Generaland regionalstatistics

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Pocketbook on Candidate

Countriesand Western Balkan Countries

A great deal of additional information on the European Union is available on the Internet.It can be accessed through the Europa server (http://europa.eu.int).

ISBN 92-79-00338-0

© European Communities, 2005

Europe Direct is a service to help you find answers to your questions about the European Union

Freephone number (*):

00 800 6 7 8 9 10 11(*) Certain mobile telephone operators do not allow access to 00 800 numbers or these

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Luxembourg: Office for Official Publications of the European Communities, 2005

2

'Key figures for Candidate and Western Balkan countries - a comparison with the EU'This publication has been produced by Unit E4 of Eurostat, responsiblefor statistical co-operation with European and Mediterranean countries.The opinions expressed are those of the individual authors alone and donot necessarily reflect the position of the European Commission.

Director of Directorate EMr P. Everaers

Head of Unit E4Mr A. Butkevicius

Co-ordinatorsMr S. Clarke and Mr P. VegisEurostat Unit E4Statistical Office of the European CommunitiesBâtiment Jean Monnetrue Alcide de GasperiL-2920Luxembourg (Kirchberg)e-mail: steve.clarke@cec.eu.int and peteris.vegis@cec.eu.int fax: (+352) 4301 32139

ProductionData collection, data processing, statistical analysis, design and desk-toppublishing by INFORMA sarl (Luxembourg): Giovanni Albertone, SimonAllen, Séverine Gautron, Andrew Redpath, Markus Voget

CreditsIt would not have been possible to make this publication without theconsiderable amount of co-operation and goodwill received from alarge number of persons working in the National Statistical Institutes ofthe Candidate countries and Western Balkans.

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CANDIDATE COUNTRIES - CONTACT DETAILS

BULGARIA (BG)National Statistical Institute2, P. Volov Str.BG-1038 Sofiahttp://www.nsi.bg

CROATIA (HR)Central Bureau of Statistics of CroatiaIlica 3, PO Box 67110000 Zagrebhttp://www.dzs.hr

ROMANIA (RO)National Institute of Statistics16, Libertatii Avenue, Sector 5RO-70542 Bucharesthttp://www.insse.ro

TURKEY (TR)State Institute of Statistics114 Necatibey Caddesi06100 Ankarahttp://www.die.gov.tr

WESTERN BALKANS - CONTACT DETAILS

ALBANIA (AL)Institute of StatisticsRr. Leke Dukagjini 5Tiranahttp://www.instat.gov.al

BOSNIA AND HERZEGOVINA (BA)Institute of Statistics of the Federal Republic of Bosnia and HerzegovinaZelenih Beretki 2671000 Sarajevohttp://www.bhas.ba

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA (MK*)Statistical Office of the former Yugoslav Republic of MacedoniaDame Gruev 4, PO Box 506Skopje - Former Yugoslav Republic of Macedoniahttp://www.stat.gov.mk* Provisional code which does not prejudge in any way the definitivenomenclature for this country (which will be agreed following the conclusion ofnegotiations currently taking place on this subject at the United Nations).

SERBIA AND MONTENEGRO (CS)Statistical Office of Serbia and Montenegro (SOSM)Kneza Milosa 20, PO Box 20311000 Belgradehttp://www.szs.sv.gov.yu

KOSOVO (XK*)Statistical Office in Kosovo (SOK)Rr Zenel Salihu Nr 4Prishtinahttp://www.ks-gov.net/esk* IMPORTANT NOTE: Kosovo is under international administration in line withUnited Nations Security Council Resolution (UNSCR) 1244 of 10 June 1999; XK is anunofficial code (which does not prejudge in any way the definitive nomenclature).

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

1. Demography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Population and population density . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Population growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Population growth and population breakdown by age group . . . . . . .16

Crude birth, death and natural increase rates . . . . . . . . . . . . . . . . . . .18

Fertility, infant mortality and life expectancy . . . . . . . . . . . . . . . . . . . .20

2. Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Early school leavers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Completion of upper secondary education . . . . . . . . . . . . . . . . . . . . .24

Number of pupils/students by ISCED level of education . . . . . . . . . . . .26

Tertiary graduates in science and technology . . . . . . . . . . . . . . . . . . .28

Expenditure on education and participation in training . . . . . . . . . . . .30

3. Social indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Wages and salaries and the equality of income distribution . . . . . . . . .32

Social inequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Household consumption expenditure and social expenditure . . . . . . . .36

4. Labour force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

Employment rates and activity rates . . . . . . . . . . . . . . . . . . . . . . . . . .38

Employment rates and activity rates by gender . . . . . . . . . . . . . . . . . .40

Employment rates and activity rates for older workers (aged 55-64) . . .42

Number of persons employed and employment by sector . . . . . . . . . .44

Unemployment rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46

Youth and long-term unemployment rates . . . . . . . . . . . . . . . . . . . . .48

5. National accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

GDP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

Final consumption expenditure and breakdown of GDP . . . . . . . . . . .52

External trade relative to GDP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

Breakdown of gross value added by sector . . . . . . . . . . . . . . . . . . . . .56

Relative change in gross value added by sector . . . . . . . . . . . . . . . . . .58

Labour productivity and employment change . . . . . . . . . . . . . . . . . . .60

6. Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

General government deficit and debt . . . . . . . . . . . . . . . . . . . . . . . . .62

General government debt and gross foreign debt . . . . . . . . . . . . . . . .64

Balance of payments and the current account . . . . . . . . . . . . . . . . . .66

Foreign direct investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68

Money supply and interest rates . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

Exchange rates, consumer price indices, value of reserve assets . . . . . .72

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7. Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Utilised agricultural area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Utilised agricultural area, wooded area and other land . . . . . . . . . . . .76

Livestock and dairy cows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78

Animals for slaughter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80

Crop production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

8. Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84

Energy intensity, electricity generation and renewable energy . . . . . . .84

Primary production of energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86

Energy balance sheet and energy consumption . . . . . . . . . . . . . . . . .88

Breakdown of final energy consumption . . . . . . . . . . . . . . . . . . . . . .90

9. Industry, construction and services . . . . . . . . . . . . . . . . . . . . . .92

Production and output price indices . . . . . . . . . . . . . . . . . . . . . . . . . .92

Construction output and construction costs . . . . . . . . . . . . . . . . . . . .94

Retail trade and tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96

10. Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98

Transport infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98

Inland transport, number of cars . . . . . . . . . . . . . . . . . . . . . . . . . . .100

Freight transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102

11. Communications and information society . . . . . . . . . . . . . . .104

Fixed and cellular telephony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104

PCs and the Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106

Enterprises and the information society . . . . . . . . . . . . . . . . . . . . . .108

12. External trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110

Total external trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110

External trade with the EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Trade balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114

Breakdown of exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116

Breakdown of imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

External trade by partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120

13. R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122

Expenditure on research and development . . . . . . . . . . . . . . . . . . . .122

14. Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

Greenhouse gas emissions and municipal waste . . . . . . . . . . . . . . . .124

Methodological notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

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Introduction

The enlargement processThe European Union grew to 25 Member States on 1 May 2004. The nextround of enlargement is expected in 2007 or 2008, when Bulgaria andRomania are likely to become members; Croatia and Turkey are Candidatecountries.

In order to join the European Union, Candidate countries need to fulfil arange of economic and political conditions that are known as the'Copenhagen criteria'. Prospective Member States should be stabledemocracies, respect human rights, the rule of law, and the protection ofminorities, have a functioning market economy, as well as adopting thecommon rules, standards and policies that make up the body of EU law(often referred to as the 'acquis communautaire') and to have theadministrative capacity to implement this acquis. The European Unionassists Candidate countries in adapting their economic and politicalconditions to meet EU laws, and provides a range of financial assistance toimprove infrastructure and economic and political systems and to buildsustainable institutional capacities.

The Stabilisation and Association process (SAP) is the EU's policyframework for the Western Balkans: namely Albania, Bosnia andHerzegovina, the former Yugoslav Republic of Macedonia and Serbia andMontenegro, including Kosovo (as defined by the United Nations SecurityCouncil Resolution 1244). Croatia, which has been granted Candidatecountry status, remains part of this process, while also benefiting from pre-accession assistance. The EU encourages strategic, political andinstitutional reform in the Western Balkans. Engagement is at a number oflevels and the natural conclusion to the SAP assistance and co-operationprogrammes is full membership of the European Union.

Financial assistanceIn order to assist the Candidate countries that have applied to becomemembers of the EU, the European Union provides financial assistance tohelp carry out the reforms required for membership. The PHAREprogramme applies to the countries from Central and Eastern Europe, andprincipally involves institution building measures, as well as funding foreconomic and social cohesion measures. The ISPA programme deals withlarge-scale environmental projects and transport infrastructure investment.Finally, the SAPARD programme supports agricultural and ruraldevelopment.

The CARDS programme (Community Assistance for Reconstruction,Development and Stabilisation) underpins the SAP and represents EUassistance to the Western Balkans. Initially the attention of the project wasfocused upon rebuilding infrastructure and fostering reconciliation.However, the programme has subsequently supported initiatives todevelop government institutions and legislation, supporting movestowards European norms and eventually harmonisation with EU acquis.Financial support is now directed at reinforcing democracy, the rule of law,human rights, civil society and the media, as well as the operation of a freemarket economy. In addition, assistance is offered to help generatesustainable economic recovery, and promote social development andstructural reform. For the period 2000-2006, CARDS assistance to theWestern Balkans amounts to about EUR 5 billion.

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Monitoring and assessmentIn order to assess the progress being made by the Candidate countries andthe Western Balkans in terms of political and economic developments, theEuropean Commission submits regular reports on progress made. For theCandidate countries these follow an annual frequency, with the reportsbeing submitted to the Council. The country specific reports detail theprogress made by each country with respect to the criteria for membershipof the European Union, and also provide details relating to areas wherefurther follow-up and change may be required before the criteria foraccession are met.

As with the Candidate countries, the Commission also produces annualSAP reports for the Western Balkans, which are used to measure progressand readiness to move closer to the European Union.

Eurostat's roleEurostat, the Statistical Office of the European Communities, follows theprogress being made by the Candidate countries and the Western Balkanswithin the area of official statistics. Eurostat supports National StatisticalInstitutes (NSIs) in their efforts to align their data with European andinternational standards, by providing assistance to develop statisticalsystems.

The co-operation activities of Eurostat are divided according togeographical regions. Eurostat Unit E4 deals with statistical co-operationwith European and Mediterranean countries. Part of the work involves thecollection of data, and this forms the basis for the information includedwithin this publication.

Background to the projectAs part of the co-operation with NSIs from the Candidate countries andthe Western Balkans, Eurostat Unit E4 launched in the spring of 2005 aregular data collection exercise. The project initially drew up a list ofapproximately 300 indicators that would be requested, covering a broadspectrum of statistics. Requests for data were sent in May 2005 and thefirst data collection exercise was completed in July 2005, when theinformation received was published on the Eurostat web-site (1). Eurostatplans to continue collecting data at regular intervals (approximately everyquarter), thus presenting the freshest information available to users.

The procedure for collecting data involves sending a questionnaire to theNSIs. The data are requested are annual data and the vast majority ofindicators are collected for the whole of each territory (very few regionalbreakdowns). Note that all of the information presented is provided by theNSIs. External trade statistics are not collected as part of this project but arecollected separately by Eurostat's external trade statistics unit (Unit G3).Once the data sets for each country have been validated, the informationis transformed so that it may be published on Eurostat's web-site and inthis way made available to external users.

(1) Available at: http://europa.eu.int/comm/eurostat

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Guide to the statistics

Data sources

EU-25 data that are presented for the purpose of comparison has beenprocessed and calculated by Eurostat on the basis of information providedby the NSIs of the 25 existing Member States with or without estimates.The information was extracted from NewCronos, Eurostat's disseminationdatabase.

For Bulgaria and Romania data were mainly extracted from NewCronos.For other Candidate countries and the Western Balkans, the vast majorityof the data were provided by the NSIs. As noted above, this informationwas collected by Eurostat through the exchange of a questionnaire witheach statistical office. In most cases the data request was sent to a central co-ordinator who then forwarded it to individual departments responsiblefor particular statistical domains, as well as governmental agencies,national banks and ministries (when data are not compiled by the NSI). Inthe event that the data for a particular indicator were not provided toEurostat by the NSIs, the source of the information is footnoted under eachtable or graph.

The only statistical theme where the data were processed directly byEurostat (without a request being made through the questionnaire) wasthat of external trade. For Bulgaria, Romania, and Turkey, external tradedata were extracted from the Candidate country domain of Eurostat'sexternal trade database, COMEXT. For Albania, Croatia and the formerYugoslav Republic of Macedonia the data were taken from the WestBalkans domain of COMEXT. For Bosnia and Herzegovina, and Serbia andMontenegro the data were extracted from the COMTRADE domain(source, the United Nations) of COMEXT. At the present time there are onlylimited external trade data available for Kosovo (as defined by the UnitedNations Security Council Resolution 1244) and this is taken directly frompublications of the statistical office of Kosovo.

Timeliness

The data used in this publication were collected from the Candidatecountries and the Western Balkans during July and August 2005 andformed part of the second, quarterly data collection exercise of 2005. Thedatabase was finalised on 20 August 2005. The majority of indicators areavailable up until reference year 2003 or 2004 (depending upon thestatistical theme and territory).

External trade statistics for the EU-25, the Candidate countries and theWestern Balkans were processed during the first week of August 2005 andare generally available up to reference year 2004.

The EU-25 totals that are provided for the purpose of comparison wereextracted from the NewCronos database during the second week ofAugust 2005. As with the data for the Candidate countries and theWestern Balkans, the information presented is generally available up untilreference years 2003 or 2004 (depending upon the indicator in question).

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Publication format

The data presented are structured according to a number of statisticalthemes, following quite closely the structure of the data questionnaire thatwas sent to each of the NSIs. Each theme is identified by a chapter number.

The standard structure of the publication is to arrange information for aparticular subject on a set of facing pages. Usually this takes the form of alarge table or graph on the first page, followed by a short text and a smalltable or graph on the second page. Where possible, related indicators wereselected for each set of facing pages.

The supporting text is intended to guide the reader in the use of the data(either by providing definitions of the indicators presented, or by drawingattention to peculiarities that should be considered when interpreting thedata). More detailed methodological notes are provided at the end of thepublication.

Exchange rates

For some indicators monetary values were requested from the Candidatecountries and the Western Balkans in terms of national currencydenominations. However, for the majority of the monetary indicators datawere requested in euro (EUR) terms. For a limited number of cases, theinformation provided was sent in an alternative denomination (usually innational currency or in US dollars). In these cases, Eurostat transformed theseries using official exchange rates (annual averages for the reference yearin question) so that data for all indicators foreseen in euro terms aredenominated in the same currency.

Technically data that are presented in euro terms prior to 1999 should bedenominated in ECU. However, as the conversion rate was ECU 1 = EUR 1,for practical purposes the terms may be used interchangeably and thispublication denotes all such monetary series in euro (EUR).

While the conversion to a common currency unit facilitates comparisons ofdata between countries, fluctuations in currency markets are partiallyresponsible for movements identified when looking at the evolution of aseries for an indicator that is denominated in euro. A table is provided withinformation on the annual average exchange rates between the euro andthe currencies of the Candidate counties and the Western Balkans (pleaserefer to page 70 ).

Geographical coverage

The data presented for the EU-25 covers all 25 Member States throughoutthe period considered in each table and graph regardless of whether therewere 15 or 25 members in the reference year concerned (in other words,the data have been back-calculated with a stable coverage). Informationfor Germany is presented on a post-unification basis throughout the periodconsidered.

Non-availability

The colon (:) is used in tables to represent data that are not available, eitherbecause they were not provided to Eurostat or because they wereconfidential. In the graphs (figures), missing information is footnoted.

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Abbreviations and unitsCAP Common agricultural policy

CO2 Carbon dioxide

COICOP Classification of individual consumption according topurpose

CPI Consumer price index

ECB European Central Bank

ECU European currency unit

ESA95 European system of accounts (1995)

FDI Foreign direct investment

GDP Gross domestic product

GHG Greenhouse gases

GWh Gigawatt hour(s) = 1 000 MWh (megawatt hour(s)) = 106 kWh (a kilowatt hour is a unit of energy equivalentto one kilowatt of power expended for one hour of time

Heads Unit of measure for counting the number of animals

Hectare Unit of area equal to 100 ares or 10 000 square metres

IMF International Monetary Fund

IPI Industrial production index

ISCED International standard classification of education (UNclassification)

Kg Kilogram (1 000 grams), a unit of mass

Km Kilometre (1 000 metres), a unit of distance

Km² Square kilometre, a unit of area

LFS Labour force survey

M1 Narrowest category of the money supply, includes physical money (coins & currency); used as a measure-ment to quantify the amount of money in circulation

M2 A broader measure of money supply that includes M1, time-related deposits, savings deposits, and non-institutional money-market funds

NACE Statistical classification of economic activities in theEuropean Community

n.e.c. Not elsewhere classified

NPISH Non-profit institutions serving households

OECD Organisation for Economic Co-operation andDevelopment

PPI Producer price index (output price index)

SDR Special drawing rights

SITC Standard international trade classification

Tonne 1 tonne = 1 000 kg

TOE Tonne of oil equivalent = 42 GJ (net calorific value)

Tonne-km Unit of measure of goods transported which representsthe transport of one tonne over one kilometre

Tonne-km/GDP See above for definition of tonne-km; this indicatoradjusts tonne-km by GDP and provides a measure oftransport intensity

UAA Utilised agricultural area

UN United Nations

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CountriesEU-25 25 Member States of the European Union

EUR-12 Euro-zone of 12 members

BG Bulgaria

HR Croatia

RO Romania

TR Turkey

AL Albania

BA Bosnia and Herzegovina

MK (2) the former Yugoslav Republic of Macedonia

CS Serbia and Montenegro

XK (3) Kosovo (3)

CurrencyEUR Euro

BGN New Bulgarian lev

HRK Croatian kuna

ROL Romanian leu

TRY New Turkish lira

ALL Albanian lek

BAM Convertible mark (Bosnia and Herzegovina)

MKD Denar (the former Yugoslav Republic of Macedonia)

CSD Serbian dinar

Symbols% percentage

: not available

~ not applicable

(2) Provisional code which does not prejudge in any way the definitivenomenclature for this country (which will be agreed following the conclusion ofnegotiations currently taking place on this subject at the United Nations).(3) IIMMPPOORRTTAANNTT NNOOTTEE:: Kosovo is under international administration in line withUnited Nations Security Council Resolution (UNSCR) 1244 of 10 June 1999; XK is an unofficial code (which does not prejudge in any way the definitivenomenclature).

CH00.QXD 27/10/05 10:44 Page 11

(1)

As

of

1 J

anuary

. (2

) 1

99

5-2

00

1,

as

of

30

June.

(3)

Mid

-year

popula

tion e

stim

ate

s. (

4)

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of

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anuary

; 1

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5-2

00

0,

popula

tion w

as

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ase

d o

n the 1

98

9 a

nd 2

00

1popula

tion c

ensu

s. (

5)

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of

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June.

(6)

EU

-15

only

. (7

) O

n the b

asi

s of

popula

tion d

ata

as

of

31

Dece

mber

(or

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anuary

of

the n

ext

year)

. (8

) M

id-y

ear

popula

tion e

stim

ate

s.(9

) 1

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popula

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1

12

Tab

le 1

.1:

Pop

ula

tion

an

d p

op

ula

tion

den

sity

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

446 8

84

447 8

48

448 7

12

449 5

40

450 5

27

451 5

65

::

::

Bu

lgari

a (

1)

8 4

27

8 3

85

8 3

41

8 2

83

8 2

30

8 1

91

8 1

49

7 8

91

7 8

46

7 8

01

Cro

ati

a (

2)

4 6

69

4 4

94

4 5

72

4 5

01

4 5

54

4 4

27

4 4

40

4 4

44

4 4

42

4 4

39

Ro

man

ia22 6

84

22 6

19

22 5

54

22 5

07

22 4

72

22 4

43

22 4

08

21 8

03

21 7

42

21 6

85

Tu

rkey (

3)

61 7

63

62 9

09

64 0

64

65 2

15

66 3

50

67 4

20

68 3

65

69 3

02

70 2

31

71 1

52

Alb

an

ia (

4)

3 0

37

3 0

63

3 0

88

3 0

61

3 0

49

3 0

58

3 0

63

3 0

84

3 1

03

3 1

20

Bo

snia

an

d H

erz

eg

ovin

a (

5)

::

::

3 7

25

3 7

81

3 7

98

3 8

28

3 8

32

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

1 9

57

1 9

75

1 9

97

2 0

08

2 0

18

2 0

26

2 0

35

2 0

20

2 0

27

2 0

30

Serb

ia a

nd

Mo

nte

neg

ro (

5)

8 4

32

8 4

25

8 4

12

8 3

94

8 3

73

8 3

43

8 3

26

8 1

14

8 1

53

8 1

47

Ko

so

vo

(5)

2 1

13

2 1

51

2 1

86

2 2

25

2 2

64

2 3

04

2 3

45

2 3

87

2 4

29

2 4

73

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25 (

6)

117.9

118.2

118.5

118.8

119.1

119.3

119.8

::

:

Bu

lgari

a (

7)

75.5

75.1

74.6

74.2

73.8

73.4

71.1

70.7

70.3

69.9

Cro

ati

a82.6

79.5

80.9

79.6

80.5

78.3

78.5

78.6

78.5

78.5

Ro

man

ia95.1

94.8

94.6

94.4

94.2

94.1

94.0

91.5

91.2

90.9

Tu

rkey (

8)

80.0

82.0

83.0

85.0

86.0

88.0

89.0

90.0

91.0

92.0

Alb

an

ia (

9)

105.6

106.5

107.4

106.5

106.1

106.4

106.6

107.3

107.9

108.5

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

76.1

76.8

77.4

77.9

78.3

78.6

79.0

79.2

78.7

:

Serb

ia a

nd

Mo

nte

neg

ro92.4

92.3

92.2

92.0

91.7

91.4

91.2

88.9

89.3

89.2

Ko

so

vo

194.3

197.8

200.9

204.6

208.1

211.8

215.6

219.5

223.3

227.4

To

tal p

op

ula

tio

n (

tho

usa

nd

s)

Po

pu

lati

on

den

sity

(in

hab

itan

ts p

er

km

²)

PO

PU

LA

TIO

N A

ND

PO

PU

LA

TIO

N D

EN

SIT

Y

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 12

13

Fig

ure

1.1

: N

um

ber

of

wom

en

in

th

e p

op

ula

tion

for

ea

ch 1

00 m

en

in

th

ep

op

ula

tion

, 2004 (

un

its)

(1)

(1)

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

. (2

) 2

00

0.

(3)

As

of

1 J

anuary

. (4

) M

id-y

ear

popula

tion e

stim

ate

s.

95

100

105

110

EU

-25

(2)

BG

(3)

HR

RO

TR (4)

AL

(3)

BA

MK

CS

XK

The p

opula

tion o

f th

e E

U-2

5 w

as

just

ove

r 450 m

illio

n p

ers

ons

in 2

000.

The

larg

est

of

the C

andid

ate

countr

ies,

in t

erm

s of

inhabitants

was

Turk

ey,

with a

popula

tion o

f m

ore

than 7

0 m

illio

n p

ers

ons.

Rom

ania

(alm

ost

22 m

illio

n p

ers

ons)

was

the o

nly

oth

er

terr

itory

in t

he C

andid

ate

countr

ies

or

the W

est

ern

Balk

ans

with m

ore

than 1

0 m

illio

n inhabitants

.

Popula

tion

densi

ty

is

genera

lly

hig

her

in

the

EU

-25

than

in

the

Candid

ate

countr

ies

or

the W

est

ern

Balk

ans.

Note

that

these

fig

ure

s do n

ot

pro

vide a

ny

info

rmation on how

co

nce

ntr

ate

d th

e popula

tion is

w

ithin

urb

an are

as,

or

wheth

er

it is

wid

ely

spre

ad a

cross

more

rura

l la

nd.

Within

Euro

pe,

a s

om

ew

hat

hig

her

pro

port

ion o

f new

born

babie

s te

nd t

o b

e

boys

com

pare

d w

ith g

irls

, how

eve

r, w

om

en t

end t

o h

ave

a h

igher

life e

xpect

ancy

than

men.

As

a

resu

lt,

there

are

genera

lly

more

w

om

en

than

men

in

the

popula

tion of

any

giv

en te

rritory

, although Tu

rkey

and th

e fo

rmer

Yugosl

av

Republic

of

Mace

donia

were

exc

eptions

to t

his

rule

.

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 13

(1)

As

of

1 J

anuary

. (2

) 1

99

6-2

00

1,

as

of

30

June.

(3)

Mid

-year

popula

tion e

stim

ate

s.

(4)

As

of

1 J

anuary

; 1

99

6-2

00

0,

popula

tion w

as

revi

sed b

ase

d o

n the 1

98

9 a

nd 2

00

1 p

opula

tion c

ensu

s. (

5)

As

of

30

June.

1

14

Tab

le 1

.2:

Pop

ula

tion

gro

wth

(%

ch

an

ge c

om

pa

red

wit

h t

he p

revio

us

yea

r)

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

0.2

0.2

0.2

0.2

0.2

::

::

Bu

lgari

a (

1)

-0.5

-0.5

-0.7

-0.6

-0.5

-0.5

-3.2

-0.6

-0.6

Cro

ati

a (

2)

-3.7

1.7

-1.6

1.2

-2.8

0.3

0.1

0.0

-0.1

Ro

man

ia-0

.3-0

.3-0

.2-0

.2-0

.1-0

.2-2

.7-0

.3-0

.3

Tu

rkey (

3)

1.9

1.8

1.8

1.7

1.6

1.4

1.4

1.3

1.3

Alb

an

ia (

4)

0.9

0.8

-0.9

-0.4

0.3

0.2

0.7

0.6

0.5

Bo

snia

an

d H

erz

eg

ovin

a (

5)

::

::

1.5

0.4

0.8

0.1

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

0.9

1.1

0.5

0.5

0.4

0.4

-0.7

0.3

0.2

Serb

ia a

nd

Mo

nte

neg

ro (

5)

-0.1

-0.2

-0.2

-0.3

-0.4

-0.2

-2.5

0.5

-0.1

Ko

so

vo

(5)

1.8

1.6

1.8

1.8

1.8

1.8

1.8

1.8

1.8

PO

PU

LA

TIO

N G

RO

WTH

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 14

15

Fig

ure

1.2

: Pop

ula

tion

, a

vera

ge a

nn

ua

l g

row

th r

ate

s (%

) (1

)

(1)

Bosn

ia a

nd H

erz

egovi

na,

not ava

ilable

; EU

-25

, not ava

ilable

for

20

00

-20

04

. (2

) A

s of

1 J

anuary

. (3

) 1

99

6-2

00

1,

as

of

30

June.

(4)

Mid

-year

popula

tion e

stim

ate

s.(5

) A

s of

1 J

anuary

; 1

99

6-2

00

0,

popula

tion w

as

revi

sed b

ase

d o

n the 1

98

9 a

nd 2

00

1popula

tion c

ensu

s. (

6)

As

of

30

June.

-2-1012

EU

-25

BG

(2)

HR (3)

RO

TR (4)

AL

(5)

BA

(6)

MK

CS (6)

XK

(6)

1995-1

999

2000-2

004

There

are

a n

um

ber

of

fact

ors

that

may

exp

lain

changes

in p

opula

tion l

eve

ls,

incl

udin

g t

he b

irth

rate

, th

e d

eath

rate

and,

perh

aps

most

im

port

antly

in t

he

conte

xt o

f m

any

Candid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

mig

ration r

ate

s.

Within

the E

U-2

5,

the r

ela

tive

ly l

ow

leve

l of

birth

rate

s m

ay

resu

lt i

n s

ignific

ant

popula

tion r

educt

ions

thro

ugh t

o 2

050 (

Euro

stat

dem

ogra

phic

pro

ject

ions)

. If

curr

ent

popula

tion leve

ls a

re t

o b

e m

ain

tain

ed,

then m

ost

com

menta

tors

belie

ve

that

there

w

ill have

to

be co

nsi

dera

ble

im

mig

ration in

to th

e aff

ect

ed are

as.

Oth

ers

arg

ue t

hat

a r

educt

ion in

popula

tion le

vels

mig

ht

be a

good t

hin

g m

akin

g

Euro

pe a

more

sust

ain

able

pla

ce t

o liv

e.

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 15

(1)

EU

-25

, A

lbania

, Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

. (2

) A

s of

1 J

anuary

. (3

) M

id-y

ear

popula

tion e

stim

ate

s. (

4)

19

95

-20

03

.

1

16

Fig

ure

1.3

: Rela

tive c

ha

ng

e i

n t

he p

op

ula

tion

betw

een

1995 a

nd

2004 (

perc

en

tag

e p

oin

ts)

(1)

-6-4-20246

BG

(2)

HR

RO

TR (3)

AL

BA

MK

CS (4)

XK

Aged <

15

Aged 1

5-6

4A

ged 6

5+

PO

PU

LA

TIO

N G

RO

WTH

AN

D P

OP

ULA

TIO

N B

REA

KD

OW

N B

Y A

GE G

RO

UP

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 16

17

Fig

ure

1.4

: B

rea

kd

ow

n o

f p

op

ula

tion

by a

ge g

rou

p,

2004 (

% o

f to

tal)

(1)

(1)

Koso

vo,

not ava

ilable

. (2

) 2

00

0.

(3)

As

of

1 J

anuary

. (4

) M

id-y

ear

popula

tion e

stim

ate

s. (

5)

20

02

. (6

) 2

00

3.

0%

25%

50%

75%

100%

EU

-25

(2)

BG

(3)

HR

RO

TR (4)

AL

BA

(5)

MK

CS (6)

XK

Aged <

15

Aged 1

5-6

4A

ged 6

5+

One of

the m

ost

im

port

ant

fact

ors

w

hen lo

okin

g at

the age st

ruct

ure

of

a

popula

tion i

s th

e d

ependency

ratio.

This

can b

e c

alc

ula

ted a

s th

e p

roport

ion o

f

pers

ons

aged less

than 1

5 o

r m

ore

than 6

5 in r

ela

tion t

o t

he w

hole

popula

tion.

The r

atio s

how

s th

e d

egre

e t

o w

hic

h t

hose

who g

enera

lly d

o n

ot

work

are

support

ed b

y th

ose

that

could

. W

ith r

isin

g liv

ing s

tandard

s le

adin

g t

o h

igher

life

exp

ect

ancy

and a

gein

g p

opula

tions,

there

is

incr

easi

ng c

once

rn t

hat

the E

U-2

5

will

be c

hara

cterise

d b

y a h

igh d

ependency

ratio.

Anoth

er

fact

or

that

may

exp

lain

th

e

age

pro

file

of

a

part

icula

r te

rritory

is

mig

ration.

Eco

nom

ic m

igra

tion t

ends

to b

e m

ore

conce

ntr

ate

d a

mong y

oung,

single

pers

ons

and c

ould

resu

lt in t

he d

epart

ure

fro

m t

he n

ational te

rritory

of

a

rela

tive

ly h

igh n

um

ber

of

pers

ons

aged b

etw

een 1

5 a

nd 6

4.

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 17

(1)

Mid

-year

popula

tion e

stim

ate

s. (

2)

19

95

-20

00

, popula

tion p

roje

ctio

ns

base

d o

n the 1

98

9 p

opula

tion c

ensu

s.

1

18

Tab

le 1

.3:

Cru

de b

irth

an

d d

ea

th r

ate

s (p

er

thou

san

d i

nh

ab

ita

nts

) 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

10.8

10.8

10.7

10.5

10.5

10.6

10.4

10.3

10.4

:

Bu

lgari

a8.6

8.6

7.7

7.9

8.8

9.0

8.6

8.5

8.6

9.0

Cro

ati

a11.2

12.0

12.1

10.5

9.9

10.0

9.2

9.0

8.9

9.1

Ro

man

ia10.4

10.2

10.5

10.5

10.4

10.5

9.8

9.7

9.8

10.0

Tu

rkey (

1)

23.6

23.4

23.1

22.6

21.9

20.2

19.9

19.6

19.4

19.1

Alb

an

ia (

2)

23.6

22.2

20.1

19.7

19.0

16.7

17.7

14.7

15.1

13.8

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

16.4

15.8

14.8

14.6

13.5

14.5

13.3

13.7

13.3

:

Serb

ia a

nd

Mo

nte

neg

ro11.3

10.9

10.5

10.2

9.7

9.9

10.5

10.7

10.7

10.8

Ko

so

vo

21.2

21.4

19.6

::

::

15.2

13.2

14.2

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

10.2

10.2

10.0

10.0

10.1

9.9

9.8

9.8

9.9

:

Bu

lgari

a13.6

14.0

14.7

14.3

13.6

14.1

14.2

14.3

14.3

14.2

Cro

ati

a11.3

11.3

11.4

11.6

11.4

11.5

11.2

11.4

11.8

11.2

Ro

man

ia12.0

12.7

12.4

12.0

11.8

11.4

11.6

12.4

12.3

11.9

Tu

rkey (

1)

6.8

6.7

6.6

6.5

6.4

6.2

6.2

6.2

6.2

6.2

Alb

an

ia (

2)

5.9

5.7

5.9

6.0

5.5

5.4

5.1

5.2

5.8

5.7

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

8.3

8.1

8.3

8.4

8.3

8.5

8.3

8.9

8.9

:

Serb

ia a

nd

Mo

nte

neg

ro11.7

12.3

12.3

12.5

12.8

13.1

12.5

13.4

13.4

13.5

Ko

so

vo

:

::

::

::

2.4

2.7

2.6

Bir

th r

ate

s

Death

rate

s

CR

UD

E B

IRTH

, D

EA

TH

AN

D N

ATU

RA

L I

NC

REA

SE R

ATES

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 18

19

Fig

ure

1.5

: Cru

de r

ate

of

na

tura

l in

crea

se (

per

thou

san

d i

nh

ab

ita

nts

) (1

)

(1)

EU

-25

, Bosn

ia a

nd H

erz

egovi

na a

nd the f

orm

er

Yugosl

av

Republic

of

Mace

donia

,2

00

3 inst

ead o

f 2

00

4.

(2)

Mid

-year

popula

tion e

stim

ate

s. (

3)

19

95

, popula

tion

pro

ject

ions

base

d o

n the 1

98

9 p

opula

tion c

ensu

s. (

4)

19

95

, not ava

ilable

.

-606

12

18

EU

-25

BG

HR

RO

TR (2)

AL

(3)

BA

(4)

MK

CS

XK

1995

2004

It is

poss

ible

to c

alc

ula

te a

cru

de r

ate

of

natu

ral i

ncr

ease

by

subtr

act

ing t

he c

rude

death

rate

fro

m t

he c

rude b

irth

rate

. A

posi

tive

resu

lt s

how

s th

at

the s

ize o

f th

e

popula

tion is

gro

win

g,

if t

he e

ffect

s of

mig

ration a

re d

isco

unte

d.

In t

hre

e o

f th

e C

andid

ate

countr

ies

(not

Turk

ey)

and S

erb

ia a

nd M

onte

negro

,

crude d

eath

rate

s w

ere

sig

nific

antly

hig

her

than c

rude b

irth

rate

s, s

uggest

ing a

net

reduct

ion i

n p

opula

tion l

eve

ls.

On t

he o

ther

hand,

rela

tive

ly h

igh r

ate

s of

natu

ral

incr

ease

were

report

ed i

n t

he m

ajo

rity

of

the W

est

ern

Balk

ans

and i

n

Turk

ey,

with c

rude r

ate

s of

popula

tion incr

ease

ris

ing t

o a

lmost

2 %

per

annum

.

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 19

(1)

Mid

-year

popula

tion e

stim

ate

s. (

2)

19

95

-20

00

, popula

tion p

roje

ctio

ns

base

d o

n the 1

98

9 p

opula

tion c

ensu

s. (

3)

Base

d o

n a

soci

al-

dem

ogra

phic

surv

ey

for

20

03

.(4

) Sourc

e,

Min

istr

y of

Health

.

1

20

Tab

le 1

.4:

Fert

ilit

y a

nd

in

fan

t m

ort

ality

ra

tes

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

1.4

41.4

41.4

41.4

31.4

21.4

81.4

61.4

61.4

8

Bu

lgari

a1.2

41.0

91.1

11.2

31.2

71.2

41.2

11.2

31.2

9

Cro

ati

a1.7

01.7

01.5

01.4

01.4

01.4

01.3

01.3

01.4

0

Ro

man

ia1.3

01.3

21.3

21.3

01.3

11.2

01.2

61.2

71.3

0

Tu

rkey (

1)

2.6

92.6

32.5

62.4

82.2

72.2

52.2

42.2

22.2

1

Alb

an

ia (

2)

2.5

02.2

02.2

02.1

02.0

02.4

01.9

02.0

01.8

0

Bo

snia

an

d H

erz

eg

ovin

a:

::

1.3

61.2

81.2

31.2

3:

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

1.9

01.7

41.7

31.6

11.6

81.5

51.5

91.5

4:

Serb

ia a

nd

Mo

nte

neg

ro1.6

21.5

71.5

21.4

41.4

71.5

51.5

81.5

8:

Ko

so

vo

(3)

::

::

::

:3.0

0:

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

6.7

6.4

5.9

5.7

:5.2

5.0

4.8

4.6

Bu

lgari

a15.6

17.5

14.4

14.6

13.3

14.4

13.3

12.3

11.6

Cro

ati

a8.0

8.2

8.2

7.7

7.4

7.7

7.0

6.3

6.1

Ro

man

ia22.3

22.0

20.5

18.6

18.6

18.4

17.3

16.7

16.8

Tu

rkey (

1)

40.9

38.8

36.5

33.9

28.9

27.8

26.7

25.6

24.6

Alb

an

ia (

4)

::

:17.5

16.0

17.4

17.3

17.4

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

10.1

9.7

7.6

9.4

7.7

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

16.4

15.7

16.3

14.9

11.8

11.9

10.2

11.3

:

Serb

ia a

nd

Mo

nte

neg

ro14.6

12.4

11.8

11.2

10.7

10.6

10.2

9.2

7.5

Ko

so

vo

:

::

::

:30.0

30.0

30.0

Fert

ilit

y r

ate

s (c

hild

ren

per

wo

man

)

Infa

nt

mo

rtality

rate

s (d

eath

s o

f ch

ild

ren

un

der

on

e y

ear

of

ag

e r

ela

tive t

o e

very

th

ou

san

d liv

e b

irth

s)

FER

TIL

ITY,

IN

FA

NT M

OR

TA

LIT

Y A

ND

LIF

E E

XP

ECTA

NCY

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 20

21

Fig

ure

1.6

: Lif

e e

xp

ect

an

cy a

t b

irth

, 2004 (

yea

rs)

(1)

Ave

rage f

or

the p

eri

od 2

00

2-2

00

4.

(2)

Mid

-year

popula

tion e

stim

ate

s.

(3)

20

03

. (4

) 2

00

2.

40

50

60

70

80

90

100

EU

-25

BG

(1)

HR

RO

TR (2)

AL

(3)

BA

(3)

MK

(4)

CS (3)

XK

Men

Wom

en

The d

ecl

ine in b

irth

and f

ert

ility

rate

s is

pro

foundly

changin

g t

he s

truct

ure

of

the

EU

-25's

popula

tion.

