Macedonian consumers optimistic about possibilities for saving over the next 12 months

According to the data of the State Statistical Office, the value of the consumer confidence indicator in September 2010 decreased by 2,7 percentage points compared to the value of the previous month.
The decrease was due to unfavourable expectations for the financial situation of the households, the economic situation of the households for the next 12 months, as well as the estimates for the unemployment.

The expectations for the probability of savings over the next 12 months were more satisfactory in September 2010 compared to the previous month. In September 2010, the expectations for the financial situation of the households for the next 12 months were unsatisfactory compared to their expectations in the previous month, as well as compared to September 2009. In September 2010, the households assessed that the general economic situation in the country in the next 12 months as well as the unemployment will be unsatisfactory compared to their assessment in August 2010.

News source: State Statistical Office link: publication

Romanian state-owned company floatation can replace agreement with IMF

By selling the significant stakes it still holds in its companies on the stock market, the state can plug the holes in its budget and also offset the domestic currency depreciation trend, thus avoiding a new loan from the IMF.
The recent experience of the floatation of a petroleum giant in an emerging country, Brazil's Petrobras, reveals that a public offering can generate, besides money to the budget, an appreciation of the exchange rate. The Brazilian state sold 70 billion dollars' worth of Petrobras shares and while the offering was still standing, the country's currency significantly appreciated, because of the high demand from foreign investors, making the central bank buy foreign currency to balance the exchange rate.
 

news source: ZF English link: article

CEFTA Chambers to work on a joint project with DIHK

Business chambers from Central European Free Trade Agreement (CEFTA) signatory-states together with the German Association of Chambers of Industry and Commerce (DIHK) will work on improving the capacity of small and medium companies in order to feel the benefits from this agreement and to boost expert capacities of chambers for better dialogue with governments. As a result, Germany's Federal Ministry for Economic Cooperation and Development through the Open Regional Funds for Southeastern Europe has set aside 1.5 million euros for the project to be realized in a period of three years with a possibility to be extended for another three.

 

In addition to CEFTA signatory countries, the project also includes companies from Turkey, Bulgaria, Greece and Romania. German government's assistance is significant for CEFTA countries because it demonstrates support for the establishment of single free trade zone in the CEFTA region. The Economic Chamber of FYR Macedonia on Wednesday hosted a workshop in the frames of the project where CEFTA countries exchanged experiences on the role of the business community in creating business climate.

news source: Balkans.com link: article

Fabris: Montenegro to technically come out of the recession on Friday

Main economist of the Central Bank of Montenegro (CBCG) Nikola Fabris said that Montenegro would technically come out of the recession on Friday, October 1. He said that the banking system has been stabilised, Montenegro is gradually entering the growth phase and further capital increases of banks cannot be excluded, as well as the fact that the capital of three banks has been increased this year.

A frame for preserving the financial stability needs to be developed in the future, which implies strong institutions and precise national plans. Great interest in the directions of development of the economy characterised the Conference on economy of Montenegro on Thursday, October 29.

 News source: Limun.hr link: article

Slovenian government to implement strict budgets in the next two years

The Slovenian government adopted a budget for the next two years in which they plan to freeze the salaries of the officials, the pensions and the social assistance.

The frozen charges will be reviewed in 2012 and then only if the rate of inflation is greater than 2%.
It is expected that budgets for 2011 and 2012 to reduce the projected budget deficit of 4.9% of GDP to 4.5% next year and to 3.6% in 2012.  The Slovenian Prime Minister said the country has a favourable credit rating, but must be careful about the pace of the debt growth.

news source: Mk Fondovi link: article

Bulgaria GDP Grows 0.5% in Q2, Spells End of Recession

Bulgaria's gross domestic product marked an increase of 0.5% in the second quarter compared to the first three months of the year thanks to a rise in exports, pulling the country out of recession, the prime minister announced on Thursday.
Boyko Borisov spoke at the 96th Conference of the heads of statistical offices of the European Union Member States, which the Bulgarian capital hosts. The official data he cited is based on the revised methods for GDP under the EU standards.

"This is the first time that Bulgaria's GDP grows since the recession set in at the end of 2008 and the beginning of 2009 and it is due mainly to a rise in exports", Borisov commented.
"The statistics show that Bulgaria's recession has bottomed out. The average Bulgarians however are still bearing the brunt of the economic crisis and more efforts will be needed for their living standards to rise", he said.

News source: Novinite.com link: article

Bosnia's power utility picks three firms for Q4 power surplus

Bosnia's second largest power utility Elektroprivreda RS (EPRS) has picked three firms to buy its power surplus of 409,160 megawatt-hours in the last quarter of 2010, it said on Wednesday.

EPRS will sell 169,470 MWh to the Bosnia-based GEN-Energia and 112,820 MWh to its Slovenian parent company GEN-Energia, while the remaining 66,360 MWh will go to the Swiss branch of trading and investment group Energy Financing Team (EFT), the company said in a statement to Reuters.

These quantities were all unguaranteed power surplus while the company decided not to sell 60,510 MWh in guaranteed power surplus because of unfavourable price, it said. It declined to reveal the price, saying it was confidential information.

news source: Balkans.com link: article

Albanian foreign trade in August 2010

During August 2010 were exported 9,713 mln leke commodities, decreasing 27.9 percent compared with July 2010 and increasing 35.9 percent compared with August 2009. There were imported 40,304 mln leke commodities decreasing 9.4 percent compared with July 2010 and increasing 19.5 percent compared with August 2009. This month the trade deficit is 30,591 mln leke signing a decrease of 1.4 percent compared with July 2010 and signing an increase of 15.1 percent compared with August 2009.

