Brussels, 10/11/2005 (Agence Europe) - Here are the main elements of the progress reports 2005, which the European Commission adopted on Wednesday for Albania, Bosnia-Herzegovina, Serbia-Montenegro and Kosovo. The Former Yugoslav Republic of Macedonia (FYROM) was the subject of a special report, in which the Commission recommended that it be granted the status of candidate country (EUROPE 9065).
Albania. The Commission considers that negotiations underway since January 2003 on a Stabilisation and Association Agreement (SAA) can be concluded very soon. Overall, the political situation in Albania has improved, according to the Commission. The democratic, legal and administrative institutions of Albania have been reinforced and the Parliamentary elections of 2005 were held in line with international norms and standards. "Serious efforts" have also been made to fight corruption (although the concrete results of this still leave much to be desired) and to improve respect for human rights, the Commission notes. Furthermore, Albania has continued to play a "positive economic and political role" in the region. However, it must improve the implementation of the legislation, freedom of the media, the efficiency and independence of the legal system, and improve respect for property rights. Economically speaking, the Commission notes that the Albanian economy is working according to the principles of a market economy "to a certain extent". Even so, "vigorous" additional reform efforts are needed to plug the gaps affecting the competitiveness of the economy. The performances of the financial sector, the application of property rights and the business environment must improve, according to the Commission. As for its adaptation to the community acquis, Albania has made progress, but its administrative capacity still needs further improvement. Progress has also been made in terms of the issue of the internal market, and in the fields of customs, taxation, transport, energy, the information Society and the media, border controls, police, the fight against money laundering and the trafficking of illegal drugs. On the other hand, Albania must step up its efforts in several fields, particularly the free movement of capital, competition, agriculture and fisheries, the environment, the Visa system and the fight against organised crime.
Bosnia-Herzegovina. On 21 October, the Commission recommended the opening of negotiations for a Stabilisation and Association Agreement and presented draft negotiation directives, which will probably be adopted by the Council of 21 November (see EUROPE 9063). Negotiations may be launched in December and concluded before the end of 2006, said Commissioner Olli Rehn on Wednesday. In the political field, the Commission notes progress in the reform of the legal system and defence and, more recently, the restructuring of the police, but the functioning of the institutions must be improved. All too often, political and institutional reforms are coming up against "complex governmental structures, fragmented decision-making power and a lack of resources and qualified staff", said the Commission. The country must also "seriously" improve the efficiency of its executive and legislative bodies. The coordination between the State and the two entities and the fight against corruption must also be tightened up. On the other hand, cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) is considered to have improved substantially, the Commission is pleased to note. Economically speaking, developments in 2005 have been positive. Economic growth has bounced back, inflation remained low and measures have been taken to improve the business environment. Harmonisation has continued between the entities, particularly in the field of indirect taxation. "Despite all of this, the economy of Bosnia-Herzegovina is working only partially in line with the market economy principles", the Commission reports. As for the adoption and implementation of the community acquis, progress has been made, particularly in terms of the legislation on: the internal market, customs and taxation, competition, public procurement and intellectual property rights, agriculture, the environment, transport, energy and public broadcasting services. Positive developments have also been noted on visas, border control, asylum, migration and money laundering, but in these fields, "efforts must be seriously stepped up".
Serbia-Montenegro. Negotiations on the conclusion of an SAA have been underway since 10 October and are set to be concluded before the end of 2006, like those with Bosnia-Herzegovina, said Commissioner Rehn. Serbia-Montenegro has continued its reforms in public administration and implemented the administrative structures necessary for negotiations of the SAA, the Commission is pleased to note in the political chapter of the report. "Substantial progress" has been made in the field of cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY), "but this cooperation must continue in order to achieve unfailing collaboration" and, if possible, the arrests of Radko Mladic and Radovan Karadzic (although the Commission does not seem to be making their arrest a strict condition for the SAA to be concluded). Still within the field of politics, the Commission is still waiting for Serbia-Montenegro to show full respect for the Constitutional Charter, and to make further efforts to reform public administration and the legal system. The country must also do more to fight corruption, and ensure an effective democratic control over the army. Furthermore, "the political leaders must adopt a constructive approach towards Kosovo", the Commission states. Economically, the Commission notes that "in both republics, the economies are functioning party according to the principles of the market economy", but that "vigorous additional reform efforts" will be needed to plug the gaps in terms of competitiveness. In Serbia, the main positive changes emphasised by the Commission are a budgetary re-balance, the reduction of the trade deficit, a reduction of external debt, and progress in terms of the restructuring and privatisation of the banking sector. "However, inflation and salary pressure have increased and the business environment remains difficult". The government sector is still absorbing too many resources, in the view of the Commission. In Montenegro, the main positive developments have been the reinforcement of economic growth, the reduction of inflation, continued privatisation, a reduction in unemployment, the reduction of the budgetary deficit and an increase in the number of bank loans. "Notwithstanding this progress, development of the private sector remains hindered by an inefficient legal system", the Commission adds. On the adoption of European legislation (community acquis), both republics have made "satisfactory progress" in the field of the internal market, particularly customs, competition and trade, but must still improve their legislative and administrative capacities in order to satisfy future obligations under the SAA. Moreover, " no visible progress" has been made in fields such as visas, border controls, asylum and migration (i.e. the fields in which competencies are shared between the State Union and the republics).
Kosovo (for the first time, the Commission has drawn up an individual report for the country, taking account of its current status under resolution 1244 of the Security Council). After the elections of 2004, which produced the result of a coalition government, progress has been made on the implementation of political standards defined by the UN, but Kosovo has made only "very modest" progress in the field of refugee returns, the freedom of movement and property rights, says the Commission. Furthermore, "the non-respect for the rule of law and problems of organised crime and widespread corruption are very worrying". Economically, Kosovo is in the process of setting up a "regulatory framework based on the market economy principles". Frequent use of the euro has created monetary stability, the Commission notes, but despite this, it also observed that economic growth is "weak" and that unemployment remains "very high". "If the economic situation is to be improved, additional efforts are necessary to tackle problems such as property rights, the shortcomings of the legal system and inadequacies within the infrastructure", the Commission affirms. Kosovo has made progress in the implementation of European standards, particularly in the fields of consumer protection, customs, taxation, the environment, energy and the media.