"Bosnia and Herzegovina is a European State. Those things which it most needs in the medium term ­ the freeing of trade, the re-establishment of infrastructure links, the adoption of a free market system - are areas of European Union competence and expertise. Above all, the Union was itself created to enable former enemies to live in peace with each other. Lessons learnt on the Rhine need to be extended to the Danube and the Sava."

Tom Spencer, Member of the European Parliament

This declaration of Tom Spencer, MEP, at the end of the ad hoc Parliamentary delegation's mission to Bosnia-Herzegovina in February 1998, sums up perfectly the general philosophy underlying the European commitment to this new State, and demonstrates the importance that MEPs attach to the implementation of the reconstruction programme financed by the European Union. During regular fact-finding visits to Bosnia and Herzegovina by MEPs or ad hoc delegations as in February 1998, the Parliament examines carefully the financial, administrative and political challenges facing the European Union in the framework of its efforts to help the people of Bosnia-Herzegovina. During the ad-hoc Delegation's mission in February 1998, the Parliament criticised the delay in the implementation of the Commission's programme on the ground. The Parliament actively supported the amendment of the regulations proposed by the Commission to speed up and improve the implementation of Community aid programmes.

This interest manifested by the European Parliament for the reconstruction of Bosnia-Herzegovina is on-going. As soon as the first peace agreements were signed, the European Parliament demonstrated this interest when, in the autumn of 1995 at the time of voting its 1996 budget, it approved an additional budget of 100 million ECU for aid to Bosnia-Herzegovina.

Support for the electoral process

The European Parliament participated actively in the supervision of the elections in Bosnia-Herzegovina: MEPs were present in the polling stations during the different electoral phases laid down in the Dayton/Paris accords. A Parliamentary delegation will return there for the crucial elections to be held in September 1998.

1998: The Commission improves its action

On 20 April 1998, the Council of Ministers adopted important amendments to the regulations (1628/96) for the reconstruction programme. These amendments had been proposed in recent months by the Commission in order to improve the effectiveness of its aid programmes and to take greater account of the complex political realities in Bosnia-Herzegovina. These new regulations have now entered into force, and the management of a large part of the programme has been decentralised to the European Commission's Representation in Sarajevo, where the Commission's new Representative, Mr Hansjörg Kretschmer, will have greater responsibilities regarding decision-making locally and co-ordinating actions with other donors.

Decentralisation

A new decentralised structure has been set up with more personnel in the field and a new technical assistance office to reinforce the management capacity of the Commission's programmes. Henceforth the Representation in Sarajevo has more responsibility in the preparation and development of projects, the signature of contracts, the follow up and payments. It now operates along similar lines to other bilateral donors, such as USAID for example.

Direct co-operation with local authorities

The Commission proposed modifying the rule that until now, obliged it to sign agreements with the Bosnian state's central authorities. The Commission is now able to sign contracts directly with the authorities in the entities, cantons and municipalities.

Improving regulations

The decision-making process has been simplified. The new regulations allow contracts of up to 3 million ECU to be signed directly with implementing organisations. To speed up the implementation of programmes and increase their effectiveness, the EC has proposed simplifying the decision-making process. New regulations allow contracts of up to 3 million ECU to be signed directly with implementing organisations. Contracts for amounts between 3 and 10 million ECU will be awarded following restricted tenders. This will save 4 months in their preparation, publication and evaluation.