RESOLUTION A3-0162/92

Resolution on investments in countries of Central and Eastern Europe and the guarantees for those investments

The European Parliament,

-having regard to the motion for a resolution by Mr Siso Cruellas on the drawing up of an agreement for the reciprocal protection of investment between the European Community and the countries of Eastern Europe (B3-0453/89),

-having regard to the political changes in Central and Eastern Europe since autumn 1989,

-having regard to the rapid developments in the former USSR, particularly since summer 1991,

-having regard to the EC investment programmes, PHARE, which are designed to aid the development process in the countries of Central and Eastern Europe,

-having regard to the cooperation agreements concluded with Poland, Hungary and Czechoslovakia,

-having regard to the growing array of economic and commercial links between the EEC and the countries of Central and Eastern Europe,

-having regard to its many reports on all aspects of rapprochement between the countries of Central and Eastern Europe and the EC,

-having regard to the report of the Committee on External Economic Relations (A3-0162/92),

A.whereas these countries cannot improve their economic conditions unaided;

B.noting the determination of Western countries to contribute to the development of Central and Eastern Europe, but also the inadequacy of the resources currently being marshalled for that purpose,

C.recognizing the need for a financial impetus to foster the market economy in these countries,

D.noting, also, that management and administrative practices and procedures in these countries hamper development,

E.whereas these countries have a sizeable economic and human potential which should ultimately be turned into effective performance,

F.recognizing the need for long-term aid designed to enable these countries gradually to take responsibility for their own development,

1.Takes the view that the Community should assist these countries in implementing an investment promotion and management policy, in close cooperation with the national economic and other authorities, business representatives and G24;

2.Takes the view that - if they have not already done so - all Member States should conclude investment protection agreements with the countries of Central and Eastern Europe, in order to promote investments and guarantee their protection for the length of time agreed;

3.Takes the view likewise that, in order to simplify matters, investment protection agreements concluded by Member States with the countries of Central and Eastern Europe must as far as possible have the same content and, if possible, be based on a standard Community text;

4.Takes the view that the Community should coordinate the work of institutions which guarantee or facilitate credit, such as COFACE in France, the Export Credit Guarantee Department in the United Kingdom, and the AKA in Germany;

5.Proposes the establishment of an investment observatory which would have the task of proposing incentive, guarantee and protection mechanisms covering Community investment in third countries and, more particularly, in Central and Eastern Europe, and of analysing the inadequacies of their economic, judicial and tax systems where competition and the market economy are concerned;

6.Takes the view that this observatory should be linked with the multilateral monitoring committee;

7.Considers that this observatory should submit an annual report to Parliament's Committee on External Economic Relations on the implementation and progress of investment in the countries of Central and Eastern Europe, which would be debated in Parliament;

8.Calls, therefore, on the Commission, the Member States and all public or private bodies able to contribute, to develop networks for the exchange of legal, commercial, economic and fiscal information between the EEC and the countries of Central and Eastern Europe, with a view to setting up a market economy;

9.Calls for the EBRD to be given a key role in implementing this policy, and urges it to adapt its operational and funding arrangements accordingly;

10.Calls for closer cooperation among SMUs/SMIs in the Community and between Community SMUs/SMIs and their counterparts in Central and Eastern Europe;

11.Considers that this closer cooperation should be brought about by coordinating in an appropriate manner the work carried out by the investment observatory, and under the various Community initiatives, in particular EUROTECHNET;

12.Considers that the observatory should be able to draw on a network of correspondents in each of the countries of Central and Eastern Europe and the new republics of the former USSR; proposes the setting up of economic observatories and high-level research institutions specializing in the economic development and laws of the countries of Central and Eastern Europe, able to provide the Community institutions and economic operators with useful information on investment in these countries, thus encouraging the establishment of undertakings and investment in these countries;

13.Urges that the aid to the various states and the various newly-independent republics of the former USSR should not result in a fragmentation or dilution of investment detrimental to the collective interests of the EC and the recipient countries;

14.Takes the view that the successful implementation of an investment policy will make for economic development and political stability in the countries of Central and Eastern Europe and the republics of the former USSR;

15.Takes the view that the G7 decisions will contribute to the success of an economic modernization policy in these countries, and hopes to see a significant increase in financial commitments by the United States and Japan in relation to these countries;

16.Considers that an investment policy can succeed only if the leaders and citizens of these countries make clear economic and legal choices and are able to marshal their efforts to put them into practice;

17.Instructs its President to forward this resolution to the Council, the Commission, the Member States, and the governments of the countries of Central and Eastern Europe.