EC mission head on Serbia report

EC mission head on Serbia report B92: What do you think about what many call the historic outcome of the U.S. election? Lloveras: It is a real clear-cut result, not really unexpected, but certainly marks the new beginning of a new phase. The European Commission has welcomed this outcome and president Barroso talked about the possibilities of a new deal between the EU and the U.S. to turn the economic crisis into something positive. So, I want to be optimistic on that issue, I think that it’s a positive turn of events. B92: The EU Enlargement commissioner Olli Rehn has today submitted the annual European Commission report on the EU integration progress of the West Balkans’ countries and Turkey. Can you tell us briefly something about the results of this report, about the EC’s general picture of Serbia? I believe this is the fifth report you participated, as the Chief of the European Delegation in Belgrade. Lloveras: I remember that I was asked that same question a year ago, and I had a pleasure of being here, and I’d say that the glass is either half empty or half full, depending on the way you look at it. I believe that this year you can say that the glass is half-full, but that there are few drops missing, so generally speaking, the progress has been made. This report draws an objective picture, which means that it is generally independent report with all good things and bad comprised in it. So this report shows that the progress has been made, but not as firm and sustainable – it didn’t go as much as it could, considering Serbia’s potential. B92: So, can you tell us something about the good and bad points in this report. Where did Serbia do best, and, what was the biggest disappointment, from the EC’s perspective? Lloveras: Basically, the report reviews the political, economical and European standards. As far as political criteria are concerned, the report states that the cooperation with the ICTY has been improved. The report understands the significance of the fact that Radovan Karadzic has been arrested and extradited to the Hague this summer. Another significant event is the signing of the Stabilization and Association Agreement (SAA). Serbia’s public structures have shown the capacity to conduct the SAA and all the reforms needed for Serbia’s EU accession. That’s also been positively evaluated; European structures (in Serbia) are in function, a national program of EU integration has also been adopted. The report also reviewed the economic tendencies, and there was a tremendous growth in the economy in the last twelve months, as well as how many European standards had been adopted. Positive developments have also been noted in the field of technicalities, such as issuing of the certificates, meteorology, providing accreditations… That might seem as pure technicalities, but they are very significant, especially regarding Serbia’s export potentials. I also believe that the progress has been achieved in the field of customs. B92: These evaluations sound nice, and they are good news, but what is far more important for Serbia now are the issues Serbian government needs to deal with. In what way do you see these issues? What caused the EC’s disappointment and what’s the worst obstacle? Lloveras: I’d say that the most important problem we’ve noticed in regard with parliament and the government is the halt in their work, because of political discrepancies. We’ve also noted a decline in the adoption of very important laws, which come as a consequence of the blockade in parliament and the government, especially in adopting the laws that are incorporating the EU standards. We also want to see more efficient judicial system which is professional and more independent. Also we have noted the weaknesses in fighting the corruption and organized crime. The Law on Financing of the political parties has been adopted, with much delay, also the law on establishing the Anti-Corruption Agency has been adopted, but, still there is no anti-corruption strategy that could be adequately conducted. So, in brief, these are some of the main weak points we’ve noted in the report. B92: One of the report's most serious remarks is tied to a lack of strong influence of independent agencies, independent regulatory bodies and institutions fighting corruption. In what ways, in your opinion, can Serbia advance in that area? Lloveras: When it comes to that, it is important that these agencies have the adequate funds and to be truly independent, but responsible as well. For that you will need to adopt European set of laws and to conduct them, when it comes to competition, broadcasting laws, then laws regarding the public information access, telecommunications, etc. So far, these agencies have been very weak, some of them even issued a joint statement several months ago complaining that the issue of their funding had not been legally solved. So, they do not have the adequate funds, and it is very important to secure these funds. B92: The values you have been talking about seem to be jealously kept by the EU, at the same time trying to promote them to the non-EU countries, but since you are an economist, I must ask you about one particular event. I suppose that you are familiar with the conclusion of the Anti-Trust Commission, that Delta Holding is suspected of creating a monopol in the Serbian market. The company’s owner Miroslav Miskovic led a Serbian delegation at a summit that he organized in cooperation with Serbia’s Chamber of Commerce. That was the meeting with European officials. Could such a meeting, organized by someone who’s company is under suspicion of being a monopoly, confuse outside observers or Serbians? Lloveras: I cannot comment the single cases in Serbia. What I can say is that the dialogue between the traders and the EC is considered to be very important element. The meeting you mentioned also was also attended by other businessmen as well. The EU saw the meeting as a chance of helping traders who are, in general, an important factor in the entire EU integration process, providing, of course that the rules