Re-assessing the EU-Russian dynamic

Russian President Vladimir Putin may well have exaggerated concerns about the recent expansion of the European Union. Barely three weeks after the accession of 10 new member states – the majority former socialist countries – Russia succeeded in reaching an agreement with the EU which could pave the way for Moscow to join the World Trade Organization, a body it has long held negotiations with. Today, Russia is the only major economic power not a member of the WTO.

On May 21, Putin and the president of the European Commission held talks in Moscow on the establishment of four common areas. The most important was the common economic area, which, in addition to promoting mutual investments, also sets out the development of ties in the field of transportation and telecommunications. Numerous economic issues of dispute linger between the EU and Russia. Brussels essentially demands liberalization of the Russian gas market, including the raising of domestic gas prices (currently the rate is one-fifth of world market prices), and the elimination of Russian energy monopolies. Brussels also wants to convince Russia to reduce customs duties levied on motor vehicles and airplanes.

In addition to economic aspects, the future “common area” will cover external and internal security, law – which will involve in the long term the visa exemption agreement firmly promoted by Moscow – and cultural and scientific cooperation. Resolution of existing disputes will likely be a longer process. The trade agreement signed by EU Trade Commissioner Pascal Lamy and Russian Minister for Economic Affairs German Gref, already offers practical advantages to Russia – including potential membership in the WTO. Russia promised ratification of the Kyoto Treaty, a move Moscow regularly flicks among its political bargaining cards since the agreement cannot go into force without such ratification.

Vajna to spearhead world’s largest film studio in Hungary

Hungarian-born independent producer Andrew Vajna and Budapest property tycoon Sandor Demján will build the world’s largest movie studio in a quaint wine-producing village just west of Budapest. Hungarian Culture Minister István Hiller officially announced the ambitious development at the Cannes Film festival May 15. Although details of the development have not yet been released, cinema industry analysts say if this audacious plan comes through by one of Hollywood’s most dynamic producers, and Budapest’s most powerful real estate developers, the Carpathian basin could be permanently transformed into Hollywood’s official back lot.

The development would also deliver a crushing blow to Prague, which has been the favorite location for western producers and directors for years. Prague, however, has found itself out maneuvered by Hungary, which recently passed a film law with rebates and tax incentives. The law has made Hungary the most film-friendly territory in Europe, if not the world. It is reported that Demján and Vajna will spearhead the financing and construction of the studio, which will include state-of-the-art high tech and special effects technology that will make the facility accessible to even the most ambitious Hollywood blockbuster.

Hungarian media reported that the studio will include underwater tanks, which will allow filmmakers to shoot “Titanic”-like special effects on the premises. Although the biggest, the studio, situated in the town of Etyek, is not the only venue under consideration and construction in Hungary. Television and film mogul Robert Halmi almost sealed a deal to build a major new studio complex in the village of Fót outside of Budapest, the location of a state-owned backlot. Currently, Canadian-Hungarian producer Robert Szabados is also building a film studio complex, called the Stern Film Studio and Media Center Kft., in Pomáz, north of Budapest. For the present, the Stern complex will include two, 1,500 square meter studio buildings, a set construction workshop, and a mammoth parking lot able to accommodate heavy trucks and trailers. Smaller than the Etyek studio, analysts say the HUF 500 million-budgeted Stern complex stands to attract smaller productions (TV series, made-for-cable movies, commercials) than Etyek (which will be geared for Hollywood blockbusters), but could profit from increased film activity the Vajna/Demján investment would generate in Hungary.

But analysts are warning excited filmmakers not to count their profits just yet. No budget for the Etyek development has yet been announced. Although Vajna and Demján scheduled a news conference at Cannes after minister Hiller’s announcement, further details were not provided. Népszabadság reported that the recently passed “Hungarian Film Law” will also provide crucial subsidies for this development, centered in the quaint white winemaking community of Etyek.
Film production is not new to Demjan, who built a real estate empire by erecting a series of mega malls, including Budapest’s West End Center, touted as the largest retail venue in Central Europe.

Zagreb stretches its hand to Belgrade on train to EU

Croatia and Serbia-Montenegro are hoping to come full circle. From partners in the former Yugoslavia, foes in war and partners again, the two countries are hoping to join forces in the European Union – and as quickly as possible. Zagreb currently leads the pack of Balkan nations, hoping for EU membership in 2007, but wants to work with Belgrade on lingering problems and help the country set its own track to EU membership beyond 2010.

During a May 24 visit to Zagreb, President of Serbia-Montenegro Svetozar Marovic described Croatia's strong bid for EU membership as "success for the region."" We are very pleased. It sets a good example that is an encouragement and a responsibility for all of us," he said after meeting Croatian President Stjepan Mesic. Last year in Belgrade, Mesic and Marovic exchanged apologies for atrocities committed by the two sides during the war, which set the stage for improving thawing ties between the countries, as well as set bilateral standards in line with the EU. They agreed to retain a relaxed visa regime and ensure the rights of the minorities, which would include the resolution of problems still present since the 90s, such as Croats missing during the war and the property of Serb refugees from Croatia.

