Croatia - a new candidate

Mr. Chairman,
Dear friends and colleagues,

I am very happy to be here today, and exchange with you information and ideas on the further enlargement of the Union. I am equally happy to inform you of the Croatian application for the membership in the EU that was handed over to the Greek Presidency in Athens on Friday last week. This application comes at the historic time for the enlargement of the EU, when Copenhagen European Council opened the door of the EU to 10 future members. Croatian application reaffirms the individual approach policy of the EU towards the Stabilisation and Association Process countries. From my country’s point of view it should also be regarded against the background of the EU objective to welcome Romania and Bulgaria in the EU in 2007.

The European Council reaffirmed the European perspective of the countries of the Western Balkans in the SAP, and underlined its determination to support these countries’ efforts to move closer to the EU. Since June 2000 they are considered as potential candidates for the EU membership. I hope that from “potential” Croatia will in due time move to “real” candidate, based on its own merits and achievement. In other words, Croatia wants to turn from the “potential candidate” status into a candidate with the potential.

Croatia’s application: why now?

Croatia’s decision to submit application for the EU membership came as a logical conclusion of our efforts to catch-up with the mainstream of the EU enlargement process. It is a carefully measured act based on the following:

(1) The consensual Parliament’s Resolution of the accession of Croatia to the EU membership;
(2) An overwhelming public support to join the EU;
(3) A substantial progress in executing the Government’s Working Program 2000-2004, in particular regarding the key reforms;
(4) The Stabilisation and Association Agreement signed in October 2001.

Croatia strongly believes that as a country it has reached a stage where both its political will and its performance capacity need a new challenge and deserve a new opportunity. Application and the process that shall follow represent a strong impetus for internal reforms, and the attribution of candidate status will provide Croatia with stronger mechanisms to implement those reforms. The membership application became more the question of physics than the question of politics: the reform process has a certain velocity, and in order to move forward that acceleration needs more space.

Only few months ago there were many cautious voices, saying that we should wait, that time is not yet ripe, that we should enjoy the process rather than worry about the status. Despite cautious voices and defensive outlooks, we unanimously decided to move on.

After 12 years of hard history and tough transitions, citizens of Croatia do not perceive membership in the EU either as an abstract ideal, or an outside pressure – it is simply our strategic reality. Like with any other country that applied or will apply for the membership, it is in our vital interest to be compatible with our neighbours and our wider context. In order to achieve that compatibility we have to reform, and the candidate status offers the most comprehensive set of instruments for that process.

Croatia has also reached a point where it definitely became an important provider of political and economic stability in the region. I strongly believe that our application carries a powerful message for our neighbours to the east. Croatia has made the first step; we proved that a major change is possible. We intend to stay engaged, and offer our good services and assistance to those countries that will follow.

It is no secret that Croatia's economic and social reform processes are proceeding on the fast track. Just as an illustration, the recent European Commission's reports on the macroeconomic performance of the SAP countries quotes that Croatia's GDP counts for the 44% of the region's GDP. In the reform process we have reached the stage where the country needs a major effort in the sophisticated capacity building, and the attention span which can not be found in the current SAP instruments.

We are grateful for the assistance we are receiving from the European Commission through the CARDS program and other means and instruments. Nevertheless, Croatia has an institution building and absorbing capacity that goes beyond the present volume and means of assistance. What we really need are pre-accession programs that can have strong and fast impact on the reform processes.

Last Friday, after I came home from Athens, and after I read media coverage of the news, I knew that we did the right thing: more than 80% of media and public discussions were not jubilous, but deeply introspective. What does this mean for Croatia? How can we increase our capacity to reform? What do we have to do, as a state and as a society, to become an equal member of the Union? You could clearly see the shift from the politics of the integration driven reforms to the meaning of it, and how this application will change our lives forever and for better.

We are fully aware that Croatia still has obligations to fulfil, and that we will have to face a number of challenges. The government has worked hard on ensuring that the return process is free of all legislative and logistical obstacles, and that those who left Croatia during the war can come back. So far about one third of Croatian citizens of Serb origin who left as refugees have returned, and my Government is determined to offer such an opportunity to all its citizens who wish to do so. We are also aware of our obligations to the ICTY, as well as our duty to process war crimes before the domestic courts as well.

I have already told you that, regardless of the status, Croatia is determined to remain engaged in the regional cooperation. We need a stable and prosperous Bosnia and Herzegovina, and stable and prosperous Serbia and Montenegro, not only for stability reasons but also as a great investment and market opportunity. It is in Croatia’s vital national interest that its neighbours are flourishing democratic societies. We have every reason to be fully engaged in assisting our eastern neighbourhood to move closer to the same standards that Croatia wants to be in compliance with.
Croatia is also interested to see Albania and Macedonia (FYROM) progress on their path towards the EU, and achieve quick and tangible progress within the SAP.

