Berlin: Address by Prime Minister Milo Djukanovic at 4th Business Conference on Southeast Europe

Dead Mr. Chairman,
Ladies and Gentleman,

It is always inspiring, a pleasure and an honor to be in Berlin and to address such a distinguished audience. Allow me to thank Mr. Brown, the Chairman of the German Chamber of Industry and Commerce, GTZ and other co-organizers for making such a prestigious and important conference possible.

The recent developments indicate that the region has made evident progress in terms of stability, sustainable development and European integration. The atmosphere of trust and solidarity is already visible. An upward trend in regional cooperation is present not only in political and economic issues but also in judicature and home affairs. Today, all countries of the Western Balkans are aware that mutual cooperation and integration are equally important as the integration into the EU and that the two processes must take place in parallel.

The privatization process is drawing to an end in almost all countries of Southeast Europe, which increases the regions attractiveness to investors. A higher degree of economic integration has been achieved, notably with regard to the establishment of a free trade zone and promotion of the business climate in order to stimulate and encourage direct investments and facilitate creation of new jobs. A higher degree of economic integration also stimulates the harmonization of the legal system and accelerates the removal of obstacles to free movement of people, goods, services and capital.

The European prospects of the Western Balkan countries are no longer merely matters of ambitious rhetoric, but realistic and attainable goals. However, there is a question of time dimension and key challenges to long-term stability. At any rate, the unfinished processes in the Balkans have proven to be a threat to the stability and Europeanization of the region. The most complex challenge is Kosovo, as the only remaining security problem in the religion. The relations between Montenegro and Serbia are the matters of democracy and development and, whatever the outcome may be, they will have no impact on regional security. And that is of critical importance. Our common heritage multiple bonds established throughout history and mutual European aspirations are supposed to facilitate a final settlement on mutual relations. The options that enable each state to take full responsibility for its European future and development have proved to be the best guarantee of national and regional stability and development. By adopting such an approach, we would prove that we are capable of resolving such important issues in the European spirit, which recommend both Montenegro and Serbia for quicker access to Europe. That would also be in line with the so-called regatta principle, which constitutes the basis of the EUs policy towards the region.

Today, the problem with the region is much more in the domain of democratic and economic development, and at this point I would like to single out two major problems high unemployment rates and low level of investment. The sooner these problems are resolved the less space will remain for various forms of crime and corruption, which are the global phenomena with typical concentration in the countries in transition, rather than parts of the regions tradition. Democracy may take roots if the economic underdevelopment of the region is put behind, borders opened and the rule of law secured.

Germany continually proves that the region remains one of its most important priorities. This was demonstrated by launching the Stability Pact for Southeastern Europe. Such contribution is also symbolized by todays Conference.

The realization of Montenegros European prospects, as well as those of the Western Balkans as a whole, is inseparable from the partnership with Germany, without whose continued support and practical contribution we would not have achieved the results we have today. This refers both to substantial professional and financial assistance to the reform process and the activities of chambers of commerce, German business agencies and the business community. I find that the level and substance of our cooperation have paved the way for effective intensification and development of the partnership. Good political relations between Montenegro and Germany are being constantly confirmed through the mutual interest in meaningful valorization of numerous prospects and opportunities. By the same token, I would like to point out some of the results we have achieved in Montenegro. We have strengthened the political and established macro-economic stability. The upward trend in GDP continues and at the end of the year it will reach 3%. We have made considerable progress in combating inflation and reducing budget deficit. All indicators confirm that both parameters will remain within the limits applicable to the euro-zone. We are about to finish the process of privatizing strategic companies. Likewise, we are making continued efforts to promote the investment climate. Development of an effective and reliable legal system, reliable, transparent and capable public administration, partnership between public and private sector and development of major infrastructure remain our day-to-day priorities. In a word, we are strongly reform-oriented, developing a system that would be able to serve the purposes of European and Euro-Atlantic integration.

In general, we might say that the region of Southeastern Europe has reached a turning point we have aspired to, and that is for development issues to become the main topic of our meetings. Likewise, by taking active part in regional initiatives and processes, we prove that a stable business environment free from barriers can also be developed in this region, in accordance with European principles. That is a clear signal sent from the region that we aspire to international cooperating and integration and that such a thing is possible and feasible, by which we confirm our readiness and capacity for future European integration.

Thank you for your attention
Berlin, 17 November 2004