Opinion of the Committee of the Regions on the 2005 Enlargement package 2005/ELARG/001 and on the Communication from the Commission: The Western Balkans on the road to the EU: consolidating stability and raising prosperity
Date: 2006-10-11
Institutions: European Committee of the Regions
Subjects: European integration, Western Balkans, cross-border cooperation, economic development, economic stabilisation, political reform, regional cooperation

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Opinion of the Committee of the Regions on the 2005 Enlargement package 2005/ELARG/001 and
on the Communication from the Commission: The Western Balkans on the road to the EU: consoli-
dating stability and raising prosperity

THE COMMITTEE OF THE REGIONS

(2007/C 51/03)

Having regard to the Commission communication The Western Balkans on the road to the EU: consolidating
stability and raising prosperity (COM(2006) 27 final);

Having regard to the decision of the European Commission of 27 January 2006 to consult it on this
subject, under the first paragraph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of its president of 28 February 2006 to instruct the Commission for External
Relations and Decentralised Cooperation to draw up an opinion on the European Commission's strategy on
progress made in the enlargement process;

Having regard to the enlargement package 2005 (2005/ELARG/001);

Having regard to its opinion on the Proposal for a Council Decision on the principles, priorities and conditions
contained in the European Partnership with Croatia and with a view to focusing on the countries taking part in
the Stabilisation and Association Process (SAP), i.e. Albania, Bosnia and Herzegovina, the Former Yugoslav
Republic of Macedonia, and Serbia and Montenegro including Kosovo, with the exception of Croatia (CdR
499/2004 fin);

Having regard to its opinion on The role of the European Union's local and regional authorities in the democratic
consolidation process in the Western Balkans (CdR 101/2003 fin) (1);

Having regard to its opinion on the Communication from the Commission to the Council, the European Parlia-
ment, the European Economic and Social Committee and the Committee of the Regions on Civil Society Dialogue
between the EU and Candidate Countries (CdR 50/2006 rev. 1);

Having regard to the EU/Western Balkans Joint Press Statement of the Ministers of Foreign Affairs of the
Member States of the European Union, the acceding states, the candidate states and the potential candidate
Western Balkan countries issued in Salzburg on 11 March 2006 which affirmed the European perspective of
the Western Balkan states and, in accordance with the Conclusions of the 2003 Thessaloniki European
Summit, confirmed EU membership as the ultimate goal;

Having regard to the Stability Pact for South-East Europe established by the European Commission and 40
partner countries and organisations on 10 June 1999 as a means of preventing conflict and promoting
reconstruction in the Balkan region;

Having regard to the Resolution of the European Parliament of 16 March 2006 (2) on the Commission's
enlargement strategy paper;

Having regard to the Final Declaration of the Conference on The role of EU regional and local authorities
in the process of democratic consolidation in the Western Balkans region, Prishtina, 22 June 2005, CdR
145/2005;

Having regard to the conclusions of the conference of the CONST commission on the Contribution of
local and regional authorities to the protection of minorities and anti-discrimination policies, held in Vienna
(Austria) on 17 March 2006;

Having regard to the European Charter for Small Enterprises and the Report on the implementation of the
European Charter for Small Enterprises in Moldova and the countries in the Western Balkans (SEC(2006)
283);

Having regard to its draft opinion adopted on 22 June 2006 by the Commission for External Relations
and Decentralised Cooperation (CdR 115/2006 rev. 1), rapporteur: Mr Schausberger (AT/EPP);

(1) OJ C 73, 23.3.2004, p. 1.
(2) Brok Report A6-0025/2006.

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Whereas:

The CoR has dedicated an opinion exclusively to Croatia, this opinion will therefore focus on the remaining
countries making up the Western Balkans, i.e. Albania, Bosnia and Herzegovina, Montenegro, the former
Yugoslav Republic of Macedonia, and Serbia including Kosovo.

unanimously adopted the following opinion at its 66th plenary session of 11 and 12 October 2006
(meeting of 11 October):

1. The views of the Committee of the Regions

1.1 General comments

The Committee of the Regions

1.1.1
considers further progress in the Western Balkans to
be a joint European peace project which is fully consonant with
the founding principle of the Communities, and emphasises
that the Western Balkan countries, through their own efforts
and with the support of the European Union, should, as an inte-
gral part of the European family, eventually become an area of
peace, freedom, security and prosperity;

