| Georgia
(Sakartvelo / Грузия) |
Russia deploys new missile systems in secessionist areas
Hi-tech air-defence missile systems have been deployed by Russia in the disputed Georgian
region of Abkhazia. General Alexander Zelin, the commander of Russia's air force,
confirmed on 11 August the deployment of the advanced S-300 system, which can detect,
track and destroy cruise and ballistic missiles and aircraft. The announcement, two years
after Russian military action in Georgia, sent a defiant signal from Moscow to both
Tbilisi and to western authorities.
General Zelin said that air defences of other types had been deployed in Georgia's other
Russian-backed rebel region, South Ossetia. He said the defences would also protect
Russian bases in Abkhazia and South Ossetia.
Eka Tkeshelashvili, Secretary of Georgia's National Security Council, said the move showed
Russia was "strengthening its military control over these territories".
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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Government denies reports of possible agreement with IMF
The Economy Ministry denied on 25 August reports that it was seeking a new loan agreement
with the IMF when talks resume in the autumn, declaring that there is no need for such a
deal and would not be in the future. “The talks will be part of the regular
consultations, and do not have the goal of reaching a new loan agreement,” the ministry
said in a statement.
The Hungarian currency, the forint, reacted negatively to the news and lost the ground
gained against the euro, falling to 284. Subsequently it rose again after the ministry
stated that Hungary was ready to return to the negotiating table and renew the talks with
the IMF that had collapsed in July.
The government’s apparent volte-face proved embarrassing. A time when financial
markets could not be considered stable did not seem to experts the right moment to declare
that Hungary did not need financing from non-market sources. The country has €1.3
billion of maturing debt to be repaid by the end of 2010, which will rise to €4.3
billion in 2011 as the country starts to repay the IMF-EU credit.
The daily newspaper Nepszabadsag pointed out that the talks with IMF in the
autumn could give the government an opportunity to smooth out differences and draw on the
last tranches of the loan, which had not so far been used.
Opposition parties concerned about government influence on
media
Opposition parties claimed on 11 August that a government decision to combine several
media and communications regulators into a new authority with wide-ranging powers is
undemocratic. It would increase the government's influence over public broadcasters.
The newly created National Media and Telecommunications Authority will be in charge of
regulating everything from phone companies and cable TV providers to public and private
radio and TV broadcasters, as well as the internet. Gergely Karácsony, of the Politics
Can Be Different party, said this would potentially be transforming media into “government
mouthpieces”. The new law would make it impossible for public media to work
independently from the political parties and the government, he argued.
Prime Minister Viktor Orbán has been named Annamaria Szalai to head the organization for
a nine-year term. She was previously a nominee from the government party Fidesz on the
regulatory boards that have now been abolished. She has pointed out that the new regulator
would be cheaper to run and was needed because of the vast changes in media and
telecommunications. "The aim is to have content in the public media of much higher
value and better quality," Szalai said on national television a week earlier, adding
that there would be "a great distance" kept between politics and media.
László Kovacs of the opposition Socialist Party said the new rules did not conform with
European standards because they gave the government too much influence on state media.
Both the Socialists and the far-right Jobbik, the second-largest opposition party, both
announced that they would ask the Constitutional Court to review the law creating the
regulator.
The decision of recently elected President Pál Schmitt to sign the media legislation into
law without first sending it to the Constitutional Court for vetting has been criticised.
The government party Fidesz, and their close allies the Christian Democrats, have a
two-thirds majority in parliament, giving them the opportunity to pass legislation —
including constitutional amendments — without needing any support from the opposition.
President Schmitt attends first cabinet meeting
President Pál Schmitt said he will attend cabinet meetings every six months, after
appearing at the cabinet meeting on 11 August at the invitation of Prime Minister Viktor
Orban.
Schmitt confirmed that he had signed all of the 13 bills that Parliament had approved
during the summer because he had found no constitutional problems with any of them.
