Select Committee on European Scrutiny Twenty-Fourth Report


6 European Neighbourhood Policy

(25744)

(25745)

(25746)

(25747)

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Draft Action Plan for Jordan

Draft Action Plan for the Palestinian Authority

Draft Action Plan for the Ukraine

Draft Action Plan for Moldova

Draft Action Plan for Israel

Draft Action Plan for Morocco

Draft Action Plan for Tunisia

Legal base
DepartmentForeign and Commonwealth Office
Basis of considerationEMs of 21 June 2004
Previous Committee ReportNone
To be discussed in CouncilJuly 2004 GAERC
Committee's assessmentPolitically important
Committee's decisionCleared

Background

6.1 The European Neighbourhood Policy (ENP) proposes a new framework for relations with eastern European neighbours of the enlarged EU (Ukraine, Belarus and Moldova) and southern Mediterranean neighbours (Morocco, Algeria, Tunisia, Egypt, Israel, Palestinian Authority, Jordan, Syria and Lebanon), and with three countries of the southern Caucasus (Georgia, Armenia and Azerbaijan). It holds out the possibility of a closer relationship with the European Union in return for progress on internal reform, with the objective of promoting regional and sub-regional co-operation, political stability and economic development. The ENP does not prejudice future applications for EU membership by eligible countries. The Committee considered and cleared the Strategy on 9 June, along with the Country Reports on seven "First Wave" partners — Ukraine, Moldova, Morocco, Tunisia, Israel, Jordan and the Palestinian Authority.[22]

6.2 The Country Reports describe the political, economic and social situation in the country and assess bilateral relations between the EU and each partner and progress so far under existing co-operation agreements. They are designed to inform each Action Plan, which is the first stage in the ENP process. The Action Plans, negotiated with partner countries in order to ensure joint ownership, will define the way ahead for the next three to five years and will cover a number of key areas for specific action. They will build on and reflect the existing state of relations with each partner country and include commitments in the fight against terrorism and the proliferation of weapons of mass destruction. The scope of actions which can be undertaken under the Plan for the Palestinian Authority will inevitably be constrained by its pre-state status and the conflict with Israel.

6.3 As the Commission and the partner Governments are still negotiating the contents of each Action Plan, the draft texts are not at present in the public domain. However, in his seven Explanatory Memorandums of 21 June, the Minister for Europe (Mr Denis MacShane) outlines in each case what he describes as "some of the elements which could form part of the EU's offer" to each Partner and the likely priorities of each Plan.

Main elements and country priorities

6.4 The main elements are likely to centre on the following:

  • The possibility of moving beyond co-operation to a significant degree of integration, including through a stake in the EU's Internal Market, and the possibility for each Partner to participate progressively in key aspects of EU policies and programmes;
  • An upgrade in the scope and intensity of political co-operation;
  • The opportunity for convergence of economic legislation, the opening of economies to each other, and the continued reduction of trade barriers;
  • Increased EU financial and technical assistance to support the actions identified in the Action Plan and to meet EU norms and standards;
  • a new European Neighbourhood Instrument focussing specifically on cross-border and trans-national co-operation;
  • Possibilities of gradual opening of certain Community programmes, promoting cultural, educational, environmental, technical and scientific links;
  • Deepening trade and economic relations, including a review of the feasibility of establishing an FTA following Ukraine's accession to the WTO;
  • New contractual links — in some cases, a new European Neighbourhood Agreement — whose scope will be defined in the light of progress in meeting the priorities set out in the Action Plan; and
  • In the case of Ukraine, Morocco, Tunisia and Jordan, establishing a dialogue on visa facilitation.

