The commission proposal starts with the 'working hypothesis' that the former Yogoslav country will join the EU in "January 2012", based on the "overall progress" achieved so far in accession negotiations.

Similar proposals were adopted in the pre-accession phase of the other 12 countries which joined in 2004 and 2007. The document only refers to 2012 and 2013, the last two years of the current seven-year EU budget. From 2014 onwards, Croatia will be part of the next multi-annual financial framework.

During these two years, the bulk of the money - €2.3 billion in so-called structural funds – would go to local and regional projects in infrastructure and small and medium enterprises. Croatian farmers would receive some €680 million, while programmes involving the country's judiciary and police would get €170 million.

Many of the Western Balkan countries have already been exposed to the effects of the crisis. Industrial production and foreign direct investment are slowing down, and most countries are resorting to international loans that will put an additional burden on their balances of payments.

A few weeks ago, the Serbian Central Bank (NBS) governor still hoped that growth could reach 1.5 -2% in 2009. But the government of Serbia was last week forced to negotiate a new agreement with the International Monetary Found (IMF) for a loan worth around €3bn ($3.88bn).

In the face of the persisting economic turmoil, France and Germany's leaders sent a letter to the Czech EU presidency and to the president of the European Commission on Tuesday reiterating what they see as an urgent need to reform the financial system.

"The top priority is building up the new global financial architecture. The European Union must affirm a common position and take the lead in this process," French President Nicolas Sarkozy and German Chancellor Angela Merkel wrote.

President Basescu strongly criticised the Romanian authorities for their inability to absorb funding under EU programmes. On Monday, the country asked the EU and the International Monetary Fund (IMF) for a bailout to save it from a possible financial crisis.

Basescu said that from a total of nine billion euros put at the disposal of Romania by the Union, a total of 5.5 billion has not been used, covering the years 2007, 2008 and 2009. 

Commission adopts multi-annual planning of
financial assistance to the Western Balkans and Turkey

The Commission has completed today the strategic
planning of EU financial support for 2008-2010 to the candidate countries and
potential candidates: Croatia, Turkey, the Former Yugoslav Republic of
Macedonia, Albania, Bosnia and Herzegovina, Montenegro, Serbia, and
Kosovo^[1].
This financial assistance aims to enhance political and economic reform and
development to realise their European perspective. For 2008-2010, the overall
indicative amount of EU financial assistance under the Instrument for
Pre-Accession Assistance (IPA) is €4.471 billion.

On July 14, the European Union's Council of Ministers adopted a new framework for providing aid to candidate countries and would-be candidates.

Called the Instrument for Pre-Accession Assistance (I.P.A.), it aims to consolidate several aid programs, thereby increasing efficiency, and better targeting the funds. It sounds like a sensible idea, but it could be a mixed bag for the official candidate countries — Croatia, Macedonia, and Turkey — as well as candidate-hopefuls Albania, Bosnia, Montenegro, and Serbia.

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• Beitrittspartnerschaften/europäische Partnerschaften
• PHARE
• SAPARD und ISPA
• CARDS
• Finanzhilfen nach Staaten:
• 2007 ein einziges Instrument: IPA (Instrument for Pre-Accession Assistance)