, the lat, pegged to the
International Monetary Fund's Special Drawing Rights since 1994.
Latvia started accession talks with the EU in 1999 and continued to develop its financial
institutions to meet western standards and attract foreign investors.
Latvia still has the lowest per capita income of the accession countries, but in the
period 1998-2002 it had the fastest-expanding economy of the EU candidates, with average
growth of 5.1%. In 2002, its economy grew by 6.1%. The central bank plans to join the
European Exchange Rate Mechanism (ERM-2), the waiting room for the euro single currency,
in 2005 and replace the lat national currency with the euro in 2008. |
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Disappointing revenues from income tax and excise duty
Prime Minister Andrius Kubilius claimed on 18 January that poor revenues from income and
excise taxes were due to smuggling, though it has decreased. The PM also said that
attention should be paid to the fact that last year more money than expected was collected
from VAT.
“We are going to analyse and solve the problems. One of the reasons for poor revenue
from the excise tax is smuggling. However, we have achieved some significant results in
restraining smuggling,” Kubilius said.
Finance Minister Ingrida Simonyte said that the national budget plan was a little
underspent - by 220 million litas (€63.7 million euros). This meant that the deficit
limit would not be exceeded, and “we will not borrow more than we have been planning to
borrow. That is very important,” she said.
Simonyte explained that a lower amount of money had been collected from income tax, due to
behavioural issues. She said that the plan for collecting the excise tax had been too
ambitious, and that smuggling was not efficiently or effectively being prevented.
Last year, Lithuanian border guards intercepted 6% more smuggled cigarettes than they did
in 2010. The State Border Guard Service (VSAT) statistics reveal that the flow of tobacco
smuggling from Belarus had grown, whereas smuggling from Russia had declined. In 2011,
officials intercepted about 2.2 million packets of contraband cigarettes, which is 6% more
compared on a year-on-year basis. Tobacco products had been the most popular smuggling
item, as last year 87.4% of smuggling attempts prevented by the VSAT were related to
cigarette contraband. Most of the prevented attempts to smuggle were at the border with
Belarus (328 attempts), followed by Russia (123 attempts, a rather large decrease from
2010) and inside the country (123 attempts).
Lithuanian Government website
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World Bank says Macedonia is the 3rd most improved economy in the world
The Republic of Macedonia is the third most improved economy in the world this year,
according to the World Bank Doing Business Report 2012, following Morocco and
Moldova. Macedonia in the report, published on 20 October, moved 12 places from the 34th
to the 22nd place. It is a leader in the western Balkans and has performed much better
than 19 EU countries.
Presenting the report for the government, Finance Minister Zoran Stavreski said "This
year's report shows that Macedonia moves ahead by achieving success. Macedonia is the
third most improved economy according to the world-renowned report assessing the business
climate for 2012, in which an incredible jump of 72 places have been made compared to
2006."
He added that Macedonia marked continuous progress in relation to many indicators, noting
that it came as a result of demanding reforms, measures and activities carried out the
past five to six years. "The report will motivate us additionally to make efforts in
identifying the areas where more headway can be made, where business conditions can be
improved with additional reforms," Stavreski emphasised.
Lilia Burunciuc, country manager at the World Bank Office in Macedonia, said that the
breakthrough contributed to improving businesses and creating new jobs. “It takes time
for reforms to translate into changes in the economy, but we can already see some positive
signs reflected in the recent pick up of economic activity and increase in foreign direct
investment.”
Progress over the past 6 years had been made in creating a regulatory environment more
favourable to business. Four areas of progress were highlighted by the report: dealing
with construction permits, registering property, getting credit (credit information), and
resolving insolvency.
Doing Business 2012:
Doing Business in a More Transparent World
assesses regulations affecting domestic firms in 183
economies and ranks the economies in 10 areas of business regulation, such as starting a
business, resolving insolvency and trading across borders. |
National census stopped due to irregularities
Macedonia's parliament passed a law through an expedited procedure on 15 October to
suspend the Census Law. The action came after the census was stopped on 11 October,
following resignations of the State Census Commission four days before the scheduled end
date for census. The members of the State Census Commission resigned collectively because
of perceived attempts by ethnic Albanians to use practices contrary to the Census Law.
