OMRI DAILY DIGEST
  4 MAY 1995
  
   EU COMMISSION ISSUES WHITE PAPER ON EAST EUROPEAN MEMBERSHIP. The
   European Union Commission on 3 May issued a 300-page "white paper"
   delineating extensive legislative changes necessary for East European
   countries to join the EU, international agencies reported the same
   day. The report must still be approved by the EU summit in Cannes
   next month. EU Commissioner for Foreign Affairs Hans van den Broek
   stressed that the white paper was neither legally binding nor a
   guarantee of EU membership. But he added that its implementation
   "will be an important factor when the time comes to decide how
   closely aligned [the East European countries] are to us and when to
   begin [membership] negotiations," he said. The plan applies to the
   six East European countries that already have association
   agreements--Bulgaria, the Czech Republic, Hungary, Poland, Romania,
   and Slovakia--as well as the three Baltic states, which are expected
   to sign such agreements at the Cannes summit. It includes provisions
   on competition and social and environmental standards. Van den Broek
   indicated that East European countries will have to fulfill most
   conditions before they can begin negotiations on membership. --
   Michael Mihalka, OMRI, Inc.
   
   HUNGARY COMPLAINS ABOUT IMF. Hungarian Finance Minister Lajos Bokros
   on 3 May complained that the IMF and other international creditors
   are not providing the Hungarian government with enough support for
   planned economic reforms, Western news agencies report. Bokros,
   addressing a meeting in Budapest of the U.S. Chamber of Commerce,
   said "some of the foreign institutions, such as the IMF, are not
   supportive enough. They say more and more measures should be
   introduced within a shorter period of time." The IMF and the World
   Bank have made new loans to Hungary conditional on the successful
   implementation of the country's austerity package. Announced in
   March, the package includes sharp cuts in social welfare benefits,
   public sector wage caps, and redundancies among public sector
   employees. -- Edith Oltay, OMRI, Inc.


   [As of 1200 CET]
   
   Compiled by Victor Gomez and Jan Cleave
   
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Thursday, 4 May 1995
Volume 2, Issue 86

REGIONAL NEWS
-------------

**EU LAYS DOWN RULES FOR HOPEFULS**
  The European Commission yesterday approved the political
  section of a White Paper designed to help Central and Eastern
  European countries prepare for eventual membership in the
  European Union.  The paper shows the former communist bloc
  countries what they need to do to get in line with the Union's
  internal market.  But, in announcing the approval of the White
  Paper, EU External Affairs Commissioner Hans van den Broek
  stressed that it doesn't lay down the law, adding that
  countries have to "set their own priorities and make their own
  plans.  The White Paper is specifically directed at Poland,
  Hungary, the Czech republic, Slovakia, Romania and Bulgaria,
  the six countries with association agreements with the EU. But
  van den Broek said it'll also apply to Latvia, Lithuania and
  Estonia once they've signed their association agreements. The
  White Paper will also be extended to Slovenia when
  negotiations on its association agreement are sucessfully
  concluded.  Van den Broek stressed that while implementation
  of the White Paper by the easterners would help their bids for
  membership, it wouldn't in itself be sufficient.  Van den
  Broek said Central and East European countries also need to
  align themselves with the internal EU market to reinforce
  economic reform and industrial restructuring and to stimulate
  trade and commerce.  The White Paper lists key legislative
  measures that need to be taken by the easterners and
  prioritizes them.  It also describes the administrative and
  technical structures needed to ensure the legislation is
  implemented and enforced, and outlines how EU technical
  assistance can be best used.



