Statement given by Mr. Markus Lyra,
Political Director, MFA of Finland in Session 1

- The events of the 11 September have affected considerably the international relations and have reshaped the international agenda.

- This should - by no means - decrease our attention and commitment vis a vis the Balkans. The Balkans continue to be our priority, and, despite new challenges the Balkans continue to stay on our agenda.

- It is worth noting that while addressing the deep root causes of international terrorism we are addressing the same problems that have destabilized the Balkans: weak institutions, failed states, lack of democracy and rule of law, lack of perspectives. While building up democratic and accountable state institutions, rule of law, more equal opportunities we are undermining the ground for political extremism and, indeed, for terrorism.

- Although there is no direct link between the recent terrorist events in New York, Washington and Pensylvania and the Balkans we are eager to hear of the eventual regional measures the countries of the South Eastern Europe are taking against terrorism.

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- The Balkans have been in the focus of the International Community now for more than a decade. A lot has been achieved. Democratically elected governments are in power in each of the countries of the region. Neighbourly relations heve improved. Important reagional cooperation initiatives have been launched, interalia, the Memorandun of Understanding on Trade Liberalisation and Facilitation and the Agenda for Regional Action on refugee return. (The two last thanks to the Stability Pact.)

- Many interlocutors have been dealing and continue to deal with the Balkans. In view of the multitude of actors involved in stability building in the Balkans there is a clear need to streamline the participation of the International Community. This need is highlighted in the new situation. It also calls for the countries in the region to assume a greater share of the responsibility for the future of the region.

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- A self-sustaining stability requires increasing regional co-operation. Here the Stability Pact can offer added value and be complementary to other initiatives, notably to the EU Stabilisation and Association Process, which remains the principle tool of the European Union in bringing stability to the region. While the Stabilisation and Association Process is basicly a bilateral process between the EU and the Western Balkan countries, though it has a regional dimension, the Stability Pact is better suited to promote regional cooperation.

- The Stability Pact can also support indigenous regional efforts such as the South East European Co-operation Process, whose activities deserve our full support.

- We welcome the decision of the Regional Table to focus the work of the Stability Pact on fewer priority sectors. We also welcome the effort of the Stability Pact secretariat, of the Working Tables and Task Forces to elaborate regional strategies, work programmes and action plans based on these strategies.

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- Finland continues to invest considerably in the stability of the Balkans as she has done in the past. In the last two years in 1999-2000 the bilateral and regional disbursments have ammounted to around 35 million Euros. This year Finland will disburse around 10 million Euros including her support to the Stability Pact projects.

- In the continuation Finland will concentrate, within the Stability Pact, or as a follow-up to previous Stability Pact activities, on the following sectors: education and youth, media, police training, anti-corruption, and when feasible in the action against trafficking in human beings. On top of that we will continue to provide bilateral support in next years. The total amount to be disbursed will remain around 10 million Euros annually.

- Furthermore, we are exploring the possibilities to transfere our expertice to the region in those sectors where we think our own experience might contribute to the institution building as we did together with the Nordic Council of the Ministers in a recent seminar in Belgrade on the nordic cooperation model.