Open Balkan initiative isn’t competing with CIF, the goal is to make progress, Svilanović tells MIA
Skopje, 30 October 2021 (MIA) – There is no competition between the Chamber Investment Forum (CIF) and the Open Balkan initiative. The thing is that North Macedonia, Serbia and Albania shouldn’t wait, they should be allowed to move faster all the while staying open for the others, says Goran Svilanović, Serbian diplomat and former secretary general of the Regional Cooperation Council (RCC).
He tells MIA in an interview that the business community and the people in the region want concrete benefits and the cooperation defined on paper to be put in operation.
Mr. Svilanović, the second meeting as part of the Open Balkan initiative is scheduled in early November in Belgrade. Why there’s a need for this initiative when the Chamber Investment Forum (CIF) already exists? What can we expect now after the message sent from Skopje was: “Close history, open up for businesses”?
In 2017, the leaders of all [Western Balkans] six countries, fully supported by the EU and the United States, had agreed to embark on a journey to create a regional economic area. Since then, a step forward was made regarding the Common Regional Market 2021-20214, which is backed with a document containing precisely defined activities. The idea is to use the four freedoms, namely movement of goods, services, people and capital, to be working on trade, digitization, research and science and the region to start functioning as a whole.
CIF was established the same year to serve as the voice of businesses, which was the missing link in the process. As politics developed, the business sector had no clear participation. When CIF was formed, the idea of a common market was brought closer to the business community for the first time. CIF sent 14 letters to the EU on behalf of the business community from the region, which included demands all the while saying “we want it to accelerate and we want dates”. This is something I appreciate a lot. It doesn’t involve dates for membership, but dates when something would be signed after it had been agreed and when it would start implementing. CIF demanded it from the leaders of our countries and also from the EU – to precisely say when the signed agreements will enter into force, which was the case with roaming.
People want to see concrete benefit from the cooperation – in transport where trucks are still queued or in freedom of trade with services. If you own a dental office in Skopje, you should be also able to open an office anywhere in the region without having to complete additional procedures and you should be able to have your qualifications recognized. These things have to be put into operation. Currently, there’s no progress. Why’s that? Because sometimes it requires many laws to be changed and what’s often the case, there is no solution to certain issues, such as the Belgrade-Pristina dialogue. Here in fact lies the introduction into the story regarding Open Balkan. It is the real reason behind this initiative. No other agenda is being promoted. The goal is to move faster all the while being opened for the others. That’s why I see no competition between CIFG and Open Balkan. The thing is that these three countries shouldn’t wait, should move a little faster while being opened for the others. The others should see whether these three countries have agreed and are doing something useful, and when they do, they should say ‘let’s doing too
Does it mean we will push aside the issues of some of the CIF countries in order to move forward?
I agree with you, it’s honest of you to say this. It happens in diplomacy – “when we fail to agree over some topics, let’s agree we all disagree and we work on what we can agree.” This is exactly what’s happening now.
I cannot say what the message will be from the second meeting of the Open Balkan in Belgrade. I truly hope that everything the troika is working on now, it will be integrated into the single regional market, and something the EU clearly supports and it is prepared to invest funds. Funds will be invested in all of our countries in certain spheres (climate change, energy), in the Balkans’ green agenda as part of the EU’s idea for the new generations. Up to EUR 20 billion should be invested in the region, according to the European Investment Plan. The Open Balkan initiative will not ruin this, there is no other agenda. The only goal is to move faster, nothing more than that. For example, if you have residency permit here, you should be also granted the right to stay and work in all three countries, in Serbia and Albania as well.
The idea is to really join the EU. In anticipation of the EU’s great decision, why we shouldn’t implement what we can. It is also in accordance with the European regulations. We didn’t see the three leaders saying “And now we’ll do something that has nothing to do with the EU. What we saw them doing is: “can we accelerate this, be more efficient and work on some agreements to be in line with the EU.” There is literally no “bad blood” in any of this.
A meeting of the chambers of commerce from the Western Balkans and the Visegrad Group country has been announced to take place in Budapest. What’s the idea behind this? Will it only involve sharing of experiences or perhaps there will be something else?
Let’s be honest. Are they supporting our European aspirations and our development? Yes, they do. Do certain countries from the group have different positions inside the EU? Yes, they do, that’s right. But, we’re not interfering in it in any way. There are some good things these countries had done on their path to EU integration. They managed to agree with each other about certain joint policies and to join forces to promote some processes across the EU. We can learn than from them. For example, lobbying amongst the member countries. It could be really useful for us and it has nothing to do with the issues some of these member countries have with Brussels.
