ABOUT THE BALKANS

The changes in the Balkans, also known as South Eastern Europe (SEE), are remarkable. The countries n the region - Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Former Yugoslav Republic of Macedonia (FYROM), Greece, Montenegro, Romania, Serbia, Slovenia and Turkey - are the direct route between Western Europe and Asia.

GDP is growing rapidly in most Balkan countries, reaching or exceeding 5 percent in 2006 with expectations for continued success in 2007. Corporate profit tax rates are already as low as 10 percent in some countries and are being lowered in others. Investment incentives have been introduced in all countries in order to welcome more foreign investment. Most are either already members of the European Union or heading towards that goal.

The Balkan marketplace of 130 million people offers endless opportunities to source and supply products and services. Free trade agreements, signed between most of the Balkan countries in addition to their bilateral deals with states beyond the Balkans, offer further access to an even greater market. In some countries, the effective marketplace exceeds 700 million people due to the free trade deals: Serbia has a free trade agreement with Russia with a market of over 140 million people. F.Y.R.O.M. has a free trade agreement with Ukraine to reach almost 50 million people.

Although the political environment may seem not entirely settled in some of the countries, business investments, mergers and acquisitions are continuing at a rapid pace.

Take advantage of the Balkans:

• as a new frontier with a vast, diverse population whose purchasing power is increasing;
• as a free trade area with mushrooming industrial zones; - as a virtually limitless source of skilled and inexpensive labor, including workforce that has strong mathematical and IT skills;
• as an increasingly popular tourist destination where money can be made through property development and many other lucrative investments;
• as the territory where new products, services and methods are sought-after while competition remains relatively low;
• and seize the unique moment of ongoing privatizations with governments selling off various assets;
• as the territory where new products, services and methods are sought-after while competition remains relatively low;
• and seize the unique moment of ongoing privatizations with governments selling off various assets.