Ulla schmidt (Germany)


Reform agendas: democracy, human rights, the rule of law and socio-economic development



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Reform agendas: democracy, human rights, the rule of law and socio-economic development





  1. Progress on bolstering the rule of law, protecting human rights and developing viable economic models is a critical prerequisite for EU and NATO integration of the Western Balkans.




  1. Since the signing of the normalisation agreement with Pristina in 2013, Serbia has been making rapid progress towards its strategic goal of becoming a member of the EU. Prime Minister Aleksandar Vucic has earned a reputation as a staunch pro-European reformer and he enjoys a comfortable majority in the parliament and strong public support. When Serbia entered the active phase of membership negotiations, he decided to call early elections in April 2016, arguing that he wanted to obtain a clear mandate from the people for the reform policy and to complete the negotiations with the EU within the next parliamentary term. The elections took place on 24 April and were assessed by the OSCE as efficient and respecting fundamental freedoms as well as giving voters a variety of choices. At the same time, the OSCE mission criticised the handling of post-election complaints and noted biased media coverage and a blurring of distinction between state and party activities. Although the prime minister’s party won an absolute majority, the voice of the opposition – both pro-European liberal and nationalist – is expected to be more conspicuous in the new parliament. The new cabinet was formed and endorsed by Parliament on 11 August 2016, with key ministers retaining their positions. The coalition between Vucic’s Progressives and the Socialists has been maintained. It should be noted that this Assembly Committee met Mr Vucic in Belgrade a few weeks prior to the elections and was reassured that Serbia would not deviate from the EU membership track despite the rising nationalist anti-Western sentiments among some parts of the population.




  1. According to the European Commission, the Vucic government has been making steady progress in the fields of democracy, governance, the rule of law, the fight against corruption, and the economy. The Parliament is engaged in intensive legislative activity, and the capacities of public administration have been increasing. The Prime Minister launched an initiative to call regular meetings with NGOs in an attempt to improve the relationship between the government and civil society. However, when it comes to governance, there is still room for improvement. For instance, according to the Commission, public service transparency and separation from the political sphere still faces some challenges: almost 60% of senior level civil servants are appointed based on exceptions, instead of following normal recruitment procedures. Prime Minister Vucic also often has to micromanage the implementation of certain policies that normally should be delegated to lower-level officials.




  1. Chapters relating to the rule of law are expected to be among the most difficult ones in the EU membership negotiations. Serbia has made noticeable progress in recent years to improve the judiciary. However, the administration of justice is slow and its independence is not guaranteed. The 2013 National Judiciary Reform System, set up over the past two years, will take five years to implement. Moreover, the rule provides for the random allocation of cases, but this often does not happen. Judges, prosecutors and lawyers are provided with codes of ethics and can be punished with disciplinary procedures, but punishments so far have not proved to be a sufficient deterrent. The judicial system is adequately resourced compared to the EU average and with regard to the GDP, but “resources are not always allocated efficiently”, according to the European Commission. It is important to note that there is an ongoing conflict between the ruling party and the Ombudsman Sasa Jankovic, who issued very critical reports about human rights and political influences over the judiciary in Serbia. The ruling party accused the Ombudsman of pursuing a political agenda and dismissed his reports as politically motivated.




  1. The ruling Progress Party came to power with a strong anti-corruption platform. Law enforcement bodies have targeted a number of high-level officials, including those associated with the ruling party, although the number of actual convictions is low. An independent anti-corruption agency was created to manage investigations into conflicts of interest, political party financing and other corruption-related issues, but it is not adequately funded. Organised crime prosecution improved in 2015, and Serbia’s Minister of Interior, Nebojsa Stefanovic, told members of this Committee that the largest organised crime networks in the country have been largely dismantled.




  1. The media landscape in Serbia is diverse, and the government has launched an initiative to privatise state and municipally-owned media. There are some problems in this field, however, especially with regard to some cases of tension between journalists and the government. In recent months, some government officials and pro-government media made a series of accusations against outlets that receive support from the EU; these outlets were accused of using EU funds to defame Serbia and create chaos in the country. These accusations drew criticism from the Independent Association of Journalists in Serbia. The privatisation of the local media resulted in numerous closures of non-profitable local newspapers and radio stations. Furthermore, the public broadcasting system has been financed by the state for the past two years, while individually paid subscriptions have been suspended; this raises questions about the impartiality of the public broadcasting system. Incidents during the 2010 Pride Parade in Belgrade, when more than 150 people were injured, also show that the authorities and the journalistic community need to do more to promote tolerance in the society. The third Belgrade Pride Parade took place in September 2016 without incidents. It is also noteworthy that the current government includes one openly gay minister. During the recent visit of this Committee to Belgrade, delegates were informed that the media space in Belgrade is being affected by an increased presence of Russian government-sponsored outlets that have different journalistic standards.




