Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 1-19)

His Excellency Mr Josip Paro

1 MAY 2007

  Q1 Chairman: Ambassador, may I welcome you very warmly. We last saw you here when you accompanied Vladimir Drobnjak in a very interesting session on the accession programme and we are delighted to see you here now to give us an update. May I begin by offering Croatia our condolences on the death of Ivica Racan, your former Prime Minister. He did come here to the House of Lords and a number of us entertained him to tea in the Lords dining room. For him it seemed to be a great occasion because he discovered the joys of English scones with Devonshire cream and strawberry jam and we found him very charming and very interesting. We are aware of what he did for Croatia in his term as Prime Minister in steering it very firmly towards the European Union, to the West, and we are very moved and sorry that he had this awful illness and died much too young. I would like if I may to ask you whether you would like to make an opening statement, Ambassador, on how Croatia is progressing and then we will go on to some of the other questions. We think it would be very helpful if you would like to say a few words on where things stand on your accession.

  His Excellency Mr Josip Paro: Thank you very much, my Lord Chairman. Thank you also for the condolences. The former Prime Minister Racan played an important role, in bringing Croatia closer to the European Union but above all in bringing the European political culture to Croatia. I am sure that nothing will be the same in Croatia after his death. It does not mean that things are going to be worse. I would say that while he has left his party well prepared for the democratic processes he has also left Croatia as his own legacy as a democratic and modern European country. Thank you for paying attention to that sad event. Also, thank you very much for inviting me and for giving me an opportunity to talk about Croatia because somehow, although there are people who believe that it is not a bad thing to be a low-profile accession country, acceding almost under the wire into the European Union, I think it is very important that Croatia remains in the focus of attention of people like you who are part of the decision-forming and decision-making process. In the final analysis, you cannot sneak under the wire into the European Union, because it is a legal act on which every country will be asked about. The good thing is that not every citizen of the European Union will be asked about that; not even French citizens will be asked about that! As you know, Croatia has been exempted from the French constitutional obligation to be subject to the referendum on its Europe Agreement. In general, we are satisfied with the dynamics of the accession process. After a year of, I would say, reluctance or problems for the European Members to define the new terms and methods of the accession process, the process itself has taken off quite rapidly during the last 12 months. The screening process has finished and we will continue to focus this year on opening as many chapters as possible and closing some chapters provisionally. We are now focused on fulfilling the opening benchmarks, and we expect in the next half of this year to be able to work also on fulfilment of the closing benchmarks. As you know, the process is not as easy as it was for the countries of the fifth wave of enlargement. One of the most important novelties is the benchmarking. In other words, in order to open chapters, if the Member States decide, Croatia is expected to fulfil the opening benchmarks. In other words, we have to do what is required to prove that we are ready for opening the negotiations. Also we expect that once the adoption of the acquis on a particular chapter has been done we will be given the closing benchmarks relating to Croatia's capacity and capability to implement the acquis.[1] However, we would especially like the European Commission to be a little bit more expeditious in dealing with our part of the task and homework. Sometimes we feel that the Commission is a little bit slower than we would expect. We would certainly appreciate it very much if the Member States' governments would give an incentive to the Commission, especially DG Enlargement, to enlarge themselves because at present only between ten and 15 people are working on Croatia. Sometimes that creates delays which are not really necessary in our opinion. Formally we expect very soon to be able to open and close what I would call some very easy chapters, ie, foreign security and defence policy, chapter 31. I am informed that we have already been waiting six months for the European Commission to prepare the draft common position, which for such a chapter one would expect not to be really very difficult. Opening and closing those apparently easy chapters would certainly give an important boost to public morale and also to the morale of the vast negotiating team who are doing the work really enthusiastically. Such efforts by the European Union would be especially welcome in the light of the frequently made noises about enlargement fatigue. I have to say that Croatia's accession is evolving in a very difficult and very different political climate from the one ten years ago. We do not feel as warmly welcomed to Europe as was the case with the fifth wave enlargement countries. Also, based on the lessons learned from the fifth wave, our procedures are more cumbersome than was the case before. When you combine the cumbersome procedures with so many questions in the air about the future of Europe, sometimes it is very difficult for the government to engage popular support for otherwise very difficult reforms which the government has to undertake. This is especially true in terms of deregulating the economy while the general public is used to the benefits and rights from the socialist times. In that regard expediting the negotiating process whenever possible would be most welcome. I would certainly like in this place and on this occasion to express my government's gratitude to the British Government for the staunch support to our accession which we have enjoyed in the last two years or so. I am sure that you have been informed that two months ago, during the visit of the Europe Minister, Mr Geoff Hoon, to Croatia, a Strategic Partnership document was launched which is basically an extremely well-focused support for our accession process in the areas where there is the highest need of assistance. These are, I would say at the moment, difficult areas like justice and home affairs, competition and the environment. Also, although it is not directly the subject of the Select Committee, Croatia enjoys very important political and technical support for accession to the North Atlantic Treaty Organisation and we expect this year, at the latest in December, to be invited to become members, which we find a very encouraging sign. I know that NATO and the European Union are not directly related, but at least in terms of public perception I think this is a step forward in joining the family of democratic nations of Europe and in general of the West. There are a couple of problems in relation to our accession that we believe are not directly or in any other way related to the acquis. One is the blocking of chapter 13 on fisheries at the COREPER level by our dear neighbour, Slovenia, which insists on the opening benchmark being related to the implementation of a particular environmental agreement. We would like to see it unblocked, considering that this question is strictly a bilateral issue and is not part of the acquis. Also, I would like to avail myself of this opportunity to bring to your attention the possibility that such bilateral problems can be used or sometimes indeed abused by particular Member States and that should be avoided at all costs. I am not going to get into the details but there are also some other examples of this not really very principled position.


