Communication from the Commission to the European Parliament and the Council - Western Balkans: enhancing the European perspective {SEC(2008) 288}
Date: 2008-03-05
Institutions: European Commission
Subjects: EU relations, European integration, Western Balkans, accession criteria, accession negotiations, accession to the European Union, regional cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.3.2008 
COM(2008) 127 final 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Western Balkans: Enhancing the European perspective 

{SEC(2008) 288} 

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COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Western Balkans: Enhancing the European perspective 

I. INTRODUCTION 

Over the past two years, the countries of the Western Balkans1 have moved closer to the EU. 
This  reflects  progress,  albeit  uneven,  in  reforms  and  in  meeting  established  criteria  and 
conditions2.  Important  steps  have  also  been  taken  in  regional  cooperation.  Still,  our  partner 
countries  are  confronting  a  number  of  challenges  in  2008  which  could  have  far-reaching 
implications for their security, stability and well-being.  

The need to solve the status of Kosovo has focused attention on the region and its links with 
the  European  Union.  It  is  important  under  present  circumstances  to  maintain  the  peace  and 
stability of the region. This can best be achieved by further enhancing the EU perspective and 
by  making  it  as  visible  and  tangible  as  possible  for  all  the  peoples  of  the  region.  It  also 
requires the constructive engagement of political leaders throughout the region. 

Public  opinion  in  the  Western  Balkans  is  largely  favourable  to  EU  integration.  All 
governments  have  committed  themselves  to  this  objective  and  are  implementing  reforms. 
However, societies remain divided on a number of key issues related to the co-existence and 
integration of different communities and, in some cases, constitutional reform. Further efforts 
are needed to achieve consensus on such issues, to avoid harmful displays of nationalism, and 
to press on with the necessary political and economic reforms. 

It is in the interest of the European Union, and of Europe as a whole, that the region should go 
ahead as rapidly as possible with political and economic reform, reconciliation among peoples 
and  progress  towards  the  EU.  Accordingly  the  EU  is  mobilising  all  available  policy 
instruments to support the achievement of these goals. The Commission is giving particular 
priority  to  support  for  strengthening  the  rule  of  law,  good  governance,  judicial  and 
administrative reform and the development of civil society. 

In December 2007, the European Council reaffirmed that "the future of the Western Balkans 
lies  within  the  European  Union".  It  declared  its  willingness  to  move  forward  in  the  pre-
accession process and even to accelerate it where justified by the efforts of a particular partner 
country.  In  February  2008,  the  Council  reiterated  its  commitment  to  fully  and  effectively 
support  the  European  perspective  for  the  Western  Balkans.  It  asked  the  Commission  to  use 
community instruments to promote economic and political development and to propose to the 
broader region concrete measures in order to advance in that direction. 

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Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro 
and Serbia, as well as Kosovo under UNSC Resolution 1244/99. 
The  Commission  reported  on  progress  made  in  the  candidate  and  potential  candidate  countries  in  its 
enlargement  strategy  papers  of  2006  and  2007  -  COM(2006)  649,  8.11.2006,  and  COM(2007)  663, 
6.11.2007. 

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The  EU  will  continue  to  make  the  prospect  of  membership  visible  and  concrete  for  the 
citizens  of  the  countries  of  the  Western  Balkans.  To  this  end,  the  EU  should  be  ready  to 
accelerate pre-accession preparations with all countries of the region, provided they meet the 
necessary  conditions.  The  progress  of  each  country  towards  the  EU  is  performance-driven, 
depending on its individual merits and success in establishing a track record of achievements 
in addressing reform priorities. 

2008 is the year when primary responsibility for promoting regional cooperation is taken up 
by partners in the Western Balkans, notably through the new Regional Cooperation Council. 
It is important that regional cooperation yields benefits to the citizen.  

A  number  of  regional  partners  have  unresolved  bilateral  issues  with  their  neighbours.  The 
Commission  urges  all  parties  concerned  to  renew  their  efforts  to  find  mutually  acceptable 
solutions to such problems. Good neighbourly relations and regional cooperation remain key 
in advancing towards EU membership.  

The Commission supports the efforts of the Western Balkan countries for reform and regional 
cooperation through its Instrument for Pre-accession Assistance. It has taken a new initiative 
in  the  area  of  donor  coordination,  involving  the  international  financial  institutions  and 
bilateral donors. This is intended to leverage the maximum amount of support possible for the 
region's modernisation and development needs, bringing together grants and loans. 

The  purpose  of  this  Communication  is  to  reiterate  the  EU's  commitment  to  the  European 
perspective of the Western Balkans, and to point the way forward for an enhanced progress of 
the  region  towards  the  EU.  The  present  Communication  follows  up  on  the  Thessaloniki 
agenda  and  the  Salzburg  Communication,  in  line  with  the  Commission’s  November  2007 
enlargement  strategy  paper.  It  sets  out  new  initiatives  for  promoting  people-to  people 
contacts,  covering  areas  such  as  visa  liberalisation  and  scholarships,  for  developing  civil 
society and for enhancing the region's economic and social development. The Communication 
also provides a succinct analysis of the situation of each partner in the light of developments 
since the latest progress reports were presented in November 20073.  

The  decision  of  the  current  Council  Presidency  to  convene  a  ministerial  meeting  with  the 
countries of the Western Balkans on 28 March in Brdo (Slovenia) is particularly timely. This 
Communication provides background for the discussion at that meeting.  

The Council is invited to endorse the measures set out in this document and to support their 
implementation. 

II. PROGRESS MADE AND THE WAY FORWARD 

1. Moving closer towards the EU and enhancing regional cooperation 

Moving  closer  towards  the  EU  implies  meeting  the  criteria  and  conditions  for  each  stage. 
These  relate  to  the  Copenhagen  membership  criteria  and  the  Stabilisation  and  Association 
process,  including  on  regional  cooperation,  good  neighbourly  relations  and  full  cooperation 
with  the  International  Criminal  Tribunal  for  the  former  Yugoslavia  (ICTY).  The  Western 

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The  Communication  covers  key  developments  in  the  European  and  regional  agenda  of  the  Western 
Balkans,  with a  focus on new  initiatives. A  fuller  list  of  activities  can be  found  in  the  accompanying 
document SEC(2008) 288. A two-year period since the March 2006 Salzburg meeting is covered. 

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Balkan  countries  need  to  effectively  address  the  priorities  set  out  in  their  Accession  or 
European  Partnerships.  The  pace  of  each  country's  progress  is  determined  by  its  own 
achievements in this respect. 

Further steps on the road towards eventual EU membership 

Accession  negotiations  with  Croatia  are  progressing:  following  the  completion  of  the 
screening  process  in  October  2006,  sixteen  negotiation  chapters  have  been  opened  and  two 
provisionally closed by February 2008. Croatia's progress sends a signal to the other Western 
Balkan  countries  on  their  own  membership  prospects,  once  they  fulfil  the  necessary 
conditions. 

Provided that the government works with resolve to meet benchmarks and other conditions, 
substantial progress in accession negotiations with Croatia is possible over the coming year. 
For Croatia to make 2008 a decisive year in its accession process, the country needs to make 
further progress with judicial and administrative reforms, fighting corruption, minority rights, 
and  refugee  return,  as  well  as  further  restructuring  in  the  shipbuilding  sector.  Croatia  also 
needs to pay increasing attention to solving open issues with its neighbours. In particular, it 
needs to address without delay and in line with the Council Conclusions of February 2008, the 
issue of the Ecological and Fisheries Protection Zone.  

The  former  Yugoslav  Republic  of  Macedonia  was  granted  candidate  status  in  December 
2005. While the pace of reforms has, on the whole, been slow during the past two years, there 
have recently been signs of reforms gaining momentum.  

Improved  cooperation  among  political  parties  and  between  the  Prime  Minister  and  the 
President has led to increasing consensus on EU-related reforms. These include appointments 
to  the  Judicial  Council  by  Parliament  and  the  adoption  of  laws  on  the  Public  Prosecutor's 
Office,  on  the  Council  of  Public  Prosecutors  and  on  the  Composition  of  the  Committee  on 
Inter-ethnic Relations. Progress has also been made in police reform and decentralisation.  

