Head of the delegation of the European Commission in Damascus
Syria-European Union, Economics, 4/24/2000

The head of the delegation of the European Commission in Damascus, Marc Pierini, gave a lecture on April 19 at Goethe Institute in Damascus under the title "Perspectives for a Euro-Syrian partnership."

In his lecture Pierini said that the general framework of the EU-Mediterranean partnership was created in 1995, when the EU decided to give special priority to this region to cover all issues of common interest: political, security, economic, financial, social, human, and cultural.

He stated that the Euro-Mediterranean partnership gives rise to meetings at ministerial and Euromed Heritage, Euromed Audiovisual, etc.

He stated that this logic has been translated into meetings between the EU and individual Mediterranean states, such as Syria.

On the relationship between the EU and Syria, Pierini said, "I am here for discussing the association agreement with Syria, the same as we had with Morocco," and to provide support for economic reforms well in advance of the entry into force of the association agreement. He said, "We want to prepare the country whether for bilateral or multilateral talks," adding that the association agreement has been discussed at the highest level in Syria.

On the EU economic support for Syria, Pierini said that for Europe, Syria is a small country, adding that the Syrian market is only 0.3% of EU exports and that Europe is only interested in economic and social progress in Syria.

He said that the EU aims to facilitate Syrian economic policies by bringing them to international standards, by free trade and elimination of custom tariffs in both directions, adding that this will permit more Syrian exports in the EU and provide an incentive to competitiveness for Syrian manufacturers.

He also indicated that private investment, both national and foreign, will also find a stronger incentive to increase and will bring technology and know-how to Syria and connect Syrian industries to European industries. He indicated in this regard Tunisia's experience in building up electricity generation station, adding that six or seven years ago there was one such industry in Tunisia, now we have six plants.

"And this is also true in Morocco and Egypt," he said.

As for the implied reforms in Syria, Pierini said that EU economic support has strong implications for Syria: It means that economic reforms are necessary to bring Syria closer to the new economic realities of the world. He added that among the necessary reforms to be implied in Syria are fiscal reforms, modernization of the financial sector (laws and institutions), modernization and simplification of foreign trade, and improving the environment for domestic and foreign investment, including technical aspects such as intellectual property, right of establishment and joining the WTO.

He continued that economic reforms have a price: restructuring the inefficient industries, eliminating unsound economic practices, introducing more transparency and equity in economic decisions. He said that these reforms are a function of the collective interests of Syria, adding that the EU believes that sound economic policies and practices are a key factor for the economic, social and political future of Syria.

Asking the question "Can Syrian do it?" Pierini said that that there will be a cost for that. "We had gone through for ourselves. We know it from life (Germany, and Portugal). We know it takes vision and will ," he commented.

He elaborated that when there has been both vision and will, reform programs have worked very well. The main example is the Syrian- European Business Center. He added that this SEBC has helped many business individually. It has helped entire sectors such as the brocade and aghabani producers. It is helping the whole business community with the publication of the Syrian Export Directory, or the Guide to Trade Exhibitions. He said that the "lesson is, where there is a decision the trade sector will work."

On what the EU's role is in all these Pierini said that the EU has offered Syria to implement a number of programs in support of economic reforms. He added that only a few of these programs have been launched. Currently, some 130 million euros in grants are committed by the EU and still unused by Syria, he said, adding that this is a unique situation.

He said that the stakes of economic reforms in Syria are very high. They condition no less than the economic growth, the social progress and balance of this country.

He said that the EU support and methods of cooperation can be highly useful in handling some of the most difficult issues in the peace process. The EU's own history provides useful examples of economic cooperation in support of peace consolidation.

Replying to a question, Pierini said that it is true that Syria is of significant political importance, but no country can survive without economics. He indicated in this regard Egypt's experience saying, "If you go to Cairo you see a plant for Mercedes." He added that the EU has made all necessary steps to use the 130 million euros which are unused in 10 projects in Syria, saying that six of these projects can start immediately. He stated that projects are still blocked "because the Syrian government did not take necessary measures to this effect."

He said that in a few days, we will celebrate the 50th anniversary of the launching of the first step which led to the European community and then to the European Union. The spring of 1950, he added was only five years away from 75 years of almost uninterrupted conflicts in Europe with three years and millions of human lives lost. He continued that 50 years later the EU is now reaching the stage where it is achieving a single currency and is building a joint military force.

Previous Stories:
  Al-Shara, Moratinos discuss Middle East peace efforts   (4/21/2000)
  EU-Syria seminar on vocational education and training for economic development   (2/2/2000)
  Seminar on EU- Syrian cooperation held on January 22 in Damascus   (1/24/2000)

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