It seems the region has been spinning the same “matrix”. We’d already disintegrated one country (Yugoslavia), and yet we continue to stick together pushing for some joint initiatives and looking for “salvation” in mutual cooperation. Why is this? And are we on the right track?
I heard it before as a criticism – “they want to unite in Yugoslavia”. This is not the idea, no one is making Yugoslavia. People living in the region had fought for independent, sovereign and their own countries. Each and every one of the countries has been committed to joining the EU. But, alongside this dream, real life takes place. Let’s talk openly. Life takes courses which somehow put aside the politics of major powers.
Our reality involves a single market although there are obstacles that need to be eliminated: phytosanitary inspection, certificates not being recognized, unregulated border crossings, waiting in line or issues with grain export, which Serbia and North Macedonia are facing. There will be this kind of obstacles in 10-15 years, but what’s important is that there will be no political problems even though they are being reflected. If there is no agreement at political level, it is also felt by businesses and is hindering processes.
People should be allowed to cross borders only by presenting ID cards. I can go to Pristina with my ID card only, but the people from there cannot travel to BiH with IDs only. It’s a real problem that needs solving. If people aren’t allowed that, they wouldn’t want to work too – they will need visas and documents.
Economic reforms, judicial reforms, fight against organized crime and corruption, better infrastructure… These are some of the inevitable and key issues discussed at every panel and forum in the country and in the region as well. Have we made any progress in these fields in the past three decades?
One of the EU’s main ideas is the countries aspiring to join to be completely regulated, where rule of law is completely respected, which doesn’t only involve independent judiciary, but also the society to function in every sense of the word, including transport, healthcare, education, the banking system. The citizens should trust healthcare and banking institutions. All of this is rule of law.
I mentioned the European Investment Plan, the possibility of EUR 20 billion being invested. It will be conditioned with respect of rule of law. It means that some countries might not get support. If the progress report is negative, the EU could say: “No funds if this isn’t resolved.” It is how somehow Brussels could exert influence. Another condition is also the green agenda, whether the candidate country is implementing green policies.
On the other hand, what is also important are the signals, which after Brdo pri Kranju aren’t encouraging.
What do you mean exactly?
There’s certain discouragement to resume the reforms. I have to say that North Macedonia is in a sense victim because it’d made some serious and bold steps, the Ohrid Agreement and the Prespa Agreement as well.
I’m afraid it has further divided people, but that’s reality. People would be less divided if Brussels had been more encouraging. Then, people who don’t agree with every part of the Agreement might say: “well, at least it will be good for my children.” Unfortunately, there was no such encouragement and I’m very critical of that. It is necessary and very important to encourage anyone who will lead the country tomorrow – they have to know they have a partner in the EU, who’ll say “it’s ok, we made the agreement and we will respect it.”
At the moment, trust is diminishing. A promise wasn’t fulfilled while the conditions are met. A major step was made, which wasn’t met with what it was supposed to – a date for the opening of negotiations. I believe it will further contribute to deepening the mistrust of some of the people living here. It’s no good. Since all member countries make the decisions, not the Commission, it is their national politics – some of the countries will hold crucial elections. But, they all share the responsibility. We are not completely without fault – we failed to convince the people in the member countries that we are making progress and reforming. Their leaders have their policies to implement, they have voters. We have to communicate with the voters, to send positive messages about us, about what we do, instead of negative messages.
Do you expect the first intergovernmental conference to be held in December? What’s your position on the North Macedonia-Bulgaria dispute in general?
I couldn’t possibly know if the intergovernmental conference will be held in December. It’s a very sensitive topic. Following developments from the sidelines, I have great expectations that after Sofia forms new government, dialogue will be reopened and a compromise will be found. It’s key. Everyone in the region was thrilled when one of the three major issues was removed, I mean the Prespa Agreement. I’m surprised that it has come to a standstill. I hope Bulgaria will get a new government in full capacity in order to sit down with its partners in Skopje and say: “Let’s seek solution”. I hope compromise will be found and the people living on both sides of the border will be respected as well as some of the EU’s joint values, which is – bilateral misunderstandings should be not be used to hinder the process. It will cut down the number of “major issues” that is hindering the EU accession of the region. What will be left will be the Belgrade-Pristina dialogue and the functioning of BiH. These are matters that can be solved through agreement.
