Reconstruction of the former Yugoslavia

OBJECTIVE: as part of the peace process in former Yugoslavia, to determine the means to be implemented by the Union to reconstruct this region within the context of international efforts to reconstruct the former Yugoslavia. CONTENT: the Commission stresses in its communication that: . humanitarian aid should be maintained well after 1996, especially to help refugees and displaced persons, but should gradually change to rehabilitation aid with the help of the United Nations High Commission for Refugees; . international support should gradually change from simple reconstruction of the devastation caused by the war to real economic change: - strengthening of democratic institutions, the rule of law and the civil society (NGOs), - aid for economic stabilization and the changeover to a market economy and development of the private sector (SMEs), - the establishment of economic relations between the countries of the former Yugoslavia and participation of the countries in question in the international economic system, - restoration of the transport, telecommunications and energy networks, - development of trade and cooperation with the Union. . international aid (EU, USA, Japan, OECD countries, Russia etc.) should be coordinated and complementary: in this respect, the Commission stresses that an agency should be made responsible for coordination and that it is ready to take on that role; . providers of aid should ensure that only beneficiaries which comply with certain conditions receive aid (respect for human rights, return of refugees, climate conducive to a market economy, disarmament, cooperation with the war crimes tribunal, establishment of relations with other countries of the former Yugoslavia); . specifically European assistance should take the form of non-refundable aid and EIB and EBRD loans for productive investment. Resources under chapter 4 of the financial perspectives relating to aid to CEECs and the Mediterranean could be mobilized. However, the Commission considers that additional efforts might be needed; . trade and cooperation agreements should be negotiated with each country concerned, in order to give the peace process momentum and strengthen democracy and the market economy. The Commission concludes by calling on the Council for humanitarian aid to be maintained, for the Union to be fully involved in international reconstruction efforts, for its role as coordinator to be defined and for agreements to be negotiated with each party.