The momentous changes of the past decade in Central and Southeastern Europe have made a great impact on Greece and on Western Europe in general. The proliferation of new states, the reappearance of territorial and other claims by ethnic minorities, and the continued tension among several neighbouring states, are characteristic elements of the current reality in Southeast Europe.

Furthermore, economic collapse and the heavy cost of economic restructuring, in addition to the upsurge of nationalist and populist feelings, have set the stage for a new approach to the question of security in Europe, which has emerged as the dominant political issue in the region. In Europe the concept of security is treated in its broad sense - that of comprehensive security - which, besides military considerations, includes the protection of human rights, the promotion of democratic reforms, and the development of free market economies.

Such a policy should also aim at eliminating all ethnic cleansing practices, and at dissociating the religious factor from ongoing or future conflicts.

The effects of the Cold War on Europe cannot be overcome while politically and economically unstable areas of the continent remain outside organized international structures. Therefore, the enlargement of the European Union and NATO to the East and South East Europe appears to be a strategic necessity for all parties involved.

Needless to say, the integration process of the Balkan area into European structures is of great strategic importance to Greece, since it has facilitated, to a great extent, the re-establishment of its historic ties with the region and, more importantly, has rendered Greece as the Balkan region's European model for economic and democratic reforms. Moreover, the integration of the countries of Southeast Europe with the rest of the continent will greatly contribute to the stability, well-being and prosperity of Europe as a whole.

Following the tragic wars in the former Yugoslavia, an initiative for high-level co-operation among Balkan states in the form of the South East European Co-operation Process was launched in Sofia in 1996. In this meeting, the countries laid the foundations for regional co-operation with the aim of creating a climate of confidence, good-neighbourliness and stability in the Balkans.

The process which began in Sofia, continued in Thessaloniki in June 1997 (Meeting of the Ministers for Foreign Affairs), in Crete in November 1997, in Istanbul (Meeting of the Ministers for Foreign Affairs) in June 1998, in Antalya in October 1998 and, most recently, in Bucharest (Meeting of the Ministers for Foreign Affairs) in December 1999. It is worth noting that in the latest meeting, Greek Deputy Minister of Foreign Affairs, Grigoris Niotis, announced the allocation of $600 million for investments in Balkan countries within the framework of the Stability Pact.

The countries participating in the South East European Co-operation Process are the following: Albania, Bulgaria, Greece, the Former Yugoslav Republic of Macedonia, Turkey and the Federal Republic of Yugoslavia. Bosnia- Herzegovina and Croatia have an observer status.

The Royaumont Process, which was launched as part of the wider reconciliation process in former Yugoslavia following the Paris/ Dayton Peace Agreements, seeks to contribute towards creating a framework of dialogue and co-operation on a permanent basis among non-governmental organisations and other civil society groups in countries of the region.

The Royaumont Process also includes countries such as Hungary and Slovenia and is supported by Russia and the United States. In an effort to give new impetus to the Process, the EU appointed, in November 1997, Dr P. Roumeliotis, a Greek national, as its Co-ordinator responsible for the promotion of the aims of the Royaumont Initiative. Greece also provides logistical support, such as offices in Athens, secretarial staff and a diplomatic adviser.

Greece is currently financing two programmes in the framework of the Royaumont Process. One is hosted by the Hellenic Foundation for European Foreign Policy (ELIAMEP) and involves the holding of seminars on the Dodecanese island of Halki for the purpose of developing a network of young leaders in Southeast Europe. Greece is financing these seminars for an initial two year period at a total cost of around five hundred thousand (500.000) euros. The second programme, led by the University of Athens, concerns the co-operation of Universities of capitals of all countries of the region in the form of a postgraduate programme on Southeast European Studies. The Greek Government has contributed around five hundred thousand (500.000) euros in funding for the latter programme.

