[ALBSA-Info] Changing Stability Pact

[Agron Alibali]

Financial Times (London) 
October 30, 2001, Tuesday London Edition 1 
EUROPE; Pg. 12 



EU in wrangle on Balkans stability pact 

By JUDY DEMPSEY 

DATELINE: LUXEMBOURG 

BODY: 
The future of the Stability Pact for south-eastern Europe became embroiled in a political struggle among European Union foreign ministers yesterday as member states argued over political and economic control of the pact. 

The issue was raised in a letter signed jointly by Javier Solana, the EU's top foreign policy chief, and Chris Patten, external affairs commissioner. 

It recommended three things: the pact should continue to operate in the same way with the same resources; it should be refocused to take account of changes since June 1999 when it was established; or it should be wound up. Though vague in details, the letter has managed to pit member states and institutions against each other at a time when they are seeking a successor to Bodo Hombach, the former senior German politician. His contract as the pact's special co-ordinator ends next month, by which time member states will have to resolve their differences. 

These centre on countries such as Germany which has been defending the stability pact's present status, while Britain instead wants to draw the pact closer to the Commission and brought under the control of senior civil servants in Mr Patten's commission. 

Germany, anxious to defend Mr Homach's record, is backed by Austria and Greece to keep the pact as it is. However, they want it to consider the huge security issues in the Balkans such as arms smuggling and drugs and human trafficking. 

The neutrals are divided - although there is a sense it would be impossible to bring the pact under the commission since it is politically and financially backed by Washington. 

The post's resources are provided by the EU council which covers salary, office and travel costs of the co-ordinator. The commission provides office and travel costs of his staff. 

There is also the question of managing Euros 2.4bn (Dollars 2.14bn) worth of projects announced last week by the European Investment Bank, the Commission, the European Bank for Reconstruction and Development and other government agencies. These are supervised by the co-ordinator. 

Critics of the pact's progress so far, which include the World Bank, argue that the pact must change its focus from rebuilding infrastructure and start to channel resources into building civil institutions. In particular they want the pact to focus on judicial reform, rule of law and anti-corruption measures. 

Mr Hombach was chosen to run the pact in 1999, when Germany, backed by 28 states, including the US, Japan and Canada, and the main financial bodies, backed a programme to foster stability and regional co-operation in the Balkans after the Kosovo war. 



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