  Q2  Chairman: Can I at this point, Ambassador, say that some of our members will have particular questions on that that they would like to ask you. Thank you very much indeed for that excellent introduction. I know that our colleague, Lord Blackwell, wants to pursue the matter of the relationship of the institutional future of Europe with your own accession, but let me just go back to one thing you have told us which I think is important, and that is the fact that in your view the Commission, with its ten to 15 people, may not be, as it were, applying the pressure that is necessary to be able to move this forward as fast as it could go. As you know, we are on the record and therefore I leave to you, obviously, how you want to respond to this, but is there the impression in Zagreb that there is foot-dragging simply because there are other issues, such as institutional issues, which are not resolved because they do not actually want this process to go faster than seems convenient to them? Can you venture to answer that, but again I say you are on the record, so I leave it to you how you answer it.

  His Excellency Mr Josip Paro: My answer is yes.

  Chairman: Thank you very much. Let us turn to Lord Blackwell.

  Q3  Lord Blackwell: Ambassador, could I pick up this point about the relationship between your accession and constitutional treaties? First, it would be useful to understand how much of a constraint you see that, whether there are ways through or whether you are dependent on some kind of settlement on the treaty changes and how that affects the enlargement timetable. Secondly, I would be interested in your reflections on the various proposals in the constitutional treaty as you see them as a new member in terms of whether there are any there which cause you problems as a new member signing up.

  His Excellency Mr Josip Paro: I am afraid that I am going to disappoint you. Certainly I have my private opinion about the Constitution and the discussions which are going on, but there are two elements which are very important to bear in mind in relation to Croatia's concern. One is that there are already quite secretive discussions about the future of the treaty in which we are not taking part. So we do not know much. It seems, (and now I will speculate a little bit), that there will be no convention, that it is going to be an intergovernmental conference where we are not going to take part because we are not Members. Once we become Members, and that is apparently not going to be before the agreement on institutional or constitutional reforms has been reached, we are going to be in a situation of take it or leave it". So we shall join a European Union that will be agreed upon among the Member States. We do have some ideas on the future of the Commission, on where we would need to stand, but I am sure that the agreement, once it is reached, will be an agreement equally applicable and applied to all members, including the new members. We are encouraged by the work of the German Presidency on institutional reform. Our only concern is whether the European Union will do the job on time, by the end of 2009, which is the projected time for us to wrap up the whole negotiating process. If not, it is obvious that we might get into a situation where we have done all the homework and Europe is not ready for us, which is probably not the worst thing that could happen to us but certainly that would not be very good for Europe or for us. We hope that will not happen and that everything will be on time. We are encouraged by the European Parliament's resolution on Croatia which gives firm support to our accession by 2009 which includes the possibility for Croatia to participate in the next elections for the European Parliament. We will see whether that happens or not, but I think that although we are aware of the real scope of authority of the European Parliament, we believe that the European Parliament's resolution is an important political statement by the representatives of the citizens of Europe. They do not raise the question of enlargement fatigue.[2] Also, it helps the government to develop more successfully its own communication strategy. We can say to our citizens that we are wanted in Europe, which we consider very important.