The t

rend f

or

decl

inin

g f

ert

ility

rate

s m

ay

be a

ttribute

d t

o a

nu

mb

er

of

ph

en

om

en

a,

incl

ud

ing

: m

ore

eff

ect

ive

an

d

wid

er

use

o

f

contr

ace

ption; a h

igher

pro

port

ion o

f w

om

en g

oin

g t

o w

ork

(by

choic

e o

r out

of

eco

nom

ic n

ece

ssity)

; a lo

wer

num

ber

of

marr

iages

(that

on a

vera

ge o

ccur

late

r in

life);

a r

ise in t

he n

um

ber

of

unst

able

marr

iages

and d

ivorc

es

(leadin

g t

o a

hig

her

pro

port

ion o

f pers

ons

livin

g o

n t

heir o

wn).

A h

igher

standard

of

livin

g a

nd a

n e

ffic

ient

health s

yste

m s

hould

resu

lt in low

er

infa

nt

mort

alit

y ra

tes

and h

igher

life e

xpect

ancy

. These

changes

may

resu

lt f

rom

the era

dic

ation of

som

e dis

ease

s, tr

eatm

ent

for

degenera

tive

dis

ease

s, m

ore

nutr

itio

nal

and

lifest

yle

aw

are

ness

, and

a

low

er

ave

rage

num

ber

of

hours

work

ed.

Life

exp

ect

ancy

at

birth

was

found t

o b

e h

igher

for

wom

en c

om

pare

d

with m

en in a

ll te

rritories,

exc

ept

Kosovo.

Dem

og

rap

hy

CH01.QXD 27/10/05 10:54 Page 21

(1)

20

03

, bre

ak

in s

eri

es.

(2)

Up u

ntil

20

00

, tr

ain

ing o

uts

ide o

f th

e f

orm

al educa

tion s

yste

m is

not ta

ken into

acc

ount; u

p u

ntil

20

00

, co

nsc

ripts

are

incl

uded;

data

refe

r to

the s

eco

nd q

uart

er

of

each

year.

(3)

Data

refe

r to

the s

eco

nd h

alf o

f each

year.

(4)

Annual data

fro

m the L

abour

Forc

e S

urv

ey;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d,

base

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(5)

Weig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

.(6

) Sourc

e,

20

02

censu

s.

2

22

Tab

le 2

.1:

Pro

port

ion

of

the p

op

ula

tion

ag

ed

18-2

4 h

avin

g n

ot

com

ple

ted

up

per

seco

nd

ary

ed

uca

tion

an

d w

ho a

re c

urr

en

tly n

ot

in a

ny e

duca

tion

or

tra

inin

g (

%)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

::

::

:17.3

16.9

16.6

16.1

15.7

Bu

lgari

a (

2)

24.7

23.7

22.8

23.2

23.1

23.6

20.3

21.0

22.4

21.4

Cro

ati

a (

3)

::

::

::

::

7.3

4.5

Ro

man

ia (

4)

::

20.2

19.8

22.4

23.1

21.8

22.9

22.7

23.4

Tu

rkey (

5)

::

::

:58.1

58.1

55.1

52.9

54.4

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(6)

::

::

::

:32.2

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

EA

RLY

SC

HO

OL L

EA

VER

S

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 22

23

Fig

ure

2.1

: P

rop

ort

ion

of

the p

op

ula

tion

ag

ed

18-2

4 h

avin

g n

ot

com

ple

ted

up

per

seco

nd

ary

ed

uca

tion

an

d w

ho a

re c

urr

en

tly n

ot

in a

ny e

du

cati

on

or

tra

inin

g,

2004 (

%)

(1)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not

ava

ilable

. (2

) D

ata

refe

r to

the s

eco

nd q

uart

er. (

3)

Data

refe

r to

the s

eco

nd h

alf o

f th

eye

ar. (

4)

Annual data

fro

m the L

abour

Forc

e S

urv

ey;

data

have

been w

eig

hte

d,

base

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(5)

Weig

hte

dannual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

. (6

) 2

00

2;

sourc

e,

20

02

censu

s.

0

10

20

30

40

50

60

70

EU

-25

BG

(2)

HR (3)

RO

(4)

TR (5)

AL

BA

MK

(6)

CS

XK

Men

Wom

en

Educa

tion a

nd t

rain

ing p

olic

ies

are

centr

al t

o t

he c

reation o

f know

ledge. A

s su

ch,

they

pla

y an i

mport

ant

role

in t

he L

isbon o

bje

ctiv

es

of

creating a

dyn

am

ic a

nd

com

petitive

, know

ledge-b

ase

d e

conom

y. H

um

an r

eso

urc

es

are

oft

en v

iew

ed a

s

one o

f th

e E

U-2

5's

main

ass

ets

, and i

t is

wid

ely

ack

now

ledged t

hat

inve

stm

ent

in t

his

are

a is

a d

ete

rmin

ing f

act

or

for

gro

wth

and p

roduct

ivity,

in t

he s

am

e w

ay

as

inve

stm

ent

in p

lant

and e

quip

ment.

As

part

of

its

obje

ctiv

es

for

2010,

the E

U h

as

made t

ack

ling t

he p

roble

m o

f early

school l

eave

rs o

ne o

f its

priorities.

While

the n

um

ber

of

early

school l

eave

rs in

the

EU

-25 h

as

been r

educe

d, in

2004 t

here

rem

ain

ed a

lmost

16 %

of

young p

ers

ons

aged b

etw

een 1

8 a

nd 2

4 w

ho h

ad n

ot

com

ple

ted u

pper

seco

ndary

educa

tion

and w

ho w

ere

not

engaged in a

ny

educa

tion o

r tr

ain

ing.

Note

th

at

the pro

port

ion of

men w

ho had not

com

ple

ted upper

seco

ndary

educa

tion w

as

usu

ally

hig

her

than t

hat

for

wom

en,

although T

urk

ey

and t

he

form

er

Yugosl

av

Republic

of

Mace

donia

were

exc

eptions

to t

his

rule

.

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 23

(1)

Up u

ntil

20

00

, tr

ain

ing o

uts

ide o

f th

e f

orm

al educa

tion s

yste

m is

not ta

ken into

acc

ount; u

p u

ntil

20

00

, co

nsc

ripts

are

incl

uded;

data

refe

r to

the s

eco

nd q

uart

er

of

each

year.

(2)

Data

refe

r to

the s

eco

nd h

alf o

f each

year.

(3)

Annual data

fro

m the L

abour

Forc

e S

urv

ey;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d,

base

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Weig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

.(5

) Sourc

e,

20

02

censu

s.

2

24

Tab

le 2

.2:

Pro

port

ion

of

the p

op

ula

tion

ag

ed

20-2

4 h

avin

g c

om

ple

ted

at

lea

st u

pp

er

seco

nd

ary

ed

uca

tion

(%

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

::

74.8

76.4

76.2

76.5

76.6

76.7

Bu

lgari

a (

1)

75.0

75.1

75.6

75.2

75.1

74.9

78.2

77.5

75.6

76.0

Cro

ati

a (

2)

::

::

::

::

91.3

94.7

Ro

man

ia (

3)

::

81.1

80.7

76.9

75.9

77.3

76.5

74.9

75.3

Tu

rkey (

4)

::

::

:39.7

39.7

42.7

44.3

42.2

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(5)

::

::

::

:65.4

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

CO

MP

LETIO

N O

F U

PP

ER

SEC

ON

DA

RY E

DU

CA

TIO

N

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 24

25

Fig

ure

2.2

: P

rop

ort

ion

of

the p

op

ula

tion

ag

ed

20-2

4 h

avin

g c

om

ple

ted

at

lea

st u

pp

er

seco

nd

ary

ed

uca

tion

, 2004 (

%)

(1)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not

ava

ilable

. (2

) D

ata

refe

r to

the s

eco

nd q

uart

er. (

3)

Data

refe

r to

the s

eco

nd h

alf o

f th

eye

ar. (

4)

Annual data

fro

m the L

abour

Forc

e S

urv

ey;

data

have

been w

eig

hte

d,

base

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(5)

Weig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

. (6

) 2

00

2;

sourc

e,

20

02

censu

s.

0

25

50

75

100

EU

-25

BG

(2)

HR (3)

RO

(4)

TR (5)

AL

BA

MK

(6)

CS

XK

Male

Fem

ale

Anoth

er

Str

uct

ura

l In

dic

ato

r use

d b

y th

e C

om

mis

sion in t

heir a

ssess

ment

of

the

pro

gre

ss b

ein

g m

ade in r

ela

tion t

o t

he L

isbon o

bje

ctiv

es

is t

he p

roport

ion o

f th

e

popula

tion a

ged 2

0 t

o 2

4 t

hat

have

com

ple

ted a

t le

ast

an u

pper

seco

ndary

educa

tion.

The E

U-2

5 is

tryi

ng t

o incr

ease

this

fig

ure

, w

ith t

he b

elie

f th

at

if it

is

to

be

com

petitive

in

th

e

know

ledge-d

rive

n

eco

nom

y,

it

will

need a

hig

her

num

ber

of

gra

duate

s w

ith q

ualif

ications

suitably

adapte

d t

o E

uro

pean l

abour

mark

et

requirem

ents

.

More

than t

hre

e q

uart

ers

of

the p

opula

tion a

ged 2

0-2

4 h

ad c

om

ple

ted a

t le

ast

upper

seco

ndary

educa

tion i

n t

he E

U-2

5 a

nd t

he C

andid

ate

countr

ies

(exc

ept

Turk

ey)

in 2

004. The t

able

show

s th

at

the t

arg

et

of

reach

ing a

leve

l of

com

ple

tion

of

upper

seco

ndary

leve

l educa

tion o

f 85%

by

2010 is

a s

ignific

ant

challe

nge f

or

the E

U-2

5,

as

the a

vera

ge in 2

004 w

as

76.7

%.

The c

ase

of

Cro

atia (

94.7

%)

is

esp

eci

ally

note

wort

hy.

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 25

(1)

Data

corr

esp

ond to a

cadem

ic y

ears

, 1

99

9 is

19

98

/19

99

, 2

00

4 is

20

03

/20

04

etc

; aca

dem

ic y

ears

sta

rt in S

epte

mber

and e

nd in J

une o

f th

e f

ollo

win

g y

ear. (

2)

ISC

ED

5,

data

corr

esp

ond to a

cadem

ic y

ears

, 1

99

9 is

19

99

/20

00

, 2

00

4 is

20

04

/20

05

etc

. (3

) Pu

blic

educa

tion o

nly

. (4

) IS

CED

5,

exc

ludes

enro

lled s

tudents

on ISC

ED

5A

-seco

nd d

egre

e c

ours

es

and m

ast

ers

. (5

) 2

00

3.

2

26

Tab

le 2

.3:

Nu

mb

ers

of

pu

pils/

stu

den

ts (

thou

san

ds)

ISC

ED

0IS

CED

1IS

CED

2IS

CED

3IS

CED

4IS

CED

5IS

CED

6EU

-25

12 8

27

30 6

18

20 1

18

23 2

48

1 3

58

14 3

53

387

Bu

lgari

a (

1)

219

412

368

332

8267

3

Cro

ati

a (

2)

85

209

222

199

:100

:

Ro

man

ia625

1 2

85

1 2

72

946

96

408

:

Tu

rkey

213

10 0

29

:2 3

16

:1 4

73

20

Alb

an

ia (

3)

82

292

261

102

:39

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(4)

33

130

130

89

035

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

Ko

so

vo

:

::

::

::

ISC

ED

0IS

CED

1IS

CED

2IS

CED

3IS

CED

4IS

CED

5IS

CED

6EU

-25 (

5)

12 7

46

27 6

24

22 2

85

23 6

89

1 1

74

16 4

13

474

Bu

lgari

a (

1)

201

314

330

374

3224

5

Cro

ati

a (

2)

89

196

195

196

::

:

Ro

man

ia637

1 0

06

1 1

17

1 0

38

55

668

18

Tu

rkey

::

::

:2 0

62

27

Alb

an

ia (

3)

80

240

251

142

:53

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(4)

33

114

120

96

047

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

Ko

so

vo

:

::

::

::

1999

2004

NU

MB

ER

OF P

UP

ILS/S

TU

DEN

TS B

Y I

SCED

LEV

EL O

F E

DU

CA

TIO

N

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 26

27

Fig

ure

2.3

: P

rop

ort

ion

of

the p

up

il/s

tud

en

t p

op

ula

tion

in

dif

fere

nt

levels

of

ed

uca

tion

, 2004 (

%)

(1)

(1)

Turk

ey,

Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

.(2

) 2

00

3.

(3)

Data

corr

esp

ond to a

cadem

ic y

ears

, 1

99

9 is

19

98

/19

99

, 2

00

4 is

20

03

/20

04

etc

; aca

dem

ic y

ears

sta

rt in S

epte

mber

and e

nd in J

une o

f th

e f

ollo

win

gye

ar. (

4)

ISC

ED

5,

data

corr

esp

ond to a

cadem

ic y

ears

, 2

00

4 is

20

04

/20

05

. (5

) Pu

blic

educa

tion o

nly

. (6

) IS

CED

5,

exc

ludes

enro

lled s

tudents

on ISC

ED

5A

-seco

nd

degre

e c

ours

es

and m

ast

ers

.

0%

25%

50%

75%

100%

EU

-25

(2)

BG

(3)

HR (4)

RO

TR

AL

(5)

BA

MK

(6)

CS

XK

ISC

ED

0+

1IS

CED

2+

3IS

CED

4+

5+

6

Educa

tion s

tages

are

defined in t

he ISC

ED

, as

follo

ws:

0Pre

-prim

ary

educa

tion;

1Prim

ary

educa

tion;

2Lo

wer

seco

ndary

educa

tion;

3(U

pper)

seco

ndary

educa

tion;

4Post

-seco

ndary

non t

ert

iary

educa

tion;

5Fi

rst

stage o

f te

rtia

ry e

duca

tion;

6

Seco

nd s

tage o

f te

rtia

ry e

duca

tion (

leadin

g t

o a

n a

dva

nce

d r

ese

arc

h

qualif

ication).

There

w

as

an in

crease

betw

een 1999 and 2004 as

regard

s th

e num

ber

of

students

th

at

att

ended firs

t and se

cond st

ages

of

tert

iary

educa

tion in

th

e

majo

rity

of

the E

U M

em

ber

Sta

tes,

as

well

as

the C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans.

N

ote

th

at

ISC

ED

le

vels

1

to

3

are

co

mpuls

ory

in

m

any

educa

tional sy

stem

s.

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 27

(1)

EU

-25

, not ava

ilable

. (2

) Po

pula

tion d

ata

use

d a

s th

e d

enom

inato

r re

fer

to m

id-y

ear

est

imate

s.

(3)

Begin

nin

g o

n 1

January

20

03

, in

cludin

g ISC

ED

6 a

nd ISC

ED

5A

seco

nd q

ualif

icatio

ns.

2

28

Tab

le 2

.4:

Tert

iary

gra

du

ate

s in

sci

en

ce a

nd

tech

nolo

gy (

1)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Bu

lgari

a10.3

8.3

7.8

6.5

7.4

7.7

10.1

14.5

10.2

10.5

Cro

ati

a (

2)

::

::

7.6

7.4

7.0

7.8

6.3

:

Ro

man

ia (

3)

::

:5.5

5.5

5.8

6.2

7.3

9.4

:

Tu

rkey

4.0

4.4

4.6

5.2

5.6

6.9

5.9

6.3

6.5

7.1

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

3.7

3.9

4.7

4.1

4.2

3.5

3.3

3.7

3.5

3.7

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Bu

lgari

a7.9

7.6

7.1

5.6

6.6

6.7

7.2

10.2

7.8

7.9

Cro

ati

a (

2)

::

::

3.7

4.8

4.1

3.4

3.4

:

Ro

man

ia (

3)

::

:2.9

2.7

3.2

3.5

4.4

6.4

:

Tu

rkey

1.5

1.7

1.9

2.3

2.8

2.9

2.8

2.8

3.1

3.1

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

2.5

2.7

2.8

3.1

3.1

2.6

2.6

2.7

2.6

3.1

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

Male

(p

er

1 0

00 p

op

ula

tio

n a

ged

20-2

9)

Fem

ale

(p

er

1 0

00 p

op

ula

tio

n a

ged

20-2

9)

TER

TIA

RY G

RA

DU

ATES I

N S

CIE

NC

E A

ND

TEC

HN

OLO

GY

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 28

29

Fig

ure

2.4

: R

ati

o o

f fe

ma

le t

o m

ale

tert

iary

gra

du

ate

s in

sci

en

ce a

nd

tech

nolo

gy,

2004 (

fem

ale

gra

du

ate

s p

er

100 m

ale

gra

du

ate

s) (

1)

(1)

EU

-25

, A

lbania

, Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not

ava

ilable

. (2

) 2

00

3;

popula

tion d

ata

use

d a

s th

e d

enom

inato

r re

fer

to m

id-y

ear

est

imate

s. (

3)

20

03

, in

cludin

g ISC

ED

6 a

nd ISC

ED

5A

seco

nd q

ualif

icatio

n.

(4)

20

03

.

0

25

50

75

100

BG

HR (2)

RO

(3)

TR (4)

AL

BA

MK

CS

XK

Tert

iary

gra

duate

s are

defined

as

those

w

ho

have

su

ccess

fully

co

mple

ted

educa

tional pro

gra

mm

es

that

usu

ally

resu

lt in o

bta

inin

g a

cert

ific

ate

or

dip

lom

a,

such

as

a

bach

elo

r's

degre

e,

mast

er'

s degre

e

or

a

doct

ora

te.

Sci

ence

and

tech

nolo

gy

is d

efined b

y IS

CED

as

incl

udin

g t

he f

ollo

win

g s

ubje

ct a

reas:

life

scie

nce

s, p

hys

ical

scie

nce

s, m

ath

em

atics

and s

tatist

ics,

com

puting,

engin

eering,

manufa

cturing a

nd p

roce

ssin

g,

arc

hitect

ure

and b

uild

ing.

It i

s cl

ear, w

hen s

tudyi

ng e

nro

lment

rate

s in

sci

ence

and t

ech

nolo

gy

at

tert

iary

leve

l, th

at

gender

imbala

nce

is

an is

sue.

Polic

y m

akers

belie

ve th

at

if m

ore

wom

en co

uld

be enco

ura

ged in

to sc

ience

and te

chnolo

gy

then th

e ove

rall

num

ber

of

gra

duate

s in

these

fie

lds

would

als

o r

ise.

A r

ela

ted p

roble

m is

that

of

rete

ntion,

where

by

gra

duate

s in

sci

ence

and t

ech

nolo

gy

leave

the d

om

ain

or

move

to a

noth

er

terr

itory

to u

se t

he s

kill

s th

ey

have

deve

loped.

For

exa

mple

,

although a

hig

her

pro

port

ion o

f th

e t

ota

l num

ber

of

gra

duate

s qualif

y in

sci

ence

and t

ech

nolo

gy

rela

ted s

ubje

cts

in t

he E

U-2

5, th

e p

roport

ion o

f re

searc

hers

in t

he

act

ive p

opula

tion is

much

hig

her

in t

he U

nited S

tate

s, s

uggest

ing t

here

is a

'bra

in

dra

in'

from

Euro

pe t

o t

he U

nited S

tate

s.

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 29

2

30

Tab

le 2

.5:

Sp

en

din

g o

n h

um

an

reso

urc

es

(pu

blic

exp

en

dit

ure

on

ed

uca

tion

) a

s a

pro

port

ion

of

GD

P (

%)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

5.2

:5.0

:5.0

4.9

5.1

5.2

::

Bu

lgari

a3.4

2.6

2.6

3.2

3.7

4.4

3.5

3.6

::

Cro

ati

a:

::

:4.2

4.5

4.2

4.3

4.2

:

Ro

man

ia:

::

4.4

3.4

2.9

3.3

3.5

::

Tu

rkey

2.3

2.4

2.4

3.1

3.6

3.5

3.7

3.6

3.8

3.8

Alb

an

ia3.7

3.7

3.3

3.2

3.3

3.1

3.2

2.8

2.9

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

:3.5

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

:3.9

3.9

3.6

::

:

Ko

so

vo

:

::

::

::

::

:

EX

PEN

DIT

UR

E O

N E

DU

CA

TIO

N A

ND

PA

RTIC

IPA

TIO

N I

N T

RA

ININ

G

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 30

31

Fig

ure

2.5

: P

rop

ort

ion

of

pers

on

s a

ged

25-6

4 h

avin

g p

art

icip

ate

d i

ned

uca

tion

an

d t

rain

ing

(a

t a

ny t

ime d

uri

ng

a f

ou

r w

eek

peri

od

pri

or

tob

ein

g s

urv

eyed

), 2

004 (

%)

(1)

(1)

Rom

ania

, A

lbania

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

, Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

. (2

) D

ata

refe

r to

the

seco

nd q

uart

er. (

3)

Popula

tion d

ata

use

d a

s th

e d

enom

inato

r re

fer

to m

id-y

ear

est

imate

s;num

ber

of

students

refe

rs to a

cadem

ic y

ears

, 1

99

9 is

19

99

/20

00

, 2

00

4 is

20

04

/20

05

etc

. (4

) W

eig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

.

02468

10

EU

-25

BG

(2)

HR (3)

RO

TR (4)

AL

BA

MK

CS

XK

The L

isbon E

uro

pean C

ounci

l ca

lled f

or

'a s

ubst

antial annual in

crease

in t

he p

er

capita inve

stm

ent

in h

um

an r

eso

urc

es'

. In

2002,

EU

-25 p

ublic

sect

or

inve

stm

ent

in e

duca

tion w

as

equal to

5.2

% o

f G

DP,

a f

igure

that

was

hig

her

than in a

ny

of

the C

andid

ate

countr

ies

or

the W

est

ern

Balk

ans.

Young a

dults

and h

ighly

qualif

ied w

ork

ers

are

oft

en a

ware

of

the a

dva

nta

ges

of

updating

their

skill

s co

mpete

nci

es.

C

onve

rsely

, people

w

ith

low

le

vels

of

educa

tion and qualif

ications,

old

er

work

ers

, m

arg

inalis

ed popula

tion gro

ups,

those

liv

ing in

dis

adva

nta

ged or

outlyi

ng re

gio

ns,

and people

w

ith le

arn

ing

difficu

ltie

s are

oft

en co

mpara

tive

ly unacq

uain

ted w

ith th

e opport

unitie

s th

at

exi

st t

o im

pro

ve t

heir e

duca

tion a

nd t

rain

ing. The E

uro

pean C

om

mis

sion b

elie

ves

that

lifelo

ng le

arn

ing s

hould

be a

conce

pt

that

refe

rs t

o c

ontinued e

duca

tion a

nd

train

ing o

pport

unitie

s fo

r all

mem

bers

of

soci

ety

. N

ote

the p

roport

ion o

f th

e

popula

tion e

ngaged i

n l

ifelo

ng l

earn

ing w

as

much

hig

her

in t

he E

U-2

5 t

han i

t

was

in t

he C

andid

ate

countr

ies

or

the W

est

ern

Balk

ans.

Ed

uca

tion

CH02.QXD 27/10/05 10:54 Page 31

(1)

EU

-25

, not ava

ilable

. (2

) D

ata

are

conve

rted f

rom

the d

enom

inatio

n o

f Bulg

ari

an N

ew

Lev;

data

refe

r to

gro

ss e

arn

ings

(befo

re a

ny

deduct

ion o

f em

plo

yees’

contr

ibutio

ns

to s

oci

al

secu

rity

or

tax

deduct

ions,

and e

mplo

yees’

pers

onal ta

xes)

; acc

ord

ing to n

atio

nal definiti

ons,

gro

ss e

arn

ings

com

pri

se b

asi

c w

ages

and s

ala

ries,

rem

unera

tion a

nd a

dditi

onal paym

ents

for

nig

ht or

shift w

ork

, w

ork

duri

ng w

eeke

nds

and p

ublic

holid

ays

, ext

ra a

llow

ance

s fo

r ext

rem

e w

ork

ing c

onditi

ons

like s

moke

, dust

, te

mpera

ture

, danger

etc

., p

aym

ents

for

statu

tory

,co

ntr

act

ual or

volu

nta

rily

gra

nte

d leave

, re

munera

tion p

aid

for

ove

r-tim

e w

ork

, bonuse

s (m

onth

ly,

quart

erl

y, y

earl

y),

13

th m

onth

paym

ents

. (3

) Pe

rsons

em

plo

yed in c

rafts,

tra

des

and

as

freela

nce

rs,

as

well

as

in the p

olic

e a

nd d

efe

nce

-rela

ted a

ctiv

ities

are

exc

luded;

begin

nin

g in 2

00

4 the n

um

ber

of

pers

ons

em

plo

yed in the p

olic

e a

nd d

efe

nce

-rela

ted a

ctiv

ities

are

incl

uded.

(4)

Gro

ss w

ages

and s

ala

ries;

valu

es

refe

r to

NA

CE R

ev.

1 S

ect

ions

C to O

. (5

) N

et w

ages

and s

ala

ries.

3

32

Tab

le 3

.1:

Wa

ges

an

d s

ala

ries

(1)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Bu

lgari

a (

2)

::

109.8

162.8

102.8

114.8

122.7

131.7

139.7

154.2

Cro

ati

a (

3)

411.5

467.0

527.0

578.8

600.4

637.7

677.6

724.5

743.4

798.5

Ro

man

ia (

4)

:112.3

106.0

134.2

119.3

144.1

164.1

172.0

178.4

:

Tu

rkey

::

::

::

::

::

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

174.6

176.1

161.3

153.8

159.4

167.9

173.2

185.0

193.0

200.4

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Bu

lgari

a:

90.4

74.9

92.4

98.8

100.0

99.6

101.0

104.7

108.8

Cro

ati

a (

3)

74.6

80.3

87.3

92.4

98.4

100.0

99.2

103.2

106.1

112.2

Ro

man

ia (

5)

:129.3

99.7

103.4

103.8

100.0

105.0

107.5

119.1

:

Tu

rkey

::

::

::

::

::

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

92.7

93.1

93.3

96.8

100.3

100.0

98.1

103.0

106.7

111.4

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

Avera

ge n

om

inal m

on

thly

wag

es

an

d s

ala

ries

(EU

R)

Ind

ex o

f re

al w

ag

es

an

d s

ala

ries

(2000=

100)

WA

GES A

ND

SA

LA

RIE

S A

ND

TH

E E

QU

ALIT

Y O

F I

NC

OM

E D

ISTR

IBU

TIO

N

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 32

33

Fig

ure

3.1

: In

com

e d

istr

ibu

tion

, 2004 (

1)

(1)

Cro

atia

and A

lbania

, gender

pay

gap,

not ava

ilable

; Bosn

ia a

nd H

erz

egovi

na,

the

form

er

Yugosl

av

Republic

of

Mace

donia

, Serb

ia a

nd M

onte

negro

and K

oso

vo,

not

ava

ilable

. (2

) G

ender

pay

gap,

20

03

. (3

) In

com

e d

istr

ibutio

n,

20

03

; data

were

calc

ula

ted a

ccord

ing to E

uro

stat's

'Meth

odolo

gy

of

calc

ula

tion o

f co

mm

on c

ross

-sect

ional

EU

indic

ato

rs',

20

04

. (4

) G

ender

pay

gap d

ata

is

base

d o

n m

onth

ly e

arn

ings.

(5

) 2

00

2;

sourc

e,

House

hold

Budget Surv

ey.

(6

) In

com

e d

istr

ibutio

n,

20

02

; ca

lcula

ted o

nth

e b

asi

s of

consu

mptio

n p

er

capita

.

05

10

15

20

EU

-25

BG

(2)

HR (3)

RO

(4)

TR (5)

AL

(6)

BA

MK

CS

XK

Inequalit

y of

inco

me d

istr

ibution

Gender

pay

gap

The e

volu

tion o

f w

ages

and s

ala

ries

ove

r tim

e c

an b

e m

easu

red b

y ave

rage

nom

inal

wages

and s

ala

ries

that

incl

ude a

ll in

com

es

and r

em

unera

tion r

ece

ived

by

em

plo

yees

for

their w

ork

. To

measu

re t

he r

eal va

lue o

f re

munera

tion,

wages

and s

ala

ries

can b

e d

ivid

ed b

y th

e c

onsu

mer

price

index

so t

hat

the e

ffect

s of

changes

in p

rice

leve

ls a

re a

lso c

onsi

dere

d.

The g

ender

pay

gap i

s defined a

s th

e d

iffe

rence

betw

een a

vera

ge g

ross

hourly

earn

ings

of

male

paid

em

plo

yees

and f

em

ale

paid

em

plo

yees.

Note

that

ave

rage

hourly

earn

ings

are

found t

o b

e p

art

icula

rly

low

in s

ect

ors

that

have

a h

igh

pro

pensi

ty t

o e

mplo

y on a

part

-tim

e b

asi

s (f

or

exa

mple

, re

tail

trade,

hote

ls a

nd

rest

aura

nts

, ce

rtain

busi

ness

se

rvic

es,

su

ch

as

cleanin

g

serv

ices)

, w

here

th

e

pro

port

ion o

f fe

male

em

plo

yment

is o

ften r

ela

tive

ly h

igh.

The g

ender

pay

gap

may

arise

fr

om

a

num

ber

of

underlyi

ng

fact

ors

, in

cludin

g,

sect

ora

l and

occ

upational

segre

gation,

educa

tion and tr

ain

ing,

job cl

ass

ific

ations

and pay

syst

em

s.

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 33

3

34

Tab

le 3

.2:

Soci

al

ind

ica

tors

(%

)

2000

2001

2002

2003

2004

1994

2000

2001

2002

2003

EU

-25

38.1

37.2

37.1

37.4

36.4

:78.8

78.5

78.3

:

Bu

lgari

a39.4

35.9

35.2

35.0

34.9

::

73.9

74.4

74.0

Cro

ati

a:

::

::

::

::

:

Ro

man

ia43.1

43.5

42.3

41.7

::

:75.1

70.3

75.5

Tu

rkey

39.1

42.6

41.3

40.9

41.8

::

::

:

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

T

ax w

ed

ge

U

nem

plo

ym

en

t tr

ap

SO

CIA

L I

NEQ

UA

LIT

Y

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 34

35

Tab

le 3

.3:

Pro

port

ion

of

the p

op

ula

tion

liv

ing

in

job

less

hou

seh

old

s (%

)

(1)

20

01

inst

ead o

f 2

00

0;

20

03

inst

ead o

f 2

00

4.

(2)

Data

refe

r to

the s

eco

nd q

uart

er

of

each

year;

20

00

, st

udent house

hold

s are

incl

uded;

20

04

, data

are

harm

onis

ed w

ith the L

abour

Forc

e S

urv

ey

meth

odolo

gy.

(3)

20

03

inst

ead o

f 2

00

4.

(4)

Bre

ak

in s

eri

es;

20

00

, data

refe

r to

the s

eco

nd q

uart

er

from

the L

abour

Forc

e S

urv

ey;

20

04

, data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng

Censu

s of

18

Marc

h 2

00

2.

2000

2004

2000

2004

EU

-25 (

1)

9.5

9.8

10.1

10.4

Bu

lgari

a (

2)

:15.6

15.5

13.7

Cro

ati

a (

3)

:10.4

:13.2

Ro

man

ia (

4)

7.2

11.1

8.4

11.1

Tu

rkey

::

::

Alb

an

ia:

::

:B

osn

ia a

nd

Herz

eg

ovin

a:

::

:Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

:K

oso

vo

:

::

:

Ch

ild

ren

ag

ed

0-1

7

(as

a p

rop

ort

ion

of

all

child

ren

ag

ed

0-1

7)

Pers

on

s ag

ed

18-5

9

(as

a p

rop

ort

ion

of

all

pers

on

s ag

ed

18-5

9)

For

most

EU

-25 c

ountr

ies,

rela

tive

ly h

igh t

ax

wedges

exi

st o

n labour. T

hese

may

well

reflect

th

e

import

ant

role

pla

yed

by

wage-b

ase

d

contr

ibutions

(fro

m

em

plo

yers

and

em

plo

yees)

in

financi

ng

the

soci

al

transf

ers

sy

stem

. Som

e

em

plo

yers

consi

der

such

hig

h r

ate

s as

a d

ete

rrent

that

pre

vents

them

fro

m h

irin

g

labour

and

oft

en

cite

th

is

pro

ble

m

as

a

reflect

ion

of

wid

er

labour

mark

et

rigid

itie

s, incl

udin

g a

hig

h p

roport

ion o

f co

llect

ive b

arg

ain

ing a

rrangem

ents

and

the w

eak r

ela

tionsh

ip b

etw

een c

ontr

ibutions

paid

and t

ransf

ers

rece

ived.

The

inte

ract

ion b

etw

een r

ela

tive

ly h

igh t

ax

wedges

and t

he t

ransf

ers

sys

tem

may

create

ince

ntive

s to

cert

ain

gro

ups

of

the p

opula

tion t

hat

enco

ura

ge t

hem

to

rem

ain

outs

ide t

he labour

mark

et

(for

exa

mple

, lo

w-w

age a

nd o

lder

work

ers

, as

well

as

spouse

s of

low

-inco

me e

arn

ers

).

The unem

plo

yment

trap is

use

d to

desc

ribe a si

tuation w

here

th

ere

is

lit

tle

dif

fere

nce

b

etw

een

b

en

efi

t in

com

e

an

d

the

inco

me

fro

m

wo

rk.

Th

e

unem

plo

yment

trap

is

part

icula

rly

influence

d

by

the

(pote

ntial)

dura

tion

of

unem

plo

yment

benefits

, as

in m

ost

countr

ies

the i

nce

ntive

s to

fin

d a

new

job

may

incr

ease

ove

r tim

e (

as

benefits

decl

ine).

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 35

(1)

20

02

; so

urc

e,

natio

nal acc

ounts

.(2

) 2

00

3;

sourc

e,

House

hold

Budget Surv

ey.

(3)

20

03

.3

36

Tab

le 3

.4:

Bre

ak

dow

n o

f h

ou

seh

old

exp

en

dit

ure

, 2004 (

%)

EU

-25

BG

(1)

HR

RO

TR

(2)

AL (

3)

BA

MK

CS

XK

To

tal h

ou

seh

old

exp

en

dit

ure

(EU

R b

illio

n)

5 5

81

12.0

16.0

:7.3

0.2

:2.6

::

Fo

od

an

d n

on

-alc

oh

olic

bevera

ges

(CO

ICO

P 0

1)

13.1

25.5

26.3

49.9

27.5

61.1

:44.9

::

Alc

oh

olic

bevera

ges,

to

bacc

o (

CO

ICO

P 0

2)

3.8

3.1

3.3

5.9

4.1

4.0

:4.6

::

Clo

thin

g a

nd

fo

otw

ear

(CO

ICO

P 0

3)

6.1

3.6

7.3

6.1

6.3

4.6

:8.0

::

Ho

usi

ng

, w

ate

r, e

lect

rici

ty, g

as

an

d o

ther

fuels

(C

OIC

OP 0

4)

21.5

22.7

29.3

14.6

28.3

8.7

:11.8

::

Fu

rnis

hin

gs,

ho

use

ho

ld e

qu

ipm

en

t an

d r

ou

tin

e m

ain

ten

an

ce o

f th

e h

ou

se (

CO

ICO

P 0

5)

6.6

3.3

4.5

3.2

5.7

8.3

:5.1

::

Healt

h (

CO

ICO

P 0

6)

3.5

3.9

1.8

2.8

2.2

::

3.2

::

Tra

nsp

ort

(C

OIC

OP 0

7)

13.5

15.4

9.1

5.6

9.8

3.1

:6.6

::

Co

mm

un

icati

on

(C

OIC

OP 0

8)

2.8

5.9

3.9

4.0

4.3

3.6

:4.1

::

Recr

eati

on

an

d c

ult

ure

(C

OIC

OP 0

9)

9.4

4.5

5.3

3.8

2.2

0.7

:3.6

::

Ed

uca

tio

n (

CO

ICO

P 1

0)

1.0

1.1

0.6

0.7

2.0

2.3

:0.5

::

Rest

au

ran

ts a

nd

ho

tels

(C

OIC

OP 1

1)

9.0

8.5

2.6

1.0

4.1

::

4.1

::

Pers

on

al ca

re (

CO

ICO

P 1

2.1

)9.9

2.6

3.1

2.0

3.5

0.1

:3.6

::

HO

USEH

OLD

CO

NSU

MP

TIO

N E

XP

EN

DIT

UR

E A

ND

SO

CIA

L E

XP

EN

DIT

UR

E

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 36

37

Fig

ure

3.3

: Soci

al

exp

en

dit

ure

as

a p

rop

ort

ion

of

GD

P, 2

004 (

%)

(1)

(1)

Bulg

ari

a,

Rom

ania

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and K

oso

vo,

not ava

ilable

; Tu

rkey,

soci

al pro

tect

ion e

xpenditu

re,

not

ava

ilable

. (2

) 2

00

1.

(3)

20

03

. (4

) 2

00

2.

0

10

20

30

EU

-25

(2)

BG

HR (3)

RO

TR

AL

(4)

BA

MK

CS (2)

XK

Health e

xpenditure

Soci

al p

rote

ctio

n e

xpenditure

Tota

l house

hold

consu

mption e

xpenditure

can b

e b

roken d

ow

n a

ccord

ing t

o

CO

ICO

P.

At

its

firs

t le

vel,

CO

ICO

P

identifies

12

cate

gories

of

consu

mption

exp

enditure

.

The m

ake-u

p o

f house

hold

exp

enditure

in t

he E

U h

as

shifte

d g

radually

fro

m b

asi

c

to le

ss basi

c needs,

fo

r exa

mple

, fr

om

pro

duct

s su

ch as

food,

cloth

ing and

housi

ng,

tow

ard

s th

e c

onsu

mption o

f item

s fo

r tr

ansp

ort

, le

isure

, re

creation a

nd

health.

There

was

a m

ark

ed d

iffe

rence

betw

een t

he p

roport

ion o

f to

tal

exp

enditure

acc

ounte

d f

or

by

food a

nd n

on-a

lcoholic

beve

rages

in t

he E

U-2

5 (

13.1

%)

and

the c

orr

esp

ondin

g f

igure

s fo

r th

e C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

where

exp

enditure

on t

hese

ite

ms

ranged b

etw

een 2

6 %

and 6

1 %

of

tota

l

exp

enditure

. N

ote

that

part

of

this

diffe

rence

may

be e

xpla

ined b

y th

e r

ela

tive

ly

low

cost

of

housi

ng in s

om

e C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

as

a

resu

lt o

f price

s not

reflect

ing t

rue m

ark

et

valu

es

in a

num

ber

of

terr

itories.

