On Tuesday, October 31 the-year-to-date, Romanian President Traian Basescu has opened, through the videoconference system, the works of the International Conference on “The Economic Development and Security in the Black Sea Region”, organized in Washington by the US Center for International and Strategic Studies and the Romanian Chamber of Commerce and Industry.

Here is the address of the President to the Conference:

“Ladies and Gentlemen ,
It is a distinct pleasure for me to address to you in the video-conference on “The Economic Development and Security in the Black Sea Region”.

This important and topical conference is an exceptional opportunity for us and I would like to express my gratitude to its organizers: the US Center for International and Strategic Studies and the Romanian Chamber of Commerce and Industry for having invited me to address in the opening of this Forum.

We are aware that, within the Black Sea Region, whether we refer to the neighboring countries or to the extended region, there is an increasing number of issues, whose settlement requires exceptional efforts. The opportunities are, also, very numerous and it is our duty to discuss them, to highlight them and contribute to any solution that may help putting them into practice with a view to turning the region into a zone of sovereign, consolidated countries, with functional, sustainable market economies.
While the extended region of the Black Sea was not present on the agenda of Western strategic studies, the new international framework radically changes this situation and the current Conference stresses upon the fact that the importance of the Black Sea is now the focus of the political, economic and academic circles.

Cradle of civilizations and scene of many conflicts during its history, this region enters a new era, as it becomes indispensable to the Euro-Atlantic security, given its geo-strategic position.

It is true that the Black Sea Region is a deceiving geo-political space. Currently, the strong discrepancies among the neighboring countries hinder it from turning into a collective security area, similar to the Atlantic one, or, at least into a cooperative security area, following the Mediterranean or Baltic pattern.

If, on the one hand, we admit the necessity of the Pontic states European identity, on the other hand we need to develop a common strategy of the Euro-Atlantic states for the extended Black Sea Region.

The threaths in the extended Black Sea Region fall into 3 categories: old threats, such as the frozen conflicts, violation of states sovereignty and the presence of foreign troops; recent threats (human beings, drugs and weapons trafficking, international terrorism) and, last but not least, the newest threats such as the export of non-democratic practices.

As a NATO member and given its EU upcoming accession on January 1, 2007 , Romania is bound to participate in preventing these threats.

The Eastern Europe democratization trend undoubtedly had a positive influence on the ex-Soviet area around the Black Sea .

The Rose Revolution in Georgia, the Orange Revolution in Ukraine, the Kishinev redirecting towards EU accession are excellent positive signals and Romania has the duty to actively involve itself in consolidating this trend and preventing the rebirth of totalitarianism in the region.
Moreover, it is necessary to make strong efforts to strengthen these regimes – setting up and implementing new structures. The US should develop a common strategy with the EU in order to prevent the rebirth of authoritarian regimes.

We keep discussing about the “European Union enlargement” or about the “NATO enlargement”. Series of analysts try to find the optimal solution: “which enlargement should be the first? ”. I believe we are forgetting the essence. Both enlargements represent the expansion of democracy. We should thus talk about “THE EXPANSION OF DEMOCRACY” towards these areas.

Romania fully understands the difficulties of the institutional and economic reconstruction process. For this reason, our country is willing to share its own experience in consolidating democracy.

We are committed to having a strong contribution to the creation of a secure and stable climate in the Black Sea Region.

Against this background, Romania has launched in Bucharest , two years ago, the Black Sea Border Security Initiative. Moreover, Romania hosts the South European Cooperation Initiative. These are regional cooperation models, in terms of concerted practice and legal framework harmonization.

The main mission of the neighboring countries must be to bring the Black Sea in Europe again, after centuries of oblivion. If given back to Europe , the Black Sea can and will become a safe and prosperous area.

Involving global super powers as the US and EU is the only solution for placing this region in the pattern of real stability.

The democratization process in Black Sea neighboring countries can only evolve within a stable, fertile environment of dialogue and cooperation, where all sensitive issues, which were not discussed before by institutional organizations, can be addressed.

The Black Sea Forum for Dialogue and Partnership, launched by Romania in June 2006, has the mission to create the framework for an open, flexible political dialogue. This dialogue aims at discussing the identity of the Black Sea Region, terrorism and organized crime issues, our common interests, objectives and projects for the future and, especially, the means and possibilities that we have to implement them.

This initiative adds to the existing ones, such as GUAM and the Organization for Black Sea Economic Cooperation, which Romania fully supports.

The Black Sea Forum aims at facilitating the development of a favorable context for implementing the political decisions of the Organization for Black Sea Economic Cooperation.

Ladies and Gentlemen ,
Regions that are unstable from the point of view of security do not attract investments and cannot ensure their economic development by themselves. Moreover, I take the liberty of stating that any economic backlash or standstill in emerging democracies favors anti-democratic developments.

The relation between security and economic development is bilateral: they support and, at the same time, constrain one another.

Developments in the Black Sea Region are, firstly, the responsibility of the states in the region. They are acquainted with their inherited issues, difficulties and interests, but they also know the region's dynamic development capabilities.

Currently, the Black Sea Region is not an economic alliance, but we can establish forms of cooperation and support for implementing projects of connecting the neighboring states' potential and resources, for our people's development.

The Black Sea links the Caspian Sea energy corridors to the West European ones and, if secured, it is able to ensure the region's prosperity.

Currently, the oil and natural gas resources are considerable, exceeding 5% of the global ones. Developing the capacity to exploit these resources will require improving and securing the existing, old infrastructure.

Diversifying the gas and oil pipes is also important for regional security and development.
50% of EU energy currently comes from the extended Black Sea Region, and the perspective is for that figure to increase up to 70% in the following ten years.