1.1.2
considers dealing with the past to be a prerequisite for
reconciliation between countries, peoples and ethnic groups in
the Western Balkans; emphasises in this connection the need
for the countries concerned to cooperate fully with the Interna-
tional Criminal Tribunal for the Former Yugoslavia (ICTY);

points out that membership of the European Union
1.1.3
not only involves the internal market or free movement of
people, but is equally concerned with the values shared by the
peoples and countries of the European Union: human dignity,
freedom, democracy, equality, the rule of law and respect for
including the rights of people who belong to
human rights,
minorities;

1.1.4 welcomes the progress made in the political and
economic reforms emerging from the European perspective of
the Western Balkan countries launched in Thessaloniki in 2003
and confirmed in Salzburg on 11 March 2006, and recognises
the major responsibilities which the international community
and Europe bear towards these countries;

1.1.5
is pleased that matters relating to the Western Balkans
are discussed not only in the various Council formations but
also in the General Affairs Council and that the results are to be
collated in June 2006;

1.1.6 welcomes the opening of negotiations on the Stabili-
sation and Association Agreement
(SAA) with Bosnia and
Herzegovina;

hopes that

1.1.7
the negotiations on a Stabilisation and
Association Agreement with Serbia will continue without delay
as soon as the Serbian negotiating partners have re-established
the prerequisite for this to happen;

observes that the Western Balkan countries have very
1.1.9
different political and administrative structures and traditions —
also in part at local and regional level — and display great diver-
sity in development; these factors must be adequately considered
in the transformation, stabilisation and democratisation process;

1.1.10
acknowledges the work programme drawn up by
Croatia, as chair-in-office of the South-East Europe Cooperation
Process (SEECP), for the period May 2006 to May 2007, the
success of which ultimately depends on the constructive coop-
eration of the countries of south-east Europe and which repre-
sents an important step towards the realisation of the European
perspective of this region.

1.2 Prospects for enlargement

1.2.1
underlines the European perspective of the Western
Balkan countries with the ultimate goal of EU membership; the
current debate on the prospects for enlargement thus does not
apply to these countries; the pace of enlargement must reflect
the capacity of the EU to absorb new Member States;

1.2.2
Western Balkans,
bring to the whole of the European Union;

recognises the importance, richness and value that the
the individual countries and peoples, will

1.2.3
reiterates its view that a debate has to be conducted
on the objectives and limits of the European Union, including
possible forms of cooperation with neighbouring states (e.
g. neighbourhood policy or privileged partnership). This means
giving those states which are not at present being offered the
prospect of accession proposals for a clearly defined European
economic, political and strategic relationship as part of a
strategy of encouragement
involving step-by-step integration
into the political and economic structures of Europe;

1.2.4
supports the European Parliament's request that the
Commission draw up a report by 31 December 2006 on the
absorption capacity, character and geographical
limits of the
European Union and expresses it willingness to make its
contribution to the own-initiative report which the European
Parliament intends to draw up on the subject;

1.1.8 welcomes the opening of negotiations on a Stabilisa-
tion and Association Agreement with Montenegro on 26
September 2006;

1.2.5
for the
stresses the importance of public support
enlargement process in both the acceding state as well as in the
current EU, but stresses that this should not be made an addi-
tional criterion for accession.

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2. The Committee of the Regions' recommendations

The Committee of the Regions

enterprises and calls for dialogue and cooperation between
communities, especially in areas where the population is mixed,
to be stepped up and for medium-term strategic plans to be
drawn up and implemented to this end;

2.1 Stable local and regional democracy; pluralist society

stresses that establishing democratically legitimised
2.1.1
political
institutions with the necessary funding and efficient
administrations at local and regional level is one key to lasting
stability; such institutions guarantee that the principles of subsi-
diarity, local responsiveness and partnership, as well as human
rights and fundamental freedoms, are applied in citizens' daily
lives;