Soci

al

ind

ica

tors

CH03.QXD 27/10/05 10:55 Page 37

(1)

Up u

ntil

19

99

data

were

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Adm

inis

trativ

e d

ata

.(5

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

4

38

Tab

le 4

.1:

Em

plo

ym

en

t ra

te -

pro

port

ion

of

the p

op

ula

tion

ag

ed

15-6

4 t

ha

t is

in

em

plo

ym

en

t (%

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

60.6

61.2

62.0

62.4

62.8

62.8

62.9

63.3

Bu

lgari

a (

1)

52.4

54.0

54.1

53.7

51.2

50.4

49.7

50.6

52.5

54.2

Cro

ati

a (

2)

:58.7

57.1

55.3

53.2

51.3

51.8

53.6

53.2

54.3

Ro

man

ia (

3)

::

65.9

64.3

63.5

63.2

62.6

58.0

57.8

57.9

Tu

rkey

52.4

52.5

51.3

51.4

50.8

48.9

47.8

46.7

45.5

46.1

Alb

an

ia (

4)

::

::

55.7

55.0

52.1

52.1

51.1

50.0

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(5)

::

:36.5

36.1

36.0

36.8

35.7

34.3

33.8

Serb

ia a

nd

Mo

nte

neg

ro:

::

:57.9

58.8

58.8

57.9

57.2

:

Ko

so

vo

:

::

::

:42.9

45.0

50.3

:

EM

PLO

YM

EN

T R

ATES A

ND

ACTIV

ITY R

ATES

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 38

39

Fig

ure

4.1

: Eco

nom

ic a

ctiv

ity r

ate

- p

rop

ort

ion

of

the p

op

ula

tion

ag

ed

15-6

4th

at

is e

con

om

ica

lly a

ctiv

e,

2004 (

%)

(1)

(1)

Bosn

ia a

nd H

erz

egovi

na,

not ava

ilable

. (2

) 2

00

3.

(3)

Seco

nd h

alf o

f th

e y

ear.

(4)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

data

have

been w

eig

hte

d b

ase

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(5)

Weig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

. (6

) A

dm

inis

trativ

e d

ata

. (7

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

0

25

50

75

100

EU

-25

(2)

BG

HR (3)

RO

(4)

TR (5)

AL

(6)

BA

MK

(7)

CS (2)

XK

(2)

The

labour

forc

e

is

made

up

of

em

plo

yed

and

unem

plo

yed

pers

ons,

w

ith

eco

nom

ic a

ctiv

ity

rate

s bein

g c

alc

ula

ted a

s th

e r

atio o

f th

ose

act

ive in t

he labour

forc

e (either

work

ing o

r se

ekin

g w

ork

) to

the t

ota

l popula

tion. Em

plo

yment

rate

s

measu

re t

he p

roport

ion o

f th

ose

in w

ork

com

pare

d w

ith t

he t

ota

l popula

tion.

Ther

e ar

e th

ree

spec

ific

em

plo

ymen

t guid

elin

es t

hat

hav

e bee

n s

et a

s ben

chm

ark

targ

ets

for

the

EU-2

5 in o

rder

to h

elp a

chie

ve t

he

Lisb

on o

bje

ctiv

es o

f m

akin

g t

he

EU t

he

most

com

pet

itiv

e an

d d

ynam

ic k

now

ledge-

bas

ed e

conom

y in

the

world b

y

2010, w

hile

at

the

sam

e tim

e pro

moting f

ull

emplo

ymen

t, q

ual

ity

and p

roduct

ivity

at w

ork

, so

cial

cohes

ion a

nd in

clusi

on. Th

e ta

rget

s re

late

to e

mplo

ymen

t ra

tes,

with

the

goal

of

achie

ving a

n o

vera

ll em

plo

ymen

t ra

te o

f at

lea

st 7

0 %

, one

of

at lea

st

60 %

am

ong w

om

en,

and a

t le

ast

50 %

for

old

er p

eople

.

There

were

sig

ns

in 2

004 t

hat

the e

mplo

yment

rate

in t

he E

U-2

5 w

as

incr

easi

ng

aft

er

a p

eriod o

f st

agnation.

How

eve

r, in o

rder

to r

each

the 2

010 t

arg

ets

furt

her

labour

mark

et

refo

rms

are

lik

ely

to b

e r

equired,

in p

art

icula

r w

ith r

esp

ect

to t

he

em

plo

yment

pro

spect

s of

wom

en,

old

er

people

, and t

hose

with a

low

leve

l of

skill

s. T

he E

uro

pean C

om

mis

sion b

elie

ves

that

this

is

most

lik

ely

to b

e a

chie

ved

by

fost

ering e

mplo

yment

creation in t

he s

erv

ices

sect

or.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 39

(1)

Up u

ntil

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

. (2

) Seco

nd h

alf o

f th

e y

ear. (

3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Adm

inis

trativ

e d

ata

. (5

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

4

40

Tab

le 4

.2:

Em

plo

ym

en

t ra

tes

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

70.2

70.6

71.0

71.2

71.3

71.0

70.8

70.9

Bu

lgari

a (

1)

56.0

57.7

58.0

57.5

55.1

54.7

52.7

53.7

56.0

58.0

Cro

ati

a (

2)

:65.8

63.6

61.7

59.0

57.4

59.0

60.1

59.6

60.7

Ro

man

ia (

3)

::

72.8

70.9

69.5

69.1

68.2

64.1

64.1

63.6

Tu

rkey

74.6

74.9

74.8

74.3

72.7

71.7

69.3

66.9

65.9

67.9

Alb

an

ia (

4)

::

::

69.0

66.0

64.0

63.9

62.6

60.8

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(5)

::

:46.8

46.1

46.0

46.0

44.9

42.4

41.7

Serb

ia a

nd

Mo

nte

neg

ro:

::

:66.7

67.8

67.7

66.8

66.4

:

Ko

so

vo

:

::

::

:48.2

54.8

59.7

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

51.1

51.8

52.9

53.6

54.3

54.7

55.0

55.7

Bu

lgari

a (

1)

48.8

50.4

50.3

49.9

47.5

46.3

46.8

47.5

49.0

50.6

Cro

ati

a (

2)

:51.9

50.9

49.4

47.8

45.5

44.9

47.4

47.0

47.9

Ro

man

ia (

3)

::

59.2

57.7

57.5

57.5

57.1

52.0

51.5

52.1

Tu

rkey

30.2

30.3

28.0

28.5

28.9

26.2

26.3

26.6

25.2

24.3

Alb

an

ia (

4)

::

::

42.3

44.1

39.6

39.7

39.1

38.7

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(5)

::

:26.1

26.0

26.0

27.5

26.2

26.0

25.7

Serb

ia a

nd

Mo

nte

neg

ro:

::

:49.5

50.1

49.7

49.0

48.1

:

Ko

so

vo

:

::

::

:30.1

25.5

28.1

:

Fem

ale

em

plo

ym

en

t ra

te: p

rop

ort

ion

of

the f

em

ale

po

pu

lati

on

ag

ed

15-6

4 t

hat

is in

em

plo

ym

en

t (%

)

Male

em

plo

ym

en

t ra

te: p

rop

ort

ion

of

the m

ale

po

pu

lati

on

ag

ed

15-6

4 t

hat

is in

em

plo

ym

en

t (%

)

EM

PLO

YM

EN

T R

ATES A

ND

ACTIV

ITY R

ATES B

Y G

EN

DER

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 40

41

Fig

ure

4.2

: Eco

nom

ic a

ctiv

ity r

ate

s, 2

004 (

1)

(1)

Turk

ey,

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na a

nd S

erb

ia a

nd M

onte

negro

, not ava

ilable

.(2

) 2

00

3.

(3)

Seco

nd h

alf o

f th

e y

ear. (

4)

Consc

ripts

are

incl

uded in the a

ctiv

epopula

tion;

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd

Housi

ng C

ensu

s of

18

Marc

h 2

00

2.

(5)

Unpaid

fam

ily w

ork

ers

are

exc

luded.

0

25

50

75

100

EU

-25

(2)

BG

HR (3)

RO

(4)

TR

AL

BA

MK

(5)

CS

XK

(2)

Male

: pro

port

ion o

f th

e m

ale

popula

tion a

ged 1

5-6

4 t

hat

is e

conom

ically

act

ive (%

)

Fem

ale

: pro

port

ion o

f th

e f

em

ale

popula

tion a

ged 1

5-6

4 t

hat

is e

conom

ically

act

ive (%

)

Male

act

ivity

rate

s genera

lly t

end t

o b

e h

igher

than f

em

ale

act

ivity

rate

s, a

s m

en

have

tra

ditio

nally

work

ed w

hile

wom

en h

ave

been m

ore

lik

ely

to s

tay

at

hom

e

takin

g c

are

of

the h

ouse

, ch

ildre

n a

nd o

ther

dependents

. There

has

been a

n

incr

ease

in f

em

ale

em

plo

yment

rate

s in

the E

U-2

5 in

rece

nt

years

, co

ntr

ary

to t

he

situ

ation i

n t

he m

ajo

rity

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

where

fem

ale

em

plo

yment

rate

s fe

ll, o

ften f

rom

what

were

already

rela

tive

ly lo

w

leve

ls.

Fem

ale

em

plo

yment

rate

s in

the E

U-2

5 r

each

ed 5

5.7

% in 2

004.

The E

uro

pean C

om

mis

sion b

elie

ves

that

the k

ey

to in

creasi

ng e

mplo

yment

in t

he

serv

ices

sect

or

lies

in t

he c

reation o

f jo

bs

in h

ighly

pro

duct

ive a

ctiv

itie

s, s

uch

as

som

e b

usi

ness

serv

ices,

educa

tion,

health a

nd s

oci

al

serv

ices.

It

is h

oped t

hat

if

dem

and f

or

these

serv

ices

incr

ease

s (p

erh

aps

in p

art

thro

ugh p

ublic

spendin

g)

then t

here

will

be a

n in

crease

in e

mplo

yment

rate

s, in

part

icula

r fo

r w

om

en, w

ho

are

oft

en a

ttra

cted t

o t

hese

sect

ors

.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 41

(1)

Until

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Unpaid

fam

ily w

ork

ers

are

exc

luded.

4

42

Tab

le 4

.3:

Em

plo

ym

en

t ra

te o

f old

er

work

ers

- p

rop

ort

ion

of

the p

op

ula

tion

ag

ed

55-6

4 t

ha

t is

in

em

plo

ym

en

t (%

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

60.6

61.2

62.0

62.4

62.8

62.8

62.9

63.3

Bu

lgari

a (

1)

18.8

19.4

21.3

21.5

20.1

20.8

24.0

27.0

30.0

32.5

Cro

ati

a (

2)

:31.1

29.1

25.6

25.9

24.2

23.7

26.8

29.0

30.4

Ro

man

ia (

3)

::

51.9

50.8

49.6

49.5

48.2

37.7

38.1

36.9

Tu

rkey

41.7

41.6

40.5

41.1

39.3

36.3

35.9

35.3

32.7

33.1

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(4)

::

:23.3

23.2

23.0

23.7

22.5

24.4

21.9

Serb

ia a

nd

Mo

nte

neg

ro:

::

:20.5

20.7

19.9

18.4

18.0

:

Ko

so

vo

:

::

::

::

::

:

EM

PLO

YM

EN

T R

ATES A

ND

AC

TIV

ITY R

ATES F

OR

OLD

ER

WO

RK

ER

S (

AG

ED

55

-64)

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 42

43

Fig

ure

4.3

: Em

plo

ym

en

t ra

tes

of

old

er

work

ers

, 2004 (

1)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not

ava

ilable

. (2

) Seco

nd h

alf o

f th

e y

ear. (

3)

Consc

ripts

are

incl

uded in the a

ctiv

epopula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

fth

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Unpaid

fam

ily w

ork

ers

are

exc

luded.

0

25

50

75

100

EU

-25

BG

HR (2)

RO

(3)

TR

AL

BA

MK

(4)

CS

XK

Male

: pro

port

ion o

f th

e m

ale

popula

tion a

ged 5

5-6

4 t

hat

is in

em

plo

yment

(%)

Fem

ale

: pro

port

ion o

f th

e f

em

ale

popula

tion a

ged 5

5-6

4 t

hat

is in

em

plo

yment

(%)

Much

is

writt

en c

once

rnin

g t

he u

nta

pped p

ote

ntial of

the o

lder

work

forc

e a

s a

sourc

e o

f additio

nal em

plo

yment.

There

is

oft

en a

n im

bala

nce

betw

een t

he s

kill

s

of

those

old

er

pers

ons

seekin

g w

ork

and t

he s

kill

s re

quired f

or

new

ly c

reate

d

post

s. W

hile

old

er

work

ers

have

in g

enera

l a b

ett

er

posi

tion in t

erm

s of

pay

and

contr

act

ual

arr

angem

ents

(co

mpare

d w

ith y

ounger

work

ers

), w

hen t

hey

are

in

low

pay

or

tem

pora

ry

em

plo

yment

they

have

gre

at

difficu

lty

to

rem

ain

or

pro

gre

ss in t

he labour

mark

et.

As

life e

xpect

ancy

ris

es,

it

is l

ikely

that

in t

he f

utu

re a

hig

her

pro

port

ion o

f th

e

old

er

popula

tion w

ill r

em

ain

in e

mplo

yment

for

a longer

period o

f tim

e.

Indeed,

som

e g

ove

rnm

ents

are

giv

ing c

onsi

dera

tion t

o r

ais

ing c

om

puls

ory

retire

ment

ages

in an att

em

pt

to re

duce

so

cial

transf

ers

and in

crease

re

venue re

ceip

ts.

Em

plo

yment

rate

s am

ong o

lder

work

ers

in t

he E

U-2

5 r

ose

to 6

3.3

% i

n 2

004,

whic

h w

as

well

above

the c

orr

esp

ondin

g leve

ls f

ound in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

where

em

plo

yment

rate

s fo

r old

er

work

ers

were

falli

ng

exc

ept

in B

ulg

aria a

nd R

om

ania

.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 43

(1)

Until

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Weig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

e a

vera

ge r

ate

s of

the f

our

quart

ers

.(5

) A

dm

inis

trativ

e d

ata

.(6

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

4

44

Tab

le 4

.4:

Tota

l n

um

ber

of

pers

on

s in

em

plo

ym

en

t (t

hou

san

ds)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:185 2

33

187 0

77

190 1

81

192 4

89

195 3

76

197 9

43

198 7

67

199 3

37

200 4

91

Bu

lgari

a (

1)

2 9

84

3 0

66

3 0

60

3 0

35

2 8

75

2 7

95

2 6

99

2 7

40

2 8

34

2 9

22

Cro

ati

a (

2)

:1 5

40

1 5

93

1 5

49

1 4

79

1 5

72

1 4

78

1 5

34

1 5

35

1 5

42

Ro

man

ia (

3)

::

11 0

50

10 8

45

10 7

76

10 7

64

10 6

97

9 2

34

9 2

23

9 1

58

Tu

rkey (

4)

20 5

86

21 1

95

21 2

04

21 7

79

22 0

50

21 5

82

21 5

25

21 3

54

21 1

46

21 7

90

Alb

an

ia (

5)

1 1

38

1 1

16

1 1

07

1 0

85

1 0

65

1 0

68

920

920

926

931

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(6)

::

::

::

512

492

481

477

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

NU

MB

ER

OF P

ER

SO

NS E

MP

LO

YED

AN

D E

MP

LO

YM

EN

T B

Y S

ECTO

R

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 44

45

Fig

ure

4.4

: B

rea

kd

ow

n o

f em

plo

ym

en

t, 2

004 (

% o

f to

tal)

(1)

(1)

Bosn

ia a

nd H

erz

egovi

na a

nd S

erb

ia a

nd M

onte

negro

, not ava

ilable

. (2

) Sourc

e,

natio

nal acc

ounts

. (3

) Sourc

e,

Labour

Forc

e S

urv

ey.

(4

) Seco

nd h

alf o

f th

e y

ear.

(5)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

data

have

been w

eig

hte

d b

ase

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(6)

Serv

ices

defined a

s N

AC

E S

ect

ions

G to Q

; w

eig

hte

d a

nnual La

bour

Forc

e S

urv

ey

resu

lts,

not th

eave

rage r

ate

s of

the f

our

quart

ers

. (7

) A

dm

inis

trativ

e d

ata

. (8

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

(9)

20

03

.

0%

25%

50%

75%

100%

EU

-25

(2)

BG

(3)

HR (4)

RO

(5)

TR (6)

AL

(7)

BA

MK

(8)

CS

XK

(9)

Agricu

lture

, fo

rest

ry a

nd f

ishin

gIn

dust

ryC

onst

ruct

ion

Serv

ices

The info

rmation p

rese

nte

d o

n t

he leve

l of

tota

l em

plo

yment

pro

vides

a c

ount

of

the n

um

ber

of

pers

ons

em

plo

yed (

em

plo

yees

and t

he s

elf-e

mplo

yed).

Note

that

em

plo

yment

gro

wth

in t

he E

U-2

5 w

as

rela

tive

ly s

low

during t

he p

eriod 2

001 t

o

2003 i

n c

om

pariso

n w

ith t

he l

ate

1990s.

How

eve

r, t

here

were

sig

ns

that

the

num

ber

of

jobs

in t

he E

U-2

5 w

as

start

ing t

o r

ise a

t a q

uic

ker

pace

in 2

004. In

the

Candid

ate

co

untr

ies

and th

e W

est

ern

Balk

ans

the la

rgest

co

ntr

act

ion in

th

e

work

forc

e (

in b

oth

rela

tive

and a

bso

lute

term

s) b

etw

een 2

000 a

nd 2

004 w

as

reco

rded in

Rom

ania

, w

hile

Bulg

aria a

nd T

urk

ey

were

the o

nly

terr

itories

to report

a n

et

incr

ease

in e

mplo

yment

leve

ls.

The b

reakdow

n o

f em

plo

yment

betw

een d

iffe

rent

eco

nom

ic s

ect

ors

show

s gre

at

dis

parity

betw

een t

he E

U-2

5 a

nd t

he m

ajo

rity

of

the C

andid

ate

countr

ies

and

West

ern

Balk

an t

err

itories.

The s

erv

ice s

ect

or

em

plo

yed a

hig

her

pro

port

ion o

f

pers

ons

in

the

EU

-25,

while

agricu

lture

, fo

rest

ry

and

fish

ing

em

plo

yed

a

consi

dera

bly

hig

her

pro

port

ion o

f pers

ons

in t

he C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans.

Serv

ices

em

plo

yed just

ove

r tw

o t

hirds

of

the w

ork

forc

e in t

he

EU

-25, w

hile

in A

lbania

the c

orr

esp

ondin

g p

roport

ion w

as

27.9

%. O

n t

he o

ther

hand,

5.4

% o

f th

ose

em

plo

yed in t

he E

U-2

5 w

ork

ed in a

gricu

lture

, fo

rest

ry a

nd

fish

ing,

com

pare

d w

ith u

pw

ard

s of

30 %

in R

om

ania

, Tu

rkey

and A

lbania

.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 45

(1)

Until

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Adm

inis

trativ

e d

ata

; unem

plo

yment re

fers

to r

egis

tere

d u

nem

plo

yment.

(5)

The u

nem

plo

yment ra

te is

not ca

lcula

ted u

sing the ILO

meth

odolo

gy;

the c

alc

ula

tion is:

unem

plo

yment ra

te =

(num

ber

of

unem

plo

yed p

eople

) /

(num

ber

of

unem

plo

yed p

eople

+num

ber

of

em

plo

yed p

eople

); the n

um

ber

of

unem

plo

yed p

eople

is

take

n f

rom

the B

ure

au f

or

Unem

plo

yment (i.e

. an a

dm

inis

trativ

e r

egis

ter)

.(6

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

4

46

Tab

le 4

.5:

Un

em

plo

ym

en

t ra

te -

pro

port

ion

of

the l

ab

ou

r fo

rce a

ged

15-7

4 t

ha

t is

un

em

plo

yed

(%

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:9.5

9.1

8.6

8.4

8.7

9.0

9.0

Bu

lgari

a (

1)

16.5

14.1

14.4

14.1

15.7

16.4

19.2

17.8

13.6

11.9

Cro

ati

a (

2)

:10.0

10.0

11.7

14.5

17.0

16.3

14.4

14.4

13.8

Ro

man

ia (

3)

::

6.0

6.3

6.8

7.1

6.6

8.4

7.0

8.0

Tu

rkey

7.6

6.6

6.8

6.9

7.7

6.5

8.4

10.3

10.5

10.3

Alb

an

ia (

4)

::

::

18.4

16.8

16.4

15.8

15.0

14.4

Bo

snia

an

d H

erz

eg

ovin

a (

5)

::

::

39.4

39.7

40.0

41.1

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(6)

::

:36.5

34.8

34.8

33.9

34.8

39.6

39.3

Serb

ia a

nd

Mo

nte

neg

ro:

::

:13.7

12.6

12.9

13.8

15.2

:

Ko

so

vo

:

::

::

:57.1

55.0

49.7

:

UN

EM

PLO

YM

EN

T R

ATES

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 46

47

Fig

ure

4.5

: U

nem

plo

ym

en

t ra

tes,

2004 (

1)

(1)

Bosn

ia a

nd H

erz

egovi

na,

not ava

ilable

. (2

) Seco

nd h

alf o

f th

e y

ear. (

3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

dupon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Adm

inis

trativ

e d

ata

; unem

plo

yment re

fer

to r

egis

tere

d u

nem

plo

yment. (

5)

Unpaid

fam

ily w

ork

ers

are

exc

luded.

(6)

20

03

.

0

20

40

60

80

EU

-25

BG

HR (2)

RO

(3)

TR

AL

(4)

BA

MK

(5)

CS (6)

XK

(6)

Male

unem

plo

yment

rate

(%

)Fe

male

unem

plo

yment

rate

(%

)

Unem

plo

ymen

t ra

tes

mea

sure

th

ose

per

sons

aged

15 to

74 w

ho w

ere

not

in

emplo

ymen

t but

wer

e ac

tive

ly s

eeki

ng w

ork

. In

oth

er w

ord

s, t

he

unem

plo

ymen

t

rate

is

the

pro

port

ion o

f unem

plo

yed p

erso

ns

rela

tive

to t

he

all

per

sons

who a

re

active

in t

he

labour

forc

e (e

mplo

yed o

r se

ekin

g e

mplo

ymen

t). W

hile

unem

plo

ymen

t

rate

s giv

e an

ove

rall

pic

ture

of

the

failu

re t

o m

atch

supply

and d

eman

d in

the

labour

mar

ket,

lab

our

mar

ket

polic

ies

are

incr

easi

ngly

focu

sing o

n indic

ators

such

as

ratios

of

those

movi

ng f

rom

long-t

erm

unem

plo

ymen

t or

inac

tivi

ty into

em

plo

ymen

t, o

r

those

movi

ng fro

m tem

pora

ry in

to p

erm

anen

t em

plo

ymen

t, a

nd those

movi

ng fro

m

bel

ow

low

pay

thre

shold

s in

to h

igher

pai

d e

mplo

ymen

t.

The E

U-2

5's

unem

plo

yment

rate

was

9.0

% i

n 2

004,

whic

h w

as

unch

anged

when c

om

pare

d w

ith 2

003. Rom

ania

(8.0

%) w

as

the o

nly

one o

f th

e C

andid

ate

countr

ies

or

West

ern

Balk

ans

to r

eport

unem

plo

yment

belo

w t

he E

U-2

5 a

vera

ge.

In t

he W

est

ern

Balk

ans,

unem

plo

yment

rate

s w

ere

rela

tive

ly h

igh, risi

ng t

o a

bove

one t

hird o

f th

e l

abour

forc

e i

n B

osn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and

Kosovo.

These

ra

tes

may,

at

least

in

part

, be

ass

oci

ate

d w

ith h

igh n

um

bers

of

inte

rnally

dis

pla

ced p

ers

ons

and r

efu

gees

and

dis

loca

ted e

conom

ies.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 47

(1)

Until

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and u

nem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

ly d

eri

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not co

nsi

dere

d a

nact

ive m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Base

d o

n the L

ivin

g C

onditi

ons

Surv

ey

of

19

98

and the L

ivin

g S

tandard

s M

easu

rem

ent Stu

dy

of

20

02

.(5

) U

npaid

fam

ily w

ork

ers

are

exc

luded.

4

48

Tab

le 4

.6:

You

th u

nem

plo

ym

en

t ra

te -

pro

port

ion

of

the l

ab

ou

r fo

rce a

ged

less

th

an

25 t

ha

t is

un

em

plo

yed

(%

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:19.4

18.4

17.4

17.6

18.1

18.6

18.6

Bu

lgari

a (

1)

39.3

34.4

34.7

32.2

34.0

33.7

38.0

35.0

27.1

24.4

Cro

ati

a (

2)

:26.7

28.5

31.0

39.2

43.1

41.7

34.4

35.8

33.8

Ro

man

ia (

3)

::

18.0

18.3

18.8

18.6

17.5

21.7

18.5

21.0

Tu

rkey

15.5

13.5

14.3

14.2

15.0

13.1

16.2

19.2

20.5

19.6

Alb

an

ia (

4)

::

::

::

:26.8

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(5)

::

:77.0

71.6

69.8

67.8

69.3

74.1

71.2

Serb

ia a

nd

Mo

nte

neg

ro:

::

:53.1

49.6

46.8

45.6

45.6

:

Ko

so

vo

:

::

::

:80.0

77.7

74.9

:

YO

UTH

AN

D L

ON

G-T

ER

M U

NEM

PLO

YM

EN

T R

ATES

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 48

49

Tab

le 4

.7:

Lon

g-t

erm

un

em

plo

ym

en

t ra

tes

- p

rop

ort

ion

of

the l

ab

ou

r fo

rce

ag

ed

15-7

4 t

ha

t h

ave b

een

un

em

plo

yed

for

more

th

an

12 m

on

ths,

2004 (

%)

(1)

Until

19

99

data

are

calc

ula

ted a

ccord

ing to n

atio

nal definiti

ons

of

em

plo

yment and

unem

plo

yment; the m

ain

diffe

rence

s are

the f

ollo

win

g:

consc

ripts

are

incl

uded in the

popula

tion f

igure

s and a

re c

onsi

dere

d a

s in

act

ive;

unem

plo

yment data

are

dir

ect

lyderi

ved f

rom

the L

abour

Forc

e S

urv

ey

resu

lts;

studyi

ng job a

dve

rtis

em

ents

is

not

consi

dere

d a

n a

ctiv

e m

eth

od o

f jo

b s

earc

h u

p u

ntil

20

02

.(2

) Seco

nd h

alf o

f th

e y

ear.

(3)

Consc

ripts

are

incl

uded in the a

ctiv

e p

opula

tion;

begin

nin

g w

ith 2

00

2,

data

have

been w

eig

hte

d b

ase

d u

pon the r

esu

lts o

f th

e P

opula

tion a

nd H

ousi

ng C

ensu

s of

18

Marc

h 2

00

2.

(4)

Unpaid

fam

ily w

ork

ers

are

exc

luded.

To

tal

Male

Fem

ale

EU

-25

4.1

3.6

4.7

Bu

lgari

a (

1)

7.1

7.2

7.0

Cro

ati

a (

2)

6.9

5.4

8.7

Ro

man

ia (

3)

4.7

5.5

3.8

Tu

rkey

4.0

3.8

4.4

Alb

an

ia:

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(4)

33.5

32.7

34.9

Serb

ia a

nd

Mo

nte

neg

ro:

::

Ko

so

vo

:

::

The y

outh

unem

plo

yment

rate

is

defined a

s th

e p

roport

ion o

f yo

ung p

ers

ons

aged 1

5 t

o 2

4 w

ho a

re u

nem

plo

yed. In

the E

U-2

5, th

e y

outh

unem

plo

yment

rate

(18.6

%)

in 2

004 w

as

double

the a

vera

ge f

or

the w

hole

of

the l

abour

forc

e.

A

sim

ilar

pic

ture

was

obse

rved in

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

as

youth

unem

plo

yment

ranged f

rom

bein

g 1

.5 t

imes

hig

her

in K

osovo

to 3

.0

tim

es

hig

her

in S

erb

ia a

nd M

onte

negro

.

Long-t

erm

unem

plo

yment

is d

efined a

s th

e p

roport

ion o

f th

e l

abour

forc

e t

hat

has

been u

nem

plo

yed f

or

12 m

onth

s or

more

. It i

s one o

f th

e m

ost

pers

iste

nt,

soci

al

issu

es

faci

ng i

ndust

rialis

ed e

conom

ies.

In m

ost

countr

ies

the l

ong-t

erm

unem

plo

yed f

ace

reduct

ions

in s

oci

al

transf

ers

and b

enefits

that

are

rela

ted t

o

the period th

ey

rem

ain

unem

plo

yed.

Alm

ost

half of

the unem

plo

yed in

th

e

EU

-25, m

ore

than 8

mill

ion p

eople

, w

ere

unem

plo

yed f

or

a y

ear

or

more

in 2

004.

Two

gro

ups

in

the

work

forc

e

are

dis

pro

port

ionate

ly

pro

ne

to

long-t

erm

unem

plo

yment.

The m

ost

sig

nific

ant

gro

up is

that

of

old

er

work

ers

(part

icula

rly

those

losi

ng t

heir jobs

in t

raditio

nal in

dust

rial se

ctors

), w

hose

share

in long-t

erm

unem

plo

yment

would

be e

ven g

reate

r if t

here

were

not

hig

h r

ate

s of

withdra

wal

from

the labour

forc

e d

ue t

o f

act

ors

such

as

early

retire

ment.

Oth

erw

ise,

fem

ale

long-t

erm

unem

plo

yment

rate

s te

nd t

o b

e h

igher

than m

ale

rate

s although t

his

was

not

the c

ase

in B

ulg

aria a

nd R

om

ania

in 2

004.

La

bou

r fo

rce

CH04.QXD 27/10/05 10:55 Page 49

(1)

19

95

, usi

ng m

ark

et exc

hange r

ate

s; 1

99

6 to 2

00

0,

reca

lcula

ted u

sing the W

orl

d B

ank

meth

od w

ith m

ark

et exc

hange r

ate

s; b

egin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

gKoso

vo a

nd M

eto

hia

. (2

) 1

99

5 to 1

99

9 a

t 1

99

4 c

onst

ant pri

ces,

base

d o

n M

ate

rial Pr

oduct

Sys

tem

; 2

00

0 to 2

00

4,

at 2

00

1 c

onst

ant

pri

ces;

begin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

.

5

50

Tab

le 5

.1:

GD

P

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

6 8

39 3

64

7 2

02 6

82

7 6

03 4

34

7 9

75 6

99

8 3

82 0

07

8 9

77 2

60

9 3

27 0

47

9 6

72 0

05

9 8

11 8

05

10 2

66 4

71

Bu

lgari

a10 1

39

7 9

91

9 2

32

11 3

68

12 1

64

13 6

79

15 1

90

16 5

33

17 6

64

19 4

34

Cro

ati

a14 3

91

15 6

57

17 7

39

19 3

05

18 6

77

19 9

77

22 1

77

24 2

19

25 5

26

27 6

29

Ro

man

ia27 4

33

28 1

96

31 2

60

37 4

20

33 4

89

40 2

78

44 8

65

48 4

64

50 6

81

58 9

14

Tu

rkey

129 9

79

144 5

83

167 9

16

180 6

12

172 7

65

216 3

72

163 2

10

192 9

05

213 0

52

242 0

45

Alb

an

ia:

::

:3 2

27

4 0

04

4 5

75

4 7

20

4 9

65

6 1

10

Bo

snia

an

d H

erz

eg

ovin

a:

::

:4 3

99

4 9

14

5 3

58

5 9

57

6 2

91

6 8

72

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

3 3

10

3 1

93

3 4

48

3 8

93

3 8

39

4 0

01

4 1

05

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

8 2

24

10 9

73

14 5

61

14 0

03

9 4

77

9 8

21

13 1

59

16 4

50

18 2

53

:

Ko

so

vo

:

::

::

:1 6

25

1 7

35

1 7

97

1 8

95

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:1.8

2.7

3.0

2.9

3.7

1.8

1.1

1.0

2.3

Bu

lgari

a2.9

-9.4

-5.6

4.0

2.3

5.4

4.1

4.9

4.5

5.6

Cro

ati

a:

5.9

6.8

2.5

-0.9

2.9

4.4

5.2

4.3

3.7

Ro

man

ia7.1

3.9

-6.1

-4.8

-1.2

2.1

5.7

5.1

5.2

8.3

Tu

rkey

7.2

7.0

7.5

3.1

-4.7

7.4

-7.5

7.9

5.8

8.9

Alb

an

ia:

9.1

-10.2

12.7

10.1

7.3

7.0

2.9

5.7

6.0

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

1.4

3.4

4.3

4.5

-4.5

0.9

2.8

:

Serb

ia a

nd

Mo

nte

neg

ro (

2)

6.1

5.9

7.4

2.5

-17.7

5.2

5.3

3.8

2.1

8.3

Ko

so

vo

:

::

::

::

1.2

3.1

3.2

GD

P (

EU

R m

illio

n)

GD

P g

row

th -

base

d o

n c

on

stan

t p

rice

nati

on

al cu

rren

cy s

eri

es

(%)

GD

P

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 50

51

Fig

ure

5.1

: G

DP

per

cap

ita

, 2004 (

EU

R)

(1)

Mid

-year

popula

tion f

igure

s use

d to c

alc

ula

te p

er

capita

valu

es;

sourc

e,

genera

lce

nsu

s of

popula

tion.

(2)

20

03

. (3

) 2

00

3;

exc

ludin

g K

oso

vo a

nd M

eto

hia

. (4

) N

atio

nal acc

ounts

est

imate

s.

0

5 0

00

10 0

00

15 0

00

20 0

00

25 0

00

EU

-25

BG

HR

RO

TR (1)

AL

BA

MK

(2)

CS (3)

XK

(4)

Gro

ss d

om

est

ic p

roduct

(G

DP)

is t

he c

entr

al

aggre

gate

of

national

acc

ounts

(as

defined in E

SA

95).

The C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

togeth

er

acc

ounte

d f

or

the

equiv

ale

nt

of

3.8

% o

f th

e E

U-2

5's

GD

P i

n 2

004 (

data

for

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and f

or

Serb

ia a

nd M

onte

negro

are

for

2003).

Cro

atia

had th

e hig

hest

G

DP per

capita am

ong th

e C

andid

ate

and W

est

ern

Balk

an

countr

ies

in 2

004,

with a

valu

e t

hat

was

just

ove

r one q

uart

er

the a

vera

ge leve

l

reco

rded w

ithin

the E

U-2

5.

Const

ant

price

GD

P g

row

th w

as

consi

dera

bly

hig

her

in t

he C

andid

ate

countr

ies

when c

om

pare

d w

ith d

ata

for

the E

U-2

5 d

uring t

he p

eriod 2

000 t

o 2

004.

While

EU

-25 g

row

th a

lmost

sta

gnate

d in 2

002 a

nd 2

003,

annual ra

tes

of

change w

ere

in e

xcess

of

4 %

per

annum

in e

ach

of

the C

andid

ate

countr

ies.

The p

ictu

re i

n

the W

est

ern

Balk

ans

was

less

cle

ar, w

ith r

apid

GD

P g

row

th i

n A

lbania

, a s

harp

uptu

rn i

n S

erb

ia a

nd M

onte

negro

in 2

004,

and a

more

modest

pro

gre

ssio

n

(although u

sually

above

the E

U-2

5 a

vera

ge)

in t

he f

orm

er

Yugosl

av

Republic

of

Mace

donia

and K

osovo.

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 51

(1)

Begin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

.(2

) Pr

ovi

sional data

for

the p

opula

tion in 2

00

4,

deri

ved f

rom

natio

nal acc

ounts

est

imate

s of

1.9

65

mill

ion p

ers

ons;

valu

es

for

this

indic

ato

r are

dis

tort

ed b

y a v

ery

hig

h r

atio

of

import

sto

exp

ort

s of

goods

and s

erv

ices.

5

52

Tab

le 5

.2:

Fin

al

con

sum

pti

on

exp

en

dit

ure

, a

s a

pro

port

ion

of

GD

P (

%)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

78.3

78.8

78.4

78.0

78.4

78.6

78.9

79.2

79.4

79.1

Bu

lgari

a85.9

86.5

85.5

82.9

87.9

87.1

86.9

86.8

87.7

86.9

Cro

ati

a:

::

:85.4

84.9

83.6

82.1

79.3

77.9

Ro

man

ia81.3

82.6

86.4

90.3

88.7

86.1

85.2

84.0

84.9

86.3

Tu

rkey

79.4

81.2

80.6

79.9

81.6

83.4

81.8

80.2

80.5

79.9

Alb

an

ia:

77.1

100.2

93.9

79.9

78.9

81.6

83.3

84.6

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

92.6

92.6

90.3

92.6

94.8

99.5

97.0

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

90.5

98.9

96.9

98.8

::

::

Ko

so

vo

(2

):

::

::

:163.1

151.6

147.5

140.7

FIN

AL C

ON

SU

MP

TIO

N E

XP

EN

DIT

UR

E A

ND

BR

EA

KD

OW

N O

F G

DP

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 52

53

Tab

le 5

.3:

Bre

ak

dow

n o

f G

DP,

2004 (

% s

ha

re o

f G

DP

)

(1)

Koso

vo, house

hold

s only, ex

cludes

NPI

SH.

(2)

Koso

vo, in

cludin

g d

onors

(U

NM

IK, KFO

R, and o

ther

donor

spen

din

g u

nder

the

um

bre

llaof th

e so

calle

d p

ublic

inve

stm

ent pro

gra

m, and s

pen

din

g fin

ance

d b

y des

ignate

d d

onor

gra

nts

(D

DG

s);

data

exc

ludes

wages

of KFO

R p

erso

nnel

, as

wel

l as

consu

mptio

n o

f goods

imported

direc

tly b

y KFO

R.

(3)

Koso

vo, in

vest

men

t in

cludin

g the

donor

sect

or,

gen

eral gove

rnm

ent, p

riva

te inve

stm

ent

(housi

ng a

nd o

ther

).

(4) 2003.

(5) 2002;

excl

udin

g K

oso

vo a

nd M

etohia

.

Fin

al

con

sum

pti

on

exp

en

dit

ure

:

ho

use

ho

ld

an

d N

PIS

H

(1)

Fin

al

con

sum

pti

on

exp

en

dit

ure

:

gen

era

l

go

vern

men

t

(2)

Gro

ss

cap

ital

form

ati

on

(3)

Imp

ort

s o

f

go

od

s &

serv

ices

(

Exp

ort

s o

f

go

od

s &

serv

ices

(66666

EU

-25

58.3

20.8

19.9

34.8

35.9

Bu

lgari

a68.1

18.7

23.5

68.7

58.4

Cro

ati

a58.1

19.9

:55.7

47.5

Ro

man

ia70.4

15.9

23.1

46.5

37.1

Tu

rkey

66.6

13.3

25.9

35.0

29.1

Alb

an

ia (

4)

74.5

10.1

:45.8

20.7

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

Th

e f

orm

er

Yu

go

slav

76.3

20.7

20.0

54.8

37.9

Rep

ub

lic

of

Mace

do

nia

(4)

Serb

ia a

nd

Mo

nte

neg

ro (

5)

70.5

28.3

8.9

16.8

9.2

Ko

so

vo

93.5

47.2

27.9

78.5

10.0

There

was

a s

light

incr

ease

in t

he p

roport

ion o

f G

DP t

hat

was

acc

ounte

d f

or

by

final c

onsu

mption e

xpenditure

in t

he E

U-2

5 d

uring t

he p

eriod 1

995 t

o 2

004. The

share

of

final co

nsu

mption e

xpenditure

in G

DP w

as

oft

en s

om

ew

hat

hig

her

than

the E

U-2

5 a

vera

ge w

ithin

the C

andid

ate

countr

ies

and in t

he W

est

ern

Balk

ans.

The b

reakdow

n o

f G

DP s

how

s th

at

final

consu

mption e

xpenditure

by

genera

l

gove

rnm

ent

acc

ounte

d f

or

a h

igher

pro

port

ion o

f G

DP in t

he E

U-2

5 t

han in t

he

Candid

ate

countr

ies,

while

exp

enditure

by

house

hold

s and n

on p

rofit

inst

itutions

serv

ing h

ouse

hold

s (N

PIS

H)

usu

ally

acc

ounte

d f

or

a l

ow

er

share

of

GD

P i

n t

he

EU

-25 (

exc

ept

when c

om

pare

d w

ith C

roatia).

