For the German economy in the Western Balkan countries are very important. But you need stability, says in a DW Interview, Michael Harms, managing Director of the German economic Association for Eastern Europe.
DW: How would you assess the current state of economic relations between Germany and the countries of the Western Balkans?
Mihael Harms: It is a Region of the so-called secret favorites. In the last few years, has doubled the volume of trade with these countries, and these relationships have a very good momentum. But that is still not enough. The reason is that these countries are developing very fast, but from a very low level out. Furthermore, it are mainly small and fragmented markets. For this reason, regional cooperation is very important. But German companies do not only trade with the Region, but are also investing there. With six Western Balkan countries, the annual trade amounts to about ten billion euros. At the same time, we have created in Serbia, around 40,000 new jobs in Macedonia, about 20,000. All in all, we can be satisfied with the development.
Serbia plays a special role?
Yes, because it is the largest country in the Region, geographically it has a Central Position and plays politically is also the most important role. In addition, this country is for investors. The automotive industry has created a number of new jobs, including in high-quality areas such as science and technology development. I think that Serbia appreciates this commitment. It is a key Partner for us.
What German companies expect from this commitment?
Entrepreneurs expect economic benefits, they want to make money. And it is in these countries. The Problem is that the markets in the Region are small. Therefore, it’s not worth it to invest solely in the production for this market. Most of the products are destined for the German, the European or the global market. But the workers are well-qualified labour force are relatively inexpensive, there is a good transport connection with Europe, and there is also a European political perspective. The countries have also made on issues such as the rule of law and stable environment great progress, although there are still problems. In addition, a long Tradition of cooperation with Germany, many people speak English. These are All important advantages.
The plant of the automotive supplier Dräxlmaier in Kavadarci, Macedonia
What is the role of issues such as media freedom, human rights or labour rights play?
Companies are, in principle, apolitical. For business owners it is most important to have a stable and reliable legal framework. Democratic developments are, however, a part of it. If you are worthy, no transparent, trustworthy and corruption-free judiciary, have, this also affects the economic environment. For this reason, all companies are interested in the EU-criteria are respected and applied. These are the criteria that must all be complied with in these countries, the EU, and we support this of course.
What do you expect from the future?
This regional economic conference will take place under special consideration of the question: How could the appearance of the Western Balkans in the year 2030? We hope especially that the road to Europe will continue and that these countries will be part of the European Union. We hope that you will not stabilize politically, that the conflicts of the past will break out again, but on the contrary, that they can be solved. And we hope that the population of this country in freedom and prosperity can live with that. In any case, I am very optimistic.
In a few days will take place in Macedonia, a Referendum on the name change of the country. This dispute should be resolved, how will this affect the economic development of the country?
Macedonia is already a successful economic story. The German economy has already invested significantly, and a more intensive trade exchange. A prerequisite for the further development, however, is that Macedonia continues its path to Europe. This name dispute, there was a large obstacle, and we very much hope that this Problem will be solved. This would make the way free, and would be both for Macedonia and for the German economy is very positive.
And the extent to which the Kosovo dispute has affected the economic development in this area?
It would be important that the two sides will find a solution together. Because this is currently a Problem, and this dispute is blocking not only Kosovo but the whole Region.
The interview was conducted by Zoran Arbutina
Michael Harms is a German economic expert, managing Director of the German economic Association for Eastern Europe and one of the organizers of the two-day conference “the Western Balkans by 2030 – a Vision. Wishes. Reality “, at 26. and 27. September 2018 in Belgrade.