Stability Pact Co-ordinator Erhard Busek visited Belgrade on 6-7 March 2002. After having taken office on 1 January 2002, he presented his comprehensive Stability Pact policy outline for South Eastern Europe in the framework of G17 PLUS, after consultations with Stability Pact partners. (For details, see press release) Regional ownership and the SEECP are important mechanism for Stability Pact policy issues. Busek’s visit to Belgrade was also in view of FR Yugoslavia taking over the SEECP chair.
Some Stability Pact Highlights in FRY
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- Refugee Matters (Working Table I)
The Republic of Serbia is about to adopt a National Strategy to resolve the plight of 400.000 refugees from Bosnia-Herzegovina and Croatia as part of the Stability Pact's "Agenda for Regional Action". This Agenda, adopted in mid- 2001, has fostered international and national attention and support for the refugee problem. Bilateral contacts of FRY with Croatia and BiH with the aim to improve conditions for return and the restitution of social and property rights, have greatly improved. Several agreements to these ends are being finalised or under preparation.
The Stability Pact will now seek international financial support for the implementation of the national strategies of all 3 countries concerned. Once adopted by Serbia, its National Strategy foresees support for repatriation and local integration of the large numbers who decide not to return. Housing, employment and social programs require hundreds of millions € in coming years. These funds are expected to come from national budgets, donors and private investors. At this stage, the Stability Pact provides technical advice to Serbia and Montenegro in developing and enhancing housing programs for refugees. Several donors are now financing additional return and integration programs as a result of the progress made in the region, in addition to approximately 500 mn € announced for three countries at the Bucharest Regional Conference October 2001.
- Economic Reconstruction & Free Trade (Working Table II)
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- Economic Reconstruction – Infrastructure
At the Regional Conference 25/26 October 2001 in Bucharest, FRY received a considerable amount for 3 infrastructure project packages of a total value of € 434 mn. This represented 18% of the total € 2.4 bn for 27 infrastructure projects approved and financed at the conference.
- Transport Rehabilitation — (Transport/Roads)
Lead Agency: EIB Cost: € 138 mn
- Yugoslav Railways Reconstruction Project (Serbia/Montenegro) — Transport/Railways)
Lead Agency: EBRD Cost: € 160 mn
- Emergency Power Sector Reconstruction Project — (Energy/Electricity)
Lead Agency: EBRD Cost: € 135.9 mn
FRY has signed a Memorandum of Understanding on Trade Liberalisation and Facilitation together with the other Southeast European countries on 27 June 2001 in Brussels. The major goal of the Memorandum of Understanding is to complete the network of Free Trade Agreements (FTA) in the region by the end of 2002, thereby opening the potential of a 55 mn consumer market. The agreements will be fully in line with the WTO rules and with relevant obligations of each signatory country vis-à-vis the EU. FRY has entered into negotiations with Bulgaria and Croatia. First steps in view of negotiations were undertaken with Albania and Romania, while an existing FTA with FYROM is under revision. An agreement with Bosnia-Herzegovina has been signed on 1 February 2002.
FRY, on 29 November 2001, signed a Letter of Intent together with Croatia, Bosnia-Herzegovina and Slovenia. Envisaged is (by end of 2002) an international agreement aimed to:
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- rehabilitate navigation on the Sava river and its main tributaries Una and Drina
- regulate best usage of Sava Basin water and related resources
- monitor and improve the quality of Sava water
- commonly manage flood control and disasters preparedness and prevention.
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- Small Arms and Light Weapons (Working Table III)
The efforts to reduce small arms and light weapons throughout South Eastern Europe are one of the success stories of the Pact. Such projects have already been implemented bilaterally in Albania, Moldova, Romania and Yugoslavia. Last October in Budapest, SEE Governments agreed to implement a comprehensive plan for weapons reduction. A Regional Clearinghouse, where project proposals are elaborated, activities amongst countries are co-ordinated, progress is reported and experience shared is an essential component of the plan. This Clearinghouse is established in Belgrade (by lead agency UNDP) and will open soon, probably in April 2002. The Clearinghouse clearly demonstrates the regional character of this initiative. It is also symbolic for the return of Yugoslavia as a co-operating partner with its neighbours.
