</<P class=bodytextpressrelease>Since the creation of the Stability Pact (June 1999), fYR Macedonia has been a full and active participant in the three Stability Pact Working Tables, aiming at long-term stabilisation through enhancing democratic consolidation, economic prosperity and security

Working towards the fullest possible integration of the countries of Southeastern Europe into the Euro-Atlantic and European political and economic mainstream, the Stability Pact is committed to complement the Stabilisation and Association Process (SAP) as the European Union’s strategy towards this region. FYR Macedonia was the first country with which a Stabilisation and Association Agreement has been successfully concluded on 9 April 2001.

The outbreak of hostilities early 2001 was a clear setback which impeded certain Stability Pact activities in fYR Macedonia. In view of the fact that the Stability Pact has not been configured as a crisis management mechanism, but as a long-term conflict prevention tool, its mediating role during the crisis has been limited. Nevertheless, Special Coordinator Bodo Hombach was instrumental in facilitating the fYR Macedonian all-party dialogue on inter-ethnic relations and reforms in March 2001. Following agreement on institutionalising such a dialogue, the EU was invited to moderate this process. Based on the conclusion of the Framework Agreement in Ohrid, the Stability Pact now supports its implementation.  

At the First Regional Funding Conference in March 2000, approximately 100 million Euro were allocated to infrastructure projects in Macedonia. Another 40 million Euro were pledged for regional projects that support democratisation and human rights in SEE, including fYR Macedonia. At the Regional Conference in Bucharest, 25-26 October 2001, fYR Macedonia secured an additional 60 Million Euro in infrastructure funding.

Following are listed the major Stability Pact activities in fYR Macedonia.

WORKING TABLE I

Inter-ethnic relations. The Stability Pact supports fYR Macedonia’s attempts to improve inter-ethnic relations, focusing on legislation review and implementation. The non-discrimination legislation review by the Council of Europe aims at recommending action to bring legislation and practice in line with international standards. This activity runs in parallel with the implementation of the Framework Agreement concluded in Ohrid. Projects to support the implementation of existing standards, including the “Framework Convention for the Protection of National Minorities” and the “European Charter for the Protection of Regional and Minority Languages”, promote non-discrimination in the political processes and institutions as well as the use of minority languages as guaranteed by international conventions. 

Media. A Media Working Group (MWG) has been established in the framework of the Stability Pact Media Task Force. The MWG prepared an action plan, with particular attention to the electronic media and necessary amendments to the Broadcasting and Public Information Laws. A project for redrafting media legislation, initiated by the MWG, is underway. FYR Macedonia benefits from various regional projects concerning legislation, journalistic professionalism, training and regional cooperation between media organisations. Projects also envisage to improve networking among media and journalists of different languages and ethnic groups. 

Education and Youth. The Stability Pact promotes cultural and education programs to children, youth and adults with particular attention to promoting inter-ethnic relations and enhancing tolerance and conflict resolution skills. For instance, the Pact supports the children's TV program “Nashe Maalo” in Macedonian, Albanian, Turkish and Roma as a pilot-model of educational TV broadcast dealing with inter-ethnic relations. Activities for adult learning are a collective action between the government, the academic community and professional associations and include teaching methods, research, policy, administration, and education management.  

Gender. The Gender Task Force i.a. conducts programs targeting women candidates standing for local elections, and increasing women’s representation through seminars and campaigning. Leaders of twelve major political parties signed a declaration to promote women candidates for mayoral elections. Following these activities, the number of women councillors increased from 105 to 164 mayors nation-wide. For the first time three women mayors were elected and one of them belongs to the Albanian community. In June 2002 the Parliament enacted 30% minimum quota for men and women on all party lists. An Equal Opportunities Act is under preparation. In 2002, the Task Force implemented a training programme for more than 200 women within 10 parliamentary groups as well as a project on conflict prevention and post-conflict dialogue in FYR Macedonia. The Macedonian women’s lobby is now in action to get women on eligible places on the lists, while the project aimed at getting women to vote and putting an end to family voting has just been started. It will be finalized before the national elections in September 2002. 

