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<HR SIZE="2"><P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="7" FACE="Palatino">
Chapter 3<FONT COLOR="#1f1a17" FACE="TIMES" SIZE="4"></FONT>
</FONT></P><HR SIZE="2">
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="5" FACE="Palatino">
NATO&#146;s Priorities for the Years Ahead
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
Deputy Secretary General of NATO Sergio Balanzino
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
<BR>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
<BR>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
<FONT COLOR="#000000" FACE="Palatino" SIZE="7">L</FONT>ast year, 1999, was the most challenging year in NATO&#146;s history. We undertook
 the Kosovo campaign and we held our 50th Anniversary Summit in Washington,
 which marked a major step forward in NATO&#146;s ongoing adaptation. Kosovo
 in particular proved a crucial challenge: politically, morally, and militarily.
 But we mastered this challenge by stopping the violence and by creating
 the basis for a self-sustaining peace, which will be managed by the international
 civil organizations.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
Now, at the outset of the 21st century, we must build on this positive
 momentum, which in practical terms means that we must successfully conclude
 the tasks we have set for ourselves in the Balkans and carry forward NATO&#146;s
 process of adaptation. Indeed, this is what we did at our recent Ministerial
 meeting in Florence. There are the six areas which NATO has set as top
 priorities in the years ahead, and I will discuss them within the context
 of the recent Florence decisions.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>SOUTHEASTERN EUROPE</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
It is critical that NATO continue to play its full role in stabilizing
 Bosnia and Kosovo. We must consolidate the peace. We must ensure that this
 region does have a future&#151;that it does not remain a prisoner of the past.
 Clearly, the challenges are enormous. As Bernard Kouchner aptly put it,
 Kosovo suffered 40 years of Communism, 10 years of apartheid, and then
 one year of ethnic cleansing. Given this history, no one should harbor
 any illusions that reconciliation between the ethnic groups can be achieved
 in the short or even the medium term. What counts is that we stay the course:
 at Florence, the Allies left no doubt about their determination to do so.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
Bosnia shows the potential of patient engagement. This country has made
 significant progress since NATO troops were deployed there in 1995, and
 it continues to improve. At Florence, we noted the progress made, but we
 also reminded the leaders of Bosnia and Herzegovina to take on greater
 responsibility for the process of peace implementation. Ultimately, it
 is <I>they</I> who must decide about their country&#146;s place in the wider European
 security climate.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
Ultimately, we must also look beyond Bosnia and Kosovo. We need a comprehensive
 approach for all of Southeastern Europe. The EU&#146;s Stability Pact is a major
 step forward. And NATO, through its Southeast Europe Initiative, is supporting
 the Stability Pact, particularly in the security field. Just as the Marshall
 Plan and NATO kicked off Europe&#146;s recovery after World War II, so must
 economics and security work in tandem to bring lasting stability to Southeastern
 Europe. In Florence, NATO and its Partners brought this point home very
 forcefully by pledging their strong support for the Stability Pact.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
In Florence, Croatia became a member of the Euro-Atlantic Partnership Council
 and the Partnership for Peace. This heartening development should serve
 as an example for other countries in the region. It demonstrates that there
 is no law of nature that condemns Southeastern Europe to permanent instability.
 On the contrary, it <I>is</I> possible to &#147;de-Balkanize&#148; the Balkans.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>DEFENSE CAPABILITIES</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
NATO&#146;s hallmark is military competence. That is what has made the organization
 so effective, for more than 50 years, in preserving the safety of its members
 and in defending their interests and values. We must ensure that all Allies
 have the technology necessary to continue to operate effectively, and to
 operate effectively together. Kosovo has shown how wide the gap between
 U.S. and European capabilities has become. This is not healthy. And this
 is why we are looking at ways to improve our key defense capabilities&#151;to
 express Alliance solidarity not only politically, but also militarily.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
The Defense Capabilities Initiative, which we launched at the Washington
 Summit, is a big step in the right direction. This project will help to
 ensure that all NATO Allies will have the military capabilities they need.