  1. In terms of war crimes investigation, Belgrade cooperates with the International Criminal Tribunal for Former Yugoslavia (ICTY) in The Hague on a voluntary basis. According to Serbia’s Law on Cooperation with the ICTY, the country is not obliged to comply with all requests from the tribunal. There is the feeling in Belgrade that the ICTY is biased against Serbia, particularly after the acquittal of some Croat and Kosovar officers. There have been complaints that Serbia’s cooperation with the ICTY has slowed down, particularly in view of Belgrade’s refusal to transfer to The Hague three members of the Radical party who were accused of threatening witnesses in relation to the war crime trial of their party leader Vojislav Seselj. The European Parliament and international human rights watchdogs have criticised Serbia for the slow pace of war crime prosecutions. According to the most recent data made available by the Office of the War Crimes Prosecutor of Serbia, 14 cases are currently at the investigation stage while 19 are at the trial stage. A new wave of mutual accusations of war crimes resulted in a significant deterioration of Belgrade-Zagreb relations in the summer of 2016.




  1. Serbia showed resolve in conducting the necessary structural economic reforms and making painful spending cuts to consolidate the budget. Although the economic growth rate in 2015 was sluggish, the fruits of these responsible economic policies are beginning to show. Unemployment has dropped below 20%, inflation remains low, and GDP and investment growth are expected to pick up (GDP is expected to grow by 2.5% this year). In August 2016, the International Monetary Fund concluded that the results of Serbia’s efforts to achieve fiscal consolidation and advance structural reforms have exceeded expectations. Higher growth rates for Serbia can only be achieved if the pace of reform is sustained and more investors are attracted to Serbia.




  1. While KFOR continues to support the European Union Rule of Law Mission (EULEX) in Kosovo in securing and monitoring the border with Serbia and guaranteeing freedom of movement for the EU-mission in Northern Kosovo, the April 2013 normalisation agreement has also reinvigorated Kosovo’s European integration process and led to the signing of a milestone Stabilisation and Association Agreement (SAA) with the EU. The 2015 European Commission Report highlights some progress in consolidating democratic institutions in Kosovo. After the elections in 2014, a new government continued to implement EU-related reforms, but the overall pace of reform was slow. The lack of progress made it impossible for the EU to consider visa liberalisation for Kosovo citizens until May 2016, when the European Commission officially recommended the abolition of the visa regime for Kosovo citizens. It is now up to the European Parliament and Council of the European Union to come up with specific timeframes for the lifting of visa restrictions. Nevertheless, the current political crisis and polarised political atmosphere in the country remains a serious setback for the reform process. Opposition politicians used tear gas in parliament on several occasions over the past few months, disrupting the process of legislation. Many civil society experts and opposition voices see early elections as the only way out of the crisis. New elections could renew the legitimacy of the Kosovo institutions in the eyes of the citizens.




  1. The independence and efficiency of the judiciary is also a problem in Kosovo. There are some flagrant examples of non-implementation of court rulings, mostly related to ensuring the return of people to their homes. The judicial system and the police have been used against opposition politicians, including members of parliament who have been arrested regardless of their parliamentary immunity. There were allegations that citizens have faced prosecution for expressing their political views. Civil society has repeatedly called on the government not to use the police and the judiciary to achieve their political aims. The role of EULEX in Kosovo was substantially reduced in June 2016, and most of its competences were transferred to Kosovo judiciary authorities. The involvement of EULEX is now only envisaged in exceptional circumstances and following a request from Kosovo officials. The winding down of EULEX represents a major test to the judicial and law enforcement system in Kosovo. There are reasons to be concerned whether Kosovo institutions are up to the task: according to a United Nations Development Program (UNDP) study, courts are identified by the people of Kosovo as the most corrupt institution. On the positive side, Kosovo police enjoys a relatively high degree of trust among the population.




  1. A major challenge for the judiciary is tackling large-scale economic crime. A belated attempt was made to finally reveal to the public all property that has been illegally obtained. However, authorities failed to expose the names of those who are currently in high political positions. The European Parliament resolution on Kosovo expressed concern over the level of corruption and organised crime. Kosovo is implementing its 2013-2017 anti-corruption strategy, but funding is not adequate for the task. To its credit, Pristina has made an attempt to make the recruitment process in its official institutions more transparent and merit-based: in co-operation with the UK embassy in Pristina, a system was introduced where the recruitment process was transferred to an independent private company. The new system is expected to help root out cronyism and nepotism in the Kosovo administration.