" Had we not done so, we would have not obtained relevant data," SCC President
Sobodanka Gievska said.
The decision echoed the decision of the former SCC President, Vesna Janevska, to resign a
day before the census commenced – citing expected irregularities.
The significance of the problem lies in the Ohrid Framework Agreement, which defines
collective rights and privileges for ethnic Albanians if they constitute over 20% of
Macedonia's population. It has become widely believed that the previous 2002 census was
based on falsified data.
"You just cannot have some census workers follow the law, while others follow the
Albanian political parties' instructions," a Skopje census worker commented. Kanal 5
television editor Goran Momirovski explained "It should not have started in such
conditions. It is better to end it like this rather than start a new conflict over say
0.5% Albanians above the constitutionally required 20%."
EU bid still bogged down in name dispute
For the third year in a row, the European Commission has recommended the launch of
accession talks with Macedonia. The latest progress report, released on 12 October, again
concluded the country is ready to start negotiations.
Whether that actually happens, however, depends on the European Council - which has been
unable to reach a consensus due to Greece's objections. The Greek government refuses to
accept its neighbour's constitutional name, claiming it infringes on Greece's heritage and
implies a territorial claim.
At the same time, there has been irritation because the latest report pointedly leaves out
the adjective "Macedonian". President Gjorge Ivanov promptly sent a letter of
protest to EC President José Manuel Barroso over the omission. "With such gestures,
the European Commission can only complicate the already complex nature of this imposed
dispute," Ivanov said.
According to former Foreign Minister Slobodan Chashule, it is now clear that Macedonia
continues to face an obstacle despite the success of its reform process.
Despite the controversy, some see the report as generally favourable. "Setting aside
the omission of the adjective ‘Macedonian’, this year's progress report is fair,"
said Deputy Prime Minister for European Integration Teuta Arifi. Others, however, say the
EC was overly critical. The part of the report addressing the economy, for example, gives
positive marks to Macedonia's macroeconomic stability and monetary policy, but negative
marks for the high unemployment and public spending.
Prime Minister Nikola Gruevski suggested that Brussels is not playing fair. "The new
tactic ... to pressure Macedonia on the name issue by claiming we do not do enough reforms
and to over-emphasise the weaknesses is wrong and will not bear fruit, but will give the
opposite result." He insisted, however, that Macedonia remained committed to its
strategic goals of EU and NATO membership, and to the reform process. "Even if the
reforms do not bring the expected result regarding our NATO and EU entry, they are good
for the country, for bettering the citizens' quality of life," Gruevski said.
Macedonia takes over chairmanship of Decade of
Roma Inclusion
Macedonia assumed chairmanship in mid July of the Decade of Roma Inclusion
2005-2015, an international programme involving 12 European countries to improve Roma
integration and welfare.
The Decade brings together governments, transnational organisations and NGOs to improve
Roma participation in education, employment, housing and healthcare, but also commits
governments to address other core issues like discrimination.
“Macedonia's chairmanship will focus on Roma education and housing in the upcoming 12
months”, National Implementation Co-ordinator Nedzet Mustafa said. He emphasised that
since 2005 the Roma community had experienced positive progress throughout Europe. During
its chairmanship, Macedonia will organise several international workshops and conferences
on developing Roma employment initiatives.
The Roma are Europe's most numerous minority, 12 million strong, concentrated primarily in
Romania, Bulgaria, Hungary, Spain and Turkey.
In Macedonia, the number of Roma is 53,000 or 2.6% of the total population, but only in
this country have they been recognised as a distinct ethnicity in the preamble of the
constitution. The Skopje neighbourhood of Shuto Orizari is Europe's first Roma
municipality and the only one in the world where the Roma language is official.
World-renowned singer Esma Redzepova said that Macedonia's systematic support for Roma
issues – including the Roma primer, dictionary and grammar – should be the basis for
replication globally. "The first song I performed setting me on the path to be
recognised eventually as 'queen of the Roma song', was through the airwaves of, and with
the support of Radio Skopje," she said.