- A short history of FR Yugoslavia’s integration into the Stability Pact
FRY joined the Stability Pact as a full member on 26 October 2000.
Even before the democratic changes took place in Belgrade, the Stability Pact engaged in supporting the democratic opposition and independent media in Serbia. In the so-called Szeged Process, the Pact supported townships throughout Serbia, which were governed by the then opposition of democratic forces.
A first donors co-ordination meeting for FRY/Serbia’s immediate needs for winter assistance was held in Brussels in December 2000 under the auspices of the World Bank and the European Commission and raised up to € 509 million.
As Serbia was not included in the first Regional Funding Conference (30 March 2000), a World Bank / EU Commission led special Funding Conference for FRY was held in Brussels on 29 June 2001. The pledges totalled € 1.25 bn.
On the previous day, June 28, the highest steering body of the Stability Pact - the Regional Table - held its annual meeting, also in Brussels. FRY participated for first the time as full member and agreed to participate in Stability Pact Refugee Return and Free Trade Initiatives.
A Regional Conference was held on 25/26 October 2001 in Bucharest. The Conference clearly demonstrated the continued political and financial support of the International Community to the reform process in South Eastern Europe as well as to promote a further intensification of regional co-operation between the countries in SEE. FRY received a considerable amount for 3 infrastructure project packages of a total value of € 434 mn. This represented 18% of the total of 27 infrastructure projects approved and financed at the conference.
By October 2001, FRY had re-established contacts with all neighbouring countries and with International Organisations.
What is the Stability Pact?
The Pact is a political initiative established in June 1999 to encourage and strengthen co-operation between the countries of South Eastern Europe as well as to streamline existing efforts for assisting South Eastern Europe’s political, economic and security integration in Europe. The Pact does not implement the projects, which were placed under its auspices during the First regional Funding Conference of March 2000. It is an instrument to co-ordinate and possibly accelerate the projects of all its partners, such as the European Commission, NATO and OSCE, the International Financial Institutions, the member states of the European Union, other Stability Pact members such as the United States, Russia, Hungary, Canada, Norway, Switzerland, The Czech Republic, Poland, Slovakia, as well as all the countries of South Eastern Europe and their neighbours. After the democratic changes, FRY joined the Stability Pact as a full member on 26 October 2000, while Montenegro and Kosovo were already participating before.
Under the Regional Table, its steering body, the Stability Pact has
3 Working Tables:
- Working Table I is dealing with Democratisation & Human Rights;
- Working Table II with Economic Reconstruction, Development and
Co-operation;
- Working Table III with Security (one Sub-table Security and Defence, one Sub-table Justice and Home Affairs).
So far, two Regional Conferences have taken place with the most recent one on 25 and 26 October 2001 in Bucharest. On this event, ministers and high level officials from 37 countries and 32 international organisations renewed their commitment to long term economic and social development for South Eastern Europe. A new set of 27 infrastructure projects secured donor financing of € 2.4 bn. (3 of 27 projects for FRY with volume of € 443 mn)
(For full list, see: http://www.seerecon.org/Calendar/2001/Events/src/isg_report.pdf)
At a first Funding Conference in Brussels on 30 March 2000, € 2,4 bn were raised, which translated in the so-called Quick Start Package, with a total of 244 regional projects. (No projects in FRY, as FRY did not participate at Conference) By early 2002, 94% of these projects were started, making it one of the fastest assistance packages by the international community. (For full list, see: http://www.stabilitypact.org/stabilitypactcgi/catalog/cat_descr.cgi?prod_id=73 — One Year Progress Report on the Quick Start Package.)
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