Dear Prime Minister Berisha, dear Excellencies,

Please allow me to congratulate Albania on hosting this summit of Central European Initiative Heads of Governments, and to thank the Central European Initiative for its commendable work in support of regional co-operation.

The summit gives me the opportunity to update you on progress in regional co-operation in SEE and on the evolution of the Stability Pact in relation to such progress.  The accession by both Romania and Bulgaria to the European Union next January is good news for the all SEE region, and should serve for all of us as an incentive to double our efforts to ensure that the other SEE countries move on the same path.

I am glad to say that the importance of regional co-operation for the process of European and Euro-Atlantic integration is better understood today than it was a few years ago. Progress in enhancing regional co-operation is a concrete step towards fulfilling one of the conditions for EU membership, good neighbourly relations. At the same time, many of the problems faced by South Eastern Europe can only be addressed on a regional basis – fighting organised crime and attracting foreign investment are good examples of this.

Only one week ago, here in Tirana, the EU-Western Balkans Forum on JHA underlined once again the regional nature of organised crime, and the need for a regional response. The negotiation of the new Convention of Southeast European Law Enforcement Centre initiated by SECI Centre Member states is a step in this direction. But co-operation between EU bodies, such as Europol, and the SECI Centre need to be further strengthened.

On the issue of attracting investment, we have made good progress in moving from the network of 32 bilateral free trade agreements in SEE to the creation of a multilateral agreement through the amendment and enlargement of CEFTA. This will increase intra-regional trade and also make the whole region more attractive to investment. Eight parties already initialled the agreement on 9 November in Brussels, but to make this a real success we need all SEE countries to be part of this new CEFTA. I would like to take this opportunity to invite all partners from the SEE region to support full commitment by ALL parties to find mutually agreeable solutions to the remaining issues.

I would also like to use this opportunity to spot light on an issue that require the attention of all your governments: energy. Further to the closure of two nuclear reactors at the Kozloduy plant in Bulgaria, and due to possible shortages of Russian gas supplies, countries in the region may face energy power cuts over the next winter period. This underlines again the fragile balance between energy supply and demand in the region, and calls for urgent decisions to invest now in power utilities to prevent crises and shortages tomorrow. My message here is that funds are available for such investments, provided that political will is there to ensure that all market conditions are met.

Responding to the increased maturity of the region the Stability Pact is now evolving into a more regionally owned and streamlined co-operation framework, the Regional Co-operation Council, that should take over by early 2008. The responsibility for implementing the transition from the Stability Pact to the RCC is shared between SEE countries, the international donors 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 Croatia as its current Chairmanship, which need to take a leading role in this process.

SEE countries recently committed to contribute 1 Million Euro to the future running costs of the Secretariat and agreed on a sound cost sharing mechanism. This commitment was met with satisfaction at the Bucharest Regional Table, and several donors already expressed their readiness to live up to their commitments and provide adequate co-funding for the RCC. Notwithstanding the increased regional ownership, the continuous involvement of the interested donor community and of the European Commission will be a key component of the future framework. The Bucharest Regional Table also endorsed a streamlining strategy for the Stability Pact task forces and initiatives, for which the RCC will provide in the future the political framework.

The next months will require key decisions to be taken by the countries of the region and by SEECP. The SEECP needs to define its relationship with the RCC and this will essentially require an amendment of its Charter. The countries of the region also need to start coming to an agreement on the location of the Secretariat and an eventual Liaison Office in Brussels as well as personnel questions such as candidates for the post of the Secretary General. In addition, a detailed mandate and legal basis for the RCC needs to be defined, to allow the RCC to be established on firm legal grounds and the necessary financial means to be made available in an appropriate manner.

Decisions on all these issues have to be taken in the months running up to the back-to-back meetings of the SEECP Summit and the Regional Table in May/June next year. The SEECP Summit and the Regional Table will be decision time.

In conclusion, let me state once again that a sustainable and efficient framework for regional co-operation is in the interest of all of us. For the transition from the Stability Pact to the RCC to be successful, we need continued international involvement but mostly an enhanced regional ownership, and this can be achieved only if SEE governments assume the responsibility of the process.