6.5 The Action Plan will also set out a comprehensive set of likely priorities for action by each Partner, which the Minister illustrates in each case:

Ukraine

  • "  Further strengthening the stability and effectiveness of institutions guaranteeing democracy and the rule of law;
  • Ensuring the democratic conduct of presidential (2004) and parliamentary (2006) elections in Ukraine in accordance with European standards;
  • Ensuring respect for the freedom of the media and freedom of expression;
  • Enhanced co-operation in our common neighbourhood and regional security, in particular working towards a viable solution to the Transnistria conflict in Moldova, including addressing outstanding border issues;
  • Enhanced co-operation in the field of disarmament and non-proliferation;
  • Removal of import and export restrictions that impede bilateral trade and implementation of regulatory reforms in preparation for WTO accession;
  • Improving the investment climate, through non-discriminatory, transparent and predictable business conditions and by the fight against corruption;
  • Tax reform, improved tax administration and sound management of public finances;
  • Early conclusion of negotiations on a readmission agreement; and
  • Ensuring compliance with the internationally accepted nuclear safety standards in completing and starting-up of the 'K2R4' nuclear reactors, and full implementation of the Memorandum of Understanding on the closure of the Chernobyl nuclear power plant.

"Once the Action Plan for Ukraine is in place, progress will be monitored using existing structures under the EU-Ukraine Partnership and Co-operation Agreement. The Action Plan will be formally reviewed after two years".

Moldova

  • "  sustained efforts towards a viable solution to the Transnistria conflict;
  • further strengthening the stability and effectiveness of institutions guaranteeing democracy and the rule of law; ensuring the democratic conduct of parliamentary elections (February 2005) in Moldova in accordance with European standards;
  • ensuring respect for the freedom of the media and the freedom of expression;
  • resuming co-operation with IMF and World Bank and reaching agreement on the Enhancing Growth, Poverty Reduction Strategy Paper and the Medium Term Financial Framework;
  • improving the investment climate through appropriate structural reforms aimed at ensuring non-discriminatory, transparent and predictable business conditions and by the fight against corruption;
  • progress towards a system of efficient, comprehensive state border management on all sectors of the Moldovan border including the Transnistrian sector;
  • working towards the EU granting Asymmetric Trade Preferences, by ensuring effective control of the origin of goods from Moldova;
  • stepping up the fight against organised crime, including trafficking in human beings;
  • initiating the process towards concluding a readmission agreement between the EU and Moldova; and
  • establishing a constructive dialogue on visa co-operation between the EU and Moldova, including an exchange of views on possibilities of visa facilitation in compliance with the acquis.

"Once the Action Plan for Moldova is in place, progress will be monitored using existing structures under the EU-Moldova Partnership and Co-operation Agreement. The Action Plan will be formally reviewed after two years".

Morocco

  • "  Pursue legislative reform and application of international provisions on human rights;
  • Take forward political dialogue and re-enforce co-operation in the fight against terrorism, and respect for human rights;
  • Development of a favourable environment for growth and foreign investment;
  • Co-operation in matters of employment and social sector;
  • Facilitate trade and negotiate an agreement for liberalisation of trade in services;
  • Progressive integration of Morocco into the European energy market and application of a protocol for progressive integration of the Maghreb energy market; and
  • Effective management of migration flows, including signature of a readmission agreement.

"Progress in meeting these priorities will be monitored in sub-committees established by the Association Agreement. The European Commission will issue a mid-term report on progress accomplished. On the basis of this evaluation, the EU and its member states, together with Morocco, will review the content of the Action Plan and decide on its adaptation and renewal".

Tunisia

  • "  Participation of all parts of Tunisian society in political life;
  • Development of political dialogue on democracy and human rights;
  • Re-enforcement of political dialogue and co-operation in foreign and security policy, notably in the fight against terrorism and respect for human rights;
  • Development of an environment favourable for growth and foreign investment;
  • Co-operation in employment matters and social policy;
  • Facilitate trade and negotiate an agreement for liberalisation of trade in services;
  • Application of a protocol for progressive integration of the Maghreb energy market; and
  • Effective management of migration flows, including signature of a readmission agreement.

"Progress in meeting these priorities will be monitored in sub-committees established by the Association Agreement. The European Commission will issue a mid-term report on progress accomplished. On the basis of this evaluation, the EU and its member states, together with Tunisia, will review the content of the Action Plan and decide on its adaptation and renewal".