He added that he would work closely with one or two ministers, including Foreign Minister
János Martonyi with whom he will hold consultations before his trips abroad. Schmitt also
plans to hold consultations with National Resources Minister Miklós Rethelyi on the
Hungarian language, young people, how they exercise, and “lifelong studies”, as well
as with Defence Minister Csaba Hende and deputy prime minister Zsolt Semjen who deals with
ethnic Hungarians abroad.
Newly elected President of Hungary is former Olympic gold
medallist
Pál Schmitt, aged 68, was elected by the Parliament of Hungary with an overwhelming
majority of 263 out of 322 votes. He succeeded outgoing President László Solyom at the
end his 5-year term and was sworn in as Presiodent on 6 August. The President has been a
leading figure in the Fidesz Party, and his election has raised concerns from the
opposition that he will support the party’s efforts to change the constitution and limit
press freedom.
The role of president is largely ceremonial in the country. However, he can send any
legislation back to parliament for consideration or refer it to the Constitutional Court.
Pál Schmitt

Pál Schmitt was elected in the 2009 European Parliament elections as an
MEP with the Fidesz-Hungarian Civic Union, and then to the Bureau of the European People's
Party and was vice-chair of the European Parliament's Committee on Culture and Education.
Until taking up office he had been Speaker of the Hungarian National Assembly since May
Schmitt had also for some years been the Chief of Protocol of the
International Olympic Committee (IOC) and presided over the World Olympians Association
between 1999 and 2007. His connection with the Olympics goes further back – he won the
team épée gold medal in men’s fencing at the 1968 Mexico City Olympics and in the 1972
Munich Olympic Games. |
Consumer prices rise 4% in June
The rate of annual inflation slowed to 4% in July from the 5.3% increase in June, the
Central Statistics Office announced on 11 August. The month-on-month increase was 0.1%,
while the average inflation for the first six months came in at 5.4%.
For July analysts had expected a 3.8% rise in consumer prices, citing rising food and
energy prices to explain the higher July inflation. Food prices rose 2.8% year-on-year but
some seasonal products saw double-figure increases. Energy prices on average rose by 9.4%
in July.
Government wants to arrange emergency credit
The government has been planning to ask the International Monetary Fund and the European
Union for a ''precautionary'' two-year rescue package worth €10 to €20 billion as it
tries to control its finances.
The Economy Minister, György Matolcsy, had said in early July that Hungary believed it
needed to arrange a new credit line from the IMF and the EU in case the European situation
deteriorated. The government would seek agreement to run a larger deficit than planned
next year.
Under the current plan, agreed with the IMF, Hungary is meant to keep its budget deficit
to 3.8% in 2010 and below 3% in 2011. Matolcsy suggested that the 2011 target may need to
be relaxed.
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Governor ousted after local unrest
Kaliningrad Governor Georgy Boos was ousted on 16 August amid growing public discontent in
his region, becoming the first from the batch of governors appointed after the Kremlin
scrapped direct elections in 2004 to be unceremoniously dumped from office.
Both pro-Kremlin and opposition politicians praised the firing of the unpopular first-term
governor as a sign that democracy was working, although the opposition said it feared that
the next governor was unlikely to run the region any better.
The United Russia party decided the same day not to include Boos on its list of governor
nominees because he lacked popular support. Party secretary Vyacheslav Volodin said:?“unfortunately,
while support for our friend and colleague Georgy Boos was strong, it was not enough for
him to continue his work."
Kaliningrad was the scene earlier this year of large rallies where protesters demanded
both the resignation of Boos and of Prime Minister Vladimir Putin, who heads the United
Russia party.
United Russia presented President Dmitry Medvedev on 16 August with three candidates with
strong ties to the region: Kaliningrad Mayor Alexander Yaroshuk, his predecessor and
current State Duma Deputy Yury Savenko and Nikolai Tsukanov, who heads one of the city's
districts. Speaking at his Sochi summer residence, Medvedev embraced the party's
reasoning, saying regional leaders must enjoy trust from the local populace. "They
need to be people with absolute support and trust from the citizens who live there,"
he said.
