Identifier
Created
Classification
Origin
08BRUSSELS99
2008-01-18 10:34:00
UNCLASSIFIED
USEU Brussels
Cable title:  

EU DONOR COORDINATION IN THE BALKANS (OTHER

Tags:  EAID PREL EUN XH ZL 
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VZCZCXRO5920
PP RUEHAG RUEHDF RUEHIK RUEHKW RUEHLZ RUEHPOD RUEHROV
DE RUEHBS #0099/01 0181034
ZNR UUUUU ZZH
P 181034Z JAN 08
FM USEU BRUSSELS
TO RUEHBW/AMEMBASSY BELGRADE PRIORITY
RUEHSQ/AMEMBASSY SKOPJE PRIORITY
RUEHVB/AMEMBASSY ZAGREB PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY
INFO RUCNMUC/EU CANDIDATE STATES COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHUP/AMEMBASSY BUDAPEST PRIORITY
RUEHTI/AMEMBASSY TIRANA PRIORITY
RUEHPS/USOFFICE PRISTINA PRIORITY
UNCLAS SECTION 01 OF 02 BRUSSELS 000099 

SIPDIS

SIPDIS

USAID FOR E&E AND ODP; STATE FOR EUR/ACE, EUR/SCE, EUR/ERA

E.O. 12958: N/A
TAGS: EAID PREL EUN XH ZL
SUBJECT: EU DONOR COORDINATION IN THE BALKANS (OTHER
COUNTRIES)

REF: A. BRUSSELS 00034


B. BRUSSELS 00043

C. BRUSSELS 00045

UNCLAS SECTION 01 OF 02 BRUSSELS 000099

SIPDIS

SIPDIS

USAID FOR E&E AND ODP; STATE FOR EUR/ACE, EUR/SCE, EUR/ERA

E.O. 12958: N/A
TAGS: EAID PREL EUN XH ZL
SUBJECT: EU DONOR COORDINATION IN THE BALKANS (OTHER
COUNTRIES)

REF: A. BRUSSELS 00034


B. BRUSSELS 00043

C. BRUSSELS 00045


1. SUMMARY: Ongoing development programs in several Balkan
countries including Croatia, Macedonia and Montenegro were
discussed during a December 13 donor coordination meeting
organized by the European Commission (EC) in Brussels. The
EC anticipates making more than 450 million euros available
to Croatia over the next three years. In contrast, bilateral
assistance (from EU member states) to that country is very
modest and largely in a phase-out mode. On a per capita
basis, both Macedonia and Montenegro receive relatively large
amounts of donor assistance from various European partners
and EC interest remains strong, though some bilateral
programs in Macedonia in particular are also moving toward
phase out.


2. BACKGROUND: On December 13, the EC hosted an all-day
donor coordination meeting in Brussels to seek bilateral
input in conjunction with the development of a new EC
assistance strategy for the Balkans covering the period
2008-2010. Opened by Michael Leigh, Director-General for
Enlargement, the event was partly a "show and tell" involving
contributions from individual donors. The USAID
Representative to the EU attended on behalf of the US; other
non-EU members represented included Switzerland and Norway.
This is the fifth and final installment in a series of cables
summarizing current programs and future plans for various
donors now working in the Balkans.


3. CROATIA: Anticipated EC funding for Croatia over the
next three years (2008-2010) is significant, reaching around
451 million euros. Areas of special interest include cross
border cooperation, rural development, training,
institution-building and "twinning" relationships with
members states--all aimed at facilitating formal EU
accession. In contrast, bilateral European donors in Croatia
have largely either disappeared or are entering into a
phase-out mode. For example, France manages a small
bilateral aid program in Croatia, on the order of 900,000
euros annually; Netherlands no longer has a direct bilateral
aid engagement with Croatia; and Sweden will be closing out

most of its bilateral assistance program soon. However, the
Swedes also stated that their current commitment to support
public administration and land management will be honored and
that this particular project will continue into 2009.


4. MACEDONIA: Anticipated EC funding for Macedonia over the
next three years (2008-2010) is estimated at some 244 million
euros. "Competitiveness" is viewed as an important organizing
theme, though specific details still need to be worked out.
Other areas of interest in Macedonia include institution
building, cross border cooperation, including with Bulgaria
and Greece; regional development, including transportation
infrastructure; human development, with an emphasis on
employment; education and social inclusion; and rural
development, with a focus on business development, EU
standards and the environment.


5. Bilateral European aid programs continue to support
various sectors in Macedonia, though at least some donors are
moving toward a phase out mode. For example, the Dutch have
provided 237 million euros to Macedonia since 1994 and made
50 million euros available in 2007. Activities cover several
areas, including public financial management, good
governance, basic education and the private sector. Also,
education programs include a co-financing partnership for
educational infrastructure with the World Bank. Despite
continued interest in development in Macedonia, the Dutch
indicated that their aid program is now moving toward "phase
out".


6. Austria provided 2.4 million euros to Macedonia in 2007,
with some 16 million euros having been provided since the
middle 1990s. Water and energy have always loomed large in
the Austrian aid portfolio. Also, the Austrians cooperate
with the Dutch on water and the Swiss and Norwegians on
school modernization. Other donors involved include the UK
(around one million pounds annually with a focus on good
governance and economic growth); France (modest budgets,
largely focused on magistrates, public executives and the

BRUSSELS 00000099 002 OF 002


police in the area of trafficking); and Sweden (areas of
particular interest here include agriculture, human rights
and the environment).


7. MONTENEGRO: Planned EC funding for Montenegro is 85
million euros over the next three years (2008-2010). Along
with Kosovo, this represents the largest per capita EC
investment in the Balkans. A four person EC delegation
manages the program in the field. Areas of particular
interest include democracy, governance and economic growth,
with civil society emerging as a new area of involvement.
The intent in every case is to promote European integration.


8. Austria started its bilateral aid program in Montenegro
in 1998 and opened an office there seven years later. So
far, Austria has provided five million euros to Montenegro.
Priorities over the next three years include tourism,
education, governance and institution building. Also,
Austria supports vocational training for the Roma community.


9. Several other European donors also noted some level of
aid involvement in Montenegro. These include France (loans
for the power sector and other infrastructure projects);
Italy (assistance for the disabled and programs to promote
both sustainable agriculture and sustainable tourism); and
Sweden (seven million euros over the next three years to
support aid programs in Montenegro managed out of the Swedish
embassy in Belgrade).


10. COMMENT: While Kosovo generated the most interest
during this dy-long working level meeting, the format
afforded a fairly comprehensive overview of a variety of
other donor programs either underway or planned across the
former Yugoslavia. From a donor standpoint, Croatia is
viewed as a particularly notable success story. While
bilateral aid programs in Croatia are now either modest or
phasing out, EC funding levels will be significant over at
least the next three years, all organized around a European
integration theme. A similar interest underpins the
significant EC aid investment anticipated for both Macedonia
and Montenegro during the coming three years.
MURRAY
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