Israel

  • "Enhanced political dialogue and co-operation, based on shared values;
  • Develop trade and investment flows, by liberalising trade in services;
  • Strengthen co-operation on migration-related issues;
  • Promote co-operation in transport, energy and telecom networks: in the transport field, in the energy sector and in the information society area;
  • Strengthen the environmental dimension of public policy and EU-Israel co-operation; and
  • Strengthen links and co-operation in 'people-to-people' contacts.

"Progress in meeting these priorities will be monitored in sub-committees established by the Association Agreement. The European Commission will issue a mid-term report on progress accomplished. On the basis of this evaluation, the EU and its member states, together with Israel, will review the content of the Action Plan and decide on its adaptation and renewal".

Jordan

  • "Take forward a national dialogue on democracy and political life, specifically on the reform of the political parties and the elections law;
  • Take steps to develop an independent and impartial judiciary;
  • Take steps to develop further the freedom of the media and freedom of expression;
  • Promote equal treatment of women, by preparing a plan to increase women's participation in political and economic life;
  • Strengthen political dialogue on issues of international and regional interest;
  • Take measures to improve business conditions to enhance growth and increase investment in Jordan;
  • Enhance Jordan's export potential by: further liberalisation of trade, simplifying and upgrading customs legislation and procedures, improving industrial standards and modernisation of the sanitary and phytosanitary systems;
  • Take steps to prepare for liberalisation of trade in services;
  • Strengthen co-operation on justice and home affairs issues;
  • Implement the Jordanian Sustainable Development strategy, and implement the Government's strategy to reduce poverty;
  • Develop the transport, energy and information society sectors and networks; and
  • Strengthen co-operation on science and technology.

"Progress in meeting these priorities will be monitored in sub-committees established by the Association Agreement. The European Commission will issue a mid-term report on progress accomplished. On the basis of this evaluation, the EU and its member states, together with Jordan, will review the content of the Action Plan and decide on its adaptation and renewal".

Palestinian Authority

  • "Enhanced political dialogue and cooperation, based on shared values;
  • Progress on establishing a functioning judiciary and effective enforcement of legislation; strengthening the rule of law and respect for human rights;
  • Organisation of parliamentary and local elections in West Bank and Gaza Strip in accordance with international standards;
  • Building on progress made in establishing an accountable system of public finances; and
  • Develop trade relations with the Palestinian Authority and progress with economic and regulatory reform plans; fully implement the Interim Association Agreement.

"Progress in meeting these priorities will be monitored in structures under the Interim Association Agreement. The European Commission will issue a mid-term report on progress accomplished. On the basis of this evaluation, the EU and its member states, together with the Palestinian Authority, will review the content of the Action Plan and decide on its adaptation and renewal".

The Government's view

6.6 The Minister says the Government "believes this is the right moment to develop more coherent EU policies for its neighbours. We welcome the ENP and its approach, which should enable a differentiated approach to each partner country within a wider policy framework. We recognise this is a long-term policy which will evolve gradually over time. We strongly believe it is essential that EU Member States remain actively involved in shaping this policy, to ensure it supports our objectives". It believes that "clear prioritisation … based on an analysis of clear and credible economic and other incentives, should ensure that it is an effective tool for promoting positive change and targeting technical assistance. We support the approach of offering greater EU engagement, including the prospect of new contractual arrangements, in return for progress in meeting agreed priorities. We strongly endorse the need for commitments on countering terrorism and the proliferation of WMD".

6.7 The Minister adds that:

"We have emphasised to the Commission the importance of a strong focus on poverty alleviation within the ENP. This was recognised in earlier Commission Communications, but seems to have received less emphasis in the latest proposals. We are working to ensure that the Commission retains this focus within broader ENP objectives, consults closely with civil society in the design and implementation of the Action Plans and takes steps to create synergies with national plans for poverty reduction. We have also highlighted the importance of tackling corruption, a significant obstacle to reform in many of the countries covered by the ENP".

