Europe joins the fray. German ambassador extraordinary and plenipotentiary to Armenia Hans-Wolf Bartels gave an interview to Noyan-Tapan, urging cooperation between Armenia and Azerbaijan. Apparently Germany is the second biggest investor in Armenia after the US.
Text of interview:
(Correspondent) How do you assess the domestic political situation and the human rights situation in Armenia?
(Bartels) As for the current developments, I hope that the opposition and government will be able to return to a peaceful dialogue, for state and political issues should be debated peacefully. Important issues such as freedom of speech and movement can be included into the agenda.
(Passage omitted: Armenian parliament adopted laws in this regard)
(Correspondent) Germany comes second after the USA in terms of investment in Armenia. What can you say about the current level of Armenian-German economic relations and what prospects can you see in the development of bilateral economic relations?
(Bartels) Yes, German is the second biggest investor in Armenia after the USA. It must also be noted that the overall assistance provided by EU member countries makes over half of the funds received by Armenia. Germany is carrying out effective projects here such as the Armenian-German Fund which issues loans to small and medium-sized businesses through local banks. A total of 16m euros have been allocated within the framework of the project, and this figure is increasing.
Unfortunately, German investment is not so big. A representative office of the German Lycos information technologies company has been operating in Armenia for one year already. The office employs 60-70 people and is planning to expand. I think it will be a good example for other German investors.
(Correspondent) What hinders the inflow of German investment into Armenia - laws or small market?
(Bartels) Both. Apart from this, it is difficult to export goods from Armenia since transport costs through Georgia are high, and the route through Iran is long. There are always problems with customs and taxes, these are practical problems, and therefore, conditions for investment are not quite favourable. Interestingly, the Armenian diaspora is not investing much in Armenia either. Reasons are the same, I understand.
(Correspondent) How important is the South Caucasus region from the point of view of European security? The countries of the region are members of the Council of Europe and it cannot be ruled out that the three countries will be included into the Wider Europe - New Neighbourhood initiative.
(Bartels) I think the region is of great importance to European security. If something dangerous happens here, this will have a direct impact on European security, and therefore much attention is being paid to the South Caucasus. The appointment of a special representative of the EU corroborates this policy. I do not doubt that the region will be included into the Wider Europe - New Neighbourhood initiative.
The settlement of the Karabakh conflict is of great importance to Armenia, and not only from the point of view of regional security. Closed borders and the frozen, but still existing, conflict hinders the country's development. We hope very much that this problem will be resolved in the near future.
I do not see good prospects for the region without regional cooperation, which Armenia and Azerbaijan do not have. The Karabakh conflict is not the only one here, there are very complicated conflicts in Georgia.
It must be noted that we also had bitter conflicts back in Europe and believed that the French and the German were permanent enemies. But thank God, we managed to settle these conflicts and establish good neighbourly relations. In the future, I hope, this will be possible for Armenia and Azerbaijan as well.
Posted by Matt on April 20, 2004
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