Brussels, 9 December 2003

(Check against delivery) 

Mr Chairman,

It is my pleasure to appear before you at this EU-Western Balkans Forum in my capacity as the Special Coordinator of the Stability Pact.  

We are reaching the end of year 2003, a year that has been crucial for the countries of South Eastern Europe.   The region, with next year's enlargement the obvious next area to be integrated into the Union in due time, has set course towards closer integration into European and Euro-Atlantic institutions. The Thessaloniki EU-Western Balkans Summit was a watershed in this respect.  

The Stability Pact has streamlined its efforts over this year to be in a better position of supporting the Thessaloniki Agenda within its mandate of fostering regional cooperation and its focus on strengthening true regional ownership - in full complementarity to the SAp. The Regional Table in Tirana last week - excellently hosted by Albania - expressed clear support for our work along the core objectives and highlighted two areas where all of us should redouble our efforts: in addressing the improvement of the economic environment and in stepping up the fight against organised crime and corruption.  

Regional Cooperation is a cornerstone of European Integration. Considering that wars were fought in this region only a few years ago - coming together to find joint solutions to common problems is not the most obvious political choice for governments struggling with many transition problems at a time. However, this is just what we are witnessing today. The apologies exchanged between the Presidents of Croatia and of Serbia and Montenegro, respectively, and subsequently the apology by Serbia and Montenegro towards Bosnia and Herzegovina are important signs that reconciliatory tones are possible options for state actors in the region of today.  

This is not to say that everything is fine. In fact, we are far from that point. But regional cooperation, facilitated and supported by the Stability Pact, and across the line between SAp and candidate countries in the region as well as with Moldova, has become a practical reality, and this should be noted. Let me give you a few examples:

The Stability Pact Trade Ministerial in Rome in November has concluded the network of free trade agreements and also – as requested in Thessaloniki – opened the way for discussions on streamlining the FTAs to a degree that will establish a free trade area in South Eastern Europe;

The MoU on the Regional Energy Market, expanded to the gas sector yesterday in Athens, will fulfil another requirement mentioned in the Agenda, and will pave the way for negotiations on a legally binding treaty, essential to attract investment into the energy sector;

Regarding the crucial area of fighting organised crime and corruption, SEECP and the Stability Pact Initiative for the Fight Against Organized Crime (SPOC) have jointly organized two Ministerial meetings in order to give input by the region to the preparations of the EU-Western Balkans Justice and Home Affairs Ministerial here in Brussels on 28 November.

In all these undertakings, regional ownership is essential in order to make reforms and changes sustainable and to enhance their impact. It has been my policy from my first day in office, that the role of the Stability Pact should be to initiate, develop and monitor processes and subsequently hand them over to the region where and when feasible.  In this respect, I would like to highlight once again the important role of the South East European Cooperation Process (SEECP) as an emerging 'voice of the region'.  But let us not forget that a successful regional ownership strategy requires active participation by regional governments and indeed also commitment on our side to let them work out proper solutions living up to EU standards.  

Mr Chairman,

Please allow me to turn your attention to the fact that the South East European countries continue to face severe economic difficulties such as high unemployment and lack of investment. Ensuring sustainable economic development is vital for continued progress in the region. The region has gone through a rapid change and is now paying the social costs for transforming their economies and societies – a transformation that needs support. I believe there is an urgent need to improve the business environment in order to create more jobs. Young people must be able to see a future in their own country. The Stability Pact will certainly focus more on these areas through the Stability Pact instruments addressing the various preconditions for economic development, such as Business Advisory Council, but this is an effort we must undertake altogether.

Also strengthening the capacity of local authorities in border regions can foster economic growth and social development. Much work still needs to be done at grass-roots level to enhance contacts across borders. In this respect, creating sustainable solutions for refugees, IDP’s and returnees are crucial for prosperity and social stability. Also the implementation of sound media standards will contribute to this.

The fight against organised crime and corruption is the last point I would like to mention with respect to how the Stability Pact can support and complement the SAp. Concerted action is necessary in this field.  Clearly, organized crime is an international phenomenon and mere national remedies are obsolete. We must make full use of all regional instruments available, if we are serious in our challenge to the criminal networks operating in South Eastern Europe and beyond.  At the EU-Western Balkans Forum JHA Ministerial two weeks ago, I proposed to the SEECP to launch a campaign to fight organised crime and corruption. What I meant was a concrete way of increasing cooperation and implementation of the political and legal commitments made in the past five years. This is a priority for which we should mobilize all actors, regional, EU and international - an important example of practical transatlantic cooperation - and the Pact is ready to play a role within its mandate to making it happen.

Let me conclude by thanking the Italian EU Presidency for all its efforts and support during the second half of this year. The solution that was found - with the crucial support by the European Commission - for a sound financial basis for the Pact should allow for an even stronger focus on our work in support of South Eastern Europe. Let me reassure you that I remain fully committed to continuing the EU-Western Balkan dialogue in the same fruitful and constructive spirit as today.  Thank you for your attention.