Trade with the EU countries is 62.8 percent. The main trade partners remain Italy and Greece. With Italy the export is 47.2 percent and the import 26.6 percent, while with Greece the export is 6.5 percent and the import 12.5 percent. Some of the partner countries with which our export and import is increased are: in exports, Russia, Great Britain, Slovenia, Serbia, Switzerland, USA, etc and in imports, Austria, Greece, Kosovo, Italy, Turkey, Switzerland etc.

The comparison with the previous month of some group commodities shows that:

Export of “Minerals, fuels, electricity” increased 12 percent, etc. Export of group “Leather and leather manufactures” decreased 74.6 percent, “Machinery, equipment spare parts” decreased 43.2 percent, etc.Import of group “Minerals, fuels, electricity” increased 19.9 percent, “Food, beverages, tobacco” increased 8.4 percent. Import of group “Leather and leather manufactures” decreased 56.3 percent, etc.In August 2010, the import of goods with excise is 6,882 mln leke or 17.1 percent of the total import. During this month, the import of goods with excise increased 3 percent, compared with July 2010. Oil fuel products are the main imported goods, 69.6 percent, in the group of goods with excise. 

News source: Instituti i Statistikës link: publication

2011 EU budget: MEPs defend innovation and external actions

After three days of negotiations and voting, Parliament's Budgets Committee on Thursday finalised the bulk of its position on next year's budget. Its key changes increased funding for research, innovation, student mobility, energy and support for the Middle East peace process. This was the first budget exercise under the Lisbon Treaty, which gives Parliament a full say on the whole budget, including farm spending.

Committee members agreed to stick to the limits as laid down in the multi-annual financial framework, which applies until the end of 2013. The committee's position reflects priorities such as research, innovation, student mobility, energy and support to Palestine.

Unlike the Council of Ministers, the committee chose to create headroom for additional spending that might become necessary but is still uncertain. This approach should make the budget more realistic and transparent from the start and should avoid remedial patchwork after the whole budget has been decided.
In general, MEPs sought to restore the draft budget proposed by the Commission, after cuts by the Council in August. Exceptionally, the Budgets Committee voted to increase the budget above the Commission draft version. The committee position will thus be slightly above the draft budget, which is more restrictive than in previous years.

News source: European Parliament link: article

Research Cooperation between Croatia and Serbia: 73 Proposals Submitted

73 project proposals were submitted to the 2011-2012 tender for co-financing Croatian-Serbian research and development projects, the deadline of which was June 1st. Projects range from history and political science to quantum physics and biochemistry, with a number of agricultural projects as well.
In more detail, the proposals were submitted in the following fields:

• biotechnical science - 23
• natural science - 16
• social science and humanities - 13
• applied science - 14
• medicine and biomedicine - 7

All proposals are currently under review. The Joint Croatian-Serbian Committee will meet around the end of the year 2010 in order to select the projects to be funded in the period of 2011 to 2012. The implementation of the selected projects will begin on January 1, 2011,”.
The most sucessful Croatian faculties in this call were the Faculty of Agriculture in Osijek and Faculty of Agronomy in Zagreb, which partnered with relevant faculties or institutes in Serbia.

News source: WBC-inco.net link: article

Piraeus Bank withdraws bid for ATEbank, Postbank

Piraeus Bank, Greece's fourth largest lender, on Thursday withdrew its offer to buy government stakes in ATEbank and Hellenic Postbank  after the government took too long to decide on the bid, its deputy CEO said.

"Two and a half months after expressing interest for ATEbank and Hellenic Postbank, Piraeus Bank withdrew its interest after seeing that the pertinent (government) decisions are not to be expected in the immediate future," Deputy Chief Executive Stavros Lekkakos said.

Greece, which wants to shore up its lenders against the effects of the country's debt crisis, had hired HSBC, Deutsche Bank and Lazard to produce proposals on how to go about it and evaluate Piraeus Bank's offer, reviving speculation that some of its banks could merge.

News source: Reuters link: article

Moody's downgrades Slovenia's three largest banks - negative outlook

Credit rating agency Moody's on Tuesday downgraded Slovenia's three largest banks, Nova Ljubljanska Banka (NLB), Nova KBM (NKBM.LJ) (NKBM) and Abanka Vipa (ABKN.LJ), as the country struggles to recover from the financial crisis. "The ratings downgrades are driven by continuing pressure on the banks' financial metrics, given the weak credit environment in Slovenia and in other regional markets in which they operate," Moody's said in a statement.

NLB's deposit ratings have been downgraded by two notches to A3/Prime-2 and its bank financial strength rating to D+, Moody's said. NKBM's deposit ratings have been downgraded by two notches to Baa1/Prime-2 while its financial strength rating was downgraded to D.

Abanka's financial strength rating was affirmed at D+ but its long-term deposit rating was downgraded by one notch to Baa1, Moody's said.

The ratings agency said all of the ratings carry a negative outlook.