Ensuring good neighbourly relations and finding negotiated and mutually acceptable solutions 
to unresolved issues with neighbours, in line with the Council conclusions of December 2007, 
remains essential. 

The Accession Partnership adopted by the Council on 18 February 20084 identifies eight key 
priorities  for  progress  in  the  accession  process  by  the  former  Yugoslav  Republic  of 
Macedonia.  These  cover  proper  implementation  of  all  commitments  undertaken  under  the 
SAA,  dialogue  between  political  parties,  implementation  of  the  law  on  police  and  anti-
corruption legislation, reform of the judiciary and public administration, as well as measures 
in employment policy and for enhancing the business environment. 

The  former  Yugoslav  Republic  of  Macedonia  needs  to  meet  these  key  priorities  in  order  to 
demonstrate  its  readiness  to  undertake  accession  negotiations.  The  Commission  considers 
that, with sufficient political will and cross-party cooperation, the necessary progress can be 
made in 2008. The Commission will assess these key priorities as benchmarks in its autumn 
regular  report.  A  recommendation  on  the  start  of  accession  negotiations  will  depend  on  the 
results achieved.  

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Publication in Official Journal pending. 

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Major  milestones  have  also  been  reached  in  completing  the  Stabilisation  and  Association 
Agreements  (SAAs)  with  the  other  countries  of  the  region.  Agreements  were  signed  with 
Albania  in  June  2006  and  with  Montenegro  in  October  20075;  the  trade-related  provisions 
under  the  corresponding  Interim  Agreements  have  already  entered  into  force.  The 
Commission encourages Member States to proceed swiftly with the ratification of these SAAs 
so  that  they  enter  into  force  as  soon  as  possible.  The  SAAs  with  Serbia  and  Bosnia  and 
Herzegovina  were  initialled  by  the  Commission  in  November  and  December  2007 
respectively. These agreements will be signed as soon as Serbia and Bosnia and Herzegovina 
meet  the  necessary  conditions.  A  satisfactory  track  record,  notably  in  implementing 
obligations  arising  from  an  SAA,  including  the  trade-related  provisions,  is  an  essential 
element for each country's progress towards membership.  

Albania has continued to make progress in reforms and approximation to EU standards. It is 
implementing  well  its  Interim  Agreement  under  the  SAA  and  building  up  a  track  record. 
Albania  has  maintained  a  balanced  position  on  the  Kosovo  issue,  thus  contributing  to  the 
regional stability. 

Political  leaders  in  Albania  have  pledged  to  engage  in  a  constructive  relationship  on  key 
reforms.  Electoral  reform,  particularly  in  view  of  the  2009  parliamentary  elections, 
strengthening  the  rule  of  law,  reform  of  the judicial  system  and  the  fight  against  corruption 
and organised crime are central. An improved climate in parliament will contribute to move 
forward on such issues. 

Albania will further develop its relations with the EU provided that it maintains satisfactory 
implementation  of  the  SAA,  ensures  that  elections  fully  meet  international  standards  and 
further strengthens the rule of law. Strengthening business environment and competitiveness 
of the economy will also be important. 

Montenegro has made important steps forward since independence in June 2006. Montenegro 
has  worked  actively  to  strengthen  its  institutional  and  legal  capacities.  The  adoption  of  the 
constitution  and  the  signing  of  the  SAA  were  major  steps  for  Montenegro  and  its  relations 
with the EU.  

Montenegro’s  constitution  is  broadly  in  line  with  European  standards.  It  provides  a 
satisfactory general framework for the judiciary, human rights and minority rights. However, 
Montenegro is expected to step up preparations to implement this framework. The principles 
of  judicial  independence  and  accountability  need  to  be  fully  respected.  Efforts  to  fight 
corruption  and  organised  crime  need  to  be  enhanced.  Continuing  administrative  reform  and 
strengthening administrative capacity will be a key challenge for Montenegro.  

In the coming period, Montenegro will also need to broaden the consensus on issues of state-
building  and  make  further  progress  in  implementing  the  European  integration  agenda.  The 
presidential election to be held in April 2008 should contribute to this.  

The  unanimous  ratification  of  the  SAA  highlighted  the  broad  support  in  the  country  for  a 
European  future.  The  implementation  of  the  Interim  Agreement  and  the  upgrading  of 
preparations to implement the SAA, once ratified, are essential for the further development of 

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SAAs with the former Yugoslav Republic of Macedonia and Croatia have been in force since 2004 and 
2005, respectively. 

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Montenegro's  relations  with  the  EU.  Strengthening  macroeconomic  stability  and  business 
environment will also be important. 

Bosnia  and  Herzegovina  has  continued  its  efforts  to  advance  on  the  European  integration 
agenda.  The  political  leaders  committed  themselves  in  October  2007  to  implement  police 
reform  and  to  advance  the  overall  reform  agenda  in  order  to  create  the  conditions  for  the 
signing of the SAA ('Mostar Declaration').  

Cooperation  with  ICTY  has  continued  and  is  now  at  a  generally  satisfactory  level.  The 
functioning  of  state  institutions  has  improved  to  a  certain  degree,  following  the  adoption  of 
new  working  procedures.  These  developments  led  to  the  initialling  of  the  SAA  on  4 
December  2007.  The  leaders  of  the  country  need  to  make  considerable  further  efforts,  if 
Bosnia  and  Herzegovina  is  to  take  full  responsibility  for  its  governance  and  advance  the 
reform agenda. In February 2008, the Peace Implementation Council decided to postpone the 
closure of the Office of the High Representative. 

The authorities of Bosnia and Herzegovina need now to adopt state level legislation on police 
and  to  address  other  key  priorities.  The  Commission  considers  that,  with  sufficient  political 
will, it should be possible for Bosnia and Herzegovina to meet the conditions for signing the 
SAA  soon.  Bosnia  and  Herzegovina  needs  functional  and  effective  institutions  capable  of 
meeting the challenges of European integration.  

Serbia  has  a  key  role  to  play  in  the  region  from  an  economic  and  political  point  of  view. 
Serbia is also important for the stability of the region, which would benefit from a stable and 
prosperous  Serbia  fully  integrated  into  the  family  of  European  nations.  Serbia  is  currently 
faced  with strategic  choices regarding  its future. The presidential elections held in February 
2008 confirmed Serbia's European aspirations. 

The EU has agreed to set up a Task Force to examine ways of delivering rapid progress and is 
committed to signing the SAA with Serbia as soon as the necessary steps have been finalised. 
The Commission remains convinced of the benefits that the SAA will bring to both Serbia and 
the EU, and of the positive impact this will have on the region. 

Regional  cooperation  and  good  neighbourly  relations  are  more  important  than  ever  for 
enabling Serbia and the region as a whole to continue moving towards the EU.  

Serbia's progress on the road towards the EU, including candidate status, can be accelerated, 
as stated by the European Council on 14 December 2007. The Commission calls on Serbia to 
reaffirm its commitment to closer ties with the European Union. 

Kosovo in the light of status developments 

On  17  February  the  Kosovo  Assembly  adopted  a  resolution  which  declared  Kosovo  to  be 
independent.  At  its  meeting  of  18  February,  the  Council  took  note  that  the  resolution 
committed  Kosovo  to  the  principles  of  democracy  and  equality  of  all  its  citizens,  to  the 
protection of the Serb and other minorities and of the cultural and religious heritage, as well 
as to international supervision.  

The  Council  noted  that  Member  States  will  decide  on  their  relations  with  Kosovo,  in 
accordance with national practice and international law. It stressed that Kosovo constitutes a 
sui generis case which does not call into question the principles of sovereignty and territorial 
integrity, the UN Charter and Security Council resolutions, or the Helsinki Final Act. It also 

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welcomed  the  continued  presence  of  the  international  community,  based  on  UN  Security 
Council Resolution 1244. The Council reiterated the EU's readiness to play a leading role in 
strengthening stability in the region. 

The Commission, in line with the Council conclusions, considers it important that Belgrade 
and  Pristina  respect  their  previous  commitments  to  refrain  from  any  activities  or  statements 
which might endanger the security situation. 