Inve

stm

ent,

as

measu

red b

y gro

ss c

apital fo

rmation,

acc

ounte

d f

or

alm

ost

20 %

of

the EU

-25's

G

DP in

2004.

The sh

are

of

gro

ss ca

pital

form

ation in

G

DP

exp

anded in t

he C

andid

ate

countr

ies

and in t

he W

est

ern

Balk

ans,

whic

h m

ay

in

part

be d

ue t

o i

nflow

s of

direct

inve

stm

ent.

As

a r

esu

lt,

the l

ate

st i

nfo

rmation

ava

ilable

show

s th

at

the p

roport

ion o

f G

DP t

hat

was

acc

ounte

d f

or

by

gro

ss

capital f

orm

ation r

ose

to a

bove

20 %

in a

ll C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

exc

ept

in S

erb

ia a

nd M

onte

negro

.

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 53

(1)

Begin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

.

5

54

Tab

le 5

.4:

Exte

rna

l tr

ad

e

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

29.8

30.2

32.2

32.6

32.7

36.2

36.3

35.5

34.8

35.9

Bu

lgari

a44.7

55.4

58.3

47.0

44.5

55.7

55.6

53.1

53.6

58.4

Cro

ati

a:

::

:40.9

47.1

49.1

45.9

47.1

47.5

Ro

man

ia27.6

28.1

29.2

22.6

28.0

32.9

33.3

35.4

36.0

37.1

Tu

rkey

19.5

22.2

24.7

23.8

21.7

23.4

32.0

29.2

27.5

29.1

Alb

an

ia:

12.3

10.5

10.8

15.7

17.6

18.3

19.5

20.7

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

37.3

41.2

42.2

48.6

42.7

38.0

37.9

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

17.8

23.4

11.2

9.2

::

::

Ko

so

vo

:

::

::

:16.6

12.5

10.4

10.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

28.3

28.5

30.2

31.1

31.8

36.0

35.5

34.1

33.6

34.8

Bu

lgari

a46.3

50.0

53.7

46.8

50.3

61.1

63.2

59.7

63.0

68.7

Cro

ati

a:

::

:49.3

52.3

54.7

54.9

56.8

55.7

Ro

man

ia33.2

36.6

36.2

30.6

32.8

38.5

41.1

41.1

43.8

46.5

Tu

rkey

23.8

28.7

30.5

27.2

25.1

30.7

29.7

30.6

30.8

35.0

Alb

an

ia:

35.2

36.7

34.4

32.0

37.5

38.7

46.7

45.8

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

50.8

56.1

52.2

63.5

56.6

58.2

54.8

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

26.3

32.8

20.3

16.8

::

::

Ko

so

vo

:

::

::

:120.3

98.6

87.1

78.5

Exp

ort

s o

f g

oo

ds

an

d s

erv

ices,

rela

tive t

o G

DP (

%)

Imp

ort

s o

f g

oo

ds

an

d s

erv

ices,

rela

tive t

o G

DP (

%)

EX

TER

NA

L T

RA

DE R

ELA

TIV

E T

O G

DP

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 54

55

Fig

ure

5.2

: A

vera

ge o

f exp

ort

s a

nd

im

port

s, r

ela

tive t

o G

DP,

2004 (

%)

(1)

(1)

Cro

atia

, A

lbania

and B

osn

ia a

nd H

erz

egovi

na,

not ava

ilable

.(2

) 2

00

3.

(3)

20

00

; exc

ludin

g K

oso

vo a

nd M

eto

hia

.

0

20

40

60

80

100

EU

-25

BG

HR

RO

(2)

TR

AL

BA

MK

(2)

CS (3)

XK

Rela

tive

ly s

mall

terr

itories

(in t

erm

s of

land a

rea a

nd p

opula

tion leve

ls)

will

tend

to d

ispla

y hig

her

rate

s of

trade i

nte

gra

tion t

han l

arg

er

terr

itories.

Im

port

s and

exp

ort

s are

enco

ura

ged b

eca

use

sm

all

terr

itories

are

lik

ely

to p

roduce

a r

educe

d

num

ber

of

goods

and s

erv

ices

and b

eca

use

of

their c

lose

geogra

phic

al pro

xim

ity

to n

eig

hbouring t

err

itories.

Note

that

the i

nfo

rmation p

rese

nte

d f

or

the E

U-2

5

treats

the E

U-2

5 a

s a s

ingle

entity

; hence

, th

e d

ata

do n

ot

incl

ude intr

a-E

U t

rade

betw

een M

em

ber

Sta

tes

Ext

ern

al

trade s

tatist

ics

can b

e u

sed t

o s

how

how

open e

ach

terr

itory

is,

the

ext

ent

to w

hic

h a

terr

itory

satisf

ies

its

ow

n c

onsu

mption o

r re

lies

on im

port

s, a

nd

the a

ttra

ctiv

eness

of

each

terr

itory

's g

oods

and s

erv

ices

for

exp

ort

. The a

vera

ge

of

import

s and e

xport

s of

goods

and s

erv

ices

as

a p

roport

ion o

f G

DP i

s an

altern

ative

m

easu

re of

trade in

tegra

tion:

the hig

her

the in

dic

ato

r, th

e m

ore

inte

gra

ted a

terr

itory

within

the inte

rnational eco

nom

y.

Each

of

the C

andid

ate

countr

ies

and W

est

ern

Balk

an t

err

itories

report

ed a

tra

de

defici

t, w

hile

in t

he E

U-2

5 a

surp

lus

for

goods

and s

erv

ices

was

post

ed.

Alb

ania

,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and K

osovo

were

part

icula

rly

relia

nt

upon im

port

s.

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 55

(1)

Begin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

.

5

56

Tab

le 5

.5:

Bre

ak

dow

n o

f g

ross

va

lue a

dd

ed

(%

of

tota

l)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

2.8

2.8

2.7

2.5

2.4

2.3

2.3

2.1

2.1

2.0

Bu

lgari

a:

15.1

26.2

18.8

16.3

13.9

13.4

12.1

11.6

10.9

Cro

ati

a:

::

:9.8

9.0

9.1

8.2

8.4

8.2

Ro

man

ia21.4

20.6

19.6

16.2

15.2

12.5

14.9

12.8

13.3

14.6

Tu

rkey

15.0

15.9

13.6

16.9

14.6

13.6

11.4

11.4

11.6

11.1

Alb

an

ia:

33.0

33.6

32.6

29.5

29.1

27.0

26.3

24.0

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:15.8

13.4

13.0

12.1

10.6

11.5

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

12.8

13.2

12.9

12.0

11.8

12.4

13.4

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

19.3

18.4

20.6

21.1

20.9

16.3

::

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

23.6

23.3

23.3

22.9

22.4

22.3

21.7

21.0

20.6

20.7

Bu

lgari

a:

26.5

25.2

25.7

23.9

25.5

25.0

24.6

25.2

25.2

Cro

ati

a:

::

:24.6

24.7

24.3

23.4

23.3

23.2

Ro

man

ia35.6

35.5

33.5

29.6

28.2

30.9

31.0

31.4

30.9

30.5

Tu

rkey

25.8

24.2

24.2

21.4

21.9

22.5

24.2

24.3

23.8

23.8

Alb

an

ia:

15.5

14.3

11.8

11.7

12.3

11.2

10.8

13.0

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:22.7

23.0

22.5

20.9

22.2

22.0

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

28.4

27.1

26.5

26.9

26.1

24.2

24.4

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

32.7

31.5

30.3

28.2

28.4

28.0

::

Ko

so

vo

:

::

::

::

::

:

Ag

ricu

ltu

re, fo

rest

ry a

nd

fis

hin

g

Ind

ust

ry

BR

EA

KD

OW

N O

F G

RO

SS V

ALU

E A

DD

ED

BY S

EC

TO

R

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 56

57

Tab

le 5

.6:

Bre

ak

dow

n o

f g

ross

va

lue a

dd

ed

(%

of

tota

l)

(1)

Begin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

.(2

) Exc

ludes

financi

al in

term

edia

tion s

erv

ices

indir

ect

ly m

easu

red (

FISIM

).

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

5.9

5.7

5.5

5.5

5.5

5.6

5.6

5.6

5.7

5.9

Bu

lgari

a:

4.2

2.7

4.8

5.0

4.6

4.6

4.5

4.5

4.8

Cro

ati

a:

::

:5.3

4.6

4.9

5.3

6.8

6.9

Ro

man

ia7.1

6.9

5.7

5.8

5.7

5.5

6.0

6.5

6.8

6.9

Tu

rkey

5.4

5.6

5.8

5.6

5.4

5.1

4.8

3.9

3.3

3.4

Alb

an

ia:

4.7

4.4

4.2

5.0

6.7

8.6

7.9

8.1

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:6.3

5.8

5.1

5.1

4.8

4.6

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

6.2

6.7

6.1

6.8

6.0

6.0

6.3

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

5.1

5.3

4.2

3.9

3.7

3.8

::

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

67.6

68.2

68.5

69.1

69.7

69.8

70.4

71.2

71.6

71.4

Bu

lgari

a:

54.2

45.9

50.7

54.8

56.0

57.0

58.8

58.7

59.1

Cro

ati

a:

::

:60.4

61.9

61.8

63.2

61.5

61.7

Ro

man

ia39.1

39.2

41.8

50.1

52.7

52.3

49.8

50.6

50.5

49.7

Tu

rkey

53.8

54.3

56.4

56.1

58.1

58.8

59.6

60.5

61.3

61.7

Alb

an

ia (

2)

:46.8

47.6

51.3

53.7

51.8

53.2

54.9

54.9

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:55.3

57.7

59.4

61.9

62.4

61.9

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

52.7

52.9

54.5

54.2

56.1

57.5

56.0

:

Serb

ia a

nd

Mo

nte

neg

ro (

1)

::

42.9

44.8

44.9

46.8

47.0

51.9

::

Ko

so

vo

:

::

::

::

::

:

Co

nst

ruct

ion

Serv

ices

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 57

(1)

Koso

vo,

not ava

ilable

. (2

) 1

99

9-2

00

3;

serv

ices

exc

ludin

g f

inanci

al in

term

edia

tion s

erv

ices

indir

ect

ly m

easu

red (

FISIM

). (

3)

19

99

-20

03

.(4

) 1

99

9-2

00

2;

exc

ludin

g K

oso

vo a

nd M

eto

hia

.

5

58

Fig

ure

5.3

: Rela

tive s

ha

re o

f g

ross

va

lue a

dd

ed

, 1999-2

004 (

cha

ng

e i

n p

erc

en

tag

e p

oin

ts)

(1)

-6-4-202468

EU

-25

BG

HR

RO

TR

AL

(2)

BA

MK

(3)

CS (4)

XK

Agricu

lture

, fo

rest

ry a

nd f

ishin

gIn

dust

ryC

onst

ruct

ion

Serv

ices

RELA

TIV

E C

HA

NG

E I

N G

RO

SS V

ALU

E A

DD

ED

BY S

EC

TO

R

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 58

59

Fig

ure

5.4

: B

rea

kd

ow

n o

f g

ross

va

lue a

dd

ed

, 2004 (

% o

f to

tal)

(1)

(1)

Koso

vo,

not ava

ilable

. (2

) 1

99

9-2

00

3;

serv

ices

exc

ludin

g f

inanci

al in

term

edia

tion

serv

ices

indir

ect

ly m

easu

red (

FISIM

). (

3)

19

99

-20

03

. (4

) 1

99

9-2

00

2;

exc

ludin

g K

oso

voand M

eto

hia

.

0%

25%

50%

75%

100%

EU

-25

BG

HR

RO

TR

AL

(2)

BA

MK

(3)

CS (4)

XK

Agricu

lture

, fo

rest

ry a

nd f

ishin

gIn

dust

ryC

onst

ruct

ion

Serv

ices

The s

truct

ure

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

eco

nom

ies

is

such

that

a c

onsi

dera

bly

hig

her

pro

port

ion o

f to

tal

valu

e a

dded i

s genera

ted

within

agricu

lture

, fo

rest

ry a

nd f

ishin

g. H

ow

eve

r, t

he r

ela

tive

import

ance

of

these

act

ivitie

s w

as

reduce

d a

t a r

apid

pace

betw

een 1

999 a

nd 2

004,

as

act

ivity

in t

he

majo

rity

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

switch

ed t

o t

he

serv

ices

sect

or

(and t

o a

less

er

ext

ent,

indust

ry a

nd c

onst

ruct

ion).

This

patt

ern

was

part

icu

larl

y p

ron

ou

nce

d

in

Bu

lgari

a,

Turk

ey,

A

lban

ia,

Bo

snia

an

d

Herz

egovi

na,

and S

erb

ia a

nd M

onte

negro

.

This

info

rmation o

n t

he b

reakdow

n o

f gro

ss v

alu

e a

dded c

an b

e c

om

pare

d w

ith

that

pre

sente

d o

n p

age 4

5 f

or

em

plo

yment,

where

a s

imila

r tr

ansf

er

aw

ay

from

agricu

lture

, fo

rest

ry a

nd f

ishin

g w

as

obse

rved.

The s

hare

of

agricu

lture

, fo

rest

ry

and

fish

ing

in

tota

l va

lue

added

was

low

er

than

corr

esp

ondin

g

share

s fo

r

em

plo

yment,

suggest

ing t

hat

the s

truct

ure

of

the C

andid

ate

countr

ies

and t

he

West

ern

Balk

an e

conom

ies

was

movi

ng t

ow

ard

s hig

her

added v

alu

e s

ect

ors

.

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 59

(1)

Calc

ula

ted u

sing G

DP

in e

uro

at co

nst

ant pri

ces.

(2)

Em

plo

yees,

farm

ers

, help

ers

and o

ther

eco

nom

ically

act

ive p

ers

ons

are

incl

uded in tota

l em

plo

yment; b

egin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd M

eto

hia

;so

urc

e,

Labour

Forc

e S

urv

ey.

5

60

Tab

le 5

.7:

La

bou

r p

rod

uct

ivit

y

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:3.0

3.0

2.0

2.6

1.9

1.8

3.7

5.0

3.8

Bu

lgari

a:

::

4.0

4.5

9.2

4.5

4.1

0.8

:

Cro

ati

a:

::

:4.4

9.6

8.0

5.7

::

Ro

man

ia (

1)

::

::

3.5

-0.3

6.6

7.9

4.3

:

Tu

rkey

::

::

::

-6.5

8.8

6.1

:

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro (

2)

::

::

:5.4

4.0

6.1

7.2

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:-0

.9-1

.0-0

.90.2

0.3

0.4

-0.5

-0.5

-0.9

Bu

lgari

a:

-13.6

-8.0

18.4

-2.2

-5.4

0.8

-3.4

0.4

2.6

Cro

ati

a:

::

::

::

::

:

Ro

man

ia:

::

:-7

.621.7

-1.1

::

:

Tu

rkey

::

::

::

-4.6

::

:

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

:2.6

-1.5

-7.6

0.2

-0.7

2.8

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

GD

P in

co

nst

an

t p

rice

s p

er

pers

on

em

plo

yed

(%

ch

an

ge c

om

pare

d w

ith

th

e p

revio

us

year)

Un

it lab

ou

r co

st (

% c

han

ge c

om

pare

d w

ith

th

e p

revio

us

year)

LA

BO

UR

PR

OD

UCTIV

ITY A

ND

EM

PLO

YM

EN

T C

HA

NG

E

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 60

61

Tab

le 5

.8:

Tota

l n

um

ber

of

pers

on

s in

em

plo

ym

en

t (%

ch

an

ge c

om

pa

red

wit

h t

he p

revio

us

yea

r)

(1)

Up u

ntil

20

00

data

on e

mplo

yment in

the n

on-a

gri

cultu

ral se

ctor

are

base

d o

nin

form

atio

n f

rom

tax

offic

es;

sin

ce 2

00

1 d

ata

are

fro

m the M

inis

try

of

the L

abour

and

Soci

al A

ffair

s; this

change in s

ourc

e o

f in

form

atio

n c

ause

s a b

reak

in the s

eri

es.

(2)

Em

plo

yees,

farm

ers

, help

ers

and o

ther

eco

nom

ically

act

ive p

ers

ons

are

incl

uded in

tota

l em

plo

yment; b

egin

nin

g in 1

99

9 a

nd f

or

years

there

after, e

xclu

din

g K

oso

vo a

nd

Meto

hia

; so

urc

e,

Labour

Forc

e S

urv

ey.

1999

2000

2001

2002

2003

2004

EU

-25

1.2

1.5

1.3

0.4

0.3

0.6

Bu

lgari

a-2

.1-3

.5-0

.40.4

6.3

2.2

Cro

ati

a-1

.5-1

.70.5

0.8

::

Ro

man

ia-4

.52.5

-0.8

-9.5

-4.5

:Tu

rkey

2.1

-0.4

-1.0

-0.8

-1.0

:A

lban

ia (

1)

-1.8

0.3

-13.9

0.0

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

:Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

-0.6

0.3

-1.7

-0.6

-1.9

:Serb

ia a

nd

Mo

nte

neg

ro (

2)

:-0

.21.3

-2.2

-4.7

:K

oso

vo

:

::

::

:

Appare

nt

labour

pro

duct

ivity

(as

measu

red b

y G

DP p

er

pers

on e

mplo

yed)

rose

in

const

ant

price

term

s in

the E

U-2

5 o

ver

the p

eriod p

rese

nte

d.

Havi

ng s

low

ed i

n

2000 a

nd 2

001,

labour

pro

duct

ivity

gro

wth

in t

he E

U-2

5 r

esu

med a

t ra

tes

that

were

in e

xcess

of

3 %

fro

m 2

002 o

nw

ard

s. P

roduct

ivity

gain

s w

ere

genera

lly

hig

her

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

with i

ncr

ease

s of

6%

or

more

per

annum

quite c

om

mon.

Unit labour

cost

s fe

ll at

a m

odest

pace

in t

he E

U-2

5 d

uring t

he p

eriod 2

002 t

o 2

004,

while

no c

lear

patt

ern

could

be

obse

rved

for

those

C

andid

ate

co

untr

ies

or

West

ern

Balk

an

terr

itories

that

pro

vided d

ata

.

The t

ota

l num

ber

of

pers

ons

em

plo

yed in t

he E

U-2

5 r

ose

, at

most

, by

0.6

% in

each

of

the la

st t

hre

e y

ears

for

whic

h d

ata

are

ava

ilable

(2002 t

o 2

004).

With t

he

exc

eption o

f Bulg

aria a

nd C

roatia,

the t

ota

l num

ber

of

pers

ons

em

plo

yed in t

he

Candid

ate

countr

ies

and t

he W

est

ern

Balk

ans

oft

en f

ell

from

2001 o

nw

ard

s.

These

em

plo

yment

loss

es

could

part

ially

exp

lain

the r

ela

tive

ly h

igh p

roduct

ivity

gain

s m

ade in

som

e C

andid

ate

countr

ies

and W

est

ern

Balk

an t

err

itories.

It s

hould

be n

ote

d t

hat

the d

ata

pre

sente

d r

efe

r to

national

acc

ounts

' co

nce

pts

and t

hat

resu

lts

may

diffe

r so

mew

hat

if c

om

pare

d w

ith t

hose

derive

d f

rom

labour

forc

e o

r

oth

er

soci

al st

atist

ics.

Na

tion

al

acc

ou

nts

CH05.QXD 27/10/05 10:55 Page 61

(1)

Priv

atis

atio

n r

eve

nues

are

exc

luded a

nd r

ecl

ass

ifie

d to the f

inanci

ng o

f th

e b

ala

nce

.

6

62

Tab

le 6

.1:

Gen

era

l g

overn

men

t d

efi

cit/

surp

lus

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:-1

37 3

41

-68 1

37

73 3

63

-114 0

09

-220 7

39

-282 5

91

-270 2

38

Bu

lgari

a:

:-3

0190

44

-66

214

-33

104

244

Cro

ati

a:

::

::

:-1

439

-1 0

08

-1 1

83

-1 4

48

Ro

man

ia:

:-1

392

-1 2

00

-1 4

91

-1 7

91

-1 5

83

-971

-991

-836

Tu

rkey

::

::

-20 2

94

-22 3

82

-26 1

19

-27 3

37

-23 6

25

-17 1

49

Alb

an

ia-1

93

-271

-261

-285

-289

-302

-315

-287

-247

-298

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

-87

-95

-437

-724

-297

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:-1

.7-0

.80.8

-1.2

-2.3

-2.9

-2.6

Bu

lgari

a:

:-0

.31.7

0.4

-0.5

1.4

-0.2

0.6

1.3

Cro

ati

a (

1)

::

::

::

-6.5

-4.2

-4.6

-5.2

Ro

man

ia:

:-4

.5-3

.2-4

.5-4

.4-3

.5-2

.0-2

.0-1

.4

Tu

rkey

-4.1

-8.4

-7.8

-7.1

-11.7

-10.3

-16.0

-14.1

-11.1

-7.0

Alb

an

ia:

-11.4

-13.7

-11.7

-9.0

-7.5

-6.9

-6.1

-5.0

-4.9

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

0.3

2.3

-2.5

-0.5

0.1

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

-0.9

-0.8

-2.9

-4.3

-1.7

Ko

so

vo

:

::

::

::

::

:

Gen

era

l g

overn

men

t d

efi

cit/

surp

lus

(EU

R m

illio

n)

Gen

era

l g

overn

men

t d

efi

cit/

surp

lus

rela

tive t

o G

DP (

%)

GEN

ER

AL G

OV

ER

NM

EN

T D

EFIC

IT A

ND

DEB

T

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 62

63

Fig

ure

6.1

: G

en

era

l g

overn

men

t d

eb

t re

lati

ve t

o G

DP

(%

) (1

)

(1)

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

.(2

) 2

00

1 inst

ead o

f 2

00

0.

0

50

100

150

200

EU

-25

BG

HR (2)

RO

TR

AL

BA

MK

CS

XK

2000

2004

The g

enera

l gove

rnm

ent

defici

t/su

rplu

s exp

ress

ed r

ela

tive

to G

DP w

as

one o

f th

e

Maast

rich

t cr

iteria f

or

ass

ess

ing e

conom

ic c

onditio

ns

for

join

ing t

he e

uro

(w

ith a

limit o

f -3

%),

as

was

genera

l gove

rnm

ent

debt

exp

ress

ed r

ela

tive

to G

DP (

with

a lim

it o

f 60 %

).

The E

U-2

5's

defici

t re

lative

to G

DP s

tood a

t -2

.6 %

in 2

004,

whic

h m

ark

ed a

narr

ow

ing c

om

pare

d t

o t

he 2

003 f

igure

of

-2.9

% (

the h

ighest

defici

t re

lative

to

GD

P t

hat

had b

een r

eco

rded s

ince

the t

ime s

eries

for

this

indic

ato

r began i

n

1998).

In

th

e

Candid

ate

co

untr

ies

and

the

West

ern

Balk

ans,

th

e

late

st

info

rmation a

vaila

ble

show

s th

at

Cro

atia,

Turk

ey

and A

lbania

all

post

ed g

enera

l

gove

rnm

ent

defici

t ra

tios

that

were

larg

er

than -

3 %

, w

hile

Bulg

aria w

as

the o

nly

countr

y to

report

a g

enera

l gove

rnm

ent

surp

lus.

The la

test

info

rmation a

vaila

ble

for

the C

andid

ate

countr

ies

and W

est

ern

Balk

ans

show

s th

at

genera

l gove

rnm

ent

debt

rela

tive

to G

DP w

as

consi

stently

low

er

than

in t

he E

U-2

5,

as

debt

stood b

elo

w 6

0 %

of

GD

P. G

enera

l gove

rnm

ent

debt

was

reduce

d a

t a r

apid

pace

betw

een 2

000 a

nd 2

004 in

Bulg

aria a

s w

ell

as

Serb

ia a

nd

Monte

negro

.

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 63

6

64

Tab

le 6

.2:

Gen

era

l g

overn

men

t d

eb

t (E

UR

million

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:5 3

70 6

78

5 5

84 7

15

5 6

28 6

33

5 7

79 4

36

5 9

35 7

16

6 1

75 1

23

6 5

09 8

29

Bu

lgari

a:

:9 3

64

9 1

25

9 6

47

10 0

66

10 0

48

8 9

25

8 1

47

7 5

56

Cro

ati

a:

::

::

:9 0

03

9 6

06

10 4

88

11 9

39

Ro

man

ia:

:4 7

08

5 2

38

7 1

48

7 9

55

9 7

51

10 0

31

10 0

14

10 8

86

Tu

rkey

::

::

51 4

28

63 4

57

111 6

93

104 8

21

115 3

42

126 9

93

Alb

an

ia645

879

1 0

20

1 2

96

1 7

23

2 3

74

2 6

56

3 0

07

3 1

06

3 4

31

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

1 0

25

1 1

54

1 1

92

1 0

82

995

991

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

14 1

68

15 6

36

13 5

60

10 8

03

9 3

31

Ko

so

vo

:

::

::

::

::

:

GEN

ER

AL G

OV

ER

NM

EN

T D

EB

T A

ND

GR

OSS F

OR

EIG

N D

EB

T

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 64

65

Fig

ure

6.2

: G

ross

fore

ign

deb

t of

the w

hole

eco

nom

y r

ela

tive t

o G

DP,

2004 (

%)

(1)

(1)

EU

-25

, Tu

rkey,

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

.

0

25

50

75

100

BG

HR

RO

TR

AL

BA

MK

CS

XK

Genera

l gove

rnm

ent

debt

rela

tive

to G

DP w

as

oft

en r

educe

d a

s a r

esu

lt o

f G

DP

gro

wth

bein

g a

t a f

ast

er

pace

than t

hat

reco

rded f

or

genera

l gove

rnm

ent

debt.

Betw

een 2

000 a

nd 2

004, EU

-25 g

enera

l gove

rnm

ent

debt

rose

by

15.7

% o

vera

ll

(or

an a

vera

ge o

f 3.7

% p

er

annum

). W

ithin

the C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans

ave

rage g

row

th w

as

upw

ard

s of

8 %

per

annum

in R

om

ania

,

Turk

ey

and A

lbania

. H

ow

eve

r, t

he le

vel o

f genera

l gove

rnm

ent

debt

was

reduce

d

in

Bulg

aria,

the

form

er

Yugosl

av

Republic

of

Mace

donia

, and

Serb

ia

and

Monte

negro

.

Gro

ss f

ore

ign d

ebt

of

the w

hole

eco

nom

y, c

ove

rs b

oth

short

- and l

ong-t

erm

debt,

but

exc

ludes

equity

inve

stm

ent

and m

oney

mark

et

inst

rum

ents

. A

lbania

report

ed b

y fa

r th

e l

ow

est

ratio o

f fo

reig

n d

ebt

to G

DP a

mong t

he C

andid

ate

countr

ies

and W

est

ern

Balk

an t

err

itories,

and w

as

the o

nly

countr

y to

report

that

gro

ss f

ore

ign d

ebt

was

low

er

than g

enera

l gove

rnm

ent

debt.

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 65

(1)

20

01

inst

ead o

f 2

00

0.

(2)

Data

were

ori

gin

ally

pro

vided in U

S d

olla

rs a

nd c

onve

rted to E

UR u

sing E

uro

stat ave

rage a

nnual exc

hange r

ate

s.(3

) 2

00

3 inst

ead o

f 2

00

4.

(4)

20

01

inst

ead o

f 2

00

0;

20

03

inst

ead o

f 2

00

4.

6

66

Fig

ure

6.3

: Cu

rren

t a

ccou

nt

- tr

ad

e b

ala

nce

(EU

R m

illion

)

-25 0

00

-20 0

00

-15 0

00

-10 0

00

-5 0

000

5 0

00

EU

-25 (1)

BG

HR

RO

TR (2)

AL

BA

(3)

MK

CS

XK

(4)

2000

2004

-73 1

63

BA

LA

NC

E O

F P

AYM

EN

TS A

ND

TH

E C

UR

REN

T A

CCO

UN

T

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 66

67

Tab

le 6

.3:

Ba

lan

ce o

f p

aym

en

ts,

2004 (

EU

R m

illion

)

(1)

Data

were

ori

gin

ally

pro

vided in U

S d

olla

rs a

nd c

onve

rted to E

UR u

sing E

uro

stat

ave

rage a

nnual exc

hange r

ate

s.(2

) 2

00

3 inst

ead o

f 2

00

4.

Cu

rren

t

acc

ou

nt

Cap

ital

acc

ou

nt

Fin

an

cial

acc

ou

nt

Net

err

ors

an

d

om

issi

on

sEU

-25

-21 9

11

-2 7

90

::

Bu

lgari

a-1

447

01 3

08

139

Cro

ati

a-1

250

23

2 2

35

-1 0

09

Ro

man

ia-4

402

505

2 6

57

1 2

40

Tu

rkey (

1)

-12 4

95

010 2

06

2 2

90

Alb

an

ia-2

88

107

311

93

Bo

snia

an

d H

erz

eg

ovin

a:

::

:Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

-305

-3302

6Serb

ia a

nd

Mo

nte

neg

ro-2

352

:2 5

51

359

Ko

so

vo

(2)

-284

::

:

Bala

nce

of

paym

ents

are

a s

tatist

ical

state

ment

that

sum

marise

the e

conom

ic

transa

ctio

ns

of

a t

err

itory

with t

he r

est

of

the w

orld.

The s

tandard

com

ponents

of

the b

ala

nce

of

paym

ents

are

:

- th

e c

urr

ent

acc

ount,

that

refe

rs t

o g

oods

and s

erv

ices,

inco

me (

com

pensa

tion

of

em

plo

yees,

inve

stm

ent

inco

me),

and c

urr

ent

transf

ers

;

- th

e

capital

and

financi

al

acc

ount

that

refe

rs

to

capital

transf

ers

and

the

acq

uis

itio

n/d

isposa

l of

non-p

roduce

d,

non-f

inanci

al ass

ets

; and f

inanci

al ass

ets

and lia

bili

ties.

The c

urr

ent

acc

ount

of

each

Candid

ate

countr

y and W

est

ern

Balk

an t

err

itory

was

in d

efici

t. W

ith t

he e

xceptions

of

Turk

ey

and K

osovo,

the c

urr

ent

acc

ount

defici

t

wid

ened b

etw

een 2

000 a

nd 2

004,

while

in t

he E

U-2

5 i

t w

as

reduce

d f

rom

EU

R 7

3.1

bill

ion t

o E

UR 2

1.9

bill

ion.

Curr

ent

acc

ount

defici

ts g

enera

lly t

ended t

o

rise

at

a f

ast

er

pace

in t

he C

andid

ate

countr

ies,

although S

erb

ia a

nd M

onte

negro

was

an e

xception t

o t

his

rule

.

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 67

(1)

Data

were

ori

gin

ally

pro

vided in U

S d

olla

rs a

nd c

onve

rted to E

UR u

sing E

uro

stat ave

rage a

nnual exc

hange r

ate

s.

6

68

Tab

le 6

.4:

Fore

ign

dir

ect

in

vest

men

t (E

UR

million

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

::

::

286 3

52

127 7

46

132 5

04

126 2

57

Bu

lgari

a:

::

0-1

6-3

-9-2

9-2

3175

Cro

ati

a:

::

:54

2176

598

93

254

Ro

man

ia-2

09

8-1

514

18

-18

-36

-56

Tu

rkey (

1)

-86

-87

-221

-327

-605

-942

-555

-185

-441

-691

Alb

an

ia0

00

00

00

00

0

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

00

00

01

-10

0-1

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

:45

36

132

22

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

::

::

120 0

58

139 7

93

125 1

63

54 0

95

Bu

lgari

a:

::

605

866

1 1

03

903

980

1 8

51

2 1

14

Cro

ati

a:

::

:1 3

69

1 1

42

1 5

03

1 1

95

1 7

88

921

Ro

man

ia321

210

1 0

77

1 7

63

964

1 1

47

1 2

94

1 2

12

1 9

46

4 0

98

Tu

rkey (

1)

677

569

710

838

735

1 0

63

3 6

47

1 1

24

1 5

50

2 1

97

Alb

an

ia54

71

42

40

39

155

232

143

158

275

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

79

27

109

33

188

501

74

76

115

Serb

ia a

nd

Mo

nte

neg

ro:

:655

101

105

55

184

505

1 2

03

777

Ko

so

vo

:

::

::

::

::

:

Ou

tward

FD

I

Inw

ard

FD

I

FO

REIG

N D

IRECT I

NV

ESTM

EN

T

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 68

69

Fig

ure

6.4

: A

vera

ge o

f FD

I in

flow

s a

nd

ou

tflo

ws

rela

tive t

o G

DP

(%

) (1

)

(1)

Turk

ey,

Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

, Serb

iaand M

onte

negro

and K

oso

vo,

not ava

ilable

.(2

) 2

00

1 inst

ead o

f 2

00

0.

02468

EU

-25

(2)

BG

HR

RO

TR

AL

BA

MK

CS

XK

2000

2004

Inw

ard

fo

reig

n

direct

in

vest

ment

(FD

I)

is

inve

stm

ent

made

by

fore

igners

in

ente

rprise

s re

sident

in t

he r

eport

ing e

conom

y. O

utw

ard

FD

I (o

r FD

I abro

ad)

is

inve

stm

ent

by

resi

dent

entities

in a

ffili

ate

d e

nte

rprise

s abro

ad.

Negative

fig

ure

s

repre

sent

dis

inve

stm

ent.

Leve

ls o

f outw

ard

FD

I made b

y th

e C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

were

rela

tive

ly l

ow

in c

om

pariso

n t

o t

he l

eve

ls o

f in

ward

inve

stm

ent

that

were

rece

ived.

Inw

ard

FD

I gre

w a

t a p

art

icula

rly

fast

pace

in B

ulg

aria a

nd R

om

ania

in

2004,

perh

aps

in a

ntici

pation o

f th

eir a

ccess

ion t

o t

he E

U-2

5.

The a

vera

ge o

f FD

I in

flow

s and o

utf

low

s re

lative

to G

DP m

easu

res

the o

penness

of

an e

conom

y to

fore

ign inve

stm

ent.

This

ratio f

ell

at

a r

apid

pace

in t

he E

U-2

5

betw

een 2

000 a

nd 2

004,

main

ly a

s a r

esu

lt o

f fa

lling F

DI flow

s w

ith t

he U

nited

Sta

tes.

The o

pposi

te w

as

true in t

he m

ajo

rity

of

the C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans

(exc

ept

Cro

atia),

suggest

ing t

hat

this

gro

up o

f co

untr

ies

was

beco

min

g m

ore

att

ract

ive t

o f

ore

ign in

vest

ors

. In

deed, in

2004 t

he a

vera

ge o

f FD

I

inflow

s and outf

low

s re

lative

to

G

DP w

as

hig

her

in each

of

the C

andid

ate

countr

ies

and W

est

ern

Balk

ans

than it

was

in t

he E

U-2

5,

pro

vidin

g a

n indic

ation

of

the im

port

ant

role

pla

yed b

y FD

I in

the e

conom

ic g

row

th o

f th

ese

regio

ns.

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 69

6

70

Tab

le 6

.5:

Mon

ey s

up

ply

(EU

R m

illion

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

1 4

23 1

01

1 5

28 4

87

1 6

26 8

68

1 7

85 4

04

1 9

71 3

65

2 0

84 6

00

2 2

78 9

77

2 4

99 4

29

2 7

27 0

88

2 9

48 8

54

Bu

lgari

a123

395

2 9

61

3 1

77

2 0

65

2 4

53

3 0

85

3 4

24

4 1

06

5 2

65

Cro

ati

a1 2

09

1 6

56

1 9

77

1 8

46

1 8

05

2 3

73

3 2

16

4 1

48

4 4

32

4 5

05

Ro

man

ia2 1

47

2 2

32

2 1

13

1 7

29

1 6

19

1 9

21

2 3

07

2 5

29

2 7

55

3 8

73

Tu

rkey

4 8

26

6 6

41

6 9

77

7 0

06

8 5

95

12 0

93

8 9

55

9 1

07

12 9

90

15 6

81

Alb

an

ia488

681

537

496

701

936

1 1

13

1 1

52

1 0

53

1 3

54

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

257

237

229

249

325

368

415

432

445

449

Serb

ia a

nd

Mo

nte

neg

ro444

790

1 3

17

852

1 2

59

461

975

1 5

25

1 4

57

1 4

10

Ko

so

vo

:

::

::

736

1 0

30

874

833

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

3 3

97 4

75

3 5

62 4

79

3 6

87 1

55

3 9

20 1

54

4 1

41 4

99

4 2

99 6

31

4 6

84 3

64

4 9

81 4

49

5 2

95 7

98

5 6

32 2

35

Bu

lgari

a461

1 0

51

5 4

11

5 6

98

3 8

53

5 0

40

6 3

40

7 0

84

8 4

18

10 3

80

Cro

ati

a:

::

::

::

::

:

Ro

man

ia5 5

41

6 0

61

7 0

09

7 2

36

7 3

17

7 6

73

9 7

02

10 7

02

11 2

06

16 2

70

Tu

rkey

15 6

22

21 6

59

24 9

69

31 2

32

41 1

31

51 1

19

37 2

12

35 6

04

46 6

87

59 1

11

Alb

an

ia720

909

950

1 1

80

1 6

31

1 9

95

2 3

76

2 4

53

2 5

42

3 0

66

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

384

360

372

427

556

690

1 1

45

1 0

52

1 2

40

1 4

49

Serb

ia a

nd

Mo

nte

neg

ro655

1 1

20

1 7

66

1 1

77

1 5

91

561

1 1

41

1 8

03

1 8

28

1 8

58

Ko

so

vo

:

::

::

743

1 1

55

1 0

03

1 0

30

:

M1

M2

MO

NEY S

UP

PLY

AN

D I

NTER

EST R

ATES

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 70

71

Tab

le 6

.6:

Inte

rest

ra

tes

(%)

(1)

Lendin

g r

ate

s are

for

house

hold

consu

mptio

n loans,

matu

rity

is

less

than 1

year;

deposi

t in

tere

st r

ate

s are

for

non-f

inanci

al co

rpora

tions

and there

fore

do n

ot co

ver

house

hold

s, m

atu

rity

is

less

than o

ne y

ear. (

2)

The a

nnual in

tere

st r

ate

s are

ari

thm

etic

ave

rages

of

the m

onth

ly inte

rest

rate

s; d

ay-

to-d

ay

inte

rest

rate

s fo

r in

ter-

bank

ove

rnig

ht

deposi

ts in n

atio

nal cu

rrency

(BG

N);

deposi

t in

tere

st r

ate

s data

for

20

00

cove

rs o

nly

11

month

s, a

s st

atis

tical obse

rvatio

ns

began in F

ebru

ary

20

00

. (3

) Le

ndin

g a

nd d

eposi

tra

tes

refe

r to

non-g

ove

rnm

enta

l cu

stom

ers

only

. (4

) Le

ndin

g a

vera

ge w

eig

hte

d r

ate

applie

d o

n n

ew

12

-month

loans

ove

r th

e r

esp

ect

ive m

onth

, on 1

2-m

onth

matu

rity

;deposi

t ave

rage w

eig

hte

d r

ate

for

new

ly a

ccepte

d d

eposi

ts o

ver

the r

esp

ect

ive m

onth

, on

12

-month

matu

rity

. (5

) C

om

merc

ial bank

weig

hte

d lendin

g r

ate

s, s

hort

term

cre

dits

;co

mm

erc

ial bank

weig

hte

d d

eposi

t ra

tes

of

house

hold

s up to o

ne y

ear.