Parliamentary Cooperation. FYR Macedonia hosted the Conference of Presidents of Parliaments of SEE in March 2001, and actively drafted the “Procedural Framework for Parliamentary Cooperation” which was adopted by all participants. The Stability Pact Quick Start package supports training and exchange programmes for parliamentarians and parliamentary staff with four projects in which this country participates.  

WORKING TABLE II

Trade. From the outset, fYR Macedonia has chaired the Stability Pact Working Group on Trade Liberalisation and Facilitation. The work of the group led to the signing of the trade Memorandum of Understanding in June 2001. Its implementation is now under way. The aim is to create a free trade area in seven countries (plus Moldova, which has associated itself to the process) with a combined 55 million consumers by end of 2002. FYR Macedonia has concluded FTAs with five of its neighbours and is currently in negotiation with Romania. As chair of the Group, fYR Macedonia has played an important role in getting Southeast European countries to negotiate the MoU and now to live up to their commitments. 

Investment Compact. FYR Macedonia has been an active member of the Investment Compact programme since its inception, in particular through two Regional Flagship Initiatives: Small and Medium-sized Enterprise (SME) Support and Competition Law and Policy.  

Enterprise Development and Small and Medium-Sized Enterprise (SME) Support. At the request of the fYR Macedonian Ministry of Economy and the European Commission, the OECD and the EBRD carried out a review of small and medium-sized enterprise development and entrepreneurship in fYR Macedonia. This “Country Assessment and Action Plan (CAAP)” contains recommendations for priority action focusing on capacity building of institutions, improving the business and fiscal environments, and financial capacity building. This report is the result of an intensive process of consultation, involving also the fYR Macedonian Ministry of Economy, the National Enterprise Promotion Agency, the Business Advisory Centres, private sector representatives, NGOs, and local financial institutions. The EC has an important SME programme in fYR Macedonia and has been closely involved in the preparation of the report and in the elaboration of its policy recommendations. The report’s arrival is timely: the SME sector is expected to play a pivotal role in the country’s economic recovery.  

Competition Law and Policy. FYR Macedonia is, together with Slovenia and Bulgaria, one of the organising partners of a Regional Flagship Initiative (RFI) on competition law and policy. This initiative seeks to improve the capacity of competition authorities, introduce regulatory and structural reforms, and develop co-operation among competition authorities in SEE and OECD members. As fYR Macedonia is still in the process of establishing an independent competition authority, this programme should enable this country to draw on the experience of OECD experts and of other countries, such as Slovenia and Bulgaria, that have already made substantial progress in this area. 

Private Sector Development. FYR Macedonia benefits from EBRD Programs, for which donors and IFIs pledged more than 350 million Euro at the Regional Funding Conference in March 2000. All in all there are 9 programs, among others the Trade Facilitation Programs (by the EBRD); technical and capacity building assistance to SMEs by IFC South Eastern Europe Development (SEED); micro loaning through Micro Enterprise Banks (MEB), and Political Risk Guarantees.  

Environment. FYR Macedonia held the co-chair of this Task Force from March 2000 to September 2001. One project by UNEP, the "Post War Environmental Assessment", has been completed. Three other projects concerning fYR Macedonia have started ("Membership and Co-operation with the European Environment Agency"; "Development of National Information System"; "Development of a Strategy for the Implementation of the Arhus Convention") and funding has been secured for another project ("Protection of the River Varda").  

Infrastructure. (See Infrastructure 46 Project List – World Bank / European Commission for details) The Stability Pact supports the following infrastructure projects: 

§ Upgrading of the existing infrastructure on the Blace border crossing between fYR Macedonia and Kosovo (FRY) with the aim to alleviate existing congestion problems (lead agency European Commission / project costs 8.5 million Euro);  

§ Improvement of the Skopje Bypass, a critical section of corridor VIII around the north of the Macedonian capital Skopje, through construction of a new dual 2-lane carriageway motorway section (lead agency EIB&EBRD / project costs 50 million Euro); 

§ Improvement of Demir Kapija-Gevgelija section of the corridor X North-South route near the border with Greece, which is a main link between the region and the European Union (lead agency EIB / project costs 32 million Euro); 

§ 3rd phase of upgrading Negotino - Demir Kapija section of E 75 Corridor X, (lead agency European Commission / project costs 11 million Euro); 

§ Municipal & Environmental Action Programme (“MEAP”) consisting of the rehabilitation of water supply and wastewater infrastructure together with a corporate development programme for the municipalities of Kumanovo, Ohrid / Struga, Stip, Strumica and Veles (lead agency EBRD / project costs 57.7 million Euro€).  

Due to the tense security situation, some delays on infrastructure projects in fYR Macedonia resulted.

FYR Macedonia participates in the E-SEE-initiative (attempting to establish inter alia digital networks among government structures and businesses), and participates in the Social Cohesion Initiative focusing on social protection, health, and social dialogue.

WORKING TABLE III

FYR Macedonia is a full and active participant in the initiatives undertaken by Working Table III, including Mine Action, the Disaster Preparedness and Prevention Initiative, combating the illegal proliferation of Small Arms and Light Weapons, and the Fight against Organised Crime and Corruption. Following are examples of its involvement:

Anti-Corruption. As a member of the Anti-Corruption Initiative (SPAI), fYR Macedonia has participated in the assessment phase and is committed to the Initiative’s Action Plan. It is actively implementing new measures to fight corruption and has ratified and signed several international conventions. The country has begun a process aimed at joining multilateral legal instruments containing anti-corruption related provisions, promoting good governance, strengthening the rule of law, promoting transparency and integrity in business operations and developing an active civil society. Projects promoting expert advice on drafting legislation are underway. 

FYR Macedonia is involved in SP initiative on the Fight Against Organised Crime. In that respect Macedonia’s recent ratifications of both the European Convention on Extradition and the Convention on Mutual Assistance in Criminal Matters are important.

Migration and Asylum issues. FYR Macedonia participates in the Migration and Asylum Initiative (MAI), which aims at facilitating legislative reform and capacity building based on a National Action Plan. The Plan provides for partnerships between SAP countries, individual EU Member States, EU candidate countries and other Stability Pact participants. FYR Macedonia is a member of the country team comprising Sweden as lead country with Norway and Denmark, and Bulgaria. It also contributes to the policies being developed by the Trafficking Task Force. 

Police Cooperation. Within the regional context of the Stability Pact, fYR Macedonia has been a full and active participant in the Police Cooperation initiative. It participates in the training modules on Trafficking in Human Beings, Migration and Asylum, Trafficking in Drugs, Police Management and other priority areas.  

Security Sector Reform. FYR Macedonia is a full and active participant in the Ad Hoc Groups on Security Sector Reform and on Terrorism issues. 

REGIONAL COOPERATION

Within the Stability Pact, fYR Macedonia has contributed to giving life to regional cooperation as an indispensable component of the European integration process. For instance, it has played a supportive role in the Southeast European Cooperation Process (SEECP), a valuable and unique forum for consultation and development of common positions on priority regional concerns. During fYR Macedonia’s Presidency of the SEECP (Feb. 2000-Feb. 2001) the regional Economic Action Plan was endorsed at the February 2001 Skopje Summit. The country also presided over the admission of the Federal Republic of Yugoslavia into the group, a milestone on the way to using the full potential of genuine regional cooperation. By now, the SEECP is representing the region, through its present chair Yugoslavia, in the Brussels based Informal Consultative Committee on Stability Pact matters, comprising EU Commission, EU Council Secretariat and EU Presidency, SEECP and the Special Coordinator of the Stability Pact.