of the game are respected. That’s also very important – there needs to be a legal framework where that issue could adequately be tackled. B92: Mr. Lloveras, let’s continue with the issue of the visa liberalization for Serbian citizens. Where is Serbia now, in regard to the Schengen Agreement? Certain steps seem to have been taken, and I believe that they are mentioned in the report. I think that Mr. Rehn said today that the initial positioning of the European Commission on that matter will happen in November or December. Lloveras: That’s true. The EC has presented in May one road map, steps Serbia needed to undertake so that the liberalization of the visa regime could actually be enforced. Now we are reviewing all the facts and in the next couple of weeks, we’ll state our position about that. One of the things that has been noted is that the government has begun to enforce the Foreigners Law, the Borders Law and the Personal Information Protection Law. These are all positive steps recently undertaken by your government. These laws need to be enforced and the border protection should be improved. If all of these laws are enforced, it is possible to predict that we’ll reach the liberalization of the visa regime during 2009, just as the EU Enlargement Commissioner Olli Rehn said today. And I believe that this would be good news to the citizens of this country. However, the ball is in Serbia’s field. B92: So, this is not about politics. It seems like the entire thing goes beyond political sphere. Lloveras: Completely, yes. We are talking about highly technical process, and many thing have already been done, such as the issuing of biometric passports, the documents security, the security of the borders. So it is technical process and it is ongoing, and we hope that the Serbian authorities will take all the necessary measures, before the end of next year. B92: I have to say that I’ve noticed that the report noted the cases of the murders of journalists in Serbia, which is something of interest for my colleagues and the profession in general. What’s the conclusion of that part of the report? Lloveras: The report mentions that the independence of the media needs to be improved, that the situation of pressures on journalists, and on civil society and civil sector in general is serious. These are sensitive issues, especially the rights of the ethnic minorities, and some parts of that sector that is attacking them. These things need to be improved. B92: The European Commission received from its delegation to Belgrade an evaluation that the changes in the Serb Radical Party, or to be more precise the metamorphosis of Tomislav Nikolic, has been the biggest innovation in Serbia’s politics. Can it be said that in the eyes of the European Union, Tomislav Nikolic is seen as someone who has, compared with Serbia, improved the most? Lloveras: I think that we have to see what this new party will means in the political scene. We certainly welcome the creation of the new party, which also has European agenda as one of its priorities. I think that it is certainly something positive, but I also think that each new party can only be evaluated based on the results it makes, so it is best to wait before evaluating it. B92: One of the favorite subjects of Serbian politicians are the so-called EU pre-accession funds. I’m aware of the fact that from the five IPA funds, Serbia uses only two. What is our current position? When and under what conditions could Serbia expect more visible or stronger, so to say, economic aid from the EU? Lloveras: That’s right, you have access to that first window that supports the introduction of the European standards and to the second that supports regional cooperation, but you don’t have access to the regional development funds, human resources funds and rural development funds. These three windows will open when Serbia becomes an official EU candidate, even though the entire package has been set and will last at least until 2011. I think that the range of help should be underlined here, because it is very important. And it’s about, for the next three years, approximately EUR 600mn. We at the delegation have taken the responsibility to distribute that help, and we are fully equipped to support Serbian government in these efforts. We are now one of the largest EC delegations worldwide. That should emphasize Serbia’s importance to the European Union, and the importance of the help the Belgrade delegation receives for Serbia. There are more than 140 EC delegations in various countries. B92: Mr. Lloveras, you just said that Serbia will have access to the remaining three programs when it becomes an EU candidate-state, whereas Mr. Rehn, the Enlargement Commissioner said today that, in theory, in laboratory conditions, so to speak, it could happen in 2009, but that two, quite strong conditions had to be fulfilled: cooperation with the Hague Tribunal and the necessary reforms you talked about. It is obvious that Serbia will not move one step further if it does not extradite the two remaining Hague fugitives. Is this good judgment, or maybe there’s a loop hole in the EU’s view of cooperation with the Hague Tribunal? Lloveras: Full cooperation with the Tribunal is the permanent condition. What’s important is that Serbia shows that it is willing to push this cooperation forward. Chief Prosecutor Serge Brammertz will in the next couple of weeks again review the turn of events, and will issue a report which will serve as the base to the EU member-states to estimate the situation. I believe that it’s important that Serbia does everything in its power to reach the final result and to really prove that it is undertaking all the measures needed. B92: However disputable Slobodan Milosevic’s regime had been in the 90s, you are surely aware about Serbian citizen’s frustration of all the conditions Serbia has to fulfill on its EU path. There are two conditions that have been defined long ago – cooperation with the Hague tribunal and the reforms within Serbia. But now, it is speculated that there are demands that Serbia should have constructive