Mr. Svilanović, is the EU opening the door in the region for third forces (China, Russia, Turkey) by leaving its enlargement policy vague?
The closer a country is to EU full-fledged membership the more there are some restrictions in terms of the EU’s common foreign and security policy. But, we are not there yet. It allows our countries for some topics to be more open to realize business interests and investments either with China, the United Arab Emirates, Russia, etc.
It is also my message to Brussels: if the European Council’s message to us as regards membership is mild, it’s normal the support to the EU’s common policy in security and foreign policy is at least weakened under the influence of some short-term interests, business or otherwise. This is because there is no vacuum, everybody knows there is no vacuum in foreign policy. If someone leaves, others enter. I believe that the overall level of engagement of other partners at this point is not too much, and the European investment plan is an encouragement to keep implementing key policies in line with the European ones, fully supported with European capital.
Let’s get back to our region. Has the capacity for business cooperation been exhausted and where’s the greatest potential, in which areas?
The whole idea of a common market is to use the potential existing by advancing regional trade. This is how it all started. If it’s 10 percent, let’s make it 13 percent. When the idea becomes clear, exchange of goods skyrocketed by one billion euros. But, to be completely honest, the percentage of our mutual trade compared to the percentage of overall trade was the same of slightly reduced. In absolute numbers, it rose by one billion, but in relative numbers it cannot be yet considered real progress. To make a summary, we have real growth in mutual trade, but what is being agreed now should remove all obstacles. First of all, I mean the protocol for trade with services, aligned and ratified by the four countries. It will open a new space. When such issues remain unresolved, they hinder businesses a lot. Belgrade instructs that businesses should be less burdened and that they should be fully supported, regardless of whether it involves trade with Skopje, Podgorica, Pristina or BiH. That is a good thing, there’s awareness how important it is for all of us. It is also true that when it comes to applying legal instruments, you start facing legal issues caused by diplomatic reasons.
I’d mention tourism. There’s also the gaming industry, which is experiencing a rise, and it is also related to digitization, which is one of the pillars to form a common market. The idea for mutual recognition of qualifications would enable movement of professionals, researchers, young people, etc.
Also, major players see us as one instead of several small countries and they expect, provided that they come in some of the countries in the region, to use the capacities of the others too without coming across any hurdles. I’m referring to two things – the first one is to align investment policies, to avoid conflicts between Belgrade and Skopje when attracting foreign investors, to lower the pressure of our “internal competition.” Now, the coronavirus pandemic has given us a great chance – it showed us that China is all of a sudden very far away, riddled with multiple risks. It seems that the automotive industry will slowly come here instead of going there. If such investment comes, a list should be made of companies that would benefit from it if their documents and certificates are recognized. This way, it will turn into a market attracting more investments and the companies would see us as 18-million market rather than a market of three or four million population.
New crisis is looming. We are yet to face price shocks. At world markets, electricity is 240 percent more expensive compared to last year, and food prices rose by 32 percent according to FAO. How important it is in such circumstances the countries to react each on their own and to take measures? What should be done to cushion the blow?
We are all feeling the energy crisis, it also has to do with the Covid pandemic, but also with lack of plans for storing and pretty vague development policies. The Secretariat of the Energy Community is our key partner, whose task is to allow transmission of the European policies outside its borders, meaning here, in order to apply them to a large extent. There were many different delays. This policy came from the energy sector, but at this point it is already merged with environmental protection. Efforts are made these areas to be prepared for climate change. We all said yes to this “third package”, but we’re applying it with many delays.
In my opinion, the only real response is to increase the capacity of renewable sources. We have a joint problem, solutions at EU level are agreed and each and every one of our governments should make additional efforts to enforce it. There’s nothing I haven’t already seen in Belgrade, Podgorica and Sarajevo. It’s also not a question of whether a government is less capable or more capable. Energy will be expensive for all of us, which is a lesson that it has to be invested more as soon as possible. No one will be energy independent.
Mirjana Chakarova
Translated by Bisera Altiparmakova
Photos by Darko Popov
A meeting of the chambers of commerce from the Western Balkans and the Visegrad Group country has been announced to take place in Budapest. What’s the idea behind this? Will it only involve sharing of experiences or perhaps there will be something else?