  1. In terms of war crimes, Pristina has been under intense pressure to create an EU-backed court since a 2011 Council of Europe report cited alleged crimes committed by the Kosovo Liberation Army (KLA) between 1999 and 2000. The special court is expected to start operating in The Hague in early 2017, once the Dutch Parliament has ratified the decision. The court will “try serious crimes allegedly committed by members of the KLA against ethnic minorities and political opponents”. US lawyer David Schwendiman, appointed as chief prosecutor, has declared his intention to pursue the facts vigorously and to withstand outside pressures. Kosovo leaders deserve credit for taking the difficult decision to accept this tribunal.




  1. Kosovo’s economy remains weak. It grew by 3.8% last year and the new government is trying to balance its accounts, but, according to the European Commission, Kosovo continues to suffer from a weak production base and a lack of international competitiveness. It continues to rely on remittances and a widespread informal economy. The unemployment rate is high, at 35.3%, rising to 61% among young people. The bloated public administration distorts the employment sector. Pristina lacks a serious policy to attract investors. There is a risk that Kosovo will encounter further economic problems as the price of electrical energy is expected to increase.




  1. The outcome of the 2014 elections has created a relatively favourable climate for the leaders of Bosnia and Herzegovina to accelerate the implementation of the European reform agenda. In July 2015, the country adopted a reform agenda aimed at tackling the difficult socio-economic situation and advancing the judicial and public administration reforms. The public sector has been characterised by the European Commission as highly politicised and poor in terms of service delivery. The country also adopted a judicial reform sector strategy as well as a new anti‑corruption strategy and action plan. The EU-supported regular "structured dialogue" talks on justice issues were launched, involving the justice ministers of the BiH central and entity governments. The structured dialogue talks show some commitment by the representatives of BiH and its entities to work together towards judicial reform. The Commission reported “some progress” in many areas of reform throughout 2015, which prompted the government of BiH to submit the membership application.




  1. However, while BiH has made a commendable effort to adopt the necessary legislation, the real challenge now is ensuring the actual implementation of these laws. In this regard, progress is insignificant. The European Commission has identified a number of outstanding problems, including the lack of progress in terms of implementing public administration reform; an overly fragmented policy-making system; continuing problems in the Ombudsman’s Office due to financial and human resource constraints; lack of progress in improving mechanisms for dialogue and cooperation between government and civil society organisations; a judiciary that continues to be affected by a backlog and excessively lengthy as well as politically motivated proceedings;7 continued widespread corruption in respect of which there has been little political commitment for reform and no concrete results as of yet; and effective systems for the protection of human rights, which have been undermined by the uneven implementation of anti-discrimination legislation and the absence of a country-wide anti-discrimination strategy. And on freedom of expression, the Commission even recorded some backsliding, particularly in the RS.




  1. Some progress has been made in strengthening the functioning market economy. In February 2015, BiH adopted an Economic Reform Programme for the 2015-2017 period. According to the European Commission, the programme sets out an over-ambitious fiscal strategy based on reductions in expenditure, but lacks initiatives that would stimulate growth. Overall, the socio-economic situation in BiH remains among the worst in the region. Economic growth is sluggish, and the unemployment rate is at 27.6%, rising to 62.7% among young people. The country relies on foreign financial injections, particularly from the IMF, to make ends meet. In September 2016, the IMF approved a three-year EUR553 million support programme for BiH, but in order to receive all these funds the leadership of the country will have to follow the strict requirements of the IMF, something Sarajevo found difficult to do during the previous agreement with IMF, which expired in July 2015.




  1. Montenegro is moving fast on the NATO and EU integration track. Since May 2016, Montenegro holds the status of “Invitee”, a status it will keep until all 28 Allies ratify the Accession Protocol. With regard to the EU, accession negotiations were launched in 2012, and Montenegro has made good progress on a series of chapters including agriculture, energy, social policy and regional policy. In terms of strengthening democratic institutions, the country needs to do more to reduce political polarisation and clarify electoral procedures.




  1. Deficiencies in terms of the rule of law and the level of corruption have been a major issue of concern in the context of Montenegro’s integration into both NATO and the EU. The significance of this issue is reflected in the fact that, unlike in previous enlargement negotiations, in the case of Montenegro, the most difficult chapters, the chapters on "the judiciary and fundamental rights" and "justice, freedom and security" (Chapters 23 and 24) were opened first, and not last, and they will remain open throughout the process. Montenegro would have to further improve its performance in this area, especially in the fight against organised crime and corruption. A judicial reform strategy and an accompanying action plan are in place, but, according to the European Commission, the full implementation of a new system of recruitment, professional assessment and promotion is now required. In terms of the fight against corruption, Montenegro has achieved some positive results. However, more needs to be done to improve the investigation, prosecution and final conviction process of cases of corruption (in particular high-level corruption) and organised crime (including money laundering schemes).




