THE ROAD AHEAD.

REINFORCING THE REGIONAL CO-OPERATION AGENDA

Working Tables Final Session
Tirana, 4 December 2006

Your Excellencies, ladies and gentlemen,

Let me offer you some final considerations on the meetings of these two days.

I think the meetings were extremely fruitful, and useful for our future co-operation efforts.

First, we need to recognise how much the region has changed, since when the Stability Pact started to work.

South Eastern Europe is today a more stable, economically viable and secure region.  This is the main rationale behind ownership of regional co-operation processes and the transformation of the Stability Pact into the Regional Co-operation Council.

General progress in democratic standards, macroeconomic stability and the improvement of the security environment also help us all to deal with remaining challenges, such as the definition of the status of Kosovo, in a more mature and constructive fashion.

Further reform efforts are needed to consolidate change and positive developments, but the initialling of a Stabilisation and Association Agreement with Bosnia and Herzegovina is excellent and very welcome news.

On the EU level, the agreement on the Treaty of Lisbon is good news for South Eastern Europe.  After years of vague notions such as absorption capacity dominating the debate in Brussels and sending mixed signals to the region, the agreement on the Treaty now opens the way for future enlargements.

The next NATO Summit, which will be held in Bucharest in Spring 2008, is also a sign of the increased maturity of the region, and an opportunity to further the region’s integration in Euro-Atlantic structures and to consolidate stability and achievements in the field of security.

Our meetings provided a broad overview of where we stand after more than eight years of work on concrete and day-to-day issues, carried on by various SP task forces and initiatives and co-ordinated by the SP Working Tables.

This work constituted the backbone of regional co-operation during all these years.  It allowed all countries to harmonise their policies and get closer to EU standards in the different fields.  But also, it strengthened links and networks between countries and made the concept of regional co-operation widely accepted.

In each field, there were major achievements and a degree of progress that was in many cases unthinkable when the Pact started its mandate.  Back then, relations between SEE countries were strained and contacts were extremely limited.

At an earlier stage, also, the main impetus for regional co-operation in SEE came from outside the region.  The Stability Pact was by large led by the international community, which set priorities and put pressure on SEE countries to make them work together.

This is no longer the case.  The transformation of the Stability Pact into a fully regionally owned and led framework, the Regional Co-operation Council, is entering its final phase.

As you all know, the final handover will take place next February and will finally put the region in the driver’s seat of regional co-operation.

Also, specific initiatives and task forces are increasingly regionally owned, funded and led.  Progress in the different thematic areas and enhancement of regional ownership are then intimately linked and go hand in hand.

Thanks to a disciplined effort to streamline and rationalise, the RCC will inherit from the Stability Pact a set of consistent and self-sustainable task forces and initiatives, which, taken together, represent an impressive and sustainable regional cooperation program.

Also in the future, work on concrete issues and political support and co-ordination of regional co-operation activities via the RCC will be closely linked.  In several fields, significant past achievements need to be consolidated and the commitments SEE countries have taken on will have to be properly implemented.

This co-operative agenda is truly the agenda of the region.

This is the case for example of Parliamentary Co-operation.  The establishment of a Regional Secretariat in the National Assembly in Bulgaria is a sign of the importance attached to co-operation between Parliaments at different levels, by way of networking and exchanging information and training of staff.

The Regional Secretariat is however a tool which needs to be properly used by SEE parliaments in order to improve the lawmaking process and their ability to oversee their governments’ activities - a pillar of modern democracy and a pre-condition of getting closer to the EU.   A major step in this direction has been taken yesterday, with the initialling of the Memorandum of Understanding on Regional Co-operation.

Our discussions yesterday have given this effort additional energy.   To bring the region’s women parliamentarians into the process, as proposed by Speaker Topalli, is an excellent idea.   And it was good to see the links to the European Parliamentary strengthened.

Trade is another area of important potential.  By the entry into force of CEFTA 2006, SEE is now becoming a single, large free trade area, which will increase intra-regional trade and made the region more attractive for investors.  The dynamic and rapid pace of negotiation and ratification of the Agreement were certainly positive and were noticed by potential investors.  However, the Agreement will need to be carefully and fully implemented in order to display its real potential.  Key issues for implementation concern in particular the establishment of effective dispute settlement mechanisms and other priority issues, such as agriculture, customs co-operation and non-tariff barriers.

