¹ Report to the European Council on EU Action in support of the Stability Pact and South Eastern Europe, presented to the European Council by the Finnish Presidency and the European Commission, Helsinki, 10–11 December 1999, Press Release 13814/99.

² Ibid.

³ The EU uses the term “Western Balkans” to refer to Albania, Bosnia and Herzegovina (BiH), Croatia, Federal Republic of Yugoslavia (FRY), and the Former Yugoslav Republic of Macedonia (FYROM).

⁴ The Process on Stability and Good-Neighbourliness in South-east Europe was launched by a Declaration by the Ministers of 27 countries in the margins of the Paris Conference on Peace in Bosnia and Herzegovina on 13 Dec. 1995 in Royaumont. See http://royaumont.lrf.gr. The Process has been supported by the EU, see Common Position 98/633/CFSP on the Process on Stability and Good-Neighbourliness in South-East Europe (the Royaumont Process) OJ 1998 L 302/1 and text at n. 38 below.

⁵ Black Sea Economic Cooperation Organisation, formed June 1998 between Albania. Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, Ukraine. See Declaration by the Presidency on behalf of the EU on the occasion of the summit in Yalta and signature of the BSEC Charter, 6 June 1998.

⁶ Central European Initiative, established in 1989 and now with a membership of 16 states: Albania, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Italy, Macedonia, Moldova, Poland, Romania, Slovak Republic, Slovenia, Ukraine. Its aims include regional cooperation, regeneration, infrastructure development.

⁷ South East Europe Cooperation Initiative, a programme operated through the UN’s Economic Commission for Europe.

⁸ South East Europe Cooperation Process. See Istanbul Declaration On Good-Neighbourly Relations, Stability, Security and Cooperation in South Eastern Europe, 9 June 1998.

⁹ The text of the Stability Pact can be found at http://europa.eu.int/comm/dg1a/see/intro/index.htm. Both the emphasis and the explanatory footnotes in the above citation have been added by the author.

¹⁰ On 15 April 1999 the European Parliament had passed a Resolution on the situation in Kosovo stating inter alia that: “South-Eastern Europe needs a Stability Pact opening the door to a long-term political and economic stabilisation process in the framework of enhanced relations with the European Union” OJ 1999 C 219/400.

¹¹ Common Position 1999/345/CFSP of 17 May 1999 concerning the launching of the Stability Pact of the EU on South-Eastern Europe, OJ 1999 L133/1.

¹² See below section III A.

¹³ See below section IV.

¹⁴ “Commission Communication on the Stabilisation and Association process for countries of South-Eastern Europe”, 26 May 1999, COM(99) 235.

¹⁵ In February 2000 the Common Strategy was still in the process of preparation.

¹⁶ At a meeting with Bodo Hombach, the Special Coordinator for the Stability Pact, Commission President Prodi emphasised both the need for a “strong European role” in the Balkans, the need to strengthen political and economic links between the region and the EU, and also the need for the Balkan states to cooperate with each other (Rapid Doc/99/10).

¹⁷ On 30 October 1995 the Council adopted a set of Guidelines for future negotiations with the countries of SEE, Bull EU 10–1995 at p.138; on 26 February 1996 the Council defined a “Regional Approach” towards Albania, BiH, Croatia, FRY and FYROM; see also Commission Communication on common principles for future contractual relations with certain countries in South-Eastern Europe, 2 October 1996 COM(96)476 final.

¹⁸ The first Stability Pact Summit, held in Sarajevo 29–30 July 1999 was attended by representatives of Cyprus, Czech Republic, Estonia, Latvia, Lithuania, Moldova, Poland, Slovakia, Ukraine, as well as the Stability Pact participants.

¹⁹ Interview given by Robert Barry prior to the opening of the Stability Pact Summit Conference held in Sarajevo in July 1999, available on http://www.summit-sarajevo-99.ba/home.htm.

