EUROPEAN PARLIAMENT WORKING DOCUMENT. Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy.

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1 EUROPEAN PARLIAMT Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy 13 January 2003 WORKING DOCUMT on the Parliamentary Dimension of the Stability Pact: evaluation and proposals for the future Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy DT\ doc PE

2 BACKGROUND 1. The foundations of the Stability Pact for South Eastern Europe were laid down on 10 June 1999 in Cologne, at the EU's initiative. The Cologne document states that effective implementation of the Pact depends in developing and strengthening administrative and institutional capacity as well as civil society, in order to consolidate democratic structures and have long-term benefits for effective administration and absorption of international assistance for the region. 2. In this context, the parliamentary dimension was to play a special part and materialised in the form of a Parliamentary Troika, created in June 2001 and chaired, on a semestrial rotating basis, by each one of the participating parliamentary structures (European Parliament and Parliamentary Assemblies of the OSCE and of the Council of Europe). 3. During its first year and a half the Troika organised, under the initiative of the corresponding Presidency, three Parliamentary Conferences with a view to establishing political guidelines and priorities for South East Europe and promoting interparliamentary exchange of views. These Conferences aimed also at reinforcing the role of Parliaments in creating stability and sustainable political and economic development in South Eastern Europe, the ultimate goal being to pave the way toward European integration Other initiatives aiming at promoting multilateral parliamentarian dialogue took also place under the initiative of each chairmanship of the Troika (e.g. seminars, networking meetings, visits to the countries etc.) 5. As Mr Erhard Busek, Special Co-ordinator for the Stability Pact for South Eastern Europe, acknowledged at the third Conference in Tirana in October 2002, the implementation of the Stability Pact is a process, and measuring its success is thus not as easy as measuring GDP growth. 6. It may nevertheless be useful, at this stage of the process, to look back to the objectives fixed during this last year and a half of Parliamentary co-operation and evaluate the follow up given to the parliamentary guidelines and recommendations. 7. The aim of the present document is, therefore, to evaluate the results achieved so far in the 9 major parliamentary priorities and make new proposals for 2003, during which the European Parliament will be in the chair of the Stability Pact Parliamentary Troika. 1 The first Stability Pact Parliamentary Conference took place on 17/18 September 2001 in Brussels, under the chairmanship of the EP; the second on 6/7 June 2002 in Bucharest, under the chairmanship of PA of OSCE; and the third on 14/16 October 2002 in Tirana, under the chairmanship of PA of CoE. PE /10 DT\ doc

3 FOLLOW UP TO THE PARLIAMTARY RECOMMDATIONS Creation of specialised parliamentary structures to deal with the Stability Pact 8. At the first Parliamentary Conference, in Brussels, it was agreed to create "ad hoc" or permanent political structures in the National Parliaments of South Eastern Europe and in the Parliaments of the members of the Troika (e.g. working groups or specialised committees). At the second Conference, in Bucharest, parliamentarians recognised that the possibilities of the Stability Pact were not being utilised in full. Follow up and proposals: - A questionnaire on the follow up given to this recommendation should be addressed to the National Parliaments of the 5 countries concerned in the SAP, and to the candidate countries to the EU, partners of the Stability Pact for SEE. - The Conference of Presidents of the political groups of the European Parliament delegated to the Committee on Foreign Affairs the competence to deal with the Stability Pact for SEE, where a working group scrutinises and deals with it. - The situation in the Parliamentary Assemblies of the Council of Europe and OSCE should be clarified Conflict prevention and parliamentary networking 9. One of the main objectives fixed by the first Stability Pact Parliamentary Conference, in Brussels, was creating a practice of networking, including a parliamentarian system for communication in the area of conflict prevention. 10. This was to take the form of a networking system, based on the working groups or specialised committees mentioned above, allowing the exchange of information at regional and international levels, in order to react at the earliest possible stage to any sign of destabilisation or significant and systematic violation of the rule of law ("early warning system"). 11. The practice of networking was also to be developed by periodical parliamentarian meetings aiming at evaluating the implementation of the policies and their gaps. Follow-up: - On a case by case basis "early warning" contacts have been developed between Members of the European Parliament and National Parliaments (e.g. Albania, FYROM etc.) - A Member of the European Parliament (Mrs Doris Pack) chairs one of the Parliamentary Networks with the support of the East West Institute (4 meetings took place during which parliamentarians agreed on political guidelines in areas of education, environment, fighting human trafficking, immigration, refugee return and future of the Stability Pact A fifth meeting is foreseen for December 2002). DT\ doc 3/10 PE

