Brussels, 16/11/2000 (Agence Europe) - The European Commission and the World Bank will, during a donors' coordination meeting on 12 December, present the results of their assessments of urgent needs in Serbia. Then, the two institutions will continue their assessment of medium and long-term requirements in order to establish a programme for reform and economic reconstruction in cooperation with Serbia and the international finance institutions. A donors' conference will be organised "as soon as possible" in 2001 in order to receive donor pledging from the international community for implementing this programme.
The timetable was presented this week in Paris by the High Level Group for South East Europe, which brings together the European Commission, the World Bank, donor countries and international institutions. In their conclusions, the ministers and representatives of international institutions insist on the fact that the former Yugoslav Republic "needs to undertake a transition to a fully market-oriented economy". The programme for reform and reconstruction should "emphasise early action on an agenda of transition reforms needed to stimulate a healthy private sector and pave the way for sustainable growth and recovery". Among these reforms is that of the public sector which must function in a transparent and efficient manner.
The former Republic of Yugoslavia should agree to a budgetary and macroeconomic framework that suits the international financial institutions in order to benefit from their aid. Belgrade has sizeable payment arrears with most of these institutions. The settlement of this issue in an "appropriate macroeconomic framework" is a "precondition" for becoming a member of these Institutions and/or benefiting from their financial aid, states the meeting's final press release. The World Bank is encouraged to settle this issue as quickly as possible, so that it may help Serbia.
As far as Kosovo is concerned, the High Level Group for South East Asia welcomes the progress made towards economic reconstruction, and stresses that "the external financing requirement of Kosovo's 2000 budget has been fully met by donors".
"Aid to the former Republic of Yugoslavia will not be to the detriment of the programmes for other countries of the region". Donor meetings will be organised for different countries. The date of such conferences will be determined in relation to the reform programmes, including regarding economic stability and according to their needs". A second general conference, intended to support regional projects, will be organised "as early as possible in 2001".
The EUR 200 million allocated by the EU covers most of the emergency aid needs (fuel deliveries for winter have already begun). Japan has pledged $10 million and the United States has expressed its intention to intervene but has not yet given a figure.