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Medvedev to tackle loan, energy deals in Serbia

October 20, 2009 – 8:53 am

REUTERS

 

By Aleksandar Vasovic

 
BELGRADE, Oct 20 (Reuters) - Russian President Dmitry Medvedev visits Serbia on Tuesday with Belgrade seeking terms for a 1 billion euro loan and hoping to strike further energy deals with its traditional ally.

Russia and Serbia share a common Orthodox Christian and Slavic heritage, but the Kremlin has driven hard bargains in recent energy deals with Belgrade and bilateral trade has tumbled so far this year.

Serbia asked Russia for the 1 billion euro ($1.5 billion) loan in July to help curb a wide budget deficit, and aims to find out how much it will cost during Medvedev’s visit, which includes talks with President Boris Tadic.

“We will explore major joint projects during the upcoming talks — projects in the energy sector, in the sphere of transport and cultural, humanitarian and scientific cooperation,” Medvedev said in an interview published by Serbia’s Vecenje Novosti daily on Monday.

“We will have to work more not only to strengthen the foundations of our cooperation but to unleash its rich potential,” he said, according to a Russian transcript of his interview supplied by the Kremlin.

Belgrade needs to keep its budget deficit down under a deal with the International Monetary Fund to ease the effects of the global financial crisis. It wants to use 350 million euros to help cover the deficit, with the rest earmarked for spending on railways and motorways.

Serbia has attracted almost $12 billion in foreign direct investments since 2003, but Russia’s contribution has been modest, with the country ranking 19th in the list of investors.

Bilateral trade totalled $4.04 billion in 2008, but it fell 47 percent in the first eight months of the year, according to Russian government data. Russian exports to Serbia made up 86 percent of 2008 bilateral trade turnover.

“The two presidents will discuss all the details of the Russian loan, which will serve as a boost to Serbia’s macroeconomic stability and infrastructure,” Serbian Deputy Prime Minister Bozidar Djelic told a business forum in Belgrade.

Serbia wanted to become Moscow’s partner in energy deals, he told a joint Serbian-Russian forum, but gave no details.

Medvedev led a Russian delegation to sign a major energy deal with Serbia last year when he was a deputy prime minister.

Under the deal, Russia’s Gazprom (GAZP.MM) said it would develop an arm of the South Stream gas pipeline, allowing Russia to bypass Ukraine via Turkey, Bulgaria and Serbia.

Russia opposed last year’s independence of Kosovo, Serbia’s former southern province. However, Medvedev’s visit is likely to focus more on economic issues than politics. (Reporting by Aleksandar Vasovic; Editing by David Stamp)


New diplomatic push on Bosnia as tensions worsen

October 8, 2009 – 8:01 am

Oct 8, 2009 1:22pm IST

By Adam Tanner

SARAJEVO (Reuters) - EU and U.S. diplomats bring together Bosnian politicians on Thursday to seek a solution to deepening ethnic divisions that are blocking key reforms in what some see as the last unfinished corner of the Balkans.
Officials at European Union headquarters in Brussels and in EU rotating president Sweden are leading the latest diplomatic effort aimed at calming ever more bitter tensions ahead of 2010 elections.
“Everyone agrees that if this is not done by the end of the year, then forget it; you have elections next year,” said Raffi Gregorian, deputy high representative in an international protectorate office whose chief has the power to fire local officials or overturn laws.
Bosnia holds national elections in October 2010. Past election years have shown increased appeals to nationalist interests and radical views that could hamper any settlement.
Bosnia’s Orthodox Serbs, Muslim Bosniaks and Catholic Croats fought in Europe’s worst conflict since World War Two from 1992 to 1995, in which 100,000 people died. The country is divided into two rival, predominantly Serb and Muslim-Croat halves.
Just on Sunday one soccer fan was killed and dozens were injured in an area where relations between Bosniaks and Croats are tense.
If not contained, tensions in Bosnia could slow EU and NATO integration for the entire emerging Balkans and deter foreign investors, badly needed because the worldwide economic recession has had a major impact on the region.
“Things have been getting worse. If this trend does not stop, it will lead to conflict, it is just a question of when,” said Sulejman Tihic, head of the largest Muslim political party. “This (the talks) is a big chance that we must not miss,” he said.
MILITARY BASE TALKS
Tihic is one of a small group of political leaders due to meet for dinner on Thursday and talks on Friday, hosted by Swedish Foreign Minister Carl Bildt, who was Bosnia’s first high representative, and U.S. Deputy Secretary of State James Steinberg.
Dragan Cavic, a Bosnian Serb opposition leader, said he would skip the talks because of political pressure and negative perception among the Bosnian Serbs of the internationally run negotiations at a military base next to Sarajevo airport.
“The way the talks have been envisaged — at a military camp under authority of the European Union force, outside Bosnia’s legal institutions and under international supervision — can hardly guarantee success,” Bosnian Serb Nebojsa Radmanovic, one the country’s three presidents, told Reuters.
The diplomats, joined by EU Enlargement Commissioner Olli Rehn, will present a proposal to fulfill conditions to close the Office of the High Representative (OHR), through which the international community still has ultimate say in the country.
The proposal would also seek Bosnian constitutional reforms and other compromises and offer in turn a faster pace of visa liberalisation and a quicker path to EU and NATO membership, diplomats say.
Many countries are divided over Bosnia’s future and whether, as Sweden and Bosnian Serb leader Milorad Dodik suggest, the OHR should be closed down as soon as possible.
The final decision on the issue is expected in November and opponents of the OHR closure say it could worsen tensions and reward Dodik’s assertive push for more autonomy.
William Montgomery, a former U.S. ambassador to Croatia and Serbia, said the solution to Bosnia’s problems may be allowing the Serb Republic to be independent after careful negotiations and agreement. In public, few agree with this view.
Bosniak leaders such as Tihic say that Bosnian Serb moves towards independence could spark a new war.