Regional confidence building is a long process dependent on political circumstances and decisions. Regional co-operation is a question of interests, but it is also a long term investment into stability and well-being of every citizen. This is why I believe the bilateral nature of the SAA is of crucial importance, because it brings strict common standards, and enables individual capacity building to fit those standards. Standards create predictability, predictability generates trust, trust enables co-operation. When they become stronger individually, the countries in the region will have more capabilities to work together. This is a natural process, and we are well on the way.

I firmly believe that the highest level of regional co-operation is again an issue of mutual interest. And this includes the support and assistance of positive ambitions of your neighbours. Therefore I sincerely hope that the highest support for Croatia’s quest for the EU membership will come from its closest neighbourhood.
Allow me to repeat what I have said many times: the fact that Slovenia and Hungary are becoming members of the EU is one of the best things that will happen to Croatia this year because it will bring the EU border only 20 km from Zagreb. It will have a function of a tidevawe, and we are certain that Croatia’s application will bring the same quality to our eastern neighbours.

What Croatia has to offer to the EU?

It is quite clear what the EU can offer to Croatia, but an equally important question is what Croatia can bring to the EU, can it enrich the Union and how?
First and foremost, we bring our dedication to the values of democratic and prosperous societies, and our belief in the united and strong Europe. As a country in transition, we work hard every day to bring ourselves ever closer to those standards.
Second, we offer a growing economy that can serve as a gateway to the economies of the Western Balkans and beyond. Croatia is situated on a strategic intersection of major paneuropean infrastructure corridors, its economy grows at a steady pace of about 5 to 6 % a year, its inflation figures have been under 3% for years. In the European Commission appraisal report last year it has been described as a foreign capital’s financial safe-haven in the region. We are in the final stages of the privatisation process of our oil and insurance companies, and about 93% of banking sector has already being privatised.
And finally, a strategically important asset that Croatia brings to the Union is its positive political and economic influence in the region. In Croatia there is almost no town that is more than 50 km from the border, any border. It means that we are bound to cooperate closely with our neighbours, those that are in the EU and those wishing to become members of the EU.

What do we expect from the EU?

First, I would like to thank the Greek Presidency for its active and transparent support, and we are sure that Italian Presidency will show the same leadership. We hope that the forthcoming Thessaloniki Summit will bring important amendments to the Union’s policy on the SAP countries, which would offer them more political exposure and inclusion, and more pre-assistance of policy instruments. After the enlargement of 10 there is an extremely valuable expertise in the Commission which can be well used by those countries.
On a more individual basis, our goal is to have avis ready before the summer of 2004, so that we can proceed at the pace that we have envisaged, and be ready for the membership in 2007.

We are also grateful to the Greek Presidency for organising the European Conference in April in Athens, because it will be the very first time, in accordance with the Nice Treaty, that the SAP countries will be invited to participate at a level of heads of States and governments.
Such exposure and inclusion in the decision making process is of great importance, and I would advocate for more of it, especially on issues related to the Common Foreign and Security Policy and Justice and Home Affairs. I believe that we all have a fundamental vested interest in the security of our continent and the world, and that security should be our common responsibility.

That brings me, of course, to the situation with Iraq, and the intensity of the transatlantic dialogue, as well as the intensity of the intra-European dialogue. In the second half of the 20th century European nations, in a partnership with the United States of America, have changed our continent for the better for good. Now the new political and security context is prompting us to re-evaluate the content of that partnership, and define how we want to proceed in the future.
Croatia has itself felt some of the shortcomings, but also many blessings of the transatlantic co-operation. We know that a lot of European crisis management operations in Southeast Europe would not have been possible without a sincere and hard US support and sometimes leadership.
It would be wrong to interpret the position of candidate countries and the potential candidate countries, especially those who signed the recent Vilnius 10 declaration, as a case of split loyalties. We are European nations and our prime interest lies with our Continent. But we strongly believe in a need of a sincere partnership between Europe and the United States.
As much as the transatlantic dialogue and conversation can become uncomfortable, it is very much needed, for the sake of our future in a stable and peaceful world.

Croatia wants to offer its contribution to that future, first by being democratic, stable and prosperous itself, than by assisting those who still need to reach that stage, and finally by remaining a loyal and trustworthy partner to the Union and all other countries who share same values and goals.

Thank you for your attention.