2000

2004

2000

2004

2000

2004

EU

R-1

2 (

1)

:2.6

6.7

:2.1

Bu

lgari

a (

2)

2.9

1.9

11.5

8.3

3.1

3.1

Cro

ati

a7.9

5.1

:11.0

:1.4

Ro

man

ia (

3)

41.5

18.8

53.5

25.8

32.7

11.3

Tu

rkey

56.7

21.8

51.2

29.1

38.2

23.6

Alb

an

ia (

4)

::

24.0

13.7

8.0

6.0

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

:Th

e f

orm

er

Yu

go

slav

7.2

8.3

19.0

12.0

10.7

6.5

Rep

ub

lic

of

Mace

do

nia

Serb

ia a

nd

Mo

nte

neg

ro (

5)

::

78.7

15.5

64.4

16.6

Ko

so

vo

:

::

::

:

In

tere

st r

ate

s:

d

ay-t

o-d

ay

m

on

ey r

ate

Len

din

g in

tere

st

r

ate

(o

ne y

ear)

D

ep

osi

t in

tere

st

ra

te

(o

ne y

ear)

The M

1 a

ggre

gate

is

the n

arr

ow

est

of

the m

oney

supply

measu

res

and c

ove

rs

note

s and c

oin

s in

circu

lation,

as

well

as

bank s

ight

deposi

ts.

The M

2 a

ggre

gate

cove

rs M

1 a

nd s

avi

ngs

deposi

ts,

plu

s oth

er

short

-term

cla

ims

on b

anks.

Betw

een 2

000 a

nd 2

004,

the E

U-2

5's

M1 a

ggre

gate

rose

by

an a

vera

ge o

f

9.1

% p

er

annum

. The e

xpansi

on o

f th

e m

oney

supply

was

genera

lly a

t a f

ast

er

pace

in t

he C

andid

ate

countr

ies,

with M

1 g

row

ing a

t appro

xim

ate

ly d

ouble

the

speed r

eco

rded in t

he E

U-2

5,

exc

ept

in T

urk

ey

(where

6.7

% g

row

th p

er

annum

was

regis

tere

d).

In t

he W

est

ern

Balk

ans

the m

oney

supply

exp

anded a

t ra

tes

that

were

sim

ilar

or

belo

w t

hose

reco

rded f

or

the E

U-2

5,

oth

er

than i

n S

erb

ia a

nd

Monte

negro

(w

here

th

ere

w

as

a co

nsi

dera

bly

fa

ster

exp

ansi

on,

32.3

%

per

annum

).

The genera

l sl

ow

dow

n in

glo

bal

eco

nom

ic gro

wth

in

re

cent

years

has

been

couple

d w

ith h

isto

rica

lly low

inte

rest

rate

s acr

oss

many

indust

rialis

ed e

conom

ies.

While

inte

rest

rate

s w

ere

rela

tive

ly h

igh i

n m

ost

Candid

ate

countr

ies

and t

he

West

ern

Balk

ans,

there

was

a m

ark

ed r

educt

ion in t

he m

ajo

rity

of

rate

s betw

een

2000 a

nd 2

004.

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 71

(1)

Conve

rtib

le m

ark

. (2

) Th

e e

uro

is

use

d in p

lace

of

a n

atio

nal denom

inatio

n in the R

epublic

of

Monte

negro

. (3

) Th

e e

uro

is

use

d in p

lace

of

a n

atio

nal denom

inatio

n.

(4)

Consu

mer

pri

ce index

does

not in

clude f

ore

ign touri

st e

xpenditu

res

made o

n the n

atio

nal te

rrito

ry.

(5)

Natio

nal co

nsu

mer

pri

ce index

(not st

rict

ly c

om

para

ble

with

inte

rim

HIC

Ps).

(6)

Vari

atio

n b

etw

een D

ece

mber

of

one y

ear

com

pare

d w

ith D

ece

mber

of

the p

revi

ous

year.

6

72

Tab

le 6

.7:

Exc

ha

ng

e r

ate

s a

nd

con

sum

er

pri

ce i

nd

ices

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

R-1

2 (

EU

R)

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

Bu

lgari

a (

BG

N)

1.2

9374

1.2

5255

1.1

4005

1.1

2558

1.9

5583

1.9

5583

1.9

5583

1.9

5583

1.9

5583

1.9

5583

Cro

ati

a (

HR

K)

6.7

5776

6.8

0471

6.9

5971

7.1

3661

7.5

7962

7.6

3497

7.4

6897

7.4

0677

7.5

6341

7.4

9517

Ro

man

ia (

RO

L)

2 6

29.5

3 8

62.9

8 0

90.9

9 9

89.3

16 2

95.6

19 9

55.8

26 0

26.9

31 2

55.3

37 5

55.9

40 5

32.1

Tu

rkey (

TR

Y)

59 1

70

101 9

80

170 6

18

292 7

98

445 6

77

573 9

42

1 0

93 6

83

1 4

29 7

66

1 6

85 3

01

1 7

67 6

86

Alb

an

ia (

ALL)

::

::

146.9

60

132.5

80

128.4

70

132.3

60

137.5

10

127.6

75

Bo

snia

an

d H

erz

eg

ovin

a (

BA

M)

(1)

::

:1.9

6901

1.9

5583

1.9

5583

1.9

5583

1.9

5583

1.9

5583

1.9

5583

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(M

KD

)49.1

517

50.0

768

56.1

979

61.0

652

60.6

164

60.7

248

60.9

129

60.9

782

61.2

642

61.3

374

Rep

ub

lic

of

Serb

ia (

CSD

) (2

)2.2

659

6.3

014

6.4

791

10.4

900

11.7

350

15.1

557

59.7

811

60.7

041

65.1

649

72.5

689

Ko

so

vo

(EU

R)

(3)

::

::

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1.0

0000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

2.8

2.4

1.7

1.3

1.2

1.9

2.2

2.1

2.0

2.0

Bu

lgari

a (

4)

::

:18.7

2.6

10.3

7.4

5.8

2.3

6.1

Cro

ati

a:

::

:4.0

4.6

3.8

1.7

1.8

2.1

Ro

man

ia:

38.8

154.9

59.1

45.8

45.7

34.5

22.5

15.3

11.9

Tu

rkey (

5)

76.0

79.8

99.1

69.7

68.8

39.0

68.5

29.7

18.4

9.3

Alb

an

ia (

6)

6.0

17.4

42.1

8.7

-1.0

4.2

3.5

1.7

3.3

2.2

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

15.7

2.3

2.6

-0.1

-0.7

5.8

5.5

1.8

1.2

-0.4

Serb

ia a

nd

Mo

nte

neg

ro79.0

92.4

21.6

29.9

44.9

85.6

89.2

16.5

9.4

10.8

Ko

so

vo

:

::

::

::

::

:

Avera

ge e

xch

an

ge r

ate

s (1

Eu

ro =

... n

ati

on

al cu

rren

cy)

Co

nsu

mer

pri

ce in

dic

es

(% c

han

ge c

om

pare

d w

ith

th

e p

revio

us

year)

EX

CH

AN

GE R

ATES,

CO

NSU

MER

PR

ICE I

ND

ICES,

VA

LU

E O

F R

ESER

VE A

SSETS

Fin

an

ce

CH06.QXD 27/10/05 10:55 Page 72

73

Fig

ure

6.5

: V

alu

e o

f re

serv

e a

ssets

, 2004 (

EU

R m

illion

) (1

)

(1)

Bosn

ia a

nd H

erz

egovi

na,

not ava

ilable

; Koso

vo,

valu

e o

f re

serv

e a

ssets

incl

udin

ggold

, not ava

ilable

. (2

) Valu

e o

f re

serv

e a

ssets

exc

ludin

g g

old

, 2

00

3.

(3)

Valu

e o

f re

serv

eass

ets

incl

udin

g g

old

, fr

om

1 J

uly

19

97

up to 3

1 J

anuary

20

05

, purs

uant to

Art

icle

28

,para

. 3

, ite

m 6

of

the L

aw

on the B

ulg

ari

an N

atio

nal Bank

(BN

B);

the s

tock

of

moneta

rygold

is

valu

ed a

t BG

N 5

00

per

troy

ounce

, or

at m

ark

et va

lue if

low

er;

fro

m 1

Febru

ary

20

05

onw

ard

s m

oneta

ry g

old

is

valu

ed a

t its

mark

et va

lue.

(4)

Incl

udin

g p

ort

folio

inve

stm

ents

.

0

10 0

00

20 0

00

30 0

00

40 0

00

EU

-25

(2)

BG

(3)

HR

RO

TR

AL

BA

MK

CS (4)

XK

(2)

Exc

ludin

g g

old

Incl

udin

g g

old

336 0

39

448 6

12

Exc

hange

rate

fluct

uations

may

pla

y an

import

ant

role

in

dete

rmin

ing

the

com

peti

tive

ness

o

f an

eco

no

my,

p

art

icu

larl

y w

ith

re

spect

to

it

s exp

ort

perf

orm

ance

. Bulg

aria a

nd C

roatia d

ispla

yed e

xchange r

ate

sta

bili

ty in

rela

tion t

o

the e

uro

during t

he p

eriod 1

999 t

o 2

004,

while

the s

am

e w

as

true f

or

Bosn

ia

and H

erz

egovi

na (

where

a f

ixed e

xchange r

ate

is

use

d),

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and K

osovo

(where

the e

uro

is

use

d).

The A

lbania

n L

ek

appre

ciate

d s

lightly

again

st t

he e

uro

ove

r th

e p

eriod c

onsi

dere

d,

while

national

curr

enci

es

in R

om

ania

, Tu

rkey

and t

he R

epublic

of

Serb

ia(1

)depre

ciate

d m

ark

edly

again

st t

he e

uro

.

Consu

mer

price

indic

es

(CPIs

) are

eco

nom

ic i

ndic

ato

rs c

onst

ruct

ed t

o m

easu

re

the c

hanges

ove

r tim

e i

n t

he p

rice

of

consu

mer

goods

and s

erv

ices

that

are

acq

uired,

use

d o

r paid

for

by

house

hold

s. P

rice

inflation i

n t

he E

U-2

5 r

em

ain

ed

within

the r

ela

tive

ly n

arr

ow

range o

f 1.9

% t

o 2

.2 %

betw

een 2

000 a

nd 2

004.

In

those

C

andid

ate

co

untr

ies

and

West

ern

Balk

an

terr

itories

that

report

ed

rela

tive

ly h

igh p

rice

inflation in 2

000,

there

was

a r

apid

reduct

ion in t

he p

ace

at

whic

h p

rice

s w

ere

ris

ing t

hro

ugh t

o 2

004.

In c

ontr

ast

, C

roatia,

Alb

ania

and t

he

form

er

Yugosl

av

Republic

of

Mace

donia

all

report

ed r

ela

tive

ly low

price

inflation

thro

ughout

the p

eriod c

onsi

dere

d.

Fin

an

ce

(1)

The e

uro

is

use

d in K

oso

vo

and in the R

epublic

of

Monte

negro

.

CH06.QXD 27/10/05 10:55 Page 73

(1)

Up u

ntil

19

97

the d

ata

were

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te;

in 1

99

8 a

nd y

ears

there

after

the d

ata

were

pro

vided b

y th

e M

inis

try

of

Agri

cultu

re a

nd F

ore

stry

.

7

74

Tab

le 7

.1:

Tota

l u

tilise

d a

gri

cult

ura

l a

rea

(th

ou

san

d h

ect

are

s)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

:173 8

84

:169 5

47

::

::

Bu

lgari

a (

1)

6 1

64

6 1

64

6 2

03

5 6

45

5 6

79

5 5

82

5 4

98

5 3

25

5 3

26

5 3

30

Cro

ati

a2 1

79

2 6

93

2 6

58

2 7

82

2 7

57

2 8

00

2 8

10

2 8

07

2 7

95

2 6

95

Ro

man

ia14 7

56

14 7

51

14 7

48

14 7

46

14 7

81

14 8

12

14 7

98

14 8

19

14 8

01

14 1

64

Tu

rkey

:39 3

63

39 2

41

39 3

46

39 1

79

38 7

56

40 9

67

43 8

27

43 9

49

:

Alb

an

ia1 1

30

1 1

47

1 1

45

1 1

44

1 1

44

1 1

44

1 1

39

1 1

40

1 1

21

1 1

22

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

:2 1

26

2 1

22

2 1

92

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

656

658

647

635

633

599

612

577

569

:

Serb

ia a

nd

Mo

nte

neg

ro6 2

49

6 2

25

6 2

22

6 2

17

5 6

37

5 6

27

5 6

29

5 6

25

5 6

33

:

Ko

so

vo

585

578

::

::

539

::

:

UTIL

ISED

AG

RIC

ULT

UR

AL A

REA

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 74

75

Fig

ure

7.1

: To

tal uti

lise

d a

gri

cult

ura

l la

nd

as

a p

rop

ort

ion

of

tota

l a

rea

, 2004 (

%)

(1)

20

00

. (2

) Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

. (3

) 2

00

3.

(4)

20

03

; to

tal are

a incl

udin

g K

oso

vo.

(5)

20

01

.

0

20

40

60

80

100

EU

-25

(1)

BG

(2)

HR

RO

TR (3)

AL

BA

(3)

MK

(3)

CS (4)

XK

(5)

The u

tilis

ed a

gricu

ltura

l are

a (

UA

A)

consi

sts

of

ara

ble

land,

perm

anent

gra

ssla

nd,

perm

anent

crops,

cro

ps

under

gla

ss,

and k

itch

en g

ard

ens.

Land a

rea m

ay

be

bro

ken

dow

n

into

utilis

ed

agricu

ltura

l are

a,

wooded

are

a,

and

oth

er

land.

Changes

in t

his

bre

akdow

n indic

ate

the e

xtent

to w

hic

h m

an m

odifie

s th

e b

asi

c

land r

eso

urc

e o

f a t

err

itory

for

agricu

lture

, in

dust

ry,

com

merc

ial

est

ablis

hm

ents

,

hum

an s

ett

lem

ents

, tr

ansp

ort

, re

creation a

nd o

ther

use

s.

Giv

en t

he h

igh e

conom

ic i

mport

ance

of

agricu

lture

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

it

is n

ot

surp

risi

ng t

o f

ind t

hat

the p

roport

ion o

f to

tal

land a

rea t

hat

was

utilis

ed a

s agricu

ltura

l la

nd w

as

genera

lly h

igher

than i

n t

he

EU

-25,

with A

lbania

and t

he f

orm

er

Yugosl

av

Republic

of

Mace

donia

the o

nly

exc

eptions

to t

his

rule

.

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 75

(1)

Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

.(2

) 2

00

3 inst

ead o

f 2

00

4.

(3)

20

01

inst

ead o

f 2

00

0;

perm

anent gra

ssla

nd r

efe

rs o

nly

to the h

arv

est

ed a

rea.

7

76

Tab

le 7

.2:

Bre

ak

dow

n o

f u

tilise

d a

gri

cult

ura

l a

rea

2000

2004

2000

2004

2000

2004

2000

2004

EU

-25

169 5

47

::

:31.4

::

:

Bu

lgari

a (

1)

5 5

82

5 3

30

62.1

61.2

32.2

33.9

4.7

4.0

Cro

ati

a2 8

00

2 6

95

39.3

41.2

56.1

54.5

4.6

4.3

Ro

man

ia14 8

12

14 1

64

63.2

62.8

33.4

33.8

3.4

3.4

Tu

rkey (

2)

38 7

56

43 9

49

61.5

60.7

31.9

33.3

6.6

6.0

Alb

an

ia1 1

44

1 1

22

50.5

51.5

38.9

37.7

10.6

10.8

Bo

snia

an

d H

erz

eg

ovin

a (

2)

:2 1

92

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(2)

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro5 6

27

5 6

31

60.5

60.2

20.3

20.4

19.2

19.4

Ko

so

vo

(3)

539

:48.6

:20.8

:0.9

:

T

ota

l u

tilise

d a

gri

cult

ura

l are

a

(UA

A)

(th

ou

san

d h

ect

are

s) A

rab

le lan

d Perm

an

en

t g

rass

lan

d Lan

d u

nd

er

perm

an

en

t cr

op

s o

f w

hic

h (

% o

f to

tal U

AA

),

UTIL

ISED

AG

RIC

ULT

UR

AL A

REA

, W

OO

DED

AR

EA

AN

D O

TH

ER

LA

ND

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 76

77

Fig

ure

7.2

: P

rop

ort

ion

of

wood

ed

are

a a

nd

oth

er

lan

d n

ot

for

ag

ricu

ltu

re o

rfo

rest

ry,

2004 (

% o

f to

tal

are

a)

(1)

(1)

EU

-25

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

and

Koso

vo,

not ava

ilable

; Tu

rkey,

not ava

ilable

for

oth

er

land.

(2)

Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

. (3

) O

ther

land incl

udes

abandoned a

gri

cultu

ral are

as

and o

ther

non-c

ulti

vate

d a

gri

cultu

ral la

nd.

(4)

Wooded a

rea,

20

02

; to

tal are

a incl

udin

g K

oso

vo.

0

10

20

30

40

50

BG

(2)

HR (3)

RO

TR

AL

BA

MK

CS (4)

XK

Wooded a

rea

Oth

er

land n

ot

for

agricu

lture

or

fore

stry

The EU

's agricu

ltura

l se

ctor

is ext

rem

ely

div

ers

e,

rangin

g fr

om

la

rge,

hig

hly

inte

nsi

ve f

arm

s to

subsi

stence

farm

ing. The la

tter

is o

ften c

om

monly

found in

the

Candid

ate

co

untr

ies

and

the

West

ern

Balk

ans

too,

with

main

ly

traditio

nal

work

ing p

ract

ices

bein

g im

ple

mente

d.

Land a

bandonm

ent,

under-

gra

zing a

nd a

lack

of

capital

to m

ain

tain

farm

yard

infr

ast

ruct

ure

are

som

e o

f th

e p

roble

ms

face

d b

y fa

rmers

in t

he C

andid

ate

countr

ies

and W

est

ern

Balk

ans.

Perm

anent

gra

ssla

nd a

ccounte

d f

or

31.4

% o

f th

e E

U-2

5's

utilis

ed a

gricu

ltura

l

are

a i

n 2

000,

while

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

it w

as

usu

ally

som

ew

hat

more

im

port

ant,

acc

ounting f

or

betw

een 3

1.9

% a

nd 3

8.9

%

of

utilis

ed a

gricu

ltura

l are

a.

Exc

eptions

to t

his

range i

ncl

uded K

osovo

on t

he

dow

nsi

de (

20.8

% in 2

001)

and C

roatia o

n t

he u

psi

de (

56.1

%).

The

nat

ura

l ter

rain

pla

ys a

n im

port

ant

role

in d

eter

min

ing la

nd u

se. In

Alb

ania

61 %

of

land w

as n

ot

use

d f

or

agricu

lture

, w

ith m

ore

than

one

third o

f th

e co

untr

y bei

ng

wooded

. Th

e only

oth

er c

ountr

y (a

mong t

hose

for

whic

h d

ata

are

avai

lable

) to

report

that

the

maj

ority

of

land w

as u

sed f

or

non-a

gricu

ltura

l purp

ose

s w

as C

roat

ia,

wher

e w

ooded

are

as a

lso c

ove

red m

ore

than

one

third o

f to

tal la

nd a

rea.

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 77

(1)

Up u

ntil

20

00

the d

ata

were

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te;

in 2

00

1 a

nd y

ears

there

after

the d

ata

were

pro

vided b

y th

e M

inis

try

of

Agri

cultu

re a

nd F

ore

stry

.(2

) D

ata

as

of

31

Dece

mber

for

legal entit

ies

and 1

5 J

anuary

for

pri

vate

fam

ily f

arm

s.(3

) Begin

nin

g w

ith 2

00

4,

the r

efe

rence

date

is

1 D

ece

mber

and n

ot th

e e

nd o

f th

e y

ear, a

s is

the c

ase

for

all

pre

vious

years

.

7

78

Tab

le 7

.3:

Liv

est

ock

as

of

en

d o

f p

eri

od

(th

ou

san

d h

ea

ds)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

::

::

90 3

39

88 7

59

87 4

89

86 4

11

Bu

lgari

a632

582

612

671

682

652

641

699

736

680

Cro

ati

a494

461

451

443

438

427

438

417

444

466

Ro

man

ia3 4

96

3 4

35

3 2

35

3 1

43

3 0

51

2 8

70

2 8

00

2 8

78

2 8

97

2 8

12

Tu

rkey

::

::

::

10 5

48

9 8

04

9 7

89

10 0

76

Alb

an

ia840

806

771

705

720

728

708

690

684

654

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

283

295

289

268

270

265

265

259

260

255

Serb

ia a

nd

Mo

nte

neg

ro1 9

26

1 8

99

1 8

78

1 8

12

1 4

27

1 3

40

1 3

07

1 2

95

1 2

77

:

Ko

so

vo

:

410

::

:289

347

318

::

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

150 8

31

150 4

26

151 1

94

158 7

51

::

152 9

02

154 3

56

152 7

93

151 1

43

Bu

lgari

a (

1)

2 1

40

1 5

00

1 4

80

1 7

21

1 5

12

831

789

997

1 0

32

931

Cro

ati

a (

2)

1 1

75

1 1

97

1 1

76

1 1

66

1 3

62

1 2

34

1 2

34

1 2

86

1 3

47

1 4

89

Ro

man

ia (

3)

7 9

60

8 2

35

7 0

97

7 1

94

5 8

48

4 7

97

4 4

47

5 0

58

5 1

45

6 5

89

Tu

rkey

::

::

::

34

74

Alb

an

ia100

98

97

83

99

103

106

114

132

143

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

175

192

184

197

226

204

189

196

179

179

Serb

ia a

nd

Mo

nte

neg

ro4 4

46

4 2

16

4 1

50

4 3

72

4 0

87

3 6

34

3 6

08

3 6

56

3 4

63

:

Ko

so

vo

:

80

::

:59

75

110

::

Catt

le

Pig

s

LIV

ESTO

CK

AN

D D

AIR

Y C

OW

S

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 78

79

Fig

ure

7.3

: D

air

y c

ow

s a

s a

pro

port

ion

of

the t

ota

l n

um

ber

of

catt

le a

s of

en

dof

peri

od

, 2004 (

%)

(1)

(1)

Turk

ey

and B

osn

ia a

nd H

erz

egovi

na,

not ava

ilable

. (2

) U

p u

ntil

20

00

the d

ata

were

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te;

in 2

00

1 a

nd y

ears

there

after

the d

ata

were

pro

vided b

y th

e M

inis

try

of

Agri

cultu

re a

nd F

ore

stry

. (3

) 2

00

3;

data

as

of

31

Dece

mber

for

legal entit

ies

and 1

5 J

anuary

for

pri

vate

fam

ily f

arm

s. (

4)

The r

efe

rence

date

is

1 D

ece

mber. (

5)

20

03

. (6

) 2

00

2.

0

25

50

75

100

EU

-25

BG

(2)

HR (3)

RO

(4)

TR

AL

BA

MK

CS (5)

XK

(6)

Within

th

e

EU

-25,

the

switch

fr

om

tr

aditio

nal,

ext

ensi

ve,

livest

ock

gra

zing

syst

em

s to

more

inte

nsi

ve a

nd s

peci

alis

ed f

arm

ing h

as

resu

lted in c

once

rns

with

resp

ect

to t

he p

oss

ibili

ty o

f envi

ronm

enta

l dam

age b

ein

g c

ause

d b

y ove

r-st

ock

ing

an

d

ove

r-g

razi

ng

la

nd

, esp

eci

ally

in

en

viro

nm

en

ts

such

as

up

lan

ds

an

d

moorlands.

The t

ota

l num

bers

of

catt

le,

pig

s, s

heep a

nd g

oats

has

rem

ain

ed

rela

tive

ly s

table

in t

he E

U-2

5 in

rece

nt

years

, w

hile

in t

he C

andid

ate

countr

ies

and

the W

est

ern

Balk

ans

num

bers

have

genera

lly d

ecr

ease

d.

Dairy

cow

s acc

ounte

d f

or

a 2

7.1

% s

hare

of

the t

ota

l num

ber

of

catt

le i

n t

he

EU

-25 in 2

004,

while

their s

hare

in t

he t

ota

l num

ber

of

catt

le w

as

ove

r 50 %

in

each

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

exc

ept

for

Kosovo,

where

it

was

48.3

% in 2

002.

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 79

(1)

EU

-15

; poultr

y, r

abbits

and o

ther

meat pro

duct

ion,

not in

cluded.

(2)

Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

.

7

80

Tab

le 7

.4:

An

ima

ls f

or

sla

ug

hte

r (t

hou

san

d t

on

nes

of

sla

ug

hte

r w

eig

ht)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

25 1

60

25 4

80

25 3

10

26 4

97

26 8

75

26 2

10

25 9

11

26 3

04

26 2

32

26 4

66

Bu

lgari

a (

2)

::

::

::

::

191

203

Cro

ati

a:

::

::

::

::

:

Ro

man

ia1 2

07

1 2

32

1 1

80

1 0

89

1 0

75

981

946

1 0

31

1 1

30

755

Tu

rkey

415

416

516

532

511

491

435

420

366

:

Alb

an

ia59

60

60

61

64

64

65

68

71

73

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

75

56

52

53

57

58

52

50

76

55

Serb

ia a

nd

Mo

nte

neg

ro911

929

900

899

844

852

784

814

785

:

Ko

so

vo

:

::

::

::

::

:

AN

IMA

LS F

OR

SLA

UG

HTER

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 80

81

Fig

ure

7.4

: B

rea

kd

ow

n o

f a

nim

als

for

sla

ug

hte

r, 2

004 (

ba

sed

on

th

ou

san

dto

nn

es

of

sla

ug

hte

r w

eig

ht)

(1)

(1)

EU

-25

, Tu

rkey,

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

. (2

) Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

. (3

) 2

00

3;

data

com

pri

ses

slaughte

rings

in s

laughte

rhouse

s, a

t le

gal entit

ies

and in

pri

vate

fam

ily f

arm

s.

(4)

20

03

.

0%

25%

50%

75%

100%

BG

(2)

HR (3)

RO

TR

AL

BA

MK

CS (4)

XK

Pig

sC

att

lePoultry

Sheep a

nd g

oats

The

info

rmation

pre

sente

d

on

the

slaughte

r of

livest

ock

re

late

s to

bovi

ne,

porc

ine,

equin

e,

ovi

ne a

nd c

aprine s

peci

es,

as

well

as

farm

yard

poultry

. The

EU

-25's

liv

est

ock

se

ctor

has

larg

ely

re

cove

red

from

th

e

ext

rem

e

mark

et

conditio

ns

cause

d b

y BSE a

nd f

oot

and m

outh

outb

reaks

in 2

001,

and a

n a

vian

flu o

utb

reak in 2

003.

The D

irect

ora

te G

enera

l fo

r A

gricu

lture

sta

tes

that

pig

meat,

with a

share

of

about

50 %

of

the t

ota

l m

eat

mark

et,

is

by

far

the m

ost

pre

ferr

ed m

eat

of

EU

-25 c

onsu

mers

. Poultry

, w

hic

h o

vert

ook b

eef

and v

eal

in 1

996,

acc

ounts

for

more

than a

quart

er

of

the E

U-2

5 m

eat

mark

et.

Within

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

the s

hare

of

pig

s in

tota

l m

eat

slaughte

r w

eig

ht

was

at

least

50 %

in

C

roatia and Rom

ania

. In

Alb

ania

and

the

form

er

Yugosl

av

Republic

of

Mace

donia

sh

eep

and

goats

acc

ounte

d f

or

a r

ela

tive

ly h

igh s

hare

, w

hile

Bulg

aria a

nd C

roatia w

ere

rela

tive

ly

speci

alis

ed in t

he p

oultry

sect

or.

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 81

(1)

Up u

ntil

19

97

the d

ata

were

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te;

in 1

99

8 a

nd y

ears

there

after

the d

ata

were

pro

vided b

y th

e M

inis

try

of

Agri

cultu

re a

nd F

ore

stry

.(2

) U

p u

ntil

20

00

the d

ata

were

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te;

in 2

00

1 a

nd y

ears

there

after

the d

ata

were

pro

vided b

y th

e M

inis

try

of

Agri

cultu

re a

nd F

ore

stry

.

7

82

Tab

le 7

.5:

Cro

p p

rod

uct

ion

(th

ou

san

d t

on

nes

of

ha

rvest

ed

pro

du

ctio

n)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

230 5

49

260 3

13

263 8

25

268 2

82

254 2

47

262 1

57

259 2

89

267 6

45

234 8

89

292 9

23

Bu

lgari

a (

1)

6 5

95

3 4

26

6 1

98

5 8

56

5 9

25

5 2

42

6 0

56

6 7

54

3 8

14

7 4

63

Cro

ati

a2 7

59

2 7

61

3 1

77

3 2

09

2 8

81

2 7

70

3 3

97

3 7

24

2 3

56

:

Ro

man

ia19 8

83

14 2

00

22 1

00

15 4

53

17 0

37

10 4

78

18 8

71

14 3

57

12 9

64

24 4

03

Tu

rkey

::

::

:32 1

08

29 4

26

30 6

86

30 6

58

33 8

63

Alb

an

ia645

504

602

603

498

566

502

519

489

499

Bo

snia

an

d H

erz

eg

ovin

a:

838

1 2

42

1 1

84

1 3

69

930

1 1

37

1 3

07

793

1 4

38

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

725

545

610

660

637

565

476

556

466

680

Serb

ia a

nd

Mo

nte

neg

ro9 2

39

7 2

88

9 4

50

8 6

62

8 6

04

5 2

29

9 0

21

8 3

18

5 5

36

7 3

70

Ko

so

vo

:

343

::

::

459

396

::

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

135 3

65

143 0

64

148 0

08

139 8

76

144 0

76

136 2

87

123 0

68

141 2

01

121 3

41

:

Bu

lgari

a (

2)

157

87

80

62

53

23

19

51

926

Cro

ati

a691

906

931

1 2

33

1 1

14

482

965

1 1

83

678

:

Ro

man

ia2 6

55

2 8

48

2 7

26

2 3

61

1 4

15

667

876

955

765

673

Tu

rkey

:14 5

43

18 4

00

22 2

83

17 1

02

18 8

21

12 6

33

16 5

23

12 6

22

13 5

17

Alb

an

ia67

74

51

56

40

42

39

39

50

0

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

55

78

72

58

67

56

38

44

40

52

Serb

ia a

nd

Mo

nte

neg

ro1 6

94

2 4

18

2 0

43

1 9

71

2 4

28

1 0

70

1 8

06

2 0

98

1 7

38

2 8

14

Ko

so

vo

:

::

::

::

::

:

Cere

als

(in

clu

din

g r

ice)

Su

gar

beet

CR

OP

PR

OD

UC

TIO

N

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 82

83

Tab

le 7

.6:

Cro

p p

rod

uct

ion

(th

ou

san

d t

on

nes

of

ha

rvest

ed

pro

du

ctio

n)

(1)

EU

-25

, C

roatia

, Rom

ania

, Tu

rkey

and the f

orm

er

Yugosl

av

Republic

of

Mace

donia

,ve

geta

ble

s only

.(2

) Sourc

e,

Min

istr

y of

Agri

cultu

re a

nd F

ore

stry

, exc

ept fo

r 2

00

0 d

ata

on p

ota

toes,

pro

vided b

y th

e N

atio

nal Sta

tistic

al In

stitu

te.

(3)

20

03

inst

ead o

f 2

00

4.

(4)

20

01

inst

ead o

f 2

00

0.

2000

2004

2000

2004

2000

2004

EU

-25

17 4

95

:72 3

66

65 4

79

61 7

57

:

Bu

lgari

a (

2)

620

1 1

10

398

573

:989

Cro

ati

a (

3)

149

181

554

375

413

427

Ro

man

ia869

1 9

95

3 4

70

4 2

30

3 0

59

4 7

75

Tu

rkey

2 1

40

2 4

47

5 3

70

4 8

00

:39 4

93

Alb

an

ia4

3161

160

688

768

Bo

snia

an

d H

erz

eg

ovin

a:

:286

447

199

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

10

10

164

210

680

:

Serb

ia a

nd

Mo

nte

neg

ro390

706

690

1 0

92

1 8

25

761

Ko

so

vo

(4)

::

71

:180

:

O

il s

eed

s P

ota

toes

Fru

it a

nd

veg

eta

ble

s (1

)

The o

utp

ut

of

cere

als

is

aff

ect

ed b

y, a

mong o

ther

fact

ors

, cl

imatic

conditio

ns,

subsi

des

rela

ting t

o p

art

icula

r cr

ops

or

set-

asi

de la

nd, dem

and f

rom

oth

er

sect

ors

(for

exa

mple

, in

crease

d w

hite m

eat

consu

mption h

as

led t

o h

igher

dem

and f

or

cere

als

as

feed u

se).

The E

U-2

5 p

ost

ed r

eco

rd c

ere

al yi

eld

s in

2004,

as

the h

arv

est

was

chara

cterise

d

by

favo

ura

ble

weath

er

conditio

ns;

this

patt

ern

was

repro

duce

d i

n m

any

of

the

Candid

ate

countr

ies

and t

he W

est

ern

Balk

ans.

The m

inim

um

price

for

sugar

beet

in t

he E

U-2

5 is

curr

ently

set

by

the c

om

mon

agricu

ltura

l polic

y (C

AP).

For

exa

mple

, su

gar

manufa

cture

rs a

re r

equired t

o p

ay

gro

wers

at

least

EU

R 4

6.7

2 p

er

tonne f

or

A-q

uota

beet.

These

rule

s are

soon t

o

be m

odifie

d,

with t

he o

bje

ctiv

e o

f si

gnific

antly

low

ering p

rice

s, w

hile

continuin

g

to g

uara

nte

e a

regula

r su

pply

. The r

efo

rms

will

als

o c

ate

r fo

r re

stru

cturing t

he

sect

or, w

ith p

art

ial co

mpensa

tion f

or

farm

ers

.

Ag

ricu

ltu

re

CH07.QXD 27/10/05 10:55 Page 83

(1)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

8

84

Tab

le 8

.1:

En

erg

y i

nte

nsi

ty a

nd

ele

ctri

city

gen

era

tion

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

230.4

235.0

227.6

224.2

214.9

208.8

209.7

206.5

209.5

:

Bu

lgari

a2 2

98.5

2 5

13.8

2 4

47.3

2 2

85.3

2 0

32.2

1 9

75.9

1 9

23.6

1 8

08.9

1 7

68.3

:

Cro

ati

a409.2

409.8

397.1

414.8

548.6

491.6

485.5

481.3

510.6

:

Ro

man

ia1 6

62.8

1 7

16.6

1 6

48.0

1 5

63.4

1 4

18.8

1 4

55.3

1 3

67.2

1 2

66.5

::

Tu

rkey (

1)

484.2

496.4

487.6

478.9

499.6

509.1

514.5

493.9

498.0

477.0

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

2 6

31.3

2 7

25.3

2 7

40.2

2 8

13.7

2 8

49.4

2 9

28.5

3 0

10.8

3 0

19.6

3 1

20.5

:

Bu

lgari

a41.8

42.7

42.8

41.7

38.2

40.9

44.0

42.7

42.6

:

Cro

ati

a8.9

10.5

9.7

10.9

12.2

10.7

12.2

12.3

13.2

:

Ro

man

ia59.3

61.4

57.1

53.5

50.7

51.9

53.9

54.9

56.6

59.6

Tu

rkey (

1)

86.2

94.9

103.3

111.0

116.4

124.9

122.7

129.4

140.6

150.0

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

6.1

6.6

6.7

7.0

6.8

6.8

6.4

6.1

6.7

6.6

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

3.2

3.2

3.5

En

erg

y in

ten

sity

of

the e

con

om

y (

kg

of

oil e

qu

ivale

nt)

Ele

ctri

city

gen

era

tio

n (

tho

usa

nd

GW

h)

EN

ER

GY I

NTEN

SIT

Y, E

LEC

TR

ICIT

Y G

EN

ER

ATIO

N A

ND

REN

EW

AB

LE E

NER

GY

En

erg

y

CH08.QXD 27/10/05 10:55 Page 84

85

Fig

ure

8.1

: Sh

are

of

ren

ew

ab

le e

nerg

y i

n e

lect

rici

ty c

on

sum

pti

on

(%

) (1

)

(1)

EU

-25

, A

lbania

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

, Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

. (2

) 2

00

3 inst

ead o

f2

00

4.

(3)

20

02

inst

ead o

f 2

00

4.

0

25

50

75

100

BG

(2)

HR (2)

RO

TR (3)

AL

BA

MK

CS

XK

1995

2004

The e

nerg

y in

tensi

ty o

f an e

conom

y ca

n b

e d

efined a

s th

e r

atio o

f gro

ss i

nla

nd

energ

y co

nsu

mption r

ela

tive

to G

DP: th

e d

ata

is p

rese

nte

d u

sing G

DP a

t co

nst

ant

1995 p

rice

s. A

n e

conom

y's

consu

mption o

f energ

y is

, in

genera

l, l

inked t

o t

he

leve

l of

its

act

ivity

as

measu

red by

GD

P. W

ith eff

icie

ncy

gain

s and gro

win

g

aw

are

ness

of

the e

nvi

ronm

enta

l im

pact

of

energ

y pro

duct

ion a

nd e

nerg

y use

, it

has

beco

me c

om

monpla

ce f

or

there

to b

e g

row

th in e

conom

ic o

utp

ut

alo

ngsi

de

gra

dual re

duct

ions

in e

nerg

y in

tensi

ty.

Ren

ew

ab

le

en

erg

y so

urc

es

incl

ud

e

win

d,

sola

r,

geo

therm

al,

hyd

ro

an

d

bio

mass

/wast

e.

The

share

of

renew

able

energ

y in

ele

ctrici

ty

consu

mption

measu

res

the c

ontr

ibution o

f ele

ctrici

ty f

rom

renew

able

energ

y so

urc

es

in t

ota

l

national

ele

ctrici

ty

consu

mption.

The

take-u

p

of

renew

able

energ

y so

urc

es

depends,

to

so

me

degre

e,

on

the

topogra

phy

of

the

terr

itory

co

nce

rned,

part

icula

rly

conce

rnin

g g

eoth

erm

al and h

ydro

ele

ctric

genera

tion.

En

erg

y

CH08.QXD 27/10/05 10:55 Page 85

(1)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

8

86

Tab

le 8

.2:

Pri

ma

ry p

rod

uct

ion

of

en

erg

y p

rod

uct

s (t

hou

san

d T

OE)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

896 4

12

928 0

92

917 6

48

897 5

69

903 6

34

892 1

33

892 7

17

892 0

34

885 4

29

:

Bu

lgari

a10 1

91

10 6

13

10 3

95

10 5

41

9 4

11

10 2

82

10 5

07

10 7

61

10 2

14

:

Cro

ati

a7 4

44

3 6

67

3 4

76

3 4

11

3 5

70

3 5

62

3 7

30

3 6

89

3 7

65

:

Ro

man

ia32 1

42

35 2

81

31 6

25

29 1

15

28 0

10

28 6

28

27 5

74

26 7

38

28 1

92

:

Tu

rkey (

1)

26 7

19

27 3

86

28 2

09

29 3

24

27 6

59

26 8

55

25 1

73

24 7

27

23 9

72

24 2

89

Alb

an

ia:

::

1 3

45

1 1

13

987

933

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

PR

IMA

RY P

RO

DU

CTIO

N O

F E

NER

GY

En

erg

y

CH08.QXD 27/10/05 10:55 Page 86

87

Tab

le 8

.3:

Bre

ak

dow

n o

f p

rim

ary

pro

du

ctio

n o

f en

erg

y, 2

004 (

thou

san

d T

OE)

(1)

20

03

.(2

) Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

(3)

Data

are

pre

sente

d in thousa

nds

of

tonnes;

hard

coal and lig

nite

, 2

00

1.