Iran, Bosnia-Herzegovina call for promotion of ties

October 7, 2009 – 8:56 am

ISNA - Tehran        

Service: Islamic Parliament
1388/07/15
10-07-2009
News Code :8807-00044
 
 

TEHRAN (ISNA) - Iran and Bosnia-Herzegovina are willing to expand mutual relations in politics, culture, economy and parliamentary cooperation.

Parliamentary friendship group of Iran and Bosnia Herzegovina held meeting with the Muslim member of the Bosnia Herzegovina Presidency, Haris Silajdzic in Sarajevo.

Silajdzic calling for expansion of economic ties between Iran and Bosnia-Herzegovina said, “economic relations of the two countries must reach a level that can satisfy both countries.”

Also Iran’s parliamentary delegation asserted, there were many potentialities which should be found to broaden the domains of cooperation between the two countries particularly in industry and economy.

The Iranian delegation also meeting with the Foreign Minister of the European country Sven Alkalaj hoped the two sides would promote cooperation through parliamentary ties.

Iran’s parliamentarian also met Bosnia and Herzegovina House of Representatives Speaker Milorad Zivkovic where both sides hoped the two countries interactions in different political and parliamentary levels would be influential in strengthening friendly relations.


Balkans: Kosovo and Albania intensify cooperation

October 7, 2009 – 6:42 am

 
http://www.adnkronos.com/AKI/English/Politics/?id=3.0.3847972106

 

 

 

Visiting Albanian prime minister Sali Berisha and his Kosovo host Hasim Taci on Tuesday signed several bilateral agreements which will facilitate movement of people and goods between the two countries and promote customs and border police cooperation.

Albania has also ceded to Kosovo the Adriatic port of Shendjin, thus giving the newly independent state an exit to the sea.

“The port of Shendjin is now a Kosovo exit to the sea,” Berisha said after the signing ceremony in the capital Pristina.

On his second visit to Kosovo since the country gained independence from Serbia last year, Berisha said “There are no two Albanian nations and a national ideal of Albanians must be a European ideal”.

Berisha and Taci also signed agreements in regard to the legalisation of status of the people which have illegally settled in the two countries.

After the withdrawal of Serbian forces from Kosovo in 1999, the province was put under United Nations control and many Albanian citizens have since illegally settled in Kosovo.

Berisha was scheduled to meet with Kosovar president Fatmir Sejdiu, as well as special European Union envoy Peter Faith and other international officials in the newly proclaimed state.

More than sixty countries, including the United States and leading EU members have recognised Kosovo’s independence, but Belgrade is fighting a diplomatic battle to retain the control over its former province.


Serbia Taps Loans From Russia, China

October 6, 2009 – 9:46 am

Russia is set to lend €1 billion ($1.46 billion) to Serbia, according to officials on both sides, as Moscow seeks to expand its influence in the region and Belgrade looks for partners more free with cash than the European Union to help out during the economic downturn.

 

Serbia’s economy minister, Mladjan Dinkic, interviewed Monday on the margins of the International Monetary Fund’s annual meeting in Istanbul, said the loan was expected; he declined to name the sum. Russian Finance Minister Alexei Kudrin said Serbia had asked for a €1 billion loan, including €350 million to cover its budget deficit, according to Russian state news agency RiaNovosti.

 

“The EU is our strategic partner, but unfortunately they couldn’t help us too much in the crisis — they could only provide €100 million, €50 million this year and €50 million next,” Mr. Dinkic said. “Obviously that is not enough for our needs.”

