| Georgia
(Sakartvelo / Грузия) |
Opposition protesters switch target
On 26 May protesters ended their blockade of the Tbilisi railway station but threatened
instead to occupy the country's international airport. Tens of thousands jammed Tbilisi's
main soccer stadium for a rally on 26 May, while hundreds blocked the main railway tracks
for around four hours overnight, before dispersing before dawn.
The opposition supporters have been involved in a 2-month protest campaign to try to force
President Mikhail Saakashvili to resign. Critics say Saakashvili led Georgia into a
disastrous war against Russia last year and controls the country's courts.
Police arrest former National Guard commander on coup
charges
On 5 May the Interior Ministry arrested a former commander of the National Guard, General
Koba Kobaladze. He was held on suspicion of being involved in the organisation of a
military coup uncovered by police.

Kobaladze and the names of several other generals were heard in secret
video footage released by the interior ministry the same day. Gia Ghvaladze, who has been
already arrested with the same charges, spells out in detail a plan for the uprising.
According to the interior ministry report, the plan had been agreed with Russia and the
organisers were receiving considerable funding from the Russian Federation. A mutiny at an
army barracks had already been brought under control. The military uprising was planned on
a large scale, aimed at overthrowing the government and assassinating several senior
government officials.
The uprising has been linked to NATO exercises being held in Georgia, which have aroused
considerabvle cioncern in Russia. At the end of April Russian President Dmitry Medvedev
was quoted as saying that “The planned NATO exercises in Georgia, no matter how often
someone tries to convince us otherwise, are an open provocation. Such exercises cannot be
conducted in a place where a war has just taken place. … Those who took the decision to
conduct them will bear the responsibility for their negative consequences.”
Georgian President Mikheil Saakashvili, in a statement on the planned military coup,
appealed to the organisers to surrender to the authorities, where their co-operation would
be respected.
Saakashvili reviewed recent developments in the country, including the reinforcement of
Russian army forces in the country’s occupied regions, and said the escalation of
tensions seem to arise over NATO-led military manoeuvres and Georgia’s participation in
the EU Prague summit. “The first is a symbolic event, when, after the Russian aggression
against Georgia, NATO takes a serious step and conducts military training in Georgia and
the second is a historic event, when Georgia signs the treaty on institutional ties with
the European Union, its historic partners,” the President said.
According to Saakashvili, Georgia faced the threat of serious provocations from Russia
alongside its progress in relations with Europe. The Russians had increased the number of
its forces in the occupied regions and had deployed its fleet in Georgian waters.
Saakashvili said the epicentre of the Russian plans in Georgia had to be the capital
Tblisi, where the riot would have begun. Saakashvili called upon Russia to refrain from
provocations in Georgia.
Opposition protests continue in Tbilisi
Thousands of opposition supporters in Georgia have continued protests, demanding that
President Mikhail Saakashvili should step down. Demonstrators gathered outside the
parliament building in Tbilisi, then marched on to the presidential palace. Police did not
intervene and said the protesters could remain in front of parliament as long as they
liked. The police reacted less sympathetically to the blocking of city traffic.
The opposition groups accuse Saakashvili of being increasingly autocratic. Their most
bitter criticism is directed at the president's handling of the brief August 2008 war with
Russia over the breakaway region of South Ossetia. The Georgian army was humiliated and
the country lost territory as separatists and Russian ‘peace-keepers’ took full
control over the secessionist regions of South Ossetia and Abkhazia.
The demonstrations were reminiscent of the bloodless protests of the Rose Revolution that
brought Saakashvili to power five years ago. But the fragmented opposition does not appear
to have the necessary support to stage a similar revolt. Saakashvili's party still has
broad support throughout Georgia, where many people have been saying they are tired of the
political squabbling.
But on 13 April the fifth day of protests in Tbilisi began to show falling turnout and the
opposition seemed uncertain of how to continue the campaign. The 60 thousand crowd that
turned out on 9 April had reduced to some 20 thousand. Nevertheless Levan Gachechiladze,
the main opposition candidate in the 2008 presidential election, addressed supporters:
"The fight continues, and today I have the impression that this fight will end soon
with your victory."
President Saakashvili has remained resolute in his determination to finish his final term
in office and has repeatedly offered to engage in dialogue with the opposition. He claims
that it has been Russian oligarchs who have been financing the Georgian opposition.
Human Rights court to hear Georgia versus Russia lawsuit
The European Court of Human Rights has been listed to hear on 16 April the lawsuit of
Georgia versus Russia on the expulsion from Russia of Georgian immigrants.
The lawsuit was filed in March 2007. In it Russia is accused of violating the rights of
immigrants during their mass deportation from the Russian Federation. The ECHR communiqué
says that the lawsuit is tied with the spiralling tensions that developed in late
September 2006, following a spying row between Georgia and Russia. Georgia had arrested
four officers of the Russian army in the South Caucasus, accusing them of spying for
Russia.