(4)

Loca

l pro

duct

ion o

f co

al in

thousa

nd tonnes;

data

colle

cted f

rom

the K

oso

vo E

nerg

yC

orp

ora

tion (

KEK

).

Cru

de o

il

Hard

co

al

an

d lig

nit

eN

atu

ral g

as

EU

-25 (

1)

144 6

06

196 6

38

189 3

92

Bu

lgari

a (

1)

31

4 6

45

13

Cro

ati

a (

1)

1 1

55

01 8

04

Ro

man

ia5 6

02

6 3

03

10 4

00

Tu

rkey (

2)

2 3

89

10 3

16

510

Alb

an

ia (

3)

386

111

Bo

snia

an

d H

erz

eg

ovin

a:

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:7 1

37

:Serb

ia a

nd

Mo

nte

neg

ro:

::

Ko

so

vo

(4)

:5 6

58

:

Prim

ary

energ

y pro

duct

ion i

s th

e e

xtra

ctio

n o

f energ

y fr

om

a n

atu

ral

sourc

e.

To

allo

w f

or

a c

om

pariso

n b

etw

een d

iffe

rent

types

of

energ

y pro

duct

ion t

he d

ata

are

conve

rted t

o a

com

mon u

nit o

f to

nnes

of

oil

equiv

ale

nt

(TO

E).

In r

ece

nt

years

there

has

genera

lly b

een a

slig

ht

decr

ease

in p

rim

ary

energ

y pro

duct

ion,

in b

oth

the E

U-2

5 a

nd t

he C

andid

ate

countr

ies.

The e

nerg

y m

ix i

s oft

en d

ete

rmin

ed b

y th

e n

atu

ral

reso

urc

e e

ndow

ment

of

a

terr

itory

. It

varies

wid

ely

as

a

funct

ion

of

a

series

of

fact

ors

, in

cludin

g

geogra

phic

al and g

eolo

gic

al ch

ara

cterist

ics,

his

torica

l and p

olit

ical ch

oic

es.

Coal

and

lignite

is

an

import

ant

sourc

e

of

energ

y pro

duct

ion

in

seve

ral

of

the

Candid

ate

countr

ies

and W

est

ern

Balk

ans.

En

erg

y

CH08.QXD 27/10/05 10:55 Page 87

(1)

20

03

inst

ead o

f 2

00

4.

(2)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

(3)

Net im

port

s in

thousa

nd tonnes.

8

88

Tab

le 8

.4:

En

erg

y b

ala

nce

sh

eet

(th

ou

san

d T

OE)

1995

2000

2004

1995

2000

2004

1995

2000

2004

EU

-25 (

1)

896 4

12

892 1

33

885 4

29

702 1

36

801 7

10

875 6

49

1 5

78 1

46

1 6

54 1

79

1 7

26 1

88

Bu

lgari

a (

1)

10 1

91

10 2

82

10 2

14

13 4

75

8 8

72

9 1

90

23 3

04

19 2

18

19 6

09

Cro

ati

a (

1)

7 4

44

3 5

62

3 7

65

2 3

58

4 1

74

5 1

09

9 7

92

7 5

25

8 8

96

Ro

man

ia (

1)

32 1

42

28 6

28

28 1

92

14 5

42

8 0

98

10 5

27

47 0

16

37 0

13

39 0

32

Tu

rkey (

2)

26 7

19

26 8

55

24 2

89

39 7

79

56 2

80

67 4

63

63 6

79

81 2

51

87 5

94

Alb

an

ia (

3)

:987

::

858

::

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

Ko

so

vo

:

::

::

::

::

G

ross

in

lan

d e

nerg

y c

on

sum

pti

on

N

et

imp

ort

s o

f en

erg

y P

rim

ary

pro

du

ctio

n o

f en

erg

y

EN

ER

GY B

ALA

NC

E S

HEET A

ND

EN

ER

GY C

ON

SU

MP

TIO

N

En

erg

y

CH08.QXD 27/10/05 10:55 Page 88

89

Fig

ure

8.2

: B

rea

kd

ow

n o

f fi

na

l en

erg

y c

on

sum

pti

on

, 2004 (

% o

f to

tal)

(1)

(1)

Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

, Serb

ia a

nd

Monte

negro

and K

oso

vo,

not

ava

ilable

. (2

) 2

00

3.

(3)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

(4

) 2

00

1.

0%

25%

50%

75%

100%

EU

-25

(2)

BG

(2)

HR (2)

RO

(2)

TR (3)

AL

(4)

BA

MK

CS

XK

Indust

ryTra

nsp

ort

Oth

er

sect

ors

and h

ouse

hold

s

Energ

y bala

nce

sheet

data

incl

udes

info

rmation f

or

thre

e k

ey

indic

ato

rs t

hat

are

rela

ted b

y th

e s

imple

equation o

f:

consu

mption =

pro

duct

ion +

net

import

s

In both

th

e EU

-25 and th

e C

andid

ate

co

untr

ies

there

w

as

a re

lative

ly hig

h

relia

nce

on e

nerg

y im

port

s in

ord

er

to m

eet

consu

mption.

Aro

und h

alf o

f th

e

EU

-25's

energ

y co

nsu

mption in

2003 w

as

acc

ounte

d fo

r by

import

s, w

hic

h

alm

ost

matc

hed t

he p

rim

ary

pro

duct

ion o

f energ

y. T

urk

ey

had a

n e

ven g

reate

r

dependence

, as

net

import

s acc

ounte

d f

or

77 %

of

gro

ss inla

nd c

onsu

mption in

2004.

One i

mport

ant

com

ponent

of

Turk

ey'

s energ

y polic

y is

an a

mbitio

n t

o

beco

me a

n e

nerg

y co

rrid

or

from

east

to w

est

, w

hic

h m

ay

help

reduce

its

hig

h

dependency

on o

il and g

as

import

s fr

om

Russ

ia a

nd t

he M

iddle

East

.

En

erg

y

CH08.QXD 27/10/05 10:55 Page 89

(1)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

8

90

Tab

le 8

.5:

Bre

ak

dow

n o

f fi

na

l en

erg

y c

on

sum

pti

on

(%

of

tota

l)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

29.8

28.7

29.2

28.4

28.0

28.8

28.2

28.2

28.0

:

Bu

lgari

a52.9

51.5

52.2

44.6

39.9

40.9

40.3

38.2

38.4

:

Cro

ati

a29.2

28.5

29.5

28.2

25.9

26.0

26.4

25.0

26.3

:

Ro

man

ia53.6

48.2

43.8

39.6

38.3

39.4

41.6

44.4

43.3

:

Tu

rkey (

1)

34.8

36.7

37.9

38.0

36.1

39.1

37.3

41.6

41.8

39.5

Alb

an

ia:

::

::

:13.5

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

::

::

::

::

::

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

28.7

28.5

29.3

30.2

31.0

30.7

30.2

30.8

30.4

:

Bu

lgari

a17.3

15.9

16.3

20.5

23.2

21.8

23.2

24.1

25.2

:

Cro

ati

a22.2

21.2

22.1

23.7

28.6

28.2

27.9

29.0

28.2

:

Ro

man

ia12.1

14.2

14.8

15.2

14.3

15.3

17.8

19.0

17.2

:

Tu

rkey (

1)

22.1

21.6

19.7

19.0

20.6

19.8

21.8

19.3

19.4

20.5

Alb

an

ia:

::

::

:27.9

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

::

::

::

::

::

Ind

ust

ry

Tra

nsp

ort

BR

EA

KD

OW

N O

F F

INA

L E

NER

GY C

ON

SU

MP

TIO

N

En

erg

y

CH08.QXD 27/10/05 10:55 Page 90

91

Fig

ure

8.3

: H

ou

seh

old

s -

pro

port

ion

of

fin

al

en

erg

y c

on

sum

pti

on

, 2004

(% o

f to

tal)

(1

)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

,Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

.(2

) 2

00

3.

(3)

Sourc

e,

Min

istr

y of

Energ

y and N

atu

ral Reso

urc

es.

0

10

20

30

40

EU

-25

(2)

BG

(2)

HR (2)

RO

(2)

TR (3)

AL

BA

MK

CS

XK

End u

sers

of

energ

y ca

n b

e s

tudie

d in t

erm

s of

the b

reakdow

n b

y se

ctor

of

final

energ

y co

nsu

mption.

Som

e

of

the

most

im

port

ant

end

use

rs

incl

ude

the

indust

rial s

ect

or

and t

he t

ransp

ort

sect

or

(priva

te a

nd p

ublic

tra

nsp

ort

, pass

enger

and f

reig

ht

transp

ort

), w

hile

the h

eadin

g '

oth

er

sect

ors

' in

cludes

agricu

lture

,

fish

ing

, d

istr

ibu

tio

n,

(no

n-t

ran

spo

rt)

serv

ices,

ad

min

istr

ati

ve

bo

die

s an

d

house

hold

s.

The s

truct

ure

of

final energ

y dem

and d

iffe

rs s

om

ew

hat

betw

een t

he E

U-2

5,

the

Candid

ate

co

untr

ies

and th

e W

est

ern

Balk

ans.

The EU

-25's

tr

ansp

ort

se

ctor

acc

ounts

for

a r

ela

tive

ly h

igh p

roport

ion o

f final

energ

y dem

and,

while

in t

he

Candid

ate

countr

ies

and t

he W

est

ern

Balk

ans

the indust

rial se

ctor

oft

en p

lays

a

more

pro

min

ent

role

in t

erm

s of

its

energ

y re

quirem

ents

. These

diffe

rence

s m

ay

be e

xpla

ined, at

least

in p

art

, beca

use

tra

ditio

nal, h

igh e

nerg

y co

nsu

min

g m

inin

g

and m

anufa

cturing a

ctiv

itie

s oft

en p

lay

an im

port

ant

role

in t

he indust

rial m

ake-

up o

f th

e C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans.

Within

the E

U-2

5,

the

rela

tive

ly h

igh s

hare

of

transp

ort

in f

inal energ

y dem

and is

drive

n b

y hig

h leve

ls

of

moto

risa

tion a

nd a

hig

h p

ropensi

ty t

o u

se r

oad f

reig

ht

transp

ort

, both

of

whic

h r

esu

lt in d

em

and f

or

petr

ol and d

iese

l pro

duct

s.

En

erg

y

CH08.QXD 27/10/05 10:55 Page 91

(1)

Gro

ss s

eri

es.

9

92

Tab

le 9

.1:

Pro

du

ctio

n a

nd

ou

tpu

t p

rice

in

dic

es

for

tota

l in

du

stry

excl

ud

ing

con

stru

ctio

n (

2000=

100)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

87.0

87.4

90.8

93.8

95.4

100.0

100.2

99.6

100.2

102.4

Bu

lgari

a:

::

::

100.0

102.2

107.0

122.0

143.6

Cro

ati

a (

1)

87.3

90.0

96.2

99.7

98.3

100.0

106.0

111.7

116.3

120.6

Ro

man

ia (

1)

112.6

119.7

111.0

95.7

93.4

100.0

108.3

113.0

116.5

122.7

Tu

rkey

::

::

:100.0

91.3

99.9

108.7

119.3

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

90.5

93.4

94.9

99.2

96.6

100.0

96.9

91.8

96.1

94.8

Serb

ia a

nd

Mo

nte

neg

ro95.0

103.0

113.0

117.0

90.0

100.0

100.0

102.0

99.0

106.0

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

94.9

95.4

96.3

95.6

95.4

100.0

101.9

101.7

103.2

106.2

Bu

lgari

a:

::

82.8

85.1

100.0

103.7

105.0

110.2

116.8

Cro

ati

a:

::

::

::

::

:

Ro

man

ia:

13.8

34.8

45.1

65.2

100.0

140.3

174.6

208.9

247.6

Tu

rkey

::

::

::

::

::

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

81.0

84.8

88.4

91.9

91.8

100.0

102.0

101.1

100.8

101.7

Serb

ia a

nd

Mo

nte

neg

ro11.8

22.4

26.8

33.6

48.4

100.0

185.1

201.2

210.6

229.1

Ko

so

vo

:

::

::

::

::

:

Pro

du

ctio

n in

dex

Do

mest

ic o

utp

ut

pri

ce in

dex

PR

OD

UC

TIO

N A

ND

OU

TP

UT P

RIC

E I

ND

ICES

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 92

93

Fig

ure

9.1

: A

nn

ua

l a

vera

ge g

row

th r

ate

s fo

r to

tal

ind

ust

ry e

xcl

ud

ing

con

stru

ctio

n,

2000-2

004 (

%)

(1)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

; th

e f

orm

er

Yugosl

av

Republic

of

Mace

donia

, not ava

ilable

for

the p

roduct

ion index;

Cro

atia

and T

urk

ey,

not

ava

ilable

for

the o

utp

ut pri

ce index.

(2

) G

ross

seri

es.

05

10

15

20

25

30

EU

-25

BG

HR (2)

RO

(2)

TR

AL

BA

MK

CS

XK

Pro

duct

ion in

dex

Dom

est

ic o

utp

ut

price

index

As

in m

any

of

the n

ew

Mem

ber

Sta

tes,

there

was

rela

tive

ly r

apid

gro

wth

report

ed

for

the i

ndex

of

pro

duct

ion f

or

tota

l in

dust

ry (

exc

ludin

g c

onst

ruct

ion)

in t

he

majo

rity

of

the

Candid

ate

co

untr

ies

and

in

the

West

ern

Balk

ans.

In

deed,

betw

een 2

000 a

nd 2

004 indust

rial outp

ut

exp

anded a

t a f

ast

er

rate

than in t

he

EU

-25 in e

ach

terr

itory

for

whic

h d

ata

are

ava

ilable

, exc

ept

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

.

Inflationary

pre

ssure

s w

ere

genera

lly h

igher

in t

he C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans.

This

w

as

part

icula

rly

true

in

Rom

ania

and

in

Serb

ia

and

Monte

negro

, w

here

dom

est

ic o

utp

ut

price

s fo

r th

e indust

rial eco

nom

y ro

se,

on

ave

rage,

by

more

than 2

0 %

per

annum

betw

een 2

000 a

nd 2

004,

com

pare

d

with a

n E

U-2

5 a

vera

ge o

f 1.5

% p

er

annum

. In

contr

ast

to t

he o

ther

Candid

ate

countr

ies

and W

est

ern

Balk

ans,

dom

est

ic o

utp

ut

price

s fo

r to

tal in

dust

ry r

ose

at

a m

ore

modest

pace

in B

ulg

aria (

4.0

% p

er

annum

) and t

he f

orm

er

Yugosl

av

Republic

of

Mace

donia

(0.4

% p

er

annum

).

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 93

9

94

Tab

le 9

.2:

Con

stru

ctio

n o

utp

ut

an

d c

on

stru

ctio

n c

ost

s (2

000=

100)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

93.8

92.5

93.2

94.8

98.2

100.0

100.8

102.0

103.1

104.1

Bu

lgari

a:

::

::

100.0

114.2

117.3

123.9

139.9

Cro

ati

a93.0

101.4

118.3

119.1

110.0

100.0

103.6

116.9

143.6

146.5

Ro

man

ia:

::

::

100.0

109.0

119.9

131.7

127.6

Tu

rkey

::

::

::

::

::

Alb

an

ia:

::

:96.7

100.0

95.8

102.1

108.4

120.1

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro89.0

91.0

98.0

97.0

87.0

100.0

::

::

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

88.7

90.1

92.1

94.0

96.8

100.0

103.6

108.1

113.0

119.5

Bu

lgari

a:

::

::

::

::

:

Cro

ati

a:

::

::

::

::

:

Ro

man

ia:

::

::

100.0

140.6

175.2

214.3

255.3

Tu

rkey

7.7

13.6

25.8

44.9

70.0

100.0

156.5

212.7

257.9

295.6

Alb

an

ia61.8

63.8

73.6

83.8

91.1

100.0

106.3

107.3

110.2

113.5

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

Co

nst

ruct

ion

ou

tpu

t

Co

nst

ruct

ion

co

sts

CO

NSTR

UC

TIO

N O

UTP

UT A

ND

CO

NSTR

UC

TIO

N C

OSTS

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 94

95

Fig

ure

9.2

: A

nn

ua

l a

vera

ge g

row

th r

ate

s fo

r co

nst

ruct

ion

, 2000-2

004 (

%)

(1)

(1)

Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

, Serb

ia a

nd

Monte

negro

and K

oso

vo,

not ava

ilable

; Tu

rkey,

not ava

ilable

for

const

ruct

ion o

utp

ut;

Bulg

ari

a a

nd C

roatia

, not ava

ilable

for

const

ruct

ion c

ost

s.

0

10

20

30

40

EU

-25

BG

HR

RO

TR

AL

BA

MK

CS

XK

Const

ruct

ion o

utp

ut

Const

ruct

ion c

ost

s

Pro

duct

ion

in

the

const

ruct

ion

sect

ors

of

the

Candid

ate

co

untr

ies

and

the

West

ern

Balk

ans

gre

w a

t a f

ast

er

pace

than t

he E

U-2

5 a

vera

ge b

etw

een 2

000

and 2

004.

Const

ruct

ion o

utp

ut

rose

by

an a

vera

ge o

f 1.0

% p

er

annum

in t

he

EU

-25

ove

r th

e

period

consi

dere

d,

while

in

th

e

Candid

ate

co

untr

ies

the

corr

esp

ondin

g r

ate

s ra

nged b

etw

een 6

.3 %

per

annum

in R

om

ania

and 1

0.0

%

per

annum

in C

roatia (

no d

ata

ava

ilable

for

Turk

ey)

.

Const

ruct

ion c

ost

s als

o t

ended t

o r

ise a

t a m

ore

rapid

pace

within

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

betw

een 2

000 a

nd 2

004,

with p

art

icula

rly

hig

h c

ost

incr

ease

s (u

pw

ard

s of

25 %

per

annum

) bein

g r

eco

rded i

n R

om

ania

and T

urk

ey.

Const

ruct

ion c

ost

s ro

se b

y an a

vera

ge o

f 3.2

% p

er

annum

in A

lbania

ove

r th

e s

am

e p

eriod.

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 95

(1)

Exc

ludin

g r

epair

serv

ices

of

pers

onal and h

ouse

hold

goods

(NA

CE G

roup 5

2.7

).(2

) G

ross

seri

es;

VAT

incl

uded;

incl

udes

legal and p

hys

ical pers

ons.

(3)

Gro

ss s

eri

es.

(4)

Sourc

e,

Min

istr

y of

Cultu

re a

nd T

ouri

sm.

9

96

Tab

le 9

.3:

Reta

il t

rad

e a

nd

tou

rism

(2000=

100)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

85.8

87.5

89.5

92.9

96.0

100.0

104.5

107.4

109.8

112.8

Bu

lgari

a (

1)

::

::

:100.0

105.8

114.7

135.2

153.1

Cro

ati

a (

2)

::

::

:100.0

105.6

117.5

129.0

133.4

Ro

man

ia (

3)

::

::

:100.0

101.9

110.0

122.3

143.8

Tu

rkey

::

::

::

::

::

Alb

an

ia:

::

:67.6

100.0

95.2

91.2

107.5

127.7

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro (

1)

84.0

90.2

100.4

104.9

90.7

100.0

117.5

142.4

161.3

188.4

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

88.5

92.4

93.0

93.9

98.8

100.0

101.8

::

:

Bu

lgari

a97.4

88.4

82.5

92.4

83.0

100.0

96.8

110.0

118.8

141.1

Cro

ati

a102.9

100.7

99.8

100.0

97.1

100.0

94.1

94.2

97.0

99.8

Ro

man

ia103.2

102.5

102.4

102.6

101.8

100.0

100.0

99.0

101.2

104.3

Tu

rkey (

4)

86.3

92.7

96.3

96.6

98.2

100.0

113.4

121.8

129.4

:

Alb

an

ia59.0

62.8

57.8

57.4

60.4

100.0

129.7

136.8

135.2

152.1

Bo

snia

an

d H

erz

eg

ovin

a13.4

19.0

76.1

79.1

88.4

100.0

104.5

106.0

106.6

107.0

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

94.2

94.4

97.0

100.0

102.9

100.0

102.5

103.4

102.2

103.4

Serb

ia a

nd

Mo

nte

neg

ro110.4

110.4

111.2

111.9

107.5

100.0

100.0

98.5

94.0

96.3

Ko

so

vo

:

::

::

::

::

:

Vo

lum

e o

f sa

les

ind

ex f

or

reta

il t

rad

e

Ind

ex o

f th

e n

um

ber

of

bed

pla

ces

in h

ote

ls a

nd

sim

ilar

collect

ive a

cco

mm

od

ati

on

est

ab

lish

men

ts

RETA

IL T

RA

DE A

ND

TO

UR

ISM

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 96

97

Fig

ure

9.3

: A

rriv

als

of

non

-resi

den

ts s

tayin

g i

n c

ollect

ive a

ccom

mod

ati

on

est

ab

lish

men

ts (

thou

san

ds)

(1)

(1)

EU

-25

(2

18

mill

ion,

20

00

); T

urk

ey

and K

oso

vo,

not ava

ilable

.

0

1 0

00

2 0

00

3 0

00

4 0

00

BG

HR

RO

TR

AL

BA

MK

CS

XK

1995

2000

2004

The v

olu

me o

f sa

les

index

for

reta

il tr

ade p

rovi

des

a m

easu

re o

f deflate

d t

urn

ove

r.

Betw

een 2

000 a

nd 2

004 t

his

index

gre

w o

n a

vera

ge b

y 3.1

% p

er

annum

in t

he

EU

-25. This

fig

ure

was

well

belo

w t

he r

ate

s of

deflate

d t

urn

ove

r gro

wth

reco

rded

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans.

Am

ong t

hose

countr

ies

for

whic

h d

ata

are

ava

ilable

, th

e v

olu

me o

f sa

les

index

rose

by

betw

een 6

.3 %

per

annum

in A

lbania

and 1

7.2

% p

er

annum

in S

erb

ia a

nd M

onte

negro

.

Arr

ivals

of

non-r

esi

dents

st

ayi

ng in

co

llect

ive acc

om

modation est

ablis

hm

ents

within

th

e

EU

-25

tota

lled

218

mill

ion

in

2000.

Tourism

is

re

lative

ly

under-

deve

loped in t

he m

ajo

rity

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

with th

e nota

ble

exc

eptions

of

Cro

atia (w

here

th

ere

w

ere

3.4

m

illio

n non-

resi

dent

arr

ivals

in

2004)

and Tu

rkey

(no off

icia

l data

ava

ilable

). D

esp

ite th

e

rela

tive

ly l

ow

leve

ls o

f to

urist

arr

ivals

, th

ere

was

how

eve

r ra

pid

gro

wth

in t

he

num

ber

of

tourist

arr

ivals

in t

he m

ajo

rity

of

the C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans,

with t

ourism

in B

ulg

aria d

eve

lopin

g a

t a p

art

icula

rly

fast

rate

betw

een 2

000 a

nd 2

004.

Ind

ust

ry,

con

stru

ctio

n a

nd

serv

ices

CH09.QXD 27/10/05 10:56 Page 97

(1)

Begin

nin

g in 2

00

2,

IV-c

ate

gory

roads

are

exc

luded f

rom

the n

atio

nal ro

ad n

etw

ork

.(2

) Exc

ludes

munic

ipalit

y ro

ads.

10

98

Tab

le 1

0.1

: Tr

an

sport

in

fra

stru

ctu

re (

thou

san

d k

ilom

etr

es)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

::

::

::

::

::

Bu

lgari

a (

1)

37.0

37.0

37.0

36.9

37.0

37.0

37.0

19.0

18.9

18.9

Cro

ati

a26.6

26.6

26.6

27.5

27.5

27.6

27.7

27.8

27.8

27.6

Ro

man

ia73.0

73.0

73.0

73.0

73.0

78.0

78.0

79.0

79.0

79.0

Tu

rkey (

2)

380.0

380.0

380.0

379.0

383.0

416.0

425.0

426.0

427.0

:

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

9.6

9.6

10.5

11.5

12.2

12.5

12.9

13.0

13.0

13.1

Serb

ia a

nd

Mo

nte

neg

ro49.0

49.2

50.0

50.1

44.5

44.4

44.6

44.9

44.5

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

213.1

211.6

208.9

208.1

207.7

206.0

204.2

203.9

::

Bu

lgari

a4.3

4.3

4.3

4.3

4.3

4.3

4.3

4.3

4.3

4.3

Cro

ati

a2.7

2.7

2.7

2.7

2.7

2.7

2.7

2.7

2.7

2.7

Ro

man

ia11.0

11.0

11.0

11.0

11.0

11.0

11.0

11.0

11.0

11.0

Tu

rkey

8.5

8.6

8.6

8.6

8.7

8.7

8.7

8.6

8.7

8.7

Alb

an

ia:

::

::

0.4

0.4

0.4

0.4

0.4

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

0.9

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

Serb

ia a

nd

Mo

nte

neg

ro4.1

4.1

4.1

4.1

4.1

4.1

4.1

4.1

4.1

:

Ko

so

vo

:

::

::

::

::

:

Len

gth

of

all r

oad

s (e

xcl

ud

ing

mo

torw

ays)

Len

gth

of

railw

ay n

etw

ork

(lin

es

in o

pera

tio

n)

TR

AN

SP

OR

T I

NFR

ASTR

UC

TU

RE

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 98

05

10

15

BG

HR

RO

TR

AL

BA

MK

CS

XK

1995

2004

99

Fig

ure

10.1

: D

en

sity

of

the m

oto

rwa

y n

etw

ork

(k

ms

per

thou

san

d k

m²

of

lan

d a

rea

) (1

)

(1)

Alb

ania

, 0

km

s; E

U-2

5,

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

.

The tr

ansp

ort

in

frast

ruct

ure

endow

ment

of

the C

andid

ate

co

untr

ies

and th

e

West

ern

Balk

ans

is r

ela

tive

ly s

carc

e.

Furt

herm

ore

, m

ost

countr

ies

show

min

or

changes

in t

heir r

oad a

nd r

ail

netw

ork

s. H

ow

eve

r, t

here

was

a r

apid

exp

ansi

on in

the ro

ad netw

ork

in

Tu

rkey

in th

e ye

ars

up to

2003,

while

th

e m

oto

rway

netw

ork

s of

Cro

atia a

nd R

om

ania

double

d in s

ize b

etw

een 1

995 a

nd 2

004.

The E

U-2

5 h

ad 2

04 0

00 k

ilom

etr

es

of

railw

ay

track

in 2

002.

The c

om

bin

ed s

um

of

all

railw

ay

track

s in

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

was

equal

to m

ore

than 1

5 %

of

the E

U-2

5 t

ota

l. T

he r

ela

tive

im

port

ance

of

rail

transp

ort

was

part

icula

rly

hig

h in

Bulg

aria, Rom

ania

and S

erb

ia a

nd M

onte

negro

,

and p

art

icula

rly

low

in T

urk

ey.

Note

that

the a

bso

lute

num

ber

of

kilo

metr

es

of

road o

r ra

il netw

ork

s only

tells

part

of

the st

ory

re

gard

ing th

e perf

orm

ance

of

transp

ort

in

frast

ruct

ure

s, as

netw

ork

densi

ty,

qualit

y, a

nd f

requency

of

use

are

als

o im

port

ant

dete

rmin

ants

.

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 99

(1)

EU

-15

. (2

) D

ata

for

20

02

and 2

00

3,

exc

ludin

g M

onte

negro

. (3

) Bre

ak

in s

eri

es

in 2

00

0 a

nd there

after.

(4)

Up u

ntil

20

00

data

cove

r all

legal entit

ies

with

5 o

r m

ore

fre

ight ve

hic

les,

while

tra

nsp

ort

perf

orm

ed b

y pri

vate

indiv

idual ro

ad c

arr

iers

(natu

ral pers

ons)

was

exc

luded;

from

20

01

onw

ard

s data

cove

r th

e o

pera

tion o

f le

gal entit

ies

and n

atu

ral pers

ons

engaged in the tra

nsp

ort

of

goods,

road f

reig

ht ve

hic

les

are

defined w

ith a

loadin

g c

apaci

ty o

f ove

r 3

50

0kg

and m

ust

be r

egis

tere

d w

ith the M

inis

try

of

Inte

rior.

10

100

Tab

le 1

0.2

: In

lan

d t

ran

sport

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

:161 9

25

165 3

03

169 1

94

173 7

72

177 3

77

::

::

Bu

lgari

a1 6

48

1 7

07

1 7

31

1 8

09

1 9

08

1 9

93

2 0

86

2 1

74

2 3

09

2 4

38

Cro

ati

a768

841

939

1 0

01

1 0

66

1 1

44

1 1

96

1 2

44

1 2

93

1 3

38

Ro

man

ia2 1

97

2 3

26

2 4

47

2 5

95

2 7

02

2 7

78

2 8

81

2 9

73

3 0

88

3 2

25

Tu

rkey

3 0

59

3 2

74

3 5

70

3 8

38

4 0

72

4 4

22

4 5

35

4 6

00

4 7

00

5 4

00

Alb

an

ia:

::

:99

115

134

149

175

190

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

286

284

289

289

290

299

309

308

300

:

Serb

ia a

nd

Mo

nte

neg

ro (

2)

1 3

60

1 3

97

1 5

84

1 7

49

1 6

91

1 3

93

1 4

81

1 3

44

1 3

88

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

72.2

72.6

72.3

73.6

74.8

74.5

75.5

76.1

76.4

:

Bu

lgari

a (

3)

77.3

77.2

76.7

77.0

77.8

52.3

60.2

62.9

61.7

:

Cro

ati

a (

4)

38.4

39.1

38.6

37.9

38.6

37.1

75.9

76.4

76.2

76.6

Ro

man

ia42.0

41.4

45.1

43.1

43.5

41.7

48.6

57.4

62.9

:

Tu

rkey

93.0

93.8

93.6

94.8

94.8

94.3

95.3

95.5

94.6

95.3

Alb

an

ia:

::

::

::

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

::

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

:

Ko

so

vo

:

::

::

::

::

:

Nu

mb

er

of

pass

en

ger

cars

(th

ou

san

ds)

Ro

ad

fre

igh

t tr

an

spo

rt a

s a s

hare

of

tota

l in

lan

d f

reig

ht

tran

spo

rt (

%)

INLA

ND

TR

AN

SP

OR

T, N

UM

BER

OF C

AR

S

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 100

101

Fig

ure

10.2

: A

vera

ge n

um

ber

of

cars

per

100 i

nh

ab

ita

nts

(u

nit

s) (

1)

(1)

Bosn

ia a

nd H

erz

egovi

na a

nd

Koso

vo,

not ava

ilable

; A

lbania

, not ava

ilable

for

19

95

.(2

) EU

-15

, 1

99

6 inst

ead o

f 1

99

5,

20

00

inst

ead o

f 2

00

4.

(3)

Popula

tion d

ata

was

revi

sed

base

d o

n the 1

98

9 a

nd 2

00

1 p

opula

tion c

ensu

s. (

4)

20

03

inst

ead o

f 2

00

4.

0

20

40

60

EU

-25

(2)

BG

HR

RO

TR

AL

(3)

BA

MK

(4)

CS (4)

XK

1995

2004

Follo

win

g p

olit

ical ch

ange in m

any

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans,

most

terr

itories

report

ed t

hat

ave

rage h

ouse

hold

inco

mes

were

ris

ing.

This

may,

to s

om

e d

egre

e,

exp

lain

why

hig

her

moto

risa

tion r

ate

s w

ere

reco

rded;

although e

ven w

hen G

DP p

er

capita d

id n

ot

gro

w a

t a r

apid

pace

there

was

a

genera

l in

crease

in m

oto

risa

tion r

ate

s. T

he n

um

ber

of

pass

enger

cars

incr

ease

d

on a

vera

ge b

y at

least

5 %

per

annum

betw

een 2

000 a

nd 2

004 in B

ulg

aria a

nd

Turk

ey,

ris

ing t

o 1

3.5

% p

er

annum

in A

lbania

(w

hic

h s

tart

ed f

rom

a p

art

icula

rly

low

leve

l).

The a

vera

ge n

um

ber

of

pass

enger

cars

per

inhabitant

was

hig

hest

in

Bulg

aria a

nd C

roatia (

with a

ppro

xim

ate

ly o

ne c

ar

per

thre

e inhabitants

in 2

004),

although t

hese

rate

s w

ere

still

som

e w

ay

behin

d t

he E

U-2

5 a

vera

ge (

alm

ost

one

car

per

two inhabitants

).

Within

the E

U-2

5 t

here

has

been a

mark

ed s

witch

to r

oad f

reig

ht

transp

ort

in

rece

nt

years

, w

ith 7

6.4

% o

f all

inla

nd f

reig

ht

bein

g t

ransp

ort

ed b

y ro

ad in

2003.

The m

odal s

plit

in C

roatia r

ese

mble

d c

lose

ly t

hat

of

the E

U-2

5, w

hile

road f

reig

ht

pla

yed a

n e

ven g

reate

r ro

le in t

he t

ransp

ort

mix

in T

urk

ey.

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 101

(1)

Bre

ak

in s

eri

es

begin

nin

g in 2

00

0.

10

102

Tab

le 1

0.3

: To

tal

inla

nd

fre

igh

t tr

an

sport

in

ton

ne

-km

/GD

P i

n 1

995 c

on

sta

nt

pri

ces

(1995=

100)

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

100.0

99.2

101.2

101.6

100.9

100.8

99.8

100.6

99.7

Bu

lgari

a (

1)

100.0

97.2

100.3

81.7

67.3

31.8

33.3

33.2

33.5

Cro

ati

a:

::

::

::

::

Ro

man

ia100.0

97.8

104.8

83.7

71.5

77.6

81.7

90.1

95.4

Tu

rkey

100.0

111.7

107.3

111.9

116.4

116.6

117.0

107.8

103.6

Alb

an

ia:

::

::

::

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

Ko

so

vo

:

::

::

::

::

FR

EIG

HT T

RA

NSP

OR

T

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 102

103

Tab

le 1

0.4

: B

rea

kd

ow

n o

f fr

eig

ht

tra

nsp

ort

, 2004

(1)

Pipelin

e tra

nsp

ort

incl

udes

only

oil

pip

elin

es;

air

tra

nsp

ort

, 2

00

3.

(2)

Rail,

exc

ludin

g e

mpty

pri

vate

wagons.

(3)

Air

tra

nsp

ort

, va

lue is

under

0.0

5 m

illio

n tonnes.

(4)

Sea tra

nsp

ort

, 2

00

1.

Rail

(millio

n

ton

ne-k

m)

Ro

ad

(millio

n

ton

ne-k

m)

Inla

nd

wate

rways

(millio

n

ton

ne-k

m)

Pip

elin

e

(millio

n

ton

ne-k

m)

Sea -

inw

ard

an

d

ou

tward

(millio

n

ton

nes)

Air

-

load

ed

an

d

un

load

ed

(millio

n

ton

nes)

EU

-25

::

::

::

BG

(1)

5 2

11

4 6

12

697

275

23

0H

R (

2)

2 4

93

8 8

19

199

1 8

41

20

10

RO

(3)

11 2

38

14 6

51

2 1

76

610

41

:TR

(4)

9 4

17

156 8

53

:2 3

17

128

1A

L32

::

::

:B

A:

::

::

:M

K426

4 0

04

::

:0

CS

3 2

58

342

1 1

15

1 2

38

:0

XK

::

::

::

The m

ost

im

port

ant

drive

r of

freig

ht

transp

ort

ation is

eco

nom

ic gro

wth

, as

measu

red b

y G

DP.

Fre

ight

transp

ort

inte

nsi

ty i

s m

easu

red b

y ta

kin

g t

he v

olu

me

of

tota

l in

land f

reig

ht

transp

ort

(in

tonne-k

ilom

etr

es)

and e

xpre

ssin

g t

his

rela

tive

to G

DP (

in t

his

public

ation in c

onst

ant

1995 p

rice

s).

Road

and r

ail w

ere

usu

ally

the

most

import

ant

tran

sport

modes

for

frei

ght

tran

sport

in t

he

Can

did

ate

countr

ies

and t

he

Wes

tern

Bal

kans.

Bulg

aria

, Rom

ania

, an

d S

erbia

and M

onte

neg

ro r

eport

ed a

rel

ativ

ely

hig

h p

ropen

sity

to u

se r

ail fr

eight

tran

sport

.

Indee

d,

in B

ulg

aria

and S

erbia

and M

onte

neg

ro t

he

num

ber

of

tonne-

kilo

met

res

tran

sport

ed b

y ra

il ex

ceed

ed t

hat

for

road

fre

ight

tran

sport

. O

n t

he

oth

er h

and,

in

the

form

er Y

ugosl

av R

epublic

of

Mac

edonia

and in T

urk

ey t

he

use

of

road

fre

ight

tran

sport

was

9.4

tim

es a

nd 1

6.7

tim

es g

reat

er t

han

the

use

of

rail.

Road

fre

ight

tran

sport

gre

w b

y m

ore

than

10 %

per

annum

bet

wee

n 2

000 a

nd

2004 in B

ulg

aria

, C

roat

ia a

nd R

om

ania

, as

wel

l as

in t

he

form

er Y

ugosl

av R

epublic

of

Mac

edonia

, w

hile

Ser

bia

and M

onte

neg

ro w

as t

he

only

countr

y w

her

e ra

il fr

eight

expan

ded

by

upw

ards

of

10 %

per

annum

. In

contr

ast,

Bulg

aria

, Tu

rkey

and t

he

form

er Y

ugosl

av R

epublic

of

Mac

edonia

all

report

ed t

hat

thei

r le

vels

of

rail

frei

ght

tran

sport

dec

lined

, in

abso

lute

ter

ms,

ove

r th

e per

iod c

onsi

der

ed.

Tra

nsp

ort

CH10.QXD 27/10/05 10:56 Page 103

(1)

20

00

to 2

00

4,

num

ber

of

main

tele

phone lin

es

is p

rese

nte

d a

s th

e tota

l su

m o

f te

lephone lin

es

(analo

gue), ISD

N lin

es

and F

GSM

lin

es.

(2)

19

95

to 1

99

8,

num

ber

of

tele

phone s

ubsc

ribers

.

