SPEECH BY ROMANO PRODI, PRESIDENT OF THE EUROPEAN COMMISSION, IN YEREVAN

Yerevan, 19th September 2004

SPEECH/04/408

“Distinguished participants, Ladies and gentlemen, Dear friends,

I am delighted to have this opportunity to discuss relations between the European Union and Armenia and the European Commission’s role in this context.

As you know, this is the first visit ever by a European Commission President to the region.

It highlights the European Union’s growing interest in the Southern Caucasus, following on from Commissioner Potocnik’s visit in July and the appointment of the EU Special Representative for the region in 2003.

Our intention is clear: we want to consolidate and expand our relations with Armenia, Azerbaijan and Georgia in order to help ensure prosperity and security for the benefit of us all.

This is particularly important in the context of this year’s enlargement which has brought the European Union closer to you.

I am therefore pleased to see that Armenia’s political leaders have clearly voiced their commitment to closer cooperation with the European Union, in particular under the European Neighbourhood Policy.

Of course, civil society will be crucial in promoting democracy and more generally in driving forward change in the country. I therefore extend my warm greetings to you all as representatives of Armenian society at large.

And I am keen to hear your views too. I want to know what Europe means to you. What you see as the region’s biggest potential and its biggest challenges. And whether the vision I am going to set out is realistic.

To kick off the debate, let me voice a number of thoughts.

First, we are not starting from scratch. Since the break-up of the Soviet Union 13 years ago, the European Union has provided very substantial support for transition in all three countries of the Southern Caucasus. EU assistance alone has amounted to more than one billion euro over this period. From 1991 to 2003, EU assistance to Armenia was over €330 million.

Even more important is the fact that we have concluded Partnership and Cooperation Agreements with all three countries. They provide a solid platform for wide-ranging cooperation in political, economic and other areas.

Clearly, despite all its efforts, the Union has not always achieved the right level of what we call “visibility” — that is, impact on public perception. But we have done the groundwork for further strengthening of our relations.

Upgrading the European Commission’s Yerevan Office to a Delegation will, I hope, also contribute to improving our action on the ground in Armenia.

This brings me to a second important observation: our common agenda for progress towards democracy and market economy is still to be implemented in full. The results of our efforts are patchy.

A lot remains to be done to promote democracy, human rights and the rule of law, to consolidate the foundations for a functioning market economy, and in particular to solve the conflicts in the region,.

These are sometimes wrongly called “frozen”. People are still dying in sporadic fighting at the cease-fire line in the conflict over Nagorno-Karabakh!

We welcome the dialogue between the Presidents of Armenia and Azerbaijan and the meetings between the two Foreign Ministers in recent months.

We hope these talks, with the help of the OSCE Minsk Group co-chairs, can bring progress towards a settlement.

A settlement will mean compromises on all sides. But I am convinced it will also mean great opportunities for all those living in the South Caucasus.

Alongside progress in certain areas of reform, we have also noticed disappointing developments: Elections have fallen short of international standards, corruption has persisted and cooperation within the region has been weak. I am sure you could easily quote other examples of unfulfilled objectives.

This brings me to the third and most important element, which is the European Union’s vision for the future.

Let me try and answer the question: “Where do we go from here?”

I am delighted to see the Armenian authorities are responding strongly and positively to the Union’s vision as set out in its European Neighbourhood Policy. This concept is still new. And it needs the full support of civil society.

I want to outline its main elements in greater detail. I want to show you how the European Neighbourhood Policy can give fresh impetus to cooperation between us. And most importantly, I want you to see it has big potential for Armenia.

Let me explain. On 14 June the Council decided to include Armenia, Azerbaijan and Georgia in the European Neighbourhood Policy. This marks a significant step forward in the Union’s engagement with this region.

The objective of our Neighbourhood Policy is to share the benefits of the enlarged Union with neighbouring countries. We want to increase stability, security and prosperity for both the Union and its neighbours. This Policy is separate from the issue of enlargement.

The Neighbourhood Policy is in particular intended to offer prospects of an increasingly close relationship. The Policy should prevent the emergence of new dividing lines between the enlarged Union and its neighbours.

It covers a broad spectrum of areas and seeks to achieve a significant degree of economic integration and to step up political cooperation. As a long-term objective, it even offers partner countries a stake in the Single Market.

The European Neighbourhood Policy is based on common values and interests. And each relationship will take account of the extent to which these values are effectively shared. Differentiation and joint ownership are key concepts.

Each country will be given the same opportunity to develop its ties with the Union. An Action Plan setting out concrete steps forward would be an important tool. The Union will consider the possibility of preparing Action Plans with the three countries on the basis of their individual merits.

To that end, the Commission will report to the Council on progress each country has made towards political and economic reforms, and in particular the strengthening of democracy, the rule of law, human rights and conflict settlement.

You may ask what this means. How it will affect your lives. What you have to do.

Let me sum up the benefits in one sentence. By promoting democracy, the rule of law, human rights, the market economy and conflict settlement, the European Neighbourhood Policy will help to improve life for Armenians.

Freedom, stability and prosperity have just been empty words to so many of you and this must cease. I think these are great prospects for a country which is still grappling with conflict and misery.

But progress will not come overnight. And my fourth point is this: it will require Armenia to demonstrate it shares values with the Union in practice as well as in principle.

We wish to see credible, sustained commitment to reform. Tangible progress must be made, for example in fighting corruption and strengthening the rule of law more generally.

The Commission has started preparing country reports. By the end of this year we should have made substantial progress in assessing the situation in the three countries of the region.

The reports will play a key role when the Union considers drafting Action Plans with the individual countries. So I strongly recommend Armenia prepare the ground for a positive decision by pushing through a range of concrete reforms in the months ahead.

And I do hope you will give us the benefit of your insights — such as into where can we exploit potential for swift progress. And where can we work together to overcome obstacles. I will be very interested to hear your views!

The Commission is ready to continue mobilising significant European Community resources to support reforms. It recently proposed an ambitious new European Neighbourhood and Partnership Instrument for 2007 on. This should include all the financial assistance covered by the European Neighbourhood Policy as well as all the support currently provided under other instruments such as Tacis.

You will not be surprised that our assistance will be conditional. That is, we will continue to tie the delivery of EC aid very firmly to the implementation of reforms.

Ladies and Gentlemen,

Dear Friends

To conclude, let me come back to the larger picture.

In the recent past, Europe and the Southern Caucasus have gone through dramatic changes.

Europe has never been so prosperous, so secure or so free. The violence of the first half of the 20th Century has given way to a period of peace and stability that is unprecedented in European history. The establishment of the European Union has been central to this development, and this year’s enlargement further expands stability and prosperity throughout Europe.

At the same time, the post-Cold-War environment is one of increasingly open borders. Internal and external aspects of security are inextricably linked. Hence we want to promote a ring of well-governed, peaceful and stable countries to the east and south of the European Union with whom we can enjoy close, cooperative relations.

Creating a true partnership with the Southern Caucasus is a key component of our efforts. Recent events in Russia should also lead us to redouble our efforts to address common challenges together — for instance in the fight against terrorism.

I hope I have shown you the European Neighbourhood Policy opens up new opportunities for Armenia. Opportunities for cooperation in which we have to play our part.

But ultimately, Armenia’s future relationship with the European Union and Armenia’s own future will depend on you yourselves — on your determination to make your country work.

I know this is a tough challenge. But it is worth the price.

Keep taking an active interest in public life! Help to build our common future!

Thank you.”