 

Mr. Dinkic said the terms will be agreed and the deal announced when Russian President Dmitry Medvedev visits Belgrade on Oct. 20. Russia has stressed that the date chosen for that visit is also the anniversary of the Soviet army’s liberation of Belgrade at the end of World War II.

 

The Russian loan would add to its growing influence in Serbia, which relies on Moscow’s diplomatic support in the United Nations Security Council to resist the secession of Serbia’s former province Kosovo. Last year Russia’s state-controlled gas monopoly OAO Gazprom bought Serbia’s major oil and gas assets and agreed to route its South Stream gas pipeline through Serbia.

 

Russia is also considering multibillion-euro loans for Bulgaria. Though also hard hit by the global downturn, Russia still has substantial cash reserves that it built up before oil prices tumbled last year, though it hasn’t followed through with loans offered to Ukraine and Belarus.

 

The Russian money, with a similar package from China, will help fill out money from the IMF and the EU; the funds from the two powers are part of a strategy to find additional partners and sources of finance in the face of the crisis, Mr. Dinkic said. While EU membership remains Serbia’s main goal, Belgrade knows that could take some time and the government doesn’t meanwhile want to “put all our eggs in one basket,” said Mr. Dinkic, a former governor of Serbia’s central bank.

 

China is becoming a major partner, he said, providing a €200 million concessionary loan to build a new bridge and highway section in Belgrade, with further projects amounting to a total package of €1 billion in coming years. China also has agreed to lend ex-Soviet Moldova $1 billion.

 

The bridge deal will be run 60% by Chinese construction companies and labor, and 40% by Serbian, Mr. Dinkic said.

 

Serbia has been hit by the global downturn as foreign investment and trade have dried up. Economic growth, as measured by gross domestic product, dipped to minus 4% in the first six months, though it has since stabilized and should pick up a little toward the end of the year, Mr. Dinkic said. The IMF predicts GDP growth of 1.5% for Serbia next year.

 

Most of Serbia’s crisis financing still comes from the IMF and the World Bank. The IMF has demanded public spending cuts to release further tranches.


The Fragile Balkans

October 6, 2009 – 9:45 am

Radio Free Europe/Radio Liberty  |  October 02, 2009   |  By Dragan Stavljanin

 
 
 
Since the Dayton agreement ended the war in Bosnia in 1995, and nine years after the toppling of Serbian strongman Slobodan Milosevic, many believe the western Balkans have embarked on an irreversible path toward democratic reform and Euro-Atlantic integration. There is probably no danger that the Balkans will fall back into the horrendous conflicts we witnessed during the 1990s. However, there are unresolved issues that continue to remind us that the Balkans remain the “powder keg of Europe.”

As U.S. Vice President Joe Biden admitted during his recent tour of the region, real integration among ethnic groups in the Balkans today could prove even more difficult than ending the wars in the former Yugoslavia was. There are a lot of unsettled scores, and once-warring nations still disagree over who should be held accountable for the conflicts.

The region has encountered a number of roadblocks to its progress. One of the most troubling issues is the dysfunctional nature of the Bosnian state and its tendency to drift toward division and renewed conflict. The Serb entity in Bosnia (Republika Srpska) has resisted the international community’s efforts to strengthen Bosnia’s federal institutions and, as former High International Representative in Bosnia Paddy Ashdown has pointed out, it undermines any sense of cohesion in the country.
The most recent example is the October 1 decision by the Republika Srpska parliament to approve a proposal to suspend all Serbian participation in all state institutions unless the country’s International Office of the High Representative (OHR) reverses a decision concerning the state electricity company. The leadership of Republika Srpska has again defied the European Union, apparently counting on its indecision and the inconsistency and ineffectiveness of its previous policies with regard to Bosnia.

Milorad Dodik, the recalcitrant and flamboyant prime minister of the Bosnian Serb entity, is seemingly convinced that the international community is prudent enough not to impose punitive measures, such as ousting high-ranking Serb politicians, as it did in the past, because doing so would backfire and make the Bosnian Serb electorate even more adamantly opposed to the very idea of keeping the Bosnian state together.

‘If Kosovo Can, Why Can’t We?’

Many Serbs in Bosnia are disenchanted. They argue that the West is applying double standards by preventing them from seceding from Bosnia while at the same time recognizing Kosovo’s independence. “If Kosovo can, why can’t we,” they ask.

The Bosnian Serb leadership has even raised the possibility of outright secession to join Serbia. Such a scenario isn’t likely in the foreseeable future, but the Bosnian Serb leadership has embarked on a policy of “creeping secession” from Bosnia. Indeed, in many respects, Bosnia does not exist in practice as a unified state. Republika Srpska is essentially more integrated with Serbia — economically, culturally, and in other ways — than with the rest of Bosnia.
Northern Kosovo is a very important bargaining chip for the Serbian authorities as a “last line of defense” of Serbian national interests.
 
