Communication from the Commission to the Council and the European Parliament - The Western Balkans and European Integration
Date: 2003-05-21
Institutions: European Commission
Subjects: European integration, Western Balkans, cooperation policy, economic transition, fight against crime, judicial cooperation, political reform, rule of law

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 21.5.2003
COM (2003) 285 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

The Western Balkans and European Integration

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

The Western Balkans and European Integration

1. 

THE WESTERN BALKANS AND THE CHALLENGE OF ENLARGEMENT

The European  Council  in Feira in June 2000  confirmed  the  objective  of  the  fullest  possible
integration  of  the  countries  of  the  Western  Balkans1  into  the  political  and  economic
mainstream  of  Europe  and  recognised  the  countries  as  potential  candidates  for  EU
membership.  The  Copenhagen  European  Council  in  December  2002  reaffirmed  this
perspective. It underlined the European Union’s determination to continue to support them in
their  efforts  to  realise  their  European  aspirations.  The  Brussels  European  Council  in  March
2003 stated that “the future of the Western Balkans is within the EU” and invited “the Council
and  the  Commission  to  examine  ways  and  means,  based  also  on  the  experience  of  the
enlargement  process,  to  further  strengthen  the  Union's  policy  towards  the  region.”  The
preparation of the countries of the Western Balkans for integration into European structures is
a major priority of the European Union. The unification of Europe will not be complete until
these countries join the European Union.

The Stabilisation and Association process (SAP) is the EU’s policy for relations between the
Union and the Western Balkans.  It is designed  to  help  the  five  countries  with  their  reforms
and to bring them closer to European Union membership. It serves an invaluable purpose in
promoting  stability  in  the  region.  We  now  need  to  enrich  the  policy  in  order  to  further
reinforce stability as well as to move the countries towards closer association, and ultimately
membership of the Union.

Following  the  signature of the  Treaty  of  Athens  in  April  2003,  which  paves  the  way  to  the
accession of ten new Member States, the Thessaloniki Summit provides the occasion to give a
new  impetus  to  the  Stabilisation  and  Association  process.  The  success  of  the  countries  of
central and eastern Europe in satisfying the criteria for EU accession should give inspiration
and encouragement to the countries of the Western Balkans which share this aspiration. This
Communication suggests how the Stabilisation and Association process can be enriched, and,
in particular, how experience from the current enlargement process can be used to develop it
further defining what can be considered a shared agenda for European integration.

2. 

INTENSIFYING  THE  STABILISATION  AND  ASSOCIATION  PROCESS  -  A  NEW
PARTNERSHIP

The  Stabilisation  and  Association  process,  its  different  instruments,  the  prospects  it  offers
and, in particular, the countries’ own efforts, have enabled them to make substantial progress.
Considerable  further  efforts  are  needed,  however,  to  address  the  priorities  attached  to  the
Stabilisation  and  Association  process  and  to  move  towards  satisfying  the  criteria  for  EU
membership  established  by  the  Copenhagen  European  Council  in  1993  and  laid  down  in
Articles 49 and 6 of the EU Treaty. The task now is to ensure that progress already made is

1 

Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia and Serbia and
Montenegro.

2

                                                
irreversible  and  the  foundation  for  further  steps  forward.  There  is  a  need  to  go  beyond
reconstruction  and  rehabilitation  and  to  support  political  and  economic  transition,  including
when appropriate the approximation of EU legislation, with a view to the eventual goal of EU
membership. The European Union will strengthen its support for the countries of the Western
Balkans in their endeavours to meet these challenges.

The EU’s  commitment and  assistance  need to  be  matched  by  a  genuine  commitment  of  the
governments  to  make  necessary  reforms,  to  establish  the  necessary  administrative  capacity,
and to co-operate amongst themselves. The one major challenge common to all countries of
the region remains the building of strong, fully functioning states capable of delivering on the
needs  of  their  citizens,  of  ensuring  effective  regional  co-operation  and  of  more  advanced
relations  with  the  Union.  In  this  context,  high  priority  must  be  given  to  the  fight  against
organised crime and corruption; progress in this field is essential for assuring the rule of law,
creating  confidence  in  state  institutions,  generating  private  investment  and  bringing  the
countries  closer  to  European  Union  membership.  The  achievement  of  this  objective  will
depend on the countries’ own political will and capacities, as well as their ability to align with
European standards and values.