The  Commission  welcomes  that  the  Council  reaffirmed  its  commitment  to  fully  and 
effectively  support  the  European  perspective  for  the  Western  Balkans  and  its  call  on  the 
Commission  to  use  community  instruments  to  promote  economic  and  political  development 
and to propose to the broader region concrete measures in order to advance in that direction. 

The EU will support Kosovo's future development through an international civilian mission, 
headed by an EU Special Representative, an ESDP rule of law mission and substantial support 
to economic and political development.  

On 4 February, the EU adopted a joint action to deploy the ESDP mission (EULEX Kosovo) 
and appointed an EU Special Representative. The mission will include police officers, judges, 
prosecutors and customs officers to assist Kosovo's authorities in maintaining the rule of law. 

Major challenges for Kosovo include strengthening the rule of law, in particular the judiciary, 
combating  organised  crime  and  corruption,  supporting  economic  development  and  the 
creation  of  jobs,  improving  conditions  for  the  return  of  refugees  and  for  minority 
communities,  and  enhancing  dialogue  and  reconciliation  between  communities.  Overall  EU 
assistance to Kosovo is estimated at over €1 billion for the period 2007-2010 covering support 
to  Kosovo's  political  and  economic  development  and  financing  the  EU  contribution  to  the 
international presence in Kosovo. 

Kosovo  has  made  further  progress  towards  a  democratic  and  multiethnic  society.  The 
November  2007  general  elections  were  free  and  fair  and  largely  in  line  with  international 
standards.  The  new  coalition  government  includes  ministers  from  the  Serb  and  Turkish 
communities  and  has  made  commitments  concerning  the  well-being  of  minorities,  in 
particular  Kosovo  Serbs.  The  government  has  also  underlined  the  importance  it  attaches  to 
reforms in line with the European agenda.  

Kosovo has, like the rest of the Western Balkans, a clear and tangible EU perspective. Kosovo 
is  engaged  in  a  regular  dialogue  with  the  Commission  on  reforms  and  progress  is  regularly 
institution-building  and 
monitored.  The  Commission  will 
development and will organise a donors' conference to mobilise funding to address Kosovo's 
most  pressing  needs.  It  will  also  seek  to  promote  people-to-people  contacts  and  Kosovo's 
involvement in regional cooperation. 

its  support  for 

intensify 

Progress on regional cooperation – the new Regional Cooperation Council6 

Significant progress has been made on regional cooperation, with the countries of South East 
Europe  assuming  increasing  responsibility  for  the  process.  The  transition  from  the  Stability 
Pact to a regionally owned cooperation framework, which began at the Zagreb summit of the 

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Specific sectoral regional activities, including in the areas of trade, energy and transport, are referred to 
in subsequent sections. 

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South East European Cooperation Process (SEECP) in May 2007, was largely completed in 
February 2008. The new framework operates under the political guidance of the SEECP and 
includes  the  newly  established  Regional  Cooperation  Council  (RCC).  Its  Secretary-General 
has been appointed and the Sarajevo-based Secretariat started operations in January 2008. A 
Brussels liaison office will be set up soon. The Secretariat is co-financed by the countries in 
the region, the Commission and other international donors. The EU is represented on the RCC 
Board. 

The  RCC  will  build  on  the  achievements  of  the  Stability  Pact,  which  from  1999  to  2007 
provided  invaluable  impetus  to  regional  activities  and  donor  coordination  in  South  East 
Europe.  It  will  continue  this  work,  with  a  streamlined  set  of  initiatives  and  projects.  The 
Commission  will  provide  support  for  the  RCC  and  invites  the  countries  in  the  region,  the 
Member States and other donors to contribute. 

2. People-to-people contacts; familiarising people with the EU 

Promoting  people-to-people  contacts  between  the  Western  Balkans  and  the  EU  is  of 
paramount importance: citizens from the region acquire a better knowledge of the European 
Union, its values and its rules, and way of life. Contacts between the people of the Western 
Balkan  countries  help  reconciliation.  The  European  Council  has  emphasised  the  importance 
of people-to-people contacts and invited the Commission to take initiatives to promote them, 
in particular in the areas of visas and scholarships7. 

Towards visa-free travel 

Visa-free travel to the EU is of considerable importance to the people of the Western Balkans. 
Citizens  of  the  Western  Balkan  countries,  except  Croatia,  still  need  visas  to  enter  the  EU. 
Moving  towards  a  visa-free  regime  is  part  of  the  preparations  for  EU  membership,  which 
includes  eventually  becoming  part  of  the  Schengen  area.  At  the  same  time,  steps  towards 
liberalisation of travel need to take into account the internal security and migration interests of 
the  EU.  They  are,  therefore,  conditional  on  necessary  reforms  by  the  Western  Balkan 
countries. 

As  a  first  step  towards  visa  liberalisation,  the  Commission  has  negotiated  visa  facilitation 
agreements  with  the  Western  Balkan  countries.  These  were  signed  in  September  2007  and 
entered into force on 1 January 2008. The agreements substantially improve the conditions for 
obtaining  visas  for  travel  to  the  EU:  they  establish  a  reduced  fee  for  obtaining  a  visa  (€35 
instead of €60) and exempt broad categories of persons from these fees. They set time-limits 
for issuing a visa (normally 10 days) and simplify and clarify the procedures for issuing a visa 
to  certain  categories  of  persons.  The  facilitation  agreements  are  linked  to  readmission 
agreements  that  were  negotiated  and  concluded  in  parallel8,  and  to  the  introduction  of 
biometrics. 

The Western Balkan countries and the Member States need to ensure proper implementation 
of  the  visa  facilitation  and  readmission  agreements.  Joint  committees  will  be  established  to 
monitor  implementation;  they  will  meet  in  spring  2008.  These  committees  will  adopt 
guidelines for the Member States’ consulates to ensure even application of the agreements. 

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In  the  June  2003  Thessaloniki  agenda  and,  more  recently,  in  the  December  2006  European  Council 
conclusions and in the June 2007, December 2007 and January 2008 GAERC conclusions. 
A readmission agreement with Albania has been in force since May 2006. 

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In  line  with  the  Thessaloniki  agenda  and  the  June  2007  Council  (GAERC)  conclusions,  the 
Commission  is  taking  steps  towards  preparing  for  visa  liberalisation  with  the  Western 
Balkans. In its enlargement strategy paper of November 2007, the Commission announced its 
intention to start a dialogue with each country with a view to establishing road-maps on the 
conditions to be met for lifting the visa requirement.  

The Council in its conclusions  of  28 January 2008 welcomed the intention  of the European 
Commission to launch soon a visa dialogue with all the countries in the region. It expressed 
its readiness to further discuss this issue, based on the present Communication, with a view to 
defining  detailed  roadmaps  setting  clear  benchmarks  to  be  met  by  all  the  countries  in  the 
region in order to gradually advance towards visa liberalisation.  

The  Commission  started  visa  liberalisation  dialogues  with  Serbia  in  January  and  with  the 
former  Yugoslav  Republic  of  Macedonia  and  Montenegro  in  February.  The  dialogue  with 
Albania will start in early March. Bosnia and Herzegovina will follow. 

Road-maps  will  be  drawn  up  by  the  Commission  in  consultation  with  the  Council.  The 
Western  Balkan  countries  will  provide  input  in this  context.  The  road-maps  will  cover  four 
sets  of  issues:  document  security,  illegal  migration,  public  order  and  security  as  well  as 
external relations. The road-maps will be tailor-made to allow each country to focus reform 
efforts  and  address  the  EU’s  requirements.  The  Commission's  intention  is  to  finalise  the 
roadmaps as soon as possible after the launching of each dialogue, in order for the necessary 
reforms to start being implemented promptly. 

The speed of movement towards visa liberalisation will depend on each country's progress in 
fulfilling the benchmarks. For the whole process, the countries' capacity to ensure correct and 
effective  implementation  of  the  visa  facilitation  and  readmission  agreements  will  also  be 
taken  into  consideration.  The  Commission  will  provide  financial  and  technical  assistance  to 
support implementation of the road-maps.  

The Commission and the Council will closely monitor progress in the relevant reforms. Once 
the  conditions  for  each  country  have  been  fulfilled,  the  Commission  will  propose  to  the 
Council  the  lifting  of  the  respective  visa  obligation,  by  amending  Council  Regulation 
539/20019. 

