Erhard Busek, the special co-ordinator of the Stability Pact for South Eastern Europe, gave an exclusive interview to The Sofia Echo during a one-day visit made to Bulgaria on October 16 as part of preparations for the establishment of the Regional Co-operation Council.

The Stability Pact was set up in 1999 as a comprehensive conflict prevention strategy by the international community to build peace, democracy, respect for human rights and economic prosperity in South Eastern Europe.

With the changes in the region, including the 2007 accession to the European Union of Bulgaria and Romania, a new “regionally-owned” co-operation framework will by the first half of 2008 take over the responsibilities of the Stability Pact.

To be known as the Regional Co-operation Council, it will bring together representatives of South Eastern European countries, including UNMIK/Kosovo, with representatives of the international community. Its focus will be on five priority areas – economic and social development, infrastructure, justice and home affairs, security co-operation, building human capital, as well as parliamentary co-operation.

In concrete terms, what role do you see the RCC playing in economic and social development?
The RCC is a specific part of the South Eastern European co-operation process, including the European Commission, the Council, the main donor countries, and also donors from outside the EU, such as the US, Norway, Switzerland, to give them a chance to influence the decision-making and to be involved constantly in how the projects are done.

With Bulgaria and Romania joining the EU, what steps do you see as necessary to foster such development?
I think we need Bulgaria and Romania on the one side as an advocate within the EU, and to promote the notion that South Eastern Europe is very important for the future of Europe, and on the other side, to push the countries of the region forward concerning regional co-operation. Because sometimes there is a tendency for every country to look alone to Brussels, but we have a lot of common problems, concerning free trade, concerning the River Danube, concerning crime-fighting - we can deliver a long list on the subject of where we need regional co-operation. Bulgaria and Romania are in the midst, in between – on one side now joining the EU, on the other side being a part of the region and being involved also in these regional problems.

Given the historic and contemporary rivalries among countries of the region, isn’t there a risk that efforts at regional co-operation will be undermined by these rivalries?
The EU, I think, is quite a huge entity with a lot of regional rivalries. I may raise the Austrian experience – although there were difficulties during the last century, co-operation among Austria, the Czech Republic, Poland, Slovakia, Hungary, Slovenia has developed very well because we have common interests.

Until the future status of Kosovo is resolved, can such regional co-operation really work effectively?
The Stability Pact is not involved in the status question. We are concerned that Kosovo not be a black hole on the map because it has an impact on the regional situation concerning business, crime-fighting, transport and so on. My advice to the region is not to be involved in direct decision-making; it is up to the Contact Group to do the job, but to be aware that the peaceful development of Kosovo is of importance for the whole region. And maybe to assist, because for sure we have some problems concerning non-existing borders with Macedonia, and on the other side, we need Serbia in on this exercise. The leadership is up to the international community, but to have the clear impression that it is of importance to us what happens in Kosovo.

Is there not a major obstacle in attitudes – a cynicism and a caution – among Western private sector investors towards South Eastern Europe, especially the countries of the Western Balkans?
I think what I am fighting the position of some countries, ‘please come to my country, we are eight million’ ‘we are four million’ ‘we are two million’ – that makes no sense. Investors are now going to a whole market of consumers, of 55 million. If you have to compete with China and with India, it’s a very small opportunity. But on the other hand, I think probably we can say to investors that the region is a connection to the Black Sea area, to the eastern part of the Mediterranean, to the Middle East – you should be present there. Therefore, we are creating common conditions, as we are doing now with CEFTA (the Central European Free Trade Agreement) to have a single-market solution for the whole region.

What role could the RCC play in the EU prospects of the Western Balkan countries?
The European prospects of these countries have to be maintained. There is a lot of concern, which I understand, about discussions like ‘absorption capacity’ and ‘no further enlargement’ but my advice to the countries of the region is to transform, to fulfil the acquis communataire, and I think if they are prepared, if they are really European in terms of the regulations and the way they handle things, at the end of the day there will be a mood within the EU to give them the opportunity to join it.

Won’t the RCC have its work cut out, now that there appears to be a hardening of attitudes against further expansion after the admission of Bulgaria and Romania?
The real problem is that the EU is learning from every step of enlargement. The next (candidates) are always suffering because of the experiences of the previous ones. But on the other side, it makes it easier, because you can be sure every country has to improve, otherwise the EU would not be a common entity.

What is your forecast for the South Eastern Europe of five years from now, in 2011?
I am quite sure by 2011 there will be an improvement of the economic situation, because there is a huge opportunity for investment. I would expect that there will be a solution for Croatia by this time, if they improve in the right way, and also we will get negotiations with Macedonia, Albania, and, if Serbia is independent from Kosovo, and Bosnia is improving internally, we will move forward in the right direction. In general, I am optimistic.