 "The anaemic economic recovery in Slovenia, which has followed the sharp recession in 2009, continues to generate corporate insolvencies and is likely to result in further asset quality deterioration and significant provisioning needs in the second half of 2010," Moody's said. Slovenia was badly hit by the global crisis because of its dependency on exports. Its economy contracted by 8.1 percent in 2009. The government expects a mild recovery this year.

NLB, which was Slovenia's only bank to have been included in the EU stress test scheme, barely passed the stress test in July and said it needed to raise 400 million euros of fresh capital by the middle of 2011 in order to meet tougher EU capital requirements. NLB said in a statement that its financial position remains under pressure

News souce: Balkans.com link: article

NBR to keep interest rate at 6.5%, the highest in the region

The NBR (National Bank of Romania) today will leave the RON interest rate unchanged, at 6.25% a year, and will not change the minimum reserve requirements, either, anticipate unanimously the members of the Association of Financial-Banking Analysts in Romania. Foreign analysts expect a similar decision.
"Although economic activity remains very weak - with a Gross Domestic Product contraction of 2% this year - the central bank has no room to manoeuvre for the time being. Conditions on the financial markets can change fast, and become unfavourable for the RON and for Romanian T-bills. 

news source: ZF English link: article

Message to Romanian Government: Take ten steps back and let the economy work

Codruţ Pascu, managing director of consultancy Roland Berger, says the private sector is the one that should chose Romania's development directions, with the state only being responsible with helping this materialise. "I am concerned about those who expect much more, but I am optimistic to see that the private sector is doing its homework, especially as far as exports are concerned. We have 40 priority axes instead of a maximum of two or three. The private sector ought to choose its markets for strategic development, and the government ought to take ten steps back and let the real economy work," said Pascu at the conference Romans - The Romanian Manufacturers Summit, organised by marketing agency United. 

On the other hand, Adrian Rus, president of Broadhurst Industrial Management, which specialises in industrial management, says the state should support the business sector more in order to increase competitiveness by creating a more flexible labour market, by delaying or even suspending tax payment for the duration of technical unemployment, by taking part in international fairs, and by introducing or consolidating commercial relations with Middle Eastern countries and with Russia as a state policy. 

News source: ZF English link: article

Weak sentiment may harm Greek tax revenues, boosting chances of further measures

While Finance Minister Giorgos Papaconstantinou appears confident Greece will meet or even exceed the 2010 budget deficit target of 8.1 percent of gross domestic product agreed in the economic policy program with the European Commission, the European Central Bank and the International Monetary Fund, executives from the private sector appear more pessimistic about the prospects of their firms and the real economy.

This, in turn, poses a dilemma: Can Greece stick to the austerity program and slash its budget deficit as planned or will the burden of a badly bruised private sector undermine this effort?
There is no doubt that the country’s fiscal consolidation is unprecedented even by international standards. The general government budget deficit will have to be reduced by some 11 percentage points of GDP between 2010 and 2013, half of which is planned to be slashed this year.
But the government, which let the country get to this point, has no other way but to cut its budget deficit and satisfy the terms of the memorandum if it wants to secure the remaining 10 loan disbursements from the 110-billion-euro financing package provided by eurozone countries and the IMF. It is noted 80 billion euros come from the eurozone and the rest from the IMF.

News source: Kathimerini link: article
 

Buzek: Montenegro to receive candidate status by the end of November

During a conversation with President of the Montenegrin Parliament Ranko Krivokapic, President of the European Parliament Jerzy Buzek said that he expects the opinion of the European Commission on Montenegro to be positive and hopes that Montenegro would receive the EU candidate status by the end of November.

Krivokapic is staying in Belgium with members of the parliamentary Committee for Stabilisation and Accession of Montenegro and the European Parliament. Buzek said that the cooperation of the European Union and Montenegro has been strengthened and added that he welcomes the total Montenegrin progress in reforms.

News source: Limun.hr link: article

Macedonian airport Ohrid’s St. Paul the Apostle Airport is one big construction zone

Ohrid’s St. Paul the Apostle Airport is one big construction zone as work on the expansion of the airport and the reconstruction of its terminal building, which commenced at the beginning of September, continues. The airport’s operator, TAV, plans for the construction work to be completed by March 2011. The project’s chief engineer, Jurgen Kurtaj from Tirana, told the “Utrinski Vesnik” newspaper that Ohrid will have the capacity to handle many aircraft. “During the summer approximately 15 aircraft landed at Ohrid per week but when the reconstruction is completed we expect the number to be much greater”. TAV is also hoping that passenger numbers will triple and that Ohrid will manage to steal away airlines and customers from nearby Priština and Tirana.

Currently, a 1.000 square meter hanger and a 2.000 square meter VIP lounge are under construction at Ohrid. The airport has already received a 6.000 square meter parking lot. The main terminal building is next to go under the hammer. TAV is investing 200 million Euros into Skopje and Ohrid airports. Currently, at Skopje, foundations are being laid for the new terminal building while its runway is being extended. In July, Ohrid handled 7.341 passengers, a decrease of 4.2% from last year while Skopje welcomed 90.269 passengers, a strong surge of 17%.

News source: EX-YU aviation link: article

Two thirds of Croatians want referendum despite government´s concession

Two thirds of Croatians say they want a referendum on controversial labour law amendments despite the government already withdrawing it.  A survey by market research agency GkK shows that 65 of those questioned would like to see the referendum take place. Twenty two think it is no longer needed considering the government has retracted the amendments, while 13 per cent are undecided. Earlier this summer, labour unions had collected almost double the necessary number of petition signatures in order to call for a referendum.