2.1.2
emphasises that Stabilisation and Association Agree-
ments in preparation for future EU membership can succeed in
the long term only with strong involvement of
local and
regional authorities;

recommends that the Western Balkan countries sign
2.1.3
or ratify the European Framework Convention on Transfrontier
Cooperation between Territorial Communities or Authorities,
the European Charter for Regional or Minority Languages, and
the European Charter of Local Self Government (3) and ensure
their application; the same also goes for the Framework Conven-
tion for the Protection of National Minorities;

urges the Western Balkan countries to follow up the
2.1.4
commitments they undertook at the SEE regional ministerial
conference on effective democratic governance at
local and
regional
level (Zagreb, 24-25 October 2004) and prepare for
the follow-up conference to be held in Skopje (‘the former Yugo-
slav republic of Macedonia’) on 8-9 November 2006, under the
auspices of the Stability pact for South-eastern Europe and the
Council of Europe;

calls on the Western Balkan countries, in line with the
2.1.5
subsidiarity principle, to strengthen their sub-national spheres of
government, creating the necessary legal framework for doing
so, and to provide regions and municipalities with the requisite
resources to exercise their extended responsibilities;

2.1.6
calls on government and associations of regions and
local authorities in the Western Balkan region to work together
and develop the ‘capacity building’ initiatives and programmes
necessary for regions and local authorities to effectively perform
their functions; praises the initiative taken by the Council of
Europe to establish a Centre of Expertise for Local Government
Reform and invites the Commission to consider the possibility
of establishing partnerships with this Centre in order to imple-
ment effectively its assistance programmes;

2.1.8
recommends drawing on the experience of regions in
the Member States with their policies on respect for human
rights and protection of minority rights; only a legal basis and
policies that have a local impact and are accepted and supported
by the local population will be viable over the long term;

2.1.9
sees the EU accession process as a major incentive for
the acceptance of the coexistence of different ethnic groups;
points out that the solution of ethnic issues requires special
treatment in view of the complex legal situation and disparate
patterns of geographical settlement;

2.1.10
considers it essential in order to ensure the sustain-
able use of resources invested by the European Union, that the
regions, local authorities and their associations in the Western
Balkan countries are involved in framing and implementing all
Community programmes and are made (co-)responsible,
in
accordance with their administrative capacity; notes that the
Union has already provided funding to support political and
economic reforms to the tune of some EUR 5.4 billion for the
period 2000-2006; stresses the importance of continuing
financial support for the consolidation and continuation of part-
nerships, with measures for capacity-building primarily via the
pre-accession instrument, and expects these instruments to be
appropriately funded for the Western Balkan countries in the
coming financing period 2007-2013;

2.1.11
advocates promoting dialogue between the represen-
tatives of local and regional authorities of the Western Balkans
with the CoR; reaffirms its willingness to make a specific
contribution to building institutions and strengthening adminis-
trative capacity for national associations of the regions and local
authorities, for instance in joint consultative committees for the
countries that have the prospect of accession; believes it is
important to meet the wish of the regions and local authorities
of
information about governance,
policy advice and technical support from the Member States;

the Western Balkans for

2.1.12
calls for involvement of the CoR and regions in the
Member States, and of educational bodies (4) and European
regional organisations, such as the Association of European
Border Regions, with appropriate experience in setting up the
regional School for Higher Education in Public Administration
Reform (cf. COM(2006) 27, p. 11); recommends that training
programmes cover subjects such as decentralisation and regiona-
lisation, setting up and running regional and local authorities,
cooperation and diversity
cross-border
management;

and interregional

2.1.7
recommends facilitating and promoting the involve-
ment of all ethnic and population groups, and especially minori-
ties (non-majority population groups), in public life and in all
political bodies and administrative systems, as well as public

(3) A summary of the state of ratification can be found on the website

of the Council of Europe's Treaty Office:
http://conventions.coe.int.

(4) See for example training courses at the Competence Centre for South-
Eastern Europe at Graz University (Masters in South-East European Law
and European Integration); the Universities of Trento, Regensburg,
Budapest and Ljubljana (Joint European Masters in Comparative Local
Development); and the European Academy of Bozen, Graz University
and EIPA (Masters in European Integration and Regionalism), as well as
the postgraduate course in European Integration for the Universities of
Belgrade, Nis and Novi Sad, with the participation of the Universities of
Como, Frankfurt/Oder, Gorizia, Maribor, Salzburg (Tempus_JEP-
190104-2004).

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2.1.13 welcomes the outcome of the meeting of the Stabi-
lity Pact's Regional Table held in Belgrade on 30 May 2006, at
which the participants agreed to take ownership of a new coop-
eration framework operated by the region itself; declares its
readiness to participate in the work of the Regional Coopera-
tion Council (RCC), to be established in 2008, as the successor
to the Stability Pact, and to bring to bear in this council the
experience gained at regional and local level.

