At their meeting of 29 April 1997, the EU Foreign Ministers agreed to adopt a coherent and transparent policy towards south-eastern Europe. It is directed at four of the successor republics of former Yugoslavia (Croatia, Bosnia and Herzegovina, FRY, and FYROM) as well as Albania. The policy lays out clear conditions that these countries must fulfil in order to qualify for trade, aid and deepening of relations with the EU. It aims to improve political stability as well as economic development and relations in the region. An important element of this conditionality is the readiness of these countries to engage in cross-border co-operation with their neighbours. This overall EU policy is known as the "regional approach".

Commitment to Dayton/Paris: a prerequisite

The Commission applies the principle of political conditionality very strictly. Aid can in no way benefit those who do not comply with the provisions of the Dayton peace accords. This principle was rigorously applied in July 1997 when after consultation with the High Representative, the Commission decided to freeze part of its programmes in Republika Srpska (RS). When the new "pro-Dayton" government was appointed at the beginning of this year in RS, the Commission immediately freed up part of the frozen funds in order to allow the new government to start working. The European Commission did however continue to supply humanitarian aid to the vulnerable in Republika Srpska.

Inauguration serves as political gesture

Numerous officials were present at the inauguration of the health centre (dom zdravlja) of Rogatica, in Republika Srpska, on 11 June 1998. This centre was rebuilt with the help of ECHO (European Community Humanitarian Office) and the Portuguese Government. ECHO will continue to support this centre by supplying essential medicine.

For the first time, a very official inauguration ceremony was held in this part of the country, with High Representative Carlos Westendorp and Milorad Dodik, the Prime Minister of Republika Srpska. This gesture was intended to highlight the determination of the international community to start a series of rebuilding projects in Republika Srspka. It should be stressed that the restoration of the health center does not mark the beginning of ECHO's aid effort in the region. ECHO was present in the area since the beginning of the crisis.

The rehabilitation of this health centre will benefit 18,000 inhabitants in the region of Rogatica, including 8,000 displaced persons, mainly Serbs from Sarajevo.

Encouraging perspectives

1998 began more auspiciously in Bosnia-Herzegovina. Following the nomination of a new moderate government on 26.1.1998 in Republika Srpska, the tension between the two Entities abated, and the reconstruction programmes, hitherto frozen in that part of the country, were able to get under way.

A moderate government in Republika Srpska

Following the nomination of a new, moderate government in Republika Srpska on January 26th, tensions should diminish between the two entities. Reconstruction programmes, frozen until now in this part of the country, will be able to start up again. The attitude of the new government should ease the complex situation of displaced populations, allowing Bosniaks and Croats from Republika Srpska to go back to their own homes.

Reinforced power for the High Representative

Following the Peace Implementation Council meeting in Bonn in December 1997, High Representative Carlos Westendorp's powers have been reinforced. Since then, for example, laws on citizenship, car license plates, currency and the national flag have been adopted.

A continued military presence

The decision taken in December 1997 by NATO ministers ensures the continuation of a military presence in Bosnia-Herzegovina when the SFOR mandate expires at the end of June 1998. This is a clear sign of the international community's long term commitment to ensure that all aspects of the Dayton/Paris peace accords are respected.

All these elements should give added momentum to the reconstruction activities and at the same time encourage more refugees and displaced persons to return home.