Those in Istria, Rijeka and Gorski Kotar are most in favour of the referendum (71 per cent) and so are the young people, under 34 and middle-aged, between 55 and 64 years old (73 per cent).  Also well-represented amongst the supporters are those with high school degrees (71 per cent) and those whose average monthly incomes are either below 248 Euros (71 per cent) and between 760 and 1,097 Euros (70 per cent).

News source: Croatiantimes.com link: article

Bulgarian outsourcing sector expects to double headcount in 2 yrs

Bulgaria will remain an attractive outsourcing and offshoring destination in the next three years, according to a poll among the industry conducted by Exentrix consultancy in partnership with global management consulting firm A.T. Kearney.
More than 90 percent of the respondents anticipate expansion of the Bulgarian outsourcing market over the next three years. Two-thirds expect the number of people employed in the sector will double from the current 10,000-15,000 people.

“The Bulgarian market is valued at between EUR 100 million and EUR 150 million at the moment. This is poised to increase in the future,” according to Exentrix.
The polled companies expect call centres will generated the largest portion of outsourcing demand, at 18.6%. Next comes demand for IT services with 16% followed by software development with 14%. The respondents said almost unanimously that their business have benefited from the economic meltdown by prompting foreign businesses to shift their focus to poorer countries that offer lower labour costs such as Bulgaria.

News source: Dnevnik a.m. link: article

Reservoir Files Applications for Hydroelectric Projects on the Cehotina River in Bosnia

Reservoir Capital said Tuesday it has filed government applications to build three run-of-river hydroelectric projects on the Cehotina River in Bosnia, with a combined capacity of 17.75 megawatts and an estimated output of 88 gigawatt hours per year.
The Cehotina River flows from Montenegro down into the Drina River at the town of Foca, where Reservoir's Bosnian office is located.

The company has applied for a 30-year concession covering the 26 kilometre section of the river within the Republika Srpska (an autonomous region of Bosnia and Herzegovina), which has an elevation drop of 114 metres and median flow rates ranging from 20 cubic metres per second at the Montenegrin border, to 23 cubic metres per second where it joins the Drina.
The total natural energy capacity for this section of the river is 24 MW, the company said.

News source: Proactive Investors link: article

A visa-free regime for Albania and Bosnia-Hercegovina moves a step closer

Citizens of Bosnia-Hercegovina and Albania will be exempt from EU visa requirements by the end of this year, if the full Parliament on 7 October backs a report adopted this Tuesday by the Civil Liberties Committee. The European Commission has indicated that the two countries meet the security requirements.

On 30 November 2009, the EU decided to waive visa requirements for citizens of Serbia, Montenegro and the former Yugoslav republic of Macedonia, a decision which took effect on 19 December that year.  Bosnia-Hercegovina and Albania did not meet all the criteria at the time (relating to illegal immigration, public policy and security).

Last May, however, the Commission decided that the two countries had made good progress and therefore recommended that Parliament and the Council give the go-ahead to abolish the visa requirements by the end of the year, for visits of less than three months. The Civil Liberties Committee's report, drafted by Tanja Fajon (S&D, SL) and adopted by 49 votes to 2, backs the Commission's proposal.

News source: European parliament link: article

IMF Completes Fifth Review Under Stand-By Arrangement with Serbia and Approves €366.5 Million Disbursement

The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of Serbia’s economic performance under the program supported by a Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of SDR 319.595 million (about €366.5 million, or US$494.0 million). Drawing the full amount would bring total disbursements under the program to SDR 1.55 billion (about €1.77 billion, or US$2.39 billion). In completing the review the Board also approved Serbia’s request for a modification of the end-September quantitative performance criterion. The Board also completed the financing assurances review.

Serbia’s initial 15-month SBA was approved on January 16, 2009, in the amount of SDR 350.8 million (about €402.3 million, or US$542.2 million). On May 15, 2009, the arrangement was extended by one year and augmented to SDR 2.6 billion (about €2.98 billion, or US$4.02 billion to support the government's economic program amid a sharper than expected impact from the global financial crisis.

News source: IMF link: article

S&P rating Bosnia and Herzegovina unchanged

In its latest annual report on the sovereign credit rating of BH in 2009, Standard & Poor’s wrote that the country’s rating (B+) remains unchanged, and its outlook is stabile.

According to S&P’s analysts, BH’s credit rating is limited by a complex political system and a big administrative apparatus. This kind of system slows down the process of reforms. Fiscal flexibility and management at the state level remain weak and limited by considerable conditioned obligations, against the backdrop of external exposure, the report reads.

The rating was supported by the fact that the government made external debt servicing a priority, as well as by the role of the Credit Board of BH. It might be jeopardized by failure to revise budgets.

News source: Limun.hr link: article

Bulgarian Business Leader: Budget 2011 Is Science Fiction

The growth of the Bulgarian economy projected in budget 2011 would not be reached, according to the Chair of the Bulgarian Industrial Association, (BSK), Bozhidar Danev.
A growth of 3.6% in the Gross Domestic Product (GDP) is more like science fiction because it means a 2% growth in the third quarter and 5.8% in the fourth, Danev says.