Regional governorship elections were scrapped by Vladimir Putin in 2004 in favour of a
system in which the president appoints candidates and regional legislatures confirm them.
Under Medvedev, new rules were introduced that allow the party that controls the regional
legislature to submit three candidates to the president, who can then select one or go
with someone else altogether.
Alexander Kynev, an independent analyst, said Boos' ouster demonstrated the failure of the
Kremlin's policies toward the regions. Unlike other United Russia governors, Boos tried to
establish a dialogue with the opposition early this year. "But he did that only after
the situation verged on a crisis," Kynev said.
Kaliningrad has a tradition of more liberal politics, which have seen residents there
develop closer ties with western Europe than with Moscow. There had been fears that the
federal government would not respect these traditions. While Kaliningrad had prospered
somewhat in recent years, the region still relied on federal subsidies, and locals say
Boos has failed to deliver on promises of an economic resurgence. In January 2010, about
10,000 people protested in central Kaliningrad against rising communal tariffs. Another
protest was held weeks later. The rallies were organised by several opposition groups,
including the Solidarity movement and the Communists
Igor Revin, head of the Communist faction in Kaliningrad's regional parliament, said the
demands made by his party had influenced the decision to replace Boos. “This was a good
example of how to make the authorities fear [the opposition],” he said. He was
not, however, convinced by the proposals for replacing Boos. He said the Communists would
oppose all three candidates forwarded by United Russia because "as managers they are
even weaker than Boos." Revin said his party was especially upset with Savenko,
who as Kaliningrad mayor had a statue of Lenin removed from the city's central square.
Lost Amber Room could be in Kaliningrad

The celebrated Amber Room, the crowning glory of the tsarist palace at
Tsarskoye Selo near St Petersburg, could be hidden under a fortification in
Kaliningrad.
Researchers in the Baltic enclave say they have made new discoveries which support the
hypothesis that Nazi soldiers buried it there after looting the palace during World War 2.
A key find was a dislodged metal label with the German inscription “amber treasures”.
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 Albanians losing faith in independence
The international opinion polls organisation Gallup published on 5 August a report Focus
on Kosovo’s Independence, comparing current opinions in Kosovo and the region to
those in the period just after its declaration of independence 2½ years ago.
It appeared from the report that Kosovo Albanians have been losing faith in their country’s
recently declared independence, according to the poll by Gallup Balkan Monitor. The
authors of the report wrote: “This reduction could have been due to the poor economic
situation in the country rather than a feeling that independence had been a wrong step.”
In February 2008, following Kosovo’s declaration of independence, a Gallup poll had
found 93% of ethnic Albanians thought independence had ‘turned out to be a good thing’.
But in a survey conducted in October 2009 this figure was only 74%. The figures from that
survey were analysed following the advisory ruling by the International Court of Justice
on Kosovo on 22 July that the state's unilateral declaration did not break international
law. According to the study, citizens of Montenegro, Macedonia and Kosovo felt the Balkans
had become less stable as a result of the Kosovo-Serbia dispute, a view shared by ethnic
Albanian minorities in Montenegro and Macedonia.
However, 88% of respondents in Croatia and 77% in Albania said they believed independence
had been positive for the region.
In Bosnia and Herzegovina, 58% of citizens of the Federation, formed of Croats and Bosnian
Muslims, believed Kosovo’s independence had been good for the Balkans, while in the
Serb-dominated Republika Srpska people were split, with 21% each saying that it had had a
positive and negative impact.
But the majority of people in both ethnic entities believed Kosovo’s independence could
constitute a precedent for other separatist movements. Certainly, in the Serb-dominated
Republika Srpska, 43% of people agreed that Kosovo’s independence had cleared the way
for the secession of their republic.
