8 June 1998: Declaration on Special Relations between EU and BiH

On the occasion of its first meeting with the Foreign Minister of Bosnia and Herzegovina, accompanied by the Deputy Foreign Ministers, the Council of the European Union welcomed the progress in Bosnia and Herzegovina that made such a visit possible and reaffirmed its commitment to a sovereign, united and independent Bosnia and Herzegovina. The Council issued a Declaration on Bosnia and Herzegovina's place in Europe, on the basis of the London Peace Implementation Council (PIC) Conclusions of December 1995 and subsequent such meetings and with a view to the Steering Board meeting at ministerial level on 9 June 1998, as well as on the basis of the EU's Regional Approach, as defined by the Council conclusions of February 1996 and April 1997.

EU Declaration on Bosnia and Herzegovina

1. The EU believes that Bosnia and Herzegovina (BiH) has started on a path leading to closer integration with Europe and European structures. The elections in September offer you, the Bosnian people, a key opportunity to take this process further: to shape your own destiny by building a new Bosnia and Herzegovina and establishing democracy in your country and your communities. You can seize this opportunity by choosing leaders who will pursue the future you want for yourselves and your children; and who will manage your country's affairs honestly and responsibly.

2. The EU will continue to help you if you help yourselves and accept your responsibilities under the Dayton/Paris Agreement to build a peaceful, democratic and open nation, where religious and cultural differences no longer divide communities, but are respected and tolerated. This is the way for Bosnia and Herzegovina to find her future in the family of European nations and confirm her European perspective, and for you, her people, to find peace and prosperity.

Europe and Bosnia and Herzegovina: Unity with Diversity

3. The EU confirms that Bosnia and Herzegovina belongs in Europe. Its Regional Approach sets out the conditions Bosnia and Herzegovina, as well as other countries in the region, must meet in pursuing their aspirations to participate in European structures. The conditions for Bosnia and Herzegovina are starting to be met.

4. At the moment, with the active engagement of the High Representative, Carlos Westendorp, the necessary building-blocks of a modern nation are being put in place: central institutions and instruments such as a common currency are being consolidated; the rule of law is taking hold; progress is being made towards a free media; municipal election results, with one notable exception, have been implemented; freedom of movement and the right of return are becoming a reality and co-operation with the International Criminal Tribunal in the Hague is at last gathering momentum. There is now real hope that BiH's divided past can be succeeded by a shared future. The September elections offer a key opportunity to reconcile her communities and construct a new civil society, and for her leaders as a result to assume their full responsibilities to govern.

5. The EU looks forward to the pace of peace implementation increasing in 1998 and calls on all the Bosnian authorities to make BiH a fully-functioning democratic and multi-ethnic state on equal terms with her neighbours, and to develop active and effective political and economic co-operation between the BiH State and the two Entities. Good governance and the principles of transparency and fairness must become habitual practice. Leaders must be properly accountable to their communities.

6. Before the September elections, Bosnia and Herzegovina needs to establish the structures for self-sustaining and irrevocable peace, through accelerated implementation of the Dayton/Paris Agreement, so that all her people can share in the benefits. In particular, State and Entity political and administrative institutions must discharge their responsibilities effectively. Security for BiH's people must be enhanced through further confidence-building measures in the military sphere and full police restructuring and reform.

7. The European Union looks to BiH's leaders to conduct the election campaign in a fair and open manner and to set their sights by the standards of the best European practice.

8. The rights, freedoms and democratic safeguards that most other countries in Europe take for granted must become second nature for Bosnia and Herzegovina's people too. Respect for universal human rights and the rule of law, based on a properly functioning judicial system, must prevail. A free, independent and open media is crucial for building a democratic future.

9. The vital process of reconciliation must be consolidated. All indictees remaining at large must come before the Hague Tribunal: as long as they remain beyond the reach of justice they prevent a nationwide sense of security and undermine Bosnia and Herzegovina's efforts to leave her past behind.

10. The EU looks for substantial progress, in this year of refugee return, in getting displaced persons and refugees safely back to their homes. It calls on the Bosnian authorities to implement rapidly the commitments arising from the Refugee Return Conferences at Sarajevo and Banja Luka, and to remove all obstacles to return.

