The Middle East, North Africa and the Mediterranean

Throughout 2001 the Middle East situation was dominated by the escalation of the Palestinian-Israeli conflict that began in September 2000 and led to the collapse of the peace negotiations. A series of attacks and counter-attacks during the second half of the year culminated in the murder of the Israeli Minister for Tourism. Towards the end of the year, Palestinian President Yassir Arafat's call for an end to the violence gave renewed hope of a relaxation of the tension, but Israeli Prime Minister Ariel Sharon remained distrusting despite assurances by Foreign Minister Shimon Peres that there was no alternative to President Arafat as a partner in the peace process. Prime Minister Sharon's uncompromising attitude led to repeated domestic political crises. Only towards the end of the year did he reluctantly change his attitude under pressure from the United States, which recognised President Arafat as negotiating partner and officially acknowledged the right of the Palestinian people to their own state. However, a fresh wave of violence with numerous suicide bombings destroyed all hope of a renewal of the political dialogue. Iraq was the only Arab state that did not unequivocally condemn the terrorist attacks in the US on 11 September, and thereby declined to support the US-led anti-terror coalition. This increased the suspicion that Iraq was giving active support to international terrorism.

Iraq continued to refuse to implement Security Council Resolution 1284 and to admit the arms control regime of the UN Monitoring Verification and Inspection Commission (UNMOVIC). The humanitarian situation in the country deteriorated still further as a result of this stubborn attitude and the consequent UN sanctions. Because of the refusal to permit the return of the arms inspectors, the UN "Oil for Food" programme was not improved, but only extended for a further six months. According to UNICEF, every fourth child in the central and southern parts of Iraq suffers from malnutrition, like some 30 per cent of the population as a whole.

Egypt continued to try to mediate in the escalating violence of the Israeli-Palestinian conflict and to maintain a moderate line by the Arab states. Foreign Minister Amre Moussa transferred to the post of Secretary-General of the Arab league. Egypt was badly hit by the decline in tourism after the September 11 outrage. Austrian Federal President Thomas Klestil, Federal Chancellor Wolfgang Schüssel and Minister for Foreign Affairs Benita Ferrero-Waldner all visited Egypt after September 11 in support of measures against international terrorism and for bilateral discussions.

Domestic policies in Iran were dominated by a lively discussion on political reform that culminated in an overwhelming election victory for the reforming President Mohammad Khatami in June. However, despite the government's large parliamentary majority, the conservative elements were able to use the prevailing constitution to hinder progressive legislation and administrative reform. Iran proclaimed its solidarity with the victims of the September 11 attacks. Federal Chancellor Wolfgang Schüssel and Minister for Foreign Affairs Benita Ferrero-Waldner visited Iran. Among the bilateral and international issues discussed was the importance of a Dialogue of Civilisations within the framework of the United Nations.

The situation in Lebanon remained stable apart from isolated border clashes between the Hizbollah resistance movement and the Israeli army. After September 11 the US placed the Hizbollah on the list of terrorist organisations whose funds were to be frozen, but the EU did not follow suit. The negotiations on an association agreement between Lebanon and the EU were successfully concluded. The main internal political themes were the difficult economic and financial situation and the extent of the Syrian presence and influence.

In Jordan, after dissolution of the Lower House of Parliament by King Abdullah II in accordance with the constitution, preparations for general elections have started, which will take place probably in the autumn of 2002.

Syria condemned the terrorist attacks on 11 September and expressed its solidarity with the American people. In the Middle East peace process, Syria adheres to the principle of "land for peace" laid down by the Madrid conference, as well as to the relevant UN resolutions. Another round of negotiations on an EU-Syrian association agreement took place in July. The primary task of the new government formed in December is to step up the pace of economic reform.

Saudi Arabia continued its policy of good neighbourly relations. It supported the US-led anti-terror alliance while having regard to its position in the Arab and Islamic communities.

The President of the United Arab Emirates, Sheikh Zayed Bin Sultan Al Nahayyan, was re-elected for a further five years. The UAE suffered a drop in tourist income and a slowdown in foreign investment as a result of the events of 11 September.

