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EU FINANCIAL ASSISTANCE FOR THE WESTERN BALKANS FOR 2005-2006

(Stabilisation and Association Process) Instrument of Assistance:

CARDS (Community Assistance for Reconstruction, Development and Stabilisation)

Period of application: started in 2001

Allocation: 2005: € 649m (incl. € 105m for Croatia)

2006: € 669m (incl. € 140m for Croatia)

Scope:

Albania

Bosnia and Herzegovina

The former Yugoslav Republic of Macedonia (FYROM)

Serbia and Montenegro

Croatia (candidate country status obtained)

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EU's RELATIONS WITH THE WESTERN BALKANS From 1992: PHARE programme: Albania, Bosnia & Herzegovina, the former Yugoslav Republic of Macedonia

(FYROM)

1999: Stabilisation and Association Process (SAP) for five countries of South-Eastern Europe

2000: Feira European Council (June 2000) states that all the SAP countries are "potential candidates"(Croatia and the EU opened SAA negotiations)

2001: New CARDS programme specifically designed for the SAP countries (replaced PHARE and OBNOVA)

2003: The European Commission identified priority reforms required before recommending the opening of negotiations on SAA with Bosnia & Herzegovina.

President Prodi launches SAA negotiations with Albania.

2004: FYROM applied for membership.

Announcement of re-launching the Feasibility Report Serbia and Montenegro on SAA to assess the capacity to negotiate and implement political and economic obligations.

Croatia received candidate status. SAA entered into force February 05.