4 - A network of women Parliamentarians has been set up with the support of the "International Institute for Democracy" and the Greek Authorities. - The European Parliament organised (with the support of the service for the relations with the National Parliaments) in 2001 and 2002 seminars addressed to parliamentarians and parliamentary staff. Promoting intercultural dialogue, tolerance and reconciliation via the education system and free and responsible media 12. At the second Parliamentary conference in Bucharest, free and responsible media and an improved education system rejecting the misuse of politically biased school material were clearly recognised as key elements to build stability in the framework of the EU democratic values. 13. A clear link was then established between the cultural and the security dimensions and parliamentarians underlined the role of the cultural and education sectors to fostering peace and stability. Political and economic arrangements were to be complemented by cultural actions, addressing the root causes of the countries' instability. National Parliaments and international institutions were urged to allocate more resources to education and the development of free and responsible media, in order to promote a better understanding of history, as well as a greater tolerance. 14. The following concrete proposals were made: reinforcing control of governmental activity; increasing technical and financial assistance to these sectors (although not yet recognised as Stability Pact priorities), creating programmes promoting cross-border exchange at sub regional level and with the EU (the Stability Pact was also asked to evaluate, in direct co-operation with all partners, the possibility to create exchange programmes similar to those already existing in the EU, e.g. Socrates and Youth for Europe). Follow up: - Overview by the Stability Pact on October 2002 on the current status of the Media laws and their implementation (identification of the major problems). - First Commission's proposal creating, on the basis of the current EU programmes, the possibility for citizens from other countries than the EU Member States, candidate countries or associated countries to benefit from an exchange system, similar to the one already in force within the EU. This proposal is a first step by the EU in promoting, on a regular basis, exchanges also with citizens of any country (including SEE) 1. - Signature of the Electronic South Eastern Europe Agenda for the Development of Information Society by Albania, BiH, Croatia, Macedonia, Moldova and Yugoslavia (29 October 2002). 1 COM(2002) 401 final on a proposal for a Decision for a Programme "Erasmus World" ( ). PE /10 DT\ doc

5 Return of refugees and protection of minorities 15. At the first Parliamentary Conference in Brussels, it was envisaged to create an "ad hoc" working group made up of Parliamentarians from countries with ethnic minorities, as an advisory mechanism to help the parliamentarians to solve their problems, including advising the Macedonian Parliament with the elaboration of minority-related legislation. At the second and third Conferences, parliamentarians also put the emphasis on the crucial role of Parliaments in establishing the legal framework for the return of refugees (e.g. property and job creation) and for the protection of minorities. Parliamentarian contribution to scrutinising the proper implementation of the legal framework by the central and local authorities was also underlined. Follow up and proposals: - EP resolution on the implementation of the Stabilisation and Association Process of 7 November 2002, in particular paragraph 2 (conditionality for EU assistance and implementation of SAP). - Questionnaire to be addressed to the National Parliaments on the adoption and implementation of laws on returns, protection of minorities and property restitution. - Implementation of the AREA initiative under the Stability Pact and action by UNHCR (at the end of October the estimate of refugees and displaced persons still seeking solutions in SEE decreased to people). This initiative will phase out in 2003 and the follow up of its actions will be mainstreamed into other Stability Pact initiatives. Fight against corruption, organised crime and terrorism/reforming the Defence and Security Systems 16. Since the first Conference, Parliamentarians made it clear that the fight against these plagues depended heavily on the way in which national Parliaments exercise their control and scrutinity powers on the governments and administrations, as well as on their ability to ensure that the necessary financial resources are made available. 17. On that occasion, it was decided to organise, on a regular basis, parliamentary debates and hearings on these matters and to follow up the implementation of the Stability Pact Initiative to Fight Organised Crime (SPOC). 18. The urgency of combating organised crime on a basis of a root-cause approach was reiterated at the second Conference in Bucharest where parliamentarians also reaffirmed that Parliaments have to adopt anti-corruption measures and ensure the democratic control of the implementation of the legislation adopted; at this Conference parliamentarians recognised that the success of reforms and the efficiency of international assistance depend on the ability to maintain good governance, and reinforce the fight against corruption and organised crime. DT\ doc 5/10 PE