Serbia, for its part, under the disguise of the special relations with the Bosnian Serb entity envisaged by the Dayton agreement, uses every available lever to strengthen those ties. That “creeping annexation” resembles closely the policy Russia pursued with regard to the breakaway Georgian regions South Ossetia and Abkhazia before it formally recognized their independence, and seems to be an attempt by Belgrade to retaliate for the loss of Kosovo.

Strong and undiminished national sentiments certainly constitute the biggest obstacle to long-term stability and prosperity in the western Balkans. The Kosovo issue is another stumbling block. Although it has been recognized so far by 62 states, including the majority of the Balkan region, and has been admitted into the International Monetary Fund and the World Bank, Kosovo is still a far cry from being fully integrated into the international community and becoming a sustainable state. With veto-wielding United Nations Security Council members Russia and China both opposed to Kosovo’s independence, Kosovo probably can’t count on becoming a member of the UN anytime soon.

Internally, Kosovo has failed so far to implement reforms aimed at creating a viable state, and consequently still has the reputation of an unsavory region plagued by organized crime, abject poverty, and fragile institutions. 

Pulling Kosovo Apart

At the same time, the remaining few tens of thousands Serbs living in enclaves are adamantly opposed to the very idea of Kosovo being independent. They refuse to integrate into Kosovo’s institutions, fearing that to do so would formalize their perceived status as second-class citizens. The failure of Kosovo’s institutions to create a genuinely multiethnic society reinforces that fear. In addition, Kosovo’s government has failed to create favorable conditions for the return of Serbian refugees. UN Secretary-General Ban Ki-moon recently noted that the number of returnees to Kosovo is disappointingly small (only 137 since the start of this year).

Meanwhile, Serbs in the northern part of Kosovo have established parallel local government structures exerting full control over that region with support from Belgrade, thereby preventing the authorities in Pristina from exercising sovereignty over Kosovo’s entire territory.
Serbia has pursued a diplomatic strategy of countering Kosovo’s independence at every turn, including seeking an advisory opinion from the UN’s International Court of Justice. Therefore, the situation is deadlocked. On the one hand, Kosovo’s independence was probably inevitable given the atrocities committed by Serbian forces in the 1990s, as well as Belgrade’s failure to create conditions that would have convinced Albanians to perceive Serbia as their genuine homeland.

However, Kosovo’s independence has not yet contributed to regional stability as the West originally hoped it would.

On the other hand, Kosovo is definitely lost for Serbia, and a growing number of Serbs have even come to regard Kosovo as an “albatross around Serbia’s neck.” Therefore, the real motive behind Serbia’s strategy is probably not to regain full control over Kosovo, but to keep at least a notional link with it or simply to win some concessions.

For that reason, northern Kosovo is a very important bargaining chip for the Serbian authorities as a “last line of defense” of Serbian national interests. That strategy aims to preserve control over northern Kosovo for as long as it takes for the West and the Albanians to realize that is not realistic for Pristina to take control of that region which, therefore, would inevitably join Serbia. The experience of the Balkan wars of the 1990s suggests that in almost every case where an ethnic group or entity succeeded in imposing its control over a certain territory, even when it committed atrocities in the process, the international community ultimately accepted the outcome as a fait accompli.

In any case, it means that northern Kosovo will remain for the foreseeable future a frozen conflict with no prospect of moving on.

Another option is that Serbia would accept the reintegration of northern Kosovo into Kosovo in exchange for the independence of the Serbian entity of Bosnia. Even some experts and politicians outside Serbia, including former U.S. Ambassador to Belgrade and Zagreb William Montgomery, write off as an illusion Western hopes of establishing fully functioning multiethnic societies in Bosnia and Kosovo without changing the present borders.

It’s not entirely realistic to try to persuade the Bosnian Serbs to cede a significant number of the rights and privileges given them under the Dayton Agreement to the central government. In Kosovo, the reality is that most of the Serbs have already left and will not be coming back, as Montgomery has pointed out.

Redrawing Borders?

However, redrawing already disputed Balkan borders is fraught with risk.  The secession of the Serb entity from Bosnia could spark a war that Islamic extremists from all around the world might be drawn to. If northern Kosovo was to be ceded to Serbia, it wouldn’t go unanswered by authorities in Pristina and Albanian extremists. It would trigger a violent chain reaction, with the leaders of the Albanian community in southern Serbia arguing that that if northern Kosovo joins Serbia, then Serbia’s Presevo Valley, which is mostly populated by Albanians, should become part of Kosovo. There could be more attacks like the recent assault on Serbian police officers in the Presevo Valley. Albanians in Macedonia, who agreed on a federal solution following the civil war in 2001, could opt out of that commitment if Kosovo’s borders change.