Should the oil from the region continue to be transported exclusively through Russia , this country will have a more and more important say in EU policy.

The evolution of the economic space is interrelated to the evolution of the political space and it is important for us to remember that promoting reforms in the entire Black Sea Region, is hindered by Russia 's energy monopoly over the region. This is more worrisome since there is an obvious backlash in the liberalization and privatization of the Russian huge energy companies (the Yukos case is relevant for this trend).

Considering these issues, the US should include the Euro-Asian energy strategy in their transatlantic dialogue.
Romania is actively searching for cooperation opportunities with the Black Sea countries, in order to develop economic projects, able to ensure the sustainable development of the region.

We intend to intensify regional cooperation within the Organization for Black Sea Economic Cooperation, to promote free trade and to facilitate transportation in the region.

Developing alternative oil and gas transportation routes from the Caspian area through the Black Sea Region and to the European Union becomes of a crucial importance. For both democratic and economic development, as well as for supplying energy to Europe , it is essential to make the most of the Black Sea Region's potential as a transit zone.
To this end, Romania promotes two transportation projects for hydrocarbon: the Constanta - Trieste pipeline and the Nabucco project.

The Constanta port is currently one of Romania 's major advantages. Not only is it Romania 's largest port, but it is also the Black Sea 's largest port and it has a double function: of seaport and port at the Danube , at the end point of the Danube-Black Sea Channel.

Once the fourth stage of the port's development is completed, it will become Europe 's second largest port after Rotterdam . Constanta also has special terminals for crude oil (with an annual capacity of 24 million tons) and for oil products (annual capacity - 12 million tons). It is important to make full use of these opportunities, by establishing a connection to the transportation routes from the Caspian Sea .

Ladies and Gentlemen ,
Finding new routes for the transportation of oil and gas in the Caspian Sea region is a must for its economic development and would meet the high consumption needs, safeguarding the energy security of the European countries.

Using the transit capacity of the Black Sea Region is a pragmatic demarche, essential to its economic and democratic development and for the energy supply to the Western and Southern Europe .

Although the EU policy concerning the extended Black Sea Region was issued on a later date, the growth of the public awareness and interest in the democratic development of the area is obvious.

I consider that, as of January 1, 2007 , Romania and Bulgaria will need to face the following challenge: they will need to continue advocating for an attention focus on the Black Sea Region and convince their new partners in the Union that a partnership with countries in this region is necessary, useful and opportune.

The European Union has developed such cooperation strategies for the Southern and Northern regions. We need to have a similar approach for the East, namely for the Black Sea and Caspian Sea region countries.

The European Union has created a mechanism in view of achieving these objectives: “the European Neighborhood Policy”. Romania intends to use this mechanism in order to support, in the European Union framework, the democratic evolution of Moldova , Ukraine , Georgia , Azerbaijan and Armenia .

A special attention is paid to Romania 's strategic partnership with US. Against this background, the “Black Sea German Marshall Fund” is an effective mechanism in view of achieving the previously mentioned objectives.

Ladies and Gentlemen ,
In order to materialize the projects that we consider as timely and viable, financial support is needed.
Depending on the available funding, Romania and the other countries in the region shall be able to co-participate or fully support such projects.

It is equally important to manage to get financial support for investments in the Black Sea Region.

The investments and the financial resources concentrate in the areas with a high potential of development. The countries in the Black Sea Region do have such a potential and they also have the political will to use it.

Currently our main objective is to ensure the development and interconnection of the infrastructures belonging to the countries in the Black Sea Region, as well as ensuring the interconnection between our national networks and the connection with the European Union.

Among the projects that have been proposed and could be implemented in the region, those in the energy field are the most numerous and important. The energy security of the EU is nowadays a pressing and topical issue.

It is a known fact that now, and in the future, Europe faces an energy deficit and the new transportation routes are meant to eliminate this deficit and to meet the growing consumption needs.

In this context, it is paradoxical that we are so close to huge energy resources but the access to them is still very limited. Considering its existing and developing infrastructure, Romania can participate to the goods and energy transit towards the EU.

Ladies and Gentlemen,
Romania has the will and determination to use its resources and expertise in terms of EU and NATO accession process in order to assist other countries in the Black Sea Region, with a view to supporting them in their process of internal democratic reforming and of strengthening their ties with the Euro-Atlantic structures.

Romania wants the Black Sea Region to be stable, democratic and closely connected to the European and Euro-Atlantic structures.

We intend to provide arguments and support a more active involvement of the EU and NATO bodies in the region.

Organizing the Black Sea Forum for Dialogue and Partnership, Romania proved its determination to become an advocate of the identity, security and economic development of the Black Sea Region. The political consensus reached during the Forum regards the cooperation, joint actions, finding and implementing the best solutions.

To conclude, I would like to reiterate the interrelation between the Black Sea Region, on the one hand, and the Western Europe , on the other hand. Europe imports energy from the extended Black Sea Region and it has the responsibility to export stability and security, by implementing specific actions. The EU security is closely related to its capacity to protect the Black Sea ; to this end, Romania is a reliable partner, able to provide an inside perspective on this region.

This demarche can only become more relevant with the joint participation of major international actors, such as EU and NATO.

The will to become part of EU and NATO had determined deep changes for all the East-European countries. Romania is ready to share its relevant expertise in this field.

The assessment of the existing cooperation within the Black Sea Region highlights the need to strengthen it and to change it from a foreign policy tool into an economic cooperation and integration instrument.

Thank you for your presence and for your kind attention. I am confident that the debates will confirm the interest for this region, leading to concrete and effective projects within the extended Black Sea Region.

Thank you! “

The Department for Public Communication of the Presidential Administration
31 Octomber 2006