Select Committee on European Scrutiny Third and Fourth Report


PROGRESS TOWARDS ACCESSION BY THE THIRTEEN APPLICANT STATES

(a)
(18442)
9985/97
COM(97) 2001

Commission Opinion on the application for membership of the EU by Hungary.
(b)
(18443)
9986/97
COM(97) 2002

Commission Opinion on the application for membership of the EU by Poland.
(c)
(18444)
9987/97
COM(97) 2003

Commission Opinion on the application for the membership of the EU by Romania.
(d)
(18445)
9988/97
COM(97) 2004

Commission Opinion on the application for the membership of the EU by Slovakia.
(e)
(18446)
9989/97
COM(97) 2005

Commission Opinion on the application for the membership of the EU by Latvia.
(f)
(18447)
9990/97
COM(97) 2006

Commission Opinion on the application for the membership of the EU by Estonia.
(g)
(18448)
9991/97
COM(97) 2007

Commission Opinion on the application for membership of the EU by Lithuania.
(h)
(18449)
9992/97
COM(97) 2008

Commission Opinion on the application for membership of the EU by Bulgaria.
(i)
(18450)
9993/97
COM(97) 2009

Commission Opinion on the application for membership of the EU by Czech Republic.
(j)
(18451)
9994/97
COM(97) 2010

Commission Opinion on the application for membership of the EU by Slovenia.
(k)
(20599)
12053/99
COM(99) 500

Composite Paper — Reports on progress towards accession of each of the candidate countries.
(l)
(20592)
12062/99
COM(99) 503

1999 Commission report on progress towards accession by the Czech Republic.
(m)
(20593)
12064/99
COM(99) 505

1999 Commission report on progress towards accession by Hungary.
(n)
(20594)
12067/99
COM(99) 508

1999 Commission report on progress towards accession by Malta.
(o)
(20595)
12069/99
COM(99) 510

1999 Commission report on progress towards accession by Romania.
(p)
(20596)
12079/99
COM(99) 512

1999 Commission report on progress towards accession by Slovenia.
(q)
(20597)
12068/99
COM(99) 509

1999 Commission report on progress towards accession by Poland.
(r)
(20598)
12066/99
COM(99) 507

1999 Commission report on progress towards accession by Lithuania.
(s)
(20600)
12065/99
COM(99) 506

1999 Commission report on progress towards accession by Latvia.
(t)
(20628)
12060/99
COM(99) 501

1999 Commission report on progress towards accession by Bulgaria.
(u)
(20629)
12061/99
COM(99) 502

1999 Commission report on progress towards accession by Cyprus.
(v)
(20630)
12063/99
COM(99) 504

1999 Commission report on progress towards accession by Estonia.
(w)
(20631)
12154/99
COM(99) 513

1999 Commission report on progress towards accession by Turkey.

(x)
(20724)
12070/99
COM(99) 511

1999 Commission report on progress towards accession by Slovakia.


Legal base:
Deposited in Parliament: 15 November 1999
Department: Foreign and Commonwealth Office
Basis of consideration: EM of 29 November 1999
Previous Committee Report: (a) to (j) HC 155-xix (1997-98), paragraph 5 (4 March 1998)
(k) to (x) none
Discussed in Council: 6 December 1999 General Affairs Council and Helsinki
European Council
Committee's assessment: Politically important
Committee's decision: (all) Cleared


Introduction

  8.1  In July 1997 the Commission initiated the current enlargement process by publishing its Agenda 2000 proposals, which included Opinions on the ten Central and Eastern European candidate countries (documents (a) to (j)). We did not clear these documents, pending further information on the enlargement process. On 24 February, we cleared[34] the first of the Commission's regular reports on the progress made towards accession by the eleven candidate countries, including Cyprus, plus Turkey. There is now a second set of reports (documents (l) to (x)) on those twelve applicants, plus Malta, on which the Commission issued an updated Opinion which we cleared on 28 April 1999[35].

The Commission reports

  8.2  This second set of reports formed the basis of the decisions on enlargement taken by the Helsinki European Council, following extensive discussions amongst the Member States. The composite report which accompanies them (document (k)) sets out the Commission's proposals for the EU's future strategy on enlargement.

  8.3  The Commission found that all of the candidates had made progress, and in some cases very good progress, towards meeting the criteria for EU membership. The Commission's main recommendations to the Council are that the EU should:

  • open negotiations with all the five remaining Central and Eastern European (CEEC) candidates, Bulgaria, Latvia, Lithuania, Romania and Slovakia, and with Malta;

  • confirm Turkey's status as a candidate for membership; and

  • confirm that each country will make progress in negotiations according to its own state of preparedness.