The two countries signed a three-year protocol aimed at enhancing bilateral cooperation, with the aim on European integration." As far as Croatia is concerned, there are no obstacles in cooperation in European issues," Mesic said. The visit passed without a hitch, despite a moment of tension a week earlier, when Mesic declined to welcome Belgrade's Foreign Minister Vuk Draskovic, along with Marovic. Many Croats remember Draskovic's role in the assembling of a Serb paramilitary force in the early days of war. Marovic downplayed the issue and went without Draskovic. Zagreb accepted Marovic and set up a visit to Belgrade by Croatia’s Foreign Minister, Miomir Zuzul, to meet Draskovic at a later date.

Romanian local elections in the spirit of change

Following a tumultuous campaign, many inhabitants of Cluj Napoca breathed a sigh of relief as Gheorghe Funar and his Romanian National Unity Party, who had led the city for the last 12 years, lost during the first round of Romanian municipal elections June 6. Funar, a nationalist whose antics have caused animosity between Romanian and Hungarian inhabitants of the city, received a mere 20.7 percent of the vote. Funar’s legacy in the city is felt with an abundance of park benches and garbage cans painted in Romanian national colors – in a city inhabited by a large number of ethnic Hungarians. The Romanian Hungarian Democratic Alliance (RMDSZ) - the largest Hungarian minority party – supported social democrat Ioan Rus, Romania’s former interior minister, who obtained 41.1 percent of vote in the first round. Emil Boc, Democratic Party representative, received 35.6 percent and also made it to the second round of elections set for June 20. Local elections also took place in the capital, Bucharest, where Traian Basescu’s Democratic Party took 59.3 percent of the vote, over opponent Mircea Geoana, Romania’s foreign minister, who received 29.6 percent.

South Africa wins right to organize soccer World Championship in 2010

“This is the biggest birthday present for our young democracy!” wrote South-African weekly, The Sunday Independent, in an editorial hailing the country’s winning bid to host the World Championships of 2010. It will be the first time ever for Africa to host the soccer world championship. The decision didn’t come as a great surprise, since the five-member committee, headed by the Belgian Jan Peeters, praised the South African bid the most after visiting all five bidding countries. Other countries in the race were Egypt, Morocco, Tunisia and Libya. South Africa missed to win the right to organize the football world championship in 2006 by one vote. The country has come a long way in recent years. South Africa’s first constitution after the Apartheid was declared by the first black leader of the country, Nelson Mandela in 1996. And after three successful elections, democracy is gaining a foothold. The dynamically developing country can take pride in its modern financial, communication and energy sectors as well as in its high-quality infrastructure. In recent years, sports have brought South Africans together, partly through mixed teams and partly when rooting for the local team at the rugby or cricket world championships held in South Africa. The country is betting on economic growth, stemming from winning the bid to host the 2010 championship. Officials also expect an increase in tourism, which has remained a prosperous part of the economy. Unemployment in South Africa is 30 percet and half of the population lives in poverty.

Slovakia asylum applications skyrocket

Slovakia registered a record number of asylum applications in April, reported the Office of the United Nations High Commissioner for Refugees (UNHCR) in Bratislava, and predicted more to come. As many as 1,067 asylum seekers submitted their applications, the highest number in Slovakia's history and the highest number of applicants in Central Europe in 2004, the news wire SITA reported. "The number of asylum seekers is likely to increase if refugees continue to use Slovakia as a transit country from which to head west, only to be turned back due to the Dublin protocol," said Zolo Mikes, a spokesman with UNHCR Slovakia." Based on documents that Slovak governmental bodies have prepared, it is assumed that the number of asylum seekers might reach 20,000
at the end of 2004 compared to the 10,352 asylum seekers in 2003," he added.
The UNHCR has warned that the country's asylum system is fragile and might not be effective enough to handle the increasing number of asylum seekers once Dublin II regulations and Eurodac take effect. Slovakia’s role for refugees has been changing from a transit country to one hosting applicants for refugee status. The EU regulations allow EU countries to send applicants back to the border countries where they first requested asylum. The Slovak Interior Ministry's Migration Office reported a total of 4,152 asylum applications for the first four months of 2004. The highest number of applicants is from India. Earlier this year, the UNHCR said there was a sharp increase of applicants in the last three years, particularly from countries where refugees do not normally depart from, like India, China and Bangladesh. Poland, several times larger than Slovakia, registered only 2,299 applicants this year and Hungary, which has a longer EU border than Slovakia, had 528 people apply for asylum, UNHCR said. Compared to the same period last year, the number of applications has increased by 120 percent. Applications in other European countries have generally been declining.

Chinese President Hu Jintao in Budapest

Chinese President Hu Jintao paid an official three-day state visit to Budapest in early June, signing bilateral agreements on education, culture and initiating a direct air route between Budapest and Beijing, which will begin service Aug. 2, through Hungary’s flagship carrier, Malev, and Chinese carrier, Hainan Airlines. Hungarian President Ferenc Mádl highlighted his expectations that Hungarian companies will get orders for the upcoming Olympics in Beijing.