Izvještaj Pakta o stabilnosti

22.05.2003.

ctivity Report of the Special Co-ordinator of the Stability Pact
to SG/HR Solana on implementation of the EUSR Mandate
for the first Semester 2003,
April 2003

 

I.  Executive Summary

Political developments in South Eastern Europe (SEE) since the beginning of the year have been focused on three events: the upcoming Thessaloniki EU-Western Balkans Summit, the war in Iraq and the thus shifting attention, and the assassination of Serbian Prime Minister Zoran Djindjic. All three have influenced the work of the Stability Pact significantly.

Considering the current round of EU enlargement, the Thessaloniki Summit represents an important opportunity for the five SAP countries to solidify their perspective toward eventual EU membership. Given the supportive and complementary role of the Stability Pact (SP) to the SAP, the SP has sought to provide an important regional dimension to the plans for the summit. Moreover, in light of the international attention on Iraq, the Stability Pact also has a vital role to play in sustaining dedicated political attention.

The swift and efficient reaction of the Serbian government to the assassination of Prime Minister Djindjic highlights that while much remains to be done in South East Europe we have dependable and serious partners with whom we can collaborate. The SEECP Summit held in Belgrade only a few weeks after the assassination was further proof that regional cooperation is well established, and continues to focus on achieving concrete results. The tragic assassination also highlighted the importance of fighting organised crime, one of the core objectives of the Stability Pact.

In fulfilment of his mandate, Special Coordinator Erhard Busek has closely coordinated activities of the SP with EU institutions, EU Member States and other SP partners. The Informal Consultative Committee (ICC), which includes the SEECP chair as a regional representative, has continued to be of particular utility in this context. In its efforts to further integrate Kosovo into regional processes, the SP is where possible ensuring participation of UNMIK in SP activities. Initial steps have been taken to establish more specific discussions between Kosovo and its neighbours on non-status issues. Options to involve the incoming EU members of Central and Eastern Europe to a greater extent in the activities of the SP and make use of their experiences with transformation processes are also in development.

The next Regional Table will be held back to back with the three Working Tables in Dubrovnik (Cavtat) 26-27 May and will take stock of achievements since the beginning of the year. This follows the results of the Thessaloniki Regional Table of December 2002, where the Stability Pact agreed to streamline its approach and focus on six "Core Objectives", representing priority areas where the work of the Stability Pact could make a definable difference.  Under each of these Objectives, achievables for 2003 are defined in order to convey tangible and measurable results. A report on the complementarity of SP activities with SAP is under preparation.

The SCSP Secretariat undertook efforts in human and financial resources management, aiming at adapting the infrastructure and staffing needs, so that the progress under the core objectives as well as in other vital areas can be supported and implemented efficiently.

 

II. Political Role of the Special Coordinator as EU Special Representative

In fulfilment of his mandate as EU Special Representative for the Stability Pact,
SC Busek has closely coordinated activities of the SP with EU institutions and Member States, in particular with the current Greek and incoming Italian Presidencies, the Council Secretariat and the European Commission. This is of particular importance considering the upcoming Thessaloniki EU-Western Balkans Summit. In this respect, the Informal Consultative Committee (ICC) has proved itself as an important forum for coordination with Council, Commission (DG Relex), Presidency as well as the SEECP Chair. Furthermore, on several occasions SP participated in relevant Council Working Groups to report on specific SP activities. Excellent cooperation also exists with other Commission services in thematic areas such as trade and energy.

Close cooperation has also been ensured with other partners to avoid duplication of efforts; among them the OSCE, Council of Europe, OECD, the International Financial Institutions, as well as the United Nations and its various specialised sub-organisations.

A special focus of SC Busek's engagement has been on improving the investment climate in the region as a precondition for real stabilisation of South Eastern Europe. This theme runs through several of the core objectives of the SP, namely trade liberalisation, infrastructure and energy, fighting organised crime, as well as managing population movements and other SP activities, such as the Business Advisory Council for South Eastern Europe (BAC) - all of which are necessary components of an overall strategy to improve the investment climate in SEE.