More scholarships for students from the Western Balkans 

The Commission has been offering an increasing number of scholarships for students from the 
Western Balkans under Erasmus Mundus programme: 100 as of the academic year 2007/2008 
for  postgraduate  students  following  master  courses  ("Western  Balkans  window"),  and  up  to 
500  for  the  academic  year  2008/2009  for  students  at  all  levels  or  academic  staff  (under  the 
"external  cooperation  window").  Up  to  € 10  million  of  Community  support  has  been 
earmarked annually for these activities.  

Following  the  Council  meeting  of  28.1.2008,  the  Commission intends to double this annual 
allocation, which would enable several hundreds additional students to receive a scholarship 
as of the academic year 2009/2010. 

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Council  Regulation  (EC)  No  539/2001  of  15  March  2001  listing  the  third  countries  whose  nationals 
must be in possession of visas when crossing the external borders and those whose nationals are exempt 
from that requirement (OJ L 81, 21.3.2001). 

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The  Commission  invites  the  Member  States  to  increase  the  number  of  scholarships  granted 
under their own bilateral scholarship programmes for students from the Western Balkans.  

Participation in Community programmes and agencies 

Candidate  and  potential  candidate  countries  are  entitled  to  participate  in  Community 
programmes on the basis of Framework Agreements. Participation in these programmes is an 
important  means  of  facilitating  integration,  cooperation  and  policy  development.  The 
Community provides support and, in some cases, favourable terms for their participation.  

The  Commission  has  been  working  closely  with  the  countries  in  the  region  to  identify  the 
Community  programmes  for  which  there  is  interest  and  capacity  and,  where  necessary,  to 
prepare  the  parties  for  participation.  Since  2007,  most  of  the  Western  Balkan  countries  are 
associated to the 7th Framework Programme on research; some of them also participate in the 
“Culture”,  “Progress”,  "Competitiveness  and  Innovation",  "Customs"  and  "Fiscalis" 
programmes. Further programmes will be opened to more Western Balkan countries in 2008-
2009. 

Western Balkan countries can also participate in Community agencies on a case-by-case basis. 
Preparations for participation in certain agencies are going ahead, in particular for Croatia and 
the  former  Yugoslav  Republic  of  Macedonia.  A  number  of  Community  agencies  receive 
support from IPA to prepare for the participation of the Western Balkan countries.  

In 2008, the Commission will adopt a Communication by which potential candidate countries 
will participate on equal terms with candidate countries in Community programmes, including 
in terms of the Community co-financing rate for their participation, which will be raised (from 
75 to 90%). 

Other activities in the areas of science and research, education, culture, youth and media 

Cooperation with the EU and within the Western Balkans in the area of science and research 
is intensifying. The Western Balkan countries are increasingly involved in activities under the 
7th Framework Programme on research: the number of projects submitted from the region has 
increased  substantially  and  a  new  cooperation  instrument  for  the  Western  Balkans  has  been 
established (Inco.net).  

The  Western  Balkan  countries,  supported  by  the  Commission,  are  drawing  up  an  integrated 
research  policy,  in  line  with  the  European  Research  Area.  Activities  of  the  Joint  Research 
Centre  have  been  opened  to  scientists  from  the  Western  Balkans.  A  “Steering  platform  on 
research for the Western Balkans”, involving all stakeholders and aiming at strengthening the 
research capacity in the region, was launched in June 2006, and has since met twice a year. 

Activities  in  the  area  of  education  and  culture  in  the  Western  Balkans  are  fostering 
development  of  human  resources  and  contributing  to  reconciliation.  They  include  the 
establishment,  in  2007,  of  an  Education  Reform  Initiative  in  South  East  Europe  and  the 
European Training Foundation’s work in the region. Extensive cooperation between academic 
institutions  from  the  Western  Balkans  and  the  EU  Member  States  in  the  field  of  higher 
education  is  taking  place  under  the  Tempus  programme.  Annual  Community  support  to  the 
Western Balkans under this programme totals € 20 million.  

A  conference  on  “Cultural  Policies  and  Practices  in  EU  Foreign  Relations”  will  be  held  in 
May in Ljubljana within the framework of 2008 as European Year of Intercultural Dialogue. 

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It will focus in particular on the Western Balkans. The Commission has been implementing, 
jointly with the Council of Europe, a regional programme to protect cultural heritage in South 
East Europe covering to date 177 buildings and sites.  

The Commission also participates in and supports initiatives on media reform. A conference 
on broadcasting media will be held in June 2008 in Istanbul. 

Support  for  youth  activities  in  the  Western  Balkans  (youth  exchanges,  European  Voluntary 
Service projects, training and networking) is provided through a special “window” of the EU 
Youth in Action programme. These activities, initiated in 2007, will be further developed in 
2008.  

Cross-border cooperation  

Cross–border  cooperation  helps  reconciliation  and  good  neighbourly  relations,  while  also 
facilitating  the  integration  of  the  beneficiary  countries  into  the  EU.  This  is  particularly 
relevant in a region with a recent history of conflict. Cross–border cooperation programmes 
support  people–to–people  contacts  by  involving  local  stakeholders  in  joint  activities  and  by 
assisting in the development of cross–border investments. 

Community  assistance  to  cross-border  cooperation  in  the  Western  Balkans  under  IPA  has 
been extended to cover the borders among the Western Balkan countries, in addition to those 
of  Western  Balkan  countries  with  adjacent  EU  Member  States.  This  assistance  was 
substantially  increased  and  will  amount  to  a  total  of  around  € 50  million  annually  for  the 
period  2007-2011,  as  compared  to  an  annual  average  of  € 20  million  for  the  period  2004-
2006. 

3. Civil society development and dialogue – A new civil society facility 

Civil  society  is  an  essential  element  of  democratic  public life.  Its  active  involvement  in  the 
process  of  political,  social  and  economic  reform  in  the  Western  Balkans  strengthens 
democracy and reconciliation. Despite some positive steps, civil society organisations remain 
weak and need training to adapt to present circumstances. It is, therefore, important to create 
conditions conducive to further growth of their activities. 

EU  assistance  for  civil  society  development  and  dialogue  in  the  Western  Balkans  has  been 
provided under previous instruments and will be given special attention under IPA. A broad 
range  of  organisations  have  received  support,  in  particular  in  the  areas  of  inter-ethnic 
relations,  protection  of  minority  rights,  including  Roma,  poverty  reduction,  environmental 
protection and social development.  

Overall  support  to  civil  society  in  the  Western  Balkans  under  national  and  regional 
programmes totalled € 27 million in the period 2005-2007. Additional assistance is provided 
under  cross-border  cooperation  programmes,  as  well  as  under  the  European  Instrument  for 
Democracy and Human Rights (EIDHR)10. 

In its November 2007 strategy paper, the Commission announced that it will establish a new 
facility to promote civil society development and dialogue. Cooperation will embrace sectors 

10 

EIDHR assistance to the Western Balkans totalled € 9.0 million for the period 2005-2007. For 2008, an 
EIDHR allocation of € 5.7 million is envisaged for the Western Balkans. 

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such  as  human  rights,  gender  equality,  social  inclusion,  health,  environment,  business 
advocacy  and  representation,  media,  culture  and  consumer  policy.  The  facility  will  cover 
three areas of activity: 

– 

– 

– 

support for local civil society initiatives and capacity-building, reinforcing the role of 
civil society; 

programmes to bring journalists, young politicians, trade union leaders, teachers, etc. 
into contact with EU institutions; 

support for building partnerships and developing networks between the civil society 
organisations,  businesses,  trade  unions  and  other  social  partners  and  professional 
organisations in the beneficiary countries and their counterparts in the EU to promote 
transfers of knowledge and experience.  

Projects will be developed both in the national and in the multi-beneficiary programmes under 
IPA. A multi-beneficiary IPA programme will support all strands of the facility with technical 
assistance.  Technical  assistance  will  also  be  provided  for  training,  to  stimulate  capacity-
building and networking and to disseminate the results. Funding of civil society activities in 
the  Western  Balkans  over  the  period  2008-10  will  approximately  triple  compared  to  the 
period 2005-07. A civil society conference to launch the new facility will be held in Brussels 
in April 2008. 

