The Balkan Chronicle

Some Turks have expressed a touch of smugness about the European Union's current economic malaise, but such misplaced joy is improper, according to Turkey-based Greek academic Dimitris Tsarouhas. "It is not in the interest of Turkey to gloat about the EU crisis – the EU still remains the safest market for Turkey," says Tsarouhas.

Twelve power utility companies from the region discussed about the opening of the electricity market at the first meeting in Skopje. The meeting was organized by the Macedonian power utility MEPSO.

Restrictions that mean workers from the two newest EU members can only come if they already have a skilled job or in limited unskilled posts will stay in place until the end of 2013.

Under EU law, the UK will have no choice but to lift the curbs from 2014 – seven years after the two joined the union.

The restrictions were imposed in 2007 after criticism of Labour’s decision not to impose similar barriers on Poland and other Eastern European nations when they joined in 2004.

That led to a huge influx of workers to the UK.

For self-made businessman Dimitrios, the threats began with a phone call from a man who said they knew where his daughter was.

At first the 57-year-old window installer kept quiet about the calls. When his car was torched in front of his house, he hid the blackened metal shell from his family.

Greece is relying on Iran for most of its oil as traders pull the plug on supplies and banks refuse to provide financing for fear that Athens will default on its debt.

Traders said Greece has turned to Iran as the supplier of last resort despite rising pressure from Washington and Brussels to stifle trade as part of a campaign against Tehran's nuclear program.

Bulgaria's Environment Ministry has issued a positive ruling on the paperwork submitted to it by "Trans-Balkan Pipeline" for the Environmental Impact Assessment (EIA) of the Burgas-Alexandroupolis oil pipeline project.

The decision of the Bulgarian eco ministry does not mean a final approval and a go-ahead of the construction of the project but it allows the evaluation process to go ahead at public hearings; however, had it been negative, it would have killed the BA oil pipeline.

Veteran investor George Soros has attacked the lack of leadership at the top of the eurozone and said that the new Brussels ''deal'' to solve the debt crisis will last only between ''one day and three months''.

Soros, who achieved worldwide fame when he bet against sterling remaining within the Exchange Rate Mechanism in the 1990s, said the 50per cent ''haircut'' on private bond holders would reduce Greek debt by only 20per cent.

He said that was insufficient to stop an economic decline in Greece which would lead to greater social unrest.

Europe's emerging economies will see growth rates come down considerably this year and next as the European sovereign-debt crisis is taking its toll on the region, the European Bank for Reconstruction and Development said in its latest survey of the region.

To avoid the worst, emerging European economies may be well advised to look further east for business.

Brazil on Tuesday rejected the idea of buying European bonds to help ease the euro zone's debt crisis, casting doubt on a plan for major emerging market economies to offer fresh funds for the continent's rescue.

European leaders had floated the idea that developing nations including Brazil and China could provide funding to buy Euro zone bonds, which would help lower yields and ease pressure on countries such as Spain and Italy.

ProdamSam.com, the premier web provider of For Sale & Rent by Owner Real Estate advertising in Eastern and South-Central Europe, added a special feature - Croatian Islands Search with an interactive map.This feature can be found under the Advanced Search page on www.ProdamSam.com.

Slovenia received four non-binding bids for the majority stake in Mercator Poslovni Sistem d.d., the largest supermarket chain in the Balkans, as the industry consolidates.

Three offers for the 52 percent holding in the Slovenian company that is being sold by banks in Slovenia and other shareholders came from financial investors, while the fourth was from a “strategic investor,” ING Bank NV in London said, according to an e-mailed statement today from Nova Ljubljanska Banka d.d. in Slovenia.

Agrokor d.d., Croatia’s largest private company, made a non-binding offer for Mercator Poslovni Sistem d.d. that values the Slovenian company at 840 million euros ($1.15 billion) as it expands further in the Balkans.