Let’s be honest. Are they supporting our European aspirations and our development? Yes, they do. Do certain countries from the group have different positions inside the EU? Yes, they do, that’s right. But, we’re not interfering in it in any way. There are some good things these countries had done on their path to EU integration. They managed to agree with each other about certain joint policies and to join forces to promote some processes across the EU. We can learn than from them. For example, lobbying amongst the member countries. It could be really useful for us and it has nothing to do with the issues some of these member countries have with Brussels.
It seems the region has been spinning the same “matrix”. We’d already disintegrated one country (Yugoslavia), and yet we continue to stick together pushing for some joint initiatives and looking for “salvation” in mutual cooperation. Why is this? And are we on the right track?
I heard it before as a criticism – “they want to unite in Yugoslavia”. This is not the idea, no one is making Yugoslavia. People living in the region had fought for independent, sovereign and their own countries. Each and every one of the countries has been committed to joining the EU. But, alongside this dream, real life takes place. Let’s talk openly. Life takes courses which somehow put aside the politics of major powers.
Our reality involves a single market although there are obstacles that need to be eliminated: phytosanitary inspection, certificates not being recognized, unregulated border crossings, waiting in line or issues with grain export, which Serbia and North Macedonia are facing. There will be this kind of obstacles in 10-15 years, but what’s important is that there will be no political problems even though they are being reflected. If there is no agreement at political level, it is also felt by businesses and is hindering processes.
People should be allowed to cross borders only by presenting ID cards. I can go to Pristina with my ID card only, but the people from there cannot travel to BiH with IDs only. It’s a real problem that needs solving. If people aren’t allowed that, they wouldn’t want to work too – they will need visas and documents.
Economic reforms, judicial reforms, fight against organized crime and corruption, better infrastructure… These are some of the inevitable and key issues discussed at every panel and forum in the country and in the region as well. Have we made any progress in these fields in the past three decades?
One of the EU’s main ideas is the countries aspiring to join to be completely regulated, where rule of law is completely respected, which doesn’t only involve independent judiciary, but also the society to function in every sense of the word, including transport, healthcare, education, the banking system. The citizens should trust healthcare and banking institutions. All of this is rule of law.
I mentioned the European Investment Plan, the possibility of EUR 20 billion being invested. It will be conditioned with respect of rule of law. It means that some countries might not get support. If the progress report is negative, the EU could say: “No funds if this isn’t resolved.” It is how somehow Brussels could exert influence. Another condition is also the green agenda, whether the candidate country is implementing green policies.
On the other hand, what is also important are the signals, which after Brdo pri Kranju aren’t encouraging.
What do you mean exactly?
There’s certain discouragement to resume the reforms. I have to say that North Macedonia is in a sense victim because it’d made some serious and bold steps, the Ohrid Agreement and the Prespa Agreement as well.
I’m afraid it has further divided people, but that’s reality. People would be less divided if Brussels had been more encouraging. Then, people who don’t agree with every part of the Agreement might say: “well, at least it will be good for my children.” Unfortunately, there was no such encouragement and I’m very critical of that. It is necessary and very important to encourage anyone who will lead the country tomorrow – they have to know they have a partner in the EU, who’ll say “it’s ok, we made the agreement and we will respect it.”
At the moment, trust is diminishing. A promise wasn’t fulfilled while the conditions are met. A major step was made, which wasn’t met with what it was supposed to – a date for the opening of negotiations. I believe it will further contribute to deepening the mistrust of some of the people living here. It’s no good. Since all member countries make the decisions, not the Commission, it is their national politics – some of the countries will hold crucial elections. But, they all share the responsibility. We are not completely without fault – we failed to convince the people in the member countries that we are making progress and reforming. Their leaders have their policies to implement, they have voters. We have to communicate with the voters, to send positive messages about us, about what we do, instead of negative messages.
Do you expect the first intergovernmental conference to be held in December? What’s your position on the North Macedonia-Bulgaria dispute in general?
I couldn’t possibly know if the intergovernmental conference will be held in December. It’s a very sensitive topic. Following developments from the sidelines, I have great expectations that after Sofia forms new government, dialogue will be reopened and a compromise will be found. It’s key. Everyone in the region was thrilled when one of the three major issues was removed, I mean the Prespa Agreement. I’m surprised that it has come to a standstill. I hope Bulgaria will get a new government in full capacity in order to sit down with its partners in Skopje and say: “Let’s seek solution”. I hope compromise will be found and the people living on both sides of the border will be respected as well as some of the EU’s joint values, which is – bilateral misunderstandings should be not be used to hinder the process. It will cut down the number of “major issues” that is hindering the EU accession of the region. What will be left will be the Belgrade-Pristina dialogue and the functioning of BiH. These are matters that can be solved through agreement.
