Minister of Foreign Affairs Thorbjørn Jagland

Regional Funding Conference for South East Europe

Brussels, 29. and 30. March 2000

Mr. Chairman,

Ten years and four wars after the death of Yugoslavia, South Eastern Europe remains a region of tension and conflict.

The situation in Kosovo is particularly serious. Ethnically motivated violence is disturbingly prevalent. The divided city of Mitrovica has become a symbol of mutual suspicion and hatred. Reconciliation is in short supply, while retribution is over-abundant. There is a real risk that the situation in Kosovo will get worse before it gets better.

In Belgrade the regime is clinging to its authoritarian policies. Major democratic reform is a prerequisite if the Federal Republic of Yugoslavia is to take its place among the nations of Europe. In the meantime there can be no real or long-term stability in the region.

Yet all is not gloom. Developments in Croatia offer a glimmer of hope. The political housecleaning that has taken place in Zagreb is a powerful signal to the peoples and leaders of the region, not least those of Serbia. Change is possible.

The new government will be under considerable pressure to produce rapid and tangible results. But the international community must lose no time in demonstrating its support and solidarity. To that end, the Stability Pact could be a useful instrument. Norway, for its part, wants to work closely with Croatia, particularly in the crucial area of refugee return.

Norway has allocated more than 107 million EUROs in grants for our activities in South Eastern Europe in 2000. In one way or another, this money will be used for purposes that support the aims of the Stability Pact. We will continue our support at a substantial level in the years to come. We intend to channel much of our support to the region through the Stability Pact.

In anticipation of Norway’s full participation in the Stability Pact for South Eastern Europe, we have currently set aside approximately 15 million EUROs for Stability Pact projects this year. At this regional funding conference we will be pledging support to some 15 individual quick start projects or programs. The total value of our support to these projects is approximately 10 million EUROs. We are giving priority to projects that, directly or indirectly, promote the return of refugees and IDPs and that have a regional impact.

Norway greatly values the work carried out by the International Financing Institutions under Working Table II on Economic Reconstruction, Cooperation and Development. The report of the EBRD on private sector development is particularly interesting. We will support the EBRD initiatives for Trade Facilitation Programmes and for Micro Enterprise Banks.

There will be no stability in South Eastern Europe unless a climate of confidence and security is established throughout the region. Hence, Working Table III on Security Issues is of crucial importance. We will support the project proposed by the government of Bosnia and Herzegovina and the World Bank providing assistance for the reduction of the armed forces in Bosnia and Herzegovina. We are also committed to projects aimed at reducing the numbers of small arms and mines in the region. To that end, we will support the regional centre for development and testing of mine detection technology proposed by the Croatian government.

We have noted that the European Commission has proposed a Strategic Package for Mine Action in South Eastern Europe. Norway is prepared to support this important initiative. We are ready to discuss with the Commission how this can be done.

The Macedonian proposal for collection and destruction of small arms and light weapons in Albania, Kosovo and Macedonia is an important one. It should be further refined with a view to funding and implementation in the near future.

This regional funding conference is an important step towards achieving the aims and objectives of the Stability Pact. The Pact has created great expectations in the region. It is therefore imperative that the Stability Pact process picks up speed and produces tangible results. This can only be achieved if the international community makes the necessary resources available. That is the most convincing proof of our support and solidarity.

We must not forget however, that the Stability Pact process is not only about implementation of projects. It is also about democratisation and far-reaching political and economic reforms in the countries of South Eastern Europe. These are vital for the integration of the region into Euro-Atlantic cooperation structures. A sound regional political process aimed at closer cooperation between the countries of the region is perhaps the most important feature of the Stability Pact. It is the countries of the region that must do the real work. It is their future that is at stake.

Thank you, Mr. Chairman