Agrokor submitted a bid of 221 euros per share for half of the Ljubljana-based company to adviser ING Bank NV, said two people involved in the offer who asked not to be identified because the bids aren’t public yet. If chosen, Agrokor would have to extend its offer for the rest of the shares, under Slovenian law, and may pay as much as 2 billion euros, including debt assumption, Poslovni Dnevnik reported.

The decrease of production from greenhouses and local farmers caused the increase of prices for consumers. These changes with opposite directions have been present for several days in the retail markets, but according to the farmers, the increase of prices will not be similar to the last years.

“Now the market does not have the same prices as before because production has decreased and prices have increased. Compared to the import prices, they reach 50 percent above the level of import; of course, if we consider the regional market,” said President of the Albanian Agrobussines Council, Enver Ferizaj.

German company Norma Group will start construction of an automotive parts factory in Subotica in November, 2010. The agreement on the construction of the new €11.2 million factory was signed by Mladjan Dinkic, Minister of Economy and Regional Development; John Stephenson, Director of Norma Group; and Sasa Vucinic, Mayor of Subotica. The government of Serbia has agreed to set aside €5,000 for each new job created, while the city of Subotica will provide free land to the company. The new factory will occupy an area of 12,000 m2, will employ 327 people, and its entire production will be exported.

European stock markets have fallen on news that Greece is likely to miss targets to cut its deficit.

Athens announced that the 2011 deficit is projected to be 8.5% of GDP, down from 10.5% in 2010 but short of the 7.6% target set by the EU and IMF.

The government, which on Sunday adopted its 2012 draft austerity budget, blamed the shortfall on deepening recession.

Businessmen from Chalkidiki, Greece have demonstrated interest for cooperation with Macedonian companies in the field of construction, food industry, agriculture, textile, real estate etc.

They attended Friday a business forum at the Economic Chamber of Macedonia, where they established direct communication with Macedonian companies.

Kuwait's Deputy Prime Minister and Foreign Minister Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah discussed with his Bulgarian counterpart Nickolay Mladenov ways to boost bilateral relations in all sectors between the two countries.

Sheikh Mohammad is accompanying His Highness the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah, who is representing His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah to the meetings of the UN General Assembly.

Greece has a 98 percent chance of defaulting on its debt in the next five years as Prime Minister George Papandreou fails to reassure investors his country can survive the euro-region crisis.

“Everyone’s pricing in a pretty near-term default and I think it’ll be a hard event,” said Peter Tchir, founder of hedge fund TF Market Advisors in New York. “Clearly this austerity plan is not working.”

It costs a record $5.8 million upfront and $100,000 annually to insure $10 million of Greece’s debt for five years using credit-default swaps, up from $5.5 million in advance on Sept. 9, according to CMA. Greek bonds plunged, sending the 10- year yield to 25 percent for the first time.

German Chancellor Angela Merkel said she won’t let Greece go into “uncontrolled insolvency” as politicians try to limit contagion to other euro members. Papandreou’s pledge to adhere to deficit targets that are conditions of the European Union and International Monetary Fund’s bailout were undermined by data showing his country’s budget gap widened 22 percent in the first eight months of the year.

European stocks tumbled 4 percent on Monday, with banks plumbing a more than two year low, as fears for the future of the euro zone bubbled up against a background of weak economic growth and threats to the banking sector.

The euro fell across the board, with peripheral euro zone debt concerns and political uncertainty in Germany prompting rises in both the dollar and safe-haven Swiss franc.

Indian Samvardhana Motherson Group (SMG) will lay Wednesday a cornerstone for construction of two plants at the Technological and Industrial Development Zone Skopje 1.

Earlier, a memorandum of understanding and agreements for lease of land and for allocating state aid with regard to the two investments are set to be signed with the company.

The memo of understanding will be signed by SMG chairman Vivek Chaand Sehgal and Viktor Mizo - director of the Macedonian Agency for Foreign Investments and Export Promotion.