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A Journal of Foreign Policy Issues



Greece and Co-Operation Among the South-East European Countries

By Mr. Yannos Kranidiotis, Deputy Minister of Foreign Affairs of the Hellenic Republic

The momentous changes in Eastern Europe, which have been under way for about a decade now, have transformed the Balkans, in terms both of politics and of the economy. A system, built and consolidated for more than half a century, collapsed and has given way to a completely new reality for the states and their peoples.

Yannos Kranidiotis Europe, in particular, faces new challenges in the post-Cold War era: the Warsaw Pact has been dissolved, the USSR's former satellites have fully recovered their sovereignty and the Soviet Union itself has been transformed into 15 independent states. Former adversaries are now co-operating on the basis of common values and principles within the framework of institutions such as the OSCE. Historic agreements have been reached in the field of arms reduction, both regionally and globally. Growing international interdependence is the salient element to be taken into account in any discussion of foreign and security policy.

The Balkan region has inevitably, been swept by the winds of change, while part of area was plunged in bloodshed threatening at times the whole region with upheaval. The emergence of nations - something which for the rest of Europe occurred during the nineteenth century - threatened to inflict mayhem upon the area, to feed nationalism and irredentism. Thus there was real danger that the Balkan peoples would be able only to watch opportunities for peace and prosperity pass them by. A feeling of uncertainty spread throughout the Balkan peninsula during the early 1990s, increasing mistrust and suspicion.

Heads of State and Government The proliferation of new states, the reappearance of claims by various national minorities suppressed under the old regimes, and disputes over borders, are some of the disturbing elements of the new reality. Furthermore, the economic collapse and the heavy transition costs on large sections of society in the former East European countries, the upsurge of nationalism and populist feelings, have all set the stage for a new approach to the question of security in Europe which has emerged as the major issue of political importance in the region. The concept of security itself has grown into a broader one, that of comprehensive security, which encompasses not just the stricto sensu military aspect but also human rights, democratic principles and economic development.

Security in Europe as a whole cannot be guaranteed without sustained economic development and the maturity of the democratic institutions in Eastern Europe, the Balkans and the Mediterranean. Uncontrolled and unlimited migration resulting from political turmoil and economic hardship in these areas could lead to social unrest even in the more prosperous countries of Western Europe. This, in turn, could fuel sentiments such as racism and xenophobia. By the same token, in the South, serious social and economic problems have given impetus to Islamic fundamentalism, with multiple destabilising effects.

Given these factors, a comprehensive stabilisation policy in our area should be based on certain fundamental principles: respect for the inviolability of existing borders according to the principles of the OSCE, discouragement of ultra-nationalist and irredentist tendencies. Equally significant is the application of the same criteria to the protection of all minorities in the Balkans, on the basis of accepted international norms. Such a policy should also aim at stamping out any kind of ethnic cleansing policies and at dissociating religion from any ongoing or future conflicts.

The enlargement of the European Union to the East appears to be an unavoidable strategic necessity. The inheritance of the Cold War cannot be overcome if politically and economically unstable areas are left out in the cold.

The process therefore of the enlargement of the European Union (EU) will have tremendous importance for the Balkan countries, which through this process may obtain a status similar to that of other former East European countries as soon as their situation allows them to do so.

The character of the relationship between the Balkans and the EU will be instrumental to the creation of inter-Balkan co-operation. If the Balkans remain at the margin of European developments, the probability of further destabilisation in the region is much greater. The trans-European networks in transport, energy and telecommunications could also promote intra-Balkan co-operation and help in creating a new European space. The importance of these networks is vital for the Balkan region, which suffers from serious gaps in its infrastructure. Selection of new networks, financing and, finally, implementation all require close co-operation among the countries concerned. Hence a major challenge for the Balkan countries, for the next decade, is the political and economic integration of southeastern Europe into the EU.

Greece, being at the same time a Balkan country and a EU member, will have a crucial role to play in this process. The successful integration of the Balkan area into the European structures is of strategic importance to Greece. Such a development will provide our country with an opportunity to find itself in the same geopolitical area as all its northern neighbours for the first time since the interwar period. Furthermore, the economic integration of the Balkan countries will greatly contribute to the well-being and prosperity of the area and of Europe as a whole.

In this sensitive region, Greece is well equipped to respond successfully to the new challenges. We are a homogeneous country, with stable democratic institutions and, despite temporary problems, the strongest economy in the area. Greece has a deep understanding of regional realities. At the same time, it is the only Balkan country, which is also a member of the European Union, NATO and the WEU. Greece has the potential to play -and actually does play- a major stabilising role in the region. In this respect Greece has considerably assisted all the countries in the area to conclude co-operation agreements with the European Union and integrate into the European family and institutions.