The Commission will initiate a dialogue with churches and religious groups, considering their 
potential for driving reconciliation. This will familiarise these groups with the structures and 
procedures of the EU and will allow an exchange of views. 

4. Good governance 

The Commission 2007 enlargement strategy paper placed a high priority on basic governance 
issues, including institution building, judicial and administrative reform and the prevention of 
organised crime and corruption. Full cooperation with the International Criminal Tribunal for 
former Yugoslavia (ICTY) remains a condition on the way towards the EU for the countries 
concerned. 

Cooperation in the area of justice, freedom and security 11 

Cooperation  and  reforms  in  the  field  of  justice,  freedom  and  security,  notably  in  combating 
organised crime and corruption, reforming the judiciary and police, as well as strengthening 
border management, are of particular importance for the Western Balkans and a core priority 
for their European agenda. A substantial share of overall Community assistance to the region 
will continue to be earmarked for this area. 

The Ohrid  Process on border  security management (co-sponsored  by the  Commission) was 
successfully  completed  at  the  end  of  2007.  Cooperation  in  this  area  will  continue  under  the 
RCC. 

The Western Balkans is a priority area of Europol. Strategic agreements with Europol were 
signed  in  2007  by  Albania,  Bosnia  and  Herzegovina  and  the  former  Yugoslav  Republic  of 

11 

For visas, see Section 2 

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Macedonia,  while  similar  agreements  are  being  negotiated  with  Montenegro  and  Serbia.  A 
more  advanced  operational  agreement  between  Europol  and  Croatia  has  been  in  force  since 
2006. Croatia also signed a cooperation agreement with Eurojust12 in November 2007. 

The  EU  supports  closer  cooperation  between  Europol  and  the  SECI13  Regional  Centre  for 
Combating  Transborder  Crime,  based  in  Bucharest.  A  cooperation  agreement  between  the 
two organisations should be concluded once the new SECI Convention (SELEC – South East 
European  Law  Enforcement  Centre),  providing  for  rules  on  personal  data  protection,  is 
adopted.  This  is  in  line  with  the  conclusions  on  further  development  of  the  SECI  Centre, 
adopted at the December 2006 Justice and Home Affairs (JHA) Council. 

The  Commission  supports  the  initiative  of  the  Slovenian  Presidency  for  South  East  Europe 
Organised  Crime  Threat  Assessments  (SEE-OCTA)  to  be  drawn  up  by  the  Western  Balkan 
countries with the assistance of the SECI Centre and Europol. A conference on SEE-OCTA 
will  be  held  in  Vienna  in  March  2008.  The  initial  results  of  these  assessments  will  be 
presented at the JHA Council in June 2008. 

Cooperation  between  the  EU  and  the  Western  Balkan  countries  in  the  areas  of  counter-
terrorism and combating trafficking will be stepped up. The EU agency coordinating work on 
border  security  (FRONTEX)  is  intensifying  cooperation  with  several  Western  Balkan 
countries on the basis of working arrangements. 

The Commission will continue providing substantial assistance to regional projects related to 
JLS  issues,  including  regional  cooperation  between  prosecutors,  cross-border  cooperation 
between  police  and  customs  services  and  action  in  the  field  of  asylum,  migration  and  visa 
policies. 

Regional School of Public Administration (ReSPA) 

The  Regional  School  of  Public  Administration  (ReSPA)  was  created  in  May  2006  on  the 
initiative of the Commission. It has been operating since November 2006 as a network aiming 
to boost regional cooperation in the field of public administration, to strengthen administrative 
capacity  and  to  develop  human  resources  in  this  field.  A  number  of  training  activities  have 
been taking place since late 2006. 

The objective is to establish a fully fledged regional school of public administration in early 
2009. Preparatory work is under way and, in January 2008, the ReSPA Steering Committee 
designated  Danilovgrad  (Montenegro)  as  the  future  seat  of  the  school.  Preparations  for  the 
signing  of  the  host  country  agreement,  providing  for  the  legal  personality  of  ReSPA,  have 
started  and  the  procedures  for  appointment  of  the  director  and  recruitment  of  staff  will  be 
launched  in  the  course  of  2008.  In  May  2008,  a  Memorandum  of  Understanding  will  be 
signed among the beneficiaries. 

The European Institute of Public Administration will be closely involved in the new phase of 
the ReSPA project. Active cooperation with the national schools of public administration in 
the Member States is also being sought. 

12 

13 

EU body established in 2002 to enhance the effectiveness of the competent authorities in the Member 
States dealing with the investigation and prosecution of serious cross-border and organised crime. 
SECI – South East Europe Cooperation Initiative. 

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The  Commission  supports  the  establishment  of  ReSPA  and  provides  funding  for  the 
preparatory  stages  of  the  project.  The  running  costs  of  the  School  will  be  covered  by  the 
participating states. 

Twinning, TAIEX and SIGMA activities – EU awareness sessions for stakeholders in the 
Western Balkan countries 

Twinning14  and  TAIEX15  activities,  aimed  at  familiarising  the  administrations  of  the 
candidate and potential candidate countries with the EU acquis and European standards, form 
a substantial part of Community assistance to the region. 

Twinning  is  available  in  the  Western  Balkans  for  all  acquis  sectors.  Fifteen  new  twinning 
projects  have  been  initiated  in  the  region  since  March  2006,  with  a  total  budget  of 
€ 16.5 million,  covering  justice  and  home  affairs,  public  finance  and  the  internal  market 
(including  customs  and  taxation),  the  social  sector  and  agriculture.  These  activities  will 
continue. 

The Commission’s TAIEX activities in the Western Balkans cover all areas of EU legislation, 
with  a  special  focus  on  the  internal  market,  agriculture  and  justice  and  home  affairs. 
Translation  of  the  acquis  and  terminology  issues  are  also  covered.  Around  14 000  officials 
from the region have benefited directly from TAIEX assistance since March 2006, and more 
than  530  training  and  information  events  have  been  organised.  TAIEX  activities  will  be 
further  extended  on  EU  legislation,  state-building,  good  governance  and  socio-economic 
reform.  A  special  institution-building  facility  for  Kosovo  and  a  programme  for  bringing 
together Western Balkan civil society representatives with their EU counterparts (see above) 
will be launched with the aid of the TAIEX instrument. 

TAIEX will organise a series of tailor-made seminars in each potential candidate country on 
topics  covering  general  issues  concerning  European  Union  policies,  structures  and  pre-
accession processes as well as key areas of EU legislation.  

The  Commission  will  continue  providing  assistance  under  the  SIGMA16  institution  building 
instrument  covering  horizontal  areas  of  public  management  (public  administrative  reform, 
public procurement, public sector ethics, and external and internal financial control).  

5. Parliamentary cooperation 

Active  involvement  of  parliaments  in  the  countries'  preparations  for  the  EU  is  a  key 
determinant of progress. 

Cooperation  between  the  European  Parliament  and  the  parliaments  of  the  Western  Balkan 
countries  has  continued  through  the  Joint  Parliamentary  Committees  with  Croatia  and  the 
former  Yugoslav  Republic  of  Macedonia  and  Inter-parliamentary  meetings  with  Albania, 

14 

15 
16 

The twinning instrument was launched by the Commission in 1997 for target administrative cooperation 
in  the  enlargement  context  to  help  the  administrations  of  the  then  candidate  countries  with  the 
introduction and proper application of Community law. Twinning has evolved as a specific instrument 
for administrative peer assistance, involving experts from EU Member States. 
TAIEX: Technical Assistance and Information Exchange Instrument. 
SIGMA:  Support  for  Improvement  in  Governance  and  Management.  Initiative  implemented  in 
cooperation with the OECD and financed through a series of contribution agreements totalling annually 
around € 5 million. 

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Bosnia  and  Herzegovina,  Montenegro  and  Serbia.  Informal  meetings  of  this  kind  have  also 
been  held  with  Kosovo.  Cooperation  will  continue,  with  seminars  and  inter-parliamentary 
colloquia.  The  European  Parliament  (Committee  on  Foreign  Affairs  -  AFET)  is  considering 
supporting the RCC in its activities in the area of parliamentary cooperation. 