approach when it comes to EULEX deployment in Kosovo. Will this be defined as a new condition for Serbia’s progress towards the EU? Lloveras: Let me be clear on that issue. There are no additional conditions; they have been known since the very beginning, and clearly stated and there are no new conditions in connection with Kosovo that would now be added to an agenda of Serbia’s progress towards the EU. You have mentioned EULEX mission. It’s not that EULEX’s not important to the EU, it actually is because the EU is not unanimous on the future Kosovo status, but the EU is unanimous when it comes to Kosovo’s, and for that matter, the stability of the entire region. Economic and social development should benefit to all the citizens of the region, but the rule of law and security need to be helped, and that’s why the EULEX was established. The European Council was unanimous when it came to the EULEX mission. B92: What’s the meaning of “constructive approach?” That question has created a lot of dilemmas within Serbian policy and in the perception of Serbia’s citizens. So, what is this “constructive approach?” Lloveras: It means that Serbia is expected not to put Kosovo as an obstacle for the good regional cooperation, because regional cooperation is the heart of the European integration processes. That’s the basic element of the integration. Regional stability benefits everyone – both the majority and the minority living in Kosovo. Therefore the need for stability and for protection of minorities is underlined in the report on Kosovo’s progress. The report emphasizes the situation in Kosovo when it came to the rule of law, judicial system, stability and the respect of human rights was not so good. So, they are practically at the beginning of the European integration, and EULEX is there to help the police, judicial system and that’s its most important role. So, this is not a condition, but an element of support, that I will repeat, has unanimously been adopted by the EU member-states, because the number of UN troops is reducing. B92: The issues of EULEX in Kosovo and the so-called good neighborly relations are very much connected. You know, neighbors can be countries, cities, other residents. Will this be a condition for Serbia's continued EU integration, that she must recognize Kosovo's independence? And what does the phrase appearing in the EC report – that the Union expects and demands a constructive approach from Serbia toward Kosovo's participation in regional and international forums – in fact mean? Lloveras: That means that Kosovo has European perspective, as well as the entire region, and needs to be included in the international forums. So, in order to make that process easier, Serbia will need to keep constant dialogue with the neighbors in the entire region. No one wants to integrate this region into the EU if the preparation for its integration is disturbed. B92: The region will not disintegrate if Serbia does not recognize Kosovo, Mr. Lloveras, that’s why I’m asking if it’s a condition or if it will become a new condition for continuing Serbia’s EU integration. Lloveras: I repeat what I said. There are no new conditions when it comes to Serbia’s EU accession. B92: Alright. What’s your opinion on the ongoing negotiations between the Serbian government and the European Union over the EULEX status? The United Nations are often mentioned in these negotiations. Can you predict a possible solution? Lloveras: I’m hope a solution will be found. We are European Commission. We do not participate in these negotiations. These are the EU member-states and the European Council, they are included in that dialogue, and, hopefully, they will find solution that would enable the stabilization of the entire region and continuing of the regional cooperation, that I spoke about. B92: I’ll use this last couple of minutes to ask you about your views printed in one of your editorials recently. The government tends to talk little about the darker perspectives of the global financial crisis. You wrote in your article that Serbia can expect certain problems that may not be noticeable at this moment, and as I have interpreted it, you have written that the government does not talk willingly about that issue. What’s your opinion on that? What could happen to Serbia in near future? In what way can this global crisis reflect on the events in Serbia? Lloveras: There was a feeling a few months ago that Serbia was like a boat on the outskirts of the lake and a stone had been thrown to the center and the ripples were sprinkled and were going to the periphery and would reach only the outside boundaries. Now we realize that there are some indications that the international economic crisis is having an impact in Serbia that would hopefully be less than in other countries of the European Union. […] That’s why we emphasize the weaknesses of the economy. There is a huge deficit in the balance of payments. And that’s the vulnerability of the Serbian economy. So, to surmise the situation, I’d say that when you have a storm, because I believe that that’s what’s happening here, you need to anchor the boat – you will need two or three strong ropes, and the strongest comes from the budget discipline in this country. It is very important to create such a budget that would be so firm and solid that it would not only depend on the politics, as the governor of the central bank has said so many times. B92: Did you visit your native country, Spain, and if so, can you tell us something about the ways Spain has been facing these global issues? Lloveras: Perhaps that’s the question you should be asking my colleague, the Spanish ambassador. What I can say is that I am following the news with some concern. Below is the transcript of an interview European Commission delegation head in Serbia Josep Lloveras gave to B92 TV. Guest: Josep Lloveras Journalist: Jugoslav Cosic "Serbia is expected not to put Kosovo as an obstacle for good regional cooperation, because regional cooperation is the heart of the European integration processes. That’s the basic element of the integration."