A solution should therefore be sought in the wider context of European integration. However, the persistent Western strategy of trying to induce Serbia to come to terms with its past has not worked so far. The Balkans all but vanished from the U.S. agenda after September 11, 2001, leaving the region to the European Union. Brussels tries to attract the Balkan countries with the prospect of EU membership, but instead of pushing for reforms that would bring the region closer to the bloc, the EU has barely managed to preserve the disappointing status quo. 

In such circumstances, leaving Serbia and the Serbs too long to brood over their feelings of defeat could fuel national resentment and a sense of self pity, with unforeseen consequences. This does not, of course, mean that the European Union and the United States should appease Serbia by agreeing to a redrawing of the map while ignoring Belgrade’s failure to fulfill international commitments, such as the capture of war crimes suspect Ratko Mladic.
However, some kind of incentive is needed to improve Serbia’s negative perceptions of the West. The EU may be plagued with its own problems, including enlargement fatigue, but imposing numerous conditions on Serbia (such as the protracted refusal by the Netherlands to ratify the country’s Association and Stabilization Agreement) while offering only a few sweeteners, like visa liberalization, may prove counterproductive. It could dampen enthusiasm for EU integration among the Serbian electorate and push even the moderate, pro-European government of Serbian President Boris Tadic closer toward Russia.

Given the tensions resulting from still-unsettled accounts in combination with the detrimental effects of the global economic crisis, keeping Serbia and other west Balkan countries at arm’s length for too long may backfire, because resurgent extreme nationalists could fill the void and plunge the whole region into a new cycle of violence. Then the price the international community would have to pay to restore peace and stability would be much higher.

 

 

 

Dragan Stavljanin is a broadcaster with RFE/RL’s Balkans Service. An earlier version of this article was published in an International Affairs Forum Special Report by the Washington based Center for International Relations. The views expressed in this commentary are the author’s own, and do not necessarily reflect those of RFE/RL.


Filling the gaps (Kosovo)

September 23, 2009 – 1:56 pm

Osservatorio Balcani   |   23.09.2009   |   From Pristina, by  V. Kasapolli

 

 

 

Recent statements by Sali Berisha on the strengthening cooperation between Albania and Kosovo have stirred a lively debate over the notion of “Greater Albania”. Political considerations notwithstanding, relationships between the two states have been intensifying.
 
Discussions on the ‘Greater Albania’ notion have been provoked by a statement in late August from the Albanian prime minister, Sali Berisha, who suggested increased cooperation between Albania and Kosovo. The Albanian prime minister said that “the idea of national unity is based on European ideals”, meaning that much work needs to be done to achieve EU-like standards of cooperation. Serbia, as the strongest opponent of Kosovo’s statehood, immediately expressed its opposition to the idea and warned officials in Tirana that regional cooperation is at risk when such ideas float in the air (despite Berisha’s statement excluding discussions on sovereignty).

Statements from Albanian government officials supporting the union of Albania and Kosovo are not something new. In 2001, when the Albanian socialists held office, the justice minister, Arben Imami, stated that Albania and Kosovo should have a high priority of unifying their territories into a single state. Imami’s statement attracted enormous media attention at that time and political concern because Kosovo had just come out of the war and was under strong international supervision, with independence nowhere in the sight. Serbia was struggling in an internal conflict with Albanians seeking more rights in the south of the country (Presevo valley), while Macedonia was close to a civil war between Macedonians and ethnic Albanians.

Over the past 20 years, unification ideas have not found wide-scale support in Kosovo. In 1998, the current Kosovar assembly speaker, Jakup Krasniqi, claimed that the Kosovo Liberation Army (KLA) would fight for unification of Albanian territories in the Balkans. However, after the war, the former KLA spokesperson Krasniqi aligned with other leaders in Pristina to make careful statements. Apparently, he knew that any reference to unification with Albania would hinder the process of determining Kosovo’s status and establishing the new state.

Not by chance, the new Kosovar constitution states that “Republic of Kosovo shall have no territorial claims against, and shall seek no union with, any state or part of any state”. Furthermore, Kosovo’s general attitude on the issue may be reflected by pro-union political parties inability to win more than a couple percent of the electorate.
Opponents to Berisha’s statements have suggested that “pan-nationalist projects are harmful and don’t enjoy support from the international community”. However, others see the statement as urging the two states to unify through a EU model. Intensified communication after the war in Kosovo has changed the situation on the ground and has brought Kosovo and Albania closer than ever to each other.

Tourism figures show that, in the 2009 season, about 70 % of all tourists visiting the Albanian coast came from Kosovo. According to the latest data provided by the Kosovo police, during July and August 2009 as many as 528,000 Kosovar tourists entered Albania.

