The Croatian Capital played host to the First Economic Forum and the 9th Summit of Prime Ministers of the Central European Initiative (CEI) states held November 18 to 21, 1998.

Following the Zagreb summit of prime ministers of 16 member states, the lines of force that have had control of the hitherto international relations of the Central European Initiative are essentially changing. A year back at the 8th summit of prime ministers in Sarajevo, the negotiations were dominated by political co-operation and assistance issues, while in the Croatian Capital the hitherto priority of political dialogue was outweighed by an emphasis on mutual economic co-operation. A principle shift in orientation toward strengthening economic links between the CEI states was presaged by the First Econo-mic Forum preceding the very meeting of prime ministers, and was subsequently underlined by the adoption of a final document stressing a priority importance of building a Central European economic area.

The primary outcome of the three-day economic forum is a unanimously accepted understanding that a therapy for weak level of mutual economic relations is the development of regional and subregional co-operation. Slovak Minister of Economy Ľudovít Černák put this new point of departure as follows: "It seems as if we are looking too far beyond the horizon and do not see the close neighbours."

Nevertheless, lifting the curtain over the reserves in mutual economic relationships does not imply an emasculative interest in the process of economic globalization and European integration. Connections are obvious from the facts as presented at the economic forum's opening speech delivered by Croatian Prime Minister Zlatko Matesh. The CEI common market is inhabitated by a population of 240 million turning out annually US$200 billion worth goods and services. evertheless, two CEI member states, Austria and Italy, which are at the same time European Union members, are contributing with a population of 70 million three fourths of total production to the market structure.

While economic experts and economy ministers changed their seats at the round table of the CEI First Economic Forum setting priority objectives and tasks for closer co-operation, the forum presentation section provided room for making bilateral and multilateral state and corporate contacts. A presidency-in-office state of the CEI, Croatia took the initiative to combine the Zagreb summit with a presentation of the status of economic reforms, particular projects for possible co-operation and the conditions for investing in individual member states. Naturally, in the presence of representatives of the World Bank, the European Bank for Reconstruction and Development the Council of Europe and the Organisation for Economic Cooperation and Development emphasis on foreign investment was accented, which was understandable in particular in the light of the hosting country. Croatia is, together with Slove-nia, Poland, Hun-gary, Czechia and Slovakia, a potential applicant for the largest share of the interest of foreign investors in entering the Central European economies. While Croatia with its US$ 750 million is dwarfed by the dominant Hungary, which has seen US$18 billion worth FDI sunk there since 1990, it is adding a range of support measures regarding legislation, capital market and privatisation to its ambitions to court investors.

Slovakia, which had become isolated from the bloc of 16 member states due to a reserved approach to CEI activities adopted by the government, presented in Zagreb a revived interest in taking part in Central European co-operation.

"This summit was a good opportunity to show Europe that Slovakia is a fully democratic state capable of co-operating with her neighbours in the Central European area," Prime Minister Mikuláš Dzurinda summed up the results of the summit and meetings with eight prime ministers.

A range of bilateral negotiations with their counterparts supporting the development of regional co-operation were also undertaken by Foreign Minister Eduard Kukan and Minister of Economy Ľudovít Černák. Their joint agreement in that the co-operation rests on the economy was obviously illustrated by the First Communal Bank Žilina, Podpolianske strojárne Detva, Martinmetal Martin, DMD Holding Trenčín, ZŤS Dubnica nad Váhom and Chirana Progress Stará Tutá by way of presentation of investment and trade projects directed as a challenge to foreign partners. For all arguments presented in favour of Slovak economy, the words from David Brown spoken on behalf of the Slovak National Agency for Foreign Investment are worth citing: "Out of 250 foreign entities doing business in Slovakia and tested in terms of assessment of business conditions as much as 90 percent anticipate to shortly expand their activities."

Slovak Trade FORUM