Proposal for a Council Decision on the principles, priorities and conditions contained in the European Partnership with Bosnia and Herzegovina {SEC(2004) 375}
Date: 2004-06-02
Institutions: European Commission
Subjects: Bosnia and Herzegovina, EU relations, European integration, cooperation policy, financial aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.4.2004 
COM(2004) 205 final/2 

CORRIGENDUM 
Titre. 
Concerne toutes les versions linguistiques, 
sauf le NL. 

Proposal for a 

COUNCIL DECISION 

on the principles, priorities and conditions contained in the European Partnership with 
Bosnia and Herzegovina 

. 

(presented by the Commission) 

{SEC(2004) 375} 

EN 

   EN 

 
 
 
  
 
 
EXPLANATORY MEMORANDUM 

The  Thessaloniki  European  Council  of  19  and  20  June  2003  reiterated  its  determination  to 
fully  and  effectively  support  the  European  perspective  of  the  Western  Balkan  countries  and 
stated that “the Western Balkans countries will become an integral part of the EU, once they 
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the 
Western  Balkans  including  the  annex  “The  Thessaloniki  Agenda  for  the  Western  Balkans: 
moving towards European integration”, which aims at further intensifying relations between 
the  European  Union  and  the  Western  Balkans,  building  also  on  practices  used  in  the 
enlargement  process,  inter  alia  through  the  introduction  of  European  Partnerships.  The 
Commission has been invited to submit the first set of European Partnerships to the Council 
for approval with the next Annual Reports on the Stabilisation and Association process (SAp) 
due end of March 2004.  

The European Partnership for Bosnia and Herzegovina is based on the provisions of Council 
Regulation  (EC)  No.  533/2004.  It  lists  short-  and  medium  term  priorities  for  Bosnia  and 
Herzegovina‘s preparations for further integration with the European Union identified in the 
Commission’s  2004  Annual  Report  and  serves  as  a  checklist  against  which  to  measure 
progress. The European Partnership for Bosnia and Herzegovina reflects its current stage of 
preparation and is tailored to its needs. Bosnia and Herzegovina is expected to respond to the 
European  Partnership  by  preparing  a  plan  with  a  timetable  and  details  of  how  it  intends  to 
address the European Partnership’s priorities. The progress in implementing the priorities will 
be monitored regularly by the Commission, notably in the SAp Annual Reports and through 
the structures set up under the SAp.  

The  European  Partnership  priorities  should  form  the  basis  for  programming  of  the  financial 
resources making up Community assistance, which will continue to be the assistance provided 
for  under  existing  financial  instrument(s),  in  particular  Council  Regulation  (EC)  No 
2666/2000 of 5 December 2000 (CARDS). 

The proposed Council Decision has no financial implications. 

In view of the above, the Commission invites the Council to adopt the attached decision. 

2 

 
 
  
 
Proposal for a 

COUNCIL DECISION 

on the principles, priorities and conditions contained in the European Partnership with 
Bosnia and Herzegovina 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  533/2004  on  the  establishment  of  European 
Partnerships in the framework of the Stabilisation and Association process1 and in particular 
to Article 2 thereof, 

Having regard to the proposal from the Commission,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Thessaloniki  European  Council  of  19  and  20  June  2003  endorsed  the 
“Thessaloniki  Agenda  for 
towards  European 
integration”  where  the  drawing-up  of  European  Partnerships  is  mentioned  as  one  of 
the means to intensify the Stabilisation and Association process. 

the  Western  Balkans:  moving 

Council  Regulation  (EC)  No  533/2004  sets  out  that  the  Council  is  to  decide,  by  a 
qualified majority and following a proposal from the Commission, on the principles, 
priorities and conditions to be contained in the European Partnerships, as well as any 
subsequent adjustments. 

Council Regulation (EC) No 533/2004 states that the follow up of the implementation 
of  the  European  Partnerships  will  be  ensured  through  the  mechanisms  established 
under the Stabilisation and Association process, notably the Annual Reports.  

The Commission's 2003 Feasibility Study and 2004 Annual Report present an analysis 
of  Bosnia  and  Herzegovina’s  preparations  for  further  integration  into  the  European 
Union and identify a number of priority areas for further work. 

In  order  to  prepare  for  further  integration  into  the  European  Union,  Bosnia  and 
Herzegovina should develop a plan with a timetable and details in terms of measures 
Bosnia and Herzegovina intends to take to this end.  