11

104

Tab

le 1

1.1

: Fix

ed

an

d c

ellu

lar

tele

ph

on

y (

thou

san

ds)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:205 0

49

212 6

75

219 6

17

::

236 0

59

235 5

27

::

Bu

lgari

a2 5

63

2 6

48

2 6

81

2 7

58

2 8

33

2 8

82

2 9

22

2 9

06

2 8

56

2 7

70

Cro

ati

a (

1)

1 2

54

1 3

89

1 4

88

1 5

58

1 6

41

1 6

92

1 7

16

1 6

85

1 6

84

1 6

76

Ro

man

ia2 9

34

3 1

20

3 3

74

3 5

70

3 7

05

3 8

13

4 0

29

4 2

07

4 3

30

4 3

90

Tu

rkey

13 3

32

14 2

87

15 7

44

16 9

60

18 0

54

18 3

95

18 9

05

18 9

15

18 9

17

19 1

25

Alb

an

ia:

64

87

116

::

198

220

255

:

Bo

snia

an

d H

erz

eg

ovin

a:

272

303

333

::

847

903

938

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(2)

348

368

408

457

784

806

792

793

723

733

Serb

ia a

nd

Mo

nte

neg

ro2 1

33

2 2

14

2 3

39

2 3

26

2 1

67

2 3

67

2 8

02

2 4

86

2 5

97

:

Ko

so

vo

:

::

::

::

::

:

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EU

-25

:34 7

68

55 5

28

94 8

31

::

309 9

48

337 2

18

368 5

05

:

Bu

lgari

a16

40

70

131

328

738

1 6

15

2 6

00

3 5

34

4 8

42

Cro

ati

a31

60

120

177

361

1 1

12

1 7

31

2 3

40

2 5

37

2 8

42

Ro

man

ia:

:202

552

1 1

26

2 0

19

4 5

95

5 0

99

7 0

65

10 2

15

Tu

rkey

436

806

1 6

10

3 5

06

7 6

85

15 0

64

19 5

73

23 3

74

27 9

25

34 7

36

Alb

an

ia:

23

6:

:393

851

1 1

00

:

Bo

snia

an

d H

erz

eg

ovin

a:

29

25

::

445

749

1 0

50

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:1

12

30

48

100

221

366

608

998

Serb

ia a

nd

Mo

nte

neg

ro:

15

87

240

::

1 9

98

2 8

98

3 4

08

:

Ko

so

vo

:

::

::

::

::

:

Nu

mb

er

of

main

tele

ph

on

e lin

es

Nu

mb

er

of

sub

scri

pti

on

s to

cellu

lar

mo

bile t

ele

ph

on

e s

erv

ices

FIX

ED

AN

D C

ELLU

LA

R T

ELEP

HO

NY

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

CH11.QXD 27/10/05 10:56 Page 104

105

Fig

ure

11.1

: A

vera

ge n

um

ber

of

sub

scri

pti

on

s to

cellu

lar

mob

ile t

ele

ph

on

yp

er

100 i

nh

ab

ita

nt

(un

its)

(1)

(1)

Koso

vo,

not ava

ilable

. (2

) 2

00

0,

not ava

ilable

; 2

00

4,

est

imate

. (3

) 2

00

1 inst

ead o

f 2

00

0;

20

03

inst

ead o

f 2

00

4.

0

25

50

75

100

EU

-25

(2)

BG

HR

RO

TR

AL

(3)

BA

(3)

MK

CS (3)

XK

2000

2004

In t

he E

U-2

5 t

here

were

236 m

illio

n m

ain

tele

phone li

nes

in 2

002. The c

um

ula

ted

sum

of

lines

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

(exc

ludin

g

Kosovo)

was

32 m

illio

n lin

es,

equiv

ale

nt

to 1

3.6

% o

f th

e E

U-2

5 t

ota

l.

There

w

ere

369 m

illio

n m

obile

su

bsc

ribers

in

th

e EU

-25 in

2003,

while

th

e

cum

ula

ted s

um

for

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

(again

exc

ludin

g K

osovo

was

47 m

illio

n s

ubsc

ribers

, or

12.8

% o

f th

e E

U-2

5 t

ota

l.

While

som

e m

ark

ets

for

mobile

tele

phony

in t

he M

em

ber

Sta

tes

appear

to h

ave

reach

ed s

atu

ration (

with p

enetr

ation r

ate

s in

exc

ess

of

100 %

; fo

r exa

mple

as

a

resu

lt o

f su

bsc

ribers

havi

ng m

ultip

le s

ubsc

riptions)

, ra

pid

gro

wth

was

still

bein

g

report

ed i

n m

ost

of

the C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

in 2

003

and/o

r 2004.

The

hig

hest

ta

ke-u

p

of

mobile

su

bsc

riptions

was

reco

rded

in

Bulg

aria a

nd C

roatia, w

here

there

was

an a

vera

ge o

f m

ore

than 0

.6 s

ubsc

riptions

per

inhabitant.

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

CH11.QXD 27/10/05 10:56 Page 105

(1)

Num

ber

of

house

hold

s th

at had a

com

pute

r, 2

00

4.

11

106

Tab

le 1

1.2

: N

um

ber

of

pers

on

al

com

pu

ters

, 2002 (

thou

san

ds)

EU

-25

139 7

56

Bu

lgari

a405

Cro

ati

a760

Ro

man

ia1 8

00

Tu

rkey

3 0

00

Alb

an

ia36

Bo

snia

an

d H

erz

eg

ovin

a:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(1)

113

Serb

ia a

nd

Mo

nte

neg

ro290

Ko

so

vo

:

(1)

Bosn

ia a

nd H

erz

egovi

na a

nd K

oso

vo,

not ava

ilable

.(2

) Est

imate

.(3

) Base

d u

pon the n

um

ber

of

house

hold

s th

at had a

com

pute

r, 2

00

4.

Fig

ure

11.2

: A

vera

ge n

um

ber

of

pers

on

al

com

pu

ters

per

100 i

nh

ab

ita

nts

,2002 (

un

its)

(1)

0

10

20

30

40

EU

-25

(2)

BG

HR

RO

TR

AL

BA

MK

(3)

CS

XK

PC

sA

ND

TH

E I

NTER

NET

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

There

was

genera

lly a

more

gra

dual

pro

gre

ssio

n t

o t

he e

volu

tion o

f PC

and

Inte

rnet

use

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans.

This

diffe

rence

CH11.QXD 27/10/05 10:56 Page 106

may,

in p

art

, be e

xpla

ined b

y th

e h

igher

ave

rage c

ost

of

a P

C.

107

Fig

ure

11.3

: U

se o

f th

e I

nte

rnet

am

on

g i

nd

ivid

ua

ls,

2004 (

%)

(1)

(1)

Cro

atia

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

,Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

.(2

) Pe

rcenta

ge w

ho a

ccess

the Inte

rnet at le

ast

once

a w

eek,

not ava

ilable

. (3

) Sourc

e,

Livi

ng S

tandard

s M

easu

rem

ent Stu

dy

20

03

panel su

rvey;

pro

port

ion o

fpopula

tion a

ged 1

5 y

ears

and a

bove

; perc

enta

ge w

ith Inte

rnet acc

ess

, not ava

ilable

.

0

10

20

30

40

50

EU

-25

BG

HR

RO

(2)

TR

AL

(3)

BA

MK

CS

XK

Perc

enta

ge o

f house

hold

s w

ho h

ave

Inte

rnet

acc

ess

at

hom

e

Perc

enta

ge o

f in

div

iduals a

ged 1

6 t

o 7

4 w

ho a

ccess

the In

tern

et

regula

rly

The

pro

port

ion

of

house

hold

s w

ho

have

In

tern

et

acc

ess

at

hom

e

incl

udes

info

rmation o

n a

ll fo

rms

of

Inte

rnet

use

incl

udin

g e

-mail,

web b

row

sing,

hom

e

bankin

g

and

e-c

om

merc

e.

'Regula

r use

' of

the

Inte

rnet

is

defined

as

the

pro

port

ion o

f in

div

iduals

who a

ccess

the I

nte

rnet,

on a

vera

ge,

at

least

once

a

week.

Regula

r use

of

the I

nte

rnet

was

genera

lly m

uch

low

er

in t

he C

andid

ate

countr

ies

and t

he W

est

ern

Balk

ans

than it

is in t

he E

U-2

5.

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

CH11.QXD 27/10/05 10:56 Page 107

(1)

Gro

ss d

ata

.(2

) 2

00

1=

10

0.

11

108

Tab

le 1

1.3

: Tu

rnover

ind

ices

(2000=

100)

2000

2001

2002

2003

2004

EU

-25 (

1)

100.0

111.2

116.6

122.3

128.9

Bu

lgari

a100.0

130.8

169.3

134.4

153.6

Cro

ati

a:

::

::

Ro

man

ia:

::

::

Tu

rkey

::

::

:

Alb

an

ia (

2)

:100.0

96.9

111.7

118.5

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

Ko

so

vo

:

::

::

2000

2001

2002

2003

2004

EU

-25 (

1)

100.0

110.6

110.9

115.4

118.9

Bu

lgari

a (

1)

100.0

122.6

141.4

157.4

187.2

Cro

ati

a:

::

::

Ro

man

ia:

::

::

Tu

rkey

::

::

:

Alb

an

ia (

2)

:100.0

78.6

43.0

43.4

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

Ko

so

vo

:

::

::

Co

mm

un

icati

on

s

Co

mp

ute

r se

rvic

es

EN

TER

PR

ISES A

ND

TH

E I

NFO

RM

ATIO

N S

OC

IETY

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

CH11.QXD 27/10/05 10:56 Page 108

109

Tab

le 1

1.4

: U

se o

f th

e I

nte

rnet

am

on

g e

nte

rpri

ses,

2004 (

%)

(1)

Ente

rpri

ses

with

10

or

more

pers

ons

em

plo

yed;

NA

CE S

ect

ions

D,

G,

H,

I or

K f

or

Inte

rnet acc

ess

and turn

ove

r fr

om

e-c

om

merc

e;

NA

CE S

ect

ions

D,

F, G

, H

, I and K

to O

for

inte

ract

ion w

ith p

ublic

auth

ori

ties

(2)

20

03

.

Pro

po

rtio

n o

f en

terp

rise

s

havin

g a

ccess

to

th

e

Inte

rnet

Pro

po

rtio

n o

f en

terp

rise

s

usi

ng

th

e In

tern

et

to

inte

ract

wit

h p

ub

lic

au

tho

riti

es

Pro

po

rtio

n o

f en

terp

rise

s'

turn

over

fro

m In

tern

et

e-c

om

merc

e

EU

-25 (

1)

89.0

52.0

2.1

BG

61.0

38.0

1.2

HR

::

:R

O (

2)

51.4

31.0

1.3

TR

::

:A

L:

::

BA

::

:M

K:

::

CS

::

:X

K:

::

There

is

a

limited

set

of

info

rmation

ava

ilable

fo

r te

chnolo

gy

use

w

ithin

ente

rprise

s. W

hile

alm

ost

nin

e o

ut

of

ten e

nte

rprise

s in

the E

U-2

5 h

ad a

ccess

to

the In

tern

et

in 2

004, th

is p

roport

ion w

as

61 %

in B

ulg

aria a

nd 5

1 %

in R

om

ania

(in 2

003).

Just

ove

r half o

f th

e e

nte

rprise

s in

the E

U-2

5 u

sed t

he I

nte

rnet

to

inte

ract

with p

ublic

auth

orities,

while

the c

orr

esp

ondin

g s

hare

s fo

r Bulg

aria a

nd

Rom

ania

(a

gain

in

2003)

were

appro

xim

ate

ly one in

th

ree ente

rprise

s. The

pro

port

ion o

f ente

rprise

s' t

urn

ove

r fr

om

Inte

rnet

e-c

om

merc

e w

as

2.1

% in t

he

EU

-25,

whic

h w

as

alm

ost

double

th

e pro

port

ions

reco

rded in

Bulg

aria and

Rom

ania

(sl

ightly

ove

r 1 %

).

Com

mun

ica

tion

s a

nd

in

form

ati

on

soci

ety

CH11.QXD 27/10/05 10:56 Page 109

(1)

Trade w

ith p

art

ners

outs

ide o

f th

e E

U-2

5 (

ext

ra-E

U tra

de).

12

110

Tab

le 1

2.1

: Exte

rna

l tr

ad

e o

f g

ood

s (E

UR

million

)

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

689 4

34

857 7

82

826 3

72

903 6

01

882 8

97

968 2

95

Bu

lgari

a3 7

34

5 2

53

5 2

77

6 0

63

6 6

68

7 9

85

Cro

ati

a4 0

49

4 8

22

5 2

14

5 1

88

5 4

39

6 3

12

Ro

man

ia7 9

92

11 2

73

11 7

59

14 6

75

15 6

14

18 9

35

Tu

rkey

24 9

64

30 1

82

32 6

77

38 1

37

41 5

16

50 5

11

Alb

an

ia:

86

93

90

64

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:908

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:1 4

36

1 2

91

1 1

78

879

:

Serb

ia a

nd

Mo

nte

neg

ro1 4

05

1 8

53

2 1

25

2 4

06

::

Ko

so

vo

:

:11

28

36

57

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

746 6

22

995 9

80

896 1

69

942 5

22

940 7

74

1 0

29 5

79

Bu

lgari

a5 1

40

7 0

85

7 5

59

8 4

11

9 6

11

11 6

19

Cro

ati

a7 3

51

8 5

97

10 2

45

11 3

27

12 5

10

13 2

13

Ro

man

ia9 7

74

14 2

35

16 1

44

18 8

81

21 2

01

26 2

81

Tu

rkey

38 3

51

59 4

44

41 9

24

54 4

78

60 1

36

78 2

31

Alb

an

ia:

1 1

91

1 4

89

1 5

87

1 2

07

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:2 9

28

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:2 2

71

1 8

87

2 1

05

1 4

67

:

Serb

ia a

nd

Mo

nte

neg

ro3 0

92

4 0

17

5 4

01

6 6

84

::

Ko

so

vo

:

:685

855

973

1 0

63

To

tal im

po

rts

To

tal exp

ort

s

TO

TA

L E

XTER

NA

L T

RA

DE

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 110

111

Fig

ure

12.1

: Exte

rna

l tr

ad

e o

f g

ood

s, 2

004 (

EU

R m

illion

)

(1)

Trade w

ith p

art

ners

outs

ide o

f th

e E

U-2

5 (

ext

ra-E

U tra

de).

(2)

20

03

.(3

) 2

00

2.

0

20 0

00

40 0

00

60 0

00

80 0

00

EU

-25

(1)

BG

HR

RO

TR

AL

(2)

BA

(2)

MK

(2)

CS (3)

XK

Exp

ort

sIm

port

s

1 0

29 5

79

968 2

95

Ext

ern

al t

rade f

igure

s th

at

are

pre

sente

d in

this

sect

ion c

ove

r tr

ade in

goods

(and

not

serv

ices)

. N

ote

that

all

of

the E

U-2

5 d

ata

in t

his

sect

ion r

efe

rs t

o e

xtra

-EU

trade,

in o

ther

word

s, t

rade w

ith n

on-C

om

munity

countr

ies.

As

such

, th

e d

ata

does

not

cove

r th

e c

onsi

dera

ble

am

ount

of

fore

ign t

rade t

hat

takes

pla

ce w

ithin

the E

U-2

5 b

etw

een t

he M

em

ber

Sta

tes,

but

inst

ead p

rese

nts

info

rmation o

n t

he

tradin

g a

ctiv

itie

s of

the E

U-2

5 t

radin

g b

lock

with t

he r

est

of

the w

orld.

The E

U-2

5 r

an a

tra

de d

efici

t fo

r goods

that

was

valu

ed a

t EU

R 6

1 b

illio

n in

2004.

Exp

ress

ed i

n a

diffe

rent

way,

exp

ort

s fr

om

the E

U-2

5 c

ove

red 9

4 %

of

tota

l

import

s; t

his

indic

ato

r is

oft

en r

efe

rred t

o a

s th

e c

ove

r ra

tio.

The i

nfo

rmation

ava

ilable

for

the C

andid

ate

countr

ies

show

s th

ey

all

reco

rded t

rade d

efici

ts i

n

2004, w

hile

in t

he W

est

ern

Balk

ans

the s

ituation w

as

the s

am

e (in

2003 o

r 2002,

subje

ct t

o d

ata

ava

ilabili

ty).

Cove

r ra

tios

in t

he C

andid

ate

countr

ies

and t

he

West

ern

Balk

ans

ranged f

rom

just

ove

r 5 %

in A

lbania

(w

here

im

port

s w

ere

valu

ed 1

9 t

imes

hig

her

than e

xport

s),

to 7

2 %

in R

om

ania

.

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 111

12

112

Tab

le 1

2.2

: Exte

rna

l tr

ad

e o

f g

ood

s w

ith

th

e E

U-2

5

1999

2000

2001

2002

2003

2004

Bu

lgari

a55.8

54.4

58.2

59.3

60.1

58.3

Cro

ati

a66.8

69.3

67.6

::

:

Ro

man

ia71.3

69.4

73.2

72.6

73.6

72.8

Tu

rkey

56.1

54.3

53.5

53.9

55.1

54.7

Alb

an

ia:

79.3

71.4

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:53.1

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:46.9

51.4

::

:

Serb

ia a

nd

Mo

nte

neg

ro44.5

48.1

51.3

51.8

::

Ko

so

vo

:

::

:40.7

28.7

1999

2000

2001

2002

2003

2004

Bu

lgari

a53.6

49.4

55.2

55.6

55.3

54.1

Cro

ati

a71.7

70.1

71.7

::

:

Ro

man

ia68.5

64.6

66.4

67.4

67.2

64.9

Tu

rkey

53.7

50.3

45.6

47.5

48.2

46.7

Alb

an

ia:

78.3

78.1

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:57.6

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:48.7

52.5

::

:

Serb

ia a

nd

Mo

nte

neg

ro50.8

49.4

51.9

55.2

::

Ko

so

vo

:

::

:36.1

35.6

Exp

ort

s to

th

e E

U-2

5 (

% o

f to

tal exp

ort

s)

Imp

ort

s fr

om

th

e E

U-2

5 (

% o

f to

tal im

po

rts)

EX

TER

NA

L T

RA

DE W

ITH

TH

E E

U

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 112

113

The E

U-2

5 w

as

the m

ain

tra

din

g p

art

ner

of

each

Candid

ate

and W

est

ern

Balk

an

countr

y, a

ccounting f

or

the a

bso

lute

majo

rity

of

import

s and e

xport

s. T

he o

nly

exc

eptions

to th

is ru

le (s

ubje

ct to

data

ava

ilabili

ty)

were

K

osovo

(28.7

% of

exp

ort

s to

the E

U-2

5 a

nd 3

5.6

% o

f im

port

s origin

ating f

rom

the E

U-2

5)

and

Turk

ish i

mport

s origin

ating f

rom

the E

U-2

5 (

46.7

% o

f to

tal

Turk

ish i

mport

s in

2004).

Each

of

the C

andid

ate

and W

est

ern

Balk

an c

ountr

ies

ran a

tra

de d

efici

t w

ith t

he

EU

-25.

The s

am

e w

as

true w

ith r

esp

ect

to t

heir e

xtern

al

trade w

ith t

he N

ew

Independent

Sta

tes,

Chin

a a

nd J

apan,

while

Bulg

aria,

Turk

ey

and t

he f

orm

er

Yugosl

av

Republic

of

Mace

donia

were

the o

nly

countr

ies

to r

eport

a t

rade s

urp

lus

with t

he U

nited S

tate

s.

Exte

rna

l tr

ad

e

Tab

le 1

2.3

: Tr

ad

e b

ala

nce

for

good

s w

ith

th

e E

U-2

5 (

EU

R m

illion

)

1999

2000

2001

2002

2003

2004

Bu

lgari

a-6

69

-641

-1 0

96

-1 0

85

-1 3

08

-1 6

29

Cro

ati

a-2

566

-2 6

85

-3 8

18

::

:

Ro

man

ia-9

95

-1 3

76

-2 1

04

-2 0

72

-2 7

52

-3 2

67

Tu

rkey

-6 5

77

-13 5

04

-1 6

23

-5 2

95

-6 1

03

-8 9

23

Alb

an

ia:

-865

-1 0

96

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:-1

203

:

Th

e f

orm

er

Yu

go

slav

:-4

32

-328

::

:

Rep

ub

lic

of

Mace

do

nia

Serb

ia a

nd

Mo

nte

neg

ro-9

46

-1 0

96

-1 7

14

-2 4

44

::

Ko

so

vo

:

::

:-3

37

-362

CH12.QXD 27/10/05 10:56 Page 113

(1)

Trade w

ith p

art

ners

outs

ide o

f th

e E

U-2

5 (

ext

ra-E

U tra

de).

12

114

Tab

le 1

2.4

: Tr

ad

e b

ala

nce

of

good

s

1999

2000

2001

2002

2003

2004

EU

-25 (

1)

-57 1

88

-138 1

98

-69 7

97

-38 9

21

-57 8

77

-61 2

84

Bu

lgari

a-1

406

-1 8

32

-2 2

83

-2 3

48

-2 9

42

-3 6

35

Cro

ati

a-3

302

-3 7

76

-5 0

31

-6 1

39

-7 0

71

-6 9

01

Ro

man

ia-1

781

-2 9

62

-4 3

86

-4 2

06

-5 5

88

-7 3

46

Tu

rkey

-13 3

87

-29 2

63

-9 2

47

-16 3

41

-18 6

20

-27 7

20

Alb

an

ia:

-1 1

05

-1 3

95

-1 4

97

-1 1

44

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:-2

019

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:-8

35

-596

-927

-588

:

Serb

ia a

nd

Mo

nte

neg

ro-1

687

-2 1

65

-3 2

76

-4 2

78

::

Ko

so

vo

:

:-6

74

-827

-937

-1 0

06

1999

2000

2001

2002

2003

2004

Bu

lgari

a47.6

35.0

48.0

46.2

44.5

44.8

Cro

ati

a77.7

71.1

75.9

::

:

Ro

man

ia55.9

46.4

48.0

49.3

49.3

44.5

Tu

rkey

49.1

46.1

17.6

32.4

32.8

32.2

Alb

an

ia:

78.3

78.6

::

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

:59.6

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

:51.7

54.9

::

:

Serb

ia a

nd

Mo

nte

neg

ro56.1

50.6

52.3

57.1

::

Ko

so

vo

:

::

:35.9

36.0

Tra

de b

ala

nce

(EU

R m

illio

n)

Tra

de b

ala

nce

wit

h t

he E

U-2

5 (

% o

f to

tal tr

ad

e b

ala

nce

)

TR

AD

E B

ALA

NC

E

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 114

115

Indic

ato

rs

rela

ting

to

the

bre

akdow

n

of

ext

ern

al

trade

statist

ics

show

th

e

pro

port

ion o

f exp

ort

s and im

port

s acc

ord

ing t

o t

he S

ITC

(st

andard

inte

rnational

trade c

lass

ific

ation)

- se

e t

he n

ext

double

page s

pre

ad (

pages

116 a

nd 1

17).

The

class

ific

ation m

ay

be s

um

marise

d a

s fo

llow

s:

SIT

C 0

: fo

od &

liv

e a

nim

als

;

SIT

C 1

: beve

rages

& t

obacc

o;

SIT

C 2

: cr

ude m

ate

rials

, in

edib

le,

exc

ept

fuels

;

SIT

C 3

: m

inera

l fu

els

, lu

brica

nts

& r

ela

ted m

ate

rials

;

SIT

C 4

: anim

al &

vegeta

ble

oils

, fa

ts &

waxe

s;

SIT

C 5

: ch

em

icals

& r

ela

ted p

roduct

s;

SIT

C 6

: m

anufa

cture

d g

oods

class

ifie

d c

hie

fly

by

mate

rial;

SIT

C 7

: m

ach

inery

& t

ransp

ort

equip

ment;

SIT

C 8

: m

isce

llaneous

manufa

cture

d a

rtic

les;

SIT

C 9

: co

mm

oditie

s &

tra

nsa

ctio

ns

not

class

ifie

d e

lsew

here

.

Exte

rna

l tr

ad

e

Tab

le 1

2.5

: V

alu

e o

f tr

ad

e b

ala

nce

wit

h v

ari

ou

s p

art

ners

, 2004 (

EU

R m

illion

)

(1)

20

01

for

EU

-25

.(2

) 2

00

1 f

or

EU

-25

; 2

00

3 f

or

oth

er

part

ners

.(3

) 2

00

3.

(4)

20

02

.

EU

-25

New

Ind

ep

en

den

t

Sta

tes

Un

ited

Sta

tes

Ch

ina

Jap

an

EU

-25

~-3

4 3

78

76 5

07

-78 8

68

-30 5

38

BG

-1 6

29

-1 8

82

102

-347

-140

HR

(1)

-3 8

18

-923

-119

-502

-187

RO

-3 2

67

-2 9

42

-225

-694

-315

TR

-8 9

23

-7 1

59

131

-3 2

69

-2 0

01

AL (

2)

-1 0

96

-65

-10

-38

-5B

A (

3)

-1 2

03

-51

-36

-53

:M

K (

2)

-328

-167

2-1

9-1

2C

S (

4)

-1 7

14

-749

-123

-142

-61

XK

-362

::

::

CH12.QXD 27/10/05 10:56 Page 115

(1)

Exp

ort

s to

part

ners

outs

ide o

f th

e E

U-2

5 (

ext

ra-E

U e

xport

s).

(2)

20

00

.(3

) 2

00

3.

(4)

20

02

.12

116

Tab

le 1

2.6

: B

rea

kd

ow

n o

f exp

ort

s of

good

s (%

of

tota

l exp

ort

s)

SIT

C 0

SIT

C 1

SIT

C 2

SIT

C 3

SIT

C 4

SIT

C 5

SIT

C 6

SIT

C 7

SIT

C 8

SIT

C 9

EU

-25 (

1)

4.3

1.8

1.7

2.2

0.3

14.2

14.4

46.0

12.3

2.6

Bu

lgari

a8.2

4.8

6.9

7.4

0.6

8.9

23.1

11.2

21.7

7.1

Cro

ati

a6.7

2.4

5.6

7.9

0.2

11.9

13.3

29.4

22.4

0.1

Ro

man

ia3.4

0.3

8.5

4.9

0.6

4.9

20.3

16.8

39.1

1.0

Tu

rkey

12.0

2.2

2.6

1.3

1.0

3.6

28.5

19.0

28.6

1.2

Alb

an

ia (

2)

6.7

10.3

28.3

6.1

0.1

2.1

27.8

3.5

15.1

:

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(2)

5.0

9.9

3.7

4.8

0.2

4.5

36.7

6.3

28.6

0.3

Serb

ia a

nd

Mo

nte

neg

ro19.4

1.5

5.5

2.4

0.6

9.7

31.1

12.3

14.8

2.9

Ko

so

vo

:

::

::

::

::

:

SIT

C 0

SIT

C 1

SIT

C 2

SIT

C 3

SIT

C 4

SIT

C 5

SIT

C 6

SIT

C 7

SIT

C 8

SIT

C 9

EU

-25 (

1)

3.5

1.5

1.8

3.3

0.3

15.8

14.3

45.2

11.9

2.4

Bu

lgari

a6.8

2.3

5.9

8.0

0.3

6.6

27.4

12.4

25.6

4.8

Cro

ati

a6.1

2.3

5.6

11.1

0.2

9.3

14.8

32.5

18.0

0.0

Ro

man

ia2.1

0.2

6.0

6.8

0.3

5.5

21.2

23.7

33.8

0.5

Tu

rkey

7.9

0.9

1.8

2.2

0.3

3.7

29.5

29.2

23.4

1.1

Alb

an

ia (

3)

4.8

3.8

36.9

5.3

0.3

2.6

25.5

8.6

11.9

0.2

Bo

snia

an

d H

erz

eg

ovin

a (

3)

3.5

1.4

16.6

6.1

0.0

2.3

28.8

17.5

23.9

0.0

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(3)

6.5

8.7

2.9

5.2

0.1

5.2

30.2

5.8

35.2

0.2

Serb

ia a

nd

Mo

nte

neg

ro (

4)

21.2

0.9

5.2

3.4

0.8

7.4

31.3

11.2

16.2

2.3

Ko

so

vo

:

::

::

::

::

:

1999

2004

BR

EA

KD

OW

N O

F E

XP

OR

TS

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 116

117

The l

arg

est

pro

port

ion o

f exp

ort

s m

ade b

y th

e C

andid

ate

and W

est

ern

Balk

an

countr

ies

was

oft

en

found

to

be

manufa

cture

d

goods

class

ifie

d

chie

fly

by

mate

rial

(such

as

iron

and

steel,

text

iles,

w

ood,

paper)

, or

alt

ern

ati

vely

mis

cella

neous

manufa

cture

d a

rtic

les

(such

as

cloth

ing,

footw

ear

or

furn

iture

).

Betw

een 1

999 a

nd 2

004 t

he p

roport

ion o

f exp

ort

s dest

ined f

or

the E

U-2

5 r

ose

som

ew

hat

in B

ulg

aria a

nd R

om

ania

. A

s a r

esu

lt,

by

2004,

som

e 7

2.8

% o

f to

tal

exp

ort

s th

at

left

Rom

ania

were

dest

ined f

or

the E

U-2

5,

while

the c

orr

esp

ondin

g

figure

in B

ulg

aria w

as

58.3

%. O

n t

he o

ther

hand, th

e p

roport

ion o

f exp

ort

s fr

om

Turk

ey

to t

he E

U-2

5 d

ecl

ined f

rom

56.1

% t

o 5

4.7

% o

ver

the s

am

e p

eriod.

Within

th

e

West

ern

Balk

ans,

th

ere

w

as

a

more

su

bst

antial

incr

ease

in

th

e

pro

port

ion o

f exp

ort

s fr

om

Serb

ia a

nd M

onte

negro

to t

he E

U-2

5,

whic

h r

ose

from

44.5

% in 1

999 t

o 5

1.8

% b

y 2002.

Exte

rna

l tr

ad

e

Fig

ure

12.2

: Exp

ort

s of

good

s d

est

ined

for

the E

U-2

5 (

% o

f to

tal

exp

ort

s)

(1)

20

04

, not ava

ilable

. (2

) 2

00

0 inst

ead o

f 1

99

9;

20

04

, not ava

ilable

. (3

) 1

99

9,

not ava

ilable

; 2

00

3 inst

ead o

f 2

00

4.

(4)

20

02

inst

ead o

f 2

00

4.

(5)

19

99

, not ava

ilable

.

0

25

50

75

100

BG

HR (1)

RO

TR

AL

(2)

BA

(3)

MK

(2)

CS (4)

XK

(5)

1999

2004

CH12.QXD 27/10/05 10:56 Page 117

(1)

Import

s fr

om

part

ners

outs

ide o

f th

e E

U-2

5 (

ext

ra-E

U im

port

s).

(2)

20

00

.(3

) 2

00

3.

(4)

20

02

.12

118

Tab

le 1

2.7

: B

rea

kd

ow

n o

f im

port

s of

good

s (%

of

tota

l im

port

s)

SIT

C 0

SIT

C 1

SIT

C 2

SIT

C 3

SIT

C 4

SIT

C 5

SIT

C 6

SIT

C 7

SIT

C 8

SIT

C 9

EU

-25 (

1)

6.0

0.7

4.8

11.2

0.4

7.9

11.6

38.6

15.9

2.9

Bu

lgari

a4.5

0.9

5.3

3.5

0.3

10.1

18.1

29.0

8.4

19.8

Cro

ati

a7.2

0.8

2.2

11.0

0.3

12.0

16.0

35.1

11.8

3.5

Ro

man

ia5.8

1.3

3.7

10.1

0.2

11.2

29.0

26.3

11.5

0.9

Tu

rkey

2.6

0.7

6.2

10.9

1.1

15.4

16.1

37.7

6.6

2.6

Alb

an

ia (

2)

16.1

3.7

1.4

9.1

1.9

6.9

24.0

21.6

15.2

0.2

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(2)

10.1

1.1

2.6

14.0

0.7

9.0

12.9

19.5

4.9

25.3

Serb

ia a

nd

Mo

nte

neg

ro8.5

1.2

7.0

17.8

0.2

15.7

20.5

21.7

6.5

0.8

Ko

so

vo

:

::

::

::

::

:

SIT

C 0

SIT

C 1

SIT

C 2

SIT

C 3

SIT

C 4

SIT

C 5

SIT

C 6

SIT

C 7

SIT

C 8

SIT

C 9

EU

-25 (

1)

5.1

0.6

4.3

17.6

0.4

8.5

11.4

34.3

15.0

2.9

Bu

lgari

a4.4

0.5

6.0

3.9

0.3

10.4

21.6

29.5

9.0

14.3

Cro

ati

a7.2

0.7

2.1

12.0

0.3

11.2

19.7

34.8

11.9

0.1

Ro

man

ia4.9

1.0

3.0

11.8

0.2

10.3

26.2

32.5

9.7

0.2

Tu

rkey

1.8

0.3

7.1

11.4

0.6

14.4

16.9

34.6

5.5

7.3

Alb

an

ia (

3)

14.3

3.9

1.4

8.9

1.4

7.4

25.0

21.8

15.8

0.0

Bo

snia

an

d H

erz

eg

ovin

a (

3)

15.0

4.2

2.5

7.7

1.1

11.3

21.0

25.3

11.9

:

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

(3)

11.2

1.0

2.6

14.6

0.9

11.0

14.2

18.5

5.5

20.6

Serb

ia a

nd

Mo

nte

neg

ro (

4)

8.3

1.8

3.2

16.9

0.3

13.5

16.0

25.8

8.8

5.5

Ko

so

vo

:

::

::

::

::

:

1999

2004

BR

EA

KD

OW

N O

F I

MP

OR

TS

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 118

119

As

regard

s an a

naly

sis

of

import

s, t

he C

andid

ate

and W

est

ern

Balk

an c

ountr

ies

tended t

o r

eco

rd t

heir h

ighest

pro

port

ion o

f im

port

s fo

r m

anufa

cture

d g

oods

class

ifie

d c

hie

fly

by

mate

rial

or

for

mach

inery

and t

ransp

ort

equip

ment

(whic

h

incl

udes

pro

duct

s su

ch as

mach

ines,

co

mpute

r and off

ice equip

ment,

m

oto

r

vehic

les

and o

ther

transp

ort

equip

ment)

.

The p

roport

ion o

f to

tal im

port

s of

goods

origin

ating f

rom

the E

U-2

5 w

as

alm

ost

unch

anged i

n B

ulg

aria b

etw

een 1

999 a

nd 2

004.

In R

om

ania

and T

urk

ey

the

pro

port

ion f

ell

by

3.6

and 7

.0 p

erc

enta

ge p

oin

ts r

esp

ect

ively

to 6

4.9

% a

nd

46.7

% o

f to

tal i

mport

s. T

here

was

an in

crease

in t

he s

hare

of

import

s origin

ating

from

the E

U-2

5 i

nto

Serb

ia a

nd M

onte

negro

, w

hic

h r

ose

fro

m 5

0.8

% i

n 1

999

to 5

5.2

% in 2

002.

Exte

rna

l tr

ad

e

Fig

ure

12.3

: Im

port

s of

good

s ori

gin

ati

ng

fro

m t

he E

U-2

5 (

% o

f to

tal im

port

s)

(1)

20

04

, not ava

ilable

. (2

) 2

00

0 inst

ead o

f 1

99

9;

20

04

, not ava

ilable

. (3

) 1

99

9,

not ava

ilable

; 2

00

3 inst

ead o

f 2

00

4.

(4)

20

02

inst

ead o

f 2

00

4.

(5)

19

99

, not ava

ilable

.

0

25

50

75

100

BG

HR (1)

RO

TR

AL

(2)

BA

(3)

MK

(2)

CS (4)

XK

(5)

1999

2004

CH12.QXD 27/10/05 10:56 Page 119

(1)

20

01

for

EU

-25

.(2

) 2

00

1 f

or

EU

-25

; 2

00

3 f

or

oth

er

part

ners

.(3

) 2

00

3.

(4)

20

02

.

120

Tab

le 1

2.8

: V

alu

e o

f exp

ort

s to

va

riou

s p

art

ners

, 2004 (

EU

R m

illion

)

EU

-25

New

Ind

ep

en

den

t

Sta

tes

Un

ited

Sta

tes

Ch

ina

Jap

an

EU

-25

~65 8

25

234 2

07

48 1

32

43 2

15

BG

4 6

54

269

357

30

11

HR

(1)

3 5

23

125

170

637

RO

13 7

77

428

527

158

38

TR

27 6

22

3 1

56

3 9

11

313

153

AL (

2)

66

21

00

BA

(3)

483

18

0:

MK

(2)

664

10

41

13

0C

S (

4)

1 2

46

141

17

20

XK

16

::

::

EX

TER

NA

L T

RA

DE B

Y P

AR

TN

ER

Exte

rna

l tr

ad

e

12

The E

U-2

5 e

xport

ed E

UR 2

34 b

illio

n o

f goods

to t

he U

nited S

tate

s in

2004,

som

e E

UR 6

6 b

illio

n t

o t

he N

ew

Independent

Sta

tes,

EU

R 4

8 b

illio

n t

o C

hin

a

and

EU

R

43

bill

ion

to

Jap

an.

As

already

note

d

the

EU

w

as

the

main

dest

ination f

or

exp

ort

s fr

om

the C

andid

ate

and W

est

ern

Balk

an c

ountr

ies,

with

the U

nited S

tate

s oft

en o

ccupyi

ng t

he p

osi

tion o

f th

e s

eco

nd m

ost

im

port

ant

exp

ort

part

ner.

CH12.QXD 27/10/05 10:56 Page 120

121

Tab

le 1

2.9

: V

alu

e o

f im

port

s fr

om

va

riou

s p

art

ners

, 2004 (

EU

R m

illion

)

(1)

20

01

for

EU

-25

.(2

) 2

00

1 f

or

EU

-25

; 2

00

3 f

or

oth

er

part

ners

.(3

) 2

00

3.

(4)

20

02

.

EU

-25

New

Ind

ep

en

den

t

Sta

tes

Un

ited

Sta

tes

Ch

ina

Jap

an

EU

-25

~100 2

02

157 7

00

127 0

00

73 7

53

BG

6 2

83

2 1

51

255

377

151

HR

(1)

7 3

41

1 0

48

289

508

224

RO

17 0

44

3 3

71

752

852

353

TR

36 5

45

10 3

15

3 7

80

3 5

82

2 1

53

AL (

2)

1 1

63

66

12

38

5B

A (

3)

1 6

85

53

44

54

28

MK

(2)

991

177

39

33

12

CS (

4)

3 6

91

966

152

204

87

XK

378

::

::

The e

merg

ence

of

Chin

a a

s one o

f th

e m

ain

tra

din

g n

ations

was

evi

dent

from

the d

ata

for

import

s, a

s EU

-25 im

port

s fr

om

Chin

a w

ere

valu

ed a

t EU

R 1

27 b

illio

n

in 2004,

som

e EU

R 30 bill

ion le

ss th

an th

ose

fr

om

th

e U

nited Sta

tes,

but

EU

R 53 bill

ion m

ore

th

an th

e va

lue of

import

s fr

om

Ja

pan.

As

regard

s th

e

Candid

ate

and W

est

ern

Balk

an c

ountr

ies,

there

was

oft

en a

hig

her

pro

pensi

ty t

o

import

goods

from

the N

ew

Independent

Sta

tes

or

from

Chin

a t

han f

rom

the

United S

tate

s.

Exte

rna

l tr

ad

e

CH12.QXD 27/10/05 10:56 Page 121

(1)

The d

ata

for

the p

eri

od 1

99

5-1

99

7 a

re c

alc

ula

ted o

n the b

asi

s of

GD

P base

d o

n the E

SA

19

79

meth

odolo

gy;

sta

rtin

g in 1

99

8 a

nd there

after, d

ata

are

calc

ula

ted o

n the b

asi

s of

GD

P base

d o

n the E

SA

19

95

meth

odolo

gy.