The SEECP Summit of 9 April has once again demonstrated that the SEECP represents a visible voice of the region. The Chairmanship of Serbia and Montenegro in the past year has significantly moved the process forward and has proven that the region can establish common positions in key policy areas. Support for the SEECP's efforts to enhance regional cooperation is one of the prime goals of the Stability Pact.  In the run-up to the Thessaloniki Summit, SC Busek has impressed on the region that a shared regional perspective is essential for a successful outcome of the Summit. 

In fulfilment of his mandate and in support of various SP activities, SC Busek has maintained high-level political contacts in the region as well as with other SP partners. Due to the new constitutional set-up of Serbia and Montenegro, continuous close high-level discussions were held with Belgrade and Podgorica to clarify political responsibilities with the aim of assessing and resolving deadlocks on the consequential impact in key policy areas.  In view of political progress in Bosnia and Herzegovina, the SC visited Sarajevo to obtain greater political commitment to the principal goals of the Stability Pact and urged enhanced engagement in regional cooperation efforts. Close coordination with Council Secretariat and EC ensured a unified message being sent to the region. SC Busek furthermore travelled to the US for consultations regarding the US involvement in South Eastern Europe and received full support for the activities of the SP.

In its efforts to further integrate Kosovo into the regional processes underway, the Stability Pact is where possible ensuring participation of UNMIK in SP activities along the lines of UNSC Resolution 1244. SC Busek is closely coordinating his activities in this respect with the other international actors in the region, such as SRSG Steiner and EUSRs Ashdown and Brouhns. Apart from the general involvement of UNMIK in SP activities, several initiatives have been made to open more specific discussions between Kosovo and its neighbours, which have come to a temporary halt due to the assassination of the Serbian Prime Minister Zoran Djindjic.

In consultations with the Central and Eastern European candidate countries SC Busek has stressed the value of the Transformation Experience these countries have gained and explored possibilities of making use of this knowledge for the countries of South Eastern Europe. To explore the possibilities of focusing the development programmes of CEE candidate countries on the South Eastern Europe, a high level workshop will be held in Vienna, 05 May.

The next Regional Table will be held back-to-back with the three Working Tables 26-27 May in Dubrovnik (Cavtat) reflecting the conclusion of the streamlining efforts accepted at the last Regional Table in Thessaloniki in December 2002. The Working Tables sessions will take stock of overall achievements in the respective Tables, while the Regional Table will review progress of its strategic objectives and provide guidance for future Stability Pact activities, also in view of the Thessaloniki EU-Western Balkans Summit.

SC Busek was invited by the General Affairs and External Relations Council of 18 November to produce a report on the Complementarity of Stability Pact activities with the Stabilisation and Association Process. This report is under preparation as requested in consultation with the Informal Consultative Committee. The report will highlight the mutual complementary role of the SP and the SAP.

 

III. Core Objectives in the Working Table on Democracy and Human Rights

1. LOCAL DEMOCRACY AND CROSS-BORDER COOPERATION

This Core Objective was only established in November 2002 with the SP role centred on the area of donor coordination, the support and development of Euroregions in SEE, and encouraging the decentralization process through the support of twinning and training activities.

Systematic cooperation of local actors (governmental, civic, and business) across national borders provides the practical underpinning to regional cooperation in SEE.
 Achievables 2003
· Provide political support for agreement on enhanced cross border cooperation in line with the principles of the Council of Europe.

· Increase citizen's participation at the local level through partnerships involving municipalities and regional authorities, as well as empower local governments and enhance their effectiveness through training and partnership programs.  .

· Know-how transfer from new CEE EU members, especially Poland and Hungary, in key areas of local self-government, the decentralization process and territorial reform.

Actions undertaken
The Pact's Core Group on Local Democracy and Cross Border Cooperation (LODE/CBC) agreed in February that the Pact's added value lies in the area of donor coordination, the support and development of Euroregions in SEE, and in encouraging the decentralization process through the support of twinning and training activities..

Concrete activities planned for the remainder of 2003 include completing the mapping exercise on LODE/CBC activities in SEE, mobilizing donors, including the possibility of establishing a small projects grant facility for SEE Euroregions, and obtaining the region's political commitment to CBC through an MoU or political agreement.

Evaluation
Strong support has been received from various political levels in the SEE region and from implementing agencies and organizations working on the ground.