One of the problems facing Macedonia during its chairmanship concerns the number of Roma
who seek asylum in the EU. To retain its visa-free status Macedonia must meet strict
recommendations to address asylum-seekers. For this the government has undertaken a
variety of employment and social support measures.
According to Belgium's Immigration and Asylum Ministry data issued last month, the number
of asylum applicants has fallen to less than 500 this year, down from 4000 in 2010.
Roma - implementing the EU Framework
What’s in a name?
International pressure to refuse use of Macedonia’s name
Greece has continued to threaten to veto the Macedonian government’s
bids to join NATO and the EU under the country’s name, Macedonia. The Greek government
remains adamant that it implies a claim on a northern province of Greece with the same
historical name and could destabilise the region. A Foreign Ministry spokesman said that
if bilateral ties and regional co-operation were to be improved, Skopje needed to
demonstrate good-neighbourly behaviour and abandon its use of the name. This has been a
long-standing policy of the Greek government.
The awkward acronym FYROM has been widely substituted (standing for Former Yugoslav
Republic of Macedonia). President Branko Crvenkovski has said that his country
is prepared to join NATO under the name FYROM but would not make any concessions in the
search for an official name in the long term. “We have already made too many
concessions,” he said, his people are keen to “rid ourselves of this anachronistic and
degrading term.”
Typical of the pressure put on Macedonia was a letter circulated by Luigi Sandrin,
Director of the European Agency for Reconstruction (EAR). In 2005 EAR announced a
competition on the topic “Support of minority rights/activities”. In due course a
project was selected with a promise of finance. Subsequently, after the project was well
underway, an extra condition was imposed: “The name Republic of Macedonia or Macedonia
is not to be used, notwithstanding the fact that it is the official denomination used by
the country itself and that all documents from Skopje (letters, reports etc.) will refer
to it in this form”.
Instead Sandrin quoted Resolution 817/1993 of the UN Security Council and Resolution
225/1993 of the UN General Assembly that the only denomination that could be used must be
“former Yugoslav Republic of Macedonia” (with a small f and a small o
and with capital letters only in the beginning of the sentence). “Please, ensure that
all printed documents and external communication, as well as the web-sites, books and
other materials related to EU-funded projects follow this policy.”
At the NATO summit in Bucharest on 2 April 2008 Greek Prime Minister Costas
Karamanlis vetoed a NATO invitation to Macedonia to join. Outlining Greece's
positions on the issue, Karamanlis emphasised there would be no consent to Macedonia’s
NATO entry invitation if the "name issue" were not resolved first.
Opposing the Greek position and supporting a NATO invitation without such a condition were
Turkey, Slovenija, the Czech Republic, Estonia, and Lithuania. Other European countries
said they understood the Greek arguments, but Canada, Great Britain and Portugal refrained
from taking a stand on the issue. |
Macedonian Government website
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Protest rally against the current administration
Thousands of people gathered on 22 January in the National Square of Chişinău to rally
against the current government. The rally called by Iurie Rosca, the leader of Popular
Christian Democrat Party (PPCD) brought in people came from different districts of the
country. He had called upon citizens to protest against the constitutional referendum to
be organised at the end of April. Rosca announced that he planned on gathering more people
and continuing protests until the end of April .
Chants of “Down with the Alliance (for European Integration)!” and “Alliance –
leave!” reflected anger at the current government leadership. Protestors allegde that
the level of corruption had increased, as well as the poverty level.
Vladimir Voronin, the leader of Communist Party and former president, stated that he would
be willing to support the demonstrations. At the same time, AIE leaders said that it was a
human right to protest, as long as the demonstrations were peaceful.
Doubts over freedom of press in Transdnestr after leadership change
Grigori Volovoi, a journalist at the independent TV station Dnestr TV,
broadcasting from the secessionist capital Tiraspol, claimed to have been humiliated while
trying to work on a story about the change of administration at the Tiraspol Ministry of
Security.
Volovoi said that the struggle for an independent press focused on Vladimir Antyufeyev,
the former Minister of Security in Transdnestr and a KGB officer during the Soviet times.