1 OJ L. 

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HAS DECIDED AS FOLLOWS:  

Article 1 

In  accordance  with  Article  1  of  Council  Regulation  (EC)  No  533/2004,  the  principles, 
priorities and conditions in the European Partnership for Bosnia and Herzegovina are set out 
in the annex hereto, which forms an integral part of this Decision. 

The implementation of the European Partnership shall be examined through the mechanisms 
established under the Stabilisation and Association process.  

Article 2 

Article 3 

This  Decision  shall  take  effect  on  the  third  day  following  its  publication  in  the  Official 
Journal of the European Communities. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

1. 

INTRODUCTION 

The  Thessaloniki  Agenda  identifies  ways  and  means  of  intensifying  the  Stabilisation  and 
Association process, inter alia through the introduction of European Partnerships. 

Based  on  the  Commission’s  Annual  Report,  the  purpose  of  the  European  Partnership  for 
Bosnia and Herzegovina is to identify priorities for action in order to support efforts to move 
closer  to  the  European  Union  within  a  coherent  framework.  The  priorities  are  adapted  to 
Bosnia  and  Herzegovina’s  specific  needs  and  stage  of  preparation  and  will  be  updated  as 
necessary. The European Partnership also provides guidance for financial assistance to Bosnia 
and Herzegovina. 

It is expected that Bosnia and Herzegovina will adopt a plan including a timetable and details 
in terms of how they intend to address the European Partnership priorities. The plan should 
also  indicate  ways  to  pursue  the  Thessaloniki  agenda,  the  priorities  on  fighting  organised 
crime and corruption identified at the 2002 London Conference and at the Ministerial meeting 
held in Brussels on 28 November 2003 in the framework of the EU-Western Balkans Forum 
and  the  measures  presented  by  each  of  the  Western  Balkan  countries  at  the  meeting  of  5 
November  2003  in  Belgrade  as  a  follow-up  to  the  Ohrid  Conference  on  integrated  border 
management.  

2. 

PRINCIPLES 

The Stabilisation and Association process remains the framework for the European course of 
the Western Balkan countries, all the way to their future accession. 

The  main  priorities  identified  for  Bosnia  and  Herzegovina  relate  to  its  capacity  to  meet  the 
criteria  set  by  the  Copenhagen  European  Council  of  1993  and  the  conditions  set  for  the 
Stabilisation  and  Association  process,  notably  the  conditions  defined  by  the  Council  in  its 
Conclusions of 29 April 1997 and 21 – 22 June 1999, the content of the final declaration of 
the Zagreb summit of 24 November 2000 and the Thessaloniki agenda. 

3. 

PRIORITIES 

The Commission’s Annual Report assesses progress made and notes areas where the country 
needs  to  increase  its  efforts.  The  priorities  listed  in  this  European  Partnership  have  been 
selected on the basis that it is realistic to expect that Bosnia and Herzegovina can complete 
them  or take them substantially forward over the next years. A distinction  is  made between 
short-term  priorities,  which  are  expected  to  be  accomplished  within  one  or  two  years,  and 
medium-term priorities, which are expected to be accomplished within three to four years. 

The  European  Partnership  indicates  the  main  priority  areas  for  Bosnia  and  Herzegovina’s 
preparations  for  further  integration  into  the  European  Union,  based  on  the  analysis  in  the 
Feasibility  Study  and  the  2004  Annual  Report.  It  should  be  recalled  that  where  legislative 
approximation  is  concerned,  incorporation  of  the  acquis  into  legislation  is  not  in  itself 
sufficient; it will also be necessary to prepare its full implementation. 

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3.1 

SHORT-TERM 

POLITICAL SITUATION  

DEMOCRACY AND RULE OF LAW 

•  Prepare elections – BiH should assume full organisational and financial responsibility for 

the 2004 municipal elections. 

•  More effective governance - Implement the Law on the Council of Ministers and the Law 
on  Ministries.  Convene  meetings  of  the  Council  of  Ministers  and  of  Parliament  with 
sufficient  regularity  to  tackle  government  business  expeditiously.  Ensure  that  new  State 
ministries  and  institutions  created  by  the  2002  Law  on  the  Council  of  Ministers  become 
properly operational. Implement fully the 2003 – 2004 “Action Plan for Priority Reforms” 
and establish for 2004 (and following years) a consolidated State-level government work 
plan  matching  policy  priorities  with  budgetary 
(Feasibility  Study 
recommendation) 

resources. 

