Sterke economische groei verwacht in de Balkan (en)

EUOBSERVER / BRUSSELS - The Balkans are becoming increasingly attractive for investors, a new report released by the European Bank for Reconstruction and Development (EBRD) has shown.

The Central European countries, as well as the Commonwealth of Independent States (CIS), have also registered a record growth rate in 2004, according to the survey.

The EBRD report shows an average Gross Domestic Product (GDP) growth of 6.5 per cent in 2004, in the 27 countries where the Bank has invested.

The average growth of 6.5 per cent in these countries in 2004 represents "a significant increase compared to the 5.7 per cent growth in 2003", Steven Fries, one of the EBRD's experts said at a press conference during the EBRD annual meeting, held in Belgrade.

The EBRD was founded in 1991 to help the ex-communist countries' transition towards a market economy. The Bank is present in South-Eastern Europe, Central-Eastern Europe, the Baltic countries and the CIS.

Praising the Balkans

Serbia and Montenegro, Bosnia and Herzegovina, Albania, Croatia and F.Y.R. Macedonia, were particularly praised by Jean Lemierrem the EBRD's president.

"These countries have managed to come out of repressive political regimes and of years of instability and war. Now, there is democracy", he was quoted as saying by AFP.

EBRD's investments in South-Eastern Europe have reached 1 billion euro in 2004, which is 6 per cent more than in 2003, according to the report.

Investments have strongly increased in Albania and Bosnia and Herzegovina, but the largest sums have been invested in Romania, Bulgaria and Serbia and Montenegro, reads the report.

However, it also underlines that "making business in the region remains difficult", as corruption is still an important element in the Balkans.

Other factors still stopping investors are poverty and political instability in some parts of the region, some of the participants said.

Balkans still have to face "huge" challenges

The Western Balkan countries' bid to join the EU was also been underlined during the annual meeting.

Speaking at the opening of the meeting, EU Commissioner for Economic and Monetary Affairs Joaquin Almunia i underlined the "huge" challenges the Balkan countries will have to face in order to join the EU bloc.

The political and financial aid the EU could provide is "crucial", he has said, adding that the process of reforms in South-Eastern Europe should be continued.

And according to Mr Lemierre, Bulgaria and Romania, which signed their accession treaties to the EU on 25 April, should serve as examples as far as EU accession is concerned.

The EBRD annual meeting and business Forum 2005 took place on 22-23 May.