6 19. At the third Conference in Tirana, parliamentarians called again for the intensification of the fight against corruption and organised crime, including trafficking in human beings, drugs and arms and for renewed parliamentary co-operation with a view to the adoption of intra-regional legal initiatives in this sector. Parliamentarians recognised, once again, the importance of avoiding dispersed and individualistic approaches and the need to act in the framework of a regional strategy under the Stability Pact and its special initiatives (SPOC- for combating organised crime and SPAI for combating corruption); all other parliamentarian regional co-operation initiatives (in particular PABSEC) were invited to develop their co-operation and co-ordination with the Stability Pact, in these sectors. 20. During the three Parliamentary Conferences, clear messages were delivered, asking for deeper involvement of the Commission and other EU structures in favour of the SPOC and SPAI initiatives, the Centre for Combating Transborder Crime created in Bucharest by the Southeast European Co-operative Initiative (SECI) and the "Southeast European Clearing House for the Control of Small Arms and Light Weapons" (SEESAC), located in Belgrade, which should also work together in straight co-operation with each other. It was also underlined the necessity of an adequate training and adequate co-operation among the police officials, judges and prosecutors, not only from SEE but also among them ant the EU. 21. Concerning the fight against terrorism, the first and second Conferences underlined that the problem should be tackled on the basis of a root-cause approach, accompanied by rebuilding and whenever the case strengthening civil society and the rule of law. The fight against terrorism and organised crime should be done in respecting human rights and accompanied by clear systems of parliamentary monitoring. 22. The first Parliamentary Conference in Brussels also stressed that the reform of the defence and security sectors were essential to stabilising South-Eastern Europe and should entail, among others, the downsizing of forces and the democratic control of all military, paramilitary and police forces. Similar approach was expressed at the second Parliamentary Conference in Bucharest. Follow up: - Support of the EP to the development of SPOC and SPAI initiatives, implemented under the Stability Pact and their co-operation with the Center in Bucharest. - However, still lack of clear commitment by the Commission or the Council on cooperation with the countries of SEE in the sectors of police and judiciary, as well as with the Centres in Bucharest and Belgrade. - EP resolution on the Stabilisation and Association Process of 7 November 2002, in particular paragraph 2 (conditionality for EU assistance and support to the current regional Centres linked to this fight). - EP recommendation for the EU institutions and structures (e.g. Europol) to promote co-operation and whenever the case reinforce it with the Centre for Combating Organised Crime in Bucharest and the SEE Clearing House for SALW in Belgrade. PE /10 DT\ doc

