World Bank supports Bulgarian EU membership

The World Bank is supporting Bulgaria’s upcoming EU membership and has offered to assist the country in its integration efforts, according to World Bank vice president for Europe and Central Asia Katsu Shigeo.

Shigeo met Prime Minister Sergei Stanishev this week to discuss Bulgaria’s EU entry. On 13 June, the World Bank’s board of executive directors approved a new Country Partnership Strategy for Bulgaria. The strategy said Bulgaria’s first years as EU member would be important for increasing economic competitiveness and business developments.

The World Bank has promised to be both a source of funding for Bulgarian projects and a reliable partner. Shigeo said that the bank believed Bulgaria would be able to deal with the changes it would experience after joining the EU.

Average Canadian property prices exceed $300,000 for first time

Average residential property prices in Canada now stand at over $300,000 for the first time on record, according to Real Estate Marketing.

Property prices in May stood at $303,836, which is a 12.9% year-on-year rise.

“May marks the fourth consecutive month in which the major market average residential price broke all previous records”, said CREA chief economist Gregory Klump. “Sales activity continues to run high, despite rising interest rates and home prices. This shows how additional full time job growth, rising incomes and resilient consumer confidence are working together to keep housing demand strong.

“Recent price increases are resulting in a growing shortage of lower priced resale home listings in a number of markets. This is crimping sales in lower price ranges and pushing up the average price for MLS home sales. With prices on the way up and a shortage of listings in lower price ranges, some buyers may feel that if they don’t buy now, they may not be able to afford to later”, he added.

More production plants to open in Poland

German truck manufacturer MAN Nutzfahrzeuge started building a new assembly plant in Krakow, Poland on 20th June 2006. The total investment in the plant is expected to be €90-100m. From mid-2007 mainly heavy TGA WorldWide trucks and MAN TGAs will be built there. Krakow will be the company’s third Polish plant in its interlinked production set-up. At present more than 2,600 people are employed at its plants in Poznan and Starachowice.

MAN Nutzfahrzeuge has set itself the target of achieving sales of 100,000 trucks per year by 2010. In the medium term 650 people will be employed in at the new plant in Poznan to produce 15,000 vehicles a year. The trucks are intended for the growth markets in Eastern Europe, Russia, South Africa and the Middle East. Components such as axles, cabs and engines will be supplied from the MAN plants in Germany and Austria.

Meanwhile, US automotive manufacturer General Motors has announced it is in negotiations with Ukrainian manufacturer UrkAvto, to establish a joint manufacturing venture near Warsaw, Poland that would produce Chevrolet brand vehicles. Initially it would produce 25,000 vehicles a year but capacity could rise to 300,000 a year.

The work council boss of GM Europe, Klaus Franz, says this decision could lead to the reduction of capacities in Western Europe. At present the Corsa is built by the GM subsidiary OPEL in Zaragoza, Spain. The joint venture could be the first step in shifting Corsa production capacities from west to Eastern Europe.

Slovenia to adopt the Euro

Slovenia has been given the go-ahead to switch its currency to the Euro as of 2007, after the country met the criteria set by the EU.

Prime minister Janez Jansa reportedly said: “With all the open issues faced by the EU, the decision to expand the Eurozone to Slovenia is proof that the bloc is still continuing with its integration process.”

Rent hikes announced for stabilized apartments in New York

News York's Rent Guidelines Board has agreed to increase rents for rent-stabilized apartments by as much as 4.25 percent for one-year leases and 7.25 percent for two-year leases, which is expected to affect no fewer than one million New Yorkers.

“Nobody’s happy with this increase”, said Nick LaPorte, executive director of the Associated Builders and Owners (ABO) of Greater New York. “It still doesn’t cut it in terms of what the owners’ cost increases have been for fuel, for unionized maintenance workers and for property taxes. Real estate taxes alone went up 18 percent last year in New York City, and fuel costs are making owners apoplectic. So where’s the win here?”

Moscow ranked world's most expensive city

Moscow has replaced Tokyo as the world's most expensive city, according to the latest research by Mercer Human Resource Consulting.

Seoul is in second place, followed by Tokyo in third place, followed by Hong Kong. Asuncion in Paraguay was the least expensive city in the survey.

Rebecca Powers of Mercer said: "We have seen significant shifts in the cost-of-living rankings over the past few years, reflecting a changing global market. For many companies, it can now be more expensive to send employees to work in Russia or Korea than places like Japan or Switzerland which are often perceived to be more costly.

"More companies are now sending employees on expatriate assignments, so there is a greater need to keep pace with the cost of living changes."

Bulgaria and Romania to construct bridge over Danube

The agreement for the construction of a bridge over the Danube, joining Bulgaria’s Vidin to Romania’s Calafat will be signed in August 2006. On 27 June, Bulgarian Transport Minister Petar Moutafchiev and his Romanian counterpart Radu Berceanu negotiated the terms of the agreement during a meeting in Vidin.

Both parliaments should ratify the project agreement by the end of September, a Council of Ministers press release said.

Tenders for companies willing to execute the project would be opened on 15 September 2006 and construction works will be launched in May or June 2007.

Moutafchiev and Berceanu also talked about co-operation under the initiative for the construction of airspace functional unit and improved navigation of the Danube River.

A meeting with the Greek transport minister was needed to further discuss the construction of the Pan-European Corridor 4, said Moutafchiev.

EIB lends €50m for Slovakian motorway

The European Investment Bank (EIB) will lend €50m for the completion of the D1 Motorway linking Bratislava to Zilina. The section of road is part of the Trans-European Transport Corridor No. 5, connecting Vienna and the Slovakian capital to Gdansk in Poland.

Motorway connection between Bratislava and Žilina plays a crucial role for the development of central and northern Slovakia. It is also part of the future motorway to be built to Košice (in eastern Slovakia), a key infrastructure for the whole country. This section, in particular, is expected to stimulate substantial foreign direct investment in the region, notably with the construction and operation of the automotive production plant of Kia in Žilina, a significant industrial investment for the country and the region.

The EIB loan will finance the construction of a new 9.6km motorway section between Sverepec and Vrtizer (northwest Slovakia). It will be provided to the Slovakian Ministry of Finance and the project will be promoted by the National Motorway Co., a joint stock company owned by the Slovakian Government and operating under the Ministry of Transport. This company is responsible for the management, maintenance, and investment into the Slovakian motorway and expressway network.