By Günter Burghardt, Director General DGIA European Commission

Despite the difficult circumstances in Bosnia and Herzegovina, notably due to the consequences of the Kosovo crisis (40.000 refugees from FRY arrived in the country which already has to cope with 800.000 internally displaced persons), the European Commission and the World Bank have decided, after specific recommendation of the steering board of the Peace Implementation Council, to proceed with the organisation of the fifth donors conference for Bosnia and Herzegovina.

In times when all eyes are focused on the dramatic situation in Kosovo and the neighbouring countries, this is a clear sign that reconstruction and stabilisation in Bosnia and Herzegovina is still considered as crucial by the main donors. But it also means that Bosnia and Herzegovina should speed up progress, in particular with regards to the institutional framework, the refugee issues and the reform of the country's devastated economy.

The European Commission announced a 1 billion euro contribution to the international reconstruction effort for the period 1996 to 1999, and it will live up to its promises. Since the signing of the Dayton/Paris Peace Agreements, the European Union has been in the forefront of helping Bosnia and Herzegovina along the road to consolidation of peace, democracy and a viable market economy. It's substantial efforts will continue throughout 1999, and will be mainly focused on return of refugees and displaced persons, the rule of law as well as economic regeneration.

This document, prepared by the Commission services in early 1999, provides an overview of the 1999 orientations of the European Union's Phare and Obnova programmes, which are the main instruments for reconstruction in Bosnia and Herzegovina, and for which 146 million euro have been earmarked.

This will be supplemented with the contribution of the European Community Humanitarian Office (ECHO, 56,4 million euro for 1999), the specific funding for the Customs and Fiscal Assistance Office (CAFAO, 9 million euro for 1999) and the EC's budgetary support (30 million euro for 1999). This means that EC assistance to Bosnia and Herzegovina in 1999 will exceed 240 million euro.

1999 PHARE AND OBNOVA - Table of Contents  |  Next: Introduction