COMMISSION/COUNCIL: PRODI AND GREEK PRESIDENCY CLEARLY STATE SUPPORT FOR BALKAN MEMBERSHIP.

• Position: European Union

EU enlargement, Mr Prodi said, "does not finish" at the April 16 signing ceremony in Athens, and a clear message must be sent that the Balkans belongs in Europe: "A lot of hard work is needed but eventually the Balkans countries can become members of the EU". The EU would need an "strategy of inclusion" based on the countries' individual merits, he added.

On Croatia (which intends to apply for EU membership in the next few weeks - see Section V), Mr Simitis declared that the country is clearly "part of Europe", and as such would entitled to become an EU member - during a procedure lasting "some years" - if they meet the necessary conditions . The same, he said, applied to the other Balkans countries. . Greece is planning a special 'Stabilisation and Association process' Summit on the Balkans on June 21 in Salonika to add impetus to the relationship with the EU.

Turning to the future shape of Europe, Mr Prodi cautioned that there are limits to Europe geographically and politically and that a debate would be needed on where the EU's borders lie, in order to prepare policies of "good neighbourly relations" with the EU's neighbours. He added the Greek and Italian Presidencies constituted an excellent opportunity to define relations with the countries of the south Mediterranean, saying that he would be soon sending a letter on the subject to the respective Prime Ministers Simitis and Berlusconi.

Regarding developments in Iraq, Mr Simitis indicated that he is in permanent contact with his...