• ANNEX I - STATEMENT BY EUROPEAN UNION FINANCE MINISTERS
• ANNEX II - DECLARATION ON KOSOVO
• ANNEX III - DOCUMENTS SUBMITTED TO THE CARDIFF EUROPEAN COUNCIL

ANNEX I

STATEMENT BY EUROPEAN UNION FINANCE MINISTERS

We reviewed prospects for the European economies. We reaffirmed our view that there is increasing evidence of broadly based economic growth and that this will provide the basis for new employment opportunities and greater prosperity. We are determined to provide the conditions for sustained growth by implementing the sound policies set out in the Broad Economic Guidelines. We went on to review recent international economic developments.

We welcome and support the Russian Government's economic reforms, in particular the reforms to strengthen the tax administration and improve tax collection. We are ready to consider further conditional support for Russia as necessary and appropriate. Any such assistance should be provided by the IMF and World Bank, which are the right and proper instruments for that purpose. We intend to support Russia's new 1998 programme at the IMF Board.

We discussed the latest situation in Asia. We noted the data published in Japan on Friday which showed GDP falling by 1.3% in the first quarter of this year. The economic impact of the recently announced fiscal stimulus has still to come through. Further structural reform and the implementation of measures to strengthen the financial system are necessary to restore business and consumer confidence.

We also discussed the latest developments in Indonesia. We welcomed the statements committing the Indonesian government to economic and political reform and stressed the importance of both transparency and its continuing good cooperation with the international financial institutions. We recognised the economic hardship faced by the people of Indonesia and welcomed the humanitarian assistance being provided by the European Community and the Member States individually.

We, as European Union Finance Ministers, will continue to monitor developments closely.

ANNEX II

DECLARATION ON KOSOVO

The European Council condemns in the strongest terms the use of indiscriminate violence by the FRY and the Serbian security forces to impose the Belgrade Government's political terms. No State which uses brutal military repression against its own citizens can expect to find a place in the modern Europe. President Milosevic bears a heavy personal responsibility.

The crisis constitutes a serious threat to regional stability and requires a strong and united international response. The European Council calls for immediate action from President Milosevic in four areas in particular:

• to stop all operations by the security forces affecting the civilian population and to withdraw security units used for civilian repression;
• to enable effective and continuous international monitoring in Kosovo;
• to facilitate the full return to their homes of refugees and displaced persons and unimpeded access for humanitarian organisations; and
• to make rapid progress in the political dialogue with the Kosovo Albanian leadership.

The European Council stresses the importance of President Milosevic taking advantage of his meeting with President Yeltsin in Moscow on 16 June, which it welcomes, to announce progress on the above steps and to commit Belgrade to their implementation in full.

Unless these four steps are taken without delay, a much stronger response, of a qualitatively different order, will be required from the international community to deal with the increased threat to regional peace and security. The European Council welcomed the acceleration of work in international security organisations on a full range of options, including those which may require an authorisation by the UN Security Council under Chapter VII of the UN Charter.

Given the gravity of the situation, the European Council has agreed to supplement measures already being implemented against the FRY and Serbian Governments by taking steps to impose a ban on flights by Yugoslav carriers between the FRY and EU Member States.

A solution to the problem of Kosovo's status can only be found through a vigorous political process. The European Council calls urgently on both sides to return to the negotiating table, with international involvement, to agree confidence-building measures and to define a new status for Kosovo. The European Union remains firmly opposed to independence. It continues to support a special status, including a large degree of autonomy for Kosovo, within the Federal Republic of Yugoslavia.

If an early reduction of tensions is to be achieved, an immediate cessation of violence will be required as well from the Kosovo Albanian side. While commending the commitment of Dr Rugova to a peaceful solution in Kosovo, the European Council calls on the Kosovo Albanian leadership to state clearly its rejection of violent attacks and acts of terrorism. The European Union will play its part in stopping the flow of money and weapons to Kosovo Albanian armed groups. The European Council calls on neighbouring States, whose security is a vital factor for the European Union, to ensure that their territory is not used in support of Kosovo Albanian armed activity.

The European Union has been concerned from the outset at the human cost of the fighting in Kosovo. The European Council agreed to take a comprehensive approach to solving the refugee problem within the region, based on the right of all the refugees from Kosovo to return to their homes in conditions of security. The European Council pledged to continue close cooperation with UNHCR and ICRC, in the first instance to provide immediate assistance from the European Community and from Member States to refugees and displaced persons.

Refugee return will require close international monitoring to generate confidence on the part of those returning that the rule of law has been re-established. The European Council decided that the Union would play its full part in an increased international monitoring effort. The European Council urges Belgrade to allow full access for investigations by international forensic experts to clarify the circumstances in which civilians have died. The FRY Government also has an obligation to allow the International Criminal Tribunal for the Former Yugoslavia (ICTY) to investigate thoroughly any possible violation of international humanitarian law in Kosovo.

The European Council expressed its full support for Felipe Gonzalez as its Special Representative to the FRY and called on President Milosevic to receive him as soon as possible in order to discuss the full range of the FRY's relations with the EU, including the democratisation of the FRY. The European Council also supported the early return of the long-term OSCE missions. The European Council warmly welcomed the outcome of the Parliamentary elections in Montenegro as an endorsement of the reform process pursued by Djukanovic and agreed to continue EU support.

ANNEX III

DOCUMENTS SUBMITTED TO THE CARDIFF EUROPEAN COUNCIL

* Report to the European Council containing the Draft for the Broad Guidelines of the Economic Policies of the Member States and the Community
(9349/98)

* Commission's Recommendation for the Broad Guidelines of the Economic Policies of the Member States and the Community
(8168/98)

* Presidency note on Employment for the Cardiff European Council
(9380/98)

* From Guidelines to action: The National Action Plans for Employment
Commission evaluation
(8611/98)

* Opinion of the Employment and Labour Market Committee on the 1998 National Employment Action Plans
(8733/98 + ADD 1)

* Economic Policy Committee Opinion on the National Employment Action Plans
(8604/98)

* Commission communication on Community Policies in Support of Employment
(9343/98)

* Commission report "Legislate Less to Act Better: The Facts"
(9319/98)

* Commission communication on Risk Capital - A key for job creation in the European Union
(9476/98)

* Interim report from the High Level Expert Group on the Economic and Social Implications of Industrial Change
(9424/98)

* Report from the Competitiveness Advisory Group on capital markets for competitiveness
(9425/98)

* Report of the Business Environment Simplification Task Force (BEST)
(9426/98)

* Agenda 2000 progress report to the European Council (Part One - Introductory summary)
(9000/98)

* Agenda 2000 Council progress report to the European Council (Part Two - Analysis of progress on the main issues)
(9000/98 ADD 1)

* ECOFIN Council conclusions on Agenda 2000
(9325/98)

* Council report to the European Council on activities on drugs and drugs related issues under the UK Presidency, including key elements of a post-1999 EU drugs strategy
(7930/2/98 REV 2)

* Presidency progress report on organised crime to the European Council
(7303/4/98 REV 4)

* Commission communication to the European Council entitled Partnership for Integration: A Strategy for Integrating Environment into EU Policies
(9336/98)

* Report from the European Council to the European Parliament on the progress achieved by the European Union in 1997
(8690/1/98 REV 1)

© European Parliament: 1999