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OFFICIAL SAYS: STABILITY PACT'S POLITICAL RESULTS GOOD, FINANCIAL SLOW

ZAGREB, July 28 (Hina) - Croatia has reaped considerable political benefit from its participation in the Stability Pact for Southeast Europe over the past year, but financial assistance can be expected only next year, Tomislav Thuer, head of the pact's department at the Croatian Foreign Ministry, said in Zagreb on Friday.
ZAGREB, July 28 (Hina) - Croatia has reaped considerable political benefit from its participation in the Stability Pact for Southeast Europe over the past year, but financial assistance can be expected only next year, Tomislav Thuer, head of the pact's department at the Croatian Foreign Ministry, said in Zagreb on Friday.#L# The one-year balance of the pact launched in Sarajevo on 30 July 1999 is dual. On the one hand, there are major political benefits in the stabilisation and democratisation of the region and the inciting of regional cooperation and cooperation between the region and the European Union, while on the other, there is dissatisfaction with the slow pace at which the region has been receiving material and financial assistance. Croatia shares the ambivalent view of the Stability Pact with other Southeast Europe countries expecting assistance from it. It is satisfied with the pact's political and dissatisfied with its material and financial results. Croatian Prime Minister Ivica Racan said in Sarajevo on Thursday Croatia supported the pact, but that he was not satisfied with some processes within the pact due to their slow progress or stagnation. Analysts say assistance is slow in coming due to the caution of potential donors, bureaucracy, and poor political leadership. "Croatia has redefined its attitude towards the region through the Stability Pact, thus helping itself come closer to the EU," Thuer told Hina. "The pact has played a significant role in creating frameworks in which Croatia is seen as a stable and democratic country," he said. Croatia, however, like the other countries, can hardly expect material assistance within the pact's projects before next year owing to the simple fact that the funds from the EU and the countries which expressed willingness to finance certain projects are not covered by this year's budgets. "We expect to 'collect' more concretely for the fact that we are the 'good guys' only next year," said Thuer. A financial conference held in Brussels in March promised US$6 billion in support for Southeast Europe countries, including 2.3 billion for quick-start projects which must begin within the year. Croatia was promised US$135 million for several quick-start projects, including 100 million for 23km of a Breznicki Hum- Varazdin highway, and 22 to modernise a Beli Manastir-Vrpolje railway. Thuer recently attended a meeting in Luxembourg with representatives of the European Investment Bank, at which Croatia was given an entirely positive welcome. It will, however, take considerable time for the two EIB-financed projects to begin. An EIB fact-finding mission should arrive in Croatia in September. The EIB will be able to get a mandate for cooperation with Croatia only towards the end of the year. The situation is similar with a Croatian project for the return of 16,000 Serb refugees. The Brussels conference applauded the project as a significant contribution to the protection of human rights and restoration of confidence in the region. The US$55.6 million project requires time to find financial backers and for the money to actually come to Croatia. (hina) ha mm

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