Given the recent events in FRY, it is our strong belief that they are moving to the right direction for the establishment of a viable and stable democratic system. In this context, the support of the international community is imperative for the maintenance of peace and the sustainable development of the whole region.

The reconstruction and recovery of the FRY should be recognised as a challenge for both parties: the FRY and the international community.

First of all, we firmly believe that mutual understanding and respect constitute the bases of a successful long-term co-operation. Both parties need to undertake mutual commitments. Under this long and very difficult process, we have to take into consideration the following factors:

b) The geopolitical position of the country underlines its significance for the political and economic stability of the whole region.

c) The necessity to support the new democratic system is of crucial importance.

d) A prolonged institutional vacuum, hence the necessity to reestablish viable and efficient democratic institutions.

e) The high numbers of refugees and displaced persons put an extra burden on the economy and society.

f) There is an urgent need for an economic-reforms programme, which will pave the way for the recovery of the country and its the rapid reintegration into the international economic system.

The international community and FRY should establish a fruitful cooperation which will be based, mainly, on two elements :

First, we are confident that the new government will put forward an economic reforms programme which will give due attention to both sustainable development and growth as well as social stability and cohesion. This programme would enable the new government to attain its objectives while at the same time creating the appropriate conditions for the International Financial Institutions to accelerate all the necessary proceedings. The fragility of the situation requires prompt action and avoidance of cumbersome procedures.

The second element consists in setting up an efficient mechanism of co-ordination among all actors of the international community. In this regard we are confident that the European Commission and the World Bank will continue to play an important role. Furthermore, International Financial Institutions as well as bilateral donors should develop a coherent approach so as to assure the success of their endeavour.

In this context, action towards the country should be flexible and on the spot. A needs' assessment together with an economic transition programme are urgently needed in order to proceed rapidly to a pledging conference that will deal with the medium and long-term reconstruction assistance.

We need to underline the specificity of the country’s situation which calls for the most careful treatment on our side. It would be very difficult for the FRY to consolidate its political stability and democracy if the donors' community is unable to support this process through a pledging donors conference. In other words, without immediate action in this direction, we will find ourselves, in 6 or 8 months time, once again at the same position as, that is trying to organize a new urgent winter plan to assist this country.

It is essential that the people of the FRY feel again master of its own future. Furthermore, the FRY should play an active role in the promotion of regional cooperation. This country is an integral part of the European family. In terms of EU policy, this means that the FRY should fully participate in the Stabilisation and Association Process. There cannot be any prospect for lasting stability in South Eastern Europe without the FRY fully on board.

Total amount : 22.66 million euros / Programme duration : 4 months

Break down:

- Food aid (contracted) : 4.2 million euros

- Medical assistance (contracted) : 0.08 million euros

- Budgetary support (contracted) : 17.6 million euros

- Other urgent programmes (contracted /being implemented through Greek NGO’s) : 0.78 million euros