Neither the Secretary for European Affairs of the Ministry of Foreign Affairs, Ramón de Miguel, nor the Secretary for Trade, Juan Costa, want to let Spain's Presidency of the European Union pass them by and plan to soon present the main lines of the Government's project to promote Spanish investments in Central and Eastern Europe (PECOS).
This plan is similar to the existing ones on Asia - already operational - and Sub-Saharan Africa, which is in its final drafting phase.
The countries targeted by the Plan will soon be considered community partners, enjoying all the advantages of the common European scenario.
It is very important to highlight that during the current Spanish Presidency of the EU, priority chapters for Spain, such as agriculture and regional aid, will be closed.
The Government's project will have a strong commercial component and will revolve around the basic idea of recovering lost ground compared to other European partners, such as Austria, Germany or the Netherlands.
Most Spanish investments have gone to countries like Argentina, Brazil, and Mexico, a region where Spain holds the world's leading position, even ahead of the United States. "We're putting all our eggs in one basket," says Santiago Pardo, Director of Arthur Andersen in Slovakia.
The Spanish executive emphasizes that "these countries will receive the same aid that Spain once enjoyed, thanks in part to which Spain is where it is today. Furthermore," he points out, "their workforce is highly skilled, with excellent language proficiency. Their only shortcoming is management expertise. And that's where Spaniards can contribute: with the know-how acquired through industrial restructuring and the knowledge that has modernized the Spanish economy."
Currently, the main business opportunities lie in the service sector, particularly in infrastructure, and in agriculture, as these sectors demand Mediterranean goods to complement their production. Exports to the Central and Eastern European countries (CEECOs) have increased considerably in the last two years, rising from 320.000 billion pesetas in 1998—2% of total exports—to 489.000 billion pesetas in 2000. Investment has followed a similar trend, albeit more significantly: from 11.000 billion pesetas in 1998—0,34% of total investment—to 207.000 billion pesetas in 2000.
Another advantage of establishing a presence in this area is the creation of a logistics center that allows for the distribution of production to Eastern European countries, such as Russia, which offer tremendous development potential, practically untapped for the Spanish investor.
The plan outlines a whole series of sectoral objectives and the goals pursued by each ministry, as well as the instruments it will have at its disposal, such as the increase in institutional contacts or the opening of embassies in Estonia, Lithuania, Latvia, Cyprus and Malta) or, where appropriate, the strengthening of commercial offices and cultural centers, since Spanish already competes as a second or third foreign language with French and German.
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