Mr. Chairman,
Distinguished Colleagues,
Ladies and Gentlemen,

First of all, I would like to thank our hosts of Novi Sad, as well as my good friend President Boris Tadic in person, for the excellent organization of this 16th Meeting of Presidents of the Countries of Central Europe. Allow me to express my confidence that today’s discussion will take place in the spirit of our common vision shared at the Ohrid meeting a year ago, of seeking to make our debate more effective, and our joint efforts more concrete and pragmatic.
In today’s context of a qualitatively new type of global challenges facing the world economy, a key priority for all of us is not only to put the effects of the crisis under control, but also to regain and strengthen the confidence of our own citizens in an economically powerful, competitive and open Europe, a Europe that should serve as a model, guarantor and engine of development and prosperity on a global scale.

I will begin my address on the subject of energy because, in a sense, it plays a leading role in the efforts to deal with the challenges. On the one hand, energy has significance in its own right for the economy of each of our countries, while on the other, it is a major link in the entire chain of necessary economic policies, as well as a factor for the enlargement of the European Union, since the development and interconnection of energy infrastructures is one of the surest ways of materializing the European perspective of the countries in the Western Balkans.

It is in this general context that we should review the outcomes of the Summit Meeting on ‘Natural Gas for Europe: Security and Partnership’ held in Sofia on April 24-25, 2009. Although dedicated mostly to natural gas supplies, the Sofia Summit has highlighted in a convincing manner the importance of regional and cross-regional energy cooperation in general. In the further development of such cooperation, several important points should, in my view, be made and taken on board:

1. The relative geopolitical advantages for cross-border transfer of energy resources that one country or another has as its potential, should no longer be seen as a purely national privilege. It is time that we commence to perceive our national ambitions and interests in the energy field in the framework of sub-regional and regional cooperation. This presupposes that we seek to identify the goals and approaches that unite us for the purpose of creating a single regional energy market as part of the pan-European energy space. A key step in this direction is to coordinate common policies for development and for structuring an integrated regional market, on the basis of linking together the energy systems in compliance with the goals of the Energy Community and the European legislation on energy.

2. The establishment of an integrated regional market will enable, within a brief period of time, the emergence of genuinely competitive market conditions throughout the region. Fully operational regional energy exchanges will come into being. The integrated nature of the energy market will place in a new light each individual energy project of international significance. This would be of particular importance since it is our region that a sizable portion of the projects that we are discussing now are set to pass through. In this context I believe that one of the positive conclusions of the Sofia Energy Summit was that one should not seek, or overly emphasize, the opposition between the South Stream and the NABUCCO gas pipeline projects. They are not mutually competitive from the perspective of the interests of the European consumer. There is, however, very fierce competition in terms of suppliers and the routes these projects are to follow, and this is something we should understand and come to terms with. I therefore believe that one of our next forums should go deeper into the specifics of the matter in discussing the genuine issues pertaining to the diversification of suppliers, sources and routes of natural gas. Because what we believed had been negotiated about NABUCCO a couple of years ago is now under a big question mark, following the latest changes in the attitude of some countries that are potential participants in the project. And we need to face the matter in all its seriousness. We need more pragmatism, more market-oriented thinking, and less schemes that smack of geopolitics. It is the latter kind that we see more of within the context of the energy debate taking place on a pan-European scale.

3. One peculiarity of the region we live in is that the introduction of market conditions and regulatory provisions of a European type should take place in parallel with the construction of new and the improvement of the existing facilities. This means that for our region, the needs for investments will be colossal. Especially during the times of this global financial crisis, the only proper strategy is to join our efforts together for the creation of energy capacities and possibilities for cross-border transfer of oil, gas and electricity and for joint investments in nuclear energy. I reaffirm once again Bulgaria’s willingness to participate directly in such trans-regional cooperation at a corporate level.

4. The January gas crisis has shown that Central and Eastern Europe are the most vulnerable in terms of disruptions and breakdowns in the supply of natural gas. The EU as a whole has proven unprepared for the prevention and management of such crises. Coordination between the Member States has not been up to standard. Our analysis shows that such vulnerability remains, largely due to the existence of two ‘tight spots’ in natural gas supplies: the absence of North-South intersystemic connections and the mutual separation and inadequacy of networks in South-Eastern Europe. I shall cite the example of Bulgaria, as one of the countries worst affected by the January crisis, exactly because of such separation of its national gas network. For that reason, we are in the process of implementing joint projects for connecting our networks with Romania and Greece, and we are ready to do the same with our western neighbors. Such connections must be effected as soon as possible, using the funds that were pledged by the EU in the first half of the year. As the Declaration of the Sofia Forum points out, a strengthened role of the private sector should be incentivized by stable energy policies. It is also necessary to introduce new requirements for transparency of the basic data in the energy sphere.

5. The energy market in South-Eastern Europe has not reached the level of liquidity and integration characteristic of the markets in Central, and especially in Western Europe. A number of Bulgarian energy companies in our part of the continent are in a process of restructuring. They are also faced with significant investment risks. In summarizing, we could say that South-Eastern Europe needs special attention at both an intergovernmental and a corporate level.

In this context, I wish to avail myself of this high rostrum to propose once again, insistently, that the countries represented here, as well as others willing to do so, should commence a process of mutual exchange of information, discussion and coordination in the preparation and implementation of our national energy strategies. The aim of such exchange would be: speeding up the establishment of an integrated regional market, streamlining costs for new generating facilities and intersystemic connections, and adopting EU rules and practices. The Republic of Bulgaria is willing to host an international meeting on that subject matter, with the participation of the European Commission.

The next thread of my expose, esteemed Colleagues, relates to the global financial and economic crisis. I would like to underscore the necessity of coordinated actions and mutual cooperation, based on solidarity, as a key priority in the efforts to mitigate the negative effects of the crisis on the national economies.

Bulgaria highly appreciates the concerted actions at EU level for restoring confidence in the financial system. We support the EC-proposed main goals of the program for reform of the financial markets.
And lastly, a few thoughts about the EU enlargement and, more specifically, the European perspective of the Western Balkans. This is a subject on which Bulgaria’s position has been consistent and unchanged over the past 7-8 years, making it easy for me to recall and underscore some of its main aspects. I certainly do believe that today, the doors of the European family, of our common European home should remain open for new members. We shall continue to support the policy underlying the Thessaloniki Agenda, subsequently taken forward by the EC Communication entitled ‘The Western Balkans: Enhancing the European Perspective’ (March 2008), but we should admit that the dynamics of enlargement has slowed down. I remind you of that and I emphasize it since the European Parliament elections held recently have shown a dangerous upsurge of extremist and populist formations that could easily be tempted to take advantage of the economic crisis, social insecurity and the assertions of the so-called ‘enlargement fatigue’ in support of their nationalistic platforms.

Mr. Chairman,

In April of 1948, in a speech before the Belgian Senate, on the occasion of the signature of the Berlin Pact, the great European Paul-Henri Spaak warned as follows: ‘The dilemma is simple and clear: Europe will either unite, or will meet its decline.’ Today, 60 years later, European unity is largely a fact. And yet, no family photo of United Europe will ever be complete with the peoples of the Western Balkans absent from it. I am convinced that the requisite objective factors, the political will, vision and enthusiasm are all there, in order for the process of integration to be brought to a successful completion, and for the European citizens of the Western Balkans to take their worthy place in the family to which they have always belonged in history, culture, and spirit.

Thank you for your attention.