Challenges
The challenge now will be to convert this support into tangible outcomes and progress.  Finalizing the consensus-building process about concept and priority activities with involved partners. Furthermore, LODE/CBC is a long-term process that does not yield quick results. The challenge will be to keep up the momentum for support in this area and to ensure that CBC structures (Euroregions) become self-sustaining, viable entities.

2. MEDIA

Media has a crucial role to play in shaping the future of South Eastern Europe. The Stability Pact supports the continued implementation of the endorsed strategy to enhance the position of independent media in South Eastern Europe. Broadly composed Media Working Groups in all countries ensure full involvement of local actors and coverage of regionally felt needs.

Achievables 2003
· Bringing media legislation, including its implementation, in three areas (broadcasting, access to information, defamation) in line with European and international standards
· Production of at least 30 hours of quality programming and the start of a Fund for Television Production.
· Increased strength of local institutions for journalism education

Actions undertaken
Together with Working Groups in all SEE-countries, SP Media Task Force (MTF) reviewed and selected a limited set of project proposals for submission to bilateral donors. SP also helped coordinate support and advised donors on their media assistance.

SP MTF initiated drafting of new broadcast legislation in the former Yugoslav Republic of Macedonia (to be submitted to parliament after the summer), conducted a review of media legislation in Moldova, drafted law on Access to Information in Montenegro and assisted in the preparation of new broadcast law in Croatia. Current/upcoming activities: working on Access to Information legislation in several countries, broadcast legislation in Bulgaria, monthly update on media legislation in SEE and implementation of new broadcast laws in Montenegro.

SP MTF assisted professional and independent TV-producers in South Eastern Europe in finding funds to produce quality television programs. So far, support secured for three series and three programs on issues like corruption, reconciliation and gender equality.

In support of local journalism education SP MTF mobilized funds for local schools of journalism in Podgorica, Bucharest and Sarajevo.

Evaluation
Work towards meeting the achievables for 2003 is well under way Positive responses have been received from SEE (11 Media Working Groups actively involved) and donor community. Obstacles: drafted media laws not adopted by parliaments and delays due to slow disbursement of pledged support.

Challenges
Keeping media reform on the agenda to ensure that legal changes are implemented (this requires SAP tracking / EU pressure / involvement delegations) and that good media outlets become self-sustainable (closely linked to economy).

 

IV.  Core Objectives in the Working Table on Economic Reconstruction and Development

1. REGIONAL INFRASTRUCTURE / ENERGY

Ensure that both the countries of the region and the international community take a regional strategic approach to infrastructure development based on co-financing and institutionalised partnership including transport (roads, rail, air), energy and telecommunications, with a view to prioritising capital investment in order to benefit from economies of scale.

Achievables 2003
By end of 2003, 15 more regional projects under construction, several new projects added to list on basis of agreed methodology.  Launch regional gas initiative; implement electricity MoU signed in Athens on 15 November 2002; secure agreed framework to determine priority electricity infrastructure investments.

 (i) Transport Infrastructure

Actions Undertaken
The Infrastructure Steering Group (ISG) created under the auspices of the SP and chaired by the EC is the main co-ordinating body for regional infrastructure including energy.  The ISG meets approx. 3 times per year.

The focus to date has been on the process to secure agreement on the main components of the core transport network in South Eastern Europe, particularly in the 5 SAP countries.  The meeting in Luxembourg in February between ISG members and the SEE countries, presented the EC-led REBIS study (based on the Trans European Transport Network - TEN) and secured agreement from both SEE countries and IFIs for next steps including review meeting in June and Ministerial meeting in Autumn to sign MoU on Regional Transport Network.  Along with the electricity MoU (see below) this means that there will be an agreed regional strategy for key infrastructure sectors in SEE.

Five new projects have been added to the list of Regional Infrastructure Projects that have secured financing and approximately 50% of the 51 projects are under construction.  A study on regional air traffic control management was launched by the EC. The objective is to determine how to improve air safety and air traffic management in SEE so that a seamless system in line with the EC's Single Sky initiative can be introduced.

