The transition of most of the Balkan countries to market economies opened up a new era of collaboration and of mutually beneficial economic relations between the countries of the Balkan region. For Greece in particular, it contributed to the reestablishment of its historical economic and trade relationships with these countries, which during the post-war period had experienced a significant shrinkage in relative terms.
Although armed conflicts, political differences, and internal economic imbalances did not allow the development of economic relations with all countries of the area, significant achievements can be noticed during the period 1990-1995 in the fields of trade, investment, labor mobility and technological cooperation. The return of peace in the territory of former Yugoslavia, as well as the improvement of Greece's relations with Albania and FYROM lead also to a significant intensification of economic cooperation with these countries.
With regard to trade, Greece's exports to the Balkan countries increased from $ 0.3 billion (1989-1990) to $ 0.8 billion (1994), i.e., by 165%. For some of the Balkan countries, Greece represents the most important market in the Balkan area, thus contributing to the efforts of the transition economies for the restructuring and stabilization of their economies.
Equally, a large number of Greek enterprises expanded to the neighboring countries though foreign direct investment and/or participation in the construction of large infrastructure projects. The majority of these investment initiatives is concentrated in the fields of trade, services, finance, and, to some extent, also in manufacturing. A small number of foreign enterprises established in Greece and a range of Greek-owned companies created affiliates in different countries, including Bulgaria, Romania and Albania.
This process of "physical" integration between the economies of the Balkan area will be largely reinforced as non-economic problems subside. A new spectrum of opportunities is appearing, extending from Greece to the other Balkan countries, to Russia and to the Black Sea Countries. All these countries have strong historical economic ties that, in combination with new initiatives, can generate multiple benefits for all participants.
In order to enhance the prospects of economic development and cooperation with regard to the Balkan area, the Greek government initiated a number of supporting policies.
1. Investment in infrastructure
Numerous infrastructure projects are undertaken nowadays in Northern Greece, enhancing regional and transfrontier cooperation among Balkan countries.
The construction of EGNATIA route, 680 km of road across Epirus, Macedonia, Thrace as well as the vertical routes connecting North-South parts of the Balkans, greatly contributes to economic development and regional integration.
New border crossings across the Hellenic-Albanian boarder and the Hellenic-Bulgarian border are materializing with European Community assistance within the framework of Cross Border Cooperation PHARE-INTERREG II.
Modernization works in a number of ports and airports, as well as improvement of telecommunication networks in Northern Greece are expected to facilitate trade and communications in this new regional market.
2. Creation of incentives
During the last years, a broader spectrum of actions has been undertaken to support outward-looking initiatives of enterprises. Incentives for new business plans, for networking, vocational training programs for employees, entrepreneurs etc., commercial agreements with neighboring countries, and the creation of a Stock Exchange office in Thessaloniki, are some of the most important examples.
The new law on "venture capital" is expected to assist enterprises to participate in business initiatives in the Balkan countries. The Black Sea and Development bank, based in Thessaloniki, will support trade and project development. The recent upgrading of the Hellenic Export Organization is providing investors with insurance against political risk, while the promotion of factoring firms is providing trade companies with insurance and facilities.
3. Human Resources
The prospects of growth, employment, and welfare of the Balkan countries demands not only transfer of capital, but also managerial skills, training in new technologies, and promotion of scientific exchange programs.
During all these years, Greece has provided to hundreds of thousands of immigrants from Balkan countries the opportunity to be employed, thus contributing to the efforts of reconstruction of these countries, to the alleviation of significant social problems, and to the overall stabilization of their economies.
The Greek government also strongly supports exchange programs that promote scientific cooperation, management training, and joint development of technology.
4. Stable macro economic environment
Economic cooperation among Balkan countries requires the attainment of a relatively stable macro-economic environment in all countries, without extreme uncertainties. Increasing the degree of tax harmonization, developing a compatible financial system, and avoiding monetary surprises are steps towards this goal. Joint activity in the banking sector, information exchange by Central Banks and economic policy-makers, and a deeper knowledge of each other's economies will help achieve a level of mutual understanding and cooperation among economic authorities.
The aim of European Union is to integrate energy, transport, and telecommunication infrastructure into Transeuropean Networks by year 2010. Greece, the only member-state of the European Union in the Balkan region, fully supports and participates in the implementation of these policies and will do its best to ensure their extension to, and utilization by, the Balkan countries.
The Transeuropean Energy Networks are improving competitiveness, enhancing energy efficiency, and securing energy supplies for the Western parts of Europe. The development of TENs requires long-term, close coordination among the Balkan countries and cooperation in environmental policies.
The Transeuropean Transport Networks include the construction and modernization of major routes connecting Greece and Balkan countries with Central and South-Eastern Europe. The construction of EGNATIA route, as well as the vertical routes connecting North-South parts of the Balkans, will provide new impetus to regional development and economic integration.
Finally, the Transeuropean Networks for Telecommunications will improve speed, reliability, and availability of communications. They will also allow the introduction of new services, thus helping the countries to adjust to the requirements of the Information Society. Coordination between Telecommunications Organizations of Balkan countries has already started.