Select Committee on European Scrutiny Twentieth Report


19 European Partnership with Croatia

(25619)

8941/1/04

COM(04) 275

Draft Council Decision on the principles, priorities and conditions contained in the European Partnership with Croatia

Legal baseArticle 181a(2) EC; QMV
Document originated28 April 2004
Deposited in Parliament6 May 2004
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 7 May 2004
Previous Committee ReportNone; but see (25523) —; HC 42-xvii (2003-04), para 12 (21 April 2004)
To be discussed in Council18 May 2004 GAERC
Committee's assessmentPolitically important
Committee's decisionCleared

Background

19.1 The June 2003 Thessaloniki European Council aimed to support the Western Balkans countries' integration into the EU when they meet the established criteria — set out in the Stabilisation and Association Process (SAP) — by building on the practices used in the enlargement process, among other things through the introduction of European Partnerships. The Commission launched the first set of European Partnerships — for Albania, Bosnia and Herzegovina, the Republic of Macedonia and Serbia and Montenegro including Kosovo — in conjunction with its third Annual Report on progress made by the Western Balkan states through the SAP.

19.2 Based on the assessments in the Annual Reports, the European Partnerships identify short and medium-term priorities that the countries need to address in order to speed up their progress towards EU membership. Fulfilment of the Partnership priorities will equip them with the institutional and legislative framework and administrative capacity required to govern a modern democratic society with a functioning market economy. The countries of the Western Balkans are strongly encouraged to adopt plans for implementing the Partnership priorities, including a timetable for doing so and appropriate budgetary decisions. Accordingly, the Partnership priorities will also be the basis for programming EU assistance. We cleared these partnerships and the Annual Report on 21 April.

The document

19.3 Croatia's European Partnership and progress report were delayed to coincide with the Commission's opinion on Croatia's membership application, which was issued on 20 April. The political priorities in the Partnership include co-operating fully with the International Criminal Tribunal for (Former) Yugoslavia (ICTY), strengthening the judicial system, improving the fight against corruption, speeding up the return of refugees, enhancing regional co-operation and improving respect for minority rights. The economic priorities include sustaining prudent, stability-oriented macro-economic policies, accelerating privatization and land reform, facilitating the free movement of goods and capital, and ensuring the alignment of competition and taxation legislation with EU standards. The fulfilment of the priorities identified in the Partnership should thereby equip Croatia with the institutional and legislative framework and administrative capacity required to govern a modern democratic society with a functioning market economy. Given the Commission's positive opinion, the Partnership will increasingly be geared towards the adoption of the EU's acquis.

19.4 As with the other countries of the Western Balkans, Croatia is strongly encouraged to adopt an action plan for implementing the priorities identified in the European Partnership, including a timetable and appropriate budgetary decisions. The Partnership priorities will also be the basis for EU assistance. Further funding for reform is likely to become available as and when Croatia becomes eligible for pre-accession funding, rather than external funding as at present.

The Government's view

19.5 The Government supports the SAP as both a stimulus to European integration and a lever for reform. The Government also strongly supports the launching of European Partnerships: the UK played a leading role in ensuring that this initiative was adopted at the Thessaloniki European Council, and was instrumental in shaping its development.

19.6 The Minister for Europe (Mr Denis MacShane) notes the quality of the Commission's analysis and welcomes the fact that despite the direct and frank criticisms, explicit in the report and implicit in the Partnership, the Commission "has stayed true to the spirit of Thessaloniki". He says that the Government will be seeking strong language in the May GAERC Conclusions encouraging Croatia to maintain the momentum of reform, to draw up an action plan and to implement the Commission's recommendations. In the meantime, he notes that the Council working group will conduct a thorough evaluation of the substance of this as well the other European Partnerships, and undertakes that Parliament will be informed of any significant changes to the Partnership.

Conclusion

19.7 We report this further development to draw attention to an additional step in the EU's support for the future integration of the countries of the Western Balkans into the EU. Recent developments in Croatia are encouraging, as reflected in the Commission's positive opinion. As with Croatia's Balkan partners, the proposed Partnership is an appropriate response, as a framework within which Croatia — with the right responses on its part — can move towards meeting the established criteria for membership.

19.8 We accordingly welcome the proposed Partnership, and clear this document.


 
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