Evaluation
The ISG has gained momentum and increasing support from the IFIs, the EC and the SEE countries as a mechanism to develop a strategic regional approach to infrastructure development in SEE.  The consultation process on REBIS and the plans to have a MoU on a Core Regional Transport Network are tangible evidence of this.

Challenges
To generate the political consensus necessary to secure agreement among EC, IFIs and countries of the region on the projects that will comprise the Core Regional Transport Network and hence get agreement for the MoU.   Continue to facilitate identification and removal of bottlenecks to project implementation by SEE countries and IFIs.

(ii) Energy

Actions Undertaken
The electricity MoU of 15 November 2002 commits the SEE countries to create by 2005 a regional electricity market and to introduce the principles of the EU Electricity Directive with a view to preparing their integration into the EU's internal electricity market.  While this so-called Athens process, is driven by the European Commission, the SP's particular role is to ensure regional political support and ownership, to promote a common strategy among the donors as well as encourage private sector involvement to foster restructuring and investment in this crucial sector for the overall economy of the region.
 
The SP organized, the first Industry Round Table, hosted by the Czech Government in Prague in February. About 20 representatives of major international energy companies attended the meeting, which provided feedback from the private sector on key issues for the success of the Athens process.
 
The EC/SP organised SEE energy week hosted by the Italian Government in Rome on 24 - 27 March 2003 included a series of meetings of the different governing and co-ordination bodies established under the MoU.

SP will organise a high level meeting of energy advisers to SEE Prime Ministers in Vienna in June which will be important in terms of maintaining the political commitment to the process.
 
Evaluation
All events to date have been successful in terms of raising awareness and support for the Athens process, identifying key issues for its success and defining a road map with specific steps to be undertaken by all stakeholders, including donors.  SEE countries are making concrete progress in implementing the MoU and the various donors are supporting their efforts.
 
Challenges
Need to ensure political support in the various member countries up to the highest levels as well as private sector involvement.  A second Industry Round Table will be organised by the SP and the EC in Greece in September/October 2003, with the participation of CEOs from the major SEE electricity companies.

2. TRADE AND INVESTMENT

Support a business climate conducive to investment, trade and employment, through the implementation of the free trade agreements and the use of the monitoring process and in particular, the critical time bound targets of the Investment Compact, thereby fostering capital and know-how transfer and thus the basis for sustainable economic development in South Eastern Europe. 

Achievables 2003
Further development of a liberal business environment, promoting business opportunities including implementation of a free trade area, identify and progressively reduce key non-tariff barriers; open all negotiations with Moldova (associated to the free trade process); integrate UNMIK/Kosovo into the Trade Working Group; meet critical time bound targets for investment enhancement in each country and organise major business promotion events.

(i) Trade Liberalisation

Action Undertaken
The network of 21 Free Trade Agreements (FTAs) required under the SP Trade MoU was completed in February. Eleven agreements are in force, the remainder are at different stages of the ratification process - all agreements should be in force by July 2003.  Two agreements with Moldova have been finalised and negotiations on 2 others have been opened. UNMIK attends the SP Trade Working Group (TWG) meetings and is participating in relevant TA activities organised under the auspices of the TWG.

An exercise to identify non-tariff barriers impeding regional trade so that action can be taken to progressively eliminate these has been launched by the TWG, including seeking views from the private sector via the BAC.  Several workshops/seminars have been held under SP auspices focused on FTA implementation including resolution of trade disputes, customs co-ordination and information exchange/public awareness.  Discussions have also commenced on options for further trade liberalisation in the region, including the creation of a Free Trade Area and possible expansion of CEFTA and/or creation of SEEFTA.

Co-ordination of strategy and activities is achieved through the TWG, which comprises senior trade policy officials from the SEE countries, the European Commission, World Bank, WTO and several bilateral donors.

Evaluation
The peer pressure and transparency inherent in the functioning of the Trade Working Group contributed to the finalisation of the network of FTAs. Analysis of the agreements commissioned by the TWG concluded that the agreements in general comply with the stringent terms of the MoU.  

The Group's regular meetings and constant information exchange are providing a forum for identification and resolution of barriers to FTA implementation e.g. discussion on issues affecting implementation of FTAs by Serbia and Montenegro at recent TWG meeting.  They also provide a good medium for co-ordination and co-operation of strategy and technical assistance among the international community e.g. exchange of policy reports, listing of all trade related TA projects, EC/US
co-operation on seminars.