Antyufeyev, a Russian citizen, came to Tiraspol to take part in the Transdnestran
independence movement in September 1991 and played a key role in forming the internal
affairs and security organisations of the seceded government.
Video of his attempt to report was uploaded to YouTube showing an officer of the
Ministry forcing the cameraman to turn off his camera. He asked them for permits and then
ordered them to follow him inside the security service building. Parts of the video were
recorded on a mobile phone while the professional equipment was impounded.
Grigori Volovoi is the chief-editor at the independent newspaper for the Transdnestr
region. Between 1990 and 1994 he was an MP in the Moldovan Parliament.
Higher wine exports to EU in 2011
The information and media service of the Economics Ministry reported on 23 January
that exports of alcoholic drinks to the European Union had increased by 59,400 hectolitres
in 2011 compared with the year before. 93% of the quota set by the EU had been reached.
More than 65% of these exports went to Poland, the Czech Republic and Romania. In 2011,
the EU increased the quota for Moldovan alcoholic production from 100,000 to 150,000
hectolitres.
There were alsoi exports of wheat, barley, maize, white sugar and wines to the EU. The
export of maize went up by 5,000 tons against 2010, with the 30,000-ton quota being fully
used. The main destinations of the maize export were Greece, Italy and Cyprus. The EU's
quota for wheat was 40,000 tons of which 67.6% was used, with the export of wheat dropping
by 7,340 tons against 2010. The same decreasing trend was recorded for barley, with the
country exporting only 8,819 tons of the 35,000 tons allowed. The decrease in exports of
wheat and barley to the EU appears to be the result of low prices for these goods on the
European market. Most wheat and barley was exported to Italy.
Despite the decreases, the Economics Ministry announced higher quotas for exports to the
EU in 2012. Thus, the quota for Moldovan wines will grow from 150,000 to 180,000
hectolitres, for barley from 35,000 to 45,000 tons, maize from 30,000 to 40,000 tons,
wheat from 40,000 to 50,000 tons, and sugar from 26,000 to 34,000 tons.
Moldova has the lowest wages in Europe
The minimum wages in Moldova are the lowest in Europe. According to
Adevarul Moldova, minimum wages are only half those in Romania and Bulgaria, or a
twentieth of those in Belgium and the Netherlands and 25 times less than in Luxembourg.
In Moldova, the minimum wage is 1,100 Moldovan Lei (£61). This amount classifies Moldova
as a country with the lowest minimum wages in Europe. Belarus and Ukraine are also among
the states with the lowest income rates in Europe.
Despite of the administration change in Moldova, the economic difficulties continue to
exist. The salary of a nurse varies between 1150 and 1720 lei a month (£64 to £95) while
the salary of a teacher goes below 2300 lei per month (£127). A recent graduate who would
like to get employed in the governmental system would be paid 860 lei (£48) as an
entry-level employee.
The difficult economic situation forces many Moldovans to go abroad for jobs. The most
preferred countries are Russia, Italy, Portugal, Spain and Turkey. |
Constitutional Court invalidates presidential election
On 12 January the Constitutional Court declared the 16 December presidential election and
the parliament's decision to hold a repeat on 15 January as unconstitutional.
The court delivered the ruling at a request of non-affiliated MP Mihai Godea, who demanded
the invalidation of the 16 December presidential election, on grounds that MPs had
revealed their ballot papers, thus violating the secrecy of their vote.
In their pleadings before the court, representatives of the parliament and government said
that the legal provision of the secrecy of vote is a right, not an obligation.
The presidential ballot scheduled for 15 January could therefore not take place. The
head of the commission for holding the presidential election, Tudor Deliu, said that the
court decision meant that parliament should convene again in order to set the date of a
repeat presidential election.
Moldova fails to choose a new president
Confidence-building measures between Moldova and Transdnestr backed by EU money
The Moldovan government has signed a grant agreement with the European Union meant to
bolster confidence between the two banks of the Dnestr river, Moldova and the secessionist
region of Transdnestr. The €13.1 million euros proposed in the agreement would be used
for social, economic and environmental projects.
