In the course of the past one and a half years and as a result of the joint efforts undertaken by the Government of Hungary, the City of Szeged and the Office of the Special Coordinator of the Stability Pact for South Eastern Europe, the Szeged Process has become a significant and dynamic element of the Stability Pact. Democratic forces in the Federal Republic of Yugoslavia as well as actors of the international community highly appreciate its significance and achievements, as well as its substantial contribution to the democratic changes that have taken place in the FRY. The 3rd Szeged Conference welcomed the Special Meeting of the European Council in Stockholm, which also addressed the situation in South Eastern Europe. The Conference confirmed that the renewed Szeged Process, which has become an integral part of the Stability Pact, continues to contribute efficiently to the efforts, particularly those of the European Union, to stabilise the region. Participants at the conference concluded that the Szeged Process should be redesigned and widened in order to adapt to the new situation that has emerged in the region. It should be opened to all countries in South Eastern Europe that wish to participate. Hungary and the Council of Europe have agreed to be lead partners. This new, enhanced Szeged Process will have three main elements. Partnerships between towns and regions have proven to be a most effective way of directing assistance and promoting sustainable co-operation. The system of city-to-city partnerships within SEE and between cities in SEE and other countries should be further expanded. In addition to the Federal Republic of Yugoslavia, Macedonia, Albania, and Bosnia and Herzegovina should be given particular attention in the further development of the Szeged Process. Transfrontier co-operation – Euroregions – can serve both as a tool of conflict prevention and as an instrument of community development. The objective should be to enhance co-operation in existing, and establish new, Euroregions in SEE. A major effort is needed to train local government personnel to manage their affairs effectively, provide services efficiently and develop a dialogue with the local population. The plan of the Hungarian Ministry of Foreign Affairs and the City of Szeged to establish a transition training centre at the University of Szeged should make an important contribution to this effort. In this spirit, the “Chance for Stability Foundation” should continue to provide assistance to the local governments in the region. The 3rd Szeged Conference welcomed the fact that the Government of Hungary has granted an additional 200 million HUF to this Foundation to assist the implementation of the above objectives. The enhanced Szeged Process intends to make a substantial contribution to the implementation of the goals and objectives enshrined in the (Stability Pact Working Table 1) Action Plan of the Task Force on Good Governance.