Brussels, 02/07/2001 (Agence Europe) - The Donor Conference for the Federal Republic of Yugoslavia (FRY) that took place in Brussels last Friday ended in success with the international community pledging $1.28 billion for 2001 alone for economic, social and institutional reforms.
"Success" is no empty word since the European Union, the World Bank and the Yugoslav government had identified that $1.25 billion would be needed in 2001 (see EUROPE of 29 June, p.15, and 30 June, p.7). The EU, its Member States and the European Investment Bank (EIB) will supply more than half of this amount. The EU will provide restructuring aid of some EUR 230 million (mil) and the EIB has pledged EUR 150 mil. The most generous Member States are Italy (EUR 115.2 mil), Germany (EUR 78.23 mil) and Greece (EUR 53.37 mil). Followed by Austria (EUR 33.10 mil), the UK (EUR 16.60 mil), France (EUR 13.64 mil), Sweden (EUR 12.83 mil), Spain (EUR 8.75 mil), the Netherlands (EUR 6.81 mil) and Luxembourg (EUR 6.50 mil). The United States and Japan will provide EUR 212.20 mil and EUR 58.42 mil respectively while the World Bank has pledged EUR 175.27 mil.
These pledges by the international community were probably largely motivated by the former Yugoslav President, Slobodan Milosevic, being sent to The Hague the day before, although the FRY Deputy Prime Minister, Miroljub Labus, described the timing of the handing over of the former President and the pledges by the international community as no more than a "coincidence", although he did admit at a press briefing on Friday that the handing over of Milosevic had been one of the elements in the equation, although he saw the determining factor as the reform process undertaken by FRY in October 2000. He added, "Let us consider all the donations pledged as investments in the future of the region. These investments will create the framework for the peace and stability of FRY as well as all other countries in the region. Investing in the future is a much better option than bearing the costs of instability and havoc". Asked about the potential impact of the difficulties facing the current FRY leaders, Mr Labus said that the governing coalition would remain united and that should early elections be called, this would not lead donors to slow down their payment of the pledged amounts.