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Sent: Wednesday, January 24, 2001 6:39 PM
Subject: Euro diplomacy in the Balkans [STOPNATO.ORG.UK]


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INTERVIEW-EU plans $200 mln programme for Serbia in 2001

By Fredrik Dahl

  
BELGRADE, Jan 24 (Reuters) - The European Commission is planning a 220 
million euro ($206 million) programme in 2001 to support reform efforts in 
impoverished Serbia following the downfall of Slobodan Milosevic, a 
Balkan-based EU official said. 

Hugues Mingarelli, director of the European Agency for Reconstruction, said 
these budgeted funds were in addition to 200 million euros in emergency aid 
agreed by the European Union last year to help the country cope with the cold 
winter months. 

This year's programme of the EU's executive commission, not yet finalised, is 
expected to focus more on structural issues and to include assistance in 
areas such as the crucial energy and agriculture sectors, neglected during 
the Milosevic era. 

"A lot has to be done, obviously," Mingarelli, whose office will be 
implementing the programme, told Reuters in an interview this week in the 
agency's new Belgrade premises. 

"They (the Yugoslav authorities) have to reform their public administration, 
they have to create the condition for development of enterprises, they have 
to reform public utilities, some basic infrastructure has to be modernised." 

But Mingarelli also expressed optimism about the work ahead, stressing that 
Serbia had many assets, especially its people. 

"We are struck by the fact that we meet skilled people. Most of them are very 
well prepared, they are really willing to embark on a path of economic 
reform, so we have all reasons to be optimistic about our future cooperation 
with them," he said. 

The new Belgrade leadership has pledged to introduce speedy economic reforms, 
saying it needs international aid to succeed. 

SIX-YEAR PACKAGE 

In November the EU approved a package of financial aid for the western 
Balkans, including Yugoslavia, worth 4.6 billion euros over a six-year period 
in a bid to cement democracy in Europe's most turbulent region. 

Last year, the 15-nation Union expanded the mandate of the reconstruction 
agency, in charge of implementing EU-funded programmes in internationally-run 
Kosovo, to cover also Serbia and Montenegro, Yugoslavia's two remaining 
republics. 

Like other international bodies and donors, it will seek to assist the 
country's new reformist rulers rebuild an economy shattered after a decade of 
Balkan wars, economic mismanagement and international isolation. 

The reconstruction agency is especially looking at the needs of assistance in 
the energy and farming sectors, the development of small and medium-sized 
enterprises, in pharmaceutical production and in helping with policy advice. 

"In the energy sector a lot has to be done as a result of 10 years of 
isolation. The infrastructure in the energy sector has not been properly 
maintained, there has been very little investment," he said. 

05:21 01-24-01


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