Prime Minister Vlad Filat and the head of the EU Delegation in Chisinau, Ambassador Dirk
Schuebel, signed the document on 11 January. After the signing ceremony, Filat said that
"the recent events in the security zone proved once again that the populated areas
and people from this region need special care and attention, which will be paid to them
through the implementation of projects of social and economic development".
For his part, Ambassador Dirk Schuebel said that "the confidence-building measures
programme is aimed not only at promoting security, but also at helping to create the
environment and means needed to promote co-operation between the two banks of the Dniester
river".
Moldova fails to choose a new president
The Moldovan parliament has failed yet again to select a new president.
On 16 December parliament failed to select a new president, with interim President Marian
Lupu, the only candidate, getting 58 votes, three short of the 61 votes required. The
opposition Communist party boycotted the vote. There have been repeated failed attempts to
elect a head of state.
The governing coalition the "Alliance for European Integration" has 59 seats.
Just two more votes were needed but they would have to come from among the Communist party
opposition. The party has refused to support a government candidate and instead called for
new elections.
Moldova has had only an acting president since 2009. Two failed parliamentary elections
were followed by failed presidential elections. Three coalition parties have in turn
installed three acting presidents. A new ballot to choose a president will be held in
January. If that vote fails, parliament would have to be dissolved for the third time in a
row and new elections called.
Developments in Moldova, often referred to as "Europe's poorest country", are
being closely watched in the European Union. "What the EU and Germany are asking from
the coalition in Chişinău is this: 'See that you use this opportunity to agree on a good
candidate,'" said Manfred Grund, a member of the German parliament from the
centre-right Christian Democrats (CDU) and head of the German-Moldovan Forum.
Moldova's current pro-western government aspires to some day join the EU. If Lupu had been
successfully elected this time, it could have been a step towards further European
integration. The government in Chişinău does, however, have a persistent problem.
Transdnestr, the seceded province on Moldova's eastern border, has rejected all bids to
return to Moldova since splitting off in 1992.
The A to Z of Moldova
– a historical reference book
A paperback version of the Historical Dictionary of Moldova first
published in 2007 has now been issued under a new name: The A to Z of Moldova.
The A to Z of Moldova
Series: The A to Z Guide Series #232
Andrei Brezianu and Vlad Spânu
The Scarecrow Press, USA
ISBN: 0-8108-7211-0
ISBN-13: 978-0-8108-7211-0
Can be ordered from Amazon
on-line
See more details (table
of contents, list of entries, reviews, extracts) |
Moldova - part Romanian, part Russian
Much of contemporary Moldova was part of Romania until World War 2, when
it was annexed by the Soviet Union, and about 65% of its 4.5 million residents speak
Romanian. Moldova became independent in 1991, after its eastern, mainly Russian-speaking,
Transdnestr region had already broken away, fearing reunification with Romania.
In 1940, the territory of Transdnestr - which had been an autonomous area within Ukraine -
had been merged with Bessarabia to form the Moldavian Soviet Socialist Republic. The
territory became independent in 1991 after the collapse of the Soviet Union, and as
Moldova then joined the Commonwealth of Independent States (CIS).
In the summer of 1992, the two sides fought a short but bloody war, which
ended when Russian forces stationed in Transdnestr (the eastern side of the Dnestr River)
intervened on the side of the separatists. Some 2,000 Russian troops and thousands of tons
of military equipment are still located in the region. The secessionist region
Transdnestr, whose capital is at Tiraspol, has not been recognised internationally.

Ten years of inconclusive negotiations between the Moldovan and
Transdnestran administrations followed. Currently trilateral mediation by Russia, Ukraine
and the OSCE has been seeking a solution to the conflict.
Moldova is Europe's poorest state. The 2004 Human Development Report of the United Nations
Development Program (UNDP) ranks Moldova 113th among 177 countries. In comparison, Albania
ranks 65th. Moldova's annual per capita GDP for 2003 has been estimated at $460. The
Communists came to power in 2001 promising a return to at least a Soviet-era standard of
living. But economic troubles and poverty have deepened, with Moldova becoming one of the
main suppliers for traffickers of human beings and human organs. The Moldovan economy is
dominated by often murky business interests. The Transparency International Corruption
Perceptions Index for 2004 ranks Moldova in position 114 among 146 countries, with
corruption being one of the fundamental features of Moldova's social and economic strata.