BSK supports taking out a loan in times of recession, but finds it very alarming the funds would be used for social needs, not for reforms and investments, the BSK Chair stated Tuesday, adding the cabinet's budget conceals the real expenditures of ministries because all insurance and health contributions for their employees are deposited as a State transfer and not listed in the said budgets.

News source: Novinite.com link: article

We are really interested in the Med region – Slovenian ambassador

The newly appointed Slovenian ambassador is keen on seeking ways of boosting economic ties between Malta and his country, which he said is particularly interested in the Mediterranean and the challenges it faces. In an interview with The Malta Independent, Iztok Mirosic said: “Slovenia has a Mediterranean dimension, and, like Malta, it is a small country in the European Union.”
Mr Mirosic – along with Ahmed Abdullah Majead Al Majidi, ambassador of the Republic of Yemen – presented credentials to President George Abela during a ceremony at the Palace in Valletta last Thursday.

The non-resident Slovenian ambassador said it is hoped that Malta and Slovenia would be able to re-invigorate the work of the so-called Olive Group, which brings together Italy, Bulgaria, Cyprus, France, Greece, Malta, Portugal, Romania, Spain and Slovenia. The group had been set up with the aim of ensuring that the Mediterranean dimension stays on the EU’s political agenda.
Speaking about Malta’s tourism industry, Mr Mirosic said this clearly plays a very big role in the country’s economy. His intention is to focus on increasing the number of Slovenian tourists visiting Malta and vice-versa, while seeking other forms of improving economic exchange. The trade flow between the two countries currently amounts to just €5-6 million. Referring to the English language schools sector, Mr Mirosic said that his wife learnt English in Malta as a child.

News source: Independent Online link: article

Romania and Bulgaria to jointly develop energy projects

The Act Media quoted Mr Gheorghi Parvanov President of Bulgaria in a joint press conference with his Romanian counterpart Mr Traian Basescu, as saying that Romania and Bulgaria have great cooperation potential in the energy field.
One of the topics approached by the two heads of state within their talks was the construction of one or two hydro electrical stations on the Danube. These stations could be located in Calarasi Silistra and in Turnu Magurele Nicopole. According to the two presidents, these projects could be included in the European Union Strategy for the Danube and benefit of European financing.

The two officials also discussed about the inter-connection of the two countries gas systems. Mr Parvanov highlighted the importance of this project and gave the example of the gas crisis in 2009, when Bulgaria was not able to receive gas from Romania, being the worst affected country in Europe in the wake of Russia Ukraine dispute.


news source: Steel Guru link: article

Indexes for industrial production in Montenegro, August 2010

Industrial production in Montenegro increased in August compared to the same month in the previous year  31.5%, for period January-August of this year compared to the same period in the previous year 5.6 %, while it decreased compared to average monthly production from the previous year 12.3% and compared to the previous month  14.2%.      

At sector level, for period January-August of this year compared to the same period of previous year two sectors increased : mining and quarrying 36.2% and production of electricity, gas and water 38.7% , while manufacturing industry decreased in the observed period 14.4%.     

  

News source: Monstat link: publication

Croatian firms head the list of largest in Adria region

Thirty five Croatian companies have made it into the top 100 of the Adria’s top 100 firms, new analysis by the auditing firm Deloitte shows. The study, which looks at last year's revenues, puts Croatia’s Agrokor Group and the oil company Ina at the top of the region of former Yugoslavian states. In second place behind Croatia is Slovenia with 31 firms, followed by Serbia with 23.

Agrokor took the lead two years ago, putting Ina in second place and raking in 3.6 billion Euros of revenues last year, with Ina registering 2.78 billion. In third and fourth place on the list are Slovenian firms – Mercator Group with 2.6 billion Euros and Petrol Group with 2.3 billion. Fifth and sixth place are held by Serbian Firms Delta (1.68 billion) and EPS (1.64 Billion). They are followed by Croatian HEP, Slovenian Revoz, Serbian oil company Nis ad. and Slovenian Gorenje Group in the 10th place.

News source: Croatiantimes.com link: article

Albanian labor force second quarter 2010

Labor force during the second quarter 2010 is 1,049,491 persons and the registered unemployment rate is 13.78%. The average number of employed in the private agricultural sector from second quarter 2008 till third quarter 2009 is estimated by Albanian Labor Force Survey 2007, and from the fourth quarter 2009 is estimated by Albanian Labor Force Survey 2008. The average number of employed in private agricultural sector for the second quarter 2010 is  496,190 persons.

In the private non-agricultural sector over the second quarter 2010, the average number of employed has increased by 0.2% compared to the second quarter of the previous year. The average number of registered unemployed over the second quarter is 144,641 persons. The average number of unemployed who receive unemployment benefit is 10,775 The average amount of partial social assistance per family is 3,169 Albanian LEK whereas the average amount of full social assistance is 3,940 LEK.

The minimum wage level according to the Council of Ministers Decision, No 522 of date 13/05/2009 “For the determination of minimum wage at national level” is 18,000 LEK.The base level of unemployment benefit according to the Council of Ministers Decision No 631 of date 11/06/2009 is 6,340 LEK. 

News source: Instituti i Statistikës link: publication

EU invested EUR 500mn in energy sector

The EU has invested around EUR 500mn in the Serbian energy sector since 2000, a gathering in Belgrade heard on Monday. This is according to Deputy Head of the Delegation of the EU to Serbia Adriano Martins, who announced that the EU will continue investing in this domain.
It is necessary to continue with modernization, increase efficiency and the use of renewable energy sources, Martins said at a meeting on energy in Belgrade.