Both Serbs and Albanians in Kosovo appear also to have lost confidence in the idea that
the two communities could live harmoniously together. Belief that there would be peaceful
co-existence between ethnicities had fallen from 72% to 60% among ethnic Albanians and
from 17% to 12% among Serbs. Among Kosovo Serbs, the proportion feeling insecure rose from
85% to 93%.
About two thirds of Serbs were also convinced the EU mission EULEX had not brought
improvement in the rule of law and that EULEX was not doing a good job at maintaining
security and stability in the territory. But ethnic Albanians in Kosovo were more
supportive of the mission, with almost half saying that EULEX was better than its
predecessor UNMIK and doing a good 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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President signs off controversial insolvency law
President Valdis Zatlers finally signed on 11 August the Insolvency Law that the Saeima
(parliament) passed on 26 July. The law will come into force on 1 November this year.
Giving his reasons, Zatlers noted that the President’s Chancery had not received any
petitions requesting that the law not be promulgated, and neither had the government. He
considers the law endorsed by the Saeima as a compromise, and the president is pleased
that the parliament has taken into consideration his proposed amendments.
The controversial Insolvency law passed by parliament is aimed to help borrowers who find
themselves in trouble with their finances.
The law was not welcomed by banks. To cover expected losses due to the new law, borrowing
rates will go up, a bank spokesman warned. The banks were extremely unhappy with the new
regulation and would have to raise interest rates for new customers in order to cover
expected losses. Bankers said this could slow down lending even more, and make recovery of
the economy more complicated. Parliament approved Insolvency law in its first reading in
June, but President Valdis Zatlers had then refused to sign it off until some amendments
were agreed.
Latvia proves attractive to immigrants
Since the changes in the Immigration law were approved on 1 July, two requests have been
accepted from foreigners for residence permission for five years, in exchange for buying
real estate in Latvia for an amount that reaches 100,000 lats (equivalent to €142,800
euros). Both applicants are from Russia, the Department of Citizenship and Migration
reported in mid August.
“There is no group of foreigners who would be welcomed with flowers. Special help is
offered only for repatriates who emigrated from Latvia before May 1990. All the rest are
responsible for themselves,” says the deputy head of the Citizenship and Migration
department, Maira Roze.
In January of this year 50,785 residence permits, both permanent and temporary, were in
effect. Although about half the number of permits that were handed out in 2008 were issued
in 2009, interest is still high, says the office. Last year 2,388 residence permits were
issued.
Most of the foreigners living in Latvia come from Russia, Ukraine, Belarus and the EU
countries Lithuania, Germany and Estonia. Reasons given to migrate to Latvia are most
often for family reunification, for study or for job opportunities in manufacturing
industry or in social or individual services, and for real estate dealings, explained
Maira Roze.
Juris Krumins, an economist and professor at the University of Latvia explained the trend.
“Every country is interested in attracting qualified specialists from other countries,
because they can therefore receive a skilled professional without investment in the
educational process,” he suggested. There were some specific professions which could not
be educated in Latvia, and for these foreign professionals were needed.
“Most of all immigrants in Latvia come from countries which have similar cultures.
Therefore the integration process is easier in Latvia than it could be in some other
countries,” added Professor Krumins. But he admitr6ted that a significant problem was
the local language, which many immigrants cannot learn.
Foreigners who immigrate to Latvia legally were usually planning to stay there, not to
move further to other EU countries, Maira Roze said. In contrast, any illegal immigrants
found in Latvia were usually using Latvia as a transit country to move on to other EU
countries. Most illegal immigrants come from Russia, Ukraine and Georgia.
Many employers have an interest in employing illegal immigrants because they can avoid
paying taxes for them, and their salaries can be lower. There have also been hundreds of
fake marriages - one of the most popular ways to get a residency permit.
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
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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Finance Minister downplays sharp drop in FDI
On 11 August the Central Bank announced that the amount of foreign direct investment (FDI)
in the first half of 2010 had dropped by some 89% compared with the same period in the
previous year.
