Special Co-ordinator Erhard Busek welcomed the ministerial conference of today as proof that the countries are increasingly aware, that from the outside SEE in viewed as one market. The Stability Pact has responded to this challenge by helping to create a free trade area in SEE among seven countries by early 2003, with 55 million consumers. According to Busek, the dawn of free trade and the improved macroeconomic performance of the countries in the region have opened a new era. The framework to attract private investment in SEE is in much better shape than three years ago, but “business people do not know enough about it and therefore we need to tell them. Political attention, especially in a crisis, is running high. Economic interest is more subtle as investors or can be shy and therefore countries have to constantly improve their attractiveness”.

Busek said he was proud of the political achievement of endorsing a free trade regime in SEE. However, in order to translate this on practical realities on the ground, follow up is urgently needed. The challenge of implementing these ambitious agreements must now be taken on. In the coming months, issues such as elimination of non-tariff barriers, harmonising standards and simplifying border procedures, will be tackled as agreed to by the Governments of SEE at the July Economics Working Table meeting in Sofia.

It is equally important to accelerate horizontal measures related to trade, such as privatisation, improving the commercial judicial system, fighting corruption and promoting business contacts. He reiterated that the Stability Pact has developed instruments in all of these fields, but it was up to the Governments of SEE to make best use of them.

Busek asked Governments to support him in his determination to complete the remaining free trade agreements until end of 2002, for the sake of credibility and the image of the region. Amongst the seven countries a total of 21 agreements are needed. 19 agreements have been signed or are under negotiation, 2 negotiations have yet to start.