•  Follow up security sector reforms - Implement the Law on Defence. Adopt and begin to 

implement the Law on the Intelligence and Security Agency.  

•  More  effective  public  administration  -  Make  further  effort  towards  creating  an  effective 
public  administration,  including  developing  a  comprehensive  and  cost-estimated  Action 
Plan for public administration reform with a clear distribution of competences (for example 
in the areas of police and health). Fund and co-operate with the Civil Service Agencies at 
State and Entity levels. (Feasibility Study recommendation) 

•  Effective judiciary - Adopt legislation establishing a single High Judicial and Prosecutorial 
Council  for  BiH  with  the  aim  of  consolidating  appointment  authority  over  the  Entity 
judiciaries  and  strengthening  the  independence  of  the  judiciary  throughout  BiH.  Provide 
appropriate staff and funding for the State Court. (Feasibility Study recommendation)  

HUMAN RIGHTS AND PROTECTION OF MINORITIES 

•  Effective  human  rights  provisions  -  Adopt  and  bring  into  force  outstanding  legislation 
supporting refugee returns. In particular, introduce, adopt and implement legislation on the 
BiH  Refugee  Return  Fund.  Complete  the  transfer  of  the  human  rights  bodies  to  BiH 
control. Ensure that unresolved cases of the Human Rights Chamber are dealt with and that 
the Chamber’s responsibilities are transferred to the Constitutional Court. Provide adequate 
funding  for  the  Court.  Assume  full  national  responsibility  for  the  State  Ombudsman  and 
make  progress  on  the  merger  of  the  State  and  Entity  Ombudsmen.  (Feasibility  Study 
recommendation) 

REGIONAL AND INTERNATIONAL CO-OPERATION 

•  Comply with existing conditionality and international obligations - Fully co-operate with 
ICTY, particularly on the part of RS, notably in bringing indicted war criminals to justice 
before the international tribunal […] Complete outstanding Road Map steps. Comply with 
the Dayton-Paris Peace Accords. Take steps to implement BiH’s Council of Europe post-
accession  criteria,  especially  in  areas  of  democracy  and  human  rights.  (Feasibility  Study 
recommendation) 

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ECONOMIC SITUATION 

EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS 

•  Ensure macro-economic stability – Maintain  a stable macro-economic  framework in the 
context  of  International  Monetary  Fund  programme  and  demonstrate  compliance  with 
international financial institution conditionality. 

•  Improve  the  business  environment  -  Drive  forward  enterprise  privatisation.  Adopt  and 
implement  reforms  identified  as  part  of  the  “Bulldozer  Initiative”.  Enact  legislation  on 
corporate governance.  

•  Reliable  statistics  -  Implement  the  Law  on  Statistics,  aiming  at  the  creation  of  a 
functioning  system  of  statistics  with  clear  lines  of  responsibility  and  co-ordination 
mechanisms. (Feasibility Study recommendation). 

MANAGEMENT OF PUBLIC FINANCES  

•  Budget  legislation  -  Adopt  and  start  to  implement  a  budget  law  covering  multi-annual 
budget planning and forecasting and start to elaborate a consolidated government account. 
(Feasibility Study recommendation) 

•  Budget practice - Take steps to record all income accruing to public authorities at different 
levels  of  government,  including  grants  and  other  forms  of  international  assistance. 
(Feasibility Study recommendation). 

EUROPEAN STANDARDS  

•  European  integration  -  Ensure  the  proper  and  full  functioning  of  the  Directorate  for 
European  Integration,  including  its  aid  co-ordination  capacities.  (Feasibility  Study 
recommendation) 

INTERNAL MARKET AND TRADE  

•  Respect international standards – Ensure the quick, complete and faithful implementation 

of all negotiated free trade agreements.  