²⁰ Common Position 1999/434/CFSP on the appointment of a Special Representative and Coordinator for the Stability Pact OJ 1999 L 168/34; Joint Action 1999/523/CFSP on the appointment of a Special Representative and Coordinator for the Stability Pact OJ 1999 L 201/2, extended and amended by Joint Action 1999/822/CFSP of 9 December 1999 OJ 1999 L 318/40. The Coordinator will chair the SEE Regional Table, report regularly to the OSCE Chairman-in-Office, and cooperate closely with the EU institutions in order to promote the EU’s role in the Stability Pact. He will also cooperate with the EU Special Representative for the Royaumont Process (Mr Roumeliotis), and liaise with the Office of the High Representative in Bosnia and Herzegovina and the United Nations Civil Administration in Kosovo (headed by UN Special Representative Bernard Kouchner).

²¹ A phrase used by the Commission in its Communication on the “Stabilisation and Association process for countries of South-Eastern Europe”, 26 May 1999, COM(99) 235 at para 1.

²² Regular Report from the Commission on “Progress towards Accession by each of the candidate countries: Composite Paper” October 13 1999, section V.

²³ See note 11. Art.1(1) of the common position states that “the European Union will play the leading role in establishing a Stability Pact for South-Eastern Europe”.

²⁴ Joint Action 1999/480/CFSP in relation to the holding of a meeting of Heads of State and Government in Sarajevo, Bosnia and Herzegovina, concerning the Stability Pact for South Eastern Europe OJ 1999 L 188/2. The Conference was chaired by the EU Presidency and the EU contributed EUR 1,250,000 towards the organisation of the Conference.

²⁵ The PHARE and/or OBNOVA programmes currently benefit all the countries of the region apart from Croatia and FRY.

²⁶ See further at sections III and IV below.

²⁷ See further section III below.

²⁸ The Commission states that the failure of the SEE countries to respond “adequately” to the Regional Approach has created a need to offer stronger incentives which would “require compliance with more demanding conditions, both political and economic as well as increased emphasis on the need for regional cooperation.” Commission Communication on the Stabilisation and Association process for countries of South-Eastern Europe”, 26 May 1999, COM(99) 235 at para 3.

²⁹ Ibid at para 4.

³⁰ On the Royaumont Process, see further text at n. 38 below.

³¹ The OSCE was also centrally involved with the earlier Pact for Stability in Europe, launched by the Paris Conference in March 1995. This pact was designed to encourage “preventive diplomacy aimed at fostering good-neighbourly relations”, and the negotiation of agreements to consolidate borders and resolve problems of national minorities; see Council Joint Action 93/728/CFSP on the inaugural conference of the pact for stability in Europe OJ 1993 L 339/1, Art 2.

³² OSCE Permanent Council Decision 306 of 1 July 1999.

³³ For text see http://www.summit-sarajevo-99.ba/home.html.

³⁴ The draft Work Plan was given by Hombach to Prodi at a meeting on 8 September 1999: Rapid Doc/99/10.

³⁵ Conclusions of GAC 13 September 1999. This reference to the EU’s autonomy in decision-making reflects the wording of the Stability Pact itself, in para 20.

³⁶ This statement of principles forms Annex I to UNSC Resolution 1244.

³⁷ Speech by Kofi Annan to OSCE Permanent Council, Vienna, 20 July 1999.

³⁸ Council Decision adopting Common Position 98/633/CFSP on the Process on Stability and Good-Neighbourliness in South-East Europe (the Royaumont Process) OJ 1998 L 302/1. See also http://royaumont.lrf.gr for the text of the Declaration of July 1998.

³⁹ Council Decision 99/361/CFSP of 31 May 1999 implementing Common Position 98/633/CFSP defined by the Council on the basis of Article J.2 of the Treaty on European Union concerning the process on stability and good-neighbourliness in South-East Europe OJ 1999 L 141/1.

⁴⁰ Council Decision 1999/694/CFSP of 22 October 1999 implementing Common Position 98/633/CFSP concerning the process on stability and good-neighbourliness in South-East Europe OJ 1999 L 275/1.

⁴¹ Commission 2nd Report on Progress towards Accession by each of the candidate countries, 13 October 1999, Composite Paper Part V.2.

⁴² Speech by Minister Halonen to the European Parliament Committee on Foreign Affairs, security and defence policy, 31 August 1999.

⁴³ Conclusions of the European Council, Helsinki, 10–11 December 1999, para 28. See also at Annex IV the two Presidency Reports to the Helsinki European Council on “Strengthening the Common European Policy on Security and Defence” and on “Non-military Crisis Management of the European Union.”

⁴⁴ A “separate formation” of the Political Committee, composed of national representatives at senior/ambassador level, meeting in Brussels within the framework of COREPER and with the task in close cooperation with the Secretary General/High Representative, of prepar ing recommendations on the future functioning of the CESDP and dealing with CFSP affairs on a day to day basis: Conclusions of GAC, 14 February 2000.

⁴⁵ Composed of representatives of Member States’ Chief of Defence with the task of giving military advice to the interim Political and Security Committee and to the Secretary General/High Representative.

⁴⁶ These significant developments are mentioned here as part of the wider post-Kosovo context for EU participation in the Stability Pact; there is no space to discuss them fully.

⁴⁷ For an example, see the Preamble to Council Regulation 1763/99/EC of 29 July 1999 concerning the arrangements applicable to imports into the Community of products originating in Albania for the period 1 July 1999 to 31 December 2001, OJ 1999 L 211/1.

⁴⁸ Bull EU 10-1995 at 138.

⁴⁹ COM(96)476 final.

⁵⁰ Ibid at 4.

⁵¹ “The Contracting Parties shall examine, in due course, when conditions are met, the possibility of strengthening their contractual relations, bearing in mind the aspiration of the former Yugoslav Republic of Macedonia for an advanced relationship towards an association with the European Community.” Council Decision 97/831 OJ 1997 L 348/1, Art 45.

⁵² EC–Albania Trade & Commercial & Economic Cooperation Agreement, OJ 1992 L343/1.

⁵³ Particular elements mentioned in the 1996 Commission Communication include references to regional cooperation and good-neighbourly relations; economic and financial cooperation on a regional basis; trans-border projects with an explicit reference to the “leverage” created by financial PHARE-based assistance; customs cooperation and approximation of laws relevant to increasing trade flows within the region; market access concessions in respect of trade in goods in return for MFN treatment of EC goods, and reciprocal deals with the other two countries within the regional grouping; cooperation in other areas such as energy, telecommunications, agriculture, tourism, environment, health, the provision of services. Encouragement of free movement of persons is said to be “an important objective, but has to be seen in the context of the peace movements” (i.e. return of refugees, sensitivity over forced migration).

⁵⁴ Council Conclusions on the Application of Conditionality with a view to developing a Coherent EU-Strategy for the Relations with the Countries in the Region. Bull. EU 4-1997, 132.

⁵⁵ Compliance with the conditions in the Council Conclusions of 29 April 1997, Operational Conclusions COM(98)237 of 15 April 1998; and COM(98)618 of 10 October 1998. Country specific assessments were also attached to the Commission Communication of 26 May 1999 on the Stabilisation and Association Process for SEE COM(99) 235.

⁵⁶ OJ 1992 L343/1. This is a first generation agreement establishing basic MFN status and (for EC) taking Albania out of the “state-trading” import regime; it is non-preferential: the preferential trade regime is governed by unilateral Regulations: Reg. 2820/98 OJ 1998 L 357/1 amended by Reg. 1763/99/EC OJ 1999 L 211/1; see note 60.

⁵⁷ See for example, political dialogue meeting with Albania, 27 Jan 1998, Press Release: Brussels (27-01-1998)—Nr. 05574/98 (Presse 17).

⁵⁸ See Common Position 97/357/CFSP on Albania OJ 1997 L 153/4. This Common Position was adopted on 2 June 1997 in response to serious unrest and provides for EU assistance within the framework of OSCE (Organisation for Security and Cooperation in Europe), the Multinational Protection Force, WEU and Council of Europe. Other actions following up this Common Position include Joint Action 99/189/CFSP and implementing Council Decision 99/190/CFSP of 9 March 1999 on the EU contribution to the reestablishment of a viable police force in Albania OJ 1999 L 63/1; and Council Decision 99/320/CFSP of 10 May 1999 on the EU contribution to the collection and destruction of weapons in Albania, OJ 1999 L 123/13.