The Finance Minister and acting Prime Minister Ingrida Simonyte sought to downplay the
recently released data. She said the 90% drop in FDI should be viewed in context.
"The worst thing is that a bare figure often becomes a piece of news in Lithuania,
but not arguments explaining it," she said in an interview with Ziniu radijas on 12
August. "One should have in mind that many other factors, namely that a significant
investment was made at this very same time last year. The Polish group PKN Orlen purchased
a considerable stake in the refinery from the government, which created a kind of hump in
the investment flow," she said.
The minister instead preferred to focus on the improved GDP outlook for the year, driven
by an increase in exports. "Based on a detailed analysis of export data, we see clear
signs of a vigorous and rapid recovery of exports and if this trend continues we will see
double-digit growth in 2010," she said.
Four die in weekend of storms
Four people died in the severe storms and floods that swept through Lithuania over the
weekend of 7-8 August. The storms, which struck on the Saturday night, were centred around
Kaunas, the second largest city in the region. They also left more than 8,000 people
without electricity.
Two of those killed were camping when trees and branches fell down crushing them in their
tents, where they were sheltering from the storm.
Kaunas mayor under crinimal investigation
The Mayor of Kaunas, Lithuania's second largest city, will be the subject of a criminal
probe by the national prosecutor's office, the prosecutor announced in early August.
Mayor Andrius Kupcinskas is accused of falsifying city council vote records inorder to
change disputed municipal policies.
The investigation was initiated by suspicions that the merger of two municipal hospitals,
Kaunas Second Clinical Hospital and Kaunas Red Cross Hospital, was taking place even
though the council had in April voted against the merger being proposed.
Lithuanian Government website
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Government lifts visa requirements for Russians
The government is to scrap the visa requirements for visitors from Russia over the summer
in a bid to boost tourism in the country, according to reports in early August.
Visa requirements would be lifted until mid-October. Macedonia is the fourth state in the
Balkans to drop its visa requirements for Russians during the tourist season in a bid to
lure more holidaymakers. Russian tourists form a significant number of foreign visitors
and holidaymakers in the Balkans region.
The Albanian government decided in May to allow visa-free access to all citizens of the
Russian Federation between 30 May and 31 October for tourism and private visits for a
period of up to 90 days.
Croatia announced in March it would continue its policy first implemented in 2009,
allowing Russian tourists to visit the country without requiring visas, following a drop
in tourism revenues of 11% in 2009.
Bulgaria, which is restricted by regulations of the European Union and the Schengen zone,
eased its visa requirements for Russian tourists in June following protests by Bulgarian
tourist organisations over the introduction of stricter and more complicated visa
regulations.
Russia and Turkey signed an agreement around May for the mutual removal of visa
requirements for the two countries’ citizens.
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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Black market uranium found in Chisinau garage
Interior ministry spokesman Chiril Motpan revealed on 25 August that police had
seized 1.8 kg of uranium-238 found in a garage in Chisinau, the capital city, where it had
been under guard and in a special container. He said there were seven suspects, some of
whom had previous convictions for possessing radioactive materials in Moldova, Russia and
Romania. Three members of the group, which included former police officers, have been
arrested.
Uranium-238 is the most commonly found form of the substance, a naturally occurring form.
The type needed for nuclear fuel and weapons is the less common uranium-235, which then
needs to be enriched. Nevertheless, investigator Oleg Putintica told the Chisinau ProTV
channel that the material could be used "both in the civilian nuclear industry and
for military purposes to produce weapons of mass destruction". The suspects had
reportedly been trying to sell the material on the European black market for €9 million
(£7.4 million).
Russia bans wine imports from Moldova
According to an order circulated by its customs service in August, Russia has banned
imports of wine from Moldova. In one of Europe's poorest and smallest nations winemaking
accounts for about one-fifth of the economy and employs more than a quarter of all workers
in the country. The Russian ban cuts off Moldova’s wine producers from their biggest
market.