Political criteria

  8.4  The reports conclude that all ten Central and East European applicants, together with Cyprus and Malta, fulfil the Copenhagen political criteria, but there are a number of problems. Most countries need to do more to combat corruption, to improve the functioning of their judicial systems and to protect the interest of their minorities (the Roma in particular). Estonia and Latvia are also urged to reconsider their respective Language Laws. Romania must do more to deal with the crisis in its childcare institutions.

  8.5  The Commission finds that Turkey does not fulfil the Copenhagen criteria. The report identifies serious shortcomings on human rights and the treatment of minorities, and comments adversely on the rôle played by the army in the political life of the country.

Economic criteria

  8.6  According to the Commission, none of the ten Central and East European applicants yet fulfils the Copenhagen economic criteria. However, the Czech Republic, Estonia, Hungary, Latvia, Poland and Slovenia are all considered to be functioning market economies which could cope with competitive pressures and market forces within the EU in the medium term, provided they continue to make progress on structural reform. Slovakia and Lithuania are close to having functioning market economies and should fulfil the criteria next year if progress is maintained. Bulgaria has made good progress, but is still some way off. Romania's economy continues to give cause for concern. Malta and Cyprus both fully meet the Copenhagen economic criteria and are judged to be capable of coping with the competitive pressures and market forces of membership. Turkey needs to implement a consistent reform of underdeveloped sectors and regions, in order to ensure that the whole of the economy has the ability to cope with competitive pressures and market forces within the Union.

Ability to assume membership obligations

  8.7  Progress on the adoption of the acquis communautaire (the corpus of EC law) varies significantly between candidate countries. All have made an effort, with Hungary, Latvia and Bulgaria maintaining a good pace. Slovenia and Slovakia have stepped up their efforts significantly, while Estonia, Lithuania and Romania have "a mixed record, with good progress in certain areas offset by delays in others". The pace of transposition remains sluggish in Poland and the Czech Republic and the Commission comments that the slow pace and piecemeal approach to alignment in these two countries is not consistent with their political aspirations for rapid accession. Cyprus still has to transpose a substantial amount of legislation and Malta's progress is limited, with little or no progress having been made in areas other than free movement of services. It needs to strengthen its administrative capacity in all areas and to set up a number of key institutions. Turkey continues to comply with its obligations under the Customs Union but has to make a continued effort in the areas of competition policy and customs. It needs to modernise its administrative structures.

  8.8  All the candidates have continued to align themselves with the Common Foreign and Security Policy.

  8.9  The Commission concludes that most of the applicant countries should be ready to participate in Economic and Monetary Union (EMU), which is compulsory for all new Member States. However, new Member States are not expected to adopt the single currency immediately upon accession and will be granted a derogation under Article 122 of the Amsterdam Treaty in their Accession Treaties. With the exception of Romania, the CEECs should be in a position, in the medium term, to participate in EMU as non-participants in the euro area, provided that they continue to pursue both macroeconomic stabilisation and structural reform, and further align their legislation to the acquis in this area. Cyprus and Malta should also be in a position to participate in EMU as non-participants in the euro area, but still need to make substantial efforts to align with the acquis. Turkey needs to make a similar effort to align with the acquis and to make progress towards macroeconomic stabilisation. The Commission says that the participation of Romania in the third stage of EMU as non-participant to the euro area could pose serious problems, because of its precarious economic situation.

  8.10  The Commission considers that the candidates are making good progress in adopting the acquis on internal market legislation, which is essential for membership. The detailed areas on which they still need to make progress are listed in the progress reports. In particular, no candidate country yet has a fully functioning system of state aid control. Progress is quite limited in all countries in the areas of environment, financial control, agricultural structural reform, the social and health sector and audio-visual legislation.

  8.11  In Justice and Home Affairs, Lithuania, Estonia, Slovenia, Latvia and Bulgaria have made particularly strong efforts. Other countries need to speed up. It has been difficult to assess progress in Turkey and Malta at this stage.

  8.12  Ensuring high standards of nuclear safety throughout Europe is a top priority for the EU, with particular emphasis on the closure, as early as possible, of the oldest Soviet designed reactors which cannot be upgraded to European safety levels. The Commission says that it has examined this issue with particular care in this year's Regular Reports, at the behest of the European Council in Cologne. It notes that there are non-upgradeable reactors in three candidate countries:

  • Units 1 and 2 at Ignalina in Lithuania;

  • Units 1- 2VI at Bohunice in Slovakia; and

  • Units 1- 4 at Kozloduy in Bulgaria.