  Q4  Baroness Thomas of Walliswood: You have explained very clearly what your attitude is towards the two different time schedules. What is Croatia's own date of entry? What is the preferred date? When would you like to complete the process?

  His Excellency Mr Josip Paro: We have, so to speak, an internal European horizon and we intend to close all our chapters if possible, and there is the political will, by the end of 2008. Of course, we know that not everything in that process depends only on our political will. There are certainly daunting tasks ahead of the government and also, as I said, we do not know and we cannot envisage what will be the pace and dynamics of the institutional reforms within the European Union. This is our goodwill and we are doing our best to maintain that dynamic. I do not know whether I should report the technical progress that we have made in the last year but I think what we have done is pretty impressive.

  Q5  Chairman: But presumably, Ambassador, you need to complete the negotiations by the end of 2008 if you are going to be in in time for the European parliamentary elections in 2009.

  His Excellency Mr Josip Paro: Yes.

  Q6  Chairman: That is still cutting it pretty fine.

  His Excellency Mr Josip Paro: It is one and a half years ahead.

  Q7  Chairman: You said a little earlier that you think that by the end of 2009 you will be completed. You need to be in before then if you are going to be able to get your full delegation in, not just as observers but into the European Parliament.

  His Excellency Mr Josip Paro: The basis for our optimism is that we have to fulfil a relatively small number of the opening benchmarks in comparison with the number of chapters that have so far been digested by the European Commission and the Council. We have so far received nine invitations to open the chapters with no opening benchmarks, which is quite encouraging. Also, we expect this year, and the Commission deems that to be possible, to open all the chapters of the accession process.[3]


  Q8  Chairman: That is pretty encouraging.

  His Excellency Mr Josip Paro: Yes. We believe that in 2008 we can show our capability to adopt the acquis and implement it. As I said, this is our internal horizon.

  Chairman: I would like Lord Marlesford to come back briefly to the question of enlargement fatigue which we have touched on to see if we can pin this one down.

  Q9  Lord Marlesford: Ambassador, you have already heard quite a lot on this question of enlargement fatigue but I wonder if you feel able to be at all specific in relation to the attitude to Croatia in other Member countries. Are there particular obstacles in any country that you would like to draw our attention to? Secondly, are the people in Croatia as enthusiastic as they were? Is enthusiasm waxing or waning for membership?

  His Excellency Mr Josip Paro: That is a good question. There is not a single country that causes an obstacle or threat in principle to the Croatian accession to the European Union. There is not any country that is opposed to our accession and our eventual membership.

  Q10  Chairman: And that includes Slovenia?

  His Excellency Mr Josip Paro: That is true of Slovenia. I have to say that Slovenia is one of the most fervent supporters of Croatia's accession. The bilateral problems we have with Slovenia do not prevent Slovenia from being on the other hand extremely helpful in technical terms in assisting us in other areas. We do understand that also Slovenia has, as well as Croatia and the other countries, their own internal politics and policies and sometimes there are internal pressures to do this or that. No, I would say that every single EU Member is favourable to Croatia's accession. Even those Members which sometimes have hiccups about the Turkish accession have no doubts about Croatia. There is a common line to all EU Members and that is that the accession is going to be very demanding and that only the countries which are completely ready for membership will join the European Union. Again, that is the difference when compared with the lucky 12" who joined the European Union before. What was your other question?

  Q11  Lord Marlesford: The other question is, internally in Croatia are there particular sections of the population or interest groups which are beginning to have doubts?

  His Excellency Mr Josip Paro: Of course there are. I would say that, as the timing of the start of our accession is different, as Europe has changed, the general atmosphere and circumstances of our accession are significantly different too. For example, a very important element that was highly motivating for the population and citizens of the eastern European countries that belonged to the Eastern Bloc was the identification moment with the European Union. It is not really as important in Croatia nowadays. I would say that that romanticist element of pro-European policy is much weaker in Croatia than it was in eastern Europe. Sometimes the Euro-scepticism in Europe has a bad echo in Croatia. The support for the European Union however is now steadily above 50 per cent and the closer we get to the European Union and the more successful we are in our negotiations, the more that support will grow.

  Q12  Lord Geddes: Ambassador, could I follow up that last point? In the report of the Committee on Foreign Affairs of the European Parliament in paragraph 7 it states very bluntly that in their opinion there is flagging support for EU accession in Croatia". From what you have just said you seem to disagree with that opinion.