Mr. Svilanović, is the EU opening the door in the region for third forces (China, Russia, Turkey) by leaving its enlargement policy vague?
The closer a country is to EU full-fledged membership the more there are some restrictions in terms of the EU’s common foreign and security policy. But, we are not there yet. It allows our countries for some topics to be more open to realize business interests and investments either with China, the United Arab Emirates, Russia, etc.
It is also my message to Brussels: if the European Council’s message to us as regards membership is mild, it’s normal the support to the EU’s common policy in security and foreign policy is at least weakened under the influence of some short-term interests, business or otherwise. This is because there is no vacuum, everybody knows there is no vacuum in foreign policy. If someone leaves, others enter. I believe that the overall level of engagement of other partners at this point is not too much, and the European investment plan is an encouragement to keep implementing key policies in line with the European ones, fully supported with European capital.
Let’s get back to our region. Has the capacity for business cooperation been exhausted and where’s the greatest potential, in which areas?
The whole idea of a common market is to use the potential existing by advancing regional trade. This is how it all started. If it’s 10 percent, let’s make it 13 percent. When the idea becomes clear, exchange of goods skyrocketed by one billion euros. But, to be completely honest, the percentage of our mutual trade compared to the percentage of overall trade was the same of slightly reduced. In absolute numbers, it rose by one billion, but in relative numbers it cannot be yet considered real progress. To make a summary, we have real growth in mutual trade, but what is being agreed now should remove all obstacles. First of all, I mean the protocol for trade with services, aligned and ratified by the four countries. It will open a new space. When such issues remain unresolved, they hinder businesses a lot. Belgrade instructs that businesses should be less burdened and that they should be fully supported, regardless of whether it involves trade with Skopje, Podgorica, Pristina or BiH. That is a good thing, there’s awareness how important it is for all of us. It is also true that when it comes to applying legal instruments, you start facing legal issues caused by diplomatic reasons.
I’d mention tourism. There’s also the gaming industry, which is experiencing a rise, and it is also related to digitization, which is one of the pillars to form a common market. The idea for mutual recognition of qualifications would enable movement of professionals, researchers, young people, etc.
Also, major players see us as one instead of several small countries and they expect, provided that they come in some of the countries in the region, to use the capacities of the others too without coming across any hurdles. I’m referring to two things – the first one is to align investment policies, to avoid conflicts between Belgrade and Skopje when attracting foreign investors, to lower the pressure of our “internal competition.” Now, the coronavirus pandemic has given us a great chance – it showed us that China is all of a sudden very far away, riddled with multiple risks. It seems that the automotive industry will slowly come here instead of going there. If such investment comes, a list should be made of companies that would benefit from it if their documents and certificates are recognized. This way, it will turn into a market attracting more investments and the companies would see us as 18-million market rather than a market of three or four million population.
New crisis is looming. We are yet to face price shocks. At world markets, electricity is 240 percent more expensive compared to last year, and food prices rose by 32 percent according to FAO. How important it is in such circumstances the countries to react each on their own and to take measures? What should be done to cushion the blow?
We are all feeling the energy crisis, it also has to do with the Covid pandemic, but also with lack of plans for storing and pretty vague development policies. The Secretariat of the Energy Community is our key partner, whose task is to allow transmission of the European policies outside its borders, meaning here, in order to apply them to a large extent. There were many different delays. This policy came from the energy sector, but at this point it is already merged with environmental protection. Efforts are made these areas to be prepared for climate change. We all said yes to this “third package”, but we’re applying it with many delays.
In my opinion, the only real response is to increase the capacity of renewable sources. We have a joint problem, solutions at EU level are agreed and each and every one of our governments should make additional efforts to enforce it. There’s nothing I haven’t already seen in Belgrade, Podgorica and Sarajevo. It’s also not a question of whether a government is less capable or more capable. Energy will be expensive for all of us, which is a lesson that it has to be invested more as soon as possible. No one will be energy independent.
Mirjana Chakarova
Translated by Bisera Altiparmakova
Photos by Darko Popov