7 The respect of the rule of law, good governance and the reform of the judicial system 23. At the second and third Parliamentary Conferences, parliamentarians recalled the need for regional co-operation also in areas of law enforcement, exchange of information and border control; they also underlined the role of an efficient and independent judicial system in fighting corruption and organised crime. Follow up: - EP resolution on the implementation of the Stabilisation and Association Process of 7 November 2002, in particular paragraph 2 (political conditionality for EU assistance and the co-operation with the ICTY and support to full effectiveness of the ICC). - The EP intends to give special attention to the role of civil society in developing democratic stable political systems at the next Stability Pact Parliamentary Conference to be organised next year by the EP. Trade liberalisation 24. The importance of giving parliamentary support to programmes serving the objectives of the Memorandum of Understanding on trade liberalisation in SEE, signed under the Stability Pact in June 2001 and aiming at setting up a generalised Free Trade Zone among the countries of South-East Europe (55 million people), was underlined at the first and second Parliamentary Conferences. The third Parliamentary Conference in Tirana called for the conclusion of the 10 last Regional Free Trade Agreements, before December In case such a signature is achieved a total of 21 trade agreements will have been signed during the last one and a half year, creating a free trade zone. 25. In this regard it was also stressed that UNMIK should be provided the conditions necessary to promote Kosovo's participation in regional co-operation. Follow-up: - 12 Free Trade agreements were concluded by mid-november At the same date, 9 agreements were under negotiations. Promoting economic reforms and sustainable development 26. At the first Conference in Brussels, the need for further commitment in economic reforms designed to bring about a sustainable economic growth was clearly recognised as a priority. Stress was thus laid on promoting the private sector and restoring investor confidence, as well as on integrating into the regulatory framework all necessary requirements for environmental protection. DT\ doc 7/10 PE

8 27. The importance of launching concrete initiatives and projects capable of rapidly enhancing economic growth was reassessed recently in Tirana, where special attention was given to the status of the implementation of the reconstruction and economic regional development projects, in particular in the areas of transport, energy, water, water sanitation. Some new priority projects were also supported (e.g. South East Europe Electricity Regulatory Forum, Sava River Basin Project). 28. The contribution of reinforced co-operation between the World Bank and the European Commission in the framework of the South East Europe Reconstruction Office to speeding up the implementation of the current projects was also underlined; at the same time parliamentarians recognised that the slow progress noticed in some cases, can become very dangerous, as the international assistance is giving signs of phasing out. Follow-up: - Improvement of macroeconomic indicators in some countries (e.g. high growth rates and increased foreign investment). - The evaluation report presented by the Special Co-ordinator to the Council on 21 October 2002 confirmed that the combined list of regional infrastructure projects identified for international assistance at the 2 funding Regional Conferences, (in Brussels in March 2000 and in Bucharest in October 2001) totalised 46 intra-structure projects for a cost of 3.46 billion Euro; of which 37 are in the transport sector (roads and railway) and account for 2.42 billion Euro - 70% of the overall cost. Other reconstruction and development projects are envisaged in the energy sector (for around 701 million Euro) in the water supply, wastewater treatment and environmental protection (for 301 million Euro). New project on SEE electricity Forum answers to the EP political requests made in the report on the European Agency for Reconstruction. - Around 50% of all the projects have started. The usual "Project cycle" however, does not facilitate their physical implementation so soon as politically desirable. The slow progress of many of the reconstruction projects was mainly due to the weak institutional capacity of governmental and local authorities and/or long negotiations with national authorities in particular in areas of public procurement (a list of examples was presented by the Stability Pact at the Third Conference in Tirana). CONCLUSIONS AND PROPOSALS Progresses achieved and aspects to clarify 29. Significant progress has been achieved in the last year and a half in terms of political stabilisation, economic reconstruction and development, as recommended by parliamentarians in the framework of the parliamentary dimension of the Stability Pact. PE /10 DT\ doc

