9 EUROPEAN NEIGHBOURHOOD POLICY
(a)
(26155)
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(b)
(26156)
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(c)
(26157)
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(d)
(26158)
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(e)
(26159)
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(f)
(26160)
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(g)
(26174)
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Draft Action Plan for the Palestinian Authority
Draft Action Plan for Tunisia
Draft Action Plan for Morocco
Draft Action Plan for Jordan
Draft Action Plan for Moldova
Draft Action Plan for Ukraine
Draft Action Plan for Israel
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| Legal base | —
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| Department | Foreign and Commonwealth Office
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| Basis of consideration |
(a) to (f) EMs of 29 November 2004
(g) EM of 2 December 2004
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| Previous Committee Report |
None, but see (25708) 9921/04: HC 42-xxii (2003-04), para 22 (9 June 2004) and (25744-50) —: HC 42-xxiv (2003-04), para 6 (23 June 2004).
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| To be discussed in Council
| 13 December 2004 GAERC |
| Committee's assessment | Politically important
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| Committee's decision | Cleared, but further information requested
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Background
9.1 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. We cleared the European
Neighbourhood Strategy from scrutiny on 9 June, along with the
Country Reports on seven "First Wave" partners —
Ukraine, Moldova, Morocco, Tunisia, Israel, Jordan and the Palestinian
Authority.[25]
9.2 Those Country Reports described the political, economic and
social situation in the country and assessed bilateral relations
between the EU and each partner and the 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.
At that time, the Commission and the partner Governments were
still negotiating the contents of each Action Plan. So the draft
texts were not in the public domain. However, in seven Explanatory
Memoranda of 21 June, the Minister for Europe (Mr Denis MacShane)
outlined in each case what he described as "some of the elements
which could form part of the EU's offer" to each Partner
and the likely priorities of each Plan. We cleared them on 23
June.[26]
Action Plans for the seven "First Wave" partners
9.3 The Minister's subsequent seven Explanatory Memoranda of 29
November and 2 December outline the Action Plans the Commission
is expected to present for approval to the 13 December General
Affairs and External Relations Council (though the timing is under
review for Ukraine in view of the current political situation).
They each define the way ahead for the next three to five years
and cover a number of key areas for specific action. They build
on and reflect the existing state of relations with each partner
and include commitments in the fight against terrorism and the
proliferation of weapons of mass destruction. They offer what
the Minister describes as "the following new partnership,
economic integration and co-operation perspectives", each
with a number of common features, and each with various tailor-made
elements.
Common features
9.4 These include:
- the "perspective" of moving beyond co-operation
to a significant degree of integration, including in the EU's
Internal Market, and of participating 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 obstacles to trade;
- more and better-targeted financial support;
- a new European Neighbourhood and Partnership
Instrument focussing specifically on supporting cross-border and
transnational co-operation;
- possibilities of gradual opening of certain Community
programmes promoting cultural, educational, environmental, technical
and scientific links;
- deepening trade and economic relations; and
- once agreed by the Council and formally adopted
by the EU and each partner, progress monitored using existing
structures and formally reviewed after two years.
Specific elements
9.5 Each Action Plan also sets out priorities for
action, "within and beyond" the scope of the Interim
Agreement with the Palestinian Authority, the Association Agreements
with Tunisia, Morocco, Jordan and Israel and the Partnership and
Cooperation Agreement with Moldova and Ukraine. The Minister
summarises the specific elements of each Action Plan as follows:
THE PALESTINIAN AUTHORITY
- Facilitate efforts to resolve the Middle East
conflict, and to alleviate the humanitarian situation;
- 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;
- Develop trade relations with the Palestinian
Authority and progress with economic and regulatory reform plans;
fully implement the Interim Agreement;
- Enhance co-operation on transport and energy
issues with the objective of strengthening Palestinian participation
in Trans Euro-Mediterranean networks."
TUNISIA
- Consolidation of democracy and rule of law reforms;
- 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;
- Development of scientific research, higher and
secondary education;
- 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;
- Effective management of migration flows, including
signature of a readmission agreement."
MOROCCO
In addition to establishing a constructive dialogue
on visa facilitation between the EU and 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;
- Effective management of migration flows, including
signature of a readmission agreement."
JORDAN
In addition to establishing (as with Morocco) a constructive
dialogue on visa facilitation:
- Take forward a national dialogue on democracy
and political life within the framework of the national political
development plan;
- Continue to develop an independent and impartial
judiciary. Further reinforcing of the administrative and judiciary
capacity;
- Take steps to develop further the freedom of
the media and freedom of expression;
- Further promote equal treatment of women, by
preparing a plan to increase women's participation in political
and economic life;
- Strengthen political dialogue and co-operation
on issues of international and regional interest including the
Middle East Peace Process and the fight against terrorism;
- Take measures to improve business conditions
to enhance growth and increase investment in Jordan;
- Enhance Jordan's export potential by: further
liberalisation of trade, in goods and agriculture, simplifying
and upgrading customs legislation and procedures, improving industrial
standards and modernisation of the sanitary and phytosanitary
systems;
- Take steps to prepare for a progressive liberalisation
of trade in services;
- Effective management of migratory flows and facilitation
of movement of persons in conformity with the acquis, in particular
examine the scope for visa facilitation for short stay for some
categories of persons, to be defined jointly;
- 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 through sector liberalisation, investment
in infrastructures and interconnection with EU networks;
- Strengthen co-operation on science and technology."
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;
- further reinforcing administrative and judicial
capacity;
- resuming co-operation with International Financial
Institutions;
- implementing actions aimed at poverty reduction
to strengthen private sector led growth and for fiscal sustainability;
- improving the investment climate through appropriate
structural reforms aimed at ensuring non-discriminatory, transparent
and predictable business conditions and 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;
- ensuring the efficient management of migratory
flows, including initiating the process towards conclusion of
a readmission agreement between the European Community and Moldova."
In addition, support will include technical assistance
and twinning to meet EU norms and standards. The need to establish
a constructive dialogue on visa co-operation is emphasised. A
Commission Delegation in Moldova is to be opened as soon as possible.
Finally, "consideration will be given to the possibility
of a new contractual relationship".
UKRAINE
- Further strengthening the stability and effectiveness
of institutions guaranteeing democracy and the rule of law;
- Ensuring the democratic conduct of elections
in Ukraine in accