The Stability Pact thanks the Bulgarian Chairmanship-in-Office for its warm hospitality and strong engagement in the important region of South Eastern Europe  and for its support for the efforts of the Stability Pact.  The Stability Pact expresses its strong interest in continuing such collaboration with the incoming Slovenian Chairman-in-Office in the coming year.

In five years, the Stability Pact has successfully moved from ad-hoc interventions to a consistent regional approach to strengthen stability and foster European and Euro-Atlantic integration in the South East European region.  This approach has generated progress in all beneficiary countries and supported regionally coordinated reform efforts in critical areas.  We appreciate the comments from the floor today acknowledging both the progress achieved in the region and the need to continue our efforts together.

We in the Stability Pact see 2005 as a year of important challenge and particular opportunity in South Eastern Europe  and count on the OSCE as a key partner in our endeavours. 

A promising -- indeed essential -- development is the region’s growing willingness to assume ownership of regional cooperation.   This can be seen in the increasing role of the South East European Cooperation Process (SEECP).

SEECP leaders are working together on the broad issues confronting the region.  They have stressed their mutual recognition of the need to work closely together for the benefit of all.  This portends important achievement in the coming year.  Still, the SEECP and the region must step up to meet commitments made and to rely less and less on the support of the Stability Pact and others from outside the region.

The launching of the Regional Forum on Migration, Asylum and Refugee matters by the SEECP and the upcoming meeting of SEECP Defence Ministers on defence conversion are examples of the close co-operation between the Stability Pact and the SEECP.

Mr. Chairman, the Stability Pact is making a concerted effort in the economic area. Economic shortcomings -- high unemployment and, in some cases, a severe lack of investment -- clearly carry political and social implications. Stimulating economic growth and attracting investment require improvements in the macro and micro-economic environment as well as in rule of law. 

The Stability Pact will push its regional initiatives on this important front with energy and great diligence.  

·         We are working to consolidate the network of 28 bilateral free trade agreements between the countries of South Eastern Europe formally into a regional free trade area and a market of 55 million consumers.

·         We are working on 53 joint infrastructure projects of regional scope -- worth four billion Euros – and many have already been completed.  A further nine projects worth more than 700 million Euros should start in 2005.

·         Negotiations are underway on a joint initiative by the European Commission and Stability Pact to establish a regional energy market -- the Energy Community South Eastern Europe -- based on a legally binding treaty, thus laying the foundation for incorporating the region into the internal European energy market.

·         Fighting organised crime and corruption is a crucial task in the region, with critical implications for political security and economic progress.   The Stability Pact Organised Crime (SPOC) and Anti-Corruption initiative (SPAI) and the SECI Trans-border Crime Fighting Centre in Bucharest -- which received a favourable assessment from the European Commission -- have worked closely to establish links not only in South Eastern Europe, but also with Interpol and key European institutions.

No area should be overlooked in our effort to promote regional cooperation.  Kosovo is a key example.  The Stability Pact has sought to integrate Kosovo into regional activities through enhanced cross border co-operation in accordance with UN Security Council Resolution 1244.  UNMIK/Kosovo now participates in more than 20 Stability Pact initiatives.

Mr. Chairman, many Stability Pact initiatives work closely with OSCE institutions and field missions in South Eastern Europe  . 

·         The appointment of Helga Konrad as the OSCE Special Representative against Trafficking represents OSCE-wide recognition of the important work done by the Stability Pact Task Force on fighting trafficking in human beings. Our cooperation will continue, since the issue remains a serious problem in South Eastern Europe .

·         The Ohrid Process for Border Management and Security, a joint effort by the countries of the region, the OSCE, the EU, NATO and the Stability Pact is moving ahead well, with the countries of the region implementing step by step the commitments made.

·         The Stability Pact’s newest core objective, parliamentary cooperation, seeks to build a parliamentary consensus in support of reform legislation associated with Pact initiatives across all three working tables.   Building the capacity of parliamentarians and staff to address these policy issues is crucial. A number of OSCE Missions play an important role in this important task through training and capacity building. We will work with others as well, including the Parliamentary Troika, comprised of the Parliamentary Assemblies of the OSCE, the Council of Europe and the European Parliament. 

·         Several OSCE Missions have used the Stability Pact’s emphasis on empowering local governments as a starting point for their own efforts to promote relevant legislation, train local government officials and deepen decentralization. The October conference in Zagreb on Local Democracy and Cross-border cooperation, organised jointly with the Council of Europe, highlighted this need and achieved a firm commitment by regional Governments on next steps.

·         Media Task Force Working Groups involve representatives from media outlets, NGOs and government and are coordinating their activities closely with the OSCE Representative for Freedom of Media and Missions in the field.

I would like to conclude by stressing again that shared and comprehensive concepts of security make the OSCE and Stability Pact strong, natural partners.     On behalf of Dr. Busek, Special Coordinator of the Stability Pact, and all of us working within the framework of the Stability Pact, let me say that we are looking forward to continued close cooperation with the OSCE and further progress toward full regional implementation and ownership of the Pact‘s cross border initiatives in the year ahead. 

Again, let me state our appreciation to Foreign Minister Passy and extend our best wishes to the incoming Chairman in Office from Slovenia  , Foreign Minister Rupel.

Thank you for your time and attention.