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Dáil Éireann debate -
Tuesday, 23 Nov 1999

Vol. 511 No. 3

Written Answers. - EU Sanctions.

John Bruton

Question:

119 Mr. J. Bruton asked the Minister for Foreign Affairs if, further to Parliamentary Question No. 124 of 9 November 1999, he will make a statement on the particular impact of sanctions on the Federal Republic of Yugoslavia, in general on the particular situation of Montenegro in view of the fact that Montenegrons did not participate in the war in Kosovo and are a separate Republic and should not be suffering the same level of sanctions as those who were allegedly culpable. [24456/99]

In my response to the previous question to which the Deputy refers, I set out both the objectives of the EU sanctions against the Federal Republic of Yugoslavia, and also their scope and impact. I made it clear that sanctions are intended to apply pressure on Belgrade to implement necessary reforms and contribute to the stability of the region. I also made it clear that our dispute is not with the Serbian people but with the Government of President Milosevic.

As regards the sanctions on the Federal Republic of Yugoslavia-Serbia, the position remains as indicated in my earlier reply. As regards Montenegro, which is an integral part of the Federal Republic of Yugoslavia, the European Union decided on 15 October to exempt that republic from the main EU sanctions against the Federal Republic of Yugoslavia, notably the oil embargo and the flight ban. This decision reflects the support of the European Union for the democratically elected Government of Montenegro.

The European Union is in consultation with the Montenegro authorities on a practical assistance programme for the economy. Over 40 million euro from the EU budget has been spent on aid for Montenegro since 1998. This is in addition to 15 million euro humanitarian assistance and bilateral aid by member states. At its meeting on 15 November the General Affairs Council asked the Commission to prepare a budgetary programme for reconstruction in Montenegro for the year 2000. The possibility of extending the activities of the EU reconstruction agency, currently active in Kosovo, to cover Montenegro is being studied.

The economic situation in Montenegro, although better than that in Serbia, is difficult. Unemployment is 40 per cent and there was $500 million worth of indirect infrastructural damage as a result of NATO air strikes against military targets in the republic. Inflation of the Yugoslav dinar, partly as a direct result of the sanctions against the Federal Republic of Yugoslavia, has threatened economic reforms which the Montenegro Government is carrying through. This has led to Montenegro's decision to introduce the deutschmark as a parallel currency. Financial police are on the border between Montenegro and Serbia to prevent smuggling of currency and in general the transition to the parallel currency seems to have proceeded calmly. EU currency experts established contact with the Montenegro Government shortly after the decision to adopt the deutschmark as a parallel currency was announced and have been assisting with the changeover.
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