At the heavily trafficked Vermice/Morine border-crossing, both Kosovar and Albanian police officers simply waved on all vehicles with Kosovar car plates. Drivers did not need to show personal or car documents or even stop with the customs officers for a routine, “Nothing to declare, neighbour.” When entering Albania or returning to Kosovo, a police officer’s simple gesture was the only sign of a border, while another police officer counted the number of vehicles for tourism records.

Privileges for Kosovar drivers do not end there. Kosovar drivers apparently enjoy general immunity from routine traffic checks by the Albanian police; even when a violation is at stake. This may be because, since 2000, Kosovars make up a large part of all tourists visiting the Albanian Riviera.
Unsurprisingly, tourists visiting the Albanian coasts end up in apartments owned by Kosovars, whether it is in Durres, Vlora or Saranda. Albania’s property boom in the last 15 years has inspired Kosovar Albanians to invest in property and secure themselves a spot by the sea. As far as Saranda in southern Albania, tourists stopping for a cool beer to defy the Mediterranean summer temperatures might pick up a “Peja” beer, produced in the namesake city in northwest Kosovo and with a price similar to any bar in Kosovo.

In culture, Tirana and Pristina hold very few events independent of each other. The two capitals smoothly synchronise film festivals, song festivals, beauty pageant contests, Big Brother reality shows, and, of course, language seminars . For example, this year, an Albanian artist won the most important video event in Pristina (Video Fest), while a Kosovar singer won the most important competition for Albanian modern music in Tirana (Top Fest). A lack of quality TV broadcasters in Kosovo has benefited Tirana-based media firms that have ‘conquered’ Kosovar houses through cable TV programming that ranges from children shows to political and lifestyle debates.

In sports, seven Kosovar athletes play regularly for Albania’s national football team. A frequent captain for Albania’s national team is Kosovo-born Lorik Cana, a former player for Marseille and current captain of the Sunderland team in the English Premier league, . The 26-year-old is following the success of another Kosovo-born player who has retired from the international level, Besnik Hasi. As an experienced player in the Belgian football league and at the level of the Champions League, Hasi has frequently led the Albanian national team. Furthermore, a few players in almost every sport compete for national teams of Albania because of the lack of international recognition of Kosovo.

Since the war ended in 1999, the private sector has explored market possibilities on both sides of the border. Albanian-based companies play a crucial role in the rapid development of the construction sector in Kosovo. Meanwhile, the government in Tirana has regularly sent experts to assist the new Kosovar institutions in creating laws compatible with the EU standards.

Lately, Konfindustria Shqiptare, an Albanian organisation promoting domestic industrial production, has suggested targeting economic policies towards a market of about six million consumers predominately governed by ethnic Albanians. The organisation claims that this is the way to establish good products and prepare for a greater market such as CEFTA (Central European Free Trade Agreement), an association including both Albania and Kosovo and representing a market of more than 20 million consumers.

However, the most important element bringing closer the two capitals is construction of a new highway that makes Kosovo’s border only a two-hour drive from the Adriatic Sea. As a result, without the obstacle of a minimum of six-hours travel on rough mountain roads, Albanians have visited Kosovo in large numbers.

Berisha’s statement that Tirana and Pristina should not look at each other as foreign countries apparently has been endorsed by the actions of citizens. In early September, the new Albanian government has made Kosovo its main foreign-policy priority and has pledged to support Kosovo’s efforts to add to the current 62 international recognitions of its independence.

In the region, Croatia has had a long-standing policy of granting passports to Croatians in Bosnia-Herzegovina and other countries in the region. Serbia has started to extend its welcome to the Serbians in Bosnia & Herzegovina, and has issued Serbian passports with which they would, most probably, travel without visas in EU countries beginning next year. The Albanians in the Balkans have not had a similar cooperation. Neither the Kosovar Albanians nor other ethnic Albanians living outside the Albanian state have been granted a passport by authorities in Tirana; except, of course, football captain Cana and friends.


Kosovo ‘will have more allies’ than Serbia at ICJ – report

September 18, 2009 – 9:01 am

Sofia Echo

 

 
Kosovo will have more countries on its side than Serbia when the International Court of Justice begins hearings in the case on the question of Kosovo’s self-declared independence, media in Pristina said on September 18 2009.
 
The court case is the result of a 2008 United Nations General Assembly resolution initiated by Serbia, which rejects Kosovo’s February 2008 unilateral declaration of independence as illegal.
 
September 17 saw the passing of the deadline for applications by countries to take part in public argument in the International Court of Justice, which will begin on December 1 2009.
 
All United Nations countries are eligible to participate in publicly presenting their arguments in court.
 
The first part of the court process has already passed, with the receipt of submissions to the court by countries.
 
Submissions already filed and the list of countries that have applied to take part in the public debate in the International Court of Justice thus far have been confidential, but the court is expected to reveal these at a later stage of its proceedings, possibly at the time of the public debate.
 