⁵⁹ Council Decision 99/282/EC of 22 April 1999 providing macro-financial assistance to Albania OJ 1999 L 110/13; the decision allows for a long-term loan facility of up to EUR 20 million.

⁶⁰ Reg. 1763/99/EC OJ 1999 L 211/1. The new trade preferences which, according to the Commission, covers 90% of all exports from Albania to the EU, include exemption from duties and the abolition of quantitative restrictions for industrial products, except for certain products subject to tariff ceilings, and specific quotas for various agricultural products. The regulation also sets specific tariff ceilings for textile products and establishes specific concessions for fishery products. The Regulation will apply until 31 December 2001. A new proposal was adopted on 7 June 2000 with the aim of further improving market access: IP/00/586.

⁶¹ Commission paper “EU action in support of stabilisation of South-Eastern Europe”, 18 Nov.1999. See also Council Conclusions on Western Balkans 24 January 2000.

⁶² Commission Communication of 26 May 1999, COM(99)235, Annex 2.

⁶³ Regulation 70/97/EC on autonomous preferential regime for imports into the Community of products originating in Bosnia-Herzegovina, Croatia, FYROM, and wine from Slovenia OJ 1997 L 16/1. This 1997 Regulation was only valid until December 1997 in order to allow regular review of compliance. Having been extended to FRY in April 1997, it was renewed for 1998 for all states except FRY by Regulation 2636/97 OJ 1997 L 356/16, and for 1999 by Regulation 2863/98 OJ 1998 L 358/85; it now covers 90% of all exports from BiH and Croatia and wine from FYROM and Slovenia (other products are covered by the EC’s agreements with these countries); industrial products have duty-free access subject to tariff ceilings for 37 products; textiles and agricultural products are subject to quotas.

⁶⁴ The EC has been assisting with the electoral process and implementation of the peace plan for BiH; See for example Council Decision 96/406/CFSP on joint action under Art J.3 TEU concerning EU action in support of the electoral process in Bosnia and Herzegovina OJ 1996 L 168; amended and supplemented by Council Decision 97/153/CFSP OJ 1997 L63/1; Council Decision 97/224/CFSP OJ 1997 L 90/1; Council Decision 97/689/CFSP OJ 1997 L 293/2; Council Decision 98/302/CFSP OJ 1998 L 138/3. Council Joint Action 95/545/CFSP of 11 December 1995 on participation of EU in implementing structures of peace plan for BiH OJ 1995 L 309/2, extended and supplemented by Council Decision 96/745/CFSP OJ 1996 L 340/3, Council Decision 98/607/CFSP OJ 1998 L 290/3, Council Decision 98/737/CFSP OJ 1998 L 354/4 and Council Decision 1999/844/CFSP OJ 1999 L 326/72. Council Joint Action 98/117/CFSP of 2 February 1998 in support of the Bosnian peace process OJ 1998 L 35/1: this provided immediate support including financial assistance to the new government in Republika Sprska after elections in January 1998.

⁶⁵ See note 63.

⁶⁶ Financial assistance may, however, be given for specific projects, e.g. the Decision on a specific EU action for coordinating, supervising and training mine clearance specialists in Croatia OJ 1998 L 300.

⁶⁷ Conclusions of GAC 21 June 1999; these were based on the Commission Communication of 26 May 1999, COM(99)235.

⁶⁸ Representations in BiH (currently “Representation Office”) and FYROM (currently Special Envoy) would also be given the status of Delegation: IP/00/120, 7 Feb. 2000.

⁶⁹ IP/00/526.

⁷⁰ Council Reg. 70/97/EC OJ 1997 L 16/1 establishing trade preferences was extended to FRY by Reg. 825/97/EC OJ 1997 L 119/4, on 29 April 1997, the same date as the Council Conclusions on conditionality. However, when the Regulation was renewed for 1998 (see note 63 above) FRY was excluded as according to the Commission it did not meet the conditionality criteria, and this exclusion has been maintained for 1999 and 2000.

⁷¹ A Common Position adopted by the Council in December 1998 on restrictive measures to be taken against persons in the FRY acting against the independent media imposes a visa ban for those persons listed, including Serbian Deputy Prime Minister, Minister for Information and Minister of Justice, OJ 1998 L345/1. Positive measures include financial support for independent media: a Euro 5 million support programme was announced 22 Dec. 1999, IP/99/1025. See also the Statement by the Presidency on behalf of the EU on the latest action against the independent media in FRY, Pesc/99/123.

