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Trade scheme may aid Balkans stability
SALZBURG, Austria, Sept. 16, 2002 - The seven countries of the Central European Free Trade Agreement (Cefta), the main vehicle for economic co-operation in central and eastern Europe, are considering expanding their activities in a way that could help build economic stability in the Balkans.

Meeting in Bratislava at the weekend, the prime ministers of Bulgaria, Hungary, Poland, Romania, Slovakia, and Slovenia and the industry minister from the Czech Republic agreed they would try to complete accession negotiations with Croatia by the year end.

Member governments are also considering next year starting entry procedures for other south-east European states, including Macedonia and the state of Yugoslavia which is changing its name to Serbia and Montenegro.

Janez Drnovsek, the prime minister of Slovenia, which will assume Cefta's rotating presidency next year, said Macedonia could fulfill the entry conditions once it was politically stable and other countries, including Yugoslavia, could also become members.

"I think Cefta is an important instrument of European integration," said Mr Drnovsek, adding that the organization could serve as a step towards membership of the European Union.

Cefta members are reassessing the pact's role in the light of the fact that four members - the Czech Republic, Poland, Slovakia and Slovenia - are hoping to join the EU in 2004. No country is planning to leave Cefta on EU accession; instead, they want to serve as a trade and investment bridge between EU and non-EU states.

Founded 10 years ago, the pact encourages free trade in the region, but has suffered trade disputes among members, notably between Hungary and Poland over agricultural goods. Hungarian and Polish officials announced a partial settlement of their differences in Bratislava.

Leaders of EU candidate states are expected today to press their case for better EU accession terms at a World Economic Forum conference in Salzburg.

Among the speakers will be Slovenia's Mr Drnovsek, Arnold Ruutel, Estonian president, Adrian Nastase, prime minister of Romania, and Günter Verheugen, EU enlargement commissioner. Candidate states hope to join the union in 2004 but fear their bids might be delayed by arguments over financial issues, including agricultural subsidies, and doubts about enlargement in some EU countries.

Source: The Financial Times, By Stefan Wagstyl

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