Martins assessed that Serbia should continue adjusting its energy regulations to EU legislation and directives, and improve its price policy.  Serbian Minister of Energy and Mining Petar Škundric pointed out that the price of gas in Serbia is not the highest one in the region, and added that gas is cheaper in Romania and Croatia, both of which cover half of their needs from their own sources. 

News source: B92 link: article
 

China backs Greece, other debt-strained EU states

China gave its backing on Tuesday to efforts by European Union countries to tackle their debt problems.
Vice Foreign Minister Fu Ying said the debt strains facing a number of EU states would be on the agenda when Premier Wen Jiabao visits Belgium, Italy, Greece and Turkey next week.
"We have a positive attitude towards the actions taken by the European Union and IMF, and we have noted the many measures adopted by the Greek government," Fu told reporters. "We hope that Greece can recover from its present hardships." China has already extended a helping hand to Greece by agreeing to make substantial investments there. It was also a big buyer recently of Spanish government bonds.

News source: Reuters link: article

Ban meets with senior official from former Yugoslav Republic of Macedonia

Secretary-General Ban Ki-moon held talks today with the Foreign Minister of the former Yugoslav Republic of Macedonia, discussing the country’s long-running dispute with neighbouring Greece over its official name. Mr. Ban and Antonio Milososki exchanged views on the status of United Nations-led negotiations between Athens and Skopje to resolve the so-called “name issue,” according to information released by the Secretary-General’s spokesperson.

Athens and Skopje contest the official name of the former Yugoslav Republic of Macedonia, and the Interim Accord of 13 September 1995, which was brokered by the UN, details the difference between the two nations on the issue. 

News source: UN news link: article

The World Bank will convene an international conference, co-financed by UK AID/DfID, on Poverty and Social Inclusion in the Western Balkans

The World Bank will convene an international conference, co-financed by UK AID/DfID, on Poverty and Social Inclusion in the Western Balkans, to be held in Brussels on December 8^th and 9^th, 2010.

The conference will mark the conclusion of a very successful collaboration between the World Bank and DfID in strengthening collection and analysis of micro-economic data and producing policy relevant research in the region. The conference is also part of the European Year for Combating Poverty and Social Exclusion organized by the European Commission.The objective of the conference is to bring together leading academics and researchers from European Member States, the six countries of the Western Balkans and international organizations active in the area of combating poverty and social exclusion to:

- Showcase recent policy research on poverty and social inclusion in the Western Balkans
- Promote dialogue between academics and policy makers and identify
priorities for the future research agenda on poverty and inclusion.
- Encourage collaboration between researchers in EU Member States and Candidate
and Potential Candidate countries, with a view to the formation of research networks
that could be leveraged in the future to apply for EU funding.

The conference will focus on poverty and social inclusion broadly defined. It will offer an opportunity to discuss analysis and policy options on issues including: measurement of poverty and social inclusion, impact of the crisis, labor markets, migration, social protection, and vulnerable groups.

News source: Worldbank link: article

Presentation of the “Possibilities of investing in Serbia” project

State Secretary in the Ministry of Diaspora Miodrag Jaksic has presented the project entitled “Possibilities of investing in Serbia” at the 20th convention of the Congress of Serbian Unity, held in Cleveland, USA.
The project consists of some 200 specific ideas for investments in the homeland, and relating to 60 municipalities in Serbia. Jaksic has invited the Serbian emigration to invest in the country, thus realizing their business interests and gaining profit.
The Congress of Serbian Unity was founded 20 years ago, and it is the most influential Serb organization in North America, and the jubilee 20th convention has gathered 300 participants from the whole world – businessmen and distinguished public figures in the Diaspora.


news source: EMG.rs link: article

Foreign trade of Montenegro recording growth

According to preliminary data, the total foreign trade of Montenegro in the period from January to August this year amounted to EUR 1282m, which indicates a growth of 3.3 percent compared to the same period last year.

Goods in the value of EUR 201m were exported, which is an increase of 10.8 percent compared to the same period last year, while goods worth EUR 1080m were imported, which is an increase of 2 percent. The export-import ratio amounted to 18.6 percent and is higher than the ratio in the same period last year, when it amounted to 17.2 percent.

news source: Limun.hr link: article

Investors in Macedonian sun

Due to the lack of big foreign investments in Macedonian industry, the sun has become Macedonia’s most attractive product. The Macedonian Energy Agency has received 57 requests for the construction of solar power plants. Interest in the construction of solar power plants has increased drastically, especially among foreign investors.

A year ago, Macedonia had only one solar power plant, and now it has ten, some of which have already been finished, while others are in the final construction phase. Most potential investors (35 of them) are foreign investors or combined Macedonian and foreign companies, which want to built power plants of bigger capacity.

New source: Limun.hr link: article

Croatia´s in Europe´s top in industrial gas prices

The cost of industrial gas in Croatia is one of the highest in 20 European states surveyed by Eurostat.
Only Sweden, Slovenia, Luxemburg and Germany are more expensive, according to the statistics. Industrial gas was cheaper in Slovakia, Netherlands, Lithuania, Czech Republic, Poland, Finland, Estonia, Belgium, Ireland, Spain, Portugal, Latvia, Bulgaria, Romania and Great Britain.