⁷² Common Position 96/184/CFSP concerning arms exports to the former Yugoslavia OJ 1996 L 58/1. In July 1999 the Council adopted a Decision amending this 1996 Common Position, so as to allow the export of police equipment to BiH, given the changes in the international military presence in that country (deployment of SFOR).

⁷³ Common Position 98/240/CFSP on restrictive measures against Yugoslavia OJ 1998 L 95/1. Council Regulation 926/98/EC of 27 April 1998 on reduction of certain economic relations with Yugoslavia OJ 1998 L 130/1 implements economic aspects of Common Position 98/240 and in particular sets out a list of equipment covered, in an Annex which can be amended.

⁷⁴ See Common Position 98/326/CFSP of 7 May 1998 on the freezing of funds held abroad by FRY and Serbia OJ 1998 L 143/1, implemented by Reg. 1295/98/EC of 22 June 1998 OJ 1998 L 178/33; see also Common Position 98/374/CFSP of 8 June 1998 on prohibition of new investment in Serbia OJ 1998 L 165/1 implemented by Reg. 1607/98/EC OJ 1998 L 209/16. Common Position 98/426/CFSP of 29 June 1998 on prohibition of flights by Yugoslav carriers between FRY and EU Member States OJ 1998 L190/3, implemented by Reg. 1901/98/EC of 7 September 1998 OJ 1998 L 248/1 and now by Reg. 2151/99/EC of 11 October 1999 OJ 1999 L 264/3. Common Position 99/273/CFSP on a ban of supply and sale of petroleum products implemented by Reg. 900/99/EC OJ 1999 L OJ L 114/7 and now by Reg. 2111/1999 of 4 October 1999 OJ 1999 L 258/12. Common Position 99/318/CFSP of 10 May 1999 on additional restrictive measures against the Federal Republic of Yugoslavia OJ 1999 L 123/1, implemented by Council Decision 99/319/CFSP OJ 1999 L 123/3 and amended by Council Decision 1999/612/CFSP of 13 Sept. 1999 OJ 1999 L 242/32 and by Council Decision 1999/812/CFSP of 6 Dec. 1999 OJ 1999 L 314/36 (updating and extending the list of those affected by the visa ban).

⁷⁵ Conclusions of the GAC, 13 September 1999 and 11 October 1999. Even during the NATO bombing campaign, the EU attempted to make this distinction, by declaring that “Our policy is neither directed against the Yugoslav or Serb population nor against the Federal Republic of Yugoslavia or the Republic of Serbia. It is directed against the irresponsible Yugoslav leadership under President Milosevic”. See Statement by the European Council Concerning Kosovo, Berlin 24–25 March 1999.

⁷⁶ Conclusions of the GAC, 11 October 1999. The fact that the draft text of this statement was circulated among EU Member States before the meeting gave rise to some critical comment by some of those invited, reflecting on the genuinely democratic character of the dialogue.

⁷⁷ Common Position 1999/691/CFSP of 22 October 1999 on support to democratic forces in the Federal Republic of Yugoslavia (FRY) OJ L 273/1.

⁷⁸ Reg. 2421/1999/EC of 15 November 1999 amending Reg. 2111/1999/EC prohibiting the sale and supply of petroleum and certain petroleum products to certain parts of the FRY OJ 1999 L 294/7. This Reg. implements Common Position 99/691/CFSP (see note 73) and lifts the oil embargo for the municipalities of Nis and Perot; the list of exempted municipalities was added to by Commission Reg. 303/2000/EC of 9 February 2000 OJ 2000 L 35/8, following Council Decision 2000/82/CFSP. In practice, there have been considerable difficulties in getting the deliveries through Serbia: see IP/99/940, MEMO/99/60 and MEMO/99/65 and IP/00/527.

⁷⁹ General Affairs Council, 14 February 2000, conclusions on FRY/Serbia.

