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CROATIA, EU SIGN STABILISATION AND ASSOCIATION AGREEMENT - EXTENDED

LUXEMBOURG, Oct 29 (Hina) - Croatia signed a Stabilisation and Association Agreement (SAA) with the European Union (EU) in Luxembourg on Monday, whereby Zagreb has won the status of potential candidate for full membership in the Union. "This is indeed a historical day in relations between Croatia and the EU," Croatian Prime Minister Ivica Racan said at the signing of the SAA. "Today's signing of the SAA firmly places Croatia on the road towards the EU. This is only the first step on a long and difficult path. I am convinced we will successfully reach the end of the road, becoming a part of a new integrated Europe," Racan added. The EU Council of Ministers' chairman, Belgian Foreign Minister Louis Michel, said the Croatian government had made huge progress in politics and the economy over the past two years, and added those changes made today's signing of the SAA and the joint political statement p
LUXEMBOURG, Oct 29 (Hina) - Croatia signed a Stabilisation and Association Agreement (SAA) with the European Union (EU) in Luxembourg on Monday, whereby Zagreb has won the status of potential candidate for full membership in the Union. "This is indeed a historical day in relations between Croatia and the EU," Croatian Prime Minister Ivica Racan said at the signing of the SAA. "Today's signing of the SAA firmly places Croatia on the road towards the EU. This is only the first step on a long and difficult path. I am convinced we will successfully reach the end of the road, becoming a part of a new integrated Europe," Racan added. The EU Council of Ministers' chairman, Belgian Foreign Minister Louis Michel, said the Croatian government had made huge progress in politics and the economy over the past two years, and added those changes made today's signing of the SAA and the joint political statement possible. I assure you that the EU will asses Croatia on the basis of its own merits and the progress it will make, Michel said and expressed satisfaction that Croatia was not neglecting the development of regional relations with its neighbours. The European External Affairs Commissioner Chris Patten said the signed SAA represented a foundation stone on the path to the EU. Asked to comment on why the agreement insists on regional cooperation, Patten said the EU did not intend to create a new Yugoslavia. The EU itself is the best example of successful regional cooperation, he said. The SAA goes into force upon ratification in the Croatian parliament, the parliaments of all EU members, and the European Parliament, which should take approximately two years. In order not to wait for the ratification, a transitional agreement was signed to activate the trade and transport provisions of the SAA. The transitional agreement goes into force on Jan. 1, 2002. The latter agreement was signed simultaneously with the SAA, by Croatian Foreign Minister Tonino Picula, the chairman of the EU Council of Ministers - Belgian Foreign Minister Louis Michel, and commissioner Patten. Croatia and the EU also adopted a joint declaration on political dialogue which establishes the goals and content of political dialogue for the period leading to the ratification of the SAA. The joint declaration gives a legal framework for political cooperation until the SAA, which includes regulations on political dialogue, comes into force. The SAA is the new generation of agreements on associated membership made by the EU for five Southeast European countries (Croatia, Bosnia-Herzegovina, the Federal Republic of Yugoslavia, Macedonia, Albania). Unlike the so-called European agreements, signed with the ex-communist block countries, the SAA includes the strengthening of regional cooperation between the five countries. The countries, signatories to the SAA are obliged to sign bilateral cooperation agreements within two years with the countries which already have signed the agreement. This means that at the moment Croatia needs to sign such an agreement with Macedonia, which had signed the SAA previously. The SAA does not include the establishment of any multilateral regional framework. The joint EU/Croatia statement read that one of the goals of political dialogue is making Croatia's integration with the European political and economic mainstream as easy as possible, based on the country's individual merits and achievements. The most important trade parts of the Agreement include a transitional period in which Croatia will gradually liberalise its market for a part of industrial and agricultural products from the EU, while the country will discontinue customs fees for a part of industrial products as of January 2002. In November 2000, the EU decided, with some exceptions, to simply liberalise its market for Croatian products. A part of expenses of political and economic adjustments in Croatia will be financed by the EU through the CARDS programme. The EU has earmarked EUR4.65 billion for all five countries of the region until 2006. The amount earmarked for Croatia for next year totals EUR60 million. The implementation of the Agreement will be monitored by a Stabilisation and Association Council, which will include representatives of the EU and Croatia. Articles 112 and 113 of the SAA read that the Stabilisation and Association Council is authorised to pass decisions only within the frame of the agreement, in issues established by the agreement. The decisions will be binding to all parties. The Council is also authorised to solve any issue referring to the implementation or interpretation of the agreement with "a binding decision". The same regulations are included in so-called European agreements which the EU has signed with countries-candidates for full membership. In connection with the issue, the Croatian government has passed a decision under which decisions of the Stabilisation and Association Council as well as of an interim committee (until the SAA comes into effect), and which demand that the passing of new or amendments to existing laws be implemented in line with the regulated procedure for the adoption of laws in home legislation". (hina) it sb

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