In a document sent to its border checkpoints. Russia's Federal Customs Service said it
"hereby bans imports of the following products: wines … wine materials, cognacs
produced in the Republic of Moldova." It cited concern about the quality of Moldovan
wines, an issue that has been repeatedly voiced by Russia's Federal Consumer Protection
Service.
Back in 2006 Russia had previously banned wine from both Georgia and Moldova, which have
been traditional suppliers to the Russian market. There were then claims that Moscow was
trying to punish new leaders in former Soviet republics by hitting at their most lucrative
exports.
In this political context Gennady Onishchenko, the head of Russia’s Federal Service for
Consumer Rights Protection, also on 30 July asked Belarus and Kazakhstan to ban wine and
mineral water imports from Moldova and Georgia. He warned that Moldova that if it did not
comply with Moscow’s safety standards for wine, saying that control over the quality of
Moldovan wine was slipping after improving when the 2006 ban was lifted, and said the
Moldovan government had demonstrated its "complete ineffectiveness".
Winemaking accounts for about one-fifth of Moldova’s gross domestic product and 28-30%
of export revenues. About 20% of Moldovan wine goes to Russia.
Referendum on presidential election triggers coalition rivalry
In early August the leaders of two of the four parties in the coalition government have
admitted they may run against each other in a direct presidential election.
The pro-western coalition ended in 2009 a decade of Communist Party rule and brought the
country closer to the European Union. But there is obvious rivalry between Prime Minister
Vlad Filat, chairman of the Liberal Democratic Party, and Democratic Party leader Marian
Lupu, now acting President after the prolonged failure of Parliament to reach a
constitutional majority to choose a new President.
Voters in Moldova will be asked in a referendum on 5 September whether they approve of
amending the constitution so the next president will be elected by a nationwide popular
vote. If voters say "yes" to the proposed change, presidential and parliamentary
elections will probably be held simultaneously on 14 November.
Marian Lupu has twice failed to be elected as president by parliament. He was then the
coalition’s joint candidate. He has hoped to run in that capacity in the next
presidential vote. Prime Minister Filat, however, said in early August that Moldova needed
a strong president "born out of political competition", not a president
"made in a laboratory", a remark taken to be an allusion to Lupu's status as the
compromise candidate of the four ruling parties.
The Constitutional Court ruled the same week that former President Vladimir Voronin, a
popular veteran Communist, cannot run in the fall election because he has already served
two consecutive terms.
Only former Defence Minister Valeriu Pasat, who wants to make Orthodox Christianity
classes mandatory in schools, has yet formally declared his intention to run for
president.
Polls show a substantial majority of Moldovans would endorse the constitutional change in
the referendum scheduled for 5 September. Voters will be requested to decide on how the
president should be elected. They will be asked to answer if they approve or disapprove of
electing president by the whole nation.
In fact, before the previous constitutional reform in 2000, presidents in Moldova were
elected by the direct vote of the citizens. Currently, according to the Constitution now
in force, the head of state must be elected in the 101-member Parliament by minimum 61
votes. If both rounds of elections are unsuccessful, the incumbent president must then
dissolve parliament, but only once in 12 months. This has left a divided parliament unable
to elect a national president.
Average salary in Moldova less than £150
The average salary in Moldova in January amounted to 2699
lei (about £147) - 5.6% more than a year ago. According to the National Bureau of
Statistics, in January the average salary of civil servants exceeded 2375 lei (£130), and
in the real economy sector - 2 899 (£158).
The average salary in the education sector increased for a year by 24.7% - up to 2 203 lei
(£120), in the health and social protection sector - by 17.7% - up to 2 636 lei (£143).
The highest average salaries had previously been seen in the banking and financial sector
- 5 533 lei (£301), though it was 5% less than in January 2009. The highest salary
decreases were in the mining industry (-17.5%) and in the building sector (-7.5%).