The Russian side asserts that Georgia is using the lawsuit to escalate tension in
Georgia-Russia relations, while Georgian officials hope that Georgia will win the dispute
in the ECHR.
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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Property tax to have three bands
The MSzP (the government Socialist party) decided at a faction meeting late on
15 June to propose an amendment on the new property tax. The amendment would leave
the original threshold for the tax at 30 million forints (£90,800), then exta bands above
that value. High-value residential and recreational property worth 30 million forints or
more should be taxable on the basis of the total value.
The rate of taxation would be 0.35% on a property value between 30 and 50 million forints,
and 0.5% if the value of any property exceeding 50 million forints (£151,330). In
addition to that the latest MSzP proposal is to set another rate of 0.25% on the part of
the value below the 30 million limit.
Residential property less than 30 million would be exempt if a first home, but subsequent
ownership would be liable above set levels.
The property (or “wealth”) tax would not be deductible from the personal income tax.
The cabinet wa said to expect revenues of 40-50 billion each year from the property tax.
Another amendment to the original proposal would exclude the recreational properties of
trade unions from the tax. Trades unions have traditionally invested in an üdülő
– a holiday property as a worker “rest home”.
Former President Arpad Göncz awarded Saint Adalbert Prize
Czech President Václav Klaus on 13 June presented the former Hungarian
president Arpad Göncz with the Saint Adalbert Prize for Peace, Freedom and Co-operation
in Europe. Arpad Göncz himself could not be present at the ceremony in Prague for health
reasons so the award was accepted in his name by his daughter Kinga Göncz, Foreign
Minister in the current government.
The prize comes from the Adalbert Stiftung foundation in Krefeld, Germany,
and was awarded for the contribution made by Arpad Göncz to Hungary's peaceful path to
democracy and for his long-time efforts to deepen good neighbourly relations on the
continent.
Fidesz opposition urges governing Socialists to quit
The opposition Fidesz party yesterday called on the government to resign in light of the
results of the European parliamentary elections. Fidesz chairman Viktor Orbán claimed on
11 June that voters had withdrawn their confidence in the MSzP (Socialist Party). In a
democracy this should be the time for new elections.
In an open letter to Socialist leaders, Fidesz had demanded that the cabinet suspend
privatisation procedures until the next elections, and refrain from introducing a property
tax, approving a new civil code or re-organising public administration.
Other Fidesz demands state that
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banks should not be subsidised from loans taken
abroad, |
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the reorganisation of the education system
should be halted, |
 |
redundant party politicians should not be
appointed to state institutions, |
 |
the process of founding a Hungarian company to
take part in the Russian-backed South Stream gas pipeline project should be stopped. |
Viktor Orbán said that if Fidesz came to power it would
cancel any decisions the current government took on these matters. There should also be an
urgent and immediate inquiry into how the introduction of a property tax came to be
inserted into the government’s May agreement with the IMF.
Twenty years since the first section of Iron Curtain was
torn down
Saturday 2 May marked the 20th anniversary of the beginning of the end of the “Iron
Curtain”. On 2 May 1989 Hungarian border guards began dismantling the physical barrier
along the Hungarian-Austrian border. Just some 8 kilometres of barrier were removed,
either side of four border crossings between Hungary and Austria.

Hungary was at the time defying its eastern bloc allies and the risk of
yet another Russian intervention. But in Russia a new government was looking to open up
political and economic relations with the “West”. Mikhail Gorbachev had begun urging
the countries in the eastern bloc to join in the process of perestroika and glasnost. But
conservative communist leaders thought Gorbachev's reform initiatives would soon peter out
– East Germany's Erich Honecker, Bulgaria's Todor Zhivkov, Czechoslovakia's Gustáv
Husák, and Romania’s Nicolae Ceauşescu stubbornly ignored Russian hints that it was
time for change.
As word spread that Hungary had opened its borders to the west, thousands of East Germans
and Romanians headed for it, and the border guards were soon overwhelmed. East Germans had
long taken holidays in Hungary, and with the opening of the borders they flocked into
Austria, and onwards into West Germany, often rejoining relatives in families that had
been divided.

By September 1989 Hungary had opened its western border completely.
Within three months, the communist regimes of central Europe had collapsed.
Foreign Minister warns that larger EU member states seem to be ‘backing out’
There is a danger that large member states are about to "back out of the EU",
Foreign Minister Péter Balázs said in an interview reported on 27 April. Balázs
took office on 14 April as a member of new Prime Minister Gordon Bajnai's cabinet.
The foreign minister said Germany had been working “to seize economic institutions and
to strengthen the G20” since 2007.
In line with views recently expressed by Belgian Foreign Minister Karel de Gucht on 21
April, he argued that the aim of such actions was to leave smaller EU member states
behind, with larger EU members preferring to deal with states that have “similar
influence and weight”.