•  Develop  the  BiH  single  economic  space  -  Establish  the  Competition  Council.  Introduce 
provisions on the mutual recognition of products in the legal order of BiH and implement a 
consistent  and  effective  public  procurement  regime  throughout  the  country.  Remove  all 
duplicate  licences,  permits  and  similar  authorisation  requirements  to  allow  service 
providers  (including  financial  institutions)  to  operate  throughout  BiH  without  having  to 
fulfil unnecessary administrative requirements. Create a single business registration system 
that is recognised throughout BiH. (Feasibility Study recommendation) 

•  Consistent trade policy - Establish a coherent and comprehensive trade policy and revise 
existing  legislation  to  ensure  a  consistent  policy  on  free  zones.  Establish  at  State-level 
certification  and  other  procedures  for  the  export  of  animal  products  and  a  phytosanitary 
office  that  are  EC-compatible,  with  a  view  to  promoting  exports,  but  also  enhancing 
standards and the single economic space. (Feasibility Study recommendation) 

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•  Customs and taxation reform – Proceed with implementation of the recommendations of 
the  Indirect  Tax  Policy  Commission.  Ensure  parliamentary  adoption  of  the  Law  on  the 
Indirect  Tax  Authority,  including  the  adoption  of  related  enabling  legislation.  Ensure 
implementation, including the appointment of a Director for the Indirect Tax Authority and 
the  functioning  of  the  new  customs  authority.  Demonstrate  progress  in  preparing  the 
introduction  of  VAT  with  a  view  to  beginning  on  schedule.  (Feasibility  Study 
recommendation)  

•  Certificates of origin – Ensure the reliability of all BiH certificates of origin. 

SECTORAL POLICIES  

•  Integrated  energy  market  -  Implement  Entity  Action  Plans  for  the  restructuring  of  the 

electricity market. (Feasibility Study recommendation) 

•  Public broadcasting - Adopt legislation on PBS in line with European standards and the 
Dayton  –  Paris  Peace  Accords  and  take  steps  to  ensure  the  long-term  viability  of  a 
financially  and  editorially  independent  single  state-wide  public  broadcasting  system  for 
Bosnia  and  Herzegovina,  whose  constituent  broadcasters  share  a  common  infrastructure. 
(Feasibility Study recommendation) 

CO-OPERATION IN JUSTICE AND HOME AFFAIRS  

•  Tackling  crime,  especially  organised  crime  -  Build  up  a  State-level  law  enforcement 
capacity by allocating the necessary resources and facilities to ensure the full functioning 
of the State Information and Protection Agency and the BiH Ministry of Security. Proceed 
with structural police reform with a view to rationalising police services. (Feasibility Study 
recommendation) 

•  Managing  asylum  and  migration  -  Ensure  the  establishment  and  operation  of  proper 

structures dealing with asylum and migration. (Feasibility Study recommendation) 

•  Addressing  terrorism  –  Increase  international  co-operation  and  implement  relevant 
international conventions on terrorism. Improve co-operation and exchange of information 
between police and intelligence services within the State and with other states. Prevent the 
financing and preparation of acts of terrorism. 

3.2 

MEDIUM-TERM 

POLITICAL SITUATION  

DEMOCRACY AND THE RULE OF LAW  

•  Prepare  elections  -  Assume  full  organisational  and  financial  responsibility  for  the  2006 

and other elections. 

•  Assume  responsibility  for  government  -  Work  towards  full  national  responsibility  for 
policy  formulation  and  decision-making.  All  State-level  ministries  should  be  adequately 
financed  and  operational  plans  in  place  for  institutions  required  by  a  future  SAA  and 
further  European  integration.  Ensure  proper  policy-making  co-ordination  between  all 
levels of government. 

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•  Further  improve  the  functioning of public administration - Implement the  consolidated 
Action  Plan  on  public  administration  reform  and  improve  administrative  procedures. 
Improve policy-making and co-ordination capacities and build a training capacity for civil 
servants within BiH (including those dealing with European integration issues) 

•  Further  strengthen  the  judicial  system  -  Ensure  equal  standards  of  appointment, 
promotion,  discipline  and  training  for  judicial  and  prosecutorial  staff  throughout  BiH. 
Ensure  full  BiH  responsibility  for  the  BiH  State  Court,  the  Prosecutor’s  Office  and  the 
High Judicial and Prosecutorial Council in terms of finance, administration and personnel. 

•  Advance police reform - Implement recommendations of functional and strategic reviews 

of the police sector and ensure co-operation among law enforcement agencies. 

•  Improve  the  fight  against  corruption  –  Make  progress  in  combating  corruption  and 
demonstrate  compliance  with  relevant  international  commitments.  Adopt  and  implement 
an  anti-corruption  strategy,  ensure  effective  implementation  of  the  law  on  conflict  of 
interests and enhance capacity to investigate and prosecute corruption. 