As may well be expected, both Serbia and Kosovo – the latter not a UN member – will be participating in the International Court of Justice public debate process, with Kosovo media reports saying that it will be represented by its foreign minister, Skender Hyseni, supported by an international legal team.
 
Serbian news agency Tanjug said on September 18 that Serbian foreign minister Vuk Jeremic had said that all five permanent members of the UN Security Council would take part in the public hearing at the International Court of Justice.
 
Of the five permanent members of the UNSC, the United States, United Kingdom and France recognise Kosovo as independent; Russia and China reject its claim of independence.
 
Meanwhile, leaders of Serbia and of Kosovo continue to prepare for discussion of Kosovo in the forthcoming UN General Assembly session.
 
Kosovo president Sejdiu and foreign minister Hyseni will be in New York from September 22 to 29, lobbying for support in the General Assembly debate.
 
On September 17, Pristina-based Koha Ditore said that UN missions representing the Quint countries – the US, UK, Germany, France and Italy – along with Albania had helped set up meetings in New York for Sejdiu and Hyseni.
 
In the General Assembly debate, Serbian president Boris Tadic and foreign minister Tadic will be continuing their campaign against any further countries recognising Kosovo.


Bosnia’s IMF tightrope

September 18, 2009 – 9:00 am

Ian Bancroft in Belgrade

 

Business New Europe   |   September 18, 2009

 
Despite being initially agreed back in May after often-fraught negotiations, the three-year €1.2bn stand-by arrangement reached between the International Monetary Fund and Bosnia-Herzegovina remains beset by a host of impediments that delayed payment of the first tranche and threatens to curtail future financial assistance.

Gripped by political crisis and growing social unrest, the Federation of Bosnia-Herzegovina – the Muslim-Croat half of the country, due to receive two-thirds of the IMF money – has struggled to enact a series of testing reforms that were demanded by the IMF, and in the process further exposed Bosnia’s vulnerability to the global economic crisis.

Approval of the stand-by arrangement was initially delayed in June after the IMF rejected the Federation’s proposed budget revision for 2009. Protests by war veterans – the largest welfare category and one of the most influential social and lobbying groups – supported by trade unions and invalids’ associations, forced the Federation government to exempt war veterans and their families from a planned 10% reduction in welfare payments. In seeking to extract savings from administrative expenses, however, the Federation – which is expected to contribute the bulk of Bosnia’s budget savings, equivalent to more than one-fifth of its 2009 budget – violated an undertaking with the IMF to curb social transfers that have left the entity on the verge of bankruptcy and forced the government to take out a €71m short-term credit from local commercial banks in order to cover part of a backlog of payments from 2008. As the Federation’s finance minister, Vjekoslav Bevanda, then surmised, “politics have got entangled with the IMF arrangement.”

Though the head of the IMF mission to Bosnia, Costas Christou, previously warned that achieving the budget savings required by the IMF would require a “decisive package of measures,” the Federation government has failed to formulate a cohesive and coherent strategic response, relying instead upon a series of sporadic and haphazard measures designed to eke out savings without offering fundamental and sustainable reform.

As Svetlana Cenic, former finance minister of Republika Srpska, the other half of Bosnia, warns, the country has an “unsustainable system with huge public spending, stalled reforms and insufficient attractiveness to foreign investors, and these can no longer be justified amid the global recession.”

 

 

 
Postponed privatisation

 

 

Whilst the Federation government is prepared to privatise some of the better-performing public companies - such as engineering company Energoinvest and pharmaceuticals manufacturer Bosnalijek - the current economic malaise has persuaded Mustafa Mujezinovic, the Federation’s new prime minister, to put such plans on hold until both buyer interest and potential prices are more buoyant.

Although Bevanda recently confirmed that each of the entity’s 10 cantons had adopted the revised budget re-balance (which proposes savings of around €112m, including a €30m reduction in social benefits for war invalids) that will allow Bosnia to obtain the first tranche of IMF support, doubts remain as to the entity’s overall political capacity and willingness to see through such reforms in the face of rising unemployment, growing social unrest and increasingly vociferous interest groups.

With IMF estimates suggesting that Bosnia will experience an economic contraction of 3% in 2009, primarily in the Federation, with “a very mild recovery only beginning in the middle of next year,” and with unemployment currently hovering around 40%, the ramifications of the global economic crisis will continue to magnify and exacerbate the shortcomings of the Federation.

By contrast, Republika Srpska quickly proposed a revised 2009 budget that meets the IMF’s requirements by reducing spending by 4% to approximately €818m. Having already cut the salaries of government and public sector employees, and reduced public spending to below 40% of GDP as advised by the IMF, Republika Srpska, which continues to benefit from the proceeds of a string of successful privatisations, has found itself better placed to respond to the economic downturn.