The Paris-Berlin link “provides the basis of the EU … It is very difficult to achieve
anything in the EU without France or Germany," Balázs thought. But relations between
France and Germany were sometimes difficult for other countries. “You do not stand
between wrestling elephants!” he suggested.
Gordon Bajnai becomes new Prime Minister
On 14 April a majority in parliament approved a motion proposing that Gordon Bajnai
replace Ferenc Gyurcsány as prime minister, a year before the next scheduled
elections.The deepest recession in at least 16 years had undermined Gyurcsány’s
minority government. Bajnai is not a member of any political party. He had served as
economy minister under Gyurcsány and has already anticipated “immediate and painful”
spending cuts that he says are needed to protect Hungary’s finances, save thousands of
jobs and ultimately allow the country to adopt the euro.
Hungary was the first European Union member to receive financial help last year, getting
€20 billion in loans organised by the International Monetary Fund. The Hungarian forint
has had a very bad year.
Ferenc Gyurcsány announced his resignation on 21 March, conceding that a replacement with
wider political backing was needed to boost the economy, which the government expected
would contract more than 3.5% in 2009. Bit in his budget estimates Gordon Bajnai
anticipates a contraction as deep as 6%, forcing bigger spending cuts as government
revenue shrinks.
Bajnai said he wanted to freeze public salaries for the next two years and scrap the
so-called 13th month payment for state employees and pensioners as of next year. Pensions
and household energy price subsidies would also be cut this year. In fact energy subsidies
would be eliminated in steps starting from 2010. Bajnai’s programme has been backed by
both the MSzP (Hungarian Socialist Party) and its former coalition ally the SzDSz
(Alliance of Free Democrats), and working together the two parties should be able to
ensure a parliamentary majority for the new Bajnai government.
Previous spending cuts undermined Gyurcsany’s popularity with the general public. In
April, according to a survey published yesterday by Progressziv Institute and Publicus
Research, the MSzP had only 10% support among voting age adults, an all-time low, compared
with 30% for Fidesz, the main opposition party.
There were demonstrations outside the Parliament building, calling for early elections.
President László Solyom and Fidesz leader Viktor Orbán (a former prime minister) also
urged early elections.
Ferenc Gyurcsány, a wealthy businessman,
became Hungary's prime minister in 2004. He won re-election in 2006, supported by his
reputation as a promoter of a modern free-market economy. Since 2006, however, he had
struggled to maintain a parliamentary majority amid worsening economic conditions.
A remark he made in 2006 at a party congress was caught on tape and caused a media frenzy.
Gyurcsány said his government had been lying "night and day" about the state of
the economy, just to keep itself in power. Now it was time to tell the truth.
The IMF, the EU and World Bank agreed a $25.1 billion economic rescue package for Hungary
in November 2008. It was the biggest loan for an emerging market economy since the global
crisis began.
Gordon Bajnai is a political independent and
semi-professional soccer player. He served as economy minister for the past year. His
public approval rating as economy minister is at a dismal 29 points and the opposition,
who dubbed him a “Gyurcsány clone”, has been refusing even to sit down with him. It
says Bajnai will be the nation's “bloodsucker” like his predecessor.
The new Prime Minister can also hardly count on firm support from the ruling MSzP, who
helped elect him to office. The party is in disarray, struggling with record low ratings
and Bajnai is about to ask them to approve painful welfare and pension cuts.
A past failure under Bajnai's management has also come back to haunt him. In 2003 he
presided over the failure of a major poultry producer in which hundreds of small farmers
lost their savings. Opposition newspapers have dubbed him “Goose Gordon”, suggesting
that a man who could not pilot a poultry firm through its difficulties should not be put
in charge of a country.
Gordon Bajnai also plays goalkeeper for the 43rd Epitok (builder) sports club, a fourth
division soccer team. He says his goalkeeping experience remains a valuable asset because
it taught him how to play in a team, and his job was to stay at the back, defend, and not
neglect his responsibilities. |
Protests as new Prime Minister sworn in
Several thousand people in Budapest protested on 14 April over the appointment of the new
prime minister, Gordon Bajnai. Police said protesters threw objects and tried to break
through fencing surrounding the parliament building. There were reports that several
police and protesters were injured in clashes.
Gordon Bajnai replaces Ferenc Gyurcsány, who had announced his decision to resign a few
weeks earlier, saying he considered himself a hindrance to further reforms. He has been
sworn in as Prime Minister by Parliament, and had previously been serving as Economy
Minister. He is not aligned to any political party.
204 of the 386 members of parliament voted for his endorsement, but anti-government
demonstrators in Budapest immediately demanded that parliament be dissolved and an early
election called.