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

•  Ensure respect of human rights - Ensure a level of human rights protection comparable to 
or  better  than  that  achieved  under  international  supervision  and  demonstrate  effective 
protection  of  minority  rights, 
those  of  Roma.  Ensure  comprehensive 
implementation of the Law on the Rights of National Minorities. 

including 

•  Complete  refugee  returns  -  Complete  the  refugee  return  process,  facilitating  refugees’ 

economic and social reintegration. 

•  Consolidate  the  office  of  the  Ombudsman  -  Complete  the  merger  of  State  and  Entity 

Ombudsmen and ensure the functioning of the new institution. 

REGIONAL AND INTERNATIONAL CO-OPERATION 

•  Ensure effective prosecution of war crimes - Demonstrate success in apprehending ICTY-
indictees  and  in  dismantling  networks  supporting  indicted  war  criminals.  Ensure 
continuous availability to ICTY of all documentation, materials and witnesses relevant to 
ongoing  investigations  and  /  or  prosecutions.  Assume  administrative  and  financial 
responsibility for the War Crimes Chamber of the State Court. 

•  Continue  regional  co-operation  –  Work  to  find  solutions  to  outstanding  bilateral  border 

issues with neighbouring countries. 

•  Implement  international  commitments  –  Comply  with  Thessaloniki  commitments  in 
terms  of  co-operation  in  matters  of  justice  and  home  affairs,  trade,  energy,  transport  and 
environment. 

ECONOMIC SITUATION 

EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS 

•  Promote further structural reform – Further improve corporate governance, reduce labour 
rigidities and ensure that commercial courts implement bankruptcy legislation. Allow the 

9 

 
 
  
 
market  to  operate  by  reducing  government  interference  and  lowering  the  ratio  between 
government expenditure and GDP.  

•  Facilitate business, in particular small and medium-sized enterprise (SME) development 
– Further develop co-ordination on SME policy and continue to implement the principles 
of the European Charter for Small Enterprises. 

•  Further  develop  State-level  capacities  in  statistics  -  Elaborate  and  implement  a  multi-
annual activity plan for statistics and produce regular, sound estimates of nominal and real 
GDP, including coherent data on (un)employment, inflation, balance of payments, wages 
and industrial production. Ensure co-operation with Eurostat. 

MANAGEMENT OF PUBLIC FINANCES 

•  Ensure the operation of a consolidated government account - Ensure that a consolidated 

government account is fully operational within the State Ministry of Finance. 

•  Develop  capacities  in  economic  planning  -  Continue  and  reinforce  the  Medium-Term 
Economic Framework (MTEF) process for all budgetary users. Ensure transparent budget 
execution and regular financial reporting.  

•  Further  reinforce  budget  preparation  -  Incorporate  (currently)  off-budget  resources  into 
budgets  and  maintain  reasonable  budgeting  based  on  realistic  revenue  projections. 
Strengthen budget preparation processes in all ministries.  

•  Deal with domestic debt – Enforce the comprehensive plan on domestic debt agreed with 

the IMF. 

EUROPEAN STANDARDS 

•  European integration – Implement a European integration strategy. Develop the capacity 
for  progressive  legal  harmonisation  with  the  acquis  and  expand  BiH’s  role  in  CARDS 
programming and implementation with the long-term aim of allowing the decentralisation 
of assistance.  

INTERNAL MARKET AND TRADE 

•  Single  market  and  business  -  Demonstrate  the  effective  functioning  of  the  Competition 
Council  and  the  Entity  Offices  for  Competition  and  Consumer  Protection.  Further 
strengthen  the  implementation  of  a  consistent  and  effective  public  procurement  regime, 
including the functioning of the Public Procurement Agency and the Procurement Review 
body. Continue to ensure the free movement of goods and services within BiH. Ensure the 
full  functioning  of  the  institutes  for  standards,  metrology  and  intellectual  property  and 
facilitate  links  /  information  flows  with  public  /  private  enterprises.  Ensure  consistent 
implementation of related legislation (especially on intellectual property). 

•  Trade management capacity – Reinforce policy planning and negotiation capacities in the 

Ministry of Foreign Trade and Economic Relations. 

•  Trade standards – Further develop the capacity of the State Veterinary Office and ensure 
the  full  functioning  of  the  Phytosanitary  Office  with  a  view  to  reaching  EU  standards. 