11. Recent European experience shows that diversity does not preclude unity. Bosnia and Herzegovina's ethnic diversity should be seen as a potential source of strength.

Bosnia and Herzegovina's Relations with her Neighbours

12. Close and cooperative relations between Bosnia and Herzegovina and her neighbours are essential for peace and stability in the region, and to enable democracy and prosperity to take hold. But these relations must also uphold Bosnia and Herzegovina's independence, sovereignty and unity within her current borders. There is no place in the European family for ambitions to establish "Greater Serbia" or "Greater Croatia".

13. The EU reiterates the requirement in the Regional Approach for FRY and Croatia to uphold all aspects of the Dayton Agreement. Action is needed urgently on all-way refugee return and to bring special relations into line with the Bosnia and Herzegovina Constitution. The EU's relations with FRY and Croatia will reflect these factors, and the general readiness of these two countries to use their influence constructively to help Bosnia and Herzegovina take her place in Europe.

Economic Transformation

14. Overcoming the effects on Bosnia's economy of the former managed economic system and of the war is not easy. But establishment of a market economy is the best way to bring prosperity to BiH and her people. The recent economic successes of many countries in central Europe show what can be achieved. So economic reform and development, on the basis of the recent agreement with the IMF, are urgently needed, as is action to tackle corruption. Cooperation with international financial institutions, notably the World Bank and the EBRD, will be increasingly important. If the appropriate conditions are met, the EU will progressively cooperate with BiH on economic reform.

15. The international community cannot do all this for Bosnia and Herzegovina. To attract investment and create growth and jobs, Bosnians themselves, Government and Assembly, at State and Entity level, must take action. Fair and comprehensive laws on privatisation and property are needed, to be underpinned by a functioning and non-discriminatory legal system. Transparency is needed in the privatisation process. Chambers of Commerce have a role too, in promoting foreign trade and good business practices. These steps will enable the economy to grow and flourish.

The EU's Contribution

16. The Regional Approach sets out ways by which, if Bosnia and Herzegovina meets the conditions set out in it, the EU will be ready to make its relations with her closer and more intense. But the relationship has other elements too.

17. The EU will remain the major single donor in Bosnia and Herzegovina, as confirmed once again at the Brussels Donors' Conference last month. By 1999 it will have spent in BiH 1 billion ECU in reconstruction and technical assistance, as well as a further 1 billion ECU in humanitarian aid. Provided BiH remains on track with the IMF, the EU's aid programme will be extended to include macro-financial assistance. It is helping BiH to begin the transition to a market economy, a pre-condition for a cooperation agreement on the lines of those with other countries in the region.

18. Moreover, the EU will encourage efforts to build a democratic society and extend political pluralism, including establishing multi-ethnic parties. This will help Bosnia and Herzegovina to meet rapidly the standards for Council of Europe membership. The EU as well as Member States bilaterally will promote exchanges in governmental and nongovernmental fields. The Council invites the European Parliament to consider enhancing its own contacts with Bosnia and Herzegovina.

EU/Bosnia and Herzegovina Consultative Task Force

19. In the unique circumstances prevailing in Bosnia and Herzegovina following the Dayton/Paris Agreement, the EU also proposes to create with BiH a joint Consultative Task Force. Its purpose will be to help BiH establish a fully-functioning state and develop means of meeting some of the technical prerequisites to closer cooperation with the Union, in particular with the aim of assisting Bosnia and Herzegovina prepare for possible contractual relations with the EU in the future. The EU is pleased that the authorities of Bosnia and Herzegovina, including at Entity level, have agreed to this proposal.

20. The Consultative Task Force will be a practical, working body at expert level, bringing together EU experts to work with the Bosnian authorities at State and Entity level on a range of technical issues. Taking account of the Dayton/Paris Agreement, as well as relevant UN Security Council resolutions, it will liaise as appropriate with the High Representative and other bodies, such as the IMG, to ensure that its work adds value to activities that are already under way, as well as those to be carried out in the future.

21. The Presidency and Commission will represent the EU in the Consultative Task Force. The first meeting will take place in Brussels on 10 June and thereafter in Sarajevo. The Consultative Task Force will submit its findings and recommendations to the appropriate Bosnian authorities".