  1. The country’s economy is recovering and showing impressive growth rates: 4.7% in 2015 and 3.5% (expected) in 2016. However, the high level of state debt is worrying, and unemployment is high at 18%. Overall, according to the EU, Montenegro is moderately prepared to compete within the EU market. The country’s strategic project – the construction of the Bar-Boljare highway – is expected to contribute to economic growth, but the cost of the highway may challenge fiscal sustainability.




  1. In 2015, the former Yugoslav Republic of Macedonia sank into a deep political crisis that has yet to be resolved. The then Prime Minister Gruevski and his ruling conservative party had long been accused by the opposition of authoritarian tendencies, when the situation spiralled out of control with the publication of intercepted conversations between members of the government. The conversations suggested implication in corruption cases, human rights abuses and interference with the judiciary. Anti-government protests erupted throughout the country, resulting in violent clashes between protesters and police. The EU facilitated a political agreement in the summer of 2015 (the Przino agreement), whereby the leaders of the four main parties committed to a transitional government and parliamentary elections in April 2016. Moreover, Prime Minister Gruevski had officially resigned in January 2016.




  1. However, many of the agreement’s provisions remained unimplemented for several months, including the overhaul of the electoral system. Because of the boycott of Parliament by the main opposition party, the adoption of constitutional changes was not feasible. Provisions on decentralisation have not progressed at the expected pace either, as rural communities have not always received the financial support required to carry out their decentralisation tasks. The Special Prosecutor’s Office, led by three women, created in accordance with the Przno agreement and designed to address high-level cases of crime and corruption, has so far launched six major investigations, but it receives little support from other state structures. In April 2016, President Gjorge Ivanov announced the pardoning of 56 individuals already charged, including Gruevski. It was a legally questionable move, since these people had not yet been convicted. This decision has enormously exacerbated the tensions in the country and triggered a new wave of protests, known as the “colourful revolution”. In June 2016, the President was forced to revoke the pardons, but the civil protests continue week by week. The difficulty of resolving the crisis lies in the fact that the protest movement is led by civil society activists, while the negotiation process takes place among the country’s mainstream political parties.




  1. Because of the lack of necessary political reforms, a joint EU-US assessment stated that the country needed more time in order to hold free and fair elections. The ruling majority agreed to postpone the date of the elections from 24 April to 5 June 2016. The June elections were then postponed once again given the lack of progress. After the four main political parties reached an agreement at the end of August, snap parliamentary elections were called for 11 December. They also agreed to form an interim government to oversee preparations for the elections. Crucially, an effort has been made to remove the inaccuracies from the general voter’s list, which was a major issue preventing elections at an earlier stage. The agreement gives an opportunity for the country to finally move on from its protracted political crisis, provided, of course, the interim government is able to ensure free and fair elections.




  1. In terms of other reforms, Skopje has made some progress in improving public administration (which is badly needed given the fact that the public sector has increased from about 80,000 to more than 165,000 over the last ten years, a reflection of how deeply the culture of party/political clientelism is rooted in society). It has adopted the necessary legislation to combat corruption and organised crime, and create a more professional Special Prosecutor’s Office. However, most of these efforts have been undermined by the above-mentioned wiretapping scandal. The European Commission reported that the judicial system has been back sliding in recent months and years. There have been reports of political interference by the executive, especially in certain high-profile cases. The Constitutional Court, long perceived as a truly independent institution, lost this reputation a few years ago when the government appointed new judges. The only positive aspect relating to the judiciary sector is that the country has been genuinely cooperating with the ICTY in past years, and that there are no more pending cases or appeals there.




  1. Civil society in the country is vibrant, constructive and ethnically diverse, but its representatives have complained about the government’s limited commitment to dialogue. In terms of freedom of expression, the legislative framework has been overhauled in recent years. Nevertheless, the freedom of the media remains under threat and the country has continued to backslide in the past year in this area.




  1. Economic reforms were not without some success and the country is moderately prepared to cope with EU market competition, according to the Commission. Skopje has managed to strengthen trade and investment links with the EU. However, the country needs to address the issue of unemployment (28%), in particular among young people, by better aligning education with labour market needs. Poverty levels are also high.




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