The Balkan Chronicle

Bulgaria, citing finances, said this week it is following through on threats to pull out of a long-planned oil pipeline from the Black Sea to Greece.

Bulgarian Finance Minister Simeon Djankov announced Wednesday the government of Prime Minister Boyko Borisov is dropping out of the Burgas-Alexandroupolis oil pipeline, which has been the target of persistent opposition from environmentalists fearful of a Black Sea oil spill.

Bosnia's central bank said Thursday it will switch the peg of its convertible mark to another "stable" foreign currency in case the euro collapses, but hopes there won't be a need.

"In case of a non-desirable scenario, regarding the model of Bosnia's monetary policy, we would seek a possibility to index the local currency to another stable foreign currency," the central bank's press office said in a statement.

It added that the "stability, the level of economic relations and foreign exchange with that country would be crucial" for the decision on a possible new currency.

The Bosnian agrofood industry risks collapse with the July 1 2013 entrance into the European Union of Croatia, which tomorrow will be signing the EU membership treaty. This was stated in an analysis by the Bosnian Chamber of Commerce, which said that local enterprises - and especially agrofood ones - will lose their most important foreign market since they will no longer be able to export to the nearby country under current conditions, and especially not milk, meat and other products of an animal origin.

Amid mounting Greek fears that Europe's escalating debt crisis could derail efforts to negotiate a second bailout for the debt stricken nation, Athens' interim coalition government has speeded up the process to pass the budget which aims to reduce the deficit from more than 9% this year to 6.7% by the end of 2012 through a combination of spending cuts, tax increases and public sector job losses. Addressing the 300-member chamber, Antonis Samaras, the conservative New Democracy leader, said with Greece heading for a fifth year of recession it was "essential" that the priority was now put on kick-starting the economy through jobs and growth

The Balkans are characterised by fragmented territories and heterogeneous areas – cities that look towards Europe contrast with a forgotten rural countryside, often the site of stories about marginalisation, migration, communities left to their own devices and lost opportunities.

Rural is still a synonym of backwardness, poverty, and exclusive dependence on the agricultural sector; far from the romantic vision rural areas enjoy in many European countries. Yet there are some dissident voices that tell of success stories and some initiatives that enable a glimpse towards the future to those long forgotten areas, too far from the political centres that count.

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.

The global financial crisis is not unknown. The Pakistan Writer's Forum invited reputed economist Dr. M. Umer Chapra to speak on this subject on Feb. 26 at Shaheen Restaurant, Jeddah.

Chapra, author of several books, served for over 35 years as senior economic advisor at the Saudi Arabian Monetary Agency (SAMA) and has been working for the Islamic Reserach and Training Institute of the Islamic Development Bank, Jeddah, since 1999. He is also a recipient of the King Faisal Award for his contribution to Islamic economics and finance.

As shockwaves from the eurozone crisis radiate outwards, Hungary has felt the full force of their impact.

Maybe. Or maybe not?

Budapest has endured three difficult bond auctions in a week, yields have shot up, and the forint has tumbled to record lows. That, in turn, is fuelling inflation and increasing the pain for hundreds of thousands of Hungarians who took out mortgages in foreign currencies when the forint was much

Fitch and Standard & Poor's on Friday shifted their credit outlook for Hungary, rated on the lowest investment grade, to negative – making a downgrade to junk status appear only a matter of time.