Given the European perspective of the countries of the Western Balkans, as confirmed by the
2002  Copenhagen  European  Council  and  by  the  2003  Brussels  European  Council,  the
Commission  proposes  to  develop  the  Stabilisation  and  Association  process  further  by
introducing certain elements inspired by the pre-accession process.

(cid:1)

European Integration Partnerships

The  Commission’s  second  Annual  Report  of  March  20032,  recognises  progress  made  in  all
countries  but  also  highlights  shortcomings,  particularly  in  the  functioning  and  capacity  of
public  institutions,  the  application  of  the  rule  of  law,  and  in  the  continuing  problems  of
organised crime and corruption. These issues need to be addressed in order to permit work to
advance on political and economic reform and on adoption, implementation and enforcement
of the acquis.

With  this  in  mind,  consideration  should  be  given  to  introducing  European  Integration
Partnerships for the countries of the Western Balkans. Inspired by the pre-accession process,
these partnerships would identify priorities for action in supporting efforts to move closer to
the  European  Union.  The  purpose  of  these  Partnerships  would  be  to  identify  short  and
medium-term  reforms  which  the  countries  need  to  carry  out,  to  serve  as  a  checklist  against
which  to  measure  progress,  and  to  provide  guidance  for  assistance  under  the  CARDS
programme.  They  would reflect the particular stage  of  development  of  each  country  and  be
tailored to its specific needs.

The priorities of the Partnerships would be based on the Commission’s political and strategic
priorities in the light of the assessments in the Annual Reports, with due consideration to the
Copenhagen accession criteria and to issues particular to the Western Balkans, including the
1997  conditionality3.  They  would  be  drawn  up  following  informal  consultations  with  the
countries concerned. The Commission would then present a proposal for a Council decision
approving each Partnership.

2 
3 

COM (2003) 139 Final
General Affairs Council Conclusions, 29-30 April 1997

3

                                                
The  countries  of  the  region  would  be  expected  to  respond  to  the  European  Integration
Partnerships by preparing and implementing Action Plans, with a timetable and details of how
they intend to address the Partnership’s priorities. The progress in implementing this would be
followed  through  the  SAA  structures,  where  they  exist,  or  through  a  regular  dialogue.  It
would be monitored regularly by the Commission, notably in the Annual Reports.

(cid:1)

Enhanced support for institution building

Twinning has proved to be an effective tool for institution building in the candidate countries
and could be equally effective for the SAA countries. Twinning supports the secondment of
civil servants from EU Member States to work  as advisers to  beneficiary  institutions.  It has
been  available  for  institution  building  in  the  SAP  countries  under  the  CARDS  programme
since  October  2002.  Twinning  projects  have  been  launched  in  Albania  and  Croatia  and  are
under preparation for the rest of the region. Twinning will henceforth be incorporated in the
CARDS programme, as a tool for transferring administrative skills to the SAP countries.

The  Technical  Assistance  Information  Exchange  Office  (TAIEX)  was  set  up  as  part  of  the
pre-accession  strategy  to  provide  targeted  technical  assistance  to  the  candidate  countries  on
the acquis. Its services  are also suited to the needs of the countries of the Western Balkans.
Concrete modalities, including availability of human resources, for this TAIEX assistance are
currently  under  discussion.  Monitoring  and  assessing  the  countries’  legislation  will  be
developed further to ensure conformity with EU standards. The results of this assessment will
be  included  in  the  Annual  Reports  and  will  lead  to  periodic  revisions  of  the  European
Integration Partnerships.

Considering the need to improve the knowledge and skills of civil service staff in the region,
the  Commission  will  encourage  the  founding  of  a  regional  school  or  institute  for  Higher
Education on Public Administration Reform.

In all these efforts, particular attention should be given to the provision of expertise from the
new member states, in the light of their own successful transition process and preparations for
EU membership. By sharing their expertise with their neighbours they can make a significant
contribution to their development.