EC mission head on Serbia report

B92: What do you think about what many call the historic outcome of the U.S. election?

Lloveras: It is a real clear-cut result, not really unexpected, but certainly marks the new beginning of a new phase. The European Commission has welcomed this outcome and president Barroso talked about the possibilities of a new deal between the EU and the U.S. to turn the economic crisis into something positive. So, I want to be optimistic on that issue, I think that it’s a positive turn of events.

B92: The EU Enlargement commissioner Olli Rehn has today submitted the annual European Commission report on the EU integration progress of the West Balkans’ countries and Turkey. Can you tell us briefly something about the results of this report, about the EC’s general picture of Serbia? I believe this is the fifth report you participated, as the Chief of the European Delegation in Belgrade.

Lloveras: I remember that I was asked that same question a year ago, and I had a pleasure of being here, and I’d say that the glass is either half empty or half full, depending on the way you look at it. I believe that this year you can say that the glass is half-full, but that there are few drops missing, so generally speaking, the progress has been made. This report draws an objective picture, which means that it is generally independent report with all good things and bad comprised in it. So this report shows that the progress has been made, but not as firm and sustainable – it didn’t go as much as it could, considering Serbia’s potential.

B92: So, can you tell us something about the good and bad points in this report. Where did Serbia do best, and, what was the biggest disappointment, from the EC’s perspective?

Lloveras: Basically, the report reviews the political, economical and European standards. As far as political criteria are concerned, the report states that the cooperation with the ICTY has been improved. The report understands the significance of the fact that Radovan Karadžić has been arrested and extradited to the Hague this summer. Another significant event is the signing of the Stabilization and Association Agreement (SAA). Serbia’s public structures have shown the capacity to conduct the SAA and all the reforms needed for Serbia’s EU accession.