⁸⁰ Although this does not prevent some specific assistance being given to Montenegro: see Joint Action 98/301/CFSP of 30 April 1998 in support of Montenegro OJ 1998 L 138/1, intended to provide immediate assistance to the new government to continue economic and political reform. Montenegro is also to be included in the regional projects to be presented at the Regional Funding Conference for the Stability Pact planned for March 2000 and tariff concessions are planned for aluminium imports from one specific plant in Montenegro: IP/00/586.

⁸¹ In Common Position 99/604/CFSP of 3 September 1999 OJ 1999 L 236/1 the Council decided to exempt Montenegro and Kosovo from both the oil embargo and the flight ban; implemented by Reg. 2111/99 of 4 October 1999 OJ 1999 L 258/12, Reg. 2151/99 of 11 October 1999 OJ 1999 L 264/3.

⁸² Council Decision 97/831 OJ 1997 L 348/1. See also Council Decision 97/471 providing macro-financial assistance for FYROM OJ 1997 L 200/59. The Agreement only covers industrial products; FYROM is however a GSP beneficiary for agricultural products and imports of wine are covered by Regulations 70/97 and 2863/98 (see above note 63).

⁸³ COM(96)476 final.

⁸⁴ On 29 April 1997, a Financial Protocol and a Transport Agreement was signed with FYROM, and a political dialogue was instituted: Press Release: Brussels (29-04-1997)—Nr. 7742/97 (Presse 133).

⁸⁵ Special General Affairs Council, Luxembourg 8 April 1999.

⁸⁶ COM(99) 300, 16 June 1999. This was published only ten days after the adoption of the Stability Pact and less than a month after the Commission’s Communication on the SAP.

⁸⁷ IP/99/656.

⁸⁸ General Affairs Council Conclusions, 24 January 2000.

⁸⁹ COM(99)300 at para 3.1.

⁹⁰ Commission Communication on the Stabilisation and Association Process COM(99) 235, 26 May 1999.

⁹¹ Actually, the Commission phrases this as a “failure of the countries concerned to ade quately respond [sic] to the incentives offered”: COM(99) 235 at para 3.

⁹² Commission paper “EU action in support of stabilisation in South-East Europe”, 18 Nov. 1999.

⁹³ This has already been done: see note 60.

⁹⁴ Report by the Finnish Presidency and the European Commission to the European Council on EU Action in support of the Stability Pact and South-Eastern Europe, Helsinki, 10–11 December 1999, Press Release 13814/99.

⁹⁵ Council Joint Action 1999/522/CFSP of 29 July 1999 concerning the installation of the structures of the United Nations Mission in Kosovo (UNMIK) OJ 1999 L 201/1.

⁹⁶ Council Regulation 1628/96/EC of 25 July 1996 (OBNOVA) relating to aid for Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugoslav Republic of Macedonia OJ 1996 L 204/1. Reconstruction aid for Bosnia and Herzegovina has been provided under this Regulation. Council Regulation 2454/1999 of 15 November 1999 amending Regulation 1628/96 and setting up a European Agency for Reconstruction OJ 1999 L 299/1. The operation of the Reg. has been extended to 31 Dec. 2004.

⁹⁷ There has been debate in Council over the siting of the Agency—the Commission had proposed Pristina with an operational presence inter alia in Skopje, but the decision ultimately taken was to site its headquarters in Thessaloniki and its operational centre in Pristina. The first meeting of the Governing Board for the Agency was held in Thessaloniki in January 2000: IP/00/37. The Agency will in the first instance operate within Kosovo, but a decision may be taken to extend its activities into other parts of FRY: Reg. 1628/1996/EC, Art.14 as amended by Reg. 2454/1999/EC.

⁹⁸ Preamble to Reg. 2454/1999/EC, see note 95.

⁹⁹ IP/00/127.

¹⁰⁰ IP/99/517.

¹⁰¹ IP/99/525. For details of EU assistance to South-East Europe and the Western Balkans 1991–1999, including Phare, Obnova, ECHO, and other aid such as support for the media and demining, see http://europa.eu.int/comm/external_relations/news/11_99/see_balkans_support_91_99.htm. See also Special Report No 5/98 on reconstruction in former Yugoslavia (period 1996–1997) OJ 1998 C 241/1.