As Aleksandar Dzombic, Republika Srpska’s finance minister, emphasized, savings of some €36m were achieved through cuts in grants and internal debt, eliminating the need to reduce pensions and veterans’ welfare payments. Despite the Federation’s previous failure to fulfil their part of the agreement, Republika Srpska’s request for immediate support from the IMF was immediately rejected.

Facing a stalemate over constitutional reform and other key measures for accession towards the EU, Bosnia ’s continuing wobbles on the IMF tightrope have further exposed the country’s economic, financial and structural fragility. Though a series of short-term measures have secured access to the first tranche of assistance, doubts remain over the Federation’s capacity and willingness to contend with the political and socio-economic ramifications of implementing the stringent conditions on which future financial assistance depend. In order to mitigate Bosnia’s growing crisis of legitimacy, therefore, urgent steps must be taken to ensure that the present and prospective dysfunctionality of the Federation does not undermine the entire country’s efforts to secure vital IMF assistance.


Israel, while rejecting Kosovo independence, hopes for compromise

September 17, 2009 – 7:06 am

Sofia Echo   |   Sep 17 2009

 

By Clive Leviev-Sawyer

 

Israel is monitoring the situation between Serbia and Kosovo and hopes that through direct bilateral talks, the two sides can achieve a comprehensive and peaceful solution, Israeli foreign minister Avigdor Lieberman said in Belgrade on September 16 2009.
 
At a meeting, Serbian foreign minister Vuk Jeremic thanked Lieberman for Israeli refusing to recognise Kosovo as independent.
 
Kosovo unilaterally declared independence from Serbia in February 2008, a move rejected as illegitimate by Belgrade and a number of its allies, notably Russia. The United States and most European Union countries have recognised Kosovo as independent.
 
Jeremic told Lieberman: “We are very thankful to Israel for its position on Kosovo. Israel does not recognize the unilateral declaration of independence of Kosovo in spite of all the pressures Israel faces,” said Jeremic.
 
At their meeting, Jeremic and Lieberman signed an agreement to abolish visas between the two countries, hailing this as an important step in the development of bilateral relations, Serbian news agencies reported.
 
“This removes the obstacle to Serbian businesspeople and tourists that want to come to Israel,” Lieberman said.
 
Lieberman told a news conference after the meeting that his talks with Jeremic had been “open and friendly”.
 
Asked if Israel was “under pressure” to recognise Kosovo, Lieberman said: “We have been under pressure since 1948 on many issues and we know how to deal with any pressure.”
 
On the Serbia – Kosovo issue, he said: “I personally believe that it is impossible to impose peace. You need to create peace. We have our experience in our own region, and I think that the best way to resolve the problems and to bring about a comprehensive solution is direct talks between both sides.
 
“We are monitoring the situation between Serbia and Kosovo, and we really hope that in the future, in the next few years, you will achieve a really comprehensive and peaceful solution.”
 
Lieberman said that he had briefed Jeremic on developments in the Middle East, “mainly the challenges that Israel is facing in order to ensure security and normal life to its citizens.
 
“Regarding the Palestinian issue, I emphasised the steps that Israel has taken in order to improve the lives of the population and our readiness to engage in direct negotiations without delay.”
 
They had also discussed at length the threat that Iran poses to the stability and security in the Middle East as well as in the whole world, Lieberman said.
 
“Iran’s pursuit of nuclear weapons is a global threat and should be dealt with by the international community in a serious manner. Our view is that doing ‘business as usual’ with Iran is sending a wrong message to the leaders in Teheran, who bluntly ignore the international will and norms,” according to Lieberman.
 
Replying to a question, he said: “I think it is clear to everybody that the biggest problem of the Middle East is the radical wing. It is the clash between moderate and extremist people.
 
“It is not disputes or disagreements between us and the Palestinian Authority. We have said from the first day of this government that we are ready immediately for direct talks with the Palestinians side. The Palestinians have refused to date to sit around the table and to start with the talks.”
 
However, Israel continued to strengthen the Palestinian Authority, he said. Israel had diminished the number of road blocks and “we continue to invest” in the Palestinian Authority.
 
“The real threat for the Palestinian Authority is not from Israel. The real threat is Hamas and Jihad. And the real threat for the Hariri coalition in Lebanon is not Israel, but Hizbollah. And the biggest threat for Egypt is not Israel, but the Muslim Brotherhood. And the biggest threat for the Nato troops in Afghanistan is the Taliban. And the biggest threat for instability in Pakistan is also the Taliban,” Lieberman said.
 
“And I think that this fact of the radical Islamic wing in the Middle East is a really clear vision for the United States, for us, for all people around the world, for moderate people,” he said.