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Select Briefing: Europe East Summary

Core Content Overview

This summary provides a detailed look at political, economic, and infrastructure developments in Central, Baltic, and Southeast European countries as of March 2007. It includes information on energy projects, foreign investments, EU cooperation, and regional security issues.

Central European Update

Czech Republic

• MND Investment in Morocco: The Czech oil and gas company Moravske Naftove Doly (MND) announced plans to invest millions of USD over three years in oil exploration in Morocco. This is the second North African country after Sudan where MND has made investments.
• Hyundai Plant in Nosovice: Construction began on a new plant in Nosovice, expected to cost over EUR 1 billion. It will employ approximately 3,500 people and be the largest foreign investment in the Czech Republic in two years.

Slovakia

• E.ON Power Plant: The German energy company E.ON announced plans to build a 400 MW gas-fired power plant in Slovakia, estimated to cost USD 267 million, with expected operational status in 2009.
• Humanitarian Aid to Kyrgyzstan: The Slovak government allocated EUR 178,000 in humanitarian aid to Kyrgyzstan following natural disasters in 2006, focusing on shelter and winter equipment.

Czech-Slovak EU Battlegroup

• Operational Timeline: The Czech-Slovak EU battlegroup will be operational by mid-2009. Slovakia will contribute a mechanized unit of 300 soldiers to the 1,500-strong group.
• Future Participation: Slovakia plans to join two additional EU joint battle groups expected to be active in 2010, involving troops from Germany, Poland, Lithuania, and Latvia.

Baltic States Update

Estonia

• Energy Policy Agreement: The Reform Party, Pro Patria and Res Publica Union, Social Democratic Party, and Greens of Estonia reached a consensus on a common energy policy and interior security measures.
• No Euro-Zone Entry: The parties agreed not to adopt measures to curb inflation or join the euro-zone at this time.

Lithuania

• State Security Director Investigation: President Valdas Adamkus proposed removing Arvydas Pocius from his post due to suspected leaks related to the sale of Mazeikiu Nafta. The parliament postponed the decision until next week.

Latvia

• Border Agreement with Russia: Latvian Prime Minister Aigars Kalvitis is set to visit Moscow on 27 March to sign the Latvia-Russia border agreement. Discussions will include energy issues and border crossings.
• Humanitarian Aid from Tajikistan: Latvia contributed 30.7% of the total humanitarian aid (USD 753,000) to Tajikistan in January and February 2007.

Southeast European Update

Bulgaria

• EU Enlargement and Energy Cooperation: Bulgarian Foreign Minister Ivaylo Kalfin met with Turkey's EU negotiator, praising Turkey's reforms and discussing energy projects like the Nabucco pipeline.
• Sweden-Bulgaria Trade Talks: Sweden's foreign trade minister met with Bulgarian officials to discuss EU membership and economic development, highlighting the newly formed Swedish-Bulgarian Chamber of Commerce.
• Roca Investment in Bulgaria: Spanish company Roca plans to invest EUR 15.3 million in a new plant in Bulgaria, aiming to double its output.
• Government Restructuring: Deputy Foreign Minister Gergana Grancharova was appointed as the new European Affairs minister, replacing Meglena Kuneva who became the EU Commissioner.

Croatia

• Energy Conference: Croatia will host an energy conference on 3 April, focusing on energy security and projects in the South East Europe Cooperation Process (SEECP), including a Caspian-to-EU pipeline.
• German Financial Support: Germany provided EUR 20 million in loans and grants to Croatia for energy efficiency and renewable energy projects. The government aims to increase renewable energy usage to 4.5% by 2010.
• NATO Membership Process: Croatian President Stipe Mesic met with NATO officials to discuss progress in the NATO membership process and Croatia's contributions to peace missions.

Romania

• Military Cooperation with Croatia: Romanian and Croatian military officials met in Bucharest to discuss defense relations and army reform.
• Political Crisis: The opposition Conservative Party demanded President Traian Basescu's resignation due to political deadlock. The government is considering early elections.
• Renault Investment: Renault announced plans to open a EUR 450 million research and design center in Titu, southern Romania, supported by the government.

Key Information Summary

Conclusion

The region is marked by significant energy and infrastructure projects, ongoing political negotiations, and increased foreign investment. Countries are strengthening their ties with the EU and other regional partners while also exploring new economic and security collaborations.