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Central European Update Summary

Core Content

This summary provides an overview of political, economic, and international developments in Central and Southeast European countries, focusing on events from March 2005. The update covers the Czech Republic, Poland, Hungary, Slovakia, the Baltic States, Croatia, Bulgaria, Romania, and Slovenia, as well as NATO enlargement anniversary activities.

Key Developments

Czech Republic

• The Socialist-led governing coalition survived a no-confidence vote on 1 April 2005 due to the abstention of the opposition Communist Party.
• The Christian Democratic Party, a junior partner in the coalition, withdrew from the government on 30 March 2005.
• A law was passed to dismantle the Czech Republic's privatization agency by the end of 2005, transferring its responsibilities to the finance ministry starting in 2006.
• The National Property Fund, which has managed state-owned companies since 1991, is involved in the sale of Cesky Telecom.

Poland

• Warsaw Mayor Lech Kaczynski announced his intention to run for president in the fall elections.
• Azeri leader Ilham Aliyev visited Poland on 30 March 2005, signing economic, military, and tax agreements with the government.
• Future agreements in agriculture, labor, and SMEs were also announced.

Hungary

• U.S. Deputy Secretary of State Robert Zoellick visited Budapest on 29 March 2005, focusing on visa issues for Hungarian citizens.
• Hungary's President Ferenc Madl met with Albanian leaders to discuss support for Albania's Euro-Atlantic integration.
• Hungary received 24.6 billion euros from the EU Cohesion Funds (2007-2013), becoming the fifth-largest beneficiary.
• French Foreign Minister Michel Bernier urged Hungary to invest more in research and development rather than solely in infrastructure.

Slovakia

• Slovak Deputy Prime Minister Ivan Miklos criticized the EU's delay in liberalizing the service market, arguing it hampers competitiveness.
• The country is preparing for NATO integration, with a focus on economic and security cooperation.

Baltic States

• Latvia: U.S. President George W. Bush is set to visit Riga on 7 May 2005, the first presidential visit since 1994.
• Estonia: The Center Party, Reform Party, and People's Union formed a new coalition government, with Andrus Ansip likely to become the next prime minister.
• Lithuania: Two Dutch F-16 fighter planes began NATO patrols in the region, and the Foreign Minister planned a visit to Moscow to address the Kaliningrad transit issue.

Southeast Europe

• Croatia: The European Commission criticized Zagreb for not cooperating with the ICTY, particularly regarding the capture of Ante Gotovina. The World Bank approved a 35 million euro loan for Croatia's social and economic recovery.
• Bulgaria: Signed a contract to sell light weaponry to Iraq. Zoellick visited Bulgaria to discuss the mission in Iraq, economic cooperation, and the death sentences of Bulgarian medics in Libya.
• Romania: Three journalists disappeared in Iraq, believed to have been kidnapped. Their appearance in an Al-Jazeera video confirmed their status. The government expressed confidence in EU accession by 2007.
• Slovenia: Celebrated its one-year NATO membership anniversary. Slovenian troops participated in EU missions in Bosnia-Herzegovina and Kosovo. Some military equipment was to be shipped to Iraq.

NATO Enlargement Anniversary

• On 1 April 2005, NATO Secretary General Jaap de Hoop Scheffer praised the accession of seven countries to the alliance one year prior.
• These countries (Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia) joined NATO in March 2004, increasing membership from 19 to 26.
• An official ceremony was held in Washington, D.C., where the ratification documents were handed over.
• Leaders of Croatia, Macedonia, and Albania expressed optimism about potential NATO membership in 2006, following the signing of the Adriatic Charter in 2003.

Additional Notes

• The Eastern Europe Project at the Center for Strategic and International Studies (CSIS) produced this update, highlighting developments in new EU and NATO member states.
• The summary is nonpartisan and nonproprietary, focusing on objective reporting of events.