The US-led SECI initiative aims at promoting economic co-operation among the states in the region. Greece is the only EU member participating fully in SECI. Two other EU members, Austria and Italy, participate as supporting states. Working groups hosted by countries of the region are involved in projects such as the interconnectivity of electricity grids, the alleviation of transport bottlenecks and the improvement of the environmental conditions of rivers and lakes.

The working group, hosted by Greece, on border-crossing facilitation has made significant progress. In April 1999, a Memorandum of Understanding on the facilitation of international road transport of goods among the SECI participating countries was signed by the respective Ministers of Transport.

The Black Sea Economic Cooperation is an important initiative which contributes to peace and security in the region by means of multilateral economic co-operation. Apart from Southeast European countries of Greece and Albania (which do not have Black Sea coastlines), it includes all Black Sea littoral states as well as the Caucasian states of Armenia and Azerbaijan. Important to mention the organisations secretarial in Istanbul. Greece is the only participating EU member-state of BSEC and is the host for the organisation's Black Sea Trade and Development Bank in Thessaloniki as well as the International Institute for Black Sea Studies in Athens. Moreover, Greece held BSEC's rotating presidency in 1999.

Greece is also involved in a trilateral co-operation with Bulgaria and Romania. Specifically, in 1995 the Foreign Ministers of Greece, Bulgaria and Romania held a trilateral meeting for the first time in Ioannina in north-western Greece. Since then, the Foreign Ministers have been meeting on an annual basis in Varna, Bulgaria, in Sinaia, Romania and, in April 1998, on the Greek island of Santorini. In 1998, the three countries held their first trilateral summit meeting in Delphi, Greece (October 1998), followed by a second summit meeting in Borovetz, Bulgaria (November 1999). The co-operation of the three countries rests on the conviction that the future of Southeast Europe lies in its integration with the European and Euroatlantic political, economic and security structures.

This trilateral co-operation contributes in an important way to the goal of accession of Bulgaria and Romania to the European Union and NATO. As regards the European Union, Greece, due to her own accession experience, is in a good position to assist other countries of Southeast Europe in preparing for EU membership. This is now occurring on a continuing basis, with seminars, projects, exchange of experts, etc. Simultaneously, Greece plays a vital role within the European Union in convincing EU partners of the need to examine positively the candidacies of Bulgaria and Romania.

Following the end of the Kosovo crisis in June 1999, the European Union decided that the city of Thessaloniki would host the headquarters of the Organisation for the Reconstruction of the Balkans. The Organisation began its operations in September 1999 with an initial funding of 250 million euros by the European Union and with 40-50 employees. The Organisation for the Reconstruction of the Balkans is under the overall responsibility of the European Union while the EU Commission carries the direct oversight function. Thessaloniki hosts the Organisation's main agencies and its activities extend to the countries where reconstruction is taking place.

Thessaloniki is also the host of the secretariat of the Stability Pact (a comprehensive organisation involving all EU member states as well as thirty additional countries including the United States, which has offered to assist in the reconstruction process of the Balkans). The Stability Pact secretariat is made up of a co-ordinating body and three working groups (tables) that consider issues such as, democracy and human rights, economic development and security.

ALBANIA

Relations between Greece and Albania have been characterized by a climate of co-operation, particularly since June 1997. Greece has placed great importance in its relations with Albania, which it considers a determining factor for peace and stability in the Balkans. Hence, in recent years the two countries have been co-operating very closely in many fields.

In addition to active assistance for democratization and economic reform in Albania, Greece is a staunch supporter of Albanian efforts to integrate in the Euro-Atlantic structures. Indeed, Greece is the only EU and NATO country to have a common border with Albania.

The exchange of high-level meetings between the two countries occurs on a regular basis. During the official visit of Greek Prime Minister Costas Simitis to Tirana (October 1997), the two governments signed an agreement for the opening of three new border crossings, a project to be completed by the end of 2001.

During the official visit of Greek President Konstantinos Stephanopoulos to Albania (March 1996), the two sides decided to build a Greek-Albanian educational institution in Tirana that would offer three languages of instruction: Albanian, Greek and English. Two years later, the institution was officially inaugurated by the Greek Minister of Education, Gerasimos Arsenis (November 1998).

