I thank the Chairman and it is my honour and pleasure to speak before the committee today. This presentation will last about 12 to 13 minutes and I will be more than happy to hear any questions, comments or remarks members might have afterwards. The presentation includes an overview of the background to the current situation and some of the recommendations I would like to put forward. What I will be presenting today is the reality of the Kosovar situation, the way forward and the assistance we need in order to achieve EU integration.
As members might be aware, the political process to determine Kosovo's future status was launched in November 2005. Under the auspices of the UN envoy Mr Martti Ahtisaari, talks between Pristina and Belgrade are ongoing with particular focus on decentralisation, community rights, religious and cultural heritage and economic issues. Kosovo is in an historical moment that Kosovars have been awaiting for decades.
The outcome of the status talks will, hopefully, be independence after which we will face challenges, the main one being to initiate economic growth and sustain economic development in line with other countries in the region. When I mention countries in the region, I believe strongly that no reform, aid or assistance to any of the countries in the western Balkans can and will succeed separately. The stability or instability of any country will have a mirror effect on others and this is why it is so important to have the Kosovo issue at the top of the agenda of the western Balkans. It is the last region that is lacking status definition.
When a final peace is settled in the western Balkans we can integrate easily regionally and across Europe. The European Union is a very good example of functioning systems multiplying themselves, particularly Ireland, which has benefitted from the system.
I want to elaborate on the reality in Kosovo. Kosovo is now politically stable but is still lacking major developments. The entire situation is the result of the following factors.
There is a lack of status definition which has extended the life of the United Nations Mission in Kosovo, UNMIK. Dealing with two governing bodies with split responsibilities and a third one functioning north of Kosovo has proved an inefficient method of government, especially as this has suffocated the democratic responsibility of elected authorities. Rule of law is an area that was and still is, to a large extent, under the management of the UN administration in Kosovo. It is the area that most lacks and needs serious reform and hard work.
Due to the young age of our civil administration we need more reforms and guidelines on institution building showing how to make the system function better and have the administration address the needs of Kosovo's people. A lack of economic perspective and development is also a major factor.
As I mentioned earlier, the focus of my presentation today will be the challenge of economic development after the status resolution, which is one of the main challenges Kosovo will face. It will always have an impact on the stability of the future of Kosovo.
Before we come to the future, I will briefly mention the history of EU assistance to Kosovo. From 1998 to 1999, EU assistance to Kosovo was provided through a variety of instruments including regular technical assistance, humanitarian aid, exceptional financial support and financing to the fourth pillar of UNMIK. Since 2000 the Community assistance for reconstruction, development and stabilisation, CARDS, programme has been the main financial instrument for Kosovo. To date, European Union assistance, including assistance from the EU member states, amounts to €2.6 billion. Of this figure, European Community assistance accounts for only €1.8 billion.
The stabilisation association process, SAP, under the tracking mechanism, established by the Commission with local and international authorities, provides a high level forum for policy and technical dialogue. Reports, under the SAP, on the progress of Kosovo have the same timeline as other countries in the region.
The future of Kosovo is seen by the majority of Kosovars, without doubt, to be European integration. Kosovo is currently a part of the tracking mechanism for stabilisation association and will hopefully sign a stabilisation association agreement. The EU will have the leading role in Kosovo during the next international administration and that is why it is very important to have Ireland, one of the fastest growing economies in the EU, informed of the situation there. This is a major opportunity for the EU to make a difference as the UN administration had been in control to this point. The EU will hold responsibility for running the international civilian office in Kosovo.
Kosovo has many advantages in its favour including the young age of its population. Around 70% of Kosovo's population is under 30 years of age, which gives the country a huge advantage but also presents a threat if there is no plan to engage the work force.
Other advantages include the determination of its people for progress, European integration and Euro-Atlantic integration — there is no doubt the Kosovo population sees European integration as its future. Other positive factors are its location in the heart of Balkans, proximity to other countries in the region and its natural resources, a great asset that has not been utilised, including lignite, copper, zinc and lead. Challenges to economic development include a lack of proper infrastructure, the lack of a stable power supply and a lack of job opportunities for more than 20,000 Kosovars who enter the labour market each year.
Advantages and challenges to Kosovo can be balanced easily if an appropriate plan is in place accompanied with practical assistance from the EU and US. As stated in the multiannual indicative planning document for Kosovo:
Sustainable stability can only be achieved if Kosovo's economy develops and offers opportunities to all communities. Support to economic growth will be another key objective for EU assistance to give inhabitants of Kosovo better possibilities of work and to ensure good living conditions for their families.
Currently the notion of EU accession is very popular in Kosovo and, as previously mentioned, the EU administration will soon take the lead in the international administration in Kosovo. The EU has a real chance to make a success story out of Kosovo. Kosovo's territory covers 10,000 sq. km, it has a population of over 2 million western oriented people and it is located in the heart of Europe. Since the end of the war in Kosovo the EU has been the major donor to the country, initially through emergency donations and later infrastructural donations
However, the results are far from satisfactory. Most of the serious donations were granted for technical assistance, which is not what is needed the most. Major concentration should be given for future instrument of pre-accession assistance to job creation and strengthening the rule of law.
In the meantime, countries of the EU, in this case Ireland, can assist Kosovo by seeking more accountability for implemented projects in Kosovo from governing institutions, attracting foreign direct investment and providing know how with recommendations based on experience. Kosovo can also be assisted through the relaxation of the current visa regime as most visa policy changes approved by the EU for south-eastern European countries either exclude Kosovo or do not take it into consideration.
One can argue that while similarities exist between Kosovo and other accession countries, they are not the same and therefore the results cannot be the same. However, if we examine the history of the existing EU countries, we find that most of the less developed ones share the same history and grew rapidly following EU accession. Political will is needed, along with support from the Union. On the 50th anniversary of the Treaty of Rome, it is important that the news from Brussels for the western Balkans should become more encouraging. Working towards EU membership means working for a better life for ourselves, involving greater European harmonisation.