In the Transdnestr region, arms and drugs trafficking have flourished under
the control of criminal groups, and the separatist leadership is often seen as connected
with them. The volume of the annual narcotics business in Moldova is estimated to be about
$200 million to $250 million, a figure that is nearly four times the country's annual
direct foreign investment. One of the main factors generating corruption and fuelling the
actions of criminal networks in the country is customs activity. Trafficking, contraband,
and tax evasion are flourishing across the borders of the secessionist Transdnestr region
with Ukraine and Moldova.
A nation in transit
Link: An in-depth report on Moldova from the Freedom House
Foundation series Nations in Transit: Civil Society, Democracy, and Markets in East,
Central Europe and the Newly Independent States. The latest 2005 report can now be downloaded
as a PDF file.
|
Links:
Country information
and history
The Parliament of Moldova
Independent Moldovan website and news service
back to News index
EBRD lowers growth prospects for Montenegro
On 19 October the European Bank for Reconstruction and Development (EBRD) downgraded the
economic growth forecast for Montenegro from 2.1% to 2%.
EBRD expects that Montenegro’s gross domestic product will rise by 2.6% next year, as
opposed to the 3% growth that had been expected earlier this month.
Investment opportunities offered to Italy and Britain
MIPA, the Montenegrin Investment Agency, reported on 11 October that Italian businesses
were looking to invest mostly in wind energy and agriculture (machinery and other gear).
Earlier in the year in May a delegation was sent by the Montenegrin government to Rome
where they held a large forum presenting various investment opportunities to over 150
Italian businessmen. The forum was obviously a success because over half of them
subsequently visited Montenegro.
Blagota Radulović, a manager in MIPA said that one company wanted to distribute
agricultural gear in Montenegro, while another aimed to invest in wind energy by building
wind turbines in Montenegro. Radulović also noted that representatives of UniCredit Bank,
the largest bank in this part of Europe, had also visited and wanted to expand business in
Montenegro as well, after previously investing in Croatia, Bosnia and Herzegovina and
Serbia.
“We want them to invest and they want to invest. There’s a lot of potential and we
hope for the best,” concluded Radulovic.
Meanwhile the Montenegrin minister of finances Milorad Katnić was in the United Kingdom
on 10 October and held several meetings with UK officials. He talked with George Osborne
and the government’s financial secretary Mark Hoben, concluding that, although the two
countries were on different levels in almost all areas, they both shared the same
principles. They also talked about the economic crisis and how to make the situation
easier on the citizens.
Katnić also introduced investing opportunities in Montenegro and invited British
investment. He said that energy, tourism and infrastructure had the highest priority.
Russian military ship visits Kotor Bay

The “Cezar Kunikov”, a large Russian
military vessel docked in the Kotor Bay on 11 October. It is part of the Russian Black Sea
fleet based at Sevastopol, and was the flagship of the Russian squadron which was involved
in the Russian-Georgian naval skirmish in August 2008.
This visit was more peaceful. The “Cezar Kunikov” was there to mark the 300th
anniversary of Russian – Montenegrin political relations. Apart from the Russian ship
which was the main attraction, several other activities for the celebration included a
concert of military bands and a performance for local people of Russian music.
From Illyria to the 21st century
The name Montenegro (black mountain) is
Venetian in origin referring to the black appearance of Mount Lovcen's pine forests. Crna
Gora is the same name in slavic.

Geography Montenegro borders Croatia and
Bosnia to the north, Serbia and Kosovo to the east and Albania to the south. About half of
the country is covered in thick forest. It has an Adriatic coastline, lowlands and high
mountain ranges. The Tara River gorge is the deepest and longest canyon in Europe.
Population & religion 620,145.
Montenegrins (62%) along with Serbs (9%), Albanians (7%), Slavik Muslims (15%), Croats
(1%) and others (1991 census). The majority of the population belongs to the Orthodox
Christian tradition (Montenegrins and Serbs); there is a substantial Muslim population and
some Roman Catholics.
