Recent news
from central and eastern Europe

EC to sue ten EU member-states over recognition of diplomas

Ten EU member-states will have to explain in the International Court in Strasbourg their reasons for rejecting diplomas from the new EU members Bulgaria and Romania. The European Commission intends to bring before the court Austria, Belgium, Cyprus, France, Greece, Ireland, Luxembourg, Portugal, Spain and the United Kingdom.

Rejection of Bulgarian and Romanian diplomas by these ten countries means that professionals like lawyers, doctors or sailors need to pass an examination and a validation process if they want to work in one of those states. By European law there should be no impediment for a Bulgarian to be hired in any EU member-state after 2007 when Bulgaria joined EU. The formal reason for the international court case is that these ten countries have failed to issue a directive on the recognition of education certificates even though the deadline had been January 2007.

It was thought the court process would be likely to take up to two years.

Two out of three Balkan countries will join NATO At the NATO summit in Bucharest two western Balkan nations received NATO membership invitations, while the third applicant saw its bid put on ice. Leaders of Albania, Croatia and Macedonia all arrived at the summit with high hopes. The three countries, each a participant in the Adriatic Charter, had all been told they had fulfilled the criteria for entry.

Greece had warned in advance that it would use its veto power to block an invitation to Macedonia over the long-running dispute on the name Macedonia. Last-minute negotiations yielded no solution, and the Macedonian delegation decided to return to Skopje. Foreign Minister Antonio Milososki explained "It is necessary to be with our people. This is a difficult time for a small nation."

For Albania and Croatia, however, the story at Bucharest 2008 has been quite different. "This is a miracle," Albanian Prime Minister Sali Berisha said. "With your decision you have placed great confidence in us. I would like to take a solemn oath before you today that we value this trust, above all, as a great responsibility of my nation."

Albanian President Bamir Topi vowed to use the opportunity to help other countries in the region. "Albania will support the integration of the Republic of Kosovo, and will also be willing to offer its individual contributions within the politics of NATO and the EU for the integration of Bosnia and Herzegovina, Montenegro and Serbia."

Croatia welcomed the decision as a stamp of approval on reform efforts. "This invitation represents the accomplishment of one of the two most important strategic goals of Croatian foreign policy," Prime Minister Ivo Sanader said. His other goal would be EU membership. "Our path to NATO was not easy but our experience shows that the efforts are worth it."

Olympic ceremony boycotts protest at plight of Tibetan people

Polish PM declares boycott of Beijing Olympics opening
Czechs uneasy on Tibet repression
Prague mayor to boycott the Olympics
Estonian leaders will not attend Beijing Olympics, but not a boycott

Schengen area enlargement

The Schengen area On 21 December 2007 nine newer EU member states, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenija join the Schengen area. Before then the Schengen area was composed of 15 European countries. Although not part of the European Union two other countries, Norway and Iceland are part of the Schengen area through a co-operation agreement. The Principality of Monaco allows informal entry to Schengen visa holders. Two other countries, the United Kingdom and Ireland, while part of the European Union do not belong to the Schengen area, and Schengen regulations only apply to the European territories of France and the Netherlands.

The Portuguese EU presidency announced in Brussels on 4 October that passport and customs controls at the borders between the new and the old EU member states will be abolished on the 21 December, two weeks before the original date. The Schengen area will open to nine of the new EU states. Portuguese Interior Minister Rui Pereira, whose country holds the rotating EU presidency, confirmed that the Schengen expansion should take place just before Christmas this year. The original plan had been to start the new year 2008 with an expansion of the Schengen zone. The border-free zone currently includes 13 EU countries plus Norway and Iceland. Many of the 2004 accession states have said that an end to border checks is essential for their citizens to feel part of the EU. In Malta on 24 September the Ministers of the Interior for the Czech Republic, Estonia, Germany, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Slovenija and Slovakia had met to endorse progress on the agreement on the border information exchange system called SISone4all. It was agreed that the SISone4ALL project could be successfully implemented and that controls and checks at the internal borders between the Schengen Member States should be lifted by the end of December 2007 for sea and land borders, and by the end of March 2008 for air borders. Cyprus is working to join Schengen in 2009 along with non-EU member Switzerland. Romania and Bulgaria may qualify to be included in 2011.