An agreement to protect the Greek-Albanian sea frontier and a protocol for economic co-operation were signed during a March 1998 visit to Athens by the Albanian president. The protocol for economic co-operation grants two billion drachmas in relief for the country's budget, as well as eighteen billion drachmas in credit for the funding of developmental projects.

On August 5, 1997, the two Ministries of Defense signed a protocol for military assistance and co-operation. Within the framework of this protocol, the Greek government granted one billion drachmas in financial assistance for the reconstruction of Albanian armed forces. Greece has donated an additional $1.2 million for the modernization of the Tirana military hospital. Moreover, a Greek army unit of 205 soldiers has been deployed to Albania to perform training and co-ordinating activities.

In the period 1997-1999, Greece offered $208 million in assistance for infrastructural projects. These projects involve the public and private sectors, transport, electricity and water supplies, education and health services.

In sum, since 1976, Greece and Albania have signed numerous agreements in different sectors, including: air transport (July 16, 1977); marine trade (January 13, 1991); mutual promotion and protection of investments (August 1, 1991); road transport (December 30, 1997); abolition of double taxation (July 14, 1995); and friendship, good neighbourliness and security (March 21, 1998).

Since 1990, Greece has received successive waves of Albanian immigrants, currently estimated to number around 500,000. Although most are illegal immigrants, they export an estimated $680 million per year in wages to Albania - a considerable contribution to the country's economy.

Finally, the existence of a significant Greek minority in Albania must also be mentioned. According to official Greek sources, some 150,000 ethnic Greeks continue to reside in the southern crisis-stricken part of the country, despite their persecution during the Communist era. Currently, the Greek minority of Albania actively contributes to the country's development and, more importantly, exemplifies the cordial relations between the two countries.

Bosnia-Herzegovina

Greece recognized Bosnia-Herzegovina on April 15, 1992 (together with all other EU members). The two countries established diplomatic relations on November 30, 1995. The frequency of the exchange of visits is indicative of a mutual desire to develop close relations.

Bulgaria

Several of these agreements are currently being renegotiated with the aim of full implementation. An issue of high priority for Greece is the construction of the Burgas-Alexandroupolis oil pipeline. In their meeting in Sofia (November 1999) prime ministers Simitis and Kostov expressed a commitment to overcoming organisational difficulties, thus renewing interest in the project. Also, the two countries are negotiating the details of an agreement that foresees the opening of three new border crossings. Additional agreements have been signed that deal with, among other issues, seasonal employment of workers, re-entry of illegal immigrants and bilateral police co-operation.

Moreover, numerous Greek firms have invested in many sectors of the Bulgarian economy, positioning Greece at the top of the list of foreign investors in the country. In November 1999, during an official visit to Sofia by the former Minister of Macedonia and Thrace Yiannis Magriotis, accompanied by the then Undersecretary of National Economy Rodoula Zisi and a delegation of 45 Greek entrepreneurs, the two sides expressed their strong interest in forming new business liaisons and joint ventures, and paved the way for a future ratification of the bilateral Agreement on Avoidance of Double Taxation.

Finally, in 1999, Greece was the only country whose donation of cereals, valued at nearly 6 million euros, actually reached Bulgaria. Greece has also committed an additional 900,000 euros in aid to Bulgaria.

Croatia

The first official visit (November 1998) of the late Croatian president, Franjo Tudjman, marked a new era in Greek-Croatian relations. During this visit, President Konstantinos Stephanopoulos expressed Greece's support for Croatia's efforts to join the Euro-Atlantic structures. In response, Mr. Tudjman conveyed his appreciation for Greece's "fair and objective stance" during the tragic events of the former Yugoslavia.

President Tudjman also met with Prime Minister Costas Simitis. The two leaders issued a joint declaration calling for the construction of an Ionian-Adriatic road axis and the opening of the Croatian market to Greek products and investments.

