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PRODI ANNOUNCES NEW ECONOMIC TIES WITH CROATIA PRIOR TO ZAGREB SUMMIT

BRUSSELS, July 17 (Hina) - The European Commission hopes that prior to a summit of the western Balkans and the European Union, set for autumn in Zagreb, new trading relations will be established between EU member states and Croatia, said Commission President Romano Prodi on Monday in Brussels where he conducted talks with Croatian President Stjepan Mesic.
BRUSSELS, July 17 (Hina) - The European Commission hopes that prior to a summit of the western Balkans and the European Union, set for autumn in Zagreb, new trading relations will be established between EU member states and Croatia, said Commission President Romano Prodi on Monday in Brussels where he conducted talks with Croatian President Stjepan Mesic.#L# The European Commission has already adopted a draft for new economic relations with Croatia and now it is up to EU member countries to endorse these measures, said Prodi at a news conference he held with Mesic, and explained that it was about duty- free import of most Croatian products. In addition, measures will be taken to ease Croatia's access to the European market. Our aim is that this week we may be given a negotiating mandate for the Stabilisation and Association Agreement with Croatia and we hope that the EU member countries will endorse the mandate very soon, said Chris Patten, the European Commissioner for External Relations, who also met the Croatian head of state. Patten stressed that the Commission wanted to start the negotiations with Croatia as soon as possible, i.e. before the scheduled summit of western Balkan countries. We appreciate efforts the new Croatian government is investing in the future of the country, Commissioner President Prodi said adding that the European Commission understood the difficulties of a complicated political situation and even bigger difficulties of huge economic transformation. Despite many problems Croatia is faced with such as the problem of refugees, the country's potential is strong, he assessed and announced that on Tuesday the EC would begin granting 10 million- euro assistance to Croatia for the refugee problem. The sum is not great but we want to forward a message of the political stability to the region, Prodi said. "We talked about all concrete topics and the summit which will be organised in Zagreb, at French President Jacques Chirac's initiative, and which will draw officials of all EU member-states and countries established in the area of the former Yugoslavia (SFRY)," Croatian President Mesic told reporters adding that additional consultations would be held on possibilities of inviting some neighbouring countries to the Zagreb conference. An essential part of the Brussels talks was to make it clear that the Zagreb summit should not be limited to framework messages, Mesic explained. It should be established how the summit can go the heart of problems, and after it Croatia can certainly be no longer what it has been before, he envisaged. Mesic advised that all parties should assume their part of commitments. "Croatia, being a safe zone, must be attractive to foreign investment," he said adding that the EC would take concrete measures to funnel the capital to his country. Mesic, who today commenced his two-day visit to Brussels with meetings with NATO and EU representatives, is to hold talks with senior Belgian officials on Tuesday. (hina) mm ms

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