(cid:1)

Supporting the rule of law – co-operation in justice and home affairs

The rule of law  is  a  fundamental  value  of  the  European  Union.  It  is  essential  for  economic
development,  the  return  of  refugees,  protection  of  human  and  minority  rights  and  the  fight
against  organised  crime  and  corruption.  Progress  in  the  justice  and  home  affairs  area  is
crucial.

The  Commission  will  initiate  a  dialogue  with  the  countries  of  the  region  with  the  aim  of
identifying  achievable,  measurable  and  realistic  benchmarks  to  assess  progress  in  the  JHA
field. This will also serve to single out priorities in the JHA field in the European Integration
Partnerships. The countries have expressed a particular interest in a liberalisation of EU’s visa
regime  and  its  migration  policy  in  general.  The  Commission  would  be  prepared  to  lead
concrete  discussions  with  the  countries,  within  the  framework  of  the  Stabilisation  and
Association  process,  regarding  the  requirements  for  how  to  take  these  issues  forward  in
concrete terms. Assistance programmes should be strengthened in this priority field.

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(cid:1)

Participation in Community programmes

Participation  in  selected  Community  programmes  could  be  extended  to  the  SAP  countries.
The international co-operation under the RTD 6th Framework programme is already open to
the  countries  of  the  Western  Balkans.  Building  on  the  experience  from  the  TEMPUS
programme,  it  would  be  particularly  useful  for  the  region  to  be  included  in  Community
programmes,  for  example  covering  education,  vocational  training  and  energy,  at  the
appropriate time and depending on each  country’s needs and capacities. Participation would
help familiarise the countries with Community policies and working methods and contribute
to  preparing  them  for  a  closer  relationship  with  the  Union.  The  Commission  is  ready  to
examine the necessary legal and financial issues in order to achieve this objective.

(cid:1)

Promoting economic development

The transition from centrally planned to functioning market economies requires reform efforts
in many areas, including privatisation and financial sector development. The Commission will
continue to provide assistance in this area.

Trade  is  a  cornerstone  of  the  Stabilisation  and  Association  process.  Following  the
introduction  of  the  European  Union’s  trade  measures  in  the  region,  exports  from  the  these
countries  to  the  Union  have  increased  substantially.  The  network  of  free  trade  agreements
between  the  countries  will  further  stimulate  trade,  investment  and  thereby  economic
development. It is of great importance that the countries make full use of the potential that the
trade measures, as well as of the network of free trade agreements, provide. The Commission
will  develop  its  assistance  and  other  possible  measures  to  improve  the  countries’  ability  to
take advantage of these liberal trade measures. The creation of a free trade area in the region
in the medium term would be desirable since it would enable the countries to reap additional
benefits of trade liberalisation .

An extension of the system on pan-European diagonal cumulation of origin to the countries of
the region – subject to it being applied in a manner which is fully consistent with all relevant
community policies - would also serve this purpose. In addition, it would constitute a further
step  towards  promoting  greater  intra-regional  trade,  which  is  essential  for  their  economic
development and would  require increased co-operation and mutual  trust,  thereby supporting
the  overall  objective  of  the  Stabilisation  and  Association  process.  The  countries’  different
stages  of  preparation  would  require  a  step-by-step  approach  so  that  only  those  countries
which  fulfil  all  the  requirements  prescribed  could  join  the  system,  including  having  the
capacity to manage and control such a system. A Stabilisation and Association Agreement or
an  Interim  Agreement  would  first  need  to  be  in  place  for  a  country  to  participate  in  the
system.

Small and medium-sized enterprises are a key source of jobs, innovation and wealth and are
essential  for  transforming  centrally  planned  economies  into  competitive  market  economies.
Consequently, it is important to improve the environment in which small and medium-sized
enterprises  operate.  Commitment  by  the  Western  Balkans  countries  to  the  principles
enshrined in the European Charter for Small  Enterprises would serve this purpose.  It would
allow them to share good practice with other European countries.

In  the  economic  sphere,  the  Commission  proposes  to  hold  regular  economic  dialogue  with
each country.