2.2 Cross-border and interregional cooperation

believes that political, cultural, social and economic
2.2.1
cross-border cooperation between the regions and municipalities
of the Western Balkan countries not only helps stimulate local
and national economies, but is also a concrete way to improve
mutual understanding and trust in the region and help to avert
ethnic conflicts;

2.2.2
calls on local and regional authorities in the European
Union to provide local and regional politicians and authorities
in the Western Balkan countries with more information about
practical experience in the framework of
twinning projects,
exchange programmes and seminars (5). The experiences of the
local and regional authorities in the countries which joined the
EU in 2004 are also particularly valuable here; asks the
Commission to provide more information through national
contact points to the local and regional authorities of
the
Member States on existing twinning projects in the European
Union;

2.2.3
recommends that the results of exchanging experience
be used for specific capacity-building at meetings between repre-
local and
sentatives of regional and municipal associations,
regional elected representatives, administrators and academics
from the EU and the Western Balkans countries, and refers to
the local democracy manual
(‘Toolkit of Local Government
Capacity-Building Programmes’) compiled by the Council of
Europe in September 2005 (6) and the Handbook on cross-
border cooperation, drawn up by the Association of European
Border Regions
and published by the European
Commission in nine languages;

(AEBR)

for

calls

the Technical Assistance

2.2.4
Information
Exchange Instrument (TAIEX), which began operating in the
region in 2004, not to limit its services to central government
administrations and business associations, but to extend them
more to regions, local authorities and their associations;

regards the forthcoming establishment of a local
2.2.6
border traffic regime at the external orders of
the Member
States as promising (COM(2005) 56, 23.2.2005) and recom-
mends that corresponding arrangements be made between the
Balkan countries (7) with the involvement of the Council of
Europe (8);

2.2.7
suggests that the Commission should draw on the
experience of CoR members, as well as national and European
associations of
to promote
regional, municipal and urban partnerships;

regions and local authorities,

sees cross-border cooperation as a modern instrument
2.2.8
for the protection of minorities and refers to Article 17 of the
Framework Convention for the Protection of National Minori-
ties.

2.3 Economy and employment

2.3.1
considers it appropriate that, when implementing
economic reforms, the European institutions should pay particu-
lar attention to combating unemployment, social exclusion and
discrimination,
since
economic and social policy issues (weak economies, high unem-
ployment, inadequate social cohesion) must be addressed at the
same time as political reform;

and to promoting

social dialogue,

in this context considers it essential to develop and
2.3.2
implement, with the involvement of
the regions and local
authorities, regional economic and employment concepts in the
Western Balkan countries
that aim to achieve sustainable
economic regeneration and create local employment and cross-
border links;

recommends,

in accordance with the

2.3.3
remits of
regional and municipal authorities, and drawing on successful
initiatives already implemented in the area, that advice centres
be further developed, or set up where they do not already exist,
to provide basic information about businesses and business and
to promote entrepreneurship mainly among people at a young
age (SEC(2006) 283),
in order to develop viable small and
medium-sized business structures, which make an important
contribution to employment;

2.2.5
draws attention to the responsibility of the regions
and local authorities of the Western Balkan countries in relation
to return of expellees and their accommodation, education,
employment
it necessary to
strengthen interregional cooperation in this sphere and to draw
on the experience of other countries, regions and local authori-
ties;

and integration; considers

(5) i.e. delegations of experts from national, regional and municipal autho-
rities who pass on what they have learned actually working in the
administrations of the Western Balkans countries. This proved very
effective during the pre-2004 accession preparations.

(6) Directorate of Cooperation for Local and Regional Democracy.

2.3.4
calls for support to be provided to local and regional
authorities to improve electronic communications and electronic
legal and
access to business information (advice, applications,
tax information), in order to help develop the local and regional
economic system;

(7) The Recommendations for cross-border security and cooperation on
the future external borders of the EU, taking account of the Schengen
Treaty of the Association of European Border Regions are a useful basis
for discussion.

(8) The Chisinau Political Declaration of the Committee of Ministers of the
Council of Europe of 6 November 2003 called for the conclusion of
levels. The negotiations are well
regional agreements at several
advanced and meet EU requirements.