  8.13  The Commission adds that it has been involved in an intensive dialogue with each of these countries with the aim of securing agreement on closure dates for these reactors. It has stressed the willingness of the EU and the wider international community to provide financial and technical help to decommission these units. Lithuania and Slovakia have since taken "farsighted and courageous" decisions on closure dates. The Bulgarian Government has not, however, been prepared to commit itself to closing Units 1- 4 at Kozloduy.

Summary country-by country

  8.14  A snapshot summary of the findings on each applicant shows the following:

  • Bulgaria

    Some progress on political criteria, but problems remain on civil and minority rights. Good progress on economic criteria but some way to go yet. Good progress on approximation of legislation, but more attention needs to be paid to implementation and enforcement;
  • Cyprus

    Cyprus fulfils the Copenhagen political and economic criteria;
  • Czech Republic

    Some progress, but limited by uneven quality of draft legislation, length of parliamentary procedures, and minority status of government;
  • Estonia

    Language Law is a major step backwards. Good progress on economic criteria. Steady progress on alignment of legislation to the acquis. Administrative capacity needs building up;
  • Hungary

    Need to address concerns about Roma rights and about corruption. Good progress on economic criteria and on alignment of legislation with the acquis. Steady progress in developing the administrative capacity to implement the acquis;
  • Latvia

    Good progress, particularly on economic criteria. Concerns over the Language Law. Some way off being able to assume membership obligations but making important progress;
  • Lithuania

    Some progress made across-the-board. The economic criteria, and slow and uneven pace of economic restructuring need to be addressed. Some way off being able to assume membership obligations. Commitment to closure of Ignalina a positive sign;
  • Malta

    Malta fulfils the Copenhagen political criteria. It is a functioning market economy and should be able to cope with competitive pressures if industrial restructuring continues. The main challenge is to bring down Government deficit. Progress needed on alignment with Single Market;
  • Poland

    Some further progress made. But more needs to be done to improve judiciary and to eradicate corruption. Must press ahead with privatisation and restructuring. Limited progress in aligning legislation to the acquis and in developing the capacity to implement it;
  • Romania

    Little progress made. Determined efforts needed on child protection and on corruption. Failure to tackle macroeconomic imbalances. Economic restructuring too slow;
  • Slovakia

    Political criteria now met. Good progress on economic criteria - must now press ahead with restructuring process. Must step up efforts to align legislation with acquis and develop necessary administrative capacity to implement and enforce it;
  • Slovenia

    Serious efforts made to address weaknesses highlighted in last progress report. Significant progress on approximation of legislation, but institutional capacity needs further attention;
  • Turkey

    Turkey does not meet the political criteria. Serious shortcomings on human rights, minorities and the rôle the army plays in political life. Commission hopes Oçalan death sentence will not be carried out. Some action curbing human rights abuses by police. Turkey has many characteristics of a market economy. Has made progress in achieving macro-economic stability, but needs to bring down inflation and fiscal deficit, continue structural reforms and implement reforms for underdeveloped sectors and regions. Able to implement obligations of membership for Customs Union, but work needed in competition and customs fields.

The Commission's formal conclusions

  8.15  The Commission says that in the light of its findings it recommends the European Council to conclude that:

    "—  accession negotiations will be opened in 2000 with all candidate countries that have fulfilled the Copenhagen political criteria and have proved to be ready to take the necessary measures to comply with the economic criteria, i.e. Bulgaria, Malta, Latvia, Lithuania, Romania and Slovakia;

    "—  the opening of negotiations with Bulgaria will be conditional upon a decision by the Bulgarian authorities, before the end of 1999, on acceptable closure dates for Units 1- 4 in Kozloduy nuclear power plant, and upon a confirmation of the significant progress accomplished in the economic reform process;

    "—  for Romania, the opening of negotiations will be conditional on the confirmation of effective action announced by the Romanian authorities to provide adequate budgetary resources and to implement structural reform of child care institutions before the end of 1999; it is also conditional upon a further assessment of the economic situation before negotiations are formally opened, in the expectation that appropriate measures will have been taken to address the macro-economic situation;

    "—  the nature and the number of negotiating chapters to be successively opened with each candidate country will be determined by the EU applying the principle of differentiation, i.e. taking full account of each candidate's progress in preparing for membership under the Copenhagen criteria;

    "—  on this basis, the Commission will recommend, during the successive phases of the negotiations, the chapters to be opened with each of the candidates. A limited number of chapters will be opened for all candidates entering into the negotiations in 2000. The number of chapters will vary according to the state of preparation of each individual candidate;

    "—  the chapters already provisionally closed in the ongoing negotiations will be reviewed, as agreed, in order to allow due account to be taken of newly adopted acquis. Provisional closure of chapters will henceforth be decided taking full account of the result of negotiations and the degree to which candidates have fulfilled their commitments to make progress in their preparations for membership;

    "—  the process of institutional reform must be oriented in such a way that the very substantial changes that are necessary as a condition for enlargement will be in force in 2002, and to commit itself to being able to decide from 2002 on the accession of candidates that fulfil all the necessary criteria;

    "—  to progressively reduce current restrictions on trade in agriculture with the candidate countries so as to liberalise this trade, on condition of reciprocity, taking into account the latest CAP reform (Agenda 2000), the diverse agricultural structures of the candidates, and the WTO context; the issue of EU export subsidies on goods going to candidate countries needs to be re-examined;

    "—  to review the situation in each candidate country, during 2000, from the point of view of the application of the competition and internal market rules with a view to refraining from using commercial defence instruments in industrial goods, if sufficient progress has been made;

    "—  Turkey should now be considered as a candidate country, although there is no question of opening negotiations at this stage. In order to enable it to benefit from that status the following actions should be undertaken:

    "—  enhancing political dialogue, with particular reference to the issue of human rights, and providing the option of association with the common positions and actions taken under the CFSP;

    "—  co-ordinating all sources of EU financial assistance for pre-accession within a single framework;

    "—  the possibility for full participation in all Community programmes and agencies;

    "—  adopting an Accession Partnership combined with a National Programme for the adoption of the acquis;

    "—  establishing mechanisms similar to those which operate under the Europe Agreements to monitor implementation of the Accession Partnership; and

    "—  with a view to harmonising Turkey's legislation and practice, beginning a process of analytical examination of the acquis."

The Government's view

  8.16  Mr Battle, in the absence of Mr Vaz, the Minister of State at the Foreign and Commonwealth Office, says in an EM of 29 November that the progress reports represent an important assessment of each candidate's readiness to join the EU. He comments:

    "The Commission has in each case provided a thorough and balanced report, which measures each candidate's achievements against the requirements of EU membership. The composite report is a valuable contribution to debate within the EU on the next steps in the enlargement process. Its support for extending negotiations to a further six candidates is in line with UK policy, as announced by the Prime Minister in his speeches in Romania and Bulgaria in May this year. The UK also strongly supports the proposal to confirm Turkey's candidate status at Helsinki.

    "The Government believes that the Commission proposal for institutional readiness from 2002 is a good one, and will help to focus the forthcoming Inter-Governmental Conference on the necessary reforms."

Conclusion
8.17Although not intended to foster a spirit of competition amongst the applicants, there is no doubt that all are conscious that this time round some, such as Hungary, have been shown to be making greater progress than others, for example Poland and the Czech Republic. We believe that the reports make an important contribution to transparency, providing national governments and the public with an opportunity to assess the readiness of the applicants to comply with the obligations of membership of the Union and to see in which areas the applicants should make more effort or where assistance is needed to enable them to do so.
8.18The draft Council Decisions on assistance to applicant countries[36], which we also consider in this Report, take account of these progress reports. Therefore, apart from setting out the big political considerations, the reports provide a practical basis for decisions on the agendas set for each applicant. These are demanding and the Commission points to the reason in its composite paper on the reports, where it suggests that it is important that the momentum should be maintained. It recalls that in its 1998 reports it was critical of a slowing down in both Slovenia, where there has since been a "clear stepping-up of the pace", and the Czech Republic, which has not been so successful in recovering momentum.
8.19We now clear the Commission's original Opinions (documents (a) to (j))) which have been overtaken. We regret that it was not possible for us to consider the second set of annual reports before they were submitted to the Council. However, we do not find them contentious, though they are of undoubted political importance, and we now clear them. We ask the Minister to try, in future, to provide us with Explanatory Memoranda on documents going up to European Councils at as early a date as possible, to alleviate the inevitable last minute pressures.



34  (19846) 14420/98 et seq; see HC 34-xi (1998-99), paragraph 11 (24 February 1999). Back

35  (19957) 6247/99; see HC 34-xvii (1998-99), paragraph 18 (28 April 1999). Back

36  See (20632) - ; and (200643) -; paragraph 10 below. Back


 
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Prepared 23 December 1999