UK immigration from central and eastern Europe slows

The number of workers from the eight central European EU states registering in the UK has dropped for the second quarter in a row. Home Office figures for the 2nd quarter of 2007 show 50 thousand applicants, mostly Polish, have registered to work in April, May and June 2007.

The cumulative total shows 683,000 applicants from nations which joined the EU after May 2004 - but the rate of arrivals has slowed in 2007.

Between April and June 2007 there were 50,000 applications to join the UK worker registration scheme compared with 52,000 in the first three months of 2007 and 65,000 in the last three months of 2006.

Some 66% of the applications have been Polish, a trend which has continued month-by-month in 2007. About 8% of the workers have dependants including children.

Bulgaria and Romania

Only 9,565 people from Bulgaria and Romania applied to come to the UK between April and June 2007. Citizens of the two countries are governed by tighter rules rather than the free access to the UK that applied to the other countries. The figures show that between April and June 2007 3,990 were granted access to work for employers in the labour market – 21% lower than the 5,075 granted in the first quarter of the year January to March. In total 9,335 Bulgarian and Romanian nationals had their applications granted. This includes those registering as self-employed and self-sufficient. An additional 3,980 were issued cards for the Seasonal Agricultural Workers Scheme.

Home Office Minister Tony McNulty said: “It is too soon to evaluate the full impact of the accession of Bulgaria and Romania to the EU. Our indications are that the policy of restricting access to the UK’s labour market is helping to ensure that only those who have something to offer the UK are allowed to work here. …. The message is clear – while we welcome those who are here to work legally bringing their skills and expertise and benefiting our country, those who don’t have permission to work here won’t find a job.”

Link: The Bulgarian and Romanian Accession Statistics 2nd quarter 2007

Accession Monitoring Report for the A8 countries May 2004 to June 2007
Download as PDF document (39 pages)

Economic outlook for central Europe suggests continuing high growth

In its new forecast for central, east and south-east Europe, published in early July, the Vienna Institute for International Economic Studies has analysed the current economic situation in the region as well as development prospects for 2007 and 2008.   Brief country surveys are added for Albania, Bosnia & Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Macedonia, Poland, the Slovak Republic, Slovenija, Serbia, Montenegro, Romania, Russia, Ukraine and Turkey (as well as China). An annex contains indicators of competitiveness as well as revised projections of per capita GDP until 2015.

May 2007 marked the third anniversary of the accession of the eight countries of central Europe to the EU. The first three years of EU membership were a clear economic success. Over the period 2004-2006 GDP in the new member states increased by 5.3% on annual average, 2.2% faster than in the previous three years.

The new member states substantially increased their lead in terms of growth over the EU-15 and their catching-up process accelerated. The difference between pre- and post-accession periods was even more spectacular when looking at investments. Export growth rates nearly doubled after EU accession and trade balances in the new member states have improved. Stronger economic growth reduced unemployment and fostered employment.

Exports - new member states 2001-2006

The report forecast that during 2008 high GDP growth would continue in the new member states, except for Hungary. Nevertheless, in all but two countries (the Czech Republic and Hungary) growth rates are predicted to be somewhat lower than, or equal as, in the current year, because of constraints on further acceleration of the current rapid pace of growth. There were risks of overheating in Bulgaria, Romania and the Baltic States. Only in Slovakia did very high growth seem to be sustainable, at least over the next two years. Export growth would be high, reflecting a favourable international environment, growing import demand of the main trading partners and continuing competitiveness of the new member states.

Wiener Institut für Internationale Wirtschaftsvergleiche
The Vienna Institute for International Economic Studies

High Growth Continues, with Risks of Overheating on the Horizon
Research Report no.341, by Vladimir Gligorov, Sándor Richter et al, July 2007