The lowest average salary was found in the agrarian sector and fisheries - 1298 lei (about
£70). |
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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Diver harpoons tourist
Towards the end of August a 28-year-old woman was seriously injured in the Montenegrin
seaside town of Budva when a local diver shot her with a harpoon.
The woman was swimming some 20 metres from the shore when the harpoon pierced her left
shoulder. She underwent complicated surgery in the nearby town of Kotor and her condition
was reported now to be stable and non-life threatening.
The man who shot the harpoon was questioned by local police and released. Podgorica's
Vijesti newspaper quoted eyewitnesses who said the injury had been an accident, and the
man had immediately tried to help his victim.
Europe Minister submits action plans to fight corruption
and organised crime
On 5 August the Montenegrin government formally submitted to the EU Delegation to
Montenegro its strategy and action plan to combat corruption and organised crime. These
are key documents in the country’s plans for accession to the EU.
Minister for European Integration, Gordana Đurović met with Leopold Maurer, the head of
the EU Delegation, to submit the governmenbt’s strategy for 2010-2014 and its action
plan for achieving its implementation over the next two years.
The European Commission will give its assessment on the documents as part of the
Commission's opinion on Montenegro's application for EU membership. “The fight against
organised crime and corruption is the first priority in the area of political criteria in
the EU integration process” Leopold Maurer said. “A country wishing to join the EU
needs to have an appropriate legal and institutional setup, effective preventive and law
enforcement bodies, as well as an independent judiciary and prosecution. Progress in
regard to the legal framework and the institutional set up has been made but further
decisive action needs to be taken”.
Emphasising the key role of state institutions, which had primary responsibility in the
fight against organised crime and corruption, Maurer also pointed out the important role
of civil society organisations and the media. Only by working together in a constructive
manner would the fight against organised crime and corruption become fully effective. The
fight against organised crime and corruption will have to show further real results, he
stressed. A solid track record of convictions in corruption cases remained to be
established, particularly in cases of high-level corruption. In the process towards
integration this must be an early priority.
Anti-corruption plan criticised for being drafted “too
quickly”
In July Montenegro adopted a new anti-corruption strategy and action plan in the fight
against corruption and organised crime. But the government has recently been facing
criticism from representatives of non-governmental organisations, who have said they were
not consulted.
Mreža za afirmaciju nevladinog sektora (MANS - The Network for Affirmation of
the NGO Sector) called the new plan frivolous and unrealistic, as it had been drafted too
quickly by the Minister for European Integration, Gordana Đurović.
MANS Director Vanja Ćalović said: "The reforms envisaged in the action plan will
not be able to provide concrete results, because they are not based on real problems. The
action plan was secretly written by Minister Đurović without the input of the working
group members who were mandated to work on the document, and without a public
debate."
The plan was drafted after the European Commission had on 17 July criticised the
government's strategy to fight corruption and organised crime. The EC reportedly concluded
that the plan lacked a main goal, deadlines and monitoring mechanisms.
The new draft includes measures to combat cyber crime, credit-card fraud and merchandise
counterfeiting. The new framework is intended to boost Montenegro's co-operation with
neighbouring countries and should foster region-based witness protection programmes.
Vanja Ćalović said that Đurović had drafted the action plan in only a week, while
"the previous plans took a 10-member working group four months, more than 40
meetings, and a public debate."
In early August, Đurović gave the document to the EU delegation in Podgorica, as the EC
prepares its opinion on Montenegro's readiness as an EU candidate.
The Montenegrin government submitted its EU membership application in December 2008 and
hopes for candidate status by the beginning of 2011. The EC is expected to publish its
opinion on Montenegro's readiness to acquire EU candidate status on 10 November along with
its annual progress report on the country. In its 2009 progress report, the EC said that
Montenegro had achieved significant progress in political reforms, but needed to
strengthen the fight against corruption and organised crime.
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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