One of the priorities of the Visegrad Group (also known as the ‘Visegrad Four’ or simply ‘V4’) is to engage in a regional activity through the European Union, which constitutes a unique form of regional and political cooperation. each V4 partner has the same opportunity of potential for action during the rotating presidency which runs from early July to late June the following year. The Visegrad cooperation started in February 1991 when president of the Republic of Poland Lech Wałęsa, president of the Czech and Slovak Federal Republic Vaclav Havel and Prime Minister of the Republic of Hungary József Antall signed the Visegrad declaration, which has been treated as a form of cooperation of the three, and later four, post-communist countries.
The Visegrad Group reflects the ongoing efforts of the countries of the central European region to cooperate in a number of fields of common interest within the European integration. despite the diverse roots of their religious and social backgrounds, particularly economic and geopolitical interests, the Czech Republic, Hungary, Poland and Slovakia have always been part of a common civilization sharing cultural and intellectual values. concerning institutionalization, the structure of the Visegrad Group is based solely on the principle of periodical meetings of its representatives at various levels.
All the V4 countries strived to become members of the European Union. Thus, it was perceived as a step forward in the process of mutual support in Europe. Finally, the goal was reached in 2004 by all of them joining the EU. The Visegrad Group has not come to compete with the existing central European structures in the all-European integration efforts. its cooperation is in no way focused on the weakening of ties with other countries, but instead, the Group aims at encouraging an optimum collaboration with all countries with the ultimate interest of democratic development in whole Europe. All the activities of the Visegrad Group are to build the European security and strengthen stability in the central European region. This cooperation is perceived as a challenge to prove that the participating countries are able to integrate into the European Union structures as well (Jan, 2016).
According to the report “Revival of the Visegrad Countries' Mutual Trade After Their EU Accession” (Foster et al., 2011) after the Visegrad countries’ accession to the EU in 2004, one of the most remarkable developments was the sudden upturn in mutual trade. In 2007 the value of aggregate intra-Visegrad trade was two and a half times higher than in 2003. The rate of growth in these countries’ trade with the ‘old’ EU member states was only half as much. In the post-accession years, each of the Visegrad countries had higher (in most cases substantially higher) exports growth rates in the trade with individual members of the group than in trade with the EU-15. Also, individual Visegrad countries had higher export growth rates to other Visegrad members in the post-accession period than in the years before EU accession (Foster et al., 2011). Besides, in 2017 the value of aggregate intra-Visegrad trade was three and a half times higher than in 2003
According to a report of the Erste Group, through participation in the EU, the GDP of the Visegrad Group has grown by about 1 % per year. Each of the four countries has also recorded a growth of GDP per capita – more than by double in Slovakia and Poland. national buying power (capacity) of the four countries has reached an average of 65% for the old EU (EU 15). For 10 years the pay gap has decreased by one third.
The accession to the EU has provided companies from these countries with new opportunities to access a single market of over 500 million customers. This has brought benefits in terms of increasing exports with the growth noticeable in all four countries. export of the Visegrad Group countries has been growing three times faster than that of the EU15. Export has become one of the most important assets of the region. Three of the four countries (Slovakia, Hungary and the Czech Republic) were ranked among the five most open economies in the EU. currently, the Visegrad Group is the fourth largest exporter in the EU – an improvement compared to the sixth position of 2003.
The V4 performed well on world markets. The level of their exports to non-EU countries has increased fourfold since 2003. Together they have also become the second (after Germany) the largest manufacturer of cars in the EU.
Quality of life in Poland, the Czech Republic, Hungary and Slovakia have risen more than in the UK and Germany during the last ten years. ‘ten years after the EU accession, the socio-economic progress in V4 is plain to see. The EU membership has boosted both the economic strength and the relevance of V4 countries.’ – emphasizes Juraj Kotian of the Erste Group (Jan, 2016).