9 30. The implementation of some of the political recommendations made during the Stability Pact Parliamentary Conferences need, however, to be clarified (e.g. functioning of special structures to deal with the Stability Pact and in particular the Stabilisation and Association Process; the implementation of parliamentary networks etc); a questionnaire on the outstanding recommendations and their implementation should be addressed to the National Parliaments of South East Europe, as soon as the EP will be in the Chair of the Stability Pact Parliamentary Troika. New approaches and proposals as regards the European Parliament activity 31. Parliamentary dialogue among the parliamentarians of SEE and with the European Parliament should be reinforced by developing new forms of dialogue, adjusting the current practices of Parliamentary Conferences twice a year, multilateral meetings in the framework of an increasing networking practice, and training/seminars. Some new priorities for the activities of the Stability Pact in 2003 should also be proposed Reinforcing political parliamentary dialogue and exchange of information 32. The following proposals are made: - Replacing the current practice of two annual Stability Pact Parliamentary Conferences by one annual Conference, involving the Parliaments of the partner countries of the Stability Pact, the Parliamentary Assemblies of the Council of Europe and OSCE and the European Parliament; this conference should focus on major strategic aspects for the international community intervention in the region; - Creating the new practice of at least one meeting per year between the Committee on Foreign Affairs of the European Parliament and the representatives of the special structures created in all the National Parliaments of South East Europe. These multilateral meetings should be organised in the framework of the implementation of the Stabilisation and Association Process (SAP) and should aim at evaluating not only the implementation of this process, but also the complementarity that the Stability Pact activity should have; it should be held before the adoption in AFET of the EP annual report on the SAP (see the EP resolution of 7 November 2002 on the SAP). This kind of meetings should be a first step in the creation of a practice of a multilateral and structured parliamentary dialogue between the SEE countries, beneficiary of the Stabilisation and Association Process and the European Union. The first meeting is expected to be organised by March 2003 in the framework of the hearing in the Committee on Foreign Affairs of the European Parliament, scheduled for 18 March 2003, on a new Strategy for South East Europe; - Promoting the involvement and participation of the Stability Pact structures, in the usual bilateral meetings held at least twice a year between the representatives of the European Parliament and the National Parliaments of SEE (participation of the Stability Pact in the inter-parliamentary delegation meetings EU/SEE); DT\ doc 9/10 PE

10 - Ensuring that the seminars organised every year by the European Parliament for parliamentarians or staff of SEE National Parliaments, will focus on EP political priorities, as adopted in its annual resolution on the SAP. Identifying new priorities for the Stability Pact activity for The report addressed by the Special Co-ordinator to the Council of Ministers of the EU on 21 October 2002, identifies the major difficulties and proposes areas for intervention for The EU Council of 19 November expressed full support to these key tasks as basic tools for ensuring enhanced complementarity to EU's Stabilisation and Association Process, improved efficiency and increased regional co-operation and ownership. It look forward to receiving, in good time ahead of the Regional Table meeting (16 December), proposed objectivs for the Stability Pact activity in It also invited the Special Co-ordinator to present a report on the new aproach for the Stability Pact activity ahead of the coming Thessaloniki Summit on the "Zagreb Process" envisaged for 21 June The European Parliament has, in line with its resolutions, in particular the one on the Stabilisation and Association Process 1, insisted that the Stability Pact, also takes into account in its priorities and achievables for : - the need to build up or reinforce an active civil society and duly take into account its role in maintaining the respect of democracy and the rule of law, including the cooperation with the International Criminal Tribunal for Yugoslavia and the support to the full effectiveness of the International Criminal Court; in fighting organised crime and corruption and in setting up a functioning market economy; - the need for the Stability Pact to give more emphasis to the assistance to the national education systems, in order to bring them into democratic standards, as well as to building up a free and responsible Media; - the need to reinforce the complementarity of the Stability Pact's activity with the Stabilisation and Association Process by increasing co-ordination between the Stability Pact and other regional initiatives, in order to focus their activity in the priority sectors for bringing SEE countries closer to the European values and put it in line with the objectives of the Stabilisation and Association Process (e.g. comprehensive co-ordination between the Stability Pact activity and CEI, BSEC, SECI, Adriatic Ionian Initiative, facilitating their contribution to the implementation of the Stabilisation and Association Process). 1 EP resolution of 7 November 2002 on the Stabilisation and Association Process. 2 Speech by Mr Hannes Swoboda at the 4th Stability Pact Regional Table. PE /10 DT\ doc