The Congress :

1. recalls its Recommendation 58 (1999) of June 1999 on the crisis in Kosovo and in particular its request to participate, as part of the Council of Europe's contribution, in Working Table I of the Stability Pact ;

2. having regard to the decision to set up a Stability Pact for South-Eastern Europe adopted on 10 June 1999 in Cologne, the Declaration on the Pact adopted at the Sarajevo Summit on 31 July 1999 and the decision of the authorities of the Pact to designate the Council of Europe "sponsor" of the Task Force on Good Governance, including activities in the field of local democracy ;

3. recalls its active participation in the preparation and organisation of the Forum on Decentralisation, Democracy and Stability in South-Eastern Europe that was held in Bucharest on 23 and 24 February 2000 and resulted in the endorsement of an action plan to strengthen local democracy and stability in south-eastern Europe, comprising an inventory of the different projects proposed by the parties concerned, the international organisations and the donors ;

4. emphasises that its contribution to the preparation of that action plan and of the Council of Europe's special Programme on Local Democracy in South-Eastern Europe was made in close co-operation with the Directorate of Co-operation for Local and Regional Democracy (DGI) ;

5. reaffirms its support for the different projects adopted in the action plan (to which further projects have since been added), particularly the Council of Europe's programme and the priorities established since then, in order to achieve the following seven objectives:

– promote political support for the strengthening of local authorities ;

– develop a sound legal framework for local self-government ;

– develop institutional capabilities and responsive leadership at the local level ;

– enhance financial management and service provisions at local level ;

– develop democratic citizenship and intercultural dialogue at local level (with emphasis on the role of Local Democracy Agencies (LDAs)) ;

– promote partnerships between towns and regions ;

– foster transfrontier co-operation (taking into account in particular the conclusions of the 7th Conference of Border Regions (Timisoara, 2 October 1999)),

6. stresses that the projects adopted for priority action will be all the more effective if they are carried out in close co-operation with the local and regional authorities of the countries concerned ;

7. extends its thanks to the governments and international organisations and to the international financial institutions and private foundations that have decided to make financial contributions towards the implementation of certain priority projects in the field of local democracy ;

8. regrets, however, that in spite of the appeal made by its members to the governments as well as to the 12th Conference of Ministers responsible for Local Government (Istanbul, 6 and 7 April 2000), numerous projects contained in the action plan and, consequently, in the Council of Europe's special programme for local democracy have not yet been allocated sufficient funding, for example at the Conference on the Financing of the Stability Pact (Brussels, 29-30 March 2000) and the Donors' co-ordination meeting on 19 April 2000 ;

9. invites the Association of Local Democracy Agencies to continue to extend the LDA network in South-Eastern Europe, in particular in Montenegro, Kosovo and Serbia, and highlights the recent opening of an LDA in Prijedor (Republika Srpska),

10. draws the attention of member governments of the Stability Pact, the European Union, the international organisations and the international financial institutions and foundations concerned to the fact that the CLRAE:

10.1 is convinced that one of the main challenges facing Europe in the coming years will be to restore peace, stability, democracy and the rule of law in South-Eastern Europe ;

10.2 is convinced that the Stability Pact is an appropriate framework for a comprehensive approach to South-Eastern Europe, in which democracy and human rights, economic development and security are interdependent aspects ;

10.3 considers, however, that following the conflicts in former Yugoslavia, reconstruction must not be confined to security, the economy and infrastructure, although these are essential priorities, but must also encompass society, the institutions, restoring the rule of law and, consequently, implementing sound and viable local democratic structures, as security in the long term depends on all these factors ;

10.4 considers that long-term stability in the region cannot be achieved until the Federal Republic of Yugoslavia turns resolutely towards democracy, and that proper support must be given to the democratic forces in the Federal Republic of Yugoslavia, particularly at the local level, and will accordingly continue to support the "Szeged Process" ;

10.5 considers that co-ordination of the projects of the various donors is necessary and that, in the field of "local democracy", the Council of Europe should continue its role of co-ordinator of the Task Force on Good Governance ;

10.6 considers that the projects and programmes concerning local democracy must make due allowance for the particular conditions in each country and be implemented in a fully transparent manner ;

10.7 emphasises the need, under the Stability Pact, to provide direct assistance to the towns and regions of South-Eastern Europe through technical partnerships, for example in respect of the organisation of the institutions, the management of public services and local economic development ;

10.8 is in favour of Moldova participating in the Stability Pact, as requested by the Parliamentary Assembly ;

10.9 stresses the importance of the role played by international and local NGOs, particularly the Local Democracy Agencies (LDAs) and national associations of local and regional authorities, in rebuilding the economy and civil society, and requests that they be given proper financial support ;

10.10 highlights the support it has given to the towns of Montenegro in granting observer status in its Chamber of Local Authorities to the Association of Towns of the Republic of Montenegro ;

11. appeals to governments, international organisations and financial institutions to ensure that the projects presented by the Council of Europe and given priority in the Council of Europe's Programme on local democracy and in the Action Plan receive the funds necessary for their implementation ;

12. invites the special Co-ordinator of the Pact and the Chair of Working Table I on Democratisation and Human Rights, which covers projects on local democracy, to take due account of the possibilities offered by the Congress in the implementation of numerous projects in the Action Plan, and of its availability for on-site monitoring of the implementation of the Stability Pact's activities in the towns and regions of South-Eastern Europe ;

13. invites the European Commission to take into account the possibilities the Congress has of contributing to specific projects under its various programmes and, in particular, the new Community Association and Reconstruction Assistance (Cara) Programme for the Western Balkans, the Phare Programme and the Interreg initiative, particularly in terms of partnerships between towns and regions, Local Democracy Agencies, training and transfrontier co-operation between local and regional authorities ;

14. Recommends that the Committee of Ministers :

i. make available the necessary funds to enable the Council of Europe and, in particular, the Congress, to participate in the implementation of the Stability Pact,

ii. finance the Council of Europe's office in Priština, opened in August 1999, in order that it may continue the essential work it is doing,

iii. continue its policy of maintaining a Council of Europe presence in Podgorica and, when the requisite conditions are met, in Belgrade,

iv. bear in mind in the coming months that the Congress is ready:

participate actively in the implementation of the "Local Democracy" projects of the Council of Europe's special Programme, and to monitor the functioning of local democracy and the practical results of the Action Plan approved by the Bucharest Forum in the towns and regions of south-eastern Europe,

to continue supporting the democratic forces in the Federal Republic of Yugoslavia, particularly at town and municipal level, in order to help the country to develop local democracy, an important asset that may facilitate its eventual reintegration into the international community,

v. make financial provision for the co-ordination of the international observation of the municipal elections scheduled to be held in Kosovo in autumn 2000.