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Rosen Plevneliev: Europe Has the Historic Opportunity to Invest in the Economic Progress and Political Stability in the Balkans

Europe should avail itself of the historic opportunity and should support the economic progress and the political stability in the Balkans. This is what President Rosen Plevneliev called on for at a meeting of the AGA Business Association in Hamburg, which has 3,500 German member-companies.

The President highlighted that the European Southeast is a strategic goal of the European Union and that nearly 50,000 million euro will be invested in the region under various programs by 2020. Leading German companies, including HypoVereinsbank, Lufthansa, Aurubis, Sharp Electronics, and Holzen, among others, are participating in the forum.

“The EU should not consider Southeast Europe as a periphery, but as a centre of European policy and of geopolitical interest,” Rosen Plevneliev was adamant. In the President’s words, Europe’s security also depends on the stability of the Balkans and that is why it is strategically important for the countries in the area to attract increasing German investments as a factor of sustainable development. In the past ten years direct German investments in Southeast Europe have increased six-fold and the country's trade exchange with the region has risen
three-fold  and has reached 53 million euros.

“Bulgaria is becoming a modern, open, European economy, as are all other countries in Southeast Europe,” the Head of State further said. In Rosen Plevneliev’s view, today the Balkans are an example that Europe of the regions is functioning and highlighted the efforts for improving the transport and energy connectivity, for attracting large investors and for establishing economic clusters between the countries in the region.

The development of the car industry in Romania and Serbia lies at the basis of  the facilities producing vehicle components and parts for the car industry.  Currently 80 percent of the vehicles produced with the stamp “Made in EU” are built-in technical components, produced in Bulgaria, President Plevneliev recalled at the forum. This achievement of the Southeast European countries is already attracting new investors, and the first Chinese car producer who decided to settle in Europe, chose Bulgaria to set up his production facilities.

The Head of State emphasized that the countries in the Balkans are aware that the better the existing clusters in banking, finances, insurance, tourism and ICT function, the faster investors will come in the car industry, agriculture, food production and pharmacy.

“As President I guarantee an ambitious reform program for Bulgaria. While almost everyone speaks of growth, I consider progress the correct word. Growth of loans, growth at the expense of the next generations is not growth,” President Plevneliev addressed the participants in the forum. The Head of State emphasized that seven years after the beginning of the world economic crisis, some countries still speak of growth, yet little growth has been achieved. “Other EU member states conducted bold reforms and achieved considerable growth. They built firm foundations and currently they can grow again. Bulgaria and the region have firm foundations and will grow for sure. To me, the relevant question is not whether we will grow, but how fast,” the President said.   

Rosen Plevneliev highlighted that what Bulgaria has achieved should not be underestimated, proof of which are the thousands of German companies that have invested in this country and have achieved success. In the past ten years the trade between Bulgaria and Germany has increased seven-fold. “Bulgaria is among the countries with the lowest taxes, and also with the lowest national debt in the EU. We are the only European country among the ten best destinations for outsourcing in the world,” the President said.

In the ITC sector, Bulgaria ranks third in the world by the number of certified specialists per capita, the President further said. Leading world companies have been developing and profiting from this growing potential for years and establish Bulgaria as a regional technological hub. “We also have a dynamic eco-system of start-ups in the ICT sector. Sofia was declared the third best capital in Europe for start-up companies after London and Dublin, with hundreds of newly-established companies per year” Rosen Plevneliev added.

The Head of State said at the forum that the significance of the Balkans as a crossroads between Europe and Asia will continue to increase, and the economic powers are aware of this great potential. China has already announced the beginning of the ambitious “16+1” initiative and the “Economic belt along the silk road,” which creates conditions for economic diversification in Southeast Europe, increases the demand for the concession of ports, promotes the modernization of the railways and highways. Rosen Plevneliev was adamant that this makes it necessary that the countries from the region should speed up energy diversification and liberalization as well, which will improve the security of the supplies of energy resources.   

The Head of State said that the development of the European Energy Union is a new motor for EU integration and emphasized that the price of natural gas in Southeast Europe should soon be determined by the market, not by political interests. The President called on for putting an end to the dangerous policy of “great powers” and “spheres of interest” and particularly with respect to the Western Balkan countries. “The countries that have not yet become EU members should receive clear-cut European prospects. Bulgaria supports the EU membership of all neighboring countries,” Rosen Plevneliev emphasized.

The President called on Europe to refrain from retreating from the democratic values because of economic interests and highlighted that the European countries need a closer integration to face the common challenges. “The great number of crises, the Middle East conflict, the failed states, terrorism, climate changes and the migration flows exceed the abilities of the individual state and require common solutions,” the Head of State was adamant.

Rosen Plevneliev emphasized that everything the European countries have built is fragile and can easily be destroyed if the common responsibility to safeguard human rights and democratic principles is evaded. “We should be clearly aware that peace, human rights, democracy and the law-governed state are above everything. Economic development is also impossible without them,” the Head of State said at the forum in Hamburg.