Capital Podgorica
Language A variety of Balkan languages are in
use, with Serbian used in government.
Government Parliamentary republic. In May 2003
Filip Vujanović was elected by universal suffrage as President of Montenegro.
The next presidential elections are due in 2007. Local and parliamentary elections were
held in September 2006. The new government coalition was led by the Democratic Party of
Socialists, with Zeljko Sturanović as Prime Minister. The DPS has 41 out
of the 81 seats in the National Assembly. In February 2008 Milo Đukonović,
a former Prime Minister, was re-appointed. He stepped down at the end of December 2010, to
be replaced by his Finance Minister Igor
Lukšić.
History
The history of Montenegro begins in the early Middle
Ages, after the arrival of the Slavs into that part of the former Roman province of
Dalmatia. Before the arrival of the Slav peoples in the Balkans during the 6th century AD,
the area now known as Montenegro was inhabited principally by the Illyrians. Substantial
Greek colonies were established on the Adriatic coast during the 6th and 7th centuries BC,
and Celts are known to have settled there in the 4th century BC. During the 3rd century
BC, an indigenous Illyrian kingdom emerged with its capital at Skadar. The Romans mounted
several punitive expeditions against local pirates and finally conquered this Illyrian
kingdom in AD 9.
In 1516, Montenegro became a theocratic state under the rule of the prince-bishop
(vladika) of Cetinje, which continued through to the first half of the 19th century when,
in 1852. the vladika married, assumed the title of knjaz (Prince), and transformed his
land into a secular principality. From the 1860s wars against Ottoman Turkey expanded
Montenegrin territory. International recognition of the country came in 1878, and it
became a kingdom in 1910.
The Kingdom of Montenegro suffered severely from World War 1. Austro-German armies finally
overran Serbia, and Montenegro was invaded in 1916. King Nicholas fled to Italy and then
to France. Eventually the forces of Serbia liberated Montenegro from the Austrians, but
deposed the absent king. Serbia subsequently annexed Montenegro on 29 November 1918, and
Montenegro thus became the only Allied nation to lose its independence after the war.
The majority of Montenegrins fought in World War 2 for liberation. Tito's Partisans won
the war of liberation and acknowledged Montenegro's contribution, rewarding its efforts by
establishing it as one of the six republics of the Socialist Federal Republic of
Jugoslavija. Montenegro became economically stronger, gaining help from federal funds, and
becoming a tourist destination as well.
During the Jugoslav civil war in the 1990s the United Nations imposed a trade embargo
which affected many aspects of life in the country. Its location on the Adriatic Sea and
across Lake Skadar to Albania turned Montenegro into a hub for smuggling activity. The
republic's main economic activity became the smuggling of user goods - a de facto
legalised practice which it went on for years. The Montenegrin government either turned a
blind eye or took an active part in it. Smuggling made millionaires, including senior
government officials. Prime Minister Milo Ðukanović himself has been accused in various
Italian courts of having a role in widespread smuggling during the 1990s and in providing
safe haven in Montenegro for some Italian mafia figures. In February 2003 the federal
union of Serbia-Montenegro replaced the republic of Jugoslavija.
In May 2006 a referendum resulted in 55.5% voting for the independence of Montenegro. In
June this was acknowledged by Serbia. The European Commission continued separately
negotiating with Montenegro on the Stabilisation and Association Agreement originally
opened with federal Serbia-Montenegro. The SAA between Montenegro and the EU was signed on
15 October 2007 in Luxembourg.
Economy
Unemployment 18.5% (2004)
Currency is the euro
Trade with EU (2004): imports from EU25 €139 million; exports to EU25
€227 million.
Tourism and financial sectors have become the most dynamic factors in economic growth.
Foreign investment has come with the privatisation of state assets in telecommunications,
aluminium and banking. Foreign trade and customs policy are being aligned with EU
requirements. |
Elizabeth Roberts: Realm of the Black Mountain
- a history of Montenegro. Hurst & Co. London
2007
back to News index
|