B4-0265, 0267 and 0268/96

Resolution on financing the reconstruction of the former Yugoslavia

The European Parliament,

- having regard to the Dayton Peace Agreement of 21 November 1995 and the negotiations in Rome on 17 and 18 February 1996,

- having regard to the Joint Action of 11 December 1995 adopted by the Council on the basis of Article J.3 of the Treaty on European Union with regard to the participation of the Union in the implementing structures of the peace plan for Bosnia-Herzegovina ((OJ L 309, 21.12.1995, p. 2.)),

- having regard to its transfer decision of 13 December 1995 to fund the activities of the High Representative in Bosnia-Herzegovina (C4-0588/95) ((Minutes of 15.12.1996, Part I, Item 4.)),

- having regard to the allocations made by the budget authority for the second reading of the 1996 Budget of 14 December 1995 ((1996 Budget lines for the reconstruction of former Yugoslavia: B7-540 Financial protocols with the former Yugoslavia - 6 mecu B7-541 Measures for the reconstruction of the former Yugoslavia - 7mecu (20 mecu in Chapter B0-40) B7-542 Special aid to refugees in the former Yugoslavia - 30 mecu B7-545 Europe for Sarajevo - 35 mecu B7-7002Application of sanctions - 8.75 mecu B8-010Mostar - 32 mecu.)) with regard to the reconstruction of the former Yugoslavia, not least by earmarking special aid for refugees,

- having regard to the decisions of the First Conference of Donors for the reconstruction of Bosnia-Herzegovina of 20 and 21 December 1995,

A. whereas, despite the Dayton Agreement, peace and reconciliation are precarious and fragile, and the international community has to act fairly and impartially in order to avoid any upheavals which might trigger a further outbreak of the civil war,

B. firmly convinced that the European Union should play an active role in the international actions for the reconstruction of former Yugoslavia,

C. whereas it is only reasonable that the United States, Japan and the wealthier Arab countries should be involved in the financing of reconstruction according to their relative wealth,

D. concerned about the execution of assistance measures and the attribution of funds of the budget of the Union for purposes of reconstruction in Bosnia- Herzegovina,

E. whereas the experience of the financing of the European Union's actions in Mostar has led to an undermining of the competences of the budget authority,

1. Believes that work on the reconstruction of the former Yugoslavia has to begin as soon as possible and that effective granting of reconstruction aid should be conditional upon implementation of the Dayton Peace Plan, respect for human rights and the results of the negotiations in Rome;

2. Is aware of the calculations of the World Bank but believes that an overall assessment of the cost of reconstruction should be made as soon as possible by the donor countries;

3. Believes that on the basis of this assessment a detailed financial breakdown of the financial commitments between the European Union, the United States, the Arab countries and Japan should be submitted forthwith, together with a precise timetable, preferably stretching to 2005;

4. Believes that all available financial instruments should be mobilised towards the reconstruction effort, notably the IMF, the World Bank, the EIB, and the EBRD; underlines the crucial importance of proper coordination between the various donors;

5. Believes that the financial contribution of the European Union should be funded by the redeployment of existing commitments and, when deemed necessary, by a revision of the financial perspectives, for which a trilogue should be convened under the appropriate procedures as laid down in the Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improving the budgetary procedure ((OJ C 331, 7.12.1993, p. 1.)),

6. As far as a partial redeployment of PHARE commitments is concerned, deems it necessary to reach an understanding with the budget authority on the integration of reconstruction projects into PHARE policy objectives and on the exact amount of European financial support that has been suspended following the war in former Yugoslavia; believes that such a redeployment should seek to minimise the impact on programmes operational in the countries that already receive support from the PHARE programme;

7. Insists that the existing external policies of the Union should not be adversely affected;

8. Believes that the swift reconstruction of former Yugoslavia should be linked to maximum transparency of the use of the financial support involved as well as stringent controls on the use thereof; stresses therefore the need for payments to be made within the framework of the Financial Regulation of the European Union;

9. Believes that an agreement should be reached between the competent services of the European Union and those NGOS involved in the work towards a lasting peace in which the tasks which are to be allocated to each organization are set out and prioritized;

10. Insists that the skills and knowledge of the refugees displaced by the war are used to the full in the process of reconstruction and their own rehabilitation;

11. Gives notice of its commitment to a speedy, successful and efficient reconstruction of the former Yugoslavia but underlines the fact that this can only be done by a process of negotiation between the Parliament, Council and Commission with regard to the proposed financing; to this end calls on the Commission and Council to participate in a trilogue before the Second Donor Conference in April 1996 to come to a clear picture on the present and future financing of the reconstruction of the former Yugoslavia;

12. Instructs its President to forward this resolution to the Commission, the Council and the parliaments and governments of the Member States of the European Union.