Business Advisory Council

Inaugural meeting of the Business Advisory Council (BAC) to the Stability Pact for South Eastern Europe

At the invitation of the German East-West Trade Committee and the Federation of German Industries, the BAC held its first meeting in Berlin on 19 January 2000.

After a luncheon for the participants hosted by the Chairman of the German East-West Trade Committee, Otto Wolff von Amerongen, the meeting was officially opened by Hans-Olaf Henkel, President of the Federation of German Industries.

In his introductory remarks he outlined the importance of investment and trade for the overall development of the region of SEE and indicated which conditions will have to be met in order to attract foreign interest and to increase the trade flows. He stressed the great interest of the German industries for the region and its future development.

The Special Co-ordinator of the Stability Pact, Bodo Hombach, gave an overview of the Pact’s activities so far, concentrating on matters of direct importance to improving the overall economic climate. He mentioned the existence of an Investment Compact, elaborated in the context of Working Table II of the Stability Pact, containing measures that will have to be taken and commitments that will have to be made, to improve the overall investment climate in the region. He referred to the need to make simultaneous progress in all the areas covered by the Stability Pact (i.e. human rights/democracy, economic issues, security matters), as support from the international community for infrastructure related projects and other economic programs will only produce results if complemented by economic reform measures, good governance and institution building.

The input from the BAC into the activities of the Stability Pact will be vital, assuring first-hand knowledge of those that are active on the ground.

Following this intervention the floor was taken by the Co-chairs, Prof. Manfred Nussbaumer of Züblin AG, and Jérôme Monod of Lyonnaise des Eaux. They elaborated on the role of the BAC as an advisory body to the Stability Pact, identifying ways and means to improve market access and overcome obstacles to investments.

It was felt that the BAC should develop its own work-programme and might have to agree on a code of conduct for its members in order to prevent conflicts of interest. Reporting of the BAC could take place to both Working Table II and to the Regional Table.

Membership of the BAC should be on a rotational basis in a personal capacity and with a duration of two years, it being understood that of the current participants half will step down after two years and the other half one year thereafter in order to assure continuity.

The meeting continued with an individual presentation of the members. The Chair of Working Table II, Fabrizio Saccommani, presented to the BAC the state of play with regard to the Investment Compact. Olivier Descamps, Business Group Director of the EBRD, gave on outline of activities currently undertaken in the area of private sector development in SEE, also in view of the upcoming Regional Funding Conference (29-30 March 2000).

Closing remarks were made by Dr. Franz Schoser, Executive Director of the Association of German Chambers of Industry and Commerce and by Bodo Hombach.

It was agreed that the first regular session of the BAC will take place on 16 March in Vienna. The Secretariat of the BAC will be entrusted to the Stability Pact Secretariat that will liaise closely with the two Co-chairs and their respective support structures.

At its next meeting the BAC will discuss in detail its internal proceedings and work-programme and will also have an opportunity to examine the documentation which is being prepared for the Regional Funding Conference.

Furthermore it could discuss in more detail the Investment Compact and its roadmap as well as the anti-corruption initiative.