Documents

Conclusions by the Chairman Fabrizio Saccomanni

The Working Table on Economic Reconstruction, Development and Co-operation held its inaugural meeting in Bari. It was addressed by the Italian Prime Minister Massimo D'Alema, by the Special Co-ordinator of the Stability Pact Bodo Hombach and by Ms Lintonen, State Secretary, on behalf of the EU Presidency. A special message was delivered on behalf of Commissioner Patten.

Integration into European structures/trade issues

On integration into European structures - the core element of the Stability Pact - and related trade issues, the Working Table took note of the presentation by the EU/EC on the various actions related to the application of the Stabilisation and Association process for countries in South Eastern Europe, as well as on the advantages of current trade arrangements and potential developments. It also welcomed the presentation by the EU/EC on the harmonisation of legislation with EU rules and standards and agreed on the necessity of taking an active part in facilitating this process. The Table welcomed the special message delivered on behalf of Commissioner Patten, in particular the determination that the European Commission should play a full and vigorous part in the work of the Stability Pact and the focus on practical initiatives that make a real impact on the ground. The European Commission circulated four papers which were noted by the Table. On environment issues, the Table welcomed the presentation by the EU/EC and its intention to update the Working Table on the latest state of play at its next session.

The Table welcomed the US's willingness to host a high level meeting devoted to WTO accession for the States of the region, as well as the proposal for the countries in the region to initiate a process aimed at scaling down and eliminating intra-regional trade barriers with a view to developing an action plan by the next Working Table. On this point the Table felt that the countries of SEE should have improved preferential access to other markets and welcomed the US commitment to introduce national trade legislation in this regard.

Comprehensive approach to Regional Development

On a comprehensive approach to regional development, the Table welcomed the commitment from the World Bank to prepare in collaboration with the EIB and the EBRD and in liaison with countries in the region, proposals for a global framework for regional development and investment projects. The Table welcomed the intention of the World Bank to produce a first report by the end of 1999, to be presented to the Economic Table of the Stability Pact and to the Working Level Steering Group.

Regional Infrastructure

The Table endorsed the leading role given to the EIB for developing and assessing projects in the infrastructure sector. The EIB is expected to gather requests and proposals and to co-ordinate the assessment process of the various projects and initiatives. In this light, the Table welcomed the EIB's commitment to identify rapidly in collaboration with the relevant IFIs and in liaison with the countries in the region a set of priority projects to be taken at regional level as appropriate. The Table noted the report by the EIB and the criteria which will inspire the Bank in assessing the projects. Infrastructure projects were already mentioned during the discussion, in particular by countries in the region and by neighbouring states. A number of the projects were already under consideration in the competent policy and financial fora, as part of the ongoing programs for enhancement of regional infrastructure.

Private Sector Development

The Table endorsed the Chairman's proposal to give the EBRD a leading role in private sector development. The EBRD would collect requests and proposals, in particular from countries in South Eastern Europe. It will organise in collaboration with the relevant IFIs and in liaison with the countries in the region a review and assessment of potential initiatives to be taken at regional level as appropriate.

The Working Table noted the report by the EBRD, which has been circulated to all participants, and the recommended approach, which focuses on embracing direct private investment; supporting the creation of small and medium enterprises; enhancing cross border and intra-regional trade.

Handling of multi-country and regional projects referring to regional infrastructure and private sector development

The Table expressed a broad consensus on the following sequence for handling multi-country and regional project/programme proposals:

1. Proposals would be forwarded simultaneously to the relevant International Financing Institutions for assessment and to the Chair of Working Table II, through the Stability Pact Secretariat, for information.

   The EIB, for infrastructure related proposals, and the EBRD, for private sector development proposals, will lead the assessment process, in close co-operation with other international financing institutions and taking into account that the World Bank and the European Commission will be responsible for co-ordinating a comprehensive approach for regional development.

2. Reports of these assessments should regularly be submitted to the Chair of Working Table II.

3. The Chairman of Working Table II, in close co-ordination with the EIB and the EBRD, will then inform the High Level Steering Group.

4. The HLSG would review this work with a view to selecting priority initiatives that would merit concerted financial support from the private sector, major donors, and international financial institutions. This review will take place before a Regional Conference is held. Such a conference will be organised by the European commission and the World Bank in liaison with the Stability Pact mechanisms as soon as it can be appropriately prepared.

Investment Charter

The Working Table agreed a draft Investment Charter for South Eastern Europe. It will include an implementation and monitoring mechanism, which will take account of the specific situation of each country. The Table agreed to give the lead to the UK, which will work together with countries and International Organisations as appropriate, in particular the OECD, in finalising the Draft Charter by the end of the month, and agreeing on an implementation and monitoring mechanism within the end of the year.

Co-operation with the Private Sector

The Table agreed on the establishment of a Stability Pact Business Advisory Council and to come back to the issue on the basis of a proposal to be drawn up by SECI, in co-operation with interested countries and organisations like the EBRD and the CEI. The Table welcomed the interest shown in the initiative by the Trans Atlantic Business Dialogue, and encouraged the TABD to suggest ways to foster private investment in the region.

The Table welcomed Germany's willingness to extend an invitation for the first meeting of the Steering Board of the Stability Pact Business Advisory Council to be held in Berlin in early December 1999.

Co-operation with existing initiatives

As for co-operation with existing initiatives, the Working Table took note of comments and suggestions made during the discussion. It confirmed its intention to take fully into account the activity of the regional initiatives when developing the Working Table work program. It welcomed the statements by the International Organisations and Regional Initiatives on their ongoing programs.

Navigation on the Danube

On navigation on the Danube, the Working Table heard a report by the Danube Commission and encouraged it to continue its important work in searching for an urgent solution to the navigation problems, while fully recognising the important political implications of the issue. The Table noted the statements, made in particular by countries in the region, on the importance and urgency of clearing the waterway in order to improve the economic prospects of the riparian countries. Countries in the region felt that clearing the waterway should not be tied to reconstruction of the affected bridges.

Anti corruption initiative

The Working Table welcomed the US proposal for an anti corruption initiative as a very important program to further the Stability Pact objectives. The Table felt that this issue should be considered by all three Working Tables, as there were aspects relevant to all of them. The Working Table believed that, following the first round of discussions in the three Working Table meetings, it will be up to the Special Co-ordinator to take a decision on concrete measures to be undertaken taking into account existing programmes, like the World Bank activities, and on how to take forward the initiative.

Inventory of existing programmes

The Chairman informed the Table on the state of play on establishing the inventories of existing programs, in order to avoid duplication of activities and share information better. The answers and inputs received will be considered in drafting the Work program of the Working Table. The Chairman also briefed the meeting on further organisation of work. The Chairman, in co-operation with the individual lead organisations and countries, will consider how best to pursue the initiatives endorsed by the Working Table and inform the Table accordingly.

Date/Venue of next meeting

The Table noted that it would hold its meetings in 2000 in the former Yugoslav Republic of Macedonia, and welcomed the statement by the representative of that country.