From Stability to Integration: South Eastern Europe Taking Ownership of the Regional Co-operation Agenda
ROLE OF CROATIA
Ladies and Gentlemen,
I would like to thank Mr Baotic and his team for organising this Forum on a topic that is very timely – what is the role of Croatia in the 21st century. As Special Co-ordinator of the Stability Pact for South Eastern Europe I will address the issue of the role of Croatia in the 21st century in a wider context of its relations with the EU and with their neighbours – I understand this is a topic that is both gathering increasing importance on the European political agenda and at the same time causing controversy in some quarters.
What is regional co-operation and why is it important in the context of European integration?
Today it might seem to some as a distant memory, but the violent conflicts in the Western Balkans have left more scars than appear on the visible surface: while we cannot and must not forget thousands of people who have died in the wars and must ensure that those responsible for these atrocities face justice, whether in The Hague or in front of national courts, we must also reconnect the peoples of South Eastern Europe. This is what regional co-operation is all about. I don’t want to call it reconciliation, because it is a very complex word, but co-operation on very practical issues, which will bring people together step by step. Before the war, very natural relationships existed between all the people of the region, trading, exchanging ideas, addressing common problems… And the war cut these links, which need to be recreated in order for South Eastern Europe to move ahead.
In 1999, the Stability Pact was mandated to re-establish these broken links.
Seven years on, we see a mature region, in which regional co-operation is placed highly on national political agendas. There is an increased dynamism in relations between the governments in South Eastern Europe. We see companies taking full advantage of regional free trade with the result of intra-regional trade doubling over the past few years. We see common approaches to addressing difficult issues such as the fight against organised crime. We see the exchange of best practices in the area of migration. The Energy Treaty has created a regional electricity market consistent with EU standards. Four countries have formed the Sava River Commission to manage the economic and environmental issues of this important basin. To summarise – the relations between the countries in the region are – if I can put it this way – normalising.
These examples manifest that the region has matured and that the relations between the countries are – in most areas – being based once again on mutual understanding and trust. Take it from a person who spends most of his time talking to people in the region - and not only politicians: the importance of regional co-operation is better understood today than it was a few years ago.
So why is regional co-operation necessary?
Firstly, it is a necessity in South Eastern Europe in itself – quite a few issues, from fighting organised crime, to attracting investments, to strengthening disaster prevention, can only be addressed on a regional basis. To give you an example – a foreign investor will not be interested in investing into a country with a market of only 2 million consumers but a market of 55 million consumers, which is currently being established with the amendment and enlargement of CEFTA, also makes investments here in your country much more attractive. And also many of our international partners, such as the International Financial Institutions, are starting to look at the region as a whole and not into each of the individual country, taking a regional approach to their programming.
Secondly, regional co-operation is both a prerequisite and a tool for the European integration of SEE. To put it differently – it is one of the criteria of EU and NATO membership, as the two organisations want to take in only those countries that show maturity in relations with their neighbours – regardless of how painful memories of recent events might be.
However, regional co-operation should not be mistaken for a substitute for EU integration. Since regional co-operation is the basis the EU itself is built upon, it is also a condition for the further integration of South Eastern Europe into the EU. Regional co-operation should thus be seen as a practicing ground for future EU membership.
How does this relate to Croatia? There is no doubt that Croatia is the next country from the region that will join the EU. The negotiations with the EU are progressing after the last stumbling block in the relations with the EU was lifted: full co-operation with ICTY. Not only for Croatia, this was also important in a regional context as you showed to other countries in the region that once you fulfil the key conditions for membership, you move closer towards the EU. And this is the role Croatia should continue to play in the relations with its neighbours: it should be a role model guiding the region on the path towards the EU and NATO. To put it differently, it should play the role of a mentor to the region in their aspirations to join Euro Atlantic organisations.
One argument that I usually hear – and many times read in the press – is that regional co-operation is not important in the context of EU integration. Basically, that it does not matter, as it has nothing to do with the EU. On the contrary, it is not only a condition for joining the EU; regional co-operation is the backbone of the EU itself.
