South East Europe’s Ministers of Trade and Economy adopted a statement today, pledging to improve conditions for foreign and domestic investment in their respective countries.

Among others, they promised to reduce administrative burdens for company registration and licensing, and undertook to facilitate appeals procedures and information exchange, as well as to strengthen institutional capacity at central and local government level.

"An improved regulatory and institutional environment is key to sustained economic growth,” said Special Coordinator Erhard Busek, adding that the high level of foreign direct investment (FDI) flow into countries which have embarked on reform is a promising sign for the whole region.

Over the past few years, the region has taken significant steps to improve the business climate, and in 2003, the net FDI flow to the region exceeded a record 6 billion USD. However, SC Busek warned that in some countries, the implementation of reform plans has been slower than expected. 

“There seems to have been a lack of urgency and a lack of vision on the part of some countries,” said SC Busek in his opening speech. “The window of opportunity could be missed if the basic policy and regulatory environment is not put firmly in place.” Busek also emphasised the need for governments to implement policy commitments in a consistent manner.

Participants agreed that as the region nears the end of the privatisation phase, efforts will have to be intensified to attract greenfield investment.

The Vienna conference also featured a business forum, and a ceremony to present the “South East Europe International Investors of the Year” awards. The conference was organised by the Stability Pact’s Investment Compact, which is steered by the OECD, Austria and – on a rotating basis – one country from the SEE region. 

Formally approved in February 2000, the Investment Compact comprises all the investment promotion activities within the Stability Pact. The Compact’s regional chairmanship was handed over from Romania to Bulgaria today.

Please visit www.investmentcompact.org for more information.

For details on the event, please contact Mr. Jani Bogoevski at +32 473 580 710.

Attachments: Speech by SC Erhard Busek