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Mr. Francois: I thank the Minister for that partial clarification. I shall leave her to her fate when she appears before the European Scrutiny Committee on Wednesday. Will the Minister confirm one more thing: is it still the Government’s position that full compliance would ordinarily be defined as handing over Ratko Mladic to the ICTY?
Caroline Flint: We are working towards that, and we are pleased by Serbia’s co-operation with the International Criminal Tribunal for the Former Yugoslavia, and with the handing over of certain individuals. We will continue to look at Brammertz’s report. We have said that while we support the implementation of the interim agreement, we retain full co-operation as a condition for the ratification of the stabilisation and association agreement. We would like to see all those brought to justice who need to be.
There are other issues about how fully the Government co-operate with the ICTY. Where co-operation is full and extensive, we need to see how the ICTY responds as matters progress. Over the past six months, there has been a step change in Serbia’s engagement and support, and that has been particularly helped by its aspiration to become part of the EU. Serbia knows that it needs to meet requirements on these matters in order to promote its case.
Mr. Francois: In fairness, it is right to say that under the regime of President Tadic, there has been a noticeable difference in how Serbia has attempted to co-operate and it is right to put that on the record.
I would like to ask the Minister a question about Bosnia. On page 27 of our bundle, the European—
The Chairman: Order. You have gone from Serbia to Bosnia and I do not think that we ought to do that in one question or a supplementary. I will come back to you in a moment.
Mr. Davey: Perhaps I can help the hon. Member for Rayleigh as I have a question on Bosnia. This is one of the most depressing chapters in the bundle. Despite the signing of a civility and association agreement in 2008, there appears to have been a lot of backward sliding regarding the situation in Bosnia and Herzegovina. Will the Minister tell us what the European Union and the UK are doing to try to improve that situation? In the case of Serbia, the EU has acted effectively as a carrot for reform, but that is not working in Bosnia and Herzegovina. How do the EU and the UK Government hope to reverse that rather depressing trend?
Caroline Flint: I share with the hon. Members for Kingston and Surbiton and for Rayleigh their concern about the fragile situation in Bosnia and Herzegovina. Sometimes there is a danger that we will take our eye off the ball and not realise how much more needs to be done. That is why on 12 September, the Foreign Secretary sent a joint letter with the Czech Foreign Minister to all EU colleagues, highlighting the ongoing challenges in Bosnia and Herzegovina and the need for EU engagement in addressing them. I was pleased to meet the High Representative, Miroslav Lajcak, who attended a meeting of the General Affairs and External Relations Council where there was a discussion on that. However, more needs to be done.
Recently, we have heard that Mr Lajcak will be resigning his position—I do not know whether that was the subject of another question—and the international community will need to find a credible successor to continue to assist Bosnia and Herzegovina. One of the big challenges is about how representatives of different ethnic groups within the country can find a vision for the country as a whole and move it forward. We will continue to work towards that.
The Foreign Secretary visited Sarajevo on 10 November and relayed the concerns of the European Union about the pace of reform and the political climate. He urged Bosnian politicians to focus on making the necessary reforms to allow for the closure of the Office of the High Representative and for further EU integration. In 2009 we will continue to focus on that situation, as will the EU.
The Chairman: Order. I will come back to you in a moment, Mr Davey, but it is almost half-past 5. Members of the Committee are clearly enjoying asking questions, so I am perfectly happy to let this run for a further half hour. However, the debate must still finish at 7 pm.
Andrew Mackinlay (Thurrock) (Lab): On a point of order, Mr. Wilshire, I am not a member of the Committee, but I am exercising my right to attend and speak. I have refrained from asking a question because I want to contribute to the substantive debate. It seems to me that Standing Orders surely have to be adhered to with regard to my submission, because they are fixed. [Interruption.] I understand that they can be varied, and beat my breast about it, but although one certainly has the opportunity to ask questions, one must also develop the arguments.
The Chairman: You can still ask a question, Mr. Mackinlay—I was going to call you but you slipped out of the Room. I refer you to Standing Order No. 119(9), which gives me the discretion I have just used.
Caroline Flint: All I can add to my previous answer is that we acknowledge that and are concerned about what is happening in that country. The Government and other representatives continue to urge politicians in Bosnia and Herzegovina to make the necessary compromises for further progress on the reform agenda. Clearly, that has also been backed up by the EU, and it is important constantly to re-examine the situation. The resignation of the High Representative focuses the attention not only of the European Community, but of the wider community on who will take up that post, the task they need to perform and how the EU will work with them, and I am sure that we will continue to discuss that.
We also have the EU Special Representative there, and how that person works with the High Representative is an important part of making progress, but it is not easy, and part of the challenge is to get the politicians in that country to see the wider picture. On the positive side, hopefully the progress made by neighbouring Balkan states, particularly in overcoming ethnic divides, will spur what can be achieved. During my visit to Zagreb, I was pleased to find a conference being held there on the justice system and conciliation processes, and it was open to representatives from across the Balkans. Perhaps that is another way to stimulate reform and communicate its importance for the people of those countries, especially Bosnia and Herzegovina.