These developments are reflected in the changes concerning the geographical distribution of trade. While the relative significance of trade with other Visegrad countries increased substantially both in the immediate pre-accession years (2000-2003) and the immediate post-accession years, the shifts were stronger in favour of intra-Visegrad trade in the years after accession for all four countries and in both exports and imports. The post-accession increment relative to the pre-accession increment in intra-Visegrad group trade was especially remarkable in the case of Hungarian and Slovak exports and Czech imports. In 2007 the Visegrad group’s share in Hungarian exports and imports was already substantially higher than in 1985, then still under the extreme protectionist umbrella of the CMEA. The same is the case for Poland’s intra-Visegrad exports (the 2007 Visegrad share in imports still lagged somewhat behind the 1985 share). For the Czech Republic and Slovakia, no such comparison can be made as these two countries still constituted one common state back in 1985 and their trade was internal and not foreign trade. However, the recent changes are highly interesting: The share of intra-Visegrad exports in total Slovak exports decreased substantially in the years before EU accession only to undergo a strong revival after the accession. In imports intra-Visegrad purchases made up one-fifth of total Slovak imports in 2000; three years after the country’s EU accession this share was close to one third. In 2009 the value of Slovak imports from the Visegrad group amounted to as much as three-quarters of the imports from the EU-15. Though less spectacularly, the relatively high share of the Czech Republic’s trade with the Visegrad group in its total trade reflects the continuation of the Czech-Slovak special relations nearly two decades after the peaceful separation of the two entities.
This clear increase in the relative significance of intra-Visegrad trade for each member of the group must appear as a loss of relative significance for other trade partners. In the case of exports, the shrinkage of this group’s share accelerated substantially after the Visegrad countries’ accession to the EU, with the exception of exports to Slovakia. The same decrease in the significance of the EU-15 took place in imports, too, but here the shrinkage was somewhat slower after the EU accession in the case of two countries, the Czech Republic and Hungary.
That means that EU accession gave an important impetus to the mutual trade of the countries concerned. This sudden acceleration of trade expansion cannot be explained by the removal of trade barriers upon accession. Free trade for industrial commodities had been long in place. Most of the restrictions on agricultural and food industry products had also been removed by 1 May 2004 already, and this applies to trade with the EU-15 and intra-regional trade as well.
In order to find an answer to the question what is behind the extraordinary intra-Visegrad trade expansion, our attempts were focused on changes in the commodity composition of commodity and services trade and characteristic features of FDI flows before and after the Visegrad countries’ accession to the EU. Research on developments in commodity trade included traditional descriptive analysis of trade flows, the decomposition of trade flows by factor inputs and skills, an investigation of trade increments via marginal intra-industry trade indicators, intensive and extensive margins of trade expansion and finally by revealed comparative advantage indicators (Foster et al., 2011).
During the 10 years of EU membership, V4 countries have experienced economic growth and strong income convergence. in order to maintain the income convergence and utilize further benefits from the EU, the Visegrad Four needs to explore more possibilities in production and export, improve the quality of institutions and raise the share of EU funds. Moreover, there are several motivational factors toward which the V4 should orientate. The most crucial elements for Poland are the increase of spending on research and development and the transition to an innovative model of economy and administration. Slovakia should reform its public institutions and increase the flexibility of the labour market. recommendations for Hungary are to increase the use of EU funds, reduce public spending and improve the employment rate. Czechs should reduce corruption and increase the efficiency of institutions, support the investment and diversification of energy sources.
Concerning the short-term challenges, it is essential to focus on networking and improving people-to-people contacts between eastern and central Europe through various national programmes and initiatives of individual V4 partners. in order to facilitate the development of such networking, the V4 signed an agreement on a gradual and conditional exit of the visa regime during the second eastern partnership summit in September 2011. The V4 efforts of easing visas should be presented to the EU. These activities show that the residents of eastern European countries are treated with more sensitivity and remarkable commitment to the V4 borders.
Speaking of the key projects from a long-term perspective, the Visegrad area needs an active agenda of effective, successful and efficient projects to extend the level of common interests and obligations. even though the V4 has limited economic and financial tools, the idea is to encourage the EU to include these needs in the scope of the EU’s external financial instruments. recently, there have been several projects focusing on the accession of the South Caucasus to the EU or the development of gas trade between Ukraine and Slovakia, Hungary and Poland.