  His Excellency Mr Josip Paro: I repeat that already for almost a year support for the European Union has been above 50 per cent. Two years ago we were at 36 per cent, so the support is growing. I am sure that, for example, next month when we see the polls, the percentage of supporters will be higher, not least for the reason I mentioned before, that is, the resolution by the European Parliament which certainly is going to boost by a couple of per cent support for the European Union. Again, the matter of identity is not as important as the prospect of a better life and a better economic situation for the country after we join that will attract people to the European Union.

  Chairman: As we have mentioned the Foreign Affairs Committee and Hannes Swoboda's report, Lord Tomlinson has a question on this.

  Q13  Lord Tomlinson: Ambassador, can I be fairly direct? You have talked about opening and closing of chapters almost mechanistically and yet, of course, some of those chapters are going to be somewhat more difficult than that.

  His Excellency Mr Josip Paro: Oh, yes.

  Q14  Lord Tomlinson: I would really like to hear from you concerning your response to the somewhat critical report of the Foreign Affairs Committee of the European Parliament where Hannes Swoboda was the rapporteur. They seem to have fairly stringent criticisms concerning anti-corruption measures, the development of transparency in the judicial system, and I ask you to juxtapose those criticisms with the rather ambitious target of having resolved all that by the end of 2008 in order to participate in the 2009 elections. It is barely 21 months away, and when you add to the criticism the remarks that they make concerning the somewhat ambivalent attitude that they see concerning the International Criminal Tribunal for the former Yugoslavia it seems that in this area of judicial co-operation, anti-corruption measures and persuading the citizenry in particular to co-operate with the tribunal there seems to be a lot to do. It is going to make the closing of a chapter, I think, rather difficult. What do you think?

  His Excellency Mr Josip Paro: I fully agree with you. It is going to be difficult, especially closing that chapter. However, this is not something that the Croatian government is sweeping under the carpet because it is unpleasant. On the contrary. But before I come to the judiciary and the problems we face with the weak state of our judiciary—with regard to the ICTY there is nothing outstanding on that particular matter between the Croatian government and the International Criminal Tribunal for the former Yugoslavia. I do not know exactly what you refer to, but there is nothing. I would say that our relationship is almost idyllic; it is just fine.

  Q15  Chairman: Could I just clarify that? What you are saying, Ambassador, is that when General Gotovina was sent to the tribunal and you got a clean bill of health from Carla del Ponte that was not just over him; it was across the board, that that meant that there were not any other outstanding issues with the tribunal on that point?

  His Excellency Mr Josip Paro: No, there are no outstanding issues. As you know, we have four former Croatian generals indicted. They are all available to the court. Three of them are in Zagreb free and every now and then they travel to The Hague, and General Gotovina is in the Scheveningen Prison awaiting trial. Also, a number of trials have been transferred to the Croatian judicial system which will act in accordance with the rules of the ICTY and there is no problem of any kind between us and them. As for the judiciary, corruption and organised crime, these are real problems for the Croatian government and for Croatian society and the reform of the justice system is definitely a top priority of the Croatian government. It is fundamental for the overall internal development of our country, both economically and politically. During the last three years the government has undertaken a very well defined action plan directed to the formal reform of the judicial system which is already giving results. Only two weeks ago our Justice Minister informed the European Parliament of everything that is on the way and results are not bad, I would say. We have inherited an overgrown, very inefficient judicial system which is now being put in order. The consequence is that, for example, we have had an enormous backlog of civic cases, one and a half million. Now that has been reduced significantly, almost by half, due to the reforms undertaken. We have had a decrease in unresolved cases in the last two years of 30 per cent. A cancer of our judicial system, the land registry, which also prevents smooth investment in Croatia, is being resolved. By now we have resolved more than 60 per cent of the unresolved cases and we are catching up with putting the land registry and the property registry in harmony. We believe that by the end of this year everything will be harmonized. So all the documents are going to be accessible to citizens via the internet. The Supreme Court of Croatia is working heavily also on reducing the number of unresolved cases. The Ministry of Justice has been developing an integrated case management system. We have taken a World Bank loan on for that. Financial resources have been taken from the CARDS programme and so on. We have probably the largest number of courts in relation to the number of inhabitants in Europe but still not sufficiently effective. The process of rationalisation of the network of courts is under way. A lot has been done and a lot will be done to make our judiciary effective and also to make our law enforcement effective. As far as corruption is concerned, now it has been tackled like never before. A special government's action plan has been devised and special bodies have been established. Last year the number of people prosecuted for corruption increased by seven per cent and there is an upward trend. What is more important as a consequence of the government's public action and communication strategy, the number of citizens who are reporting corruption cases has grown in one year by 60 per cent, which means that this is not just a political ploy; this is an ongoing process, so I am confident that by 2009 we are going to make it. I have to say that the level of corruption in Croatia is not really abysmal, so I do not think we shall need five years or even three years to tackle that in the right way.