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suggests that

information and business promotion
2.3.5
systems at local and regional level should be further developed;
proposes that the problem of the brain drain be countered by
setting up regional platforms for both R&D and education and
training in order to provide prospects for the future.

2.4 Education and culture

advocates building on the experience of the TEMPUS
2.4.1
programme, which in 2001-2005 was financed with a budget
totalling EUR 83 million for measures in the Western Balkans
and which each year offered up to 250 students and more than
1 000 teachers the opportunity to study in other countries and
to participate in further training, as well as continuing to
increase the opportunities
for participation in the Youth
programme, also in rural areas;

recommends that

the Commission create a special
2.4.2
window in Erasmus Mundus to allow the region's students to
take European Master's degree courses, especially ones that
include international classes and periods of work experience; in
its view,
this approach encourages mutual cultural under-
standing and the development of economic relations;

2.4.3
believes it important that there is a two-way learning
process. It is not only the citizens in the countries making up
the Western Balkans who should benefit from the possibilities
of studying in EU countries, but EU citizens should also be
encouraged to study in the Western Balkan countries;

2.4.4
considers it necessary to put into effect the planned
relaxation of the conditions for allowing students and teachers
to spend time in the Member States and to offer the younger
generation a European perspective; refers to the planned facili-
tation of visas, particularly for students;

2.4.5
calls on the Commission to involve regional and local
authorities in designing, planning and implementing the restora-
tion and renovation of monuments and cultural heritage sites;

points to the potential for cultural tourism in this
2.4.6
region as an instrument for economic development, and there-
fore encourages current efforts to preserve both structural and
cultural heritage, including in rural areas;

2.4.7
stresses the important role of cooperation in the areas
of art and culture for the long-term stabilisation of the Western
Balkan countries and their integration into EU art and cultural
cooperation projects;

2.4.8 wishes to initiate consideration of the idea of estab-
lishing an electronic portal for the Balkans which would provide
an additional platform for dialogue and cooperation, especially
for young people, in the Western Balkans. Such a portal could
promote not only education and training but also direct social
and cultural exchanges.

2.5 Miscellaneous policy areas

reminds the local and regional authorities of

2.5.1
their
responsibility for the award of permits in key tourist areas, e.g.
with a view to the sustainable future development of high-
quality eco-tourism;

calls on the Commission when applying the Instru-
2.5.2
ment
for Pre-Accession Assistance (IPA), which replaces the
existing pre-accession regulations and the CARDS Regulation (9),
to bear in mind the evaluation of
the CARDS programme,
which explicitly recommends more decentralised planning and
the programme. The regional dimension of
management of
CARDS is relatively weak; strategic leadership is lacking and
local partners see the programme as difficult to access. This
criticism must be taken into account in further developments in
this area in respect of the Western Balkans;

2.5.3
calls on the Western Balkan countries to incorporate
the Lisbon objectives as updated by the European Council of 23
and 24 March 2006 into their reforms and to involve the
regional and municipal level in planning and implementation;
calls for comprehensive strategic plans to be drawn up for
regional development;

2.5.4
proposes that the national authorities responsible for
environmental issues (which are often regional and local autho-
rities) should be involved in the main activities of the European
Environment Agency, which from 2006 will provide support
for these countries' programmes through selected Community
instruments under PHARE and CARDS 2005.

2.6 Information and communication

2.6.1
points to the need to take due account of the EU's
absorption capacity throughout the negotiations, while stres-
sing that this is not a new accession criterion, and to judge
progress made on the basis of
transparent criteria and not
according to political considerations; urges that an honest
approach be adopted to public expectations in the EU Member
States and the European partner countries;

2.6.2
calls on the Member States and the European institu-
tions to keep citizens abreast of the negotiations through a
more intensive communication effort about the enlargement
process than that mounted for Romania and Bulgaria (which
was overshadowed by the debate about the constitution in the
European Convention), and to involve regional and local autho-
rities (via the CoR) in planning and implementing information
concepts and measures, since these authorities are closest to citi-
zens and have contacts with local and regional media;

2.6.3
points to the need for the Community institutions and
the Western Balkan countries to inform the general public
better about the objectives,
issues and requirements for both
sides in the integration process, in order to avoid that process
being seen as something imposed from ‘outside’ or ‘above’, and
points again to the important role played by regional and local
authorities in all communication measures;

(9) CARDS: Community Assistance for Reconstruction, Development and

Stabilisation.