While the data about prices in other European countries is not available, judging from the second half of 2009 only Denmark is likely to be added to the higher price list.
The prices of industrial gas went up 27 per cent in the first half of the year, almost a record increase compared to these other states. While most of these countries are also experiencing an increase, the levels are lower than in Croatia.

News source: Croatiantimes.com link: article

Lukoil Bulgaria Boasts Largest Revenues in 2009

The Bulgarian refinery of Russian oil company Lukoil leads the list of the top 1500 companies in the country by yearly revenues. Lukoil Bulgaria, which trades in the refinery output, tops the listing, prepared by the Bulgarian Chamber of Commerce and Industry, with BGN 3,18 B in revenues for 2009.

It is followed by state power utility NEK and Aurubis Bulgaria, the Bulgarian subsidiary of Europe's largest copper smelter Aurubis, whose revenues totaled BGN 2,75 B and BGN 2,38 B respectively last year. The revenues of six Bulgarian companies exceeded BGN 1 B. Earlier this month the Bulgarian refinery of Russian oil company Lukoil came in 47th on the list of 500 largest companies from Central Europe compiled by auditing firm Deloitte.

News source: Novinite.com link: article

EU finances 11 projects as support to development of SMES and tourism in BIH

Eleven new projects for support to the development of micro, small and medium enterprises and tourism in BiH, funded by the European Union through the Instrument for Pre-Accession Assistance IPA in the amount of 3.8 million EUR, were presented in Sarajevo, on 22^nd September.

These projects aim at developing the competitiveness of small and medium enterprises, tourism potential in the area of protected eco-zones and cultural heritage.

In the field of entrepreneurship, EU supported the dairy sector, wood and metal industry, berries and vegetables, and medicinal and aromatic plants, while in the field of tourism, it supported the projects which will be implemented in the protected areas, in Sutjeska National Park and the Nature Park of Zavidovici and the Municipality of Sipovo.

News source: FIPA link: article

Railway joint venture to make train travel in Balkans faster

On 1 October at noon, the first train of the multi-national Balkan railway company Kargo 10 is scheduled to leave the Slovenian capital Ljubljana. The protocol between Serbia, Croatia and Slovenia on the creation of the joint venture was signed on 9 September. A few days later Macedonia joined the project. Montenegro wants to follow suit, although the two non-founding partners will co-operate with, but not invest in, the company.
The aim is to develop a transport network closer to European standards, to make it more efficient and to shorten travelling times between major south-eastern European cities.
According to Zoran Angjelkovic, the president of the managerial board of the Serbian railway, the participating national systems want to increase the overall number of trains through the Corridor 10 and make trips speedier by, first of all, removing long waiting times on the borders between the Balkan countries.

News source: WAZ.euobserver.com link: article

EU faces crunch week in budget discipline talks

Divisions are likely to emerge this week when European Union governments discuss sharpening the rules on budget discipline and its executive makes proposals for tougher sanctions on fiscal sinners.
The negotiations, launched after Greece's profligacy brought the euro zone to the brink of a sovereign debt crisis, could herald a big shake-up of rules for the single currency 11 years after its creation, European diplomats say. But the talks could also stall over differences between France, Germany and smaller countries over the scope of reform.

This could mean the EU's Stability and Growth Pact, an accord that underpins the euro currency, is only slightly amended. "The last meeting [of EU finance ministers] showed big differences. They are likely to re-emerge next week, the debate is heated [...] But some progress cannot be ruled out," said one EU diplomat.

News source: EurActiv link: article

IMF Completes Fifth Review Under Stand-By Arrangement with Romania and Approves €884.0 Million Disbursement

The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of Romania’s economic performance under a program supported by a 24-month Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of SDR 769 million (about €884.0 million or about US$1.19 billion), bringing total disbursements under the program to SDR 9.8 billion (about €11.27 billion or about US$15.11 billion). In completing the review the Executive Board also approved Romania’s request for a waiver of non-observance of the end-June 2010 performance criterion on general government domestic arrears.
The SBA was approved on May 4, 2009 (Press Release No 09/148) in the amount of SDR 11.443 billion (about €13.15 billion or about US$17.64 billion). The arrangement entails exceptional access to IMF resources, amounting to 1,111 percent of Romania’s quota.

News source: IMF link: article

NBR doubts Romanian government's economic recovery forecasts

The National Banks doubts the economic growth forecasts of the government and even its capacity to rectify the budget deficit, as stated by Lucian Croitoru, advisor to the NBR Governor on monetary policy issues. This is a first for the NBR.
Economic growth might be even "more negative" than the current projection, which already indicates a 1.9% contraction, said Croitoru yesterday during a seminar on the adoption of the euro organised by the NBR. He says the Gross Domestic Product will not be much higher in 2011, either.

Lucian Croitoru believes that adjusting the budget deficit will be very hard to do, because one of the important levers to achieve it was precisely the economic growth, which would have translated into a larger taxation base for the state and subsequently into higher revenues.
"We have to converge towards a budget deficit of 3% (of GDP in 2012 i.e.) and 4.4% in 2011 from 6.8% this year. I believe both targets are extremely difficult to reach. Deficit reduction is based on the GDP growth, which I don't think will occur. Even in 2010, the growth of the economy might be more negative than they're estimating now," said Croitoru, adding that the 2011 GDP would not be much different than this year's in real terms.
Therefore last year's scenario when economic performance forecasts were repeatedly revised downwards is repeating.