The new Prime Minister has promised to implement tough austerity measures to tackle the
country's grave economic problems. He has said he will call elections if he cannot secure
parliamentary support for his policies. “To restart the economy,” he told Parliament,
“we need to cut the tax burden on employment, increase the willingness to work and
support work-intensive economic fields with high added-value.” The country has been
badly hit by the global economic crisis, and in November 2008 needed a $25.1 billion (£17
billion) IMF-led rescue package to avoid collapse.
The opposition Fidesz party is behind the call for elections. It said the appointment of
Gordon Bajnai was an "extension of the mandate of a failed prime minister".
On 7 April Fidesz rejected an invitation from Gordon Bajnai, as Prime Minister designate,
to discuss plans to manage the economic crisis. Invitations were sent to all three leaders
of the main opposition parties. The MDF (Democratic Forum) agreed to such talks, but the
Christian Democrats did not. MDF leader Ibolya Dávid said her party was ready for talks
if the future of the country were at stake.
But Fidesz party spokesman Péter Szíjjártó said in a written response that Fidesz
would never hold negotiations with an “illegitimate” cabinet, nor with the Socialist
and SzDSz (Free Democrat) groups. It would be going “behind the backs of ordinary
people,” he wrote, adding “you have not been elected by anybody to any post”.
First to ratify Treaty of Lisbon
Hungary became the first EU member to ratify the new reform treaty
following an overwhelming parliamentary vote on 17 December 2007.
A clear majority of 325 members of parliament voted in favour of the new EU Treaty, with
only 5 opposed and 14 abstentions. "Hungary is behind this new Treaty, which retains
the virtues of the Constitution and is also in the interest of Hungary," Prime
Minister Ferenc Gyurcsány said.
The majority of EU members are expected to opt to ratify the new treaty through their
national parliaments. |
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Lithuania suggests visa-free regime
Lithuania's foreign minister Vygaudas Usackas has said that he was ready to warm up ties
with Russia, a marked change in tone for a country which in 2008 had been the only EU
state against re-starting co-operation talks with Moscow. He said Lithuania had tried to
float the idea in the EU of a special visa-free regime for people in Kaliningrad.
Usackas said one sign of better relations was Russia's willingness to work more on
judicial issues, including the case of a Lithuanian businessman missing in Kaliningrad.
"Signals toward warming up relations have come from both sides, from Vilnius and
Moscow," Usackas said, interviewed in early February.
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) |
Former PM arrested in Bulgaria
Agim Çeku, prime minister of Kosovo from October 2006, was detained
on 23 June entering Bulgaria from Macedonia. During the check up of his
identification documents at the border an Interpol order for immediate arrest of this
person had appeared on the monitor. The border policemen therefore arrested Agim Çeku and
put him in custody.
Çeku was on the Interpol list after being sentenced in absence by a Serbian court to 20
years in prison. Serbian prosecutors had accused him of genocide and war crimes, claiming
he should take command responsibility for the murders of 669 Serbs and 18 other
non-Albanians during Kosovo's war for independence.
Click for more on this story
Setting of local election date criticised
Local elections are to be held on 15 November, but Kosovo Albanian opposition parties are
dissatisfied with the decision, claiming on 21 June that the date was not set as “a
result of an agreement, but pressure from abroad”.
The decision of Kosovo President Fatmir Sejdiu on setting the election date was criticised
by the Albanian opposition parties. Former Kosovo prime minister and leader of the Social
Democratic Party, Agim Ceku, said that his party would participate in the elections, but
that the President had disappointed the Albanian parties with his decision. “What
worries me is that the President led co-ordinated meetings with the parties on several
occasions, but he ignored the proposal of every opposition party and passed a decision
that the international factor asked him to,” Ceku said.
Albanian Serbs have not been sure whether they should even participate. However, the
Independent Liberal Party, which includes Serbs in Kosovo, and also has two ministers in
the Kosovo government, does plan to participate in the elections regardless of Belgrade’s
stance. Party official Bojan Stanojevic said “I hope that after ten years, the Serbian
people will reach a consensus and understand that we must decide for ourselves.”
District chief Goran Arsic said “The stance of the state of Serbia will either be
neutral, or negative, meaning, that Serbs should not participate in the elections.
However, regardless of Belgrade’s stance, there are local groups of citizens and parties
that will participate in the elections.”
After the elections in November, Kosovo should have 38 municipalities, ten of which will
be majority Serb, one ethnic Turkish and the rest ethnic Albanian.
British army to be involved in training security forces
On 20 May a co-operation agreement between the Ministry for the Kosovan Security Force was
signed with the United Kingdom Ministry of Defence. It covered the development of
co-operation in developing security policies and security training.
UNDP reports extreme poverty and
unemployment in Kosovo
It was reported on 18 May that, according to the UNDP, more than 17% of Kosovo's
population lives in extreme poverty. Many more require the assistance of the government or
family members who work abroad.
Unemployment and poverty are the main factors that could undermine stability in the newly
independent region, said Kosovo citizens who responded to a recent UNDP survey. Out of a
total population of about 2 million, almost 40,000 people have no regular income and
require government assistance.