The government of Morocco approved the draft "framework treaty" presented by UN special representative James Baker for a political solution to the Western Sahara conflict. This would give the territory a far-reaching degree of autonomy. Algeria and the POLISARIO rejected it on the ground that it would lead to the integration of Western Sahara into Morocco.

President Abdelaziz Bouteflika of Algeria succeeded in leading his country back onto the international stage. After its successful presidency of the OAU in 1999, Algeria's foreign policy has concentrated on relations with Europe and the US, and in the light of domestic experience over ten years is an important partner in the international campaign against terrorism. Differences of opinion over Western Sahara prevented closer relations with Morocco. The political dialogue with the EU culminated in the conclusion of an association agreement on 19 December. The domestic political situation remained in a state of unrest, and terrorist attacks continued to hinder the process of national reconciliation.

For Libya, the foremost foreign policy aims were the realisation of the projected African Union on EU lines, the resolution of inner-African conflicts and the deepening of relations with Europe. Libya's efforts to overcome its reputation as a supporter of terrorism received a setback with the conviction of Libyans accused of the bombing of a PANAM aircraft over Lockerbie and the La Belle discotheque in Berlin. After the attacks in the US on September 11, Libya expressly condemned these and Islamic fundamentalism generally, and offered the US its support.

The Middle East Peace Process

At the beginning of the year the Israeli-Palestinian conflict was characterised by Palestinian protests, but in the course of the year it manifested itself in armed clashes between Israeli military units and armed Palestinian groups. Escalating extremist attacks on Israeli settlements and towns were answered by stronger reprisals, including the systematic killing of suspected terrorists. By the end of the year the violence had cost over 1,100 deaths (830 Palestinians and 270 Israelis) and more than 20,000 wounded. Mediation by the UN, US and EU brought no lasting success. The decrease in US commitment towards the middle of the year meant that the EU had a more important role to play.

The events of September 11 placed the Palestinian National Authority under stronger pressure to take action against terrorist groups. A new wave of terrorism towards the end of the year resulted in Israel breaking off contact with Palestinian President Arafat and other drastic measures, including repeated military advances into the autonomy zone. These measures aroused controversy even within the Israeli government, and the escalation of violence became an insuperable barrier to a continuation of the peace process.

The terrorist attacks on September 11 led to a reorientation of US Middle East policy, not least because the unresolved conflict there is a fruitful seedbed for international terrorism. Support for the anti-terror alliance came from the Arab states, all of which except Iraq condemned these attacks and offered different degrees of support, while making it clear that they expected more active American help towards resolving the Middle East conflict.

On November 10 US President George Bush announced in the United Nations that the US officially recognised the right of the Palestinians to their own independent state. One week later, Secretary of State Colin Powell promised President Arafat assistance towards the founding of the state, on condition that the violence against Israel stopped. President Arafat issued a call to this effect on December 16, and Israel confirmed that there was a noticeable decline in acts of violence. This, however, remained only temporary. The US proposals for the peace process were strongly supported by the EU and its member states, whose attitude is that there is no alternative to a cease-fire, followed by a political dialogue and peace negotiations. Both parties to the conflict basically accepted the Tenet proposals for a cease-fire and the Mitchell report on peace negotiations. The European Council and Council of Ministers in December issued statements containing proposals for a solution as well as offering the support of the EU in cooperation with the UN, US, Russia and the neighbouring Arab states. It is the view of the EU that the peace agreement must rest on a foundation of Security Council resolutions 242 and 238, which ended the military conflicts in the Middle East in 1967 and 1973. They call for the withdrawal of Israel from occupied territories and guarantee the independence of all the states of the region with the aim of reaching a just, peaceful and lasting solution to the conflict.

It is therefore the view of the European Union that Israel's right to live in peace and security within internationally recognised borders must be respected along with the right of the Palestinians to create an independent and democratic state. The Palestinian National Authority must eradicate the terrorist networks and bring those responsible before the courts of law. The Israeli government must withdraw its military forces from the occupied territories and put an end to the extra-judicial executions. The EU therefore demands that both sides fulfil preconditions for a peace agreement.