A  Regional  Secretariat  for  Parliamentary  Cooperation  in  South  East  Europe,  hosted  by  the 
Bulgarian Parliament, was established in 2007. To that end, a Memorandum of Understanding 
on Inter-parliamentary Cooperation in South East Europe, initialled in December 2007, will 
be signed in spring 2008. Regional parliamentary cooperation has also continued in the annual 
meetings  of  the  Conference  of  the  Committees  on  European  Integration  of  the  States 
participating in the Stabilisation and Association Process (Western Balkans COSAP) and in 
the Cetinje Parliamentary Forum.  

6. Trade integration – Central European Free Trade Agreement (CEFTA) 

The enlarged and amended Central European Free Trade Agreement (CEFTA) was signed in 
December 2006 and entered into force for all parties in November 2007. It will contribute to 
attracting  foreign  direct  investment,  fostering  intra-regional  trade  and  integrating  the  region 
into the global trading environment. Regional trade integration through CEFTA complements 
trade integration between the countries in the region and the EU under the Stabilisation and 
Association Agreements (SAA) and Autonomous Trade Measures (ATM). A new Secretariat 
supporting the rotating CEFTA chairmanship will be in place in Brussels by April 2008.  

The Commission will  continue providing  technical  and financial assistance to the parties. It 
will also support the new Secretariat financially for the first three years.  

EU-Western  Balkans  diagonal  cumulation  of  rules  of  origin17  is  being  established  for 
interested  countries  in  the  region.  The  necessary  provisions,  including  cumulation  with 
Turkey  for  products  covered  by  the  Customs  Union,  have  been  included  in  the  SAAs  or  in 
Additional Protocols, negotiated in 2007. They will come into effect upon the entry into force 
of the relevant Interim Agreements and Additional Protocols. In October 2007, the Euro-Med 
Trade Ministers endorsed extension of the Pan-Euro-Med scheme of diagonal cumulation to 
the countries of the Western Balkans. Technical preparations to that end are in progress and 
the formal decisions are expected in the course of 2008. The Commission is exploring ways to 
ensure  a  more  rapid  application  of  diagonal  cumulation  between  the  Western  Balkans, 
Turkey, EFTA and the EU. The Commission will continue to provide technical and financial 
support to customs and tax administrations, in particular in view of the entry into force of the 
diagonal cumulation zone. 

Accession  to  the  WTO  is  fundamental  for  fostering  economic  and  trade  reforms.  The 
Commission  continues  to  provide  technical  assistance  to  Bosnia  and  Herzegovina, 
Montenegro  and  Serbia  for  their  accession  negotiations  with  the  WTO.  Other  measures  to 
support  trade  integration  include  participation  in  tenders  under  the  new  pre-accession  and 
neighbourhood  instruments  (IPA  and  ENPI)  and  continued  significant  financial  support  for 
alignment of the Western Balkan countries with the main trade-related parts of EU legislation. 

17 

Diagonal  cumulation  of  rules  of  origin  is  a  system  facilitating  regional  trade  integration.  It  enables  a 
country to transform and export a product under preferential trade treatment to the EU, even though part 
of the product's input originated from another country participating in the scheme. 

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7. Economic and social development 

Increasing  competitiveness,  reducing  high  levels  of  unemployment,  fostering  human 
development  and  labour  market  participation,  building  infrastructure  and  ensuring  social 
cohesion  are  major  challenges  throughout  the  Western  Balkans.  The  Commission  supports 
efforts to promote sustainable development and to become acquainted with the objectives of 
the  Lisbon  strategy.  This  strategy  aims  to  enhance  growth  and  job  creation  and  prepare  the 
EU to face the challenges of globalisation, ageing and climate change. Agriculture and rural 
development  are  also  central,  and  due  attention  should  be  paid  to  their  role  in  the  region's 
economic  and  social  development.  The  Commission  cooperates  closely  with  IFIs  and  other 
donors to address the basic needs of the region in terms of economic and social development. 

Support to economic stabilisation and reforms in the region 

The  Western  Balkan  countries  continue  work  towards  fulfilling  the  Copenhagen  economic 
criteria,  which  require  the  existence  of  a  functioning  market  economy  and  capacity  to  cope 
with competitive pressure and market forces in the EU. They also need to prepare for future 
participation in the multilateral surveillance and economic policy co-ordination procedures as 
part of Economic and Monetary Union. The Commission supports their efforts. The candidate 
countries have developed pre-accession economic programmes which set out their proposals 
for reform. In addition, since December 2006, the potential candidate countries prepare annual 
economic and fiscal programmes which are assessed by the Commission. A regular bilateral 
economic  dialogue  between  the  Commission  and  the  respective  countries  is  held.  The 
Western Balkan countries may also benefit from EC macro-financial assistance. 

Cooperation with IFIs for economic and social development 

The Commission is committed to closer coordination with the EIB, the EBRD and other IFIs 
supporting modernisation and development in the Western Balkans. The Commission and the 
IFIs  are  focusing  on  three  priority  areas:  micro-  and  small  and  medium-sized  enterprises 
(SMEs), energy efficiency and infrastructure.  

In March 2007, an IFI advisory group was established covering regional transport, energy and 
environmental projects, municipalities and public-private partnerships as well as social issues 
including health, education, employment, and labour market .  

In  November  2007,  the  Commission  agreed  with  the  EIB,  the  EBRD  and  the  Council  of 
Europe  Development  Bank  to  create  an  Infrastructure  Projects  Facility  for  the  Western 
Balkans.  The  Facility  is  being  launched  with  a  budget  of  €16  million.  It  will  help  prepare 
investment projects to be financed from grants and loans in the areas of transport, energy, the 
environment  and  social  infrastructure.  The  Facility  will  soon  be  widened  to  include  other 
interested donors and additional forms of cooperation. The Commission, the EIB, the EBRD 
and  the  Council  of  Europe  Development  Bank  committed  to  establish  a  Western  Balkans 
Investment Framework by 2010 with other IFIs and donors to further enhance harmonisation 
and cooperation in investments for socio-economic development in the region. 

Small and medium-sized enterprises (SMEs) 

The European Fund for South East Europe (EFSE) provides commercial banks and non-bank 
financial  institutions  with  loan  facilities  to  support  development  of  micro-enterprises  and 
households. The EFSE has provided micro-credit to more than 65 000 small enterprises in the 
region over the past two years. The Fund has also succeeded in attracting private capital for 

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micro-lending.  The  Commission  has  been  participating  in  the  EFSE  since  2006.  The 
Commission is analysing the feasibility  of future initiatives to support small business in the 
region. 

A number of activities involving policy evaluations and regional meetings have been taking 
place within the framework of the European Charter for Small Enterprises, which has been 
extended  until  2009  for  the  Western  Balkans.  The  countries  in  the  region  are  now  being 
integrated in the new Enterprise Europe Network, the EU's network of SME support services. 

Employment policy and social issues  

A  number  of  regional  initiatives  in  the  area  of  employment  policy,  social  issues  and  social 
dialogue  have  taken  place  over  the  last  two  years  with  Commission  support.  Under  the 
“Bucharest process”, reviews of each country’s employment policy continued and work was 
initiated  on  occupational  health  and  safety  and  on  networking  public  employment  services. 
Several  regional  meetings  and  conferences  have  been  held  on  employment,  social  dialogue 
and  social  protection  issues.  In  October  2007, common  policy  priorities  were  agreed  by  the 
Western Balkan ministers for employment, labour and social affairs (“Budva conclusions”). A 
declaration  on  social  security  coordination  was  also  signed  by  ministers  of  social  affairs 
("Tirana  Declaration").  Community  assistance  is  being  provided  to  a  programme  on 
coordination  of  the  social  security  systems.  These  activities  will  continue.  An  informal 
meeting of ministers for labour and social affairs on youth employment will be held in June 
2008. 

Energy 

Energy supply is crucial for sustaining economic development in South East Europe.  

The  aim  of  the  Energy  Community  Treaty,  which  entered  into  force  in  July  2006,  is  to 
establish a stable regulatory and market framework capable of attracting investment in energy 
generation,  transmission  and  networks.  A  single  regulatory  area  in  the  region,  aligned  with 
EU  legislation,  will  help  overcome  market  fragmentation,  ensure  security  of  supply  and 
contribute to improving the state of the environment. This means that key parts of the energy 
acquis are now fully applicable in the Western Balkans. 