¹⁰² Council Decision 99/282/EC of 22 April 1999 provides macro-financial assistance to Albania OJ 1999 L 110/13. On 28 July 1999, following G-24 meetings in April-May, the Commission announced plans for balance of payments loans of up to Euro 100m for Bulgaria and up to Euro 200m for Romania with a maximum duration of ten years. For FYROM, the Commission proposed EU macro-financial assistance of up to Euro 80m, including a grant element of up to Euro 30m and a loan with a maximum duration of 15 years. The money would be released in tranches subject to compliance with agreed economic policy conditions: IP/99/577. In 22 December 1999 the Commission announced the disbursement of Euro 25m (a grant of Euro15m and a loan of Euro10m) of macro-financial assistance to Bosnia and Herzegovina, the first tranche of Euro 60m decided by the Council in May 1999 to support economic stabilisation and structural reform in BiH: IP/99/1021.

¹⁰³ At para 41.

¹⁰⁴ See IP/99/571.

¹⁰⁵ Regulation 976/99/EC of 29 April 1999, OJ 1999 L 120/8. This Regulation is based on Article 308 EC; a sister Regulation 975/99/EC covers similar operation in the context of development cooperation OJ 1999 L 120/1. It will continue to operate alongside the proposed new CARA Regulation discussed below.

¹⁰⁶ See measures detailed in note 64.

¹⁰⁷ For example, a Euro 5 million financial support programme for independent media in FRY was announced 22 Dec. 1999, IP/99/1025; see further note 70.

¹⁰⁸ Communication from the Commission to the Council and the European Parliament on Community Assistance for the Stabilisation and Association Process for certain countries of South-East Europe: Cara Programme (Community Association and Reconstruction Assistance); Guidelines and detailed arrangements for assistance to Albania, Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia under the future CARA programme. 2000–2006, COM(1999)661, 8 Dec. 1999. The Communication was presented to the GAC on 24 January 2000 and a proposal for a new Regulation was adopted by the Commission on 10 May 2000: IP/00/456.

¹⁰⁹ The Commission is preparing a regional environmental reconstruction programme for SEE which will be presented within the Second Working Table of the Stability Pact: Report by the Finnish Presidency and the European Commission to the European Council on EU Action in support of the Stability Pact and South-Eastern Europe, Helsinki, 10–11 December 1999, Press Release 13814/99.

¹¹⁰ COM(1999)661, 5.

¹¹¹ See Reg. 1628/1996/EC as amended by Reg. 2454/1999/EC and text at note 95.

¹¹² See Declaration on Bosnia adopted at GAC, 8 June 1998.

¹¹³ Report by the Finnish Presidency and the European Commission to the European Council on EU Action in support of the Stability Pact and South-Eastern Europe, Helsinki, 10–11 December 1999, Press Release 13814/99.

¹¹⁴ COM(99) 235 at para 3.

¹¹⁵ Commission Report on feasibility of opening negotiations for a SAA with FYROM COM(99) 300, 16 June 1999. A positive Report on Croatia was announced in May 2000: IP/00/526.

¹¹⁶ IP/99/656.

¹¹⁷ See Commission 2nd Report on Progress towards Accession by each of the candidate countries, 13 October 1999, Composite Paper Part V.2, and text above at note 41.

¹¹⁸ See Cremona, , “Flexible Models: External Policy and the European Economic Constitution” in de Búrca, and Scott, (eds), The Constitution of the EU: From Uniformity to Flexibility (Oxford, Hart Publishing, 2000)Google Scholar.

¹¹⁹ Report to the European Council on EU Action in support of the Stability Pact and South-Eastern Europe, presented to the European Council by the Finnish Presidency and the European Commission, Helsinki, 10–11 December 1999, Press Release 13814/99.

¹²⁰ IP/00/127.

¹²¹ See note 118.

¹²² Emphasis added.

¹²³ Speech by Minister Halonen to the European Parliament Committee on Foreign Affairs, security and defence policy, 31 August 1999.

¹²⁴ Hill, , “The Capability—Expectations Gap, or Conceptualizing Europe’s International Role” 31 JCMS (1993), 305 Google Scholar.