CEFTA 2006 is only one component of the economic regional co-operation agenda, which includes the SEE Investment Committee, the promotion of information and communication technology, the co-ordination of social policies and the Energy Community Treaty.  Each component can contribute to the economic and social development of SEE only if proper implementation is supported by political will and carefully co-ordinated with other regional co-operation activities.  And this is where the RCC will have a key role to play.

Our common efforts with regard to disaster response have created a special opportunity for the RCC and it is time for decisive action.  All SEE countries and UNMIK/Kosovo signed a Memorandum of Understanding on the Institutional Framework of the Disaster Preparedness and Prevention Initiative for SEE (DPPI-SEE).  This Memorandum will further enhance regional co-operation and regional consultation in the field of disaster management and commit the participating countries to assume more technical and financial responsibility for preventing, preparing for and dealing with disasters.

Equally importantly, a high level event is planned for next spring, in Sofia, in co-operation with the Bulgarian SEECP CiO.  All regional partners together with key international actors involved in this filed, such as the World Bank, NATO, and the EU.  This strong base of support will enable the region to put in place a credible disaster response capability, to the benefit of those in the region who live in vulnerable areas.

A reinforced programme of regional initiatives to deal with floods, wildfire and similar events is within the region’s grasp.  Time is of the essence as this effort and the region’s people look to us for results.

Finally, the SECI regional centre for combating trans-border crime is today widely recognised as a key tool in regional co-operation against the several aspects of trans-national crime in SEE, and as a partner of the international community as proved by the increasing co-operation with Europol.

The fight against organized crime and corruption must however be considered as a priority issue by SEE countries themselves and not as a condition imposed from outside.  The SECI centre can only work if all countries support it by sending their representatives to it and then translating best practices into legislation and implementation measures.

Completion of the SECI Centre Convention, meeting the concerns of all stakeholders, is a key challenge for 2008.

These are just a few examples of where the main challenges for future co-operation lie.

A clear sign of dynamism of regional co-operation comes from the process of creating the Regional Co-operation Council.

The very fact that all Stability Pact partners, both South Eastern European countries and international actors agreed on the necessity of creating a new framework to succeed the Stability Pact is a measure of the relevance of regional co-operation for South Eastern Europe.

Not so long ago, there was wide resistance on the ground, as regional co-operation was perceived as an antechamber or an unwelcome alternative to full European integration.  Now, also thanks to the work of the Stability Pact, there is a strong awareness that many issues can only be tackled on a regional basis.  And that regional co-operation can be a training ground for further European integration.

However, a successful implementation of the regional co-operation agenda will depend on an efficient and operational RCC.  All SEE and international partners will then have to support the RCC in the crucial phase of its early life, consolidating their overall political support and their engagement in specific initiatives and living up to their financial commitments.

Like any institution, the RCC will not have a very long period to prove itself as an effective and relevant actor in promoting and co-ordinating regional co-operation.  A good start is therefore essential to win further support of all relevant actors.

A key role in this respect will have to be played by the SEECP and in particular by the Bulgarian and Moldovan CiOs.  The Bulgarian SEECP CiO will “baptise” the RCC by holding its Foreign Ministers meeting back-to-back with the RCC first Annual meeting.  The regional co-operation program for the RCC’s initial weeks is full and challenging.  Meetings planned in tandem with the SEECP will address the region’s competitiveness, disaster response planning, together with issues related to defence, environment and others topics.

Moldova will assume its Chairmanship in the first, crucial year of existence of the RCC.  A detailed programme is being prepared and I encourage all SEECP parts, starting with the SEECP Troika, to actively support our Moldovan colleagues in their efforts.

Our work to date together, has established a sound framework and solid foundations for future regional co-operation.  The way we arrived to this point is already a sign of the progress achieved by the region.

But there are key tests ahead.  Implementation of all the recently taken decisions is the first test.

Secondly, the region must prepare for the new challenges ahead, some of which we can anticipate.  Others will be entirely new given the pace of change in the world today.

Here, I am confident that the RCC and the SEECP will serve the region well, much as the Stability Pact has done over the past eight years.

Ownership translates into responsibility, and both success and failure will now depend on you.  The road ahead in regional co-operation is clearly marked.  A secure, prosperous and democratic region is the final destination and regional ownership and leadership is the key to it.

Thank you for your kind attention.