All  institutions  provided  for  in  the  Treaty  have  been  set  up  and  are  operating.  The  main 
stakeholders of the electricity and gas sectors are meeting regularly. In 2007, a conference on 
investment  in  energy  infrastructure  was  held  and  a  list  of  priority  energy  infrastructure 
projects was adopted. In addition, a Memorandum of Understanding was signed to address the 
social dimension of the Energy Community better. 

In 2007, a new energy efficiency facility for the Western Balkans was established under IPA 
in cooperation with IFIs. The Commission intends to expand this facility. 

Transport 

Development  of  a  reliable  transport  network  is  an  essential  requirement  for  the  region’s 
economic  progress  and  social  integration,  and  also  for  easier  access  to  the  EU  transport 
network and the internal market.  

The Commission is proposing negotiating directives for a Transport Community Treaty with 
the  Western  Balkans.  The  purpose  is  to  work  towards  an  integrated  market  for  road,  rail, 

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inland waterways and maritime transport in the Western Balkans region. The proposal follows 
exploratory  talks  on  cooperation  in  the  field  of  transport  launched  in  early  2007  with  all 
countries neighbouring the EU and successfully concluded with the Western Balkans18. 

The  South  East  Europe  Transport  Observatory  (SEETO)  and  the  Secretariat  for  the  (2004) 
MoU for the development of the South East Europe Core Regional Transport Network have 
prepared  multi-annual  plans,  indicating  priorities  for  the  region.  The  Commission  will 
continue to provide financial and technical assistance for further work in this area. 

The Agreement on the European Common Aviation Area (ECAA) was signed in June 2006. 
The aim is to integrate the Western Balkan countries into the EU’s internal aviation market. 
Under the ECAA, Western Balkan countries will fully implement EC aviation law, including 
high standards of safety and security, while their airlines will have open access to the enlarged 
European  single  market  in  aviation.  The  Commission  encourages  the  contracting  parties  to 
ratify  the  agreement  swiftly  so  that  it  can  enter  into  force  as  soon  as  possible.  The 
Commission will provide technical assistance for implementation of the agreement. 

Disaster prevention, preparedness and response 

The major forest fires in the summer of 2007 and frequent floods in the region show the need 
for  the  countries  of  South  East  Europe  to  build  up  their  capacity  and  to  enhance  regional 
cooperation in the field of civil protection and disaster prevention. This includes developing 
disaster  management 
systems,  acquiring  equipment  and  emergency 
communication  tools,  increasing  capacity  and  improving  the  interoperability  of  civil 
protection  services,  fire  brigades,  hydrological  and  meteorological  services  and  the  health 
sector.  The  Commission  will  aim  to  involve  candidate  countries  closely  and  fully  associate 
the potential candidate countries in the Community’s activities in the field of civil protection.  

information 

In 2008, the Commission will launch a Disaster Risk Reduction Initiative to prepare a regional 
strategy  and  to  develop  the  capacity  of  the  Western  Balkan  countries  and  Turkey  for  data 
collection, processing and sharing. The programme will be implemented in close cooperation 
with  stakeholders  in  this  field  –  the  World  Bank,  the  UN,  the  RCC  and  the  Disaster 
Preparedness  and  Prevention  Initiative  for  South  East  Europe  (DPPI  SEE)  –  and  will 
complement their activities. In particular, it will focus on synergies with the World Bank/UN 
“Disaster Risk Mitigation and Adaptation Initiative”. 

The  Community  Civil  Protection  Mechanism  facilitates  preparedness  for  and  response  to 
major emergencies, while the Community Civil Protection Financial Instrument provides the 
legal basis for financing all EU activities in the field of civil protection. Since 2007 both these 
instruments have been open to participation by the candidate countries and allow cooperation 
with other third countries, including potential candidate countries.  

The Commission supports full and prompt participation by the candidate countries in the civil 
protection  instruments.  Participating  countries  will  be  able  to  take  part  in  all  Community 
activities in the field of civil protection, including  calls for proposals, training programmes, 
simulation exercises and the real-time response to requests for civil protection assistance via 
the Mechanism.  

18 

This proposal is included in a package adopted in parallel with the present Communication. 

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The Commission also encourages the potential candidate countries to make appropriate use of 
the possibility to cooperate under the Community Civil Protection Mechanism and the Civil 
Protection Financial Instrument. This cooperation could cover areas falling within the scope 
of  both  instruments,  including  disaster  risk  reduction,  monitoring,  information  and  early-
warning  systems,  emergency  communication  tools,  increasing  operational  capacity  and 
improving  the  interoperability  of  civil  protection  services.  The  potential  candidate  countries 
should be gradually integrated in the development of the EU rapid response capability based 
on civil protection modules. In case of a disaster, these countries can also benefit from civil 
protection assistance of EU Member States delivered under the Mechanism. 

Candidate  countries  negotiating  accession  are  eligible  for  assistance  from  the  EU  Solidarity 
Fund.  In  case  of  a  disaster,  all  Western  Balkan  countries  may  receive  assistance  also  under 
Humanitarian Aid. 

The  Disaster  Preparedness  and  Prevention  Initiative  for  South  East  Europe  (DPPI  SEE), 
initiated  under  the  Stability  Pact,  has  been  developing  an  institutional  framework  and 
intensifying  its activities in areas such as flood response,  seismic  hazards and  exploring the 
possibility of creating a Joint Emergency Response Unit and a disaster management training 
programme. A high-level conference on disaster preparedness and prevention will be hosted 
in  Sofia  in  April  2008  by  Bulgaria,  as  SEECP  Chair.  The  Commission  will  continue 
cooperating with the DPPI SEE and the Regional Cooperation Council. It will seek to ensure 
that the regional initiatives are fully consistent with the Community action in the area of civil 
protection. 

Danube: environmental protection and navigation 

The  Commission  supports  a  wide  range  of  initiatives  and  organisations  aiming  at 
environmental protection, better use of inland waterway transport capacity and a high level of 
disaster prevention for the Danube. In particular, action is being taken under the auspices of 
the  International  Commission  for  the  Protection  of  the  Danube  River  (ICPDR):  the  recent 
joint statement on navigation and environmental sustainability for the Danube will make an 
effective  contribution  to  developing  an  integrated  approach  for  each  specific  project.  The 
Commission has been conducting negotiations for the Community’s accession to the Danube 
Commission, which regulates navigation on the river.  

8. Community financial support and donor coordination 

Since  2007,  the  EU  provides  financial  support  to  the  Western  Balkans  through  the  new 
Instrument for Pre-accession Assistance (IPA)19.  

IPA streamlines all pre-accession assistance within a single framework. It places more focus 
on  ownership  of  implementation  by  the  beneficiary  countries,  on  support  for  cross–border 
cooperation,  and  on  "learning  by  doing".  It  prepares  candidate  countries  to  implement  the 
regional, social, rural development and cohesion funds upon accession. 

The Western Balkans will receive around €4 billion under IPA for the period 2007-2011. This 
is the equivalent of € 30 per capita per year, by far the highest amount provided by the EC to 
any region in the world.  

19 

IPA covers all candidate and potential candidate countries, i.e. the Western Balkans and Turkey. 

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Particular emphasis will be given to state-building, rule of law, reconciliation, administrative 
and judicial reform, the fight against corruption and organised crime, and economic reforms, 
areas which the Council has stressed should be addressed at an earlier stage in the accession 
process.  

The European Investment Bank will increase its lending to the region (from a total of € 1.9 
billion for 2005-2007, to an estimated € 2.8 billion for the period 2008-2010). This includes 
lending covered  by  the  Community  budget  guarantee  and  lending  at  EIB's  own  risk.  EIB 
lending activities in the Western Balkans focus primarily on projects in the areas of transport, 
energy, small and medium-sized enterprises, environment, municipal infrastructure, education 
and health.  

A major effort is being made in support of Kosovo. More than € 1 billion from different EU 
financial  instruments  are  planned  to  assist  Kosovo's  development  and  to  finance  the 
international presence for the period 2007-2010. 