News source: Zf English link: article

“Culinaria" opens in Belgrade

U.S. Ambassador Mary Warlick, together with the Minister of agriculture, forestry and water management Sasa Dragin, German Ambassador Wolfram Mass and VicePresident of the Serbian Chamber of Commerce Stevan Jevtic, officially opened today in Belgrade the first specialized fine food and beverages fair in southeast Europe.
Titled “CULINARIA”, the Belgrade food trade show is held at the BelExpo Center and will be open until Saturday, September 25^th. "We get to know people by knowing the kind of food they eat, and we can be proud of the culinarian specialties and products presented today”, said Minister Dragin.

Ambassador Warlick emphasized that the USA assisted over 120 Serbian agribusinesses to prepare for and exhibit at 22 international food fairs and contract sales of approx. 90 million dollars.
Warlick stated that Culinaria is a good opportunity for foreign buyers to come to Serbia and noted that every dollar invested in the organization of a trade show - makes three dollars for the city where the fair is held. German Ambassador Wolfram Maas stated that his country supports overall Serbian efforts on its path to the European Union, while agriculture is an important segment of the Serbian economy.
"CULINARIA" is organized by the BelExpo company, and supported by the USAID Agribusiness project, Ministry of agriculture, Serbian Chamber of Commerce, Investment and Export Promotion Agency (SIEPA) and German technical cooperation organization (GTZ).

News source: EMG.rs link: article

Croatia Plans Infrastructure Investments Topping $2.6 Billion, Kosor Says

Croatia plans infrastructure investments exceeding 15 billion kuna ($2.6 billion) to revive its faltering economy and create more work places, Prime Minister Jadranka Kosor said.
Projects being considered include thermal plants Sisak C and Plomin 3, eight hydro-electric plants, and the new railroad from the capital Zagreb to the country’s major port Rijeka.
Croatia, which aims to become the European Union’s 28th member by 2012, has seen its economy shrink for six consecutive quarters as investment and consumption faltered and the unemployment rate climbed to more than 16 percent.

The government has announced it will sell minority stakes in state-owned companies, as well as sell or lease its buildable land, in order to fill the budget gap and service a growing external debt.
A top-heavy economy with public workers, retirees, welfare recipients and veterans depending on the heavily strained budget, Croatia is also under pressure to reform its administration, eradicate corruption and improve competition before it can join the EU.

News source: Bloomberg link: article

Greece PM rules out VAT hike for now

Prime Minister George Papandreou yesterday ruled out additional increases in value-added tax, saying the government will find alternative ways to boost revenues.
“There has been of course the possibility of [tax on] some products being raised but we’re seeing if we can find other ways of getting revenues rather than raising that further,” Papandreou told Reuters yesterday, during a weeklong trip to the US. Right now, the prime minister added, the government says, “‘No’ to raising VAT.”

Instead, in order to broaden its tax base, the government wants to fight tax evasion. It is also considering cutting taxes in some areas to stimulate investment and support economic growth, Papandreou said.
Greece has introduced a tough austerity program to fight its debt crisis, raising taxes and cutting public servants’ wages and pensions in exchange for a bailout package from the European Union and International Monetary Fund.
Local press reported yesterday that Greek Finance Minister Giorgos Papaconstantinou held talks with his German peer on extending the repayment period on the three-year loan. The German Finance Ministry denied that any such discussion took place.



News source: Ekathimerini link: article

Romania, Bulgaria’s presidents push for Schengen accession

During a visit to Sofia yesterday (23 September), Romanian President Traian Basescu found an ally in the shape of his Bulgarian colleague, Georgi Parvanov, as both called for the speedy joint accession of the two countries to the Schengen area. Dnevnik, EurActiv's partner in Bulgaria, reports.
Speaking alongside his guest, Parvanov said that two bilateral official documents, one from 2008 and the other from 2010, commit the neighbouring countries to joint efforts to meet the criteria for accession to the European border-free area.

Dnevnik recalls that Bulgarian Prime Minister Boyko Borissov has insisted that each country must join according to its merits. As previously reported, Borissov did not criticise the Roma expulsions by France in the hope that Paris would not raise obstacles to the country's Schengen accession in early 2011.
Parvanov, who is a former socialist leader, openly disapproved of the policy of centre-right Prime Minister Boyko Borissov, who said France was within its rights in conducting the expulsions.

News source: EurActiv link: article

Albanian Traders Protest Cash Register Rules

Traders in a Tirana industrial market have blocked one of city’s main thoroughfares for a second day in protest against government demands for them to install new cash registers.
The protest during the morning commute on Thursday led to traffic chaos across the capital.
The traders have refused to install the registers, claiming they are too expensive as the companies selling are operating a market monopoly linked to the Minister of Finance, Ridvan Bode.

The government has denied the claims, saying the process is regular and will go forward as the last deadline to install the machines expired on June 31.Socialist opposition leader Edi Rama: “The process for the cash registers is corrupt and the corruption stems from the office of the minister Bode.”
Bode denied the allegations, saying: “There is no monopoly or licenses granted by the ministry of finance,” He said the protests were “fermented politically by the opposition to create chaos in the country”.


News source: BalkanInsight.com link: article