The Euro-Mediterranean Partnership (Barcelona Process)

The process inaugurated at the 1995 Barcelona Conference is intended to establish political and technical cooperation between the European Union and its 12 partner countries in the southern and eastern Mediterranean. Libya presently has observer s tatus. This is the first EU initiative that attempts to use integrated political and economic means to establish a common zone of peace, stability and prosperity. Its main features are cooperation on political and security matters, an economic and financial partnership, and deepening social, cultural and humanitarian cooperation.

The political activities cover issues of human rights, international terrorism and migration. The drafting of a Charter for Peace and Stability had to be temporarily interrupted due to the instability in the region, but will be resumed as soon as the situation permits. One of the economic and financial goals is the establishment of a free trade area covering Europe and the Mediterranean by the end of 2010. Most of the partner countries now have association agreements with the EU. An agreement was signed with Egypt in June, and negotiations with Algeria and Lebanon were finalised during the year. Syria is the only remaining partner without an association agreement, but negotiations were to be continued in 2002. The first conference of Euromed ministers of trade took place on 29 June in Brussels.

The social, humanitarian and cultural dimension of the Barcelona Process is steadily gaining in importance. A regional social programme will coordinate training and employment policies and further the development of social security and health systems. The Belgian EU presidency concentrated on the role of women in the national economies of the partners. A seminar on ensuring the equality of men and women in all political areas of the Euromed process was held on 18 October.

An informal conference of foreign ministers attended by representatives all 27 states was held in Brussels on 5/6 November. In the light of the events of 11 September the ministers decided to expand the Dialogue between the Cultures and Civilizations within the Euromed partnership, with a special concentration on youth, education, training and the media. Austrian Minister for Foreign Affairs Benita Ferrero-Waldner stressed that the dialogue between Cultures and Civilizations should not be restricted to the respective elites, but must permeate all social classes with the aid of the media. To this end, an EUfinanced expert seminar was arranged to be held in Vienna on 3 June 2002 with participation from all 27 partner countries.

The bilateral political dialogue with Euromed partners continued during the Swedish EU presidency. Meetings were held with Morocco and Tunisia on questions of social policy, and several initiatives were undertaken to strengthen cooperation in the area of justice and internal affairs. A seminar was held in Uppsala on access to justice, with an emphasis on the development of structures to uphold the rule of law in Euromed partner states.

Organisations for Multilateral Cooperation

The regular summit meeting of the Arab League in Amman on 27/28 March was dominated by the escalation of the Middle East conflict. The meeting accused Israel of violating all the relevant treaties and agreements and stressed the right of the Palestinians to offer resistance. Egyptian Foreign Minister Amre Moussa was appointed Secretary-General of the League and announced his intention of considerably increasing its efficiency. The League expressly condemned the September 11 attacks, but criticized Israel for allegedly exploiting the situation for acts of violence against Palestinians.

The new Secretary-General of the Organisation of the Islamic Conference, Abdelouahed Belkeziz, took up his post in January 2001. The annual conference of the foreign ministers of the 57 OIC States was held in Bamako in Mali. The Palestinian situation was the theme of two emergency sessions in May and December, when the ministers expressed their solidarity with the Palestinian people. A special meeting held on 10 October to arrive at a common position on the terror attacks in the US and their consequences sharply condemned the attacks as well as terrorism in all its forms. The ministers advocated strictly limited military action against those responsible for the September 11 attacks, and warned against an extension of such action against another Arab or Islamic country under the pretext of combating terrorism.

The Gulf Cooperation Council sharply condemned the Israeli action against the Palestinian people and accused Israel of threatening the security of the entire region. Contacts with the European Union covered the themes of combating terrorism, Afghanistan, EU-GCC cooperation, the Middle East peace process, and the situation of Iraq. The 22nd summit conference in December agreed to establish a GCC customs union by 1 January 2003, a common currency by 2010, and a supreme defence council, with a simultaneous expansion of the common military forces to 20,000 personnel. There would be a commitment to come to the aid of any member state that was under attack. The new GCC Secretary-General is Rahman Bin Hamad Al-Attiya of Qatar.