Coordination  between  the  Commission  and  other  donors  is  crucial  for  ensuring  the 
complementarity,  coherence,  effectiveness  and  efficiency  of  assistance.  The  Commission  is 
redoubling its efforts in this area, involving the EIB, the EBRD, other international financial 
institutions and bilateral donors. This is intended to leverage the maximum amount of support 
possible, bringing together grants and loans to focus on the region's main modernisation and 
development needs. 

In  2006,  the  Commission  signed  a  Memorandum  of  Understanding  with  several  IFIs20  on 
coordination and cooperation in supporting the candidate and potential candidate countries. At 
local  level,  a  consultation  mechanism  on  IPA  programming  was  established  in  2007  with 
Member  States’  embassies,  local  offices  of  IFIs  and  non–EU  donors  in  the  beneficiary 
countries. This coordination will be continued and intensified.  

Early involvement and consultation of beneficiaries throughout the entire programming cycle 
will continue to be ensured both at local level and through the organisation of regular regional 
meetings. 

In December 2007 the Commission met with all bilateral donors who have major programmes 
in  the  Western  Balkans  and  also  with  representatives  of  the  IFIs.  This  established  a 
framework  for  closer  cooperation  in  providing  assistance  to  the  region.  In  June  2008,  the 
Commission  will  organise  a  high-level  follow-up  meeting.  The  aim  is  to  coordinate 
implementation of assistance from all key actors in the region, both by country and by sector.  

The  Commission  is  preparing  a  donors'  conference  for  Kosovo  aiming  to  secure  financial 
assistance to help Kosovo implement its status and to promote socio-economic development 
for  all  communities.  EU  Member  States  and  other  international  donors  will  be  invited  to 
contribute. 

20 

The EIB, the EBRD, the IBRD and IFC, the Nordic Investment Bank, the Nordic Environment Finance 
Corporation,  the  Council  of  Europe  Development  Bank  and  the  Black  Sea  Trade  and  Development 
Bank. 

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III. CONCLUSIONS 

The Council and Parliament are invited to take note of the following conclusions. 

•  The future of the Western Balkans lies in the EU. The EU stresses the importance of peace, 
stability and security in this part of Europe, and welcomes all efforts of the Western Balkan 
countries  to  come  closer  to  the  EU,  meeting  the  necessary  conditions.  The  Western 
Balkans  have  the  potential  to  accelerate  their  course  towards  eventual  EU  membership, 
provided  they  pursue  the  path  of  reform  and  reconciliation,  and  meet  the  necessary 
conditions. The EU will assist them in this endeavour. 

•  The  current  year  is  a  crucial  one  for  the  Western  Balkans.  Ultimately,  it  is  the 
democratically  elected  leaders  of  the  region  who  will  determine  whether  their  countries 
will move decisively forward towards stability and a European future. 

•  Substantial progress can be made with Croatia this year, which can be a decisive one for 
Croatia's  accession  negotiations,  provided  the  country  makes  significant  progress  in  a 
number of key reform areas and meets the benchmarks. Croatia needs to address without 
delay  the  issue  of  the  Ecological  and  Fisheries  Protection  Zone,  in  line  with  Council 
conclusions. 

•  The former Yugoslav Republic of Macedonia needs to meet the key priorities, which have 
been  set  as  benchmarks,  in  order  to  demonstrate  its  readiness  to  undertake  accession 
negotiations.  The  Commission  considers  that,  with  sufficient  political  determination,  and 
sustained efforts, the necessary progress can be made in 2008. Any recommendation from 
the Commission will be based on its autumn progress report. 

•  Albania's  further  progress  towards  the  EU  depends  in  particular  on  satisfactory 
implementation  of  the  Stabilisation  and  Association  Agreement,  ensuring  that  future 
elections will meet international standards and strengthening the rule of law, especially the 
fight against corruption and organised crime. 

•  Montenegro's  further  progress  towards  the  EU  depends  on  strengthening  the  rule  of  law, 
especially  the  fight  against  corruption  and  organised  crime,  enhancing  administrative 
capacity  and  broadening  the  consensus  on  state-building.  Satisfactory  implementation  of 
the Stabilisation and Association Agreement is essential. 

•  As soon as Bosnia and Herzegovina meets the outstanding conditions, the Stabilisation and 
Association Agreement can be signed. The Commission considers that with the necessary 
political will and consensus, this can be achieved soon.  

•  Serbia  has  a  crucial  role  to  play  in  ensuring  stability,  good  neighbourly  relations  and 
regional  cooperation  in  the  Western  Balkans.  The  Commission  recalls  the  European 
Council  conclusions  of  December  2007  that  progress  on  the  road  towards  the  EU, 
including candidate status, can be accelerated. It calls on Serbia to reaffirm its commitment 
to a future within the European Union. 

•  The  EU  remains  committed  to  support  Kosovo's  political  and  economic  development. 
Kosovo has, like the rest of the Western Balkans, a clear and concrete EU perspective. To 

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this  end,  the  Commission  will  use  available  instruments,  in  particular  to  promote 
democratic reforms, good neighbourly relations and economic progress.  

•  Basic issues of state building, good governance, administrative and judicial reform, rule of 
law  including  the  fight  against  corruption  and  organised  crime,  reconciliation,  socio-
economic  development,  and  civil  society  development,  are  key  reform  priorities  for  the 
Western  Balkans.  Full  cooperation  with  the  International  Criminal  Tribunal  for  former 
Yugoslavia  (ICTY)  remains  a  condition  on  the  way  towards  the  EU  for  the  countries 
concerned. 

•  The  Commission  is  starting  a  dialogue  with  all  concerned  countries  in  the  region  to 
establish as soon as possible road-maps on the conditions for lifting the visa requirement. 
Progress in this process will be monitored by Council and Commission. 

•  The Commission will further increase the number of scholarships granted to students from 

the Western Balkans to study in the EU. 

•  Efforts  to  ensure  the  full  participation  of  the  Western  Balkan  countries  in  Community 

programmes and agencies will be stepped up. 

•  Commission support to civil society development and dialogue will increase substantially. 

A new financial facility is being established to that end. 

•  The Commission supports the Regional School of Public Administration (ReSPA) and its 
development into a fully fledged school to be established in Danilovgrad, Montenegro, as 
of early 2009. 

•  Coordination with International Financial Institutions, in particular the EIB and the EBRD, 
and  with  bilateral  donors  will  be  stepped  up  in  order  to  mobilise  grants  and  loans  for 
modernisation and development. The Commission, the EIB, the EBRD and the Council of 
Europe  Development  Bank  committed  to  establish  a  Western  Balkans  Investment 
Framework  by  2010  with  other  IFIs  and  donors.  A  Western  Balkans  Infrastructure 
Initiative is being launched by the Commission and a number of IFIs and bilateral donors. 
The  Commission  is  analysing  the  feasibility  of  further  initiatives  that  would  increase  the 
leverage of actions in support of the EU's strategic objectives in the region. 

•  The  Commission  proposes  a  new  disaster  risk  reduction  initiative.  This  will  help  the 
countries in the region to develop their capacities in this area. The Commission will also 
aim  to  associate  the  Western  Balkan  countries  in  the  Community  mechanism  and 
instrument in the field of civil protection. 

•  Parliamentary  cooperation  among  the  Western  Balkan  countries,  as  well  as  cooperation 
between the European Parliament and national parliaments will be intensified. The aim is 
to transfer best practices and to foster reconciliation. 

•  Further  development  of  regional  cooperation  is  an  integral  part  of  the  Western  Balkans' 
European agenda. The  recent transition of  the Stability  Pact  to the Regional  Cooperation 
Council  (RCC)  is  a  major  positive  step.  The  Commission  supports  the  RCC  and  other 
cooperation  frameworks,  including  CEFTA,  the  Energy  Community  Treaty  and  the 
Agreement  on  a  European  Common  Aviation  Area.  It  also  proposes  the  negotiation  of  a 
Western Balkans Transport Community Treaty. 

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•  Regional cooperation brings concrete benefits to the peoples of the Western Balkans and 
assists  them  in  drawing  closer  to  the  EU.  It  requires  continued  support  from  the  EU  and 
will be closely monitored by the Commission. 

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