Stabilisation and Association Process (SAP)

The European Union's approach to South Eastern Europe has been governed since 1999 by the Stabilisation and Association Process (SAP) offering the Western Balkan countries a framework promoting peace, stability, freedom and economic prosperity. The SAP sets out common political and economic goals. The achievement of these goals is supported by contractual, economic and financial instruments to strengthen reforms and accompany the transition process in the Western Balkans. Regional co-operation is a fundamental part of the procedure.

The two main instruments allowing the EU to stabilise and progressively bring the Balkan countries in line with its own economic and legal systems are:

• the Stabilisation and Association Agreements (SAA), including trade preferences,

• the technical and financial assistance (IPA – Instrument for Pre-accession Assistance).

Thessaloniki Council 2003

The Stabilisation and Association process was launched in 1999 at the Zagreb Summit, opening to the countries of Western Balkans the possibility of EU membership. In 2003, the European Council in Thessaloniki reconfirmed the perspective of future membership for all countries of the region and confirmed Albania, Bosnia-Herzegovina, Montenegro and Serbia as "potential candidate countries". At the same time the Thessaloniki Council reaffirmed that EU membership would depend on the countries' efforts to achieve the necessary reforms – the "Thessaloniki agenda" was adopted to spell out the way forward for the countries concerned. The EU further stated that Kosovo (under UNSCR 1244/9 ) has a clear European perspective, in line with the rest of the Western Balkans.

SAA plays a key role within the framework of the SAP. It represents a far-reaching contractual relationship between the EU and each Western Balkans country, entailing mutual rights and obligations. Such an association has a high political value. It is based on the gradual implementation of a free trade area and reforms designed to achieve the adoption of EU standards. It is designed to contribute to socio-economic development, strengthening of democracy and the rule of law and political stabilisation of the country and the region, to foster regional cooperation and to establish a close, long-term association between the contracting parties.

Conditions for SAA

The SAA is subject to certain conditions, namely

• the respect by the beneficiary countries and territories of fundamental principles of democracy and human rights,

• the readiness of the countries concerned to develop economic relations between themselves and to engage in economic reforms and regional integration through trade.

The EU has completed the negotiation of Stabilisation and Association Agreements with all countries of the region. Three such Agreements are in force:

• with the former Yugoslav Republic of Macedonia (entry into force on 1 May 2004),
• with Croatia (entry into force on 1 February 2005) and
• with Albania (entry into force on 1 April 2009).

Montenegro signed the Stabilisation and Association Agreement on 15 October 2007, and the Interim Agreement entered into force on 1 January 2008. The SAA with Bosnia Herzegovina was signed on 16 June 2008; the Interim Agreement entered into force 1 July 2008. Serbia signed the SAA on 29 April 2008 and the Interim Agreement entered into force on 1 February 2010.

Turkey

Turkey has had a long association with the European integration project. It made its first application to join what was then the European Economic Community (EEC) in July 1959. The EEC’s response to this first application was to propose the creation of an association between the EEC and Turkey, which led to the signature in Ankara of the Association Agreement in 1963. An Additional Protocol was signed in November 1970, setting out a timetable for the abolition of tariffs and quotas on goods circulating between Turkey and the EEC. A Customs Union was established in 1995 and has contributed significantly to the development of trade relations between the EU and Turkey. Turkey became a candidate country at the Helsinki European Council of December 1999.

Iceland

Iceland is a member of the EU´s internal market through the 1994 Agreement on the European Economic Area (EEA) between the EU and the EFTA-members Iceland, Norway and Liechtenstein. The EEA Agreement provides for the inclusion of all internal market legislation that covers inter alia the four freedoms - the free movement of goods, services, persons and capital - throughout the 30 EEA States. Agriculture is not part of the EEA. In addition, the Agreement covers co-operation in other important areas such as research and development, education, social policy, the environment, consumer protection, tourism and culture. A substantial part of EU legislation has thus been adopted into Icelandic law.

More info on the SAP