Government aid amounts to €45 to €75 euros a month - much less than what a family
needs to have a normal life in the country. According to Gjergj Dedaj, the Kosovan Deputy
Minister for Labour and Social Welfare, there are also some 150,000 pensioners receiving
an average of €70 euros a month from the ministry, and they now fall into the category
of poor people.
The reports from UNDP and other international organisations suggest that about 37% of the
population lives in poverty, defined as below €1.42 euros a day, and more than 17% lives
in extreme poverty – less than €0.93 a day.
"Poverty cannot be reduced through giving people social assistance alone, the opening
of the new jobs would reduce poverty. Let's not transform Kosovo into a social state in
which people live with social assistance; let's transform it into a place of work,"
Gjergj Dedaj said. An emergency strategy was not enough. He also explained that his
ministry did not have its own official figures for the rate of poverty in Kosovo, since
there had been no census and data collected on family economics.
Emigration played a major role in keeping families out of extreme poverty, the minister
pointed out. More than half a million Kosovans work in western European countries and send
money home, helping to keep their relatives financially afloat. It has been estimated that
one in five Kosovans has at least one relative abroad sending them funding.
The UNDP reported that Kosovo has the highest unemployment rate in the western Balkans -
around 45% of the working-age population is without a job.
Uneasy recent history in Kosovo
Ethnic Albanians make up 90% of Kosovo's estimated population of two
million. 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 |
Health minister resigns over cuts
Health minister Ivars Eglitis has resigned in protest against severe budget cuts imposed
as a result of the economic crisis. He said he could not accept reductions which would
hurt the poorest in the country.
Prime Minister Valdis Dombrovskis's coalition came to power in March, and Eglitis is the
first to resign after the government set about masking vutsd to qualify for international
loans which could save the country from bankruptcy.
Eglitis said the cuts would leave many poor patients without any healthcare. "As a
doctor and a healthcare specialist in charge of the public health sector, I cannot accept
this," he said. But Prime Minister Dombrovskis, accepting his resignation, said that
Ivars Eglitis had chosen the easy way out. In fact Latvia's health care industry needed
urgent reforms, the PM claimed.
On 16 June, the Saeima (Latvia's Parliament) approved budget cuts of 500 million lats
(about £607 million) needed to qualify for the next instalment of rescue loans from the
European Union. A loan package of €7.5 billion (£6.4 billion) was agreed in December
2008, but Latvia must cut its budget deficit as a condition of receiving the loans. Other
cuts include reducing state pensions by 10% and cutting public sector salaries by 20%.
Latvia's economy is forecast to shrink by at least 18% this year because of the global
economic downturn, risking the country becoming one of the worst performers in the EU.
Recession hits the economy
Voters win the right to dissolve the Saeima
In late April President Valdis Zatlers signed the constitutional amendments that will make
Latvia the only country in the EU where the electorate can directly dissolve its
parliament (Saeima) by popular vote.
The Constitution's Article 14 now states that no less than one-tenth of voters can
initiate a national referendum on the dissolution of parliament. If a majority of
referendum participants, and no less than two-thirds of the number of voters who
participated at the previous Saeima elections, votes for dissolution, the parliament will
be deemed dissolved.
The Constitutional provision that the electors may not recall any individual member of the
Saeima remains unchanged.
The Constitution's Article 49 has also been amended so that extraordinary Saeima elections
are called no sooner than one month, and no later than two months, after the current
Saeima is dissolved.
The amendments will take effect after the next Saeima elections.
Children and Family Ministry abolished
The Latvian government announced at the end of April that it was going to
abolish the Ministry of Children, Family and Society Integration Affairs and redistribute
its functions under the umbrella of three existing ministries. The government announced on
28 April its decision to reorganise the Ministry of Children, Family and Society
Integration Affairs, dividing its functions among the Welfare Ministry, the Justice
Ministry and the Education and Science Ministry.
Teachers salaries to be cut by 20%
Discussions between the Education and Science Ministry and teachers unions agreed
on 20 April on teachers' salaries being reduced by 20% per shift.
Inga Stale, Director of the finance department of the Education Ministry said that they
took into consideration the terms and conditions of the changes so the process would not
affect the reforms to be carried out in the education sector. Among the proposed changes
is the plan to turn control of the schools over to local municipalities.
The proposal still needs to be approved by the government and, should it pass, salaries
would be reduced by 69 lats (about £93) per shift.
Baiba Baskere, the representative of the Latvian Education and Science Workers Union, said
that despite the agreement, protests from the union would continue to take place. A strike
was also being considered, she said.
The agreement was won of several radical proposals on the table. There was yet a
possibility, according to finance director Inga Stale, that the government could approve
even tighter budget cuts. If so, teachers salaries would not be reduced because their
salaries would then not reach even the level of minimum wage.
