General

Enhanced regional co-operation (integral part of the Stability Pact mandate and qualifying element for EU-membership) has improved considerably over the last two years and is by now an established element of regional intergovernmental dialogue. The ownership of this process has gradually shifted to the countries of the region. It has found expression in the revitalised Southeast European Co-operation Process (SEECP), in the regionally and internationally well orchestrated reaction to the crisis in FYR Macedonia, as well as in many regional project proposals and concrete initiatives such as the negotiation of bilateral free trade agreements, an Investment Compact designed to promote private investment in the region, and programs to fight corruption, organised crime and terrorism.

All projects in the SP framework are administered thru implementing partners, many of which are members of the Pact, such as the International Financial Institutions. Although not a fundraising mechanism, the Pact still has secured funding for projects worth EURO 5.4 billion at two Regional Conferences. In March 2000, EURO 2.4 bn were raised in Brussels to fund 244 projects of the Quick Start Package. By March 2001, 82% of projects were started, which is comparatively fast for international aid. By early 2002, 97% of projects had begun. At a second Regional Conference (October 2001, Bucharest) an additional EURO 3 bn was committed, mainly for infrastructure (EURO 2.4 bn) and refugee issues (EURO 0.5 bn). According to the SP mandate, these finances are used to support projects of two, three or more countries, thereby engaging the governments in a process of regional cooperation. As these amounts are limited in their ability to address the huge rebuilding efforts needed in SEE, this seed money is spent in strategic projects with a view of mobilizing vital private investment and facilitating reforms.

First Parliamentary Conference of EU and Stability Pact countries (17-18 September 2001, Brussels) established close working relationships between European Parliamentary institutions on Stability Pact matters. The European Parliament and the Parliamentary Assemblies of the OSCE and of the Council of Europe had agreed in June 2001 to sponsor the parliamentary dimension of the Stability Pact, covering all aspects and all Working Tables of the Stability Pact by creating a Parliamentary Troika.

The admission of Federal Republic of Yugoslavia into the Stability Pact on 26 October 2000 was followed by its gradual integration in the structures of the Pact’s Working Tables and their subcomponents. Prior to the democratic changes in Belgrade, the Pact promoted support to the then opposition-governed cities through the Szeged Process as well as material assistance to the independent media in Serbia.

Working Table I - Human Rights and Democratisation

On refugee returns, under the auspices of the Stability Pact, Croatia, Bosnia and Herzegovina and Yugoslavia agreed to jointly resolve the fate of the more than 1.2 million refugees and displaced persons. On 27 June 2001, a Stability Pact brokered agreement on regional return, the "Agenda for Regional Action" (AREA) was launched. Including international financial support, this roadmap provides for a comprehensive framework and timetable for resolving such issues as housing, property, citizenship, and economic reconstruction in the coming 2 to 3 years. In 2001, over 100'000 have returned to their former places of residence in BiH and Croatia alone, an all time high since Dayton (1995).

The Charter for Media Freedom was adopted in Thessaloniki June 2000. Through this initiative, participants agreed to ensure the highest international standards of freedom of expression. They undertook to launch a process of internal review and dialogue ("public debate") to determine reform requirements and to adjust the situation in their countries to internationally acknowledged norms and standards. The Charter for Media Freedom is a landmark document. It provides a common, shared set of practices and points of reference for media reform and development in the countries of the region. So far, National Working Groups have been established or revitalised in seven countries.

As long as Yugoslavia remained excluded from the Stability Pact, the Szeged Process (named after Hungarian city) was designed to help opposition-governed townships and support independent media in Serbia and Montenegro. In the meantime, the Szeged Process has been enhanced and contains, as main elements, city and region partnerships and an extension beyond the original beneficiary Yugoslavia to FYR of Macedonia, Bosnia-Herzegovina, and Albania.

Gender equality has become a part of the mainstream political agenda in all SP countries, where government and civil society women’s groups joined together. The percentage of women elected in national parliaments has increased, as well as the percentage of women appointed to the highest executive positions, where the current regional average percentage of women MP’s is 11% and rising. For the first time gender equality mechanisms were established in Bosnia-Herzegovina, Bulgaria and Serbia / Vojvodina (FRY).

Working Table II - Economic Reconstruction, Development and Co-operation

A Regional approach to infrastructure projects has been solidly established in South Eastern Europe over the past 2 years with the Quick Start Package acting as a catalyst. Strategic studies in each main infrastructure sector have been developed. These studies will form a common and consensual working basis for all partners, Financial Institutions, donors and countries of the region. A clear and transparent procedure for promoting projects of regional interest has been created and is chaired by the European Commission.

A Memorandum of Understanding on Trade Liberalisation and Facilitation by Southeast European countries has been signed on 27 June 2001 in Brussels. The major goal of the MoU is to complete the network of free trade agreements in the region by the end of 2002, creating a market of up to 55 million consumers. The agreements will be fully in line with the WTO rules and with relevant obligations of each signatory country vis-à-vis the EU.

The Investment Compact, adopted by the region in early 2001, provides a regional forum to identify and remedy shortcomings regarding macroeconomic environment in order to make the countries of the region more attractive to investors. Apart from an intense policy dialogue, it includes a comprehensive package of flagship initiatives aimed at improving specific aspects of the economic framework in a regional context.

Working Table III - Security and Defence Issues

In order to foster a broad security dialogue and promote arms control and confidence building measures, the Stability Pact partners have established a Regional Arms Control Verification and Implementation Assistance Center (RACVIAC) in Zagreb with eighteen participating countries. A regional action plan for reducing small arms and light weapons has been approved in November 2001.

Support of Defence Reform and mitigating the human consequences of defence rightsizing is a good example of synergy created by the Stability Pact between specialised agencies and the regional countries, in this case NATO, the World Bank, Bulgaria and Romania. Bulgaria and Romania, with NATO providing expertise, set up retraining programs for redundant military officers to help reintegrate them into the civilian workforce. About 5000 military personnel underwent such training and the program is being expanded to other SEE countries.

The Stability Pact Anti-Corruption Initiative, relying on high-level political commitments, assists countries of the region to enact needed legislation, build up institutions and develop civil society components, to fight corruption. After being formally adopted in February 2000, governments committed to implement the Initiative are Albania, Bosnia and Herzegovina, Croatia, FYR of Macedonia, Romania and FR of Yugoslavia. They will benefit from co-ordinated technical assistance programmes.

Asylum and migration, involving either the return of a country’s own nationals or future asylum-seekers or migrants from abroad need a truly regional response. The Asylum and Migration Initiative of the Pact is about to establish national action plans and has created five Country Teams to assist in building up the legal framework and the capacities to deal with the issue, including aspects covering the trafficking of human beings. A permanent support unit/secretariat has been established in Vienna.