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favours the expansion of civil society dialogue —
2.6.4
which must take place through free,
independent and profes-
sional media — to include the Western Balkans; suggests that
the Western Balkans countries should, as soon as possible, be
allowed to take part in the Community action programme to
promote organisations involved in active European citizenship
(civic participation).

2.7 Albania

2.7.1
endorses the Commission's proposal not to limit Alba-
nia's Action Plan on the Prevention of and Fight against Corrup-
tion to national authorities, but to extend it to include local and
regional authorities (SEC(2005) 1421, p. 16);

2.7.2
cooperation with neighbouring regions in the EU countries;

suggests stepping up interregional and cross-border

2.7.3
supports the European Parliament's call to strengthen
anti-corruption measures, guaranteed media freedom and voting
rights that meet European standards.

2.8 Bosnia and Herzegovina

2.8.1
is pleased to note that Bosnia and Herzegovina have
regional authorities with a specific remit which play an impor-
tant role in addressing ethnic problems; points out that, in a
strongly regionalised state without a political tradition or culture
of decentralisation, it is necessary to improve the financing and
efficiency of structures;

considers a constitutional reform to improve govern-
2.8.2
ment institutions to be necessary, and trusts that the conditions
will be established for proper conduct of the elections planned
for October 2006;

2.8.3
points to the experience and knowledge of regional
representatives in federal countries (e.g. Belgium) in improving
the legal
relations between the
national state and its various sub-units (entities and cantons),
and believes that innovative solutions are needed;

framework and procedural

2.8.4 welcomes the extension of regular economic policy
discussions to include Bosnia and Herzegovina;

2.8.5
calls for support to be provided to promote the inte-
gration of refugees and expellees in the cities and municipalities;
see the readmission agreement of 31 January 2005 between
Croatia, Bosnia and Herzegovina, and Serbia and Montenegro.

highlights the importance of the multi-ethnic nature
2.9.2
of the autonomous province of Vojvodina and welcomes the
spirit of mutual trust and tolerance that holds sway there, and
the practice of involving the various national groups in political
decision-making;

2.9.3 welcomes the numerous activities of the autonomous
province of Vojvodina in the field of cross-border, regional and
interregional cooperation along the lines of the European inte-
gration process, and thus advocates the greater involvement of
the regional and local authorities in further SAA negotiations;

urgently recommends local government reform to
2.9.4
institutions and administrations
consolidate the local political
and to equip them with the requisite resources since, alongside
the strengthening of the regional level, this reflects the princi-
ples of subsidiarity,
local responsiveness and partnership and
relieves some of the strain on the national state;

2.9.5
expects that Serbia will, with all possible speed, sign
the European Framework Convention on Transfrontier Coopera-
tion and ratify the European Charter of Local Self-Government;

2.9.6
encourages the authorities of Serbia to establish a
basis for continuing the SAA negotiations through cooperation
with the International Criminal Tribunal for the Former Yugo-
slavia (ICTY) in The Hague.

2.10 Kosovo

2.10.1
believes real reconciliation can only be achieved by a
settlement of the issue of Kosovo's status that involves a Euro-
pean perspective and a permanent solution as regards the rights
of citizens of different nationalities; expects the direct discus-
sions (10) being conducted in Vienna under the aegis of the
United Nations to be concluded by the end of 2006;

expects effective implementation of constitutional
2.10.2
provisions at local level on an efficient model of decentralisation
providing long-term safeguards for the rights of minorities and
ethnic groups, an improvement in the very unsatisfactory situa-
tion as regards the rule of law and legal certainty, better political
representation of minorities, and enhanced protection of mino-
rities (minority languages);

urges that

2.10.3
relations between Kosovo Serbs and
Kosovo Albanians be improved, that all groups be involved in
democratic and administrative life, and that protection of mino-
rities be ensured;

considers it essential to strengthen administrative
2.10.4
capacity at local level, especially as regards devising economic
development strategies and combating organised crime and
financial crime (COM(2005) 561, p. 28);

2.9 Serbia

2.9.1
regrets that, in the course of adopting a new Serbian
constitution, the opportunity was not taken to consolidate the
decentralisation process and believes that further strengthening
of autonomy would also improve cohesion in the country as a
whole;

2.10.5
regards improving public services for all local autho-
rities as particularly important in order to avoid the develop-
ment or entrenchment of ‘parallel structures’.

