Madam Chairwoman, Mr Chairman

Allow me to join other speakers in expressing the Danish appreciation of this opportunity to discuss the Economic Recovery and Transition Programme for the Federal Republic of Yugoslavia. We also appreciate the efforts of the people who have been involved in preparing the documentation for this conference.

The basis for our discussion today is the serious economic challenges facing the Government of Federal Republic of Yugoslavia. Experience in other Central and Eastern European Countries shows that transition from plan economy to market economy can be painful but that it is also necessary for a healthy development. Denmark welcomes the important efforts made by the Government.

Political and economic reforms go hand in hand. Democratisation including respect for human rights and a strong civil society are crucial elements for building sustainable societies. Denmark welcomes the recent steps taken towards increased co-operation with the Hague Tribunal. Denmark expects and is confident that a decisive and whole-hearted effort will be continued by the authorities in Belgrade.

During the last decade Denmark’s total support to the countries of the Western Balkans amounted to approximately 335 million EURO. Since 1999 the Danish support has been guided by an Action Plan for Danish Assistance to the Western Balkans, adopted by the Danish Government in June 1999.

According to this plan, Denmark’s bilateral assistance focuses on humanitarian aid, reconstruction and transitional assistance, and long-term support towards establishing democratic infrastructures including support for democratisation, environmental efforts, efforts to improve human rights, and repatriation.

Last year, Denmark allocated approximately 10 million EURO for humanitarian interventions in Serbia and Montenegro, and additional funds were allocated for regional humanitarian programs through the UN. Only last month, the Danish Parliament approved an additional amount of approximately 5,5 million EURO for humanitarian assistance to the region, primarily Serbia and Montenegro. A short-term programme, which is still ongoing, directly supporting the reform efforts of the new Government and reconstruction in Serbia amounting to 5,5 million Euro was approved in late 2000.

Danish Humanitarian assistance to Serbia and Montenegro based on identified needs will still be available over the coming years.

Through the Peace and Stability Fund established in 1999, Denmark has provided financial and technical support to the reform process in Serbia in key areas such as judiciary, police and media. Other initiatives – ongoing or under preparation – aim at strengthening the capacity of Serbian NGOs actively addressing various aspects of the refugee problem. Similar initiatives in support of the democratic and civil society development have been initiated in Montenegro. The total assistance to the Federal Republic of Yugoslavia in 2001, provided through the Danish Peace and Stability Fund, will amount to approximately 2 million EURO.

Through the Danish Democracy Fund, an amount close to 1 million EURO has been given in support of establishing democratic institutions in the Federal Republic of Yugoslavia and for strengthening co-operation in the environmental sector, as well as for institutional capacity building.

The Danish Ministry of the Environment and Energy expects to be able to continue supporting environmental projects, in particular regional efforts. This support will focus on institution-building, environmental legislation and assistance in solving specific environmental problems.

Danish assistance to the Federal Republic of Yugoslavia will continue over the coming years in accordance with the guidelines set out in the Government’s Action Plan. Looking at the financial questions involved, it must be noted that the decision-making process is still ongoing. Subject to Parliamentary approval, however, Denmark expects that the total Danish support for the Federal Republic of Yugoslavia (excluding Kosovo) over the period 2001-2004 will be between 32 and 40 million EURO.