10 

 
 
  
 
Create a regulatory environment for technical standards, intellectual and industrial property 
rights in line with EU standards. 

•  Customs  and  taxation  -  Demonstrate  that  free  zones  are  being  managed  in  a  manner 
compatible  with  the  EU  acquis.  Complete  the  customs  merger  and  ensure  full 
implementation  of  the  customs  reform  plan.  Develop  the  ITA  Governing  Board  into  a 
Fiscal  Council  with  a  policy-setting  capacity.  Further  strengthen  administrative  capacity 
for  both  customs  and  taxation.  Monitor  the  implementation  of  State-level  VAT  and 
continue  to  develop  collection  and  control  strategies  to  reduce  progressively  the  level  of 
tax fraud for both direct and indirect taxation. 

SECTORAL POLICIES 

•  Public  broadcasting  system  -  Fully  implement  agreed  PBS  reforms.  Maintain  the 

independence of the Communications Regulatory Agency. 

•  Integrated  energy  market  –  Ensure  harmonisation  of  the  regulatory  environment  for 
energy  and  the  establishment  of  a  single  State  regulatory  body,  including  the 
implementation  of  the  law  on  the  formation  of  ISO  and  TRANSCO.  Implement  the 
commitments in the 2003 Athens Memorandum of Understanding.  

•  Environment – Strengthen State-level capacity in the field of environment by ensuring the 

full functioning of a State Environment Agency. 

CO-OPERATION IN JUSTICE AND HOME AFFAIRS 

•  Border management - Implement international commitments made at the May 2003 Ohrid 
Conference  on  security  and  border  management  and  the  measures  presented  at  the  EU  – 
Western Balkans ministerial forum on JHA of November 2003. Endorse and implement an 
Integrated  Border  Management  Strategy.  Facilitate  regional  co-operation  and  trade  by 
improving  border  management  and  transport  facilities.  Further  develop  co-operation 
between  the  State  Border  Service,  the  customs  service,  the  police  and  the  Prosecutor’s 
Office  to  interdict  and  prosecute  trafficking  and  other  cross-border  crime.  Further 
implement  the  national  anti-trafficking  plan.  Improve  the  administrative  capacity  of  the 
visa issuing regime, particularly the checking of visa applications.  

•  Organised crime - Demonstrate full implementation of all measures agreed in the Action 
Plan  against  Organised  Crime  presented  at  the  Brussels  JHA  ministerial  meeting  of 
November 2003.  

•  Migration  and  asylum  –  Consistently  enforce  the  Law  on  the  Movement  and  Stay  of 
Aliens and Asylum. Demonstrate effective national management of asylum and migration 
policies  and  monitor  and  report  on  operations.  Continue  to  negotiate  and  conclude 
readmission agreements. 

4. 

PROGRAMMING 

Community assistance under the Stabilisation and Association process to the Western Balkan 
countries will be provided by the relevant financial instruments, and in particular by Council 

11 

 
 
  
 
Regulation  (EC)  No  2666/20002;  accordingly,  this  Decision  will  have  no  financial 
implications.  In  addition,  Bosnia  and  Herzegovina  will  have  access  to  funding  from  multi-
country  and  horizontal  programmes.  The  Commission  is  working  with  the  European 
Investment Bank and the International Financial Institutions, in particular the European Bank 
for  Reconstruction  and  Development  and  the  World  Bank,  with  a  view  to  facilitate  the  co-
financing of projects relating to the Stabilisation and Association process.  

5. 

CONDITIONALITY 

Community assistance under the Stabilisation and Association process to the Western Balkan 
countries is conditional on further progress in satisfying the Copenhagen political criteria and 
in particular progress in meeting the specific priorities of this European Partnership. Failure to 
respect  these  general  conditions  could  lead  the Council  to  take  appropriate  measures  on  the 
basis of Article 5 of Regulation (EC) No 2666/2000.  

Community  assistance  shall  also  be  subject  to  the  conditions  defined  by  the  Council  in  its 
Conclusions of 29 April 1997 and 21 – 22 June 1999, in particular as regards the recipients’ 
undertaking to carry out democratic, economic and institutional reforms. 

6. 

MONITORING 

The  follow  up  of  the  European  Partnership  is  ensured  through  the  mechanisms  established 
under  the  Stabilisation  and  Association  process,  notably  the  Annual  Report  on  the 
Stabilisation and Association process. 

2 OJ L 306, 7.12.2000. p.1. 

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