(10) Based on the ‘guiding principles’ of the Contact Group with the USA,

the UK, Germany, France, Italy and the Russian Federation.

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2.11 Montenegro

2.11.1
expects the result of the referendum of 21 May 2006
to be recognised by all sides; calls on all the parties involved to
conduct a constructive dialogue on coexistence;

2.11.2 welcomes the fact that the referendum on Montene-
grin independence of 21 May 2006 was conducted democrati-
cally, transparently and correctly, in accordance with European
and international standards, as unreservedly confirmed by repre-
sentatives of the Committee of the Regions, acting for the first
time as referendum observers;

2.11.3 welcomes the fact
that, with their extraordinarily
high turnout of 86.5 %, the people of Montenegro demon-
thus
strated their democratic
lending the result a high degree of legitimacy;

responsibility and maturity,

2.11.4
sees the result of the referendum, 55.5 % support for
independence, as a call to advocates and opponents of indepen-
dence to work together closely on the implementation of inde-
pendence, both internally and between Montenegro and Serbia;

2.11.5
recommends that, in the course of the independence
process, the parties abstain from unilateral action and take all
the necessary steps in consultation;

2.11.6
expects the new state of Montenegro to sign and
ratify as soon as possible the European Framework Convention
on Cross-border Cooperation,
for
Regional or Minority Languages, the European Charter of Local
Self-Government and the Framework Convention for the Protec-
tion of National Minorities;

the European Charter

2.11.7
recommends that the Montenegrin authorities make
a start without delay on drawing up, with Serbia, a model for
the common frontier
cross-border
(Sandschak), and aim to do the same with the other neigh-
bouring states of Bosnia and Herzegovina and Albania, as well
as with the autonomous region of Kosovo;

regional cooperation at

2.11.8
on its road to peaceful separation and independence.

calls on the EU institutions to support the new state

2.12 Former Yugoslav Republic of Macedonia

however, that the Ohrid Framework Agreement be fully imple-
mented with the support of the international community as a
basis for improved stability;

2.12.2
trusts that, following the violence surrounding the
recent parliamentary elections, all political forces will establish
the necessary conditions to ensure that democratic elections
can, in future, be conducted without violence in line with Euro-
pean standards;

recommends that local self-government be further
2.12.3
strengthened and its financing improved, since this has contrib-
uted to enhancing trust between ethnic groups;

2.12.4
considers strengthening local administrative capacity
to be a matter of great urgency, since this is a prerequisite for
decentralising tax collection and granting revenue-raising
powers to local authorities (financial resources for the municipa-
lities); shares the Commission's concern that
the funding
sources granted to the municipalities are not sufficient to co-
finance future programmes and projects under the Structural
and Cohesion Funds, or to meet their environmental obligations
(SEC(2005) 1425, p. 125), and urges that environmental
protection be allowed, as a horizontal issue, to play a greater
role in other policy areas — e.g. spatial planning — that are
part of the municipalities' remit;

2.12.5
supports the Commission's proposal to clarify the
arbitration procedure between the municipalities and the State
(SEC(2005) 1425, p. 19) and considers regular, structured
cooperation between national and local levels to be crucial (SEC
(2005) 1425, p. 104);

2.12.6
considers it necessary to establish a functioning
financial control system with internal revisions as a prerequisite
for good governance, to create the capacity to prevent any
misappropriation of public money, and to consistently introduce
measures to curtail corruption at local level;

calls for measures to strengthen rural areas,

2.12.7
the
economy and agriculture (e.g. establishment of bank branches in
rural areas,
land to
farmers), in order to exploit the existing potential for self-suffi-
ciency;

lease and sale of state-owned agricultural

2.12.1 welcomes the fact that the Former Yugoslav Republic
of Macedonia has been granted candidate status in recognition
of progress made in implementing the Ohrid Agreement; urges,

hopes to see an early, definitive resolution, satisfac-
2.12.8
tory for all parties, of the name issue, negotiated under the aegis
of the UN.

Brussels, 11 October 2006.

The President

of the Committee of the Regions

Michel DELEBARRE