Challenges
In the short to medium term, we need to maintain the momentum gained during the negotiations phase to ensure that FTAs are fully implemented.  It is furthermore necessary to agree on a road map for further trade liberalisation including strengthening of regional institutional structures (e.g. CEFTA/SEEFTA).

(ii) Investment

Action Undertaken
A key concern of the SP's Investment Compact (IC) is to ensure that the countries implement the agreed priority critical time bound reforms.  The new version of the Monitoring Instruments report on progress has been published and widely circulated. A variety of workshops and meetings have been held under individual IC components including Promotion of Private Investment, SME support and Governance and Regulatory Reform. A meeting of the main donors took place on the 07 February to ensure better co-ordination.

Other IC activities included the publication of a White Book on Investment in Serbia issued by the Serbian Foreign Investment Council and efforts to strengthen individual Country Economic Teams (CET).  A mission of the IC Project Team to the former Yugoslav Republic of Macedonia will take place in May; a Ministerial meeting is scheduled for July.   Additional missions are planned for later in 2003 to Serbia and Montenegro and Moldova.  Regional roundtables on investment promotion are planned in Switzerland, Japan and the USA.

Evaluation
The SEE countries have stated that the Monitoring Instruments are valuable instruments for creating awareness, facilitating inter-ministry discussion on policy issues and highlighting progress made.  The interim review concluded that over half the reforms have been completed and that most countries are on track.  The publication of the White Book on Serbia is a very positive sign of increasing dialogue between government authorities and foreign investors via the Foreign Investors Council that have now been established in all countries.  The donor meeting on 7 February resulted in firm commitments for further support to the Investment Compact that is chaired by Austria and the OECD and managed by the OECD.

Challenges
The main challenge is to maintain pressure for completion of the critical time bound reform priorities. While considerable progress has been made in terms of passing legislation, the new rules must now be fully implemented and the next set of priorities identified.  Excellent relations must be all members of the IC project team both donors and SEE countries.  Greater involvement of the private sector must also be ensured in policy development and promotion of improved investment opportunities through the BAC and several business forums (e.g. Danube conference). Through its combination of senior executives from multinational and SEE companies, the BAC provides Governments with a dynamic forum from which they obtain the private sector's perspective on current and planned policies, particularly in areas such as trade liberalisation, SME development and improving the climate for FDI.   The business missions that are an integral part of any BAC meeting in the region provide excellent promotional opportunities for the region.

 

V.  Core Objectives in the Working Table on Security Issues

1. FIGHT AGAINST ORGANIZED CRIME

The aim of the SP is to support the region in developing joint instruments for effectively combating organized crime by making the regional centre for Organized Crime in Bucharest operational, completing the training to Europol standards as well as increasing the number of formal operational exchanges with Europol on organized crime investigations.  Furthermore, support the region in implementing the agreed anti-trafficking strategy for South Eastern Europe as well as in its efforts to combat corruption.

Achievable
Building upon mobilization of donor support in 2002, making The Stability Pact Organized Crime Initiative (SPOC) Executive Secretariat fully operational early in 2003 and follow-up on the November London Conference on Organized Crime which has outlined a comprehensive and ambitious agenda for implementation, including combating corruption:
· Implementation of the SPOC Action Plan as a key follow-up mechanism to the London Conference and as a means to exploit the operational synergies of the Bucharest-based Regional Centre for Combating Trans-border Crime.  Priority will be given to the development of mechanisms to allow adequate exchange of information; greater coordination of anti-crime operations, and enhancing inter and intra-agency cooperation and coordination both within SEE and with EU and other international law enforcement agencies.
· Developing an operational arrangement between the Bucharest Centre and Europol to maximize mutual benefits, and provide SEE members concrete examples of European standards in law and law enforcement.
· Development of a SEE regional association of police to share best practices on police training, to identify areas for future training in line with London Conference commitments, and to enhance operational cooperation by police agencies within SEE and with EU and other international law enforcement agencies.