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A specific agreement governing energy trade would have enormous advantages in attracting
investment into this strategic sector.  The  Commission will  endeavour to come forward with
proposals  for  extending  the  Internal  Energy  Market  to  the  region  as  a  whole  by  the  end  of
2003 and will recommend to the countries that this be done on a legally binding basis.

Scientific  and  technological  development  is  an  essential  tool  for  economic  stabilisation  and
development; the modalities of co-operation in this field between the Union and the Western
Balkans will be further examined by the Ministerial meeting in Thessaloniki on 27 June.

(cid:1)

Responding to new needs – financial support

The  CARDS  programme  will  continue  to  be  the  main  financial  instrument  to  support  the
Stabilisation  and  Association  Process.  Following  an  initial  focus  on  physical  reconstruction
and  rehabilitation,  emphasis  has  shifted  to  institution  building,  the  strengthening  of
administrative capacity and justice and home affairs. While other national or  regional needs
might  have  to  be  addressed  in  the  future,  the  Commission  has  proposed  an  increase  of  the
CARDS budget with a view, in particular, to addressing these priorities, taking into account
each country’s particular needs and capacity.

In  case  of  special  need,  the  Community  is  ready  to  examine,  in  co-ordination  with
international financial institutions, the possibility of granting, on an exceptional basis, macro-
financial  assistance.  This  will  be  subject  to  certain  conditions  and  will  depend  on  the
availability of financial resources.

(cid:1)

Enhancing regional co-operation

Regional  co-operation  is  an  integral  part  of  the  preparation  for  integration  into  European
structures.  The  Commission  is  encouraged  by  substantial  progress  in  this  area  and  the
increasing number of regional activities and agreements, including the creation of a regional
electricity  market  in  South  East  Europe  as  agreed  in  the  Athens  Memorandum  of
Understanding of November 2002 with the intention to broadened this to all energy questions.

The countries of the Western Balkans should be encouraged progressively to take ownership
of  regional  co-operation  though  initiatives  such  as  the  South  East  Europe  Co-operation
Process, which they themselves have sponsored. Cross border co-operation with EU Member
States should also be encouraged.

The Stability Pact plays an important role in supporting this process in such areas as refugee
return,  migration,  freedom  of  movement,  the  fight  against  organised  crime,  trade  and
investment, energy, transport and infrastructure.

(cid:1)

Efforts to strengthen democracy - parliamentary co-operation

Strengthening parliaments in the Western Balkans and promoting their further integration into
the  network  of  regional  or  international  parliamentary  structures  contributes  to  good
governance in the region.

Stabilisation  and  Association  Parliamentary  Committees  could  be  established  with  all  the
countries  of  the  region.  The  European  Affairs  Committees  of  the  Parliaments  should  be
encouraged  to  develop  their  contacts  at  regional  level  in  the  framework  of,  for  example,  a
Balkan Conference of European Affairs Committees. This process could be taken further by
this Conference developing relations with parliaments of the Member States and the European

6

Parliament, for example by applying for a special status in the COSAC,4 which meets during
each EU Presidency. This would enable the European Parliament, the national parliaments of
the Member States, the Candidate Countries and of the Western Balkans to exchange views
on EU related matters regularly.

(cid:1)

Improving political co-operation

The  countries  of  the  Western  Balkans  should  be  invited  to  associate  themselves  with  EU
declarations, Common Positions and other decisions in the framework of the CFSP. This will
reinforce the alignment of priorities and bring them closer to the EU in the political sphere.

Political  dialogue  is  an  important  element  of  the  Stabilisation  and  Association  process.  As
pointed  out  in  the  Commission’s  second  Annual  Report,  many  issues  are  common  to  the
countries  of  the  region  or  have  a  cross-border  dimension.  Political  dialogue  between  the
Union and all countries of the region could be developed further. The Summit in Thessaloniki
is  an  important  occasion  for  this.  Dialogue  should  also  be  developed  on  a  regular  basis  at
other levels.

3. 

