Enlargement Strategy and Main Challenges 2006 - 2007

Serbia is to be commended for its responsible approach following Montenegro’s
independence. The new constitution should pave the way to reinforcing the country’s system
of governance. Serbia has registered success in ensuring macroeconomic stability in pursuing
privatisation, and in attracting foreign direct investment. Economic integration with the EU
has advanced. Serbia has also made further progress with administrative reform. In
negotiations with the EU on a Stabilisation and Association Agreement (SAA), the Serbian
administration demonstrated its considerable institutional capacity. This augurs well for
Serbia's ability to catch up with the other countries of the region on the way to the EU, once
Serbia has met the condition for resuming SAA negotiations.
The Commission does not underestimate the scale of the challenges Serbia faces in current
political conditions. Serbia needs to take a constructive approach on Kosovo. The prospect of
eventual EU accession needs to be credible and made visible for the Serbian population
through the early resumption and rapid conclusion of negotiations for a Stabilisation and
Association Agreement, as soon as Serbia has met the condition of full co-operation with
ICTY. The EU is also working to bring the Serbian people into the European mainstream
through visa facilitation 5 and by helping Serbia to participate more fully in Community
programmes in areas such as education, youth, research and culture.
Kosovo 6
The EU has continued to engage with Kosovo, through monitoring the standards, providing
assistance, and working with UNMIK, as well as supporting the status process conducted
under the auspices of the UN Secretary General’s Special Envoy, Mr. Martti Ahtisaari. The
EU will have a major role to play in the status settlement and its implementation, once it is
agreed by the United Nations Security Council.
The status settlement needs to be politically and legally clear and to set out a vision for
Kosovo’s future development. Kosovo’s status question is sui generis, and hence sets no
precedent.
This will give a further impetus for the Kosovo authorities to progress on the reforms that are
needed in the key areas of the rule of law, economy, and public administration and provide
the basis for a successful transfer of responsibility from UNMIK. Minority rights remain a
vital issue, as is the participation of minorities in Kosovo's institutions.
The European perspective is crucial to provide all involved with a vision of a common future
in the European Union.
6. CONCLUSIONS AND RECOMMENDATIONS
Based on the above analysis, the Commission proposes the following conclusions:
1. The EU's enlargement policy continues to be based on the three principles of
consolidation, conditionality, and communication. The EU honours the commitments
made to the countries already in the process, but is cautious in assuming any new
5 See page 10 for more information on visa facilitation.
6 Under UN Security Council Resolution 1244.
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