Actions Undertaken
A new working forum for SPOC is planned and will be introduced early May. A qualified senior professional to chair this group was identified and will take over responsibility in the coming weeks. The next step is to involve regional and external partners in preparing concrete steps for action. Current coordinating efforts by the SP concentrate on forming slim and efficient circles of activity.

The SPOC Secretariat became operational in the beginning of 2003. The Secretariat has already drafted a strategy, policy, sample laws and project proposals. Inter alia, initial steps to elaborate on substantive issues (witness protection) were taken. Further action will concentrate on the follow-up process of the London Conference results and implementation. In addition, the need for training of the Centre's experts according to the Europol's standards was put on the SP's immediate agenda. The newly created Association of the Police Chiefs in SEE (SEPCA) and the Association of the European Police Colleges (AEPC) will serve as important tools.

The SPAI (Stability Pact Anti-Corruption Initiative) steering group decided to place its regional secretariat in Sarajevo. Pre-drafting an action plan has started. The working group on trafficked human beings is well underway and considers finalizing a regional agreement on temporary residence for trafficked victims. The regional police training is currently drafted through the SP's Police Forum Initiative.

Evaluation
SP evaluates its success through its expertise in creating efficient working groups and facilitating a smooth dialogue between local, regional and international agencies. It has to set up functioning secretariats. Plus, SP has to assist the selection of reliable and committed key personalities for working groups and Secretariats. Also, drafting/reviewing respective action plans may be used as first glance criteria to evaluate progress. Finally, implementation will be closely monitored.

Challenges
¨ To maintain and create awareness amongst local decision-makers, civil society, EU and international actors dealing with OC issues with a priority on operational and sustainable results.

¨ Furthermore, to secure cooperation and coordination amongst the relevant actors, particularly regarding closer contacts between EUROPOL and the Centre through a "Strategic Agreement", in order to increase the formal operational exchanges on OC investigations.
.
¨ Remove technical, procedural and legislative bottlenecks in national laws to allow effective measures against OC.

2. MANAGING AND STABILISING POPULATION MOVEMENTS

The merger of the Migration and Asylum Initiative (MAI) and the Refugee Return Initiative (RRI) within the first six months of 2003 serves as the basis for a single, more streamlined and more focused approach to managing and stabilizing population movements in SEE.  The initiative aims to combine national measures with cross-border and regional initiatives to render national action more effective and will allow the phasing out over the course of 2003 of the current activities devoted solely to the humanitarian aspects of displacement issues.

Achievables 2003
· Realization of sustainable solutions for at least 100,000 refugees and Displaced Persons
· Initiation of a regional data exchange of property related information, through a regional Info Exchange Unit, which will assist the management of returns.
· Development of national housing policies and financing instruments, particularly of benefit to displaced persons and refugees, but also as a means of fostering a more flexible labour market;
· Launch a regional programme to implement solutions for Collective Centre residents;
· Completion of the Private Property Repossession Process in Croatia and BiH;
· Signature of all outstanding bilateral refugee-related agreements (return agreements and social rights).
· Completion and implementation of National Action plans in the areas of asylum, migration, border management and visa policies.
· Development of a regional programme of action, integrating into a strategic, coherent and interrelated action plan projects linked to sustainable return, asylum, migration, border management and visa policies.
· Pursue close coordination and complementarity in the development of the MARRI Programme of Action with the SAP and its CARDS national and regional programmes.

Actions Undertaken
The Stability Pact Migration Asylum and Refugee Regional Initiative (MARRI) has succeeded, since its launch in December 2002, in gaining the involvement through a highly consultative process, of the EU and SP member states, representatives of the European Commission, the five SAP countries and the relevant international organizations in the development of a "Regional Programme for Action" on the often controversial issues of asylum, illegal/legal migration, visa and entry policies, integrated border management and return of displaced populations. This Programme of Action, once adopted, will then be presented to the meetings of the Working Table III and Regional Table of the Stability Pact scheduled for the end of May in Croatia as well as to the EU-Balkans summit meeting in Thessaloniki on 21 June 2003.