That’s also been positively evaluated; European structures (in Serbia) are in function, a national program of EU integration has also been adopted. The report also reviewed the economic tendencies, and there was a tremendous growth in the economy in the last twelve months, as well as how many European standards had been adopted. Positive developments have also been noted in the field of technicalities, such as issuing of the certificates, meteorology, providing accreditations…

That might seem as pure technicalities, but they are very significant, especially regarding Serbia’s export potentials. I also believe that the progress has been achieved in the field of customs.

B92: These evaluations sound nice, and they are good news, but what is far more important for Serbia now are the issues Serbian government needs to deal with. In what way do you see these issues? What caused the EC’s disappointment and what’s the worst obstacle?

Lloveras: I’d say that the most important problem we’ve noticed in regard with parliament and the government is the halt in their work, because of political discrepancies. We’ve also noted a decline in the adoption of very important laws, which come as a consequence of the blockade in parliament and the government, especially in adopting the laws that are incorporating the EU standards. We also want to see more efficient judicial system which is professional and more independent.

Also we have noted the weaknesses in fighting the corruption and organized crime. The Law on Financing of the political parties has been adopted, with much delay, also the law on establishing the Anti-Corruption Agency has been adopted, but, still there is no anti-corruption strategy that could be adequately conducted. So, in brief, these are some of the main weak points we’ve noted in the report.

B92: One of the report's most serious remarks is tied to a lack of strong influence of independent agencies, independent regulatory bodies and institutions fighting corruption. In what ways, in your opinion, can Serbia advance in that area?

Lloveras: When it comes to that, it is important that these agencies have the adequate funds and to be truly independent, but responsible as well. For that you will need to adopt European set of laws and to conduct them, when it comes to competition, broadcasting laws, then laws regarding the public information access, telecommunications, etc. So far, these agencies have been very weak, some of them even issued a joint statement several months ago complaining that the issue of their funding had not been legally solved. So, they do not have the adequate funds, and it is very important to secure these funds.

B92: The values you have been talking about seem to be jealously kept by the EU, at the same time trying to promote them to the non-EU countries, but since you are an economist, I must ask you about one particular event. I suppose that you are familiar with the conclusion of the Anti-Trust Commission, that Delta Holding is suspected of creating a monopol in the Serbian market. The company’s owner Miroslav Mišković led a Serbian delegation at a summit that he organized in cooperation with Serbia’s Chamber of Commerce. That was the meeting with European officials. Could such a meeting, organized by someone who’s company is under suspicion of being a monopoly, confuse outside observers or Serbians?

Lloveras: I cannot comment the single cases in Serbia. What I can say is that the dialogue between the traders and the EC is considered to be very important element. The meeting you mentioned also was also attended by other businessmen as well. The EU saw the meeting as a chance of helping traders who are, in general, an important factor in the entire EU integration process, providing, of course that the rules of the game are respected. That’s also very important – there needs to be a legal framework where that issue could adequately be tackled.

B92: Mr. Lloveras, let’s continue with the issue of the visa liberalization for Serbian citizens. Where is Serbia now, in regard to the Schengen Agreement? Certain steps seem to have been taken, and I believe that they are mentioned in the report. I think that Mr. Rehn said today that the initial positioning of the European Commission on that matter will happen in November or December.

Lloveras: That’s true. The EC has presented in May one road map, steps Serbia needed to undertake so that the liberalization of the visa regime could actually be enforced. Now we are reviewing all the facts and in the next couple of weeks, we’ll state our position about that. One of the things that has been noted is that the government has begun to enforce the Foreigners Law, the Borders Law and the Personal Information Protection Law.

These are all positive steps recently undertaken by your government. These laws need to be enforced and the border protection should be improved. If all of these laws are enforced, it is possible to predict that we’ll reach the liberalization of the visa regime during 2009, just as the EU Enlargement Commissioner Olli Rehn said today. And I believe that this would be good news to the citizens of this country. However, the ball is in Serbia’s field.

B92: So, this is not about politics. It seems like the entire thing goes beyond political sphere.