BUSINESS NEWS
-------------

**HUNGARY HAS HURDLES TO CLEAR TOWARD ECONOMIC REFORM**
  Hungarian Finance Minister Lajos Bokros said the International
  Monetary Fund and other international creditors aren't giving
  the government enough backing for its austerity program.  The
  program has run up against  opposition from the public. Bokros
  told a meeting of the American Chamber of Commerce that "the
  government is caught in the middle and cannot marshal enough
  support".  The IMF and the World Bank have made new lending
  programs to Hungary conditional on successful implementation
  of the austerity package.  The program includes sharp cuts in
  social welfare benefits, public sector wage caps and layoffs
  of public employees. It's provoked protests not only from
  opposition parties but also from within the ruling Socialist
  Party and  powerful trade unions.  Prime Minister Gyula Horn
  said last month he was confident the majority of the Socialist
  party, which together with the liberal Alliance of Free
  Democrats controls some 72 percent of Parliament, would
  support the package. Parliament will vote on the measures
  later this month. However, the government, employers and
  unions were unable to reach agreement in discussions on
  Tuesday aimed at bridging differences on the package.


**HUNGARY'S BANK HEAD LIKES IMPORT-EXPORT NUMBERS**
  National Bank of Hungary governor Gyorgy Suranyi said the
  country's export growth outpaced increases in imports in the
  first four months of 1995.  Suranyi told business people and
  reporters yesterday that the figures right now are
  preliminary, but the trend is clear.  Suranyi said the results
  from the first quarter make it likely Hungary will achieve its
  target of a 15-20 percent rise in exports and a 5 percent
  increase in imports for the whole year.  Hungary is weighed
  down by net debt equivalent to half its annual gross domestic
  product, or  GDP, and debt servicing charges representing some
  4 percent of GDP.  Suranyi said parts of Hungary's proposed
  austerity plan designed to help exporters will cut the
  country's total borrowing needs next year to about $5.5
  billion from almost $8 billion in 1995.


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date=5/3/95
type=correspondent report
number=2-177880
title=E-U/Eastern Europe (l-only)
byline=John Fraser
dateline= Brussels
content=
voiced at:

Intro:  The European Commission has agreed on a package of
legislation and administrative structures which Eastern European
states will need to implement in preparing for their membership
in the European Union.  The document, which is called a White
Paper, will be presented to E-U leaders for final approval at
their summit in cannes next month.  John Fraser reports from
Brussels.

Text:  The existing European Union members have implemented a
free trade area, known as the Internal Market, in which there is
free movement of people, goods, capital and services.  The aim of
the new White Paper is to allow the countries of Central  and
Eastern Europe to lock in to this Internal Market.  If they adopt
all the legislation, it will be an important part of  preparing
for full membership in the European Union.

The Brussels commissioner responsible for the Internal Market,
Mario Monti, says the White Paper is a guide for the countries of
Eastern Europe, but is  not  being forced on them.  And he says
this is a helpful exercise for both sides.

                      /// Monti act ///

         I would like to stress that one of things that the White
         Paper is  not,  is an obstacle.  It is  not an obstacle;
         it is a guide.  It is meant to be a tool.  I hope a very
         useful one.

                         /// End act ///

Commissioner Monti adds that the White Paper contains many laws
-- he has  not  yet counted how many -- but it also contains a
legislative and judicial structure which the countries of Eastern
Europe will need to adopt before they can implement the
legislation to create  the Internal Market.

                    /// 2Nd Monti act ///

         Laws are important, directives are important, but we try
         to put at least as much emphasis on adminstrative
         structures as we do on laws.  We think it would be
         highly dangerous and  not  conducive to a real
         approximation to the Internal Market if inadequate
         attention were given to the technical, administrative --
         even judiciary structures -- that are needed.

                         /// End act ///

The countries at which the White Paper is aimed include six
Central European states -- Poland, Hungary, the Czech Republic,
Slovakia, Bulgaria and Romania.  The three Baltic states are also
included, as is Slovenia.  Albania, too, may soon become involved
in the exercise.

However, E-U commissioners have stressed that the contents of the
White Paper alone will  not  be sufficient to prepare these
countries for membership of the European Union.  Additional
economic reforms, and a whole raft of other legislation, will
also be required. The White Paper with its recommendations is the
start of a long process -- and  not  the end. (Signed)

neb/jf/skh/mmk

03-May-95 9:53 am edt (1353 utc)
nnnn

source: Voice of America

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