US embassy cable - 05SOFIA1000

UNCLAS  SOFIA 001000 
 
SIPDIS 
 
 
E.O. 12958:  N/A 
TAGS: EAID, ECON, PREL, PHUM, PARM, BU 
SUBJECT:  STABILITY PACT FOR SOUTH EAST EUROPE PRESSING 
REGIONAL GOVERNMENTS TO ASSUME GREATER RESPONSIBILITY FOR 
REGIONAL COOPERATION 
 
REF: 04 Skopje 2038 
 
1. SUMMARY:  The Stability Pact for South Eastern Europe's 
semi-annual Regional Table Meeting May 17-18 in Sofia pushed 
countries in South East Europe to make a greater political 
and resource commitment to the Pact's regional initiatives. 
The meeting was the first serious discussion countries have 
had about what they need to do to take over leadership of 
Stability Pact initiatives, rather than relying on donor 
countries to drive the reform agenda.  Speakers from the EU 
and governments praised the progress made under the Pact's 
auspices, but argued for a clearer definition of goals over 
the year ahead. The countries of the region agreed to report 
back at the next Regional Table in November 2005 on which of 
the 25 Stability Pact initiatives are of greatest priority 
to them, so that the Pact can focus its resources.  Key 
elements of the May 17 Working Table discussion included the 
problem of the brain drain from the region, regional 
infrastructure, and endorsement of the Pact's defense 
conversion initiative, which seeks to address the economic 
and social dimension of defense reforms in the region. 
Albania and Macedonia asked for the Pact to support them in 
arguing against the possible EU move to downgrade the 
priority of the European transport corridor VIII, running 
from Albania to the Black Sea.  The Regional Table's oddest 
moment came toward the end when Russian representative 
Azimov, while expressing support for the Pact, lectured the 
hall against dictating to the region and asserted the role 
of "great Russia" in Europe.  End Summary. 
 
2. Regional Table - Discussion of Regional Ownership 
 
The Stability Pact's semi-annual meeting came at an 
important juncture, when progress in South East Europe, 
marked by Bulgarian and Romanian signing of EU accession 
treaties in April, had fostered donor interest in seeing a 
medium-term closure strategy for the Pact, which was 
established in June 1999 following the Kosovo air campaign. 
During the three working tables and the Regional Table 
meeting, Stability Pact Special Coordinator Erhard Busek 
conveyed a clear message that the Pact would have to 
recognize that it was never meant to be permanent and the 
countries of Southeast Europe needed to take over "regional 
ownership" and "regional leadership" of Pact initiatives. 
Busek, the European Commission, and several European states 
called for the South East Europe Cooperative Process 
(SEECP), currently chaired by Greece to lead the effort of 
the region to take over leadership of Pact initiatives. 
Among the donors, the United States, German and Swiss 
representatives stressed the need for the countries of the 
region to identify which initiatives were of sufficient 
priority that the countries were prepared to assume 
leadership.  The Czech national coordinator stressed that 
new EU members had a lot of transitional experience to share 
with the region.  The Greek representative, speaking as 
SEECP chair, confirmed Greece's commitment to the SEECP's 
evolving leadership role, although he signaled no additions 
to the basic direction continued by the previous chair, 
Romania.  Since UNMIK/Kosovo is not even an observer to the 
SEECP, the United States noted the need to ensure that the 
move to regional ownership does not undermine the effort to 
increase the integration of UNMIK/Kosovo into Stability Pact 
initiatives.  The countries of the region, led in particular 
by Serbia and Montenegro, pledged to work together and with 
the Pact, to identify priorities and possibilities for 
regional ownership in order to permit a more focused 
discussion on priorities at the key Regional Table meeting 
in Prague in mid-November 2005. 
 
