South East Europe

Challenges and Perspectives for Economic Development in the Region from an Austrian Point of View

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Content

1. Growth Champion South East Europe

2. EU-Integration Process

3. Development of Bilateral Foreign Trade

4. Investment Place for Austrian Enterprises

5. Summary and Perspective

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Growth Champion SEE

GDP Growth

Source: EUROSTAT; BA-CA

100

110

120

130

140

150

160

170

180

190

200

1999 2000 2001 2002 2003 2004 2005

19

99

=1

00

EU-25 EU-15 new MS SE-Europe Austria

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Growth Champion SEE

GDP Growth Rates 2005

Source: EUROSTAT; BA-CA

0

1

2

3

4

5

6

7

Alb Bo-He BG HR Maz RO SeMo

ch

an

ge

in

%

EU-25

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EU-Integration Process

Bulgaria / Romania Accession Date:

expected for 1st January 2007

Commission Monitoring Reports: presentation on 26th September 2007

expected confirmation of accession date

possible safeguard measures

Ratification Process of Accession Treaty: 4 Member States (B, DK, D, F) are still missing

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EU-Integration Process

Croatia Stabilisation and Association Agreement (SAA):

in force since 1st February 2005

Accession Negotiations: official start on 3rd October 2005

continuation during Austrian EU-Presidency

closing first negotiation-chapter (science and research) at the accession conference on 12th June 2006

further opening of 7 negotiation-chapters during Finnish EU-Presidency

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EU-Integration Process

Macedonia Stabilisation and Association Agreement (SAA):

first SAA to enter into force - 1st April 2004

Application for Accession: on 9th November 2005

Candidate Status: 15th December 2005

Opening of Negotiations: depends on fulfilment of criteria for membership

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EU-Integration Process

Albania Stabilisation and Association Agreement (SAA):

signing on 12th June 2006 – during Austrian EU-Presidency

Interim Agreement: economic provisions of the SAA

should enter into force as soon as possible

Bosnia and Herzegovina Stabilisation and Association Agreement (SAA):

start of SAA-negotiations on 25th November 2005

could be concluded by the end of 2006

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EU-Integration Process

Serbia: Stabilisation and Association Agreement (SAA):

start of SAA-negotiations with former State Union on 10th

October 2005

call off negotiations on 3rd May 2006 due to a lack of full ICTY-co-operation

Montenegro: Stabilisation and Association Agreement (SAA):

continuation of SAA-negotiations in autumn 2006

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Development of Foreign Trade

Development of Exports and Imports with SEE

Source: Statistik Austria

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

2000 2001 2002 2003 2004 2005

1.0

00

Eu

ro

exports imports

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Development of Foreign Trade

Austria‘s Exports and Imports with SEE 2005

Source: Statistik Austria

0

200

400

600

800

1.000

1.200

1.400

1.600

Alb Bo-He BG HR Maz RO SeMo

1.0

00

Eu

ro

imports exports

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Foreign Direct Investment

FDI SEE

Source: WIIW; OeNB; own research

stock data are estimated by adding flows since 2005

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

Alb Bo-He BG HR Maz RO SeMo

mill

. Eu

ro

Austria remaining countries

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Foreign Direct Investment

Austria – top investor in 5 SEE countries Romania, Croatia, Bulgaria, Serbia, Bosnia and

Herzegovina

Total amount of Austrian investment: 11 billion €

Key player in several sectors: financial services, energy, media and telecommunication,

construction, tourism

FDI promotion measures: Investment Compact

“Go International …”

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Summary and Perspective

SEE – growth champion in Europe

EU-integration process = pre-dominant engine of the development

Boom of Austrian exports to SEE

Austria – top investor in 5 SEE countries

Austria will continue its strong engagement in SEE und will further support SEE countries in the EU-integration process

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Thank

you for your

attention