Recession hits the economy
In a report on 9 February the Latvian statistics office estimated the country’s economy
has shrunk at the fastest rate since the early 1990s, when it first became independent of
the Soviet Union. The Latvian economy had been booming for several years, driven by
consumer demand, but was hard hit last year as the global financial crisis developed.
Gross domestic product fell 10.5% in the last quarter of 2008 from the same period a year
earlier, and economists believe that GDP could fall as much as 10% this year. Andris
Vilks, chief economist at banking group SEB, said "We are dropping in the hole faster
than we expected. I would say that we will see double-digit [GDP] decreases for the first
and second quarter."
Manufacturing output dropped by 11.3% in the quarter compared with a year earlier, while
the retail trade sector fell 15.6% and hotel and restaurant businesses went down by 24.8%.
The national labour agency reported a rise in unemployment from 7% in December to 8.3% in
January.
At the end of December, the International Monetary Fund approved a €1.68 billion rescue
loan for Latvia. It was part of a €7.5 billion package combining funding from the EU,
the World Bank and various other sources.
The dire state of the economy led in mid January to violent demonstrations in the capital
Riga, which followed an anti-government protest. After failing to storm the parliament
building rioters moved to the business quarter, smashed shop windows and overturned a
police van. The violence followed a peaceful rally in which some 10,000 people accused the
government of economic mismanagement and demanded new elections.
People were expressing frustration at rising unemployment and tax increases. The
centre-right government coalition of Prime Minister Ivars Godmanis was blamed for the
economic collapse.
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: Riga, 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
Prime Minister Ivars Godmanis
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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Police to go on unpaid leave
In an effort to save money on wages, police chiefs decided on 27 April that parts of the
Lithuanian police force would be asked to take unpaid leave. In a meeting between police
leaders, heads of divisions of the police department said there were only two ways of
saving funds in the current difficult financial situation – a reduction in numbers or
mass unpaid holidays. The daily newspaper Lietuvos Zinios reported that it was
the latter option that was chosen by consensus.
Lithuanians in Ireland encouraged to vote
Lithuanian citizens in Ireland have begun a campaign encouraging fellow nationals to vote
in the upcoming Lithuanian presidential election. The move has been a response to the
statistic that only 2% of Lithuanians living in Ireland have ever exercised their right to
vote in their homeland’s elections. The movement, called “As Esu” (I Am),
began in 2008 to inform Lithuanians about the national parliamentary elections. As Esu
aims to notify people about how they can vote in the 17 May polls.
President calls for foreign investment:
President Valdas Adamkus has stated that Lithuania could be among the first countries in
the European Union to emerge from the current financial crisis, but added that this could
only happen with strong foreign direct investment into the country.
Speaking at a meeting of the British Chamber of Commerce in mid April President Adamkus
said "We seek to be among the first countries back on the track of economic growth,
ready to continue our ten-year race toward EU economic standards. However, we understand
that this will be possible only if we retain Lithuania's financial stability and attract
more business people willing to work and invest in Lithuania … It is only through
streamlined business efforts to realise its objectives and meet the changing market needs
that we can expect to achieve economic recovery."
Stifling bureaucracy and corruption have been cited by business leaders and investment
experts as hampering foreign investment in Lithuania. Nevertheless, the British ambassador
to Lithuania Simon Butt gave his support to the country. "Lithuania has many assets
as a place to do business and this is a message I emphasise when meeting with British
businessmen, whether here or in the UK … The generally open business environment,
developed infrastructure, good technical base, good skills and location advantages will
survive the present downturn and will provide momentum as Lithuania emerges from
recession."
Adamkus said that those clever enough to adapt would emerge on top after the crisis.
"At present, international trade and direct investment flows have decreased among
many nations. But I have no doubt that those who will be the first to find new business
and investment opportunities, better use their resources and respond to altered market
conditions will also be the first to benefit from economic recovery. … We are members of
the EU single market. It has given us real benefits, broadened our economic horizons and
opportunities. I would say that the present economic slowdown is a good opportunity to
re-evaluate the advantages offered by the common market and by such countries like
Lithuania."
UK demands more security knowledge
Authorities in the United Kingdom have demanded better security knowledge on convicted
people coming to the UK. The request came in mid April and followed a series of brutal
murders by Lithuanian migrants.
The UK authorities have been concerned about “loopholes” in immigration policies that
allow criminals from European countries into Britain. A prime example was Vitas Plytnykas,
who killed a woman before chopping off her head and hands and dumping them in the sea. He
had a previous conviction for manslaughter in Germany. "Two young women have
tragically lost their lives, killed in Scotland by men who had convictions for violence
before they arrived on these shores,” a UK official said. "It is clear that the
U.K. needs a joined-up strategy to deal with what is often a hidden problem, emerging
after something terrible has happened. Currently there are people entering Scotland every
day for whom we have no idea of their background."