 It will also take steps to improve interoperability among Allied forces.
 In Florence, our Ministers looked at areas in which NATO&#146;s nations still
 need to make progress, and they agreed that where multinational arrangements
 (i.e., common funding) would not suffice, the necessary resources would
 have to be found.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>ESDI</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
We need to rebalance the transatlantic relationship. Economically, the
 European Union is on a par with the United States. Yet in security terms,
 Europe is much lower. This must change. The burdens and responsibilities
 of managing security must be distributed in a more balanced fashion. That
 is why we support the development of a European Security and Defense Identity.
 It will lead to a more mature transatlantic relationship, one more in line
 with the realities of this new century.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
In Florence, we had the opportunity to further clarify NATO&#146;s position
 on ESDI. First, we declared our readiness to enter into discussions with
 the EU on a substantial agenda of common work, including the definition
 of modalities for NATO-EU relations. We will also work on practical arrangements
 for assured EU access to NATO planning capabilities and for EU access to
 NATO&#146;s collective assets. We will work on arrangements for the exchange
 of information. We will intensify work regarding the participation of non-EU
 Allies in EU-led operations. In other words, NATO stands ready to provide
 military planning expertise and to adapt further the Alliance&#146;s defense
 planning system to help enhance European capabilities.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>RUSSIA</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
In Florence, Mr. Ivanov, Russia&#146;s Foreign Minister, joined us for the first
 Ministerial meeting of the NATO-Russia Joint Council in over a year. This
 was an important step forward&#151;a step toward overcoming the artificial restriction
 of our agenda after Kosovo, and a step towards resuming work on the full
 range of cooperative activities agreed to under the Founding Act. In short,
 it was an important push to get beyond the Kosovo syndrome. Because of
 Florence, we are now able to give the Russia-NATO relationship, in a step-by-step
 fashion, the depth and substance befitting it.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>PARTNERSHIP</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
The links between NATO and its Partners must be strengthened further. Kosovo
 has demonstrated in very concrete terms the importance of PFP. Our Partners
 gave us political support during the air campaign and are now with us on
 the ground in implementing the peace. This shows that PFP and EAPC are
 added value for our security. Making these links even firmer will be a
 true investment in our security.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
As I pointed out earlier, Croatia became a new Partner in Florence. But
 we went far beyond ceremonial matters. We also discussed how we can further
 enhance the Partnership for Peace to improve interoperability and to give
 our Partners more say in planning and conducting NATO-led peace-support
 operations. In a similar vein, we discussed ways to use the EAPC as a framework
 to foster regional security cooperation, for example, in Southeastern Europe
 or in the Caucasus. And, last but not least, we also welcomed Algeria as
 a new participant to our Mediterranean Dialogue.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>ENLARGEMENT</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
As we continue to deepen our Partnerships, we must not forget that some
 nations want even more, namely, full membership. Partner countries want
 integration into Europe. At the moment, there are nine nations that want
 to become full members of this Alliance. We must respond to their desire.
 We have said that we will revisit the issue no later than 2002. So, between
 now and then, we must explore the full potential of the Membership Action
 Plan and give all the aspirant countries as much support as possible in
 meeting their reform targets.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
At the Florence Ministerial, NATO Foreign Ministers expressed their satisfaction
 with the nine aspiring countries&#146; strong commitment to the MAP, which was
 reaffirmed in the Vilnius Declaration of May 19, 2000. I see the Vilnius
 Declaration as a signal of support for the course NATO has chosen. It is
 a striking example of how NATO&#146;s open-door commitment is having a beneficial
 effect on European dynamics: it is fostering cooperation all across this
 continent.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>CONCLUDING REMARKS</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
The six priorities noted make up a broad and ambitious agenda which will
 require much hard work to accomplish. But we are confident that we can
 do it. Based on my more than six years&#146; experience, having worked with
 Secretaries General W&#246;rner, Claes, Solana, and now Robertson, I can assure
 you that this Alliance is rock solid. It remains a key instrument for upholding
 our interests and our values in an ever more complex world.
</FONT></P>
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