Doc. 10599

21 June 2005

Europe’s interest to intensify economic relations with Belarus

Motion for a resolution

presented by Mrs Vésaité and others

The economic development of Belarus, its potential and transit facilities are largely undervalued by other European countries. Intensified economic relations between Belarus and the rest of Europe could positively influence political processes in the country and awake feelings for European integration in the Belarusian society. In long term perspective, the activities of European Union companies in Belarus would be beneficial for both sides.

      The country’s potential can be illustrated by the economic indicators. Being a transit country between Russia and the European Union and having a long tradition of industrial development, Belarus declared that in 2004 it had reached 6.4% GDP growth. However, structural economic problems, high inflation rate (17.4%) and unemployment and low wages require radical economic reforms in Belarus. Increased economic ties with European companies and implementation of basic market economy principles would encourage such a process.

      The Belarusian economy is strongly dependent on Russia. 57% of Belarusian exports and 68% of imports come to and from Russia. Belarus is absolutely dependent on Russian energy resources. Therefore, in order to minimise economic vulnerability and business risks in Belarus, foreign trade flows should be diversified, followed by diminishing dependency from one country (Russia). Economic isolation measures or an economic embargo for Belarus would mean only deeper dependence of the Belarusian economy from Russia.

      Business conditions in Belarus are complicated in many sectors, especially in the service sector. The influence of corruption, lack of transparency and interference of state institutions in business sector is extremely huge. Border crossing procedures, regulations of foreign investment and the licensing of service sector do not match modern requirements.

      Any action of support on the broad spectrum of bilateral and European Union co-operation and assistance, however, can only become intensive and sustainable provided Belarus will undertake substantial and credible measures for democratic reforms.

      Taking into account the specific political and economic situation in Belarus and having in mind the huge potential of this country, the Parliamentary Assembly recommends that the transformation processes of Belarusian economy should be stimulated, the co-operation in investment projects and programmes of regional development strengthened, education and environment maintained, thus strengthening the democratisation processes in Belarus.

Signed (see overleaf)

Signed ¹:

VĖSAITĖ, Birutė, Lithuania, SOC

AHLQVIST, Birgitta, Sweden, SOC

ALAY FERRER, Vicenç, Andorra, SOC

BARTUMEU CASSANY, Jaume, Andorra, SOC

ČEKUOLIS, Jonas, Lithuania, LDR

CILEVIČS, Boriss, Latvia, SOC

COX, Thomas, United Kingdom, SOC

CRYER, Ann, United Kingdom, SOC

de MELO, Maria Manuela, Portugal, SOC

ELO, Mikko, Finland, SOC

ETHERINGTON, Bill, United Kingdom, SOC

GRIFFITHS, Jane, United Kingdom, SOC

HÄGG, Carina, Sweden, SOC

JONAS, Klaus Werner, Germany, SOC

LLOYD, Tony, United Kingdom, SOC

McCAFFERTY, Chris, United Kingdom, SOC

MEALE, Alan, United Kingdom, SOC

OHLSSON, Carina, Sweden, SOC

OLIN, Kalevi, Finland, SOC

RAPSON, Syd, United Kingdom, SOC

SKARPHÉÐINSSON, Össur, Iceland, SOC

SMITH, Geraldine, United Kingdom, SOC

TOMLINSON, John, United Kingdom, SOC

TRITZ, Marianne, Germany, SOC

VIS, Rudolf, United Kingdom, SOC

WESTERLUND PANKE, Majléne, Sweden, SOC

¹        SOC: Socialist Group

      EPP/CD: Group of the European People’s Party

      LDR : Liberal, Democratic and Reformers’ Group

      EDG: European Democratic Group

      UEL: Group of the Unified European Left

      NR: not registered in a group