Bilateral relations were significantly bolstered following the visit of the former Greek minister of foreign affairs, Theodore Pangalos, to Zagreb in February 1999. Greece and Croatia signed agreements on economic, educational and scientific co-operation, on transportation and on the abolition of visas. The two countries also concluded an agreement on mutual promotion and protection of investments, as well as an agreement on avoidance of double taxation.

The climate of trust and co-operation between the two countries was further reinforced after the signing of co-operation treaties between the foreign affairs ministries (1996) and between the diplomatic academies of those two ministries (November 1999).

Federal Republic of Yugoslavia

Greece recognized the Federal Republic of Yugoslavia on April 25, 1996. From the beginning of the crisis in Yugoslavia, Greece was convinced of the necessity for a resolution respecting international law principles and human and minority rights. Moreover, Greece has defended respect for internationally recognized frontiers and has always urged for negotiations which could offer a political way out of the crisis. In this context she has undertaken efforts and initiatives either bilaterally or on international level (eg EU) since the geographical proximity and the traditional affinity between Greece and the Balkan countries gave impetus to Greece's participation in international efforts toward a peaceful resolution of the conflict.

Greece has close and neighbourly relations with all countries deriving from the former Yugoslavia. Accordingly, the Greek government organized a meeting between the Croatian and Yugoslavian Presidents in Athens in August 1996. This meeting positively contributed to the stabilization process in the Balkans.

Similarly, the official visits of the Greek minister of foreign affairs in September 1996 to Bosnia-Herzegovina, the Federal Republic of Yugoslavia and Croatia were welcomed, since they helped strengthen bilateral relations between Greece and each of these countries.

As for Kosovo, Greece is concerned with the secessionist demands of ethnic Albanians and supports the internationally recognized principle of the inviolability of borders with full respect for the human rights of ethnic communities. Greece firmly supports the application of the UN Security Council Resolution 1244/99 and condemns interethnic violence from whatever quarter. Greece is in favour of multiethnic and multicultural co-existence.

Greece's decision, as a NATO member and a Balkan state, not to participate in the 1999 military operations against Serbia, was designed to bolster the efforts of achieving lasting peace in Yugoslavia. She hopes that the country will return to political normalty and that it will rebound from its current crisis and will be rapidly reintegrated into the international community. Greece's position is also substantial in both the humanitarian sector and the process of reconstruction in Kosovo and Montenegro. Greece has provided substantial humanitarian aid to the Federal Republic of Yugoslavia on a bilateral basis and through the United Nations and other international organisations. For example from 1991 to 1996, Greek humanitarian aid totaled $25 million. Greece also participates in KFOR, the Kosovo peacekeeping mission, in the form of ELDIKO (Greek Force in Kosovo), which is based in Urosevac.

FYROM

In 1993, the UN Security Council recognized the dispute between the Former Yugoslav Republic of Macedonia (FYROM) and Greece regarding the official name of the former, and that FYROM would be accepted into the UN with its provisional name – the Former Yugoslav Republic of Macedonia - in accordance with UN resolution 817. This resolution equally expresses the view that the solution to this dispute is decisive for the stability and good neighbourly relations in the region. Greece and FYROM are committed to arriving at a mutually acceptable resolution of this dispute.

Greece and FYROM signed an Interim Accord in New York, on the 13th of September, 1995. This Accord was signed for the purpose of normalizing Greek-FYROM relations and facilitating the movement of persons and goods between the two countries. Furthermore, on the 13th of October, 1995, a Memorandum was signed for the purpose of establishing liaison offices in Athens and Skopje. Since then, bilateral relations have been developing very rapidly, particularly since 1998.

In 1999, the crisis of Kosovo created serious problems for FYROM. In a two week period alone, over 250,000 ethnic Albanian refugees from Kosovo crossed the Yugoslav border into FYROM. This event caused serious security problems, in addition to massive humanitarian problems, for which the country had not been adequately prepared. Moreover, FYROM faced serious economic difficulties due to the loss of its second largest commercial partner, Yugoslavia.