Meanwhile, implementation of activities identified in the "Agenda for Regional Action" (AREA) launched in 2001 and updated in 2002 under the Stability Pact Regional Return Initiative (RRI) continues as per set objectives.  Programmes, which are increasingly focussed and consistent with the AREA policy and recommendations, continue to be carried out by the concerned governments and the specialized agencies such as UNHCR, OSCE, OHR, IOM and others in the framework of the Stability Pact. Additional programmes which were identified during the consultative process are resourced and implemented through the MARRI Secretariat directly:

On sustainable return and integration of refugees/IDPs, return trends continue to be encouraging particularly in BiH with numbers expected to reach the same level as 2002 (110,000 returns); the Property repossession rate in BiH has passed the 70% mark and is expected to reach over 90% by the end of the year with some 250,000 claims to be processed and realized in total. The long outstanding bi-lateral issue of pension payments between Serbia & Montenegro and Croatia was finally resolved in March 2003. Housing programme development as regards financing instruments and policy development has successfully continued, with an increasing involvement of the private sector (pilot project Sarajevo completed/Belgrade project being under preparation), strengthening of the housing secretariat in Serbia with external expertise and 2 new Council of European Development Bank (CEB) loan agreements being negotiated (Euro 50 Mio); the regional housing policy and finance conference hosted by the CEB and the WB under the auspices of the SP will be held in April; the number of collective centre residents is gradually reducing and the regional data exchange project is now underway; regular regional inter-agency and intergovernmental coordination on key issues on political and technical level has continued successfully between Croatia, Serbia and Montenegro and BiH as demonstrated by the recent proposal by Croatian President Mesic for a tri-lateral summit and conference on return issues.

Evaluation
The added value of the SP is to provide a platform for key actors such as the EC with the CARDS programme to develop the regional components of their activities and to reach consensus has been recognized by all and is yielding results. Funding shortfalls and insufficient staffing, however, is hampering the development of the MARRI Regional Programme for Action, but the merger of MAI and RRI has certainly provided a new impetus and perspective to address the issue of sustainability of returns as regards its close links to the factors influencing migratory movements. The approach and perspective advocated by the return and displacement component of MARRI, stressing the importance of the inclusion of displacement issues into the regional and national socio-economic recovery process is to date widely reflected in key international and national statements, fora, reports and policy. Similarly reference to the importance of the MARRI regional programme for action in the field of asylum, illegal/legal migration, visa and entry policies, integrated border management and refugee return is being -or will be made- in the context of the SEECP, OSCE and forthcoming regional events.

Challenges
The development of the "Regional Programme for Action" needs to be completed in time to be reflected in the June EU-Balkans summit in Thessaloniki. Implementation will require adequate resources to strengthen national and regional action in order to create all necessary conditions for the durable and sustainable solutions required for the more than one million refugees and displaced persons and implement the activities as identified in the MARRI working groups. The recognition of the importance of regional cooperation by the concerned governments must be an integral element not only to ensure the implementation of durable and sustainable solutions, but also to manage the voluntary and involuntary migration movements as a pre-requisite for national and regional stability as well as for Euro-Atlantic integration.

 

VII.  Efficient Use of Resources

In the reporting period, SCSP management has undertaken efforts to revise staff and resource needs of the Pact and to match them with the decisions of the December 2002Regional Table (RT) in Thessaloniki.

While the six core objectives are the main result of the Thessaloniki RT, the RT conclusions also reflected the wish of the EU, as expressed by the EU Presidency, to maintain separate meetings of the Working Tables in order to draw on the advantages of their distinct functioning and working patterns.  The RT also reiterated, moreover, other important functions of the Stability Pact such as the security and defence area.

For the Secretariat, this means that an increased need for overall co-ordination and coherence not least in view of the SCSP's complementary role vis-a-vis the SAP needs to be matched with suitable functional support for each of the Working Tables. Emphasis is placed on performance and quality expertise, efficient and accountable use of resources and on allowing donors and seconding governments to participate in and to support the Pact and its initiatives.

While optimising the use of staff resources is an ongoing process and will be continued over the whole year, most changes will be implemented by June 2003.

The current budgetary agreement "CFSP/2002/012/Stability Pact-Busek" already includes considerable cost savings, especially in the field of hospitality and travel. The results of the 1st quarterly financial assessment show that SCSP's tight day-to-day financial management is ensuring full compliance with the budget.

 

Povratak