  Q16  Lord Tomlinson: The only point I would make is that there is some criticism in Hannes Swoboda's resolution about the International Criminal Tribunal for the former Yugoslavia. I just suggest you have a read of it because it is tangential criticism; it is there, but if it is not justified then obviously you have got a public relations job to do with the European Parliament.

  His Excellency Mr Josip Paro: Although our co-operation is full we still have the obligation to continue co-operating, so it is an ongoing co-operation. I have not seen or heard about any complaints by The Hague.

  Chairman: Okay, and, of course, it is a question of how long the ICTY stays in business too. It is not over yet, is it? In the five minutes that are left to us I would like to ask Lord Roper whether there is anything he would like to follow up on in relation to bilateral relations.

  Q17  Lord Roper: We have already referred to the bilateral dispute with Slovenia over maritime areas and fishing rights and suggested that this is already proving a block at the COREPER level for the opening of the chapter dealing with fishing. What is the position in terms of those bilateral negotiations and what prospect is there of your coming to a solution? We also have the important point that, of course, in the first half of next year we will have Slovenia as the Presidency of the Council of Ministers and in terms of your completing your chapters by the end of 2008 those are rather an important six months.

  His Excellency Mr Josip Paro: We really do look forward to the Slovenian Presidency. It is always good to have a friend in the Presidency. As far as the maritime delimitation dispute is concerned, we have been negotiating quite intensively for 14 years with Slovenia on that small question and we have been unsuccessful. I myself was participating in those negotiations for a long six years in good faith and the result is—nothing. I believe and my government firmly believes that the time has come, after we have exhausted all the bilateral possibilities, to approach an international arbiter. We have formally informed the government of Slovenia about our willingness to do so. We are ready to start negotiations on the arbiter, negotiations on defining the ways of arbitration and so on, and we are ready also to stand before our parliament and propose a resolution under which Croatia will accept as compulsory the ruling of such arbitration. This is the position. We are still waiting for the government of Slovenia to say, Okay, let us do that". About the reluctance of Slovenia to approach independent international arbitration you should ask the Slovenian government.

  Q18  Lord Harrison: Ambassador, in the light of the earlier comments you made about Minister Hoon's two months ago visit to Croatia for signing the strategic partnership on JHA matters, the environment and competitiveness, are there other items where you think our two countries could combine together, not only for the purpose of promoting the accession of Croatia but also those other parallel activities—academic, cultural and so on, where we might usefully work together?

  His Excellency Mr Josip Paro: Thank you very much for the question. I think there is no area where working with Britain would not be beneficial for Croatia, but I am very much aware that we should also find an area where working with Croatia would be beneficial for Britain. I am sure that, rightly, the British Government has recognised the great potential that Croatia's accession to the European Union and NATO can wake up in our neighbours. As Ambassador I would certainly like to see more direct co-operation between Britain and Croatia with our neighbours, our south-eastern neighbours in the Western Balkans. I deeply believe that our knowledge of the region, our experience of the way our neighbours are only about to undertake and the British knowledge and expertise put together can do a lot of good in the region.

  Q19  Chairman: I am afraid that we will have to close it there because we have another witness coming on the Annual Policy Strategy. I would like to thank you very much indeed, Ambassador, and I take very much to heart, and I am sure the Committee does, your final comments because the accession of Croatia is going to be a very important building block in the creation of a stable Western Balkans region. I think I can speak safely on behalf of all of us in saying that there is no great enlargement fatigue around the table here. There may be some hesitation about some countries but there is not much hesitation about yours and so we wish you all the best and if you can get it done by the end of 2008 that will be a great triumph for you and I am sure it will be of great benefit to the European Union as well. Thank you for answering our questions so frankly. We will send you a transcript of this so that you can correct it and it will be published. We look forward to seeing you again on some future occasion.

  His Excellency Mr Josip Paro: Thank you very much.





1   On reading this transcript, the witness wished to add So far we are coping quite well." Back

2   On reading the transcript, the witness wished to add: It cannot be an argument for slowing down the accession process." Back

3   On reading the transcript, the witness wished to add Much will depend also on the Member States". Back


 
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