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A milestone in the European Union’s relations with the Western Balkan countries

The European Council [148 Ko] and the E.U.-Western Balkans Summit of Thessaloniki , held on 19-20 June and 21 June, respectively, marked an important step in the deepening relationship between the EU and the Western Balkan countries: Albania; Bosnia and Herzegovina; Croatia; the former Yugoslav Republic of Macedonia; Serbia and Montenegro.

The Commissioner for External Relations, Chris Patten said:

"Thessaloniki will send two important messages to the Western Balkans: The prospect of membership of the EU is real, and we will not regard the map of the Union as complete until you have joined us. We in the European Commission will do all we can to help you succeed. But membership must be earned. It will take the sheer hard work and applied political will of those in power in the region. How far you proceed along the road towards European Integration, and how fast, will be up to you."

Objectives

The Thessaloniki Summit, which was a follow-up to the Zagreb Summit of November 2000, provided an opportunity for the EU and the Western Balkan countries to assess three years of work in stability, democracy and economic recovery in all countries of the region.

In Thessaloniki, the European Union sent a strong message that it is committed to the Western Balkans as a long-term investment in peace, stability, democracy and economic development. The EU underlined once again the prospect of EU membership offered at the European Councils of Feira and Copenhagen and pledged full support to the endeavours of the Western Balkan countries, introducing European Partnerships and other support structures, inspired by the work with the accession countries. At the same time, the countries of the region, aware that there is much hard work ahead and that their European future lies primarily in their own hands, commited themselves to intensify the pace of necessary reforms.

"The Thessaloniki agenda for the Western Balkans: Moving towards European integration"

The European Council of Thessaloniki adopted proposals set out by the Commission in its recent Communication "The Western Balkans and European Integration". The EU will outline the concrete ways in which it is willing to support the countries of the Western Balkans as they move towards European Integration. These concrete measures, aimed at supporting the preparation of the Western Balkan countries for future integration into European structures and ultimate membership into the Union, are set out in "The Thessaloniki agenda for the Western Balkans" . The rate of progress will depend on the performance of the countries themselves in a wide range of reforms of their economies, standards of democracy, human rights, good governance and respect for rule of law.

The Stabilisation and Association Process will remain the framework of the EU policy for the region, but it will be enriched with elements drawn from the recent successful enlargement process. These include: 

• European Partnerships. These partnerships, drawn up for each Western Balkan country, will identify, on a regular basis, priorities and obligations to be fulfilled. EU financial assistance will be directed to the priorities set out in the partnerships. Each country will draw up a national action plan for implementation of the partnerships, which will provide a clear agenda against which to measure progress.

• Strengthened political co-operation in the area of Common Foreign and Security Policy. In Thessaloniki, a high-level multilateral political forum, the EUI-Western Balkans Forum, is expected to be launched. Furthermore, the EU will invite the Western Balkan countries to associate themselves with certain EU demarches, declarations and common positions in the framework of the Common Foreign and Security Policy.

• Enhanced support for institution building. Secondment of civil servants from EU Members to work as advisers ("twinning programmes") has already begun in Albania and Croatia and will now be extended to all the countries of the region. The Technical Assistance Information Exchange Office (TAIEX) that was set up as part of the pre-accession strategy to provide targeted technical assistance to candidate countries on bringing their systems in line with Community legislation, will start operating in the Western Balkans.

• Promoting economic development. In order to increase the region’s export possibilities and to promote economic growth, the extension of the pan –European diagonal cumulation of origin to the countries of the region will be prepared, in a manner consistent with all community policies and depending on the Western Balkan countries administrative capacity. Furthermore, Western Balkan countries will be invited, in Thessaloniki, to commit themselves to the principles enshrined in the European Charter for Small Enterprises.

• Opening of Community programmes to Western Balkan countries. Priority areas could include education and training, culture, research, energy, environment, civil society, SME support and anti-fraud co-ordination.

Background information

The Stabilisation and Association Process (SAP)

The Stabilisation and Association Process is the European Union’s policy framework for the countries of the Western Balkans. The EU is not just an economic club, it is a Community of values related to democracy, the rule of law, respect for human rights, protection of minorities and a market economy. Sharing these values is a key part of the SAP and the basis for EU candidate status. The SAP has three major elements:

i. Stabilisation and Association Agreements

An important pillar of the SAP is the conclusion of individual Stabilisation and Association Agreements (SAA). By signing an SAA, the Western Balkan countries commit:

• to gradual alignment to EU legislation in a number of areas,

• to a gradual establishment of a free trade area with the EU,

• to conclude bilateral agreements with their neighbours in the region on, for example, trade and free movement of workers, services and capital,

• to co-operate with the EU on issues such as justice, visa, border control, illegal immigration, money laundering, transport, energy etc.

ii. Autonomous trade measures

By offering autonomous trade measures, the EU has already opened its market to nearly all products originating from the Western Balkan countries. The EU is now the region’s largest trading partner, with over half of all exports going to the European market. Today more than 80% of all goods from the Western Balkan region enter Europe with no customs restrictions.

iii. Financial assistance

The EU has invested a tremendous amount in the stabilisation and development of the Western Balkans. The EU financial assistance to the Western Balkans started with humanitarian aid during the war and has since shifted to reconstruction and now, increasingly, institution building. Since 1991, through its various aid programmes, the European Union has provided more than € 7 billion in assistance to the countries of the Western Balkans. In 2000, all previous mechanisms of European Union assistance to the region were replaced by a single, new instrument: Community Assistance for Reconstruction, development and Stabilisation (CARDS), aimed at underpinning the EU’s political objectives in the region. The full financial envelope for 2000-2006 is € 4.65 billion.

The 2003 SAP report

The 2003 annual SAP report by the European Commission recognises some important progress made over the last twelve months: restoration of the stability in the region; improved security situation; democratically-elected Governments in place throughout the region; massive reconstruction across the region; progress made in assisting return of refugees and displaced persons; sustained growth, inflation being brought under control, increasing trade. There are still shortcomings in terms of governmental culture and functioning of democratic institutions, institutional capacity building, social and economic development, reform of judiciary, the fight against organised crime and corruption, respect of human rights and protection of minorities, further action to facilitate sustainable return of refugees and displaced persons, and full compliance with international obligations. Further progress in structural reforms is needed to turn the countries into fully functioning market economies.

Recent progress achieved by the countries of the Western Balkans allowed for further movement towards the Union through the SAP. This positive trend is illustrated by: the continuation of the ratification procedure of the SAAs with the former Yugoslav Republic of Macedonia and Croatia; the opening and progress of negotiations for a SAA with Albania; the launching by the Commission of a feasibility study for a SAA with Bosnia and Herzegovina; the adoption in Serbia and Montenegro of the Constitutional Charter and the presentation of the Internal Market and Trade Action Plan; the Croatian application of membership, currently under examination by the European Commission.

See also:

• Stabilisation and Association Process for South East Europe - Second Annual Report, March 2003