Mr. Francois: As the Minister will know, several months ago the international community debated whether to continue with the Office of the High Representative and decided that it should. The Opposition certainly endorse that decision. Since then, however, as the Minister rightly pointed out, Mr. Lajcak has resigned to take up the post of Slovak Foreign Minister, so does she have any information on who is likely to replace him? Whoever that person is, will she guarantee that the Office of the High Representative will continue to have the British Government’s support and that it will continue to be combined with that of the EU representative, as she pointed out it currently is a few minutes ago ?
Caroline Flint: The Government continue to support the Office of the High Representative in those efforts. High representatives have particular powers, which are extremely important. We remain committed to the eventual closure of the Office of the High Representative, but that depends on the achievement of the five conditions and two objectives set by the Peace Implementation Council. Given the current political instability that has already been mentioned, we believe that the decision of the November Peace Implementation Council to maintain the decision was correct. With the resignation, there is an opportunity to provide a new impetus to work in this area. I hope the situation will be resolved quickly, and I am sure that discussions are ongoing about suitable replacements.
Mr. Francois: I thank the Minister for that reassurance on the five objectives and the two conditions. Can she say whether there is any practical possibility of a UK candidate being put forward for that office? There are one or two people who have done similar work in the past.
Caroline Flint: I acknowledge the hon. Gentleman’s point that we have had individuals who have made a very good contribution. In the UK we are able to provide people who have the experience and ability to be extremely positive in very difficult situations, and I am sure that there are many people in the UK who have such experience and ability. These issues are under discussion, and if someone from the UK could play a positive role, and that was agreed, we would welcome it.
Mr. Davey: Is the Minister, along with her EU colleagues, considering the impact of the economic downturn across the world and its impact on the whole enlargement process? Clearly, it can create tensions in existing EU member countries—I think the Minister touched on this with her remarks on the labour market—and also potential candidate countries. It is important that the EU and the Commissioner for Enlargement get a grip on this as soon as possible. I am sure that she will agree that we need to continue the process, but it might be more difficult to sell it to both EU populations and to those of the candidate countries. Will she speculate on that?
Caroline Flint: The No. 1 issue for the EU in 2009 is the added value that it can offer in the worldwide financial crisis. In my journeys to EU member states, and to countries that are not yet member states but are interested, the financial crisis has been part of our discussions, and it is interesting to get a sense of the differences between how countries’ economies are affected, although they are certainly all affected in one way or another. The countries that are looking to join us in the future will be very interested in the position that the EU takes in relation to the G20 summit in London, at which the Czech President will represent the EU.
There is a view that while there are differences between existing member states, there is generally agreement on the measures that need to be taken, first to stimulate economies—it is hard to find a country in the EU that has not looked at that. Secondly, agreement is needed on what sort of transparency is necessary in the future to ensure that people are informed about debt and the way in which risky debts infect the banking systems, so that that does not happen in the future. Thirdly, worldwide reform will be needed, and that will certainly be the subject of discussions at the G20.
Mr. Davey: I thank the Minister for her reply and agree that some of the benefits of the EU trying to tackle this contagion in the world system are evident. It is important that the EU addresses the skills agenda, whether in relation to the environment—the “green” jobs that are so critical for the future—or in other areas. I hope that she, with her European Union colleagues, will do a little more to produce research, statistics and evidence to show that the economics of enlargement are positive and that the process is something from which everyone will gain. There is evidence, for example, that the Polish pound is worth £4 billion a year to the British economy. There is evidence that many British companies believe that enlargement has been beneficial to their success. Given recent debates on migrant labour winning contracts that British workers wished to take part in, it is vital that we get the economic facts to show that, overall, there are big gains for Britain and the rest of the European Union through enlargement.
Caroline Flint: I agree. We should always strive to do better to communicate that.
Mr. Francois: I have one last question for the Minister on Bosnia. On page 44 of our bundle, the Commission observes that foreign direct investment into the Republic Srpska—the entity within Bosnia and Herzegovina—“surged” in 2007. Can the Minister explain why that was, and do the Government have any estimate of what proportion of that surge in investment came from Russia? If she cannot answer that question immediately, perhaps she can seek the information before we end our proceedings.
Caroline Flint: I will endeavour to do the latter.
Mr. Cash: I have one last question that arises from what the hon. Member for Kingston and Surbiton said and refers back to some of my previous points. Can the Minister really justify an enlargement process that is made up of so many weak links? Many of us have doubts about the European Union in relation to unemployment, the Lisbon agenda and stability and growth pact levels of unemployment. Even on her own terms, does she not think that the inclusion of these states, with all the problems that we will no doubt talk about later in the sitting, makes it impossible for the enlargement process to be improved? The problems are inherently difficult, however much one may wish the process well.
 
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