And even within the EU and in the wider European context, we have many models of regional co-operation. The Visegrad Group of four Central European EU Member States that co-ordinate their positions within the EU; The Nordic Council bringing together several EU Member States with Iceland and Norway; or the Baltic Sea Council, a wider regional model that addresses issues of common concern among all the states around the Baltic Sea, as diverse as Germany, the three Baltic States and Russia as well as the European Commission.
These examples show how relevant regional co-operation remains, whether you are already inside the European Union or not. They should also be considered as models of how regional co-operation can develop in South Eastern Europe in the future.
The region has over the years been witnessing very positive developments on a whole range of issues - most notably by the fact that all countries have moved closer to EU membership. This also means that the framework for regional co-operation that the Stability Pact provides up to now needs to adapt to reflect these changes. This is the main rationale behind the transformation of the Stability Pact into a more regionally-owned, streamlined and effective co-operation framework. The models just mentioned should give us inspiration of how to proceed.
The Regional Table in Belgrade (our highest decision-making body) took far-reaching decisions in May on the establishment of a Regional Co-operation Council. It will gradually take over the tasks of the Stability Pact as the forum for regional co-operation in South Eastern Europe. These decisions have been made not only possible but also necessary due to the very positive developments in SEE over the past seven years. The region is much more mature today and therefore can – and must – take greater ownership of its own affairs.
This phased evolution of the Stability Pact into a regionally-owned Regional Co-operation Council should not be interpreted as the international community withdrawing its support. Many of our international partners have assured us that they will stay engaged, but want to see the countries of the region gradually taking more ownership of the process – politically, financially and also personnel-wise.
The timelines for the implementation of these decisions which we have taken together at the last Regional Table are tight – by mid 2008, the Stability Pact is to phase out and the new RCC to take over. The responsibility for implementation is a shared one between the countries of the region, the international donor community and the Stability Pact Secretariat.
From the side of South Eastern Europe, it is in particular the SEECP – which considers itself the voice of the region – and the countries in the region who need to take a leading role in this process. Your Government, just as all the other governments in the region, has an important task – and a quite challenging one – ahead. But this process also provides an opportunity for South Eastern Europe to show the international community that it has left the violent conflicts of the past behind itself.
In order to make this transition real and feasible, a number of decisions need to be taken as soon as possible.
First of all, the SEECP needs to define its relationship with the RCC. The Regional Table has taken decisions on the future of the Pact and has suggested that the newly established RCC should have a close relationship with the SEECP. But the ultimate decision, of course, lies with the SEECP itself.
Secondly, the financing of the new RCC and its Secretariat needs to be determined. We are already working with the European Commission and the donor community to secure the international share of the financial costs. But the South East European countries need to come to an agreement among themselves on how they wish to divide their share of the costs. I am glad to say that the representatives of Ministries of Finances have already met and made significant progress in this area.
Thirdly, the question of where to locate the Secretariat of the RCC and the person of the Secretary General will require a decision by the countries of the region.
Furthermore, a detailed mandate and legal basis for the RCC needs to be defined. This is of particular importance to establish the RCC on firm legal grounds and to allow financial means to be made available – we are all accountable to our taxpayers and need to prove that the funds are spent appropriately.
And finally, based on the priorities for regional co-operation agreed at the last Regional Table, the portfolio of the RCC needs to be refined further. The streamlined Regional Co-operation Council and its Secretariat will be dealing with six areas which the countries of the region have already identified as those where regional co-operation will be beneficial to all: Economic and social development; Infrastructure; Justice and Home Affairs; Security Co-operation and Building Human Capital with Parliamentary Co-operation being an overarching theme that is linked with each of the areas.
I think it is in all our interests to ensure the sustainability of the co-operation processes initiated within the Pact and thus safeguard its legacy. There are two pre-conditions for this to be successful: enhanced regional ownership and continued international support in the transition phase.
In conclusion, the times when an initiative such as the Stability Pact could be established and driven mainly by the international community and imposed on the region are over. It is up to the countries of South Eastern Europe to define the future of this process. Croatia, as a leader in the region, has the possibility to have a defining role in this process. Allow me to stress that you cannot opt-out of your neighbourhood and I am very glad about the reaffirmed commitment of our Romanian and Bulgarian friends to reinforce their engagement in the region now that their EU membership is decided. The support Croatia can give the rest of the region as a mentor and constructive partner is of great importance and will be appreciated by the European Union.
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