“Security and Democratisation in the Western Balkans: Consolidating Stability, Pushing Reforms”

Panel I: “Prospects for EU and NATO Enlargement in South-Eastern Europe”

Distinguished guests, ladies and gentlemen,

I am pleased to be here with you to discuss under the auspices of the NATO Parliamentary Assembly how to consolidate stability and advance reforms in the Western Balkans.
 
There could be hardly a more relevant and timely subject than this one when it comes to Bosnia and Herzegovina.
 
The European Union remains fully committed to consolidating the stability of BiH and is helping to anchor the country’s economic and political reforms in the EU accession path.
 
It is no secret that BiH has offered for years a particular challenge by combining persistent post-conflict features with being a potential candidate country. Many are again calling for a ‘special’ approach to BiH EU integration. Yet, few seem to notice that the EU has already created a tailor-made approach for BiH. For instance, the EU reinforced its presence to include, besides a fairly large EU Delegation, a strong office of the EU Special Representative and a CSDP military mission.
 
The latter performs an important function in consolidating the stability of BiH on building the capacity and training the Armed Forces of BiH and in consolidating the integrity of BiH, a key element for BiH to progress on the NATO integration path.
 
The EU High Representative Baroness Ashton, on her recent visit to Sarajevo remarked that EU will not lower the bar for BiH, but instead will help the country (and its citizens) to jump over it. This means that drive and leadership for reforms have to come from within and have to have support of citizens.

Stagnation in the current status and perspectives for BiH European integration takes place against a positive dynamic in the neighbourhood, ranging from Croatia’s recent EU membership to Serbia’s diligent pursuit of its European path.
 
Bosnia and Herzegovina is falling very seriously behind on its European integration agenda. Our “contract” – the Stabilisation and Association Agreement was signed in 2008, but has not yet entered into force. We witness serious delays in approximating local laws to EU acquis, failed attempts to introduce EU standards that often result in direct loss of revenues for business and budget alike, like in the case of stalled export of milk and dairy products to Croatia, after the latter joined EU.
 
In the last weeks, in a series of high level visits, the EU sent a loud and clear message pleading for necessary and long-awaited change to the leaders, who often looked detached and helplessly overtaken by the social turmoil that stormed throughout the country in February.
Citizens, on the contrary, have been very clear in expressing their ambitions and concerns. They want employment opportunities and a growing economy, a social welfare system that works, they want the rule of law, and an efficient justice system.
 
A crucial element to drive the EU agenda forward is missing in answering to these requests; that is the political will of the leaders to look beyond ethnic divisions, and look after the interests of all the people. Reforming the economy, the social welfare system and promoting foreign trade; Strengthening the rule of law and Protecting human rights are the fundamentals which the EU Enlargement Strategy 2013-2014 targets as a matter of priority.
 
As part of this framework, the Commission launched recently a new approach to economic governance, competitiveness & growth for the Western Balkans region. The aim is to offer more concrete and better targeted support to the region in meeting the challenges of creating jobs, enhancing competitiveness and boosting growth and help the countries benefit from the experience the Union gained during the economic crisis.
 
A month ago in Sarajevo, Commissioner Fuele launched three new initiatives aimed to address current social and economic concerns in Bosnia.
 
The EU plans to assist Bosnia and Herzegovina to prepare a National Economic Reform Programme. This aims to push forward reforms and actions to tackle this country’s dysfunctional labour market, get better co-ordination on economic and fiscal policies and create a better environment for business.

With the same aim, the EU will also propose a Competitiveness and Growth Programme to push forward the sectoral reforms – in, for example transport, telecoms and energy – that will enhance BiH’s competitiveness, unlock investments, growth – and employment.  The programme’s implementation will also benefit from present and future IPA assistance. The money will be connected with the priorities of this programme to address economic and social challenges in the country.

A second initiative is the formation of a joint EU-BiH working group to accelerate the implementation of EU funded projects. There are 210 million Euro of projects on-going and another almost 150 million Euro for projects yet to be contracted or programmed. 

The working group aims to make sure that the projects target concerns in the economic and social areas and there are very clear social and economic benefits produced for communities. These issues include more support for small and medium enterprises, more social inclusion programmes, faster processing of cases in courts, and more efficient use of taxpayers’ money.

The third initiative aims to expand the Structured Dialogue on Justice to tackle some of the elements – important for Bosnia and Herzegovina – of Chapter 23 of the EU acquis. Let me recall that Chapter 23 deals with the fundamental freedoms and judiciary, including fight against corruption. A seminar on setting additional priorities for Structured Dialogue on Justice has recently been held in Sarajevo involving civil society and bringing about a renewed engagement in challenging areas that hold BiH from progressing on its European agenda.
 
Anti-corruption policies will be high on the agenda. This is in line with the assessment made by the European Commission already for the past few years. In the last Progress Report for the year 2013, the Commission stressed that “complex connections between political actors, business and the media are putting democratic institutions and procedures at risk and making the detection of corrupt practices more difficult.”
 
Discussions will also cover other potential reform priorities, including in the field of fundamental rights, home affairs and fight against organised crime. Engaging on aspects relevant to the entrenchment of the rule of law is a feature of the bilateral relations also between the EU and other potential candidate countries. In the case of BiH, the focus so far had mostly been placed on the functioning of the judiciary.

The EU maintains a strong commitment to maintain a proper and consistent involvement of the civil society, which will have a crucial role in in all future endeavours in this framework.

To summarize, the EU will keep its commitment and continue to offer targeted and tailor made support for advancing the EU integration process of BiH. Progress on the EU path is critical for ensuring the security and stability not only in BiH, but also in the region. For BiH it will mean turning a page of history and making its troubled past stay in the past.  However, the drive can only come from within the country. Pushing a reform agenda requires strong leadership, courage to move beyond a comfortable, but unsustainable status-quo which often suits vested interest groups but does not respond to the voices of the citizens,  and last but not least – accountability from the political establishment.   

Thank you for your attention!