Taking into account the current situation in Ukraine, the reason for continuing to strengthen the general EU policy towards Eastern partnership countries and the south Caucasus is even more visible, transparent and understandable. however, treating Ukraine and Moldova in the same way as Belarus or Armenia might be seen as quite risky and inadequate. The latter two have limited interest in central Europe and the EU accession, contrary to Moldova with a fast pace of changes in progress. such cooperation is mostly created to achieve free trade, democratic transitions, finalizing negotiations on Association Agreements, especially in the case of Georgia, Moldova and Ukraine. towards Moldova and Ukraine, the EU should make a much more joined effort to offer them more ambitious propositions which come up to the countries’ expectations as reflected in the political declarations on future accession. Besides, the Visegrad Group can engage them more in the V4 cooperation which can also help to approach the EU and on the long run the V4 may serve as an EU group for the additional amelioration of the eastern partnership in negotiations with the EU.
Since a few more other countries from central Europe have stated that they are interested in the eastern partnership, it should be a clear sign for considering a formation of a broader platform directed at east European countries. This would strengthen the position of the V4 in the EU and would also improve the ongoing eastern partnership programme of the new EU states. Bearing in mind the Visegrad plus platform of cooperation, the V4 should promote the eastern partnership to a broader central European structure. Visegrad Four should cooperate within the European Union not only by consulting on current issues of common interests but also by actively contributing to the development of the ‘Wider Europe – new neighbourhood’ policy and the EU strategy towards the new Member states (Jan, 2016).
The Visegrad Four can be regarded as one of the most successful initiatives in central Europe. it consists of mutual relations at all levels – from political summits to activities with non-governmental associations and numerous networks of individuals. twenty years ago, the Visegrad Group was seen by many European countries as a group of partners without significance. now the V4 has a rightful place with one credible voice that affects not only the V4 group but also the European Union as a whole.
From the Polish perspective, the aim of the Visegrad Group is to further strengthen the V4 position within the international forums and to achieve a further EU enlargement. it is important to maintain both EU and intra-group cooperation in order to defend the achievements of freedom, deepen the single market, maintain a positive attitude towards the common EU budget and strengthen the enlargement policy. Despite the persisting crisis, the V4 states pursue the integration process regardless of the expenses of transformation and other problems which may occur in aligning with EU requirements.
Concerning the issue of the geopolitical position of the V4, it is natural that they will support the further sustainability of the EU project, the EU enlargement policy and the development of neighbourhood policy. The V4 should cooperate with the eastern partnership area in order to successfully complete the EU integration process, which requires further transformation during its progression. And this can be a key role for the Visegrad Group.
Since re-joining Europe, the V4 countries – isolated from the rest of democratic Europe for over half a century – have markedly shown the EU their growth potential and ability to cope with challenges caused by globalisation. This cooperation has reached an impressive degree of intensity based on the mutual bonds and common interests of V4 states. owing to this situation, the Visegrad Group has earned an adequate place in the political, social and economic European stage. one cannot treat the Visegrad Four as a sole unanimity, as according to the EU, this cooperation provides a valuable additional impact on the regional stability while being beneficial for the whole EU.
As far as the future areas of the Visegrad cooperation in the EU are concerned, the Visegrad Group is likely to effectively support the interests of central European EU Member states in order to articulate policy ideas important to the region and the entire EU. The offered opportunities include communication, emphasis on the objective community of the common interests and the role of regional and V4 cohesion. Moreover, Poland as being a part of the V4 wishes to follow the examples set during the past presidencies and carry on changes and transformation based on their experience. The ‘V4+’ format proved that it is advisable to include other partners in the cooperation for the next projects as a way to further consolidate the achievements of the EU enlargement process and the potential of Eastern Europe.
These days, the four Visegrad Group countries within central Europe have become known as the summary of contemporary European success. Václav Havel came to the Polish parliament in 1990 stating that: ‘(...) we have an opportunity to transform central Europe from what has been a mainly historical and spiritual phenomenon into a political phenomenon ... we can offer the inspiration to consider swift and daring solutions.’ That was and still remains the challenge for the V4. By cooperating, together they represent a common powerful brand – they constitute the essence of the Europeans who have not given up on Europe and are determined to make Europe a success (Jan, 2016).