Lloveras: Completely, yes. We are talking about highly technical process, and many thing have already been done, such as the issuing of biometric passports, the documents security, the security of the borders. So it is technical process and it is ongoing, and we hope that the Serbian authorities will take all the necessary measures, before the end of next year.

B92: I have to say that I’ve noticed that the report noted the cases of the murders of journalists in Serbia, which is something of interest for my colleagues and the profession in general. What’s the conclusion of that part of the report?

Lloveras: The report mentions that the independence of the media needs to be improved, that the situation of pressures on journalists, and on civil society and civil sector in general is serious. These are sensitive issues, especially the rights of the ethnic minorities, and some parts of that sector that is attacking them. These things need to be improved.

B92: The European Commission received from its delegation to Belgrade an evaluation that the changes in the Serb Radical Party, or to be more precise the metamorphosis of Tomislav Nikolić, has been the biggest innovation in Serbia’s politics. Can it be said that in the eyes of the European Union, Tomislav Nikolić is seen as someone who has, compared with Serbia, improved the most?

Lloveras: I think that we have to see what this new party will means in the political scene. We certainly welcome the creation of the new party, which also has European agenda as one of its priorities. I think that it is certainly something positive, but I also think that each new party can only be evaluated based on the results it makes, so it is best to wait before evaluating it.

B92: One of the favorite subjects of Serbian politicians are the so-called EU pre-accession funds. I’m aware of the fact that from the five IPA funds, Serbia uses only two. What is our current position? When and under what conditions could Serbia expect more visible or stronger, so to say, economic aid from the EU?

Lloveras: That’s right, you have access to that first window that supports the introduction of the European standards and to the second that supports regional cooperation, but you don’t have access to the regional development funds, human resources funds and rural development funds. These three windows will open when Serbia becomes an official EU candidate, even though the entire package has been set and will last at least until 2011.

I think that the range of help should be underlined here, because it is very important. And it’s about, for the next three years, approximately EUR 600mn. We at the delegation have taken the responsibility to distribute that help, and we are fully equipped to support Serbian government in these efforts. We are now one of the largest EC delegations worldwide. That should emphasize Serbia’s importance to the European Union, and the importance of the help the Belgrade delegation receives for Serbia. There are more than 140 EC delegations in various countries.

B92: Mr. Lloveras, you just said that Serbia will have access to the remaining three programs when it becomes an EU candidate-state, whereas Mr. Rehn, the Enlargement Commissioner said today that, in theory, in laboratory conditions, so to speak, it could happen in 2009, but that two, quite strong conditions had to be fulfilled: cooperation with the Hague Tribunal and the necessary reforms you talked about. It is obvious that Serbia will not move one step further if it does not extradite the two remaining Hague fugitives. Is this good judgment, or maybe there’s a loop hole in the EU’s view of cooperation with the Hague Tribunal?

Lloveras: Full cooperation with the Tribunal is the permanent condition. What’s important is that Serbia shows that it is willing to push this cooperation forward. Chief Prosecutor Serge Brammertz will in the next couple of weeks again review the turn of events, and will issue a report which will serve as the base to the EU member-states to estimate the situation. I believe that it’s important that Serbia does everything in its power to reach the final result and to really prove that it is undertaking all the measures needed.

B92: However disputable Slobodan Milošević’s regime had been in the 90s, you are surely aware about Serbian citizen’s frustration of all the conditions Serbia has to fulfill on its EU path. There are two conditions that have been defined long ago – cooperation with the Hague tribunal and the reforms within Serbia. But now, it is speculated that there are demands that Serbia should have constructive approach when it comes to EULEX deployment in Kosovo. Will this be defined as a new condition for Serbia’s progress towards the EU?

Lloveras: Let me be clear on that issue. There are no additional conditions; they have been known since the very beginning, and clearly stated and there are no new conditions in connection with Kosovo that would now be added to an agenda of Serbia’s progress towards the EU. You have mentioned EULEX mission. It’s not that EULEX’s not important to the EU, it actually is because the EU is not unanimous on the future Kosovo status, but the EU is unanimous when it comes to Kosovo’s, and for that matter, the stability of the entire region. Economic and social development should benefit to all the citizens of the region, but the rule of law and security need to be helped, and that’s why the EULEX was established. The European Council was unanimous when it came to the EULEX mission.

