European Commission The World Bank Europe for BiH - No 8, October 1999
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Europe for BiH - Quarterly newsletters published by the European Commission on its actions in Bosnia and Herzegovina

In this issue:


The Stability Pact for South-Eastern Europe

Building on the model of EU integration

The Stability Pact for South Eastern Europe, adopted on 10 June in Cologne, is a European Union (EU) initiative which lays down a framework for co-operation between the European Union, the European Commission, the United States, Russia, Japan, the Balkan countries, Turkey and other countries plus regional and international organisations and international financial institutions. The aim is to bring peace, stability and economic development to the region.

For obvious geographical, political and historical reasons, the European Union has a particular responsibility towards and interest in the stabilisation and development of the Balkan region. The EU's latest strategy for achieving these goals is based on the model used to rebuild western Europe after the Second World War and on policies adopted by the then European Community following the fall of communism in central and eastern Europe in 1989.

The aim of the stability pact is to foster peace and reconciliation between the peoples of south eastern Europe and to put in place conditions designed to encourage democracy, the development of market economies and a system of regional co-operation and interdependence. These basic pre-conditions must be met by all countries in the region who one day hope to join the EU as fully-fledged member states.

The European Union has had to re-appraise its policies towards the former Soviet bloc on two occasions during the past decade. In 1989-90, the policymakers of what was then the European Community (EC) had to devise a strategy to help protect and encourage economic and democratic reforms in the states of central and eastern Europe. Then in 1991 they were faced with the break up of the former Soviet Union. On both occasions, the Community opted to develop 'contractual' relations with the countries concerned ­ "Europe Agreements" for the Central and Eastern European Countries (CEECs), and 'Partnership and Co-operation Agreements' for the countries of the former Soviet Union.

Brand new contractual relationship

When it comes to the Balkan region, the EU faces an ever greater challenge. Despite major efforts to stabilise individual countries and the region as a whole over the last decade, the progress made so far has been fragile. This is clear from the degree to which it has been jeopardised by the conflict in Kosovo. By proposing a Stabilisation and Association Process for five countries of South-Eastern Europe, the EU reaffirms its resolve to take up the challenge and responsibility to contribute to the stability of the region, this time by offering a perspective of integration, based on a progressive approach adapted to the situation of the specific countries.

The Stabilisation and Association process is designed to enhance the existing Regional Approach that has up until now provided the basis for all EU initiatives concerning the Union's five main 'target' countries in south eastern Europe: Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia, the former Yugoslav Republic of Macedonia and Albania.

The Stabilisation and Association process offers stronger incentives to these five countries, but also places more demanding political and economic conditions on them. The need for regional co-operation is stressed particularly strongly.

In the framework of its Stabilisation and Association Process, the European Union will introduce a new dimension to its relations with the region, namely the offer to these five countries ­ in return for compliance with the relevant conditions ­ of a tailor-made category of contractual relations: Stabilisation and Association Agreements (SAAs). These agreements will be available for all the countries and will provide a more advanced relationship. These agreements will take into account the specific and evolving situation of each country and will be gradually introduced in light of the ability of each country to meet reciprocal, contractual obligations, as well as of its effective contribution to regional co-operation.

The EU is itself a model for overcoming conflicts by promoting reconciliation through close co-operation to achieve common goals, while respecting national sovereignty and territorial integrity. States hoping to develop closer relations with the European Union are expected to behave in a similar manner.


Political dialogue

Need for a stronger Bosnian State

"The strengthening of Bosnia and Herzegovina's (BiH's) common institutions and the development of statehood are crucial for the country's European future" said the European Commission on 20 July, following a political dialogue meeting between EU foreign affairs ministers and their Bosnian counterpart Jadranko Prlic.

The EU has sent a clear signal to the BiH authorities that any further strengthening of bilateral relations - including the possible opening of negotiations for a Stabilisation and Association Agreement (SAA) - will depend on progress made in implementing the Dayton/Paris peace agreements and on the development of a credible constitutional structure for the country.

"Without substantial improvements in the structures of the state, BiH's rapprochement with the European Union will be endangered" the EU warned. Finnish Foreign Minister Tarja Halonen said that the EU would continue to support efforts being made in BiH to strengthen democracy, promote national reconciliation and introduce a market economy, but she stressed that the main responsibility for achieving all these goals lies with the Bosnian authorities and people themselves.

Along with the urgent need to improve basic state structures such as a properly functioning parliamentary democracy and an efficient civil service, the EU has highlighted the problems of corruption and organised crime as major obstacles currently standing in the way of an SAA.

The European Commission, which handles EU-BiH relations on a day to day basis, has also expressed concern about the failure of the BiH authorities to encourage refugees and displaced persons to return to their homes. In addition, says the institution, BiH needs to make greater efforts to develop a unified economy, push ahead with the privatisation of state owned industries, encourage foreign direct investment and achieve reform of the broadcasting media landscape.

When can the SAA negotiations start for BiH?

When Bosnia and Herzegovina meets the relevant conditions -which is not yet the case- a technical report on the feasibility of starting the negotiations for a Stabilisation and Association Agreement will be prepared by the European Commission. Precisely when the Commission conducts this feasibility study will depend mainly on the conclusions and recommendations of the next 'conditionality' report, which is being prepared as part of the Regional Approach and will be published in November 1999. So far only the former Yugoslav Republic of Macedonia has been considered by the EU eligible to start the negotiations.

The EU/BIH consultative task force is a unique forum in which technical issues regarding BiH-EU rapprochement are discussed. The task force plays an important role in the Stabilisation and Association process and its next formal meeting is scheduled to take place on October 7.


The Stabilisation and Association process at a glance

WHAT IS IT?

  • The European Union's (EU's) main contribution to the Stability Pact for South-East Europe.
  • Enhancement of the Regional Approach, which has until now provided the framework for the development of relations between the EU and Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia, the former Yugoslav Republic of Macedonia and Albania.
  • Stronger incentives for the region, but also more demanding conditions regarding political and economic development and regional co-operation.
  • A tailor-made, progressive approach that takes into account the individual situation of each country. Some countries can progress faster than others.

WHAT IS IN IT?

The Stabilisation and Association process will include, as appropriate:

  • Stabilisation and Association Agreements: a new kind of contractual relationship offered by the EU ­ in return for compliance with the relevant conditions-- to Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia, the former Yugoslav Republic of Macedonia and Albania. This represents a new dimension in the relations with these five countries, offering for the first time a clear prospect of integration into the EU's structures;
  • Autonomous Trade Measures and other economic and trade relations;
  • economic and financial assistance, inter alia PHARE assistance, OBNOVA assistance, budgetary assistance and balance of payment support;
  • assistance for democratisation and civil society;
  • humanitarian aid for refugees, returnees and other persons of concern;
  • co-operation in justice and home affairs;
  • development of a political dialogue.
  • AIM?

    Bring peace, stability and economic development to the region and establish a close, long-term relationship with the EU.


    European Commission Representation Office to BiH
    Union Bank Building, 4th floor
    Dubrovacka 6
    Sarajevo - Bosnia and Herzegovina
    Tel +387 71 666 036
    Fax + 387 71 666 037

    The European Union on the Internet: http://europa.eu.int/comm/external_relations/index.htm

    This publication is available in English and Bosnian (Latin and Cyrillic alphabets). If you are interested in receiving this newsletter, please fax your request to Mediaplan in Sarajevo (fax: +387 71 206 542) or Strat&Com in Brussels (fax: +32 2 649 18 85).

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