| Author (Person) | Davies, Eric |
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| Publisher | ProQuest Information and Learning |
| Series Title | In Focus |
| Series Details | 29.10.00 |
| Publication Date | 28/10/2000 |
| Content Type | News, Overview, Topic Guide | In Focus |
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On 27 October 2000 the European Parliament formally endorsed a Commission proposal to allocate €200 million of emergency aid for Serbia from the EU budget. The €200 million comprises €20 million of reallocated aid and €180 million from the Union's emergency reserve. €18 million will be provided for humanitarian aid, managed by the EU's Humanitarian Aid Office (ECHO). European Budget Commissioner, Michaele Schreyer, said in a press release:
Background Following the inauguration of Mr Kostunica as President of the Former Republic of Yugoslavia (FRY - comprising Serbia and Montenegro) on 7 October, the European Union has moved to support the new government. On 9 October, the General Affairs Council, meeting in Luxembourg, issued a Declaration, in which Ministers welcomed the election of Mr Kostunica, and stated that 'in accordance with its message to them on the eve of the elections, the Council has radically reviewed the EU's policy towards the FRY.' The Council announced that it had taken the following decisions: 1. Sanctions The Union has decided to lift all sanctions imposed on the FRY since 1998, with the exception of the provisions affecting Milosevic and those associated with him. The decisions to lift the oil embargo and the air embargo immediately were adopted. 2. Economic and financial cooperation The Council has decided to allow the FRY to benefit from the CARDS programme. The activities of the European Agency for Reconstruction will be extended to the FRY. The Union will maintain and extend its humanitarian aid programmes to vulnerable persons resident in the FRY, particularly to displaced persons and to refugees from the former Yugoslavia. The European Union confirms its resolve to make an active contribution to the reestablishment of navigation on the Danube and to participate in feasibility studies for the reconstruction and modernisation of the FRY's infrastructure on a regional basis. The Finance Ministers of the Union will examine, in consultation with the international financial institutions, the conditions for integrating the FRY into the international financial community as rapidly as possible. The Council has asked for the European Commission and the World Bank, under the aegis of the Steering Committee for the Balkans (HLSG) to be jointly responsible for evaluating the needs and for coordinating economic and financial assistance to the FRY. 3. Closer relationship with the European Union The Council has also decided to propose to the FRY that it participate in the stabilisation and association process launched at the Cologne European Council. Accordingly, the Council invites the FRY to rapidly set up a 'Joint EU /FRY Task Force' in order to examine ways of progressing towards a stabilisation and association agreement. The Council has asked the Commission to submit to it proposals on extending to the FRY the benefit of the asymmetrical Community preferences adopted at the GAC on 18 September. *** By implementing all of these measures without delay, the European Union intends to contribute to the establishment of democracy and the rule of law in the FRY, to the success of the major political, economic and social reforms it will introduce and to its opening up to Europe. The FRY's full participation in the Stability Pact for South-East Europe will help in this matter. The Council has asked the Coordinator of the Stability Pact, in his capacity as special envoy of the European Union, to submit to it proposals to that effect as soon as possible. The fifteen EU Member States each express their desire to reestablish or normalise their diplomatic relations with the FRY as soon as possible. The European Union also hopes that the FRY will start a reconciliation process with its neighbours and will reestablish relationships of trust and cooperation. The European Union will help meet these objectives as far as it is able. Accordingly, the President of the FRY will be invited to the Zagreb Summit (24 November 2000). *** In the context of the mandate on the Balkans defined at the Lisbon European Council, the Council has asked Mr Solana, Secretary-General, High Representative for the CFSP, to attach particular importance to relations between the European Union and the new FRY and to submit a report to that effect to the forthcoming General Affairs Council. Ministers also decided to invite President Kostunica to the Biarritz European Council (see In Focus, 15.10.2000:
A week later, on 20 October, a Declaration was issued by France (holders of the EU Presidency), in which the countries of Central and Eastern Europe associated with the European Union, the associated countries Cyprus and Malta, Liechtenstein and Norway, EFTA countries and members of the European Economic Area:
They will ensure that their national policies conform to that Common Position and the regulations relating to it. The above countries likewise subscribe to the Declaration by the European Union on the FRY adopted by the General Affairs Council on 9 and 10 October 2000. [all three items were published in Official Journal L261] The need for financial support for Serbia was discussed by the European Parliament, meeting in plenary session during the week of 23 October (see texts adopted, provisional version, 26.10.2000). On 27 October, Parliament adopted a Commission proposal to allocate €200 million of emergency aid. Sanctions The following sanctions have been applied by the EU, the United States and the United Nations (more details can be found in Sanctions Against the Federal Republic of Yugoslavia (As of 10 October 2000) - International Crisis Group): The EU has applied an oil embargo since May 1999. A ban on trade and investment and the freezing of assets both became effective in 1992, were partially lifted in 1995, and were re-introduced in 1998, since when additional measures have been introduced. Visa restrictions on some 800 Yugoslav officials and business leaders were applied in May 1999, as was a ban on international flights to and from Yugoslavia. (EU sanctions have also been adopted by Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Iceland, Latvia, Liechtenstein, Lithuania, Norway, Poland, Romania, Slovakia and Slovenia). The United States has blocked Yugoslavia's membership of international