The war in former Yugoslavia however, proved that the suspicions and prejudices of the past were still present and able to cause conflicts among nations which previously lived peacefully together. When the war ground to a halt, the suffering peoples of this shattered country were given the opportunity to start rebuilding their homes and reshaping their future. Above all, they had to restore confidence amongst themselves, a necessary though elusive prerequisite.

At this juncture the countries of the area realised anew that, despite their differences, they had to find a modus vivendi, since they had no choice but to co-exist. The only viable solution for the Balkan nations was that of co-operation in order to create the necessary conditions which would transform the area from Europe's powder keg, as it was known historically, into a haven of stability, security, economic growth and prosperity for all. The road seemed long and hard. Optimism was low. However, by the mid-1990s the first signals of understanding had begun to appear. States at war with each other until recently sat down at the same negotiating table to talk about complicated and thorny issues.

A long-awaited beginning took place in Sofia in 1996 on Bulgaria's initiative. The Balkan countries embarked on an effort to lay the basis for co-operation which would gradually build a climate of confidence, good neighbourliness and stability in the area. The significance of this initiative is obvious. Moreover, the fact that this effort stems from within the area itself gives it a further impetus and an optimistic dimension.

At first political analysts seemed reserved as to the real will and ability of the Balkan states to establish the regional co-operation in various fields, based on common interests, such an effort would involve: for instance, cross-border co-operation, easing of interstate trade, joint undertakings in fields such as combating organized crime, drug and arms trafficking, illegal migration, promotion of environmental protection etc. Above all, the states would have to commit themselves to respecting international law and practice and to abiding by the principles which should govern the behaviour of nations.

Despite these reservations in a certain circles the procedure that began in Sofia continued in Thessaloniki in June 1997. Determined to go a step further, the participating states enriched their agenda with new items while reiterating their determination to attach themselves to decisions and commitments already undertaken. This co-operation, now more comprehensive, enjoyed the backing of all the countries of the region.

The desire to co-operate, coupled with a new climate of trust which gradually took shape, gave birth to a bolder proposal, on Greece's initiative, for the convening of a Summit Meeting. This meeting actually took place in Crete, on 3-4 November 1997, and brought together around the same table all the leaders of the Balkan countries.

The importance of such a meeting is clear. The impact of this new approach of bringing together the heads of the south-eastern European countries is currently hard to estimate. Nevertheless, the summit has offered an opportunity to the Balkan leaders to meet each other, something which for most of them, had never happened before. They discussed issues concerning their relations and sought ways to promote co-operation and build a common future in the area. This resulted in the signing of a Joint Statement which reflects their determination to continue this process and give it new impetus.

The importance of our region for the peace and prosperity of Europe is clear and can be found in other initiatives as well, such as the Royaumont Process and the South-Eastern Europe Co-operative Initiative (SECI), which are mutually complementary. These initiatives reflect the importance that the international community attributes to South-Eastern Europe and the attention with which it follows the efforts for regional co-operation.

Within the framework of inter-Balkan co-operation, it is worth mentioning that today Greece is economically very active in Albania, Bulgaria, Romania and FYROM. A few examples of the increasing ties of friendship and co-operation with Greece's neighbours will serve to illustrate the positive role Greece endeavours to play in the Balkans.

Greece has recently signed with Albania a Joint Declaration, an Agreement for the opening of three new border crossing-points and a Protocol on financial co-operation by which a soft loan of 80 million dollars has been granted to Tirana. Furthermore, projects for economic, military and police co-operation are under way. A series of ministerial visits underlines the vigour with which both countries are consolidating their ties. Greek Prime Minister Costas Simitis visited Tirana on 15 October, heading a large delegation.

Greece is also committed to contributing to the efforts of the international community to assist Albania in the present period of transition and to promoting domestic conciliation. Greece contributed a regiment to the Multinational Protection Force. It is now participating actively in the 'Partnership for Peace' programmes on Albania, in the Western European Union's Multinational Advisory Police element and in various projects of the OSCE and the Council of Europe.

In the bilateral economic field, it should be noted that Greece is Albania's second most important source of foreign investment. The southern part of Albania, which borders on Greece, is included in Greece's development law 1892/90 granting businessmen the same privileges as when investing in Greece itself. In effect, more than 150 Greek companies have invested over 120 million dollars in projects in the whole of Albania. Among other positive results, 6,500 new job opportunities have been created.