Lithuanian Government website
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Macedonia fulfils conditions to ease visa regime
The European Commission has concluded that Macedonia has fulfilled all conditions for
liberalisation of the visa regime. The conclusion came on 18 May as part of the
report on the extent to which the Western Balkan countries were prepared to meet the
criteria of the Schengen White List. Macedonia received a top mark (5) on security of
personal documents and on fundamental rights, which pertains to antidiscrimination
measures and policy towards the Roma. The state received a slightly lower grade (4) for
policies of readmission and illegal migration and public order and security, both relevant
to the fight against organised crime and corruption.
After a meeting with European Commission Vice-President Jacques Barrot, in charge of
Justice, Freedom and Security, on 26 May in Brussels, Foreign Minister Antonio Milososki
said he expected free visa regime for Macedonian citizens to be in force by the end of the
year.
Barrot was aid to be highly appreciative the country's results in meeting the benchmarks
related to justice, internal affairs, in particular the reforms of police, judicial system
and fight against corruption, praising the Government's continuous efforts to soon realise
the eventual goal – the opening of EU accession talks.
The final decision on visa liberalisation would be adopted through if a majority of EU
member-states agree, and subject to a recommendation from the European Parliament.
The Schengen “White
List”
Applicant states have to undertake reforms in order to qualify for
visa-free travel with the Schengen countries. The necessary reforms are far-reaching, but
it is clear that these reforms would be beneficial not only to the Balkan countries, but
also should help protect the EU against crime and illegal immigration from all over the
world.
Assessment
for Macedonia (PDF download) |
Gjorge Ivanov elected as Macedonia's new
president
In the presidential elections on 5 April voters chose Professor Gjorge Ivanov as their
fourth president since the country declared independence in 1991. Supported by the ruling
VRMO-DPMNE-led coalition, Ivanov won 437,470 votes, while the SDSM candidate and fellow
professor Ljubomir Frckovski - ironically, a former co-author with Ivanov - took 252,195
votes, with nearly 97% of the ballots counted.
In his victory speech, Ivanov said his main priorities would be NATO and EU integration
and resolution of the "name issue with Greece".
VMRO-DPMNE party leader and Prime Minister Nikola Gruevski thanked outgoing President
Branko Crvenkovski for his co-operation "despite our disagreements". The
VMRO-DPMNE congratulated all voters for participating in fair, democratic and peaceful
elections and emphasised they were crucial to NATO and EU integration.
The 43% voter turnout was the lowest in the country's short history of presidential
elections. International monitors from the OSCE/ODIHR expressed initial satisfaction that
the elections had been calm.
One noticeable characteristic of this second round in the elections was low turnout in
mainly ethnic Albanian areas, with relatively few voters making a presidential choice. An
official of the DUI - the ethnic-Albanian party within the ruling coalition - said his
party supported Ivanov but the decision lay with the voters.
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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President wins support from Moscow
Outgoing President Vladimir Voronin, who will oversee an early parliamentary election next
month, received support from Russia on 22 June with the announcement that it could
lend $500 million to the country.
Voronin has been in office since 2001 and cannot run for a third term. A week earlier he
had dissolved parliament and called an early election for 29 July after MPs twice failed
to elect a new president. His candidate had been short of just one vote to be approved.
His Communists finished far ahead in an April parliamentary election, but the outcome had
been followed by violent protests.
During a meeting in the Kremlin Russian President Dmitry Medvedev told Voronin: "Of
course, I would like to tell you that we supported and support the measures taken by
Moldova's leadership to restore constitutional order. These are difficult times now, very
difficult from the economic point of view," Medvedev said. "We should give it
some thought and decide what else needs to be undertaken to develop trade and economic
ties at a time of crisis."
Voronin has accused Romania, which has strong cultural and historic links with Moldova, of
fomenting the violence. "I am very grateful that in these hard days of political
uncertainty and attempts to destabilise our country … Russia was the first and probably
the only country that advocated Moldova's lawfully elected authorities," Voronin said
to Medvedev.
Russia watched with unease as pro-Western leaders were propelled to power in Ukraine and
Georgia after demonstrations that Moscow said were sponsored by the West.
However the Organisation for Security and Co-operation in Europe (OSCE) said a week
earlier that Moldova's authorities had failed to address opposition allegations of vote
rigging and that it had credible reports about mistreatment of detainees after the
protests.
In another gesture of Moscow's support for Voronin, Prime Minister Vladimir Putin promised
sizeable financial assistance. "We are considering your request to extend to Moldova
a state credit of $500 million. " Putin said at a meeting with Voronin the same day.
The first tranche worth $150 million could be disbursed within six to eight weeks. Putin
did not give any further detail about the loan or spell out its conditions.
Supreme Court orders election recount
On 12 April the Supreme Constitutional Court ordered a recount of the parliamentary
election results. The initial count of votes at the previous Sunday's election was clearly
won by the Communist party, with almost 50% of votes, confirming the existing government
in power.