organisations (so-called 'outer wall' sanctions), banned trade and investment since June 1998, restricted aid, applied a visa ban, and limited assistance to countries providing sanctuary to indicted war criminals. Since 1992 Yugoslavia has been banned from membership of the United Nations, and an arms embargo was adopted by the UN in March 1998 (United Nations Security Council Resolution 1160). The impact on sanctions of the change in government has varied: The lifting of the UN arms embargo will have to be sanctioned by the Security Council. The United States has indicated that it will support an application for UN membership by the new Yugoslav government if it applies as a newly independent state. As regards the United States' own sanctions, those on the 'outer wall' and restrictions on assistance to countries harbouring indicted war criminals require the President to certify that relevant conditions have been met. The United States is said to be cautious about lifting the ban on financial transactions with people or businesses linked to the Milosevic government. The European Union has lifted its oil embargo. Financial and trade restrictions against firms and individuals connected with the former regime will, however, remain in place, as will the visa ban and freeze on assets. (There is a 'white list' of Serbian companies exempt from EU financial sanctions). The impact of sanctions A paper published by CAFOD in March 2000 - Sanctions on Serbia: Time for a Review? - stated that:
Amongst the statistics presented in the paper were the following: - Poverty levels in Serbia have doubled in the past year. In July 1998 the percentage of the Serb population living in poverty was 33 per cent. In September 1999, this had risen to a staggering 63per cent (UN) - Only 5-10 per cent of the population in Serbia can afford anything more than food and basic necessities (Institute for Market Research) - According to the UN World Food Programme, 10 per cent of the population of Serbia are in danger of starvation - The International Red Cross estimates that over 500,000 people are in desperate need of humanitarian aid - 250,000 people lost their jobs because of the NATO bombing (report from international economists including World Bank and IMF quoted in Guardian) - Year on year inflation is 50per cent. - With nearly one million refugees, Serbia now has the highest number of refugees in the Balkans. The Federal Republic of Yugoslavia government website also provides some information on sanctions. Concern over sanctions The EU's current policy on Yugoslavia was set out by the General Affairs Council in April 1997 in the context of a strategy for developing relations between the Union and the countries of the Balkan region (see Council Conclusions - partly in French).Not all EU Members have been in favour of sanctions, and the Union has found itself both applying sanctions against the Milosevic regime and providing humanitarian assistance. In October 1999 the General Affairs Council agreed to a proposal made by the Serb opposition to supply heating fuel to Serb towns run by democratic forces, in order to alleviate the impact of the winter. The first delivery of 350 tonnes of heating fuel, under the Energy for Democracy initiative, was made to the cities of Nis and Pirot in southern Serbia in November 1999. The legal basis for the action was Council Regulation 1628/96 (amended by Regulation 851/98 and Regulation 2454/99), which introduced 'Obnova' - a programme of reconstruction for the republics of the former Yugoslavia. In February 2000 Energy for Democracy was extended to the municipalities of Kragujec, Kraljevo, Novi Sad, Sombor and Subotica. In five months 17,513 tons of oil were delivered. (see press release Commission successfully completes Energy for Democracy in Serbia). Energy for Democracy was separate from other humanitarian programmes managed by ECHO, which amounted to some €56 million in 1999. (Concern was expressed in the UK House of Commons that Energy for Democracy did not meet the definition of 'humanitarian aid'). In February 2000, economic sanctions against Yugoslavia were reviewed. Some Member States wanted sanctions eased, but the UK and the Netherlands were reported to have resisted such a move (EU fine-tunes sanctions on Serbia).The ban on flights was (temporarily) lifted, but a request by the Serb opposition for the oil embargo to also be lifted was refused. Meeting in Evian, France, on 2-3 September 2000, a few weeks before the FRY election, EU Foreign Ministers agreed to retain EU sanctions on Serbia. They did, however, express concern about the impact of sanctions on the Serb people.France was reported by CNN Europe to have pushed for an end to the sanctions. In a pre-meeting letter, the French Foreign Minister wrote 'Several of the instruments put in place have been ineffective, if not counterproductive, such as our sanctions mechanism.' Denmark, the Netherlands and the UK were said to be wary about easing sanctions.As an incentive to the electorate, EU Ministers stated that Serbia would quickly be welcomed back into the family of nations once a democratic government was elected. Further information within European Sources Online: European Sources Online: European Voice: The Penguin Companion to European Union (Penguin, 2000): Further information can be seen in these external links: BBC News: Guardian Unlimited: European Commission: External Relations DG Humanitarian Aid Office (ECHO) European Commission: Representation in the United Kingdom: European Commission: RAPID press releases: European Parliament United Kingdom: Foreign and Commonwealth Office: CNN: Institute for War and Peace Reporting Free B92 Center for Free Election and Democracy, Belgrade Radio Netherlands CAFOD: The World Paper: International Crisis Group: United States of America: Department of State: United Nations: Office of the Spokesman for the Secretary-General: Global Policy Forum: ReliefWeb Oxfam: United Kingdom: Parliamentary Debates: Hansard Federal Republic of Yugoslavia (government site) Democratic Party of Yugoslavia Free Serbia (1) Free Serbia (2) Further and subsequent information on the subject of this week's In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'serbia or fry or yugoslavia' in the keyword field. Eric Davies On 27 October 2000 the European Parliament formally endorsed a Commission proposal to allocate €200 million of emergency aid for Serbia from the EU budget. |
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| Countries / Regions | Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia, Slovenia |
