Mediterranean leaders call for economic integration

By Bahattin Gonultas and Dilara Zengin

BARCELONA, Spain (AA) – Regional integration is significant for the Mediterranean to create greater investment opportunity, trade, transfer of technology and economic advantages, Sudqi al-Omoush, Deputy Secretary General of Union for the Mediterranean (UfM) said on Thursday.

Speaking at the 10th Mediterranean Week of Economic Leaders conference in Barcelona, Omoush warned about the extreme weakness of regional integration in the Mediterranean.

"Intra-trade in the UfM zone as a single trading bloc indicates that 90 percent of all exchanges in the zone takes place between EU member states themselves, nine percent EU member states and Southern Mediterranean countries, and only one percent between southern Mediterranean countries," he noted.

The UfM comprises the 28 EU member states, the European Commission and 15 Mediterranean countries.

"The extreme weakness of regional integration has become more unacceptable than ever," he added.

Omoush said the region witnessed serious changes and upheavals in recent years, both in the political and socio economic spheres.

"Those changes across the region have been mainly driven by socio-economic factors and by people's hope for a better future.

“Therefore, the key to enable a successful transition in the region lies in socio-economic advancement reached, with real impact on citizens’ lives," he said.

"The region harbors huge potential for economic growth and prosperity. It has a young and educated population and it possess various natural endowment resources," he added.

Omoush also said there are many challenges which needed to be urgently addressed.

"We need to tackle high unemployment, which is particularly severe among the youth -- averaging approximately 25 percent -- and women. We should prioritize the development of small and medium sized enterprises (SMEs).

“There is an urgent need to improve general business climate to create adequate conditions to foster local and foreign direct investment," he explained.

There is need to focus on SMEs, which are dominant in the region, as they constitute over 85 percent of all registered companies and contribute over two-thirds of total formal employment,” Omoush said.

"We need to explore more ways to increase SME creation, in particular in the digital economy which represents new and high potential for economic growth in the region," he added.

Anadolu Agency is the event's Global Communication Partner. This is the second time the agency is participating in the event.