6.8 The Minister notes that

"there are no additional financial implications at this stage. Co-operation from 2004-2006 will be funded from within existing regional budgets and we continue to believe that no increase in spending is required to implement the ENP at present. Existing assistance should be made more effective and targeted towards the priorities identified under the policy. The funding arrangements for the post-2007 European Neighbourhood Instrument will need to be considered as part of the wider negotiations on the next Financial Perspective. While no details of the proposed size of the instrument have been given, the Commission has indicated that it will look for a substantial increase in the amount allocated to the ENP compared to pre-2007 assistance. The Government supports a small, tightly focused European Neighbourhood Instrument concentrating on cross-border actions, with the bulk of assistance to neighbourhood countries coming from the proposed Economic Co-operation and Development instrument, allocated on the basis of objective criteria. The Government will also want to ensure that detailed financial proposals for the instrument are consistent with an EU budget of around 1% GNI".

6.9 Commenting specifically on Ukraine and Moldova, the Minister says that the approach suggested in the draft Action Plan "rightly combines opportunities for closer co-operation in areas of common interest, with a stronger desire from the EU to establish a set of shared common values including on issues such as human rights, democratisation, counter-proliferation and counter-terrorism with its nearest neighbours", the hope being that the Action Plans will provide support and impetus to their own reform programmes aimed at further integration into European economic and social structures. It says the same about Morocco and Tunisia. The Minister adds that "the Government believes that the Action Plan will contribute to our objectives of encouraging reform in Tunisia, particularly in the areas of political pluralism, civil liberties, media freedom and human rights".

6.10 As regards Israel and with the Palestinian Authority, the Government believes that the EU's relationship " should be based on a continued commitment from both sides to progress on the Middle East Peace Progress. We therefore welcome the suggested priority areas in the Action Plan focussing on political dialogue and co-operation, which we expect would include rights of minorities, progress on resolving the Middle East conflict, and on the fight against anti-Semitism and other forms of racism, xenophobia and intolerance". Finally, on Jordan, after again commending the stronger desire from the EU "to establish a set of shared common values including on issues such as human rights, democratisation, counter-proliferation and counter-terrorism with its nearest neighbours", the Government especially " welcomes the complementarity between the priorities of the Action Plan and the priorities of the Jordanian Government's own reform programme".

6.11 The Minister says that the Commission will present a formal proposal for the Action Plans to the General Affairs and External Relations Council in July, and that he will submit each proposal to the Committee as soon as it is received, prior to the July Council meeting.

Conclusion

6.12 A different plan for each partner country within a wider policy framework, founded on partnership and joint ownership and not too tightly specified at the outset, seems to us the right approach. We endorse the emphasis on commitments on countering terrorism and proliferation of weapons of mass destruction, and support the Government's endeavours to ensure that the Commission retains a strong focus on poverty alleviation and tackling corruption.

6.13 It is clearly right that the Action Plans should be neutral on EU membership and that, without this particular incentive, other incentives should be offered to encourage change. It is necessary to be both positive and realistic. Those states which do well can hope for enhanced trade access, increased help in capacity building, better access for nationals, and so on. Over the long-term, the Action Plans hold out the prospect of real benefits for all concerned.

6.14 We note too that the Action Plans are cost-neutral at this stage. Looking ahead, the possibility of new contractual arrangements — the European Neighbourhood Agreement — whose scope would be defined against progress in meeting the agreed Action Plan priorities underlines the importance of realistic and robust evaluation. We agree that proposed new financial instruments will need to be tightly drawn and consistent with the 2007-13 Financial Perspective.

6.15 We are grateful to the Minister for continuing to give us early sight of each stage in the development of this important component of the EU's external relations. There will be many additional opportunities, both in the immediate future (when the final versions are deposited) but more importantly in the years ahead, for us to continue to scrutinise the process as it develops and to ensure that it remains in line with its stated goals and approach to expenditure, i.e. targeted, outcome-oriented, properly-evaluated, re-shaped accordingly. For now, we have no questions to ask, and clear the documents.


22   (25708) 9921/04:HC 42-xxii (2003-04), para 22 (9 June 2004). Back


 
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