3. Working Table I (Democracy and Human Rights): 
 
WT I stresses regional cooperation with regard to local 
democracy and cross border cooperation, parliamentary 
cooperation, media reform, and will now address challenges 
involving the region's youth and education.  On the latter, 
the Pact will focus on increasing awareness of EU education 
programs and available funds, youth activities and 
supporting science and research institutes.  Cooperation 
with EU-member institutions and countries will be key to the 
effort to support science and research in the Balkans.   The 
Gender Task Force described how it already exercises a 
degree of regional leadership, since countries of the region 
fund operating costs and set the reform agenda, although the 
Task Force depends on donor funding of projects. The session 
confirmed the appointment of Radomir Diklic, founder of the 
independent Beta News agency in Serbia as the new chair of 
the media task force, and underscored the need to promote 
the economic viability of an independent press and media in 
the region. 
 
4. Working Table II (Economic Development): 
 
In addition to the focus on regional infrastructure, the 
Table heard presentations on Stability Pact initiatives 
regarding  "social cohesion," involving the range of issues 
not directly addressed by the acquis communitaire (health, 
labor policy, etc.) and on the link between foreign direct 
investment and job creation.  On infrastructure, WT II 
chairman Saccomanni reported that some 45 of 54 projects 
(valued at euros 5.2 billion) under consideration were 
underway, and a further six are due to start before year's 
end.  At the WT, and subsequently at the Regional Table, 
countries of the region, especially Albania and Macedonia, 
criticized the recommendation to the European Commission by 
the special high level group on transport links (chaired by 
former Commissioner de Palacio) that the SW to NE Corridor 
VIII from Albania to the Black Sea, would slip from the list 
of EU transportation priorities.  The affected states 
recognized that the economics of the corridor lag those of 
other corridors (the main east-west routes linking Western 
Europe to Turkey and points east), but noted the political 
importance of the corridor to those countries' inclusion in 
an integrated Europe.  The Stability Pact and the European 
Commission promised to convey Albanian and Macedonian 
concerns. 
 
5. Working Table III (Security Issues): 
 
WT III highlighted the issue of regional defense conversion, 
and the mandate given the Stability Pact and the Regional 
Arms Control and Verification Center (RACVIAC) to work on 
the issue via regional working groups on officer retraining, 
base conversion, and defense industry, as well as looking at 
further activities to address excess weapons (including 
small arms and light weapons) and munitions.  The Swiss- 
based NGO DCAF (Centre for Democratic Control of Armed 
Forces in Geneva) reported on its work on officer 
retraining, and expressed interest in working on the issue 
with the Pact.  WT III Chairman Janez Premoze stressed the 
social and economic effects of defense reform, and the need 
for the defense conversion initiative to connect with other 
Pact efforts, especially with the range of economic 
development activities under WT II.  WT III also discussed 
the Pact's refugee and migration initiative, which has moved 
to the leadership of the SEECP, and opened a new regional 
center in Skopje.  The switch to regional leadership can be 
seen in the changed focus of this initiative, which now 
includes cooperation among regional consular officers to 
facilitate legitimate travel and combat human trafficking. 
Another initiative moving to the region is the Disaster 
Prevention and Preparedness Initiative (DPPI), which will 
transfer its secretariat to the region in order to 
facilitate cooperation among countries to prepare for cross- 
border disasters like seasonal wild fires, floods, and 
potential earthquakes. 
 
6. COMMENT:  Pushing the SEE Region to Do More 
 
One of the livelier Stability Pact Regional Table meetings, 
the Sofia session placed the central themes of "regional 
ownership and regional leadership" squarely on the table. 
Special Coordinator Busek and Pact staff will focus their 
efforts over the next six months on working with regional 
governments to identify the constraints and possibilities 
that exist to move additional Stability Pact initiatives 
under the direct auspices of regional governments, which 
would require regional governments to provide greater 
support in terms of staff and funding, and leadership in 
setting the reform agenda.  A clearer roadmap for the Pact's 
work for 2006 and into 2007 should emerge from this effort 
and allow a more refined vision to be reviewed in November 
in Prague.  End Comment.