On 13 April the Central Electoral Commission said the recount would take place on 15
April. CEC chairman Eugeniu Stirbu said the recounting would take one day. The effort
would involve all the members of electoral commissions at polling stations, about 20,000
people in all. The ballots would counted in the presence of political party
representatives and election observers. “We have established a recounting procedure that
must be as efficient and transparent as possible,” Stirbu said.
When the result of the 5 April elections were announced, well-organised anti-government
protests followed, with opposition groups claiming the electoral register had been rigged
by including the names of dead people. They saw no point in a recount, saying it was not
the count but the register that was fraudulent.
After two days of protests demonstrations against the election result turned violent, and
protesters broke into government buildings. Two people were said to have died. The family
of a student protester who died said he was beaten by the police, but his subsequent death
was caused by riot control gas. The unrest was said to have prompted President Vladimir
Voronin to ask the Constitutional Court for a recount.
The president of the Court, Dumitru Pulbere, said that the recount would also involve an
examination of voters' lists.
Opposition groups say infringements include the insertion of the names of long-dead
residents on electoral lists. They are demanding a fresh election. Observers from the OSCE
international monitoring team had earlier concluded that the vote had been generally fair.
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
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PM hopeful for visa liberalisation
Montenegro is confident that it will be placed on the Schengen White List by early next
year. However, the country must first deliver on its remaining EU benchmarks. "There
is no more visible way to promote reforms and European values than visa
liberalisation," Montenegrin Prime Minister Milo Đukonović said on 22 June.
At their recent meeting in Luxembourg, EU foreign ministers had indicated that Montenegro,
together with Macedonia and Serbia, was on track and could see the visa requirements
lifted within months.
Prime Minister Milo Đukonović, recently elected to his sixth term, has declared the
issue a government priority. "There is no more visible way to promote reforms and
European values than visa liberalisation," he said after his inauguration. "We
believe ... [that] we will enable Montenegro to be among the first countries in the region
whose citizens will soon travel to Schengen countries without visas."
The government must still convince Brussels that it will deliver on several key issues,
such as battling corruption, money laundering, and equipping all border crossings with the
requisite technology. Montenegro had already met most of the EU conditions, including the
issuance of biometric passports, which started in 2008.
Prime Minister meets with Serbian President
Prime Minister Milo Đukonović met on 17 June with Serbian President Boris Tadić,
attending the Summit of Southeast European Heads of State in Cetinje.
The talks focused no further development of co-operation between Montenegro and Serbia, as
well as overall relations in the region, notably in the context of European integration of
the western Balkan countries.
European party clear winners in general
elections
The Coalition for a European Montenegro won an absolute majority at the
parliamentary elections on Sunday 29 March, taking 48 of the 81 seats. The Socialist
National Party took 15, the New Serb Democracy took 8 and the Movement for Change received
5 seats. One mandate each was won by all four Albanian parties – Forca, the Democratic
Union of Albanians, the Albanian Coalition of Perspective and the Albanian List.
Milo Đukonović, President of the Democratic Party of Socialists, which organised the ‘European
Montenegro’ coalition, said after first results indicated a clear victory that by
lending convincing support to the coalition citizens had opted for a life of security,
economic and democratic prosperity and a European future. “This election result mirrors
voters’ confidence that with the coalition ‘European Montenegro’ it will be easier
to overcome the challenges of the global economic crisis.”

Đukonović announced that the winning coalition would make
every effort quickly to form a new responsible and competent government, capable of
effectively dealing with economic and democratic issues and successfully steering
Montenegro towards European and Euro-Atlantic integration.
But Đukonović said that relations between Serbia and Montenegro were not satisfactory.
There was scope for improving them. He was ready to work on establishing a quality
relationship, provided Belgrade displayed the same willingness. Co-operation between
Serbia and Montenegro had been considerably below realistic capacities, he suggested,
assessing that the deterioration in relations had come over two key issues - Montenegrin
independence and the recognition of Kosovo.
A key campaigning issue in the election had been whether voters wanted to see Montenegro
aligned with Serbia or to give a clear mandate for joining the EU.
The opposition party Movement for Change (PZP) received only 5 seats. Its leader Nebojša
Medojević did not concede with equanimity. He thanked all “honourable and fair people”
who voted for his party. “It became obvious that 20 years after the wall of the Berlin
Wall, you must have courage in order to vote for a political party which does not agree
that Montenegro should a country in the hands of a group of highway robbers,” Medojević
said. He said that PZP tried to explain that the route Montenegro was headed on was the
wrong one, and that the country will collapse with bankruptcy of public finances, a loss
of jobs and recession. “It is clear that the citizens did not want to heed us,” he
said, “and that they let the same captain steer the boat towards the iceberg. We will
not be held responsible for what will happen to Montenegro.”
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.
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
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