B92: What’s the meaning of “constructive approach?” That question has created a lot of dilemmas within Serbian policy and in the perception of Serbia’s citizens. So, what is this “constructive approach?”

Lloveras: It means that Serbia is expected not to put Kosovo as an obstacle for the good regional cooperation, because regional cooperation is the heart of the European integration processes. That’s the basic element of the integration. Regional stability benefits everyone – both the majority and the minority living in Kosovo. Therefore the need for stability and for protection of minorities is underlined in the report on Kosovo’s progress. The report emphasizes the situation in Kosovo when it came to the rule of law, judicial system, stability and the respect of human rights was not so good.

So, they are practically at the beginning of the European integration, and EULEX is there to help the police, judicial system and that’s its most important role. So, this is not a condition, but an element of support, that I will repeat, has unanimously been adopted by the EU member-states, because the number of UN troops is reducing.

B92: The issues of EULEX in Kosovo and the so-called good neighborly relations are very much connected. You know, neighbors can be countries, cities, other residents. Will this be a condition for Serbia's continued EU integration, that she must recognize Kosovo's independence? And what does the phrase appearing in the EC report – that the Union expects and demands a constructive approach from Serbia toward Kosovo's participation in regional and international forums – in fact mean?

Lloveras: That means that Kosovo has European perspective, as well as the entire region, and needs to be included in the international forums. So, in order to make that process easier, Serbia will need to keep constant dialogue with the neighbors in the entire region. No one wants to integrate this region into the EU if the preparation for its integration is disturbed.

B92: The region will not disintegrate if Serbia does not recognize Kosovo, Mr. Lloveras, that’s why I’m asking if it’s a condition or if it will become a new condition for continuing Serbia’s EU integration.

Lloveras: I repeat what I said. There are no new conditions when it comes to Serbia’s EU accession.

B92: Alright. What’s your opinion on the ongoing negotiations between the Serbian government and the European Union over the EULEX status? The United Nations are often mentioned in these negotiations. Can you predict a possible solution?

Lloveras: I’m hope a solution will be found. We are European Commission. We do not participate in these negotiations. These are the EU member-states and the European Council, they are included in that dialogue, and, hopefully, they will find solution that would enable the stabilization of the entire region and continuing of the regional cooperation, that I spoke about.

B92: I’ll use this last couple of minutes to ask you about your views printed in one of your editorials recently. The government tends to talk little about the darker perspectives of the global financial crisis. You wrote in your article that Serbia can expect certain problems that may not be noticeable at this moment, and as I have interpreted it, you have written that the government does not talk willingly about that issue. What’s your opinion on that? What could happen to Serbia in near future? In what way can this global crisis reflect on the events in Serbia?

Lloveras: There was a feeling a few months ago that Serbia was like a boat on the outskirts of the lake and a stone had been thrown to the center and the ripples were sprinkled and were going to the periphery and would reach only the outside boundaries. Now we realize that there are some indications that the international economic crisis is having an impact in Serbia that would hopefully be less than in other countries of the European Union. […]

That’s why we emphasize the weaknesses of the economy. There is a huge deficit in the balance of payments. And that’s the vulnerability of the Serbian economy. So, to surmise the situation, I’d say that when you have a storm, because I believe that that’s what’s happening here, you need to anchor the boat – you will need two or three strong ropes, and the strongest comes from the budget discipline in this country.

It is very important to create such a budget that would be so firm and solid that it would not only depend on the politics, as the governor of the central bank has said so many times.

B92: Did you visit your native country, Spain, and if so, can you tell us something about the ways Spain has been facing these global issues?

Lloveras: Perhaps that’s the question you should be asking my colleague, the Spanish ambassador. What I can say is that I am following the news with some concern.