Relations are also developing rapidly with Bulgaria. Greece has granted large amounts of food aid to cover earlier needs of that country. Aid has been granted both on a state and on a local authority level, the latter thanks to the increasing number of sister cities and towns that have been established in the two countries.

A series of high level visits has taken place. This year alone the Bulgarian President, the Deputy Prime Minister and the Foreign Minister, among others, have paid visits to Greece. The two countries are working closely for the implementation of the Burgas-Alexandroupolis oil pipeline, a major project whose construction will benefit all the countries of the region and Europe as a whole. Following the increasing commercial and cultural exchanges between the two countries, agreements have been signed for the opening of three new border crossing - points along the Greek - Bulgarian frontier.

A significant role in Greek-Bulgarian co-operation has been assumed by Greek companies, which are very are active in Bulgaria. Greece holds first place in terms of the number of companies, concerned, which exceeds 700, and second place with regard to actual investment, exceeding 40 million dollars. In the same vein, Greece is the fourth largest exporter to Bulgaria and the fifth largest importer from that country.

Greece, consistent in its belief that an end should be put to artificial divisions in Europe, has actively campaigned for Bulgaria, as well as Romania, to be included in the first wave of negotiations for accession both the European Union and NATO. With both these countries, Greece has engaged (August 1995), on the Foreign Minister level, in a process of trilateral co-operation, in the fields more specifically of infrastructure, transport, energy and communications. Subsequent meetings of the three Foreign Ministers have taken place in Bulgaria (March 1996) and Romania (October 1997).

Meanwhile, bilateral relations with Romania are characterised by close contacts and the exchange of high, level visits. The President of the Hellenic Republic visited Romania in November 1995, while his Romanian counterpart reciprocated in May of this year. During President Constantinescu's visit to Greece, the two countries signed a Memorandum for further expansion of bilateral co-operation. The Greek Prime Minister visited the country in March 1997.

Equally noteworthy is the progress being made in the field of economic and commercial relations. Romanian exports to Greece in 1996 were worth 173 million dollars, while imports amounted to 170 million dollars. Over 1,600 Greek companies are active in the Romanian market, with total investments of around 60 million dollars. In terms of number of companies and investments, Greece holds the fourth and eight place, respectively, among EU countries. Increasing co-operation has been achieved on merchant shipping as well.

Relations between Greece and the Former Yugoslav Republic of Macedonia (FYROM) have been also improving, since the signing of the Interim Accord between the two countries in September 1995 and the subsequent signing of various Mamoranda on practical measures as well as the opening of Liaison Offices in the two capitals.

Greece and FYROM have embarked on co-operation in various fields: transport, communications, customs, hydro-economy, police and cultural matters. Greek companies hold first place among foreign investors. In 1996, Greek exports to FYROM amounted to around 45 million dollars, while imports rose to about 39 million dollars. In terms of volume of trade. Greece is FYROM'S third largest trading partner.

Against this positive economic background, Greece is pursuing, in a spirit of good faith, negotiations at the United Nations, under the auspices of Mr Cyrus Vance, in order to arrive at a mutually acceptable solution as to FYROM's name, in accordance with the relevant UN Security Council resolutions.

Greece is making every effort to enhance relations with all the countries emerging from former Yugoslavia. In this context, for example, Greece was one of the first countries to open an Embassy in Zagreb and has recently opened one in Sarajevo. I am convinced that the Balkan countries have today a unique opportunity to lay the foundations for a better future, to the benefit not only of all the nations of the region but of Europe as a whole.

Greece is ready to contribute to this common effort and will continue, to the best of its abilities, to promote stability and co-operation among the Balkan nations. Indeed, the Balkan states are eager not only to enhance their own co-operation, but also to take an active part in shaping future developments of immediate concern both in their region and in the whole of Europe. European integration cannot be complete without the participation of the Balkan countries.

Unless South-Eastern Europe finds its way through peace, prosperity and integration into the European system, the negative impact of turmoil and instability will be felt throughout the continent. Leading the Balkans out of instability is therefore a collective responsibility, although it falls primarily on the states of the region to demonstrate our determination and sincerity to work together towards that end.

There is no doubt that much remains to be done. However, enhancing political co-operation and strengthening our economic ties will pave the way for a stronger, more prosperous South-Eastern Europe which will enable it to play an even more positive and constructive role in the European architecture and on the wider world stage.