CONCLUSIONS AND RECOMMENDATIONS

In light of the above, the European Commission’s conclusions and recommendations are the
following:

(cid:1)  The  preparation  of  the  countries  of  the  Western  Balkans  for  future  integration  into
European  structures  is  a  major  priority  of  the  European  Union.  These  countries  should
have  a  clear  perspective  of  joining  the  European  Union  when  they  have  satisfied  all  the
necessary criteria.

(cid:1)  The  Stabilisation  and Association  process  has  laid  the  foundation  for  the  further  reforms
required  for  the  countries  to  prepare  for  a  closer  relationship  with  the  European  Union,
with the goal of membership and should be further reinforced by the measures proposed in
this Communication.  The process will be strengthened  further to draw  the  countries  ever
closer to the Union in a shared agenda for European integration.

(cid:1)  While the European Union will provide all support possible, advancement in the process of
European  integration  will  depend  mainly  on  each  country’s  own  commitment  and
capability as fully functioning states to political and economic reform as well as adherence
to the core values and principles of the Union.

(cid:1)  The countries of the Western Balkans need to develop further concrete co-operation among
themselves particularly in such areas as refugee return, migration, freedom of movement,
the fight against organised crime, trade, energy and transport.

(cid:1)  The  countries  of  the  Western  Balkans  should  establish  a  regional  framework  for
parliamentary  co-operation  and  develop  relations  with  the  European  Parliament  and
Parliaments of the Member States and the Accession Countries.

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Conférence des Organes Spécialisés en Affaires Européennes

7

                                                
(cid:1)  The introduction of European Integration Partnerships, inspired by the pre-accession phase
of the current enlargement, will give a fresh impetus to reform. The Commission could be
invited to develop further the concept of European Integration Partnerships with a view to
presenting these with the next SAP reports.

(cid:1)  The countries should be invited to associate themselves with certain declarations, Common
Positions and other decisions in the framework of the CFSP. Political dialogue at different
levels should be strengthened.

(cid:1)  Economic dialogue should now be extended to all the countries of the region.

(cid:1)  Support for institution building under the CARDS programme should be strengthened by
further expanding twinning programmes, by  extending TAIEX-like services to the region
and  by  closely  monitoring  legislation  and  administrative  capacity.  Particular  attention
should  be  given  to  mobilising  expertise  from  the  new  Member  States,  which  have  had
recent successful experience of transition and of pre-accession preparations.

(cid:1)  In the  field  of  justice  and home affairs, the  Commission  will  initiate  a  dialogue  with  the
countries  in  the  region  with  the  aim  of  establishing  key  priorities  and  benchmarks,
including  in  the  area  of  organised  crime  and  corruption.  Programmes  should  be  further
strengthened  in  this  area.  The  Commission  encourages  the  countries  in  the  region  to
establish national action plans to fight organised crime.

(cid:1)  As a means  of  increasing  the  region’s  export  possibilities  and  promoting  investment  and
economic  growth,  the  system  of  pan-European  diagonal  cumulation  of  origin  should  be
extended to the countries of the Western  Balkans when the individual countries  fulfil the
necessary conditions, and applied in a manner fully consistent with all relevant community
policies.

(cid:1)  Small and medium sized enterprises are particularly important for economic development
and  for  the  successful  transition  to  a  fully  functioning  market  economy.  The  Western
Balkan countries could make a commitment to the principles in the European Charter for
Small Enterprises.

(cid:1)  Participation  in  relevant  Community  programmes  should  be  further  extended  to  the
Western Balkans. The Commission could be invited to make the necessary proposals.

The  Commission  suggests  that  the  orientations  in  this  Communication  should  guide  the
European Union in working with the countries of the Western Balkans to bring them closer to
the shared goal of EU membership.

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List of abbreviations

Acquis

Acquis communautaire – Community legislation

CARDS

Community Assistance for Reconstruction, Development and Stabilisation

CFSP

Common Foreign and Security Policy

COSAC

Conférence des Organes Spécialisés en Affaires Européennes

EU

JHA

SAA

SAP

European Union

Justice and Home Affairs

Stabilisation and Association Agreement

Stabilisation and Association process

TAIEX

Technical Assistance and Information Exchange Office

9