13

122

Tab

le 1

3.1

: Exp

en

dit

ure

on

rese

arc

h a

nd

develo

pm

en

t

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

125 7

51

131 1

56

137 7

84

144 7

63

155 5

86

168 2

30

178 7

08

186 0

35

189 5

30

Bu

lgari

a62

41

47

65

69

71

71

81

88

Cro

ati

a:

::

:184

246

238

271

292

Ro

man

ia217

196

181

184

134

149

177

184

204

Tu

rkey

499

654

831

889

1 0

98

1 3

91

1 1

81

1 2

89

:

Alb

an

ia:

::

::

::

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

12

14

12

17

12

10

9

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

Ko

so

vo

:

::

::

::

::

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

1.8

1.8

1.8

1.8

1.9

1.9

1.9

1.9

2.0

Bu

lgari

a0.6

0.5

0.5

0.6

0.6

0.5

0.5

0.5

0.5

Cro

ati

a:

::

:1.0

1.2

1.1

1.1

1.1

Ro

man

ia (

1)

0.8

0.7

0.6

0.5

0.4

0.4

0.4

0.4

0.4

Tu

rkey

0.4

0.5

0.5

0.5

0.6

0.6

0.7

0.7

:

Alb

an

ia:

::

::

::

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

0.4

0.4

0.3

0.4

0.3

0.3

0.2

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

Ko

so

vo

:

::

::

::

::

Gro

ss d

om

est

ic e

xp

en

dit

ure

on

rese

arc

h a

nd

develo

pm

en

t (E

UR

millio

n)

Gro

ss d

om

est

ic e

xp

en

dit

ure

on

rese

arc

h a

nd

develo

pm

en

t re

lati

ve t

o G

DP (

%)

EX

PEN

DIT

UR

E O

N R

ESEA

RC

H A

ND

DEV

ELO

PM

EN

T

R&

D

CH13.QXD 27/10/05 11:18 Page 122

123

Fig

ure

13.1

: G

ross

dom

est

ic e

xp

en

dit

ure

on

rese

arc

h a

nd

develo

pm

en

t p

er

cap

ita

, 2

00

3 (

EU

R)

(1)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

.(2

) Est

imate

.(3

) 2

00

2.

0

25

50

75

100

EU

-25

(2)

BG

HR

RO

TR (3)

AL

BA

MK

CS

XK

The m

ain

measu

re u

sed f

or

rese

arc

h a

nd d

eve

lopm

ent

(R&

D)

statist

ics

is g

ross

dom

est

ic e

xpenditure

on r

ese

arc

h a

nd d

eve

lopm

ent

(GERD

). I

t is

com

pose

d o

f:

busi

ness

ente

rprise

exp

enditure

on R

&D

(BERD

), h

igher

educa

tion e

xpenditure

on

R&

D (

HERD

), g

ove

rnm

ent

exp

enditure

on R

&D

(G

OV

ERD

) and p

riva

te n

on-p

rofit

exp

enditure

on R

&D

(PN

RD

).

As

part

of

the L

isbon o

bje

ctiv

es

for

2010, th

e E

U is

try

ing t

o r

ais

e it

s re

searc

h a

nd

deve

lopm

ent

exp

enditure

such

that

it a

ccounts

for

at

least

3 %

of

GD

P. In 2

003,

EU

-25 g

ross

dom

est

ic e

xpenditure

on r

ese

arc

h a

nd d

eve

lopm

ent

was

equal

to

2.0

% o

f G

DP.

The c

orr

esp

ondin

g r

atio w

as

low

er

in e

ach

of

the C

andid

ate

countr

ies,

with o

nly

Cro

atia r

eport

ing R

&D

exp

enditure

above

1 %

of

GD

P.

R&

D

409

CH13.QXD 27/10/05 11:18 Page 123

(1)

19

88

=1

00

; so

urc

e,

Exe

cutiv

e A

gency

on E

nvi

ronm

enta

l Pr

ote

ctio

n a

t th

e M

inis

try

of

Envi

ronm

ent and W

ate

r.(2

) Sourc

e,

Min

istr

y of

the E

nvi

ronm

ent and W

ate

r M

anagem

ent.

(3)

Dir

ect

em

issi

on g

ase

s (C

O2,

CH

4and N

20

) fr

om

the f

uel co

mbust

ion in the f

ollo

win

g s

ect

ors

(ele

ctri

city

pro

duct

ion,

transp

ort

, in

dust

ry,

house

hold

s and o

thers

), a

s w

ell

as

agri

cultu

re,

ente

ric

and indust

rial pro

cess

es.

14

124

Tab

le 1

4.1

: To

tal

gre

en

hou

se g

as

em

issi

on

s (t

on

nes

of

CO

²eq

uiv

ale

nt

per

cap

ita

)

1995

1996

1997

1998

1999

2000

2001

2002

2003

EU

-25

11.0

11.2

11.0

10.9

10.7

10.7

::

:

Bu

lgari

a (

1)

62.8

60.8

52.2

51.5

47.6

47.5

48.0

45.9

50.0

Cro

ati

a70.4

73.9

78.8

79.5

82.7

82.6

85.1

88.5

:

Ro

man

ia (

2)

71.9

74.4

65.8

56.3

49.0

50.3

51.5

54.9

58.4

Tu

rkey (

3)

122.7

134.1

141.0

140.7

139.9

155.4

143.6

146.7

155.3

Alb

an

ia:

::

::

::

::

Bo

snia

an

d H

erz

eg

ovin

a:

::

::

::

::

Th

e f

orm

er

Yu

go

slav R

ep

ub

lic

of

Mace

do

nia

::

::

::

::

:

Serb

ia a

nd

Mo

nte

neg

ro:

::

::

::

::

Ko

so

vo

:

::

::

::

::

GR

EEN

HO

USE G

AS E

MIS

SIO

NS A

ND

MU

NIC

IPA

L W

ASTE

En

vir

on

men

t

CH14.QXD 27/10/05 11:23 Page 124

125

Fig

ure

14.1

: Q

ua

nti

ty o

f m

un

icip

al

wa

ste c

ollect

ed

(k

ilog

ram

s p

er

inh

ab

ita

nt)

(1

)

(1)

Alb

ania

, Bosn

ia a

nd H

erz

egovi

na,

the f

orm

er

Yugosl

av

Republic

of

Mace

donia

,Serb

ia a

nd M

onte

negro

and K

oso

vo,

not ava

ilable

. (2

) C

olle

cted m

unic

ipal w

ast

e p

er

pers

on s

erv

ed b

y m

unic

ipal se

rvic

es.

(3

) 1

99

5,

not ava

ilable

. (4

) Sourc

e,

Min

istr

y of

the

Envi

ronm

ent and W

ate

r M

anagem

ent. (

5)

Surv

ey

resu

lts a

pplie

d to m

unic

ipalit

ies;

indic

ato

rs a

re c

alc

ula

ted a

ccord

ing to the g

enera

l popula

tion c

ensu

s of

Turk

ey;

mid

-year

popula

tion d

ata

betw

een c

ensu

ses

has

been k

ept co

nst

ant, a

s th

e p

opula

tion o

fm

unic

ipalit

ies

cannot be e

stim

ate

d.

0

200

400

600

800

EU

-25

BG

(2)

HR (3)

RO

(4)

TR (5)

AL

BA

MK

CS

XK

1995

2003

EU

ta

rgets

se

t by

the

Kyo

to

Pro

toco

l in

clude

reduci

ng

clim

ate

-changin

g

gre

enhouse

gas

em

issi

ons

by

8 %

betw

een 1

990 a

nd 2

008-2

012.

Per

capita

em

issi

ons

in t

he E

U-2

5 w

ere

genera

lly r

educe

d d

uring t

he p

eriod 1

995 t

o 2

000

and t

his

patt

ern

will

need t

o c

ontinue if

the t

arg

ets

are

to b

e m

et.

Am

ong th

e C

andid

ate

co

untr

ies,

em

issi

ons

per

inhabitant

were

co

nsi

dera

bly

hig

her

than in t

he E

U-2

5.

While

there

was

som

e e

vidence

of

falli

ng e

mis

sions

in

the C

andid

ate

countr

ies

during t

he l

ate

1990s,

the f

ast

exp

ansi

on o

f energ

y

consu

mption a

ssoci

ate

d w

ith t

he r

ela

tive

ly r

apid

pace

of

eco

nom

ic d

eve

lopm

ent

oft

en le

d t

o e

mis

sions

per

capita o

nce

again

ris

ing f

rom

2000 o

nw

ard

s (e

xcept

in

Turk

ey,

where

the leve

l of

em

issi

ons

per

capita w

as

stable

).

The b

ulk

of

munic

ipal

wast

e i

s fr

om

house

hold

s, a

lthough s

imila

r w

ast

es

from

sourc

es

such

as

com

merc

e, off

ices

and p

ublic

inst

itutions

are

als

o incl

uded in

the

data

pre

sente

d. M

unic

ipal w

ast

e in

cludes

paper, p

aperb

oard

and p

aper

pro

duct

s,

pla

stic

s, g

lass

, m

eta

ls,

food a

nd g

ard

en w

ast

e,

and t

ext

iles.

En

vir

on

men

t

CH14.QXD 27/10/05 11:23 Page 125

127

METHODOLOGICAL NOTES

The following notes are presented in the same order as the indicators

within the main body of the publication, structured according to the

chapter headings. At the end of this section there are details of three

classifications that have been used for the presentation of data. More

information may be found on these by referring to the RAMON

classifications server, which can be accessed through the Eurostat web-site

at: http://europa.eu.int/comm/eurostat/ramon

1. Demography

Population data should provide a count of the number of inhabitants in a

given area as of 1 January of the reference year in question. Population

data may be based on information available from the most recent census,

adjusted by the components of population change (the number of births

and deaths, and the net result of migration into and out of the territory

concerned). Alternatively, population data may be compiled from

administrative registers.

Population density measures the number of inhabitants per square

kilometre (km²). The information should be based upon the mid-year

population of a territory in relation to the size of the territory. The land area

covered by a territory generally includes inland waterways (rivers, lakes

etc).

Data on crude birth rates and crude death rates are expressed in terms of

the number of births or deaths per thousand inhabitants. These rates are

a measure of the number of births or deaths in a reference year divided by

the average population of the same reference year.

Fertility rates for a given reference year are measured as the average

number of children that would be born to a woman during her lifetime if

she were to pass through her childbearing years conforming to the average

fertility rates of each year. The data therefore represent the completed

fertility of a hypothetical generation of women, with the overall figure

being computed as the sum of the fertility rates for each age (with the

number of women assumed to be the same for each age).

Infant mortality rates are measured as the ratio of deaths of children under

the age of one, in relation to the number of live births during the same

reference year; the result is expressed as a ratio per thousand live births.

CH15.QXD 27/10/05 10:54 Page 127

128

2. Education

The proportion of early school leavers is computed as those aged 18 to 24

who have not completed upper secondary education and who are not in

any other form of education or training. The numerator refers to persons

aged 18 to 24 in the following two conditions: the highest level of

education or training attained is ISCED 0 (pre-primary education), ISCED 1

(primary education) or ISCED 2 (lower secondary education); the

respondent declared not having received any education or training in the

four weeks preceding the (LFS) survey. The denominator is the total

population of the same age group (those aged from 18 to 24), excluding

persons having not answered questions concerning their participation in

education and training.

The proportion of the population aged 20 to 24 having completed at least

upper secondary education is defined as the percentage of young people

(aged 20 to 24) having attained (completed) at least the upper secondary

education attainment level, in other words, with at least an education level

of ISCED 3 ((upper) secondary education). The denominator consists of the

total population of the same age group (aged 20 to 24), and excludes

persons having not answered questions concerning their participation in

education and training. The expression 'having attained' should be

associated with obtaining a certificate or diploma. In cases where there is

no certification, successful completion must be associated with full

attendance of the course.

The indicator of tertiary graduates in science and technology per thousand

population aged 20 to 29 is calculated by dividing the number of

graduates (of all ages) in the fields of science and technology by the total

population aged 20 to 29 and then multiplying by a thousand.

The information on life-long learning presents the proportion of the

population aged 25 to 64 who participated in education and/or training (at

any time during a four week period). The information collected relates to

all education or training and includes initial education, further education,

continuing or further training, training within an enterprise,

apprenticeships, on-the-job training, seminars, distance learning, evening

classes, and self-learning. It also includes general interest courses, such as

language courses, computing, management, art/culture, and

health/medicine courses.

Public expenditure on education is expressed as a proportion of GDP.

Generally, the public sector funds education by: financing current and

capital expenditure on educational institutions; supporting, at least to

some degree, students and their families with scholarships and loans, and;

transferring public subsidies for educational activities to private firms or

non-profit organisations (transfers).

CH15.QXD 27/10/05 10:54 Page 128

129

3. Social indicators

The inequality of income distribution is measured as the ratio of total

income received by the 20 % of the population with the highest incomes

(the top quintile) to that received by the 20 % of the population with the

lowest incomes (the lowest quintile). This calculation should be made on

the basis of equivalised disposable income, which is calculated for each

household by adding together the income received by all members of the

household and dividing by the equivalised household size (which is

calculated as the sum of the persons in the household on the basis of the

following weights: 1.0 to the first adult, 0.5 to other persons aged 14 or

over who are living in the household, and 0.3 to each child aged less than

14).

The gender pay gap is expressed as a percentage of average gross hourly

earnings of male paid employees and relates to all paid employees (who

work at least 15 hours per week) between the ages of 16 and 64.

The tax wedge is defined as the proportion of total labour costs that are

accounted for by income tax on gross wage earnings, employee's and

employer's social security contributions.

Total labour costs are defined as gross earnings plus employer's social

security contributions and payroll taxes (where applicable). The indicator is

compiled for single persons without children who are earning 67 % of the

average salary for a production worker (APW).

The unemployment trap measures the proportion of gross earnings which

is taxed away by higher tax and social security contributions and the

withdrawal of unemployment and other benefits when an unemployed

person moves into employment. This indicator is defined as the difference

between gross earnings and the increase in net income when moving from

unemployment to employment, expressed as a proportion of gross

earnings. This indicator is compiled for single persons without children

earning 67 % of the APW.

The proportion of the population living in jobless households is measured

for two sub-populations, children aged 0 to 17, and persons aged 18 to

59. In both cases the number of persons living in jobless households is

expressed as a proportion of the total sub-population (in other words, as a

share of all children aged 0 to 17 or as a share of all persons aged 18 to

59). The information covers all persons living in private households (except

for students aged 18 to 24 who live in households composed solely of

students; these are not counted in either the numerator or denominator).

Household consumption expenditure measures the value of all goods and

services that are used for directly meeting household needs. It covers actual

expenditure on purchases of goods and services, own consumption such

as products from kitchen gardens, and imputed rents for owner-occupied

dwellings. Investment effected by households, direct duties and taxes paid

to various administrations, and savings are all excluded.

CH15.QXD 27/10/05 10:54 Page 129

130

Health expenditure should ideally be provided in relation to the System of

Health Accounts (SHA), which defines total expenditure on health as 'the

final use of resident units of health care goods and services plus gross

capital formation in health care provider industries'. This indicator is

expressed as a proportion of GDP in current price terms.

Data on social protection expenditure should ideally be drawn up

according to the ESSPROS (European System of integrated Social

Protection Statistics) methodology. Social benefits consists of transfers, in

cash or in kind, by social protection schemes to households and individuals

to relieve them of the burden of sickness, disability, old age,

family/children, unemployment, housing, and social exclusion not

elsewhere classified. This indicator is expressed as a proportion of GDP in

current price terms.

4. Labour force

Employed persons are defined in the Labour Force Survey (LFS) as persons

aged 15 years or more who did any work for pay or profit during the

reference week.

The labour force is defined as those employed and those unemployed, in

other words, those working and those seeking to work.

Activity rates for persons aged between 15 and 64 are defined as the

proportion of persons aged between 15 and 64 in the labour force in

relation to the total population of the same age. Activity rates for men and

for women are expressed as a percentage of the male population aged 15

to 64 and the female population aged 15 to 64 respectively, not as a share

of the total (male and female) population aged 15 to 64.

Employment rates for persons aged between 15 and 64 are defined as the

proportion of employed persons aged between 15 and 64 in the total

population of the same age. Employment rates for men and women are

expressed as a percentage of the male population aged 15 to 64 and the

female population aged 15 to 64 respectively, not as a share of the total

(male and female) population aged 15 to 64.

The employment rate of older workers (defined as those aged 55 to 64) is

defined in much the same way as for total employment rates, except that

the numerator and the denominator are changed to reflect the age group

of this sub-population.

Unemployed persons are defined as those aged 15 to 74 years who were

not employed during the reference week of the survey, but who had

actively sought work during the previous four weeks prior to the survey

and were ready to begin working within two weeks. Unemployment rates

for men and women are expressed as a proportion of the male labour force

aged 15 to 74 and the female labour force aged 15 to 74 respectively, not

as a share of the total (male and female) labour force aged 15 to 74.

CH15.QXD 27/10/05 10:54 Page 130

131

Youth unemployment rates for men and women are expressed as a

proportion of the male labour force aged 15 to 24 and the female labour

force aged 15 to 24 respectively, not as a share of the total (male and

female) labour force aged 15 to 24.

The duration of long-term unemployment is defined in terms of the period

spent searching for a job, or as the period since the last job was held (if

this period is shorter than the duration of search for a job). As with other

unemployment rates, long-term unemployment rates for men and women

are expressed as a proportion of the male labour force aged 15 to 74 and

the female labour force aged 15 to 74 respectively, not as a share of the

total (male and female) labour force aged 15 to 74.

5. National accounts

GDP per capita is an indicator that is derived through the division of GDP

by the total population. The population data should consist of all persons,

national or foreign, who are permanently settled in the economic territory,

even if they are temporarily absent. This means that total population is

defined using the concept of residence rather than nationality. Note that

population figures from national accounts may vary when compared with

those for demographic statistics.

Final consumption expenditure (ESA95) consists of expenditure incurred by

resident institutional units on goods or services that are used for the direct

satisfaction of individual needs or wants or the collective needs of

members of the community.

Private final consumption expenditure (ESA95) includes households' and

non-profit-making institutions' final consumption expenditure. Households

consist of employers, employees, recipients of property incomes, recipients

of pensions, recipients of other transfer incomes.

Government final consumption expenditure (ESA95) includes the value of

goods and services produced by general government itself (other than

own-account capital formation), and sales and purchases by general

government of goods and services produced by market producers that are

supplied to households (without transformation) as social transfers in kind.

Gross capital formation (ESA95) is comprised of gross fixed capital

formation and stock variations. Gross fixed capital formation consists of

resident producers' acquisitions (less disposals) of fixed assets (tangible or

intangible) during a given period, plus certain additions to the value of

non-produced assets realised by the productive activity of producer or

institutional units.

Imports of goods and services are recorded on the resources side of the

account and exports of goods and services on the uses side. The difference

between uses and resources is the balancing item in the account, referred

to as the external balance of goods and services.

CH15.QXD 27/10/05 10:54 Page 131

132

The average of imports and exports of goods and services as a proportion

of GDP is calculated by simply summing imports and exports (both should

be given as positive values) and dividing by 2 (to create the mean of

exports and imports). The result is then divided by GDP and multiplied by

100.

Gross value added (ESA95) is measured at market prices. It can be defined

as final output minus intermediate consumption, plus subsidies, minus

taxes linked to production.

Labour productivity is defined as GDP at constant prices divided by total

employment (covering both employees and the self-employed).

Unit labour costs are defined in two steps. The numerator is composed of

compensation per employee, and is expressed in current prices. The

denominator is GDP in current prices divided by total employment.

Compensation of employees is defined as the total remuneration, in cash

or in kind, payable by an employer to an employee in return for work done

by the latter during the accounting period. It consists of wages and

salaries, and employers' social contributions. Employees are defined as all

persons who, by agreement, work for another resident institutional unit

and receive remuneration. Total employment covers all persons (employees

and the self-employed) who are engaged in a productive activity that falls

within the production boundary of the system.

6. Finance

The general government deficit/surplus (ESA95) refers to the national

accounts' concept of consolidated general government net borrowing/net

lending. It refers to net borrowing or lending over the course of a single

reference year. The general government sector comprises central

government, state government, local government, and social security

funds.

General government debt (ESA95) is the consolidated stock of gross debt

at nominal value at the end of the year. In other words, it is the

accumulated total debt (over the years) of a territory.

The reference framework for balance of payments statistics is the

International Monetary Fund's (IMF) balance of payments manual (fifth

edition). Most items entered in the current account of the standard

components should show gross debits and credits. The current account

covers all transactions (other than those in financial items) that involve

economic values and occur between resident and non-resident entities.

Most entries in the capital and financial account should be made on a net

basis, as a credit or a debit. Inflows of real resources, increases in financial

assets, and decreases in liabilities should be shown as debits; outflows of

real resources, decreases in financial assets, and increases in liabilities

should be shown as credits.

CH15.QXD 27/10/05 10:54 Page 132

133

The reference framework for foreign direct investment (FDI) statistics is the

OECD's benchmark definition of foreign direct investment (third edition),

which was developed in line with the IMF's balance of payments manual

(fifth edition). Foreign direct investment (FDI) is international investment

made by an entity resident in one economy (the direct investor) to acquire

a lasting interest in an enterprise operating in another economy.

Money supply aggregates are end of year stock data.

The information presented for interest rates covers day-to-day money

rates, with the data presented as the annual average of overnight inter-

bank rates. The lending interest rate is an annual average of the lending

rate of banks to customers other than banks. The deposit interest rate is

an annual average of the deposit rate applied to bank deposits for

customers other than banks.

Consumer price indices (CPIs) should cover all purchases by households

within the territory; those by resident and non-resident households (the so-

called domestic concept), while prices should measure those faced by

consumers (excluding interest and credit charges, which are regarded as

financing costs rather than consumption expenditure).

Reserve assets are measured as end of year stock data. They are defined as

the sum of central bank holdings of foreign exchange, special drawing

rights (SDRs), reserve positions in the IMF, and other claims on non-

residents. Gold is also valued at the end of year market price when

included in reserve assets.

7. Agriculture

Total land area is measured in terms of square kilometres (km²) and should

include all land area, as well as inland waterways (rivers, lakes, canals etc).

Utilised agricultural area (UAA) is the land used for farming. In the case of

successive or combined cropping, the area concerned must not be counted

more than once. Arable land refers to land that is worked regularly,

generally under a system of crop rotation. Permanent grassland is land that

is not included in a crop rotation system, but instead is used as permanent

production (five years or more) of green, forage crops (whether sown or

self-seeded). Permanent crops are crops that are not grown in rotation,

which occupy the soil for a long period and yield crops over several years

(grassland is excluded).

Wooded areas are defined as areas covered with trees or forest shrubs,

including poplar plantations, and forest-tree nurseries. Non-commercial

woodland, commercial woodland, deciduous, coniferous and mixed

woodland are all included, while trees grown mainly for their fruit or other

non-forest crops, as well as heath and moorland are excluded.

Other land (which is not used for agriculture or as wooded areas) includes

built-up areas and open land (for example, heathland or tundra).

CH15.QXD 27/10/05 10:54 Page 133

134

All livestock data are recorded for the end of the reference year in terms of

units of livestock (referred to as heads within agricultural statistics). Cattle

are domestic bovine animals, including bovine animals under one year old,

and dairy cows. Dairy cows are defined as cows which by reason of their

breed or particular qualities are kept exclusively or principally to produce

milk for human consumption or for processing into dairy products. These

include cull (taken out of production) dairy cows (whether or not fattened

between their last lactation and their slaughter). Pigs are domestic animals,

including piglets, breeding boars and sows, and cull boars and sows.

Poultry are defined as domestic animals including broilers, laying hens,

turkeys, ducks (including ducks for foie gras), geese (including geese for

foie gras), and other poultry (for example, quails, pheasants, guinea-fowl,

pigeons, ostriches). Sheep are defined as domestic animals and may be

divided into breeding females, female sheep which have lambed, ewes and

ewe lambs for breeding, cull ewes and other sheep. Goats are defined in

a similar way and may be categorised as breeding females, female goats

which have kidded, nanny-goats and kids for breeding, cull nanny-goats

and other goats. All data relating to the production of animals for

slaughter are recorded in terms of their slaughter weight.

Information relating to crop production measures the volume of harvested

production in terms of tonnage. Data for cereals refer to the production of

dry grain, as cereals harvested green for forage, silage or grazing are

excluded (they are classified as green fodder crops). The heading of cereals

includes the following: wheat, rye and maslin, barley, oats, grain maize,

sorghum, triticale, buckwheat, millet, and canary seed, while this heading

also covers rice. Sugar beet is a root crop which is intended for use in the

sugar industry and for alcohol production; seeds are excluded. Oilseeds

include rape, sunflower seed, oil flax, soya bean, poppy, mustard,

sunflower, cotton, earth almond, sesame, and groundnut. Potatoes include

early potatoes and seed potatoes. The production of fruit includes apples,

pears, stoned fruits (such as apricots, peaches, plums, and cherries), nuts,

citrus fruits (such as oranges and lemons), soft fruits and currants,

avocados, figs and quinces. The production of vegetables includes all fresh

vegetables (not dried pulses) and melons grown outdoors or under low

non-accessible cover; vegetables grown principally for animal feed and

cultivated vegetables for seeds are excluded.

CH15.QXD 27/10/05 10:54 Page 134

135

8. Energy

Gross inland consumption is the quantity of energy necessary to satisfy

inland consumption of the geographical territory under consideration. It

may be calculated as primary production plus recovered products plus

imports plus variations of stocks minus exports minus bunkers. As such, it

corresponds to consumption, distribution and transformation losses. Gross

inland consumption is measured in terms of tonnes of oil equivalent (TOE).

Gross national electricity consumption comprises total gross national

electricity generation from all energy sources, plus electricity imports,

minus electricity exports.

Primary production of crude oil is defined as the quantity of fuel extracted

or produced within national boundaries, including off-shore production,

with production including only marketable production of crude oil, natural

gas liquids (NGL), condensates and oil from shale and tar sands, while

excluding any quantities returned to formation.

Primary production of hard coal and lignite is defined as the quantity of

fuel extracted or produced after any operation for removal of inert matter.

Production generally includes quantities consumed by the producer during

the production process, as well as quantities supplied to other on-site

producers of energy for transformation or other uses.

Primary production of natural gas is defined as the quantity of dry gas,

measured after purification and extraction. Production includes only

marketable production used within the natural gas industry, for gas

extraction, in pipeline systems and processing plants, while excluding any

quantities re-injected, vented and flared, as well as extraction losses.

Net imports of energy products are defined as the volume of imports minus

the volume of exports.

Final energy consumption is calculated net of transformation and network

losses, and also excludes consumption of energy products for non-energy

purposes.

9. Industry, construction and services

The theoretical aim of the industrial production index (IPI) is to reflect

developments in value added. In practice, however, value added is not

available on a monthly basis in most countries. Therefore, data is generally

collected for variables other than value added, with possible alternatives

including output quantities, gross production value, turnover, raw material

consumption, labour input and energy use. The production index is a

volume index which should cover NACE Sections C and D and Groups 40.1

and 40.2. The basic form of the index is working-day adjusted; if this is not

available an unadjusted index should be provided.

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The industrial producer price index (PPI) should reflect domestic output

prices, as determined by the residency of the third party that has ordered

the product, which should be the same territory as the producer. Prices

should be defined as ex-factory prices including all duties and taxes, except

for VAT (and similar deductible taxes linked to turnover). The producer

price index for total industry should cover NACE Sections C to E, excluding

Groups 12.0, 22.1, 23.3, 29.6, 35.1 and 35.3. The basic form of the index

is an unadjusted (gross) index.

The theoretical aim of the volume index of construction output is to reflect

developments in value added. In practice, however, data is generally

collected for variables other than value added and the index may be

compiled from gross output data (quantity, production value or turnover)

or input data (hours worked, employment or materials used), or

administrative declarations (such as building permits). The output of the

production process in construction includes new structures and extensions,

repair, maintenance and improvement. The volume index of construction

output should cover NACE Section F. The basic form of the index is

working-day adjusted; if this is not available an unadjusted index should be

provided.

The construction cost index can be considered as a combination of

component cost indices (covering material costs and labour costs). Material

costs should be based on actual rather than list prices (excluding VAT).

Labour costs should cover wages and salaries and social security charges.

Other components of the cost index include plant and equipment,

transport and energy, although architect's fees are not included. The index

should be limited to new building work for residential buildings, excluding

residences such as old people's homes, student halls or hostels. The basic

form of the index is an unadjusted (gross) index.

The volume of sales index for retail trade should cover the total turnover

invoiced by the observation unit during the reference period. Turnover

should include all duties and taxes on the goods or services invoiced by the

unit (except for VAT), as well as charges for transport or packaging that are

passed on to the customer. Reduction, rebates and discounts should be

deducted. The index should be a volume index and an adjusted consumer

price index is often used as the deflator. The index should cover NACE

Division 52 (although Group 52.7 may be excluded). The basic form of the

index is working-day adjusted; if this is not available an unadjusted index

should be provided.

The number of arrivals of non-residents staying in collective

accommodation establishments refers to arrivals (both domestic and

international) at hotels and similar establishments, which should include

other collective accommodation establishments, such as holiday dwellings,

tourist campsites, youth hostels and other forms of group accommodation.

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10. Transport

A road may be defined as a line of communication using a stabilised base,

primarily for the use of road motor vehicles running on their own wheels.

Note that bridges, tunnels, supporting structures, junctions, crossings and

interchanges, as well as toll roads are included, while dedicated cycle paths

are excluded. As such, this indicator should measure the length (in

kilometres) of state roads, provincial roads and communal roads, but

should ideally exclude motorways.

The length of railway network should measure (in kilometres) the length of

railway lines that are in use or operation. Lines solely used for tourist

purposes during a particular season are excluded, as are railways that are

constructed solely to serve mines, forests or other industrial or agricultural

undertakings (which are not open to public traffic).

Motorways are defined as roads that have been especially designed for

motor traffic, providing separate carriageways for two directions of traffic

that are separated from each other, while not crossing at the same level

any other road, railway or footpath.

Passenger cars may be defined as road motor vehicles, other than

motorcycles, that are intended for the carriage of passengers and designed

to seat no more than nine persons (including the driver). Hence, the data

presented should cover micro-cars (no permit required to be driven), taxis

and hired passenger cars (with less than ten seats), the only exception

being minibuses.

Transport performance indicators should be reported according to the

territoriality principle, meaning that only freight that is transported within

the national territory should be included.

11. Communications and information society

A main telephone line is one that connects the subscriber's terminal

equipment to the public switched network, with a dedicated port in the

telephone exchange system. This is synonymous with the terms 'main

station' or 'direct exchange line'. The data on the number of main fixed

telephone lines are provided either by the NSIs or they are taken from the

International Telecommunications Union (ITU), available at:

http://www.itu.int/home. A main telephone line may be an exclusive

exchange line or a shared line. Note that the number of main telephone

lines is not the same as the number of subscribers as, for example, several

subscribers may share a line or have private extensions from a private

branch exchange.

Cellular mobile telephone subscribers refer to users of portable telephones

subscribing to an automatic public mobile telephone service using cellular

technology that provides access to the Public Switched Telephone Network

(PSTN). The number of subscriptions to cellular mobile telephone services

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is also provided either by the NSIs or is taken from the International

Telecommunications Union (ITU). The data provided by the ITU come from

an annual questionnaire sent to telecommunication authorities and

operating companies. These data are supplemented by annual reports and

statistical yearbooks of telecommunication ministries, regulators, operators

and industry associations. Note that one person may have multiple

subscriptions (often as a way to obtain a new hand-set) which may or may

not be in use, and as such penetration rates may rise to over 100 %.

The number of personal computers (PCs) is also provided either by the NSIs

or is taken from the International Telecommunication Union (ITU). Data

from the ITU are estimates.

Turnover indices for services comprise the totals invoiced by the

observation unit during the reference period. The data correspond to

market sales of goods or services supplied to third parties. Turnover

includes all duties and taxes on the goods or services invoiced by the unit

with the exception of the VAT invoiced by the unit with respect to its

customer, and other similar deductible taxes directly linked to turnover.

Turnover also includes all other charges (for example, transport, packaging)

passed on to the customer, even if these charges are listed separately in the

invoice. Reductions in prices, rebates and discounts, as well as the value of

returned packing must be deducted. Price reductions, rebates and bonuses

conceded later to clients, for example at the end of the year, are not taken

into account. Subsidies received from public authorities are also excluded.

The turnover index is a value index and in its basic form it is provided as a

working-day adjusted index; if this is not available an unadjusted index

should be provided.

The EU-25 information on the use of technology within enterprises is

derived from a Eurostat pilot survey. The data relating to Internet access

refer to all enterprises with 10 or more persons employed within NACE

Sections D, G, H, I or K. The data relating to use of the Internet to interact

with public authorities (for example, obtaining information, downloading

forms, filling-in web-forms, full electronic case handling) refer to all

enterprises with 10 or more persons employed, within NACE Sections D, F,

G, H, I, K or O. The proportion of turnover from Internet e-commerce is

defined as transactions conducted over Internet Protocol-based networks;

the goods and services must be ordered over these networks, but the

payment and the ultimate delivery of the good or service may be

conducted on or off-line; orders received via telephone, facsimile, or

manually typed e-mails are not counted as electronic commerce; the

indicator is collected for all enterprises with 10 or more persons employed,

within NACE Sections D, G, H, I or K.

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12. External trade

External trade data for imports and exports cover normal trade (mainly

goods exported definitively and released into free circulation), inward and

outward processing and economic processing arrangements for textiles.

The statistical value of external trade is calculated at national frontiers. It

can be calculated free on board (FOB) for exports, or including cost,

insurance, freight (CIF) for imports. The values therefore only include

incidental expenses incurred during the part of the journey that takes place

within the territory from which the goods are exported (in the case of

exports) and outside of the territory into which the goods are imported (for

imports). The statistical values are generally based on the customs value.

13. Research and development (R&D)

The basic methodological recommendations and guidelines for research

and development (R&D) statistics are found in the Frascati Manual

(Proposed Standard Practice for Surveys of Research and Experimental

Development - Frascati Manual, OECD, 1994, revised 2002). R&D is

defined as comprising 'creative work undertaken on a systematic basis in

order to increase the stock of knowledge, including knowledge of man,

culture and society and the use of this stock of knowledge to devise new

applications'. Gross domestic expenditure on R&D refers to R&D activities

in the business enterprise sector, the government sector, the higher

education sector, and the non-profit sector. GDP figures are compiled in

accordance with ESA 1995. Indicators are calculated using current prices.

14. Environment

Annual greenhouse gas (GHG) emissions are estimated and reported

according to the revised 1996 Intergovernmental Panel on Climate Change

(IPCC) guidelines. By using the global warming potential (GWP) concept,

all six GHGs can be summed up to a single value per year. The indicator

shows trends in emissions of the 'Kyoto basket': carbon dioxide (CO2),

methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),

perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). Figures are given

in CO2 equivalents based on tonnage, with the base year set as 1990.

Data for municipal waste are calculated on the basis of the amount of

municipal waste which is collected by or on behalf of municipal authorities,

together with the amounts for landfill or incineration. Landfill is defined as

the deposit of waste into or onto land, including specially engineered

landfill, and temporary storage of over one year on permanent sites. The

definition covers both landfill in internal sites (i.e. where a generator of

waste is carrying out its own waste disposal at the place of generation) and

in external sites. Incineration is defined as the thermal treatment of waste

in an incineration plant or a co-incineration plant.

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CLASSIFICATIONS

COICOP - classification of individual consumption by purpose

This classification is used for the breakdown of household consumption.

Note that although COICOP data is presented at a fairly aggregated level,

the following list is provided to help define each of the aggregates.

COICOP DESCRIPTION

01-12 Individual consumption expenditure of households

01 Food and non-alcoholic beverages

02 Alcoholic beverages, tobacco

03 Clothing and footwear

04 Housing, water, electricity, gas and other fuels (including actual

rentals for housing; maintenance and repair of the dwelling;

water supply and miscellaneous services relating to the

dwelling; electricity, gas and other fuels)

05 Furnishings, household equipment and routine maintenance of

the house (including furniture and furnishings; carpets and

other floor coverings; household textiles; household appliances;

glassware, tableware and household utensils; tools and

equipment for house and garden; goods and services for routine

household maintenance)

06 Health (including medical products, appliances and equipment;

out-patient services; hospital services)

07 Transport (including the purchase of vehicles; operation of

personal transport equipment; transport services)

08 Communication (including postal services; telephone and

telefax equipment and telephone and telefax services)

09 Recreation and culture (including audio-visual, photographic

and information processing equipment; other major durables

for recreation and culture; other recreational items and

equipment, gardens and pets; recreational and cultural services;

newspapers, books and stationery; package holidays)

10 Education (pre-primary and primary, secondary, post-secondary

non-tertiary, tertiary education, and education not definable by

level)

11 Restaurants and hotels (including catering services;

accommodation services)

12 Miscellaneous goods and services (including personal care;

personal effects n.e.c.; social protection; insurance; financial

services n.e.c.; other services n.e.c.

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ISCED 97 - international standard classification of education

This classification is used for the breakdown of the number of

pupils/students; it is also used for determining the coverage of a number

of other education indicators.

ISCED DESCRIPTION

0 Pre-primary level of education (initial stage of organised

instruction, designed primarily to introduce very young children

to a school-type environment)

1 Primary level of education (programmes normally designed to

give students a sound basic education in reading, writing and

mathematics)

2 Lower secondary level of education (generally continues the

basic programmes of the primary level, although teaching is

typically more subject-focused, often employing more

specialised teachers who conduct classes in their field of

specialisation)

3 Upper secondary level of education (final stage of secondary

education in most countries. Instruction is often more organised

along subject-matter lines than at ISCED level 2 and teachers

typically need to have a higher level, or more subject-specific,

qualification than at ISCED 2. There are substantial differences

in the typical duration of ISCED 3 programmes both across and

between countries, ranging from 2 to 5 years of schooling)

4 Post-secondary, non-tertiary education (these programmes

straddle the boundary between upper secondary and post-

secondary education from an international point of view, even

though they might clearly be considered as upper secondary or

post-secondary programmes in a national context. These

programmes are often not significantly more advanced than

programmes at ISCED 3 but they serve to broaden the

knowledge of participants who have already completed a

programme at level 3. The students are typically older than

those in ISCED 3 programmes. They typically have a full-time

equivalent duration of between 6 months and 2 years)

5 First stage of tertiary education (programmes with an

educational content more advanced than those offered at levels

3 and 4)

6 Second stage of tertiary education (leading to an advanced

research qualification, this level is reserved for tertiary

programmes that lead to the award of an advanced research

qualification. The programmes are devoted to advanced study

and original research)

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NACE Rev. 1.1 - statistical classification of economic activities

in the European Community

This classification is used for the breakdown of value added and

employment, for defining the coverage of indices of production, output

price and turnover from short-term business statistics, as well as to

determine the scope of selected information society indicators in relation

to enterprise use of technology.

NACE DESCRIPTION

A and B Agriculture, hunting, forestry and fishing

C to E Industry (excluding construction)

C Mining and quarrying

D Manufacturing

E Electricity, gas and water supply

F Construction

G to P Services (as defined by NACE Sections G to P)

G Wholesale and retail trade; repair of motor vehicles, motorcycles

and personal and household goods

52 Retail trade, except of motor vehicles and motorcycles; repair of

personal and household goods

H Hotels and restaurants

I Transport, storage and communication

J Financial intermediation

K Real estate, renting and business activities

L Public administration and defence, compulsory social security

M Education

N Health and social work

O Other community, social and personal service activities

P Activities of households

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