Annual Report of the Special Co-ordinator on the Activities of the Stability Pact in 2003

Executive Summary

The Thessaloniki EU-Western Balkans Summit in June 2003 was a watershed in the relations between the European Union and the countries of the Western Balkans. It has clearly dominated all the activities relating to South Eastern Europe since the beginning of the year and - through the Thessaloniki Agenda, which was endorsed by the Summit - will continue to guide activities of the EU in general, but also the Stability Pact in its work in the coming months and beyond.

The Thessaloniki Agenda has also highlighted yet again the complementary roles of the Stabilisation and Association Process and the Stability Pact. The Thessaloniki Agenda specifically calls on the Stability Pact to explore ways to fully develop the regional cooperation element of the SAP and requests the Stability Pact to support and facilitate regional cooperation in a number of specific areas, such as regional free trade, further development of the Regional Energy Market, freedom of movement, cross-border cooperation on the local level as well as fighting organised crime and corruption. By having Bulgaria, Romania and Moldova as additional Stability Pact partners beyond the five SAP countries, the Stability Pact acts as a horizontal platform between the SAP, the Accession Process and Moldova for these regional cooperation processes, bridging existing gaps.

In the region itself, the apologies exchanged between the Presidents of Croatia and Serbia and Montenegro for past wrongs committed by any citizen of one country against any citizen of the other, were an important sign of the improving situation in South Eastern Europe. Together with the subsequent apology by the President of Serbia and Montenegro towards Bosnia and Herzegovina they indicate a growing acceptance that good-neighbourly relations and regional cooperation are a necessity for the further development of the region. The exchange also serves as an example for other parts in the region, where past injustices still hamper political and economic progress. Overcoming these differences through regional cooperation and reconciling the peoples of the region for a joint future is one of the overarching aims of the Stability Pact.

In accordance with his mandate, Special Coordinator Erhard Busek has closely coordinated the activities of the Stability Pact with EU institutions, EU Member States and other Stability Pact partners. The Informal Consultative Committee (I