Throughout the duration of the crisis, Greece offered its whole-hearted support politically, economically, and morally. From the beginning of the Kosovo crisis, the Greek minister, alternate minister, and deputy minister of Foreign Affairs visited Skopje on a regular basis and discussed the developments of the crisis. Moreover, in April 1999, Greece granted FYROM $2 million in humanitarian assistance.

In 1999, the prime ministers of Greece and FYROM met informally in two instances: once in Thessaloniki in May and once in Florina in August. These meetings focused on the expansion of bilateral economic and trade links and on issues related to Balkan peace and stability.

In October 1999, the Foreign Ministers of the two countries, George Papandreou and Alexander Dimitrov, met in Thessaloniki and discussed bilateral relations, the overall situation in the Balkan region and the prospects for further development of co-operation between the two countries, with emphasis on the possibility of opening a FYROM liaison office in Thessaloniki. They also recognised the climate of trust that exists between the two countries which, ultimately, will lead to the solution of the "name" dispute and the complete normalization of relations.

In a visit to FYROM in September 29, 1999, Greece's Transportation and Communications Minister, Tasos Mantelis, inaugurated Olympic Airways flights to FYROM, during a ceremony held in Skopje. Hence, Olympic Airways currently offers regular flights from Athens to Skopje.

ROMANIA

Greece and Romania have historical, cultural, religious, and economic linkages, which reflect a close co-operation, exemplary in the Balkan region.

Greece is convinced of the significant role Romania can play in the stabilization and co-operation process in the Balkans. Therefore, Greece vigorously supports the candidature of Romania to NATO and the European Union. In this context Greece was the first EU country to ratify the association agreement with Romania.

Greece advocated that Romania be included among the countries in the first wave of NATO enlargement. It also encouraged the entry of Romania to the Council of Europe (the treaty was signed on February 2, 1993, and was ratified by the Greek National Assembly on June 18, 1993).

Greece's relations with Romania have become highly productive in the past few years. Visits at all levels take place regularly, resulting in substantial co-operation in both economic and cultural areas.

Slovenia

Greece recognized Slovenia on January 15, 1992 (together with all other EU members). The two countries signed an agreement in July 1992 to establish diplomatic relations. Since then, the two countries have exchanged several high-level visits.

In May 1998, former Greek Minister of Foreign Affairs Theodore Pangalos visited Slovenia. During this visit, a protocol of co-operation between the ministries of foreign affairs was signed. In February 1999, the Greek Deputy Foreign Minister, the late Yannos Kranidiotis, also visited Slovenia. The two countries' ministers of defence have also exchanged visits (the Greek minister visited Maribor in June 1998, and the Slovene minister visited Athens in July 1999).

Slovenian Prime Minister Janez Drnovsek officially visited Athens in October 1998. His contacts focused on Slovenian efforts to join the European Union and NATO and on the common views held by the two countries on issues of international law.

More recently, Greek President Konstantinos Stephanopoulos paid an official visit to Slovenia (November 1999), where he was received in Ljubljana by his Slovenian counterpart, Milan Kucan. The two presidents issued a joint statement supporting the acceleration of the stabilisation and democratisation process in the Balkans, and they pledged their countries' assistance. They also signed an agreement on scientific and technological co-operation. In his visit with Prime Minister Janez Drnovsek, President Stephanopoulos relayed the Greek government's support for Slovenian efforts towards accession in the European Union and NATO.

Greece has steadily supported the accession of Slovenia in the Euro-Atlantic structures and, as an EU and NATO member, has been firmly committed to offering assistance in this process.

Over the past few years, Greece and Slovenia have signed several agreements in the fields of research and education, mutual protection of investments, international road transport and military co-operation. Moreover, the two countries have been negotiating agreements that involve police co-operation, labour relations, tourism, maritime affairs and agriculture.