Central and Eastern Europe
The fall of the Iron Curtain that divided Europe, the end of the Warsaw Pact and the implosion of the Soviet Union between 1989 and 1991 rang in sweeping economic and political changes in Central and Eastern Europe. In 1999, Hungary, Poland and the Czech Republic joined NATO. Estonia, Latvia, Lithuania, Slovakia, Slovenia, Bulgaria and Romania followed suit on 29 March 2004. All these countries, with the exception of Bulgaria and Romania, joined the European Union in May 2004, along with Cyprus and Malta. Romania and Bulgaria became members of the EU in 2007.
The demise of the Soviet Union in 1991 led to the emergence of 15 new independent countries. Since then, three of them (Estonia, Latvia and Lithuania) have joined the EU and NATO. 11 other countries constitute the Commonwealth of Independent States, or CIS. Russia, which remains the largest country in the world in terms of surface area, even after the dissolution of the USSR, has become a member of the G8 and enjoys excellent relations with the EU and NATO. Georgia has withdrawn from the CIS in 2009.
Following the enlargement of the EU, the Union’s external border shifted to the east. The European Neighbourhood Policy, an initiative taken by the EU in 2004, is strengthening ties with Ukraine, the Republic of Moldova, Armenia, Georgia, Azerbaijan and Belarus. The Central Asian countries Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan are very important, not only at geostrategic level, but also in economic terms. The region used to be traversed by the legendary Silk Road which extended all the way to China, and today these countries still constitute a bridge to the Far East.
Belgium’s foreign policy has responded to these developments. Since the opening of Belgian embassies in Riga (Latvia) and Tallinn (Estonia), Belgium has been represented in all EU Member States. In recent years, relations with Russia have become more important, as the recent opening of a consulate general in St Petersburg illustrates. Belgium’s ambassador to Moscow is also accredited to Minsk (Belarus) and should soon be accredited to Tashkent (Uzbekistan) and Erevan (Armenia). As early as 1993, Belgium opened an embassy in Kiev (Ukraine), and in December 2005, an embassy was opened in Astana (Kazakhstan).
In view of their trade potential and investment needs, in March 2009 the three Belgian Regions joined forces to open a representation in Almaty, the economic hub of Kazakhstan.
Belgium opened an embassy in Baku (Azerbaijan) in 2007. This embassy will also be competent for Turkmenistan and Georgia.
1. The new EU Member States and NATO countries
The EU institutions provide good added value for the new EU Member States, since integration into the European Union has improved their standard of living, their competitive and their infrastructure. Moreover, these countries benefit not only from the European Structural Funds, but also from the advantages of the internal market. Their involvement in the EU and NATO also offers them additional security and stability.
The financial and economic crisis was a serious challenge for the economies of the new Member States following a period of relatively high levels of economic growth and material and social progress, achieved in part through substantial foreign investment (e.g. from Belgium). In many cases, these investments are also beneficial to the Belgian economy. Furthermore, these countries’ imports and exports have risen sharply in recent years, primarily thanks to trade with other EU Member States.
These Member States have also paved the way for the next stage: the switch to the euro. Their governments’ policy aims to meet the convergence criteria, so in other words healthy public finances. So far, three new Member States have joined the eurozone: Slovenia (on 1 January 2007), Slovakia (on 1 January 2009) and Estonia (on 1 January 2011).
Slovenia was the first EU Member State from Central and Eastern Europe to hold the Presidency of the Council of the European Union (first half of 2008). Then during the first half of 2009, it was held by the Czech Republic. The Hungarian Presidency (first half of 2011) and the Polish Presidency (second half of 2011) of the Council of the EU have made it possible for Belgium to deepen the bilateral and multilateral relations with these countries.
Belgium fully supports the EU’s policy on Central and Eastern Europe. Both the federal government and the Regions and Communities have concluded treaties and agreements with these countries with a view to close cooperation in various areas (e.g. protection of investments, taxation, police cooperation, education and culture). Naturally, in its bilateral relations Belgium endeavours to contribute to the development and integration of these countries. Our experience as a member of the EU and a medium-sized federal state with an open economy could prove useful to the new EU Member States.
Belgium has some key assets: Brussels is the principal home of the EU institutions and NATO, and therefore offers the possibility of frequent contacts.
Alongside the action of our embassies, regular trade visits and missions are also very important for the construction of a sustainable network of diplomatic, political and economic relations in Central and Eastern Europe. Investments by major Belgian companies and by small and medium-sized enterprises are raising Belgium’s profile.
Although trade between Belgium and the 12 new EU Member States only represents a relatively small fraction of Belgian trade as a whole, their economic weight has increased quite significantly over the past few years.
2. Russia, Ukraine and the countries of the Southern Caucasus and Central Asia
The Russian Federation has been one of Belgium’s partner countries for a number of years now. This can be seen, for example, in the Action Programmes concluded since 1999 with the aim of encouraging bilateral contacts and interaction in a whole range of areas, and in the economic missions, usually organised every five years. Europalia 2005, which was devoted to Russia, was a huge success.
Ukraine is hoping to develop better relations with the European Union. But the negative developments in the field of human rights and in the investment climate have put a brake on the rapprochement between the UE and Ukraine.
The Republic of Moldova, bordering Ukraine and Romania, also aspires to EU membership in the medium term. The country is preparing for this step via the European Neighbourhood Policy and the negotiations on an association agreement with the EU. However, the conflict with Transnistria, a de-facto autonomous region of the country, is hindering the integration process.
Sustainable cooperation and even a partnership with Belarus would be desirable, provided it implements the appropriate democratic reforms.
The countries of the Southern Caucasus and Central Asia find themselves facing both political and economic challenges. These countries have undertaken fundamental reforms with regard to democracy and their economy, but further efforts will have to be made in these domains.
During its presidency of the OSCE in 2006, Belgium strove to propose original solutions to the so-called ‘frozen conflicts’ in the Southern Caucasus. However, in this region which has been scarred by history, where borders have been continually redefined, which is inhabited by very diverse ethnic groups and which is of considerable geostrategic importance, conflicts continue to hinder balanced development.
Armenia was seriously affected by the economic crisis in 2009, and the opening of its borders with Turkey remains subject to negotiations on the Nagorno-Kabarakh conflict. This would certainly give a boost to the country’s economy and trade.
Azerbaijan is emerging as an important transit country for oil and gas and is keen to diversify its economy. The country is becoming an ever more important actor in the region.
In Georgia, the positive impact of economic reforms and modernisation are already being felt. The country has also benefitted from the substantial international aid it received for reconstruction following the hostilities in August 2009.
Nor should we underestimate the strategic importance of the Central Asian countries, not only because of their geographical location (situated between Turkey, Russia, Iran and China), but also in light of their natural resources, in particular the vast reserves of oil and gas in Kazakhstan and Turkmenistan.
In June 2007, the Council of the EU adopted a European Strategy for Central Asia which is intended as a framework for developing relations between the EU and these countries. Belgium supports this Strategy and strives to maintain good relations with civil society, the source of any development, in those countries.
