It is imperative to recognise the potential for investments that will be the main generator of development in Southeast Europe, notably Croatia, Croatian Economy Minister Djuro Popijac said, adding that Croatia's priorities were attracting investment in the energy sector, the transport infrastructure, farming and tourism.

European Union membership is important but one should avoid the widespread belief that investments will flow upon accession to the EU. That requires a favourable climate that Croatia must ensure, said Austrian Foreign Minister Michael Spindelegger.

He said it was imperative to stop thinking in terms of national economies and focus on a market of about 25 million people.

We must not think in national terms but in terms of regional markets and sub-economies. An economic region with 25 million consumers is a huge advantage, Spindelegger said.

Based on a shared history, culture and way of thinking about business, this region will automatically head towards an economic cluster. That is a comparative advantage of the Western Balkans in relation to other areas. Geography plays an important part in it, he said, adding that in the context of the Danubian-Pannonian-Mediterranean region, Austria was an integral part of the Balkans.

The region has to identify itself as permanently stable and predictable to attract foreign investments, which calls for solving outstanding issues and establishing the rule of law, said Hido Biscevic, secretary general of the Regional Development Council, adding that there would be no major international financial injection if there was no intra-regional cooperation.

Croatia Summit 2011 continues with panels on security in the Mediterranean in light of the recent uprisings in the Arab world and the prospect of EU enlargement to Southeast Europe.