Brussels, 08/05/2000 (Agence Europe) - The modernisation and the strengthening of the Public Institutions for Albania, Bosnia-Herzegovina, Croatia and Montenegro, as well as the reconstruction of infrastructures and the economy of Kosovo and Serbia, are the main aims of the European Commission's 2000-2006 Plan for the Balkans, in the prospect of stabilisation and association agreements with the EU. This Plan will be formally proposed on Wednesday by the European Commission, which will then adopt the draft framework regulation concerning what is now called the CARDS programme, according to the English acronym for the Community programme for assistance, reconstruction, development and stabilisation in the Western Balkans. The Commission last week proposed - before the programme - revision of financial perspectives necessary for the financing of this programme of EUR 5.5 billion, which will cover all the Community actions in the region, except for humanitarian aid and "actions in favour of democracy" (see EUROPE of 3 May, p.11, and 4 May, p.9).
The breakdown of the funds per country has been established, explained the Commission, relating to: a) the amount which, when the time comes, will be used for the reconstruction of Serbia (the Commission provides, as we said, up to EUR 2.26 billion for post-Milosevic Serbia); b) the capacity for absorption of funds by each country, which is more or less high depending on the availability and the speed of enterprises and local administrations to elaborate and implement projects; c) estimated financing from other donors; d) efforts made in favour of countries of South East Europe in the context of the former Phare programme.
The implementation of the programme, and mainly the breakdown of the tasks between the European Reconstruction Agency and other bodies, will be specified in the CARDS regulation. This regulation should not, however, present in a very detailed manner the result of the situation in each country (this work had been carried out last March on the occasion of the Donors Conference), any more than the details of programmes, which should be the subject of annual programmes for each country. The question is that of knowing whether this will be sufficient to convince the Member States, and the Parliament,, that the figure of 5.5 billion is not only correct but also justified and necessary.
The amount for Serbia is at the same time the largest and the most uncertain. On one hand, the amount indicated for each year will only be paid if the Commission considers that Serbia has become sufficiently democratic. In the contrary case, it would not be put off till later years, said the Commission. Furthermore, the Commission itself, in its draft revision of financial perspectives, stresses that, of course, this amount should be reviewed when the time comes, in the light of contradictory assessments established on the ground, and the Donors' Conference, to be organised for Serbia. The Commission proposal is based for now on the evaluation at EUR 4 billion of damages "provided by a group of Serb experts". The grants that the Commission proposes to make would come as a complement to the loans made by other donors for the reconstruction of infrastructures, but also for relaunching Institutions and the economy. Aid to institutional and economic aid and industrial restructuring would be part of the stabilisation and association process for the sum of EUR 80 to 100 million. The rest would be intended for reconstruction. Pending the setting in place of these programmes, the Commission proposes to devote 40 million annually in order to support municipalities opposed to the current system.
For Kosovo (EUR 1.1 billion, of which 1.01 from 2000 to 2003), the Commission is based on the study published last November in collaboration with the World Bank and on the promises made on the occasion of the Donors' Conference for Kosovo. The establishment of a market economy, transparent and efficient public institutions, the construction of houses and infrastructures are the three main aims.
The Commission is proposing to allocate to the other beneficiary countries a total amount of EUR 2.141 billion, without, for now, giving details of the amount per country. In Albania, the Commission plans to support "strengthening of institutions and the training of the Administration". In Bosnia, the damage caused by the guerre has been gradually repaired. Aid should be reduced and geared to economic reforms. In Croatia, the restructuring of the economy and the modernisation of the institutional and legislative framework, as well as the return of refugees, should benefit from Community support in the aim of preparing the country for an association agreement with the EU. In Montenegro, the aim is also to help modernisation of the administration and the economy. The same is true for FYROM (Macedonia), for which the Commission above all on reform of legislation governing corporate life and the financial sector. EUROPE recalls that FYROM is the only country in the area with which negotiations for the association agreement have begun.
CARDS programme to be financed by credits that Agenda 2000 earmarked for other programmes and external policy (Mediterranean countries, New Independent States of former USSR, etc.
In its new financial programme under Heading 4 for 2000-2006, the Commission proposes cuts compared to the version developed in the context of Agenda 2000. The Commission stresses that, despite such cuts, most of the programmes nonetheless have increased funding compared to the previous period (1993-1999). It must be noted that this "programming" is adopted only by the Commission and does not link the two branches of the budgetary authority - Council and European Parliament - which, each year, will fix the amounts allocated to the various programmes.
The Commission therefore proposes, from 2000 to 2006: i) for Mediterranean countries, 8.1 billion instead of 8.76 billion. This allocation is, however, that which increases the most compared to 1993-1999 (except for the Balkans, of course); ii) for the New Independent States of the former USSR, 3.68 billion instead of 4 billion (in the knowledge that the new Tacis regulation already proposed a lesser amount than that foreseen in May 1999; iii) for Latin America, 2.19 billion instead of 2.417; iv) for South Africa, 850 million instead of 875; v) for Asia, 3.21 billion instead of 3.347; vi) for all the other programmes: 12.73 billion instead of 12.750 (of which, for food aid 3.45 billion instead of 3.56; for humanitarian aid: 3.39 billion instead of 3.45).
These reductions come in addition to the 1.85 billion already foreseen in May 1999 for the Balkans, to the 1.8 billion that the Commission proposes to release through revision of the financial perspectives, and to the funds allocated to the Balkans in the Budget 2000.