The Regional Table of the Stability Pact, its highest steering body, concluded that there is substantial progress in Southeastern Europe on reforms and regional co-operation, despite the grave concerns regarding the crisis in FYR Macedonia. "Only some years ago the region as a whole was unstable; today we have remaining pockets of instability, but intergovernmental dialogue and an orchestrated policy making process based on regional co-operation is established", Stability Pact Co-ordinator Bodo Hombach concluded. The Regional Table set a clear course toward the second Regional Conference, to be held in Bucharest on 25-26 October 2001. It is seen as an opportunity for continuing the successful approach of reforms in the countries of Southeast Europe in combination with assistance. Two important accords on Trade Liberalisation and Refugee Return, reached yesterday, were particularly welcomed in this context. Moldova was admitted as full participant to the Stability Pact.

In the light of recent destabilising events in Southeast Europe, the Regional Table discussed options for enhanced conflict prevention. Although the Stability Pact is by its very design not a crisis intervention tool, it was stressed in the discussion that the Pact’s instruments, especially of Working Table I (Democratisation and Human Rights), and Working Table III (Security Issues) will have to be applied with a strong emphasis on interethnic dialogue and conflict resolution.

The Regional Table lauded two accords reached on 27 June on Trade Liberalisation and Refugee Return. Special Coordinator Hombach referred to these developments as typical examples on how the Pact facilitates practical progress in the region. Seven countries (Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Romania, FYR Macedonia and Yugoslavia) signed a Memorandum of Understanding to introduce a comprehensive network of free trade agreements by the end of 2002. At least 90% of goods will be traded free of tariffs, tapping the potential of a market of 55 million consumers. Moldova declared its intention to accept these obligations as well. Furthermore, Bosnia-Herzegovina, Croatia and Yugoslavia joined forces to tackle the fate of the still remaining 1.2 million refugees and displaced persons in their countries in a series of combined bilateral measures, including housing, property, pensions and return assistance.

The second Regional Conference in Bucharest on 25 - 26 October 2001 was welcomed as an opportunity to further expand the successful approach of reforms by countries in Southeast Europe in combination with assistance by the international community. Participants also stressed the importance of the Funding Conference for Yugoslavia on 29 June 2001 as a basis for the implementation of necessary reforms in Yugoslavia.

After the successful implementation of the Quick Start Package, with over 80% of its 244 regional projects started within the promised one-year deadline, the Regional Table adopted a Strategic Framework with key priorities. The promotion of a Euro-Atlantic integration for all countries of the region, an enhanced conflict prevention and regional co-operation were adopted as the guiding principles of the Stability Pact’s three Working Tables. Priorities of Working Table I (WT I - Democratisation and Human Rights) will include refugee issues, media, interethnic relations and cross-border co-operation as well as education and youth. For WT II (Economic Reconstruction) priorities are trade liberalisation, fostering private investment and regional infrastructure and environment. WT III (Security, Defence, Justice) will strongly focus on arms control and security sector reforms, on mine action and small arms reduction, disaster preparedness and prevention, fight against corruption and organised crime, migration and asylum as well as law enforcement and institution building. The Regional Table mandated the Special Co-ordinator, together with the World Bank and the European Commission, to prepare the Regional Conference in Bucharest reflecting these priorities.

The Regional Table admitted Moldova to the Pact. President Vladimir Voronin addressed the Table in the morning. The Council of Europe Development Bank was also admitted to the Pact as a facilitator. This bank focuses on the financing of social initiatives.

The Regional Table appointed Mr. Alexander Rondos (Greece) as new Chairman of Working Table I (Democratisation and Human Rights) and thanked outgoing chairman Mr. Panagiotis Roumeliotis for his efforts on behalf of the Stability Pact. Upon the recommendation of the EU, Mr. Per Sjoegren was approved as Chairman of the WT III (Sub-table on Justice and Home Affairs). For the second half of 2002, the Working Tables will also have new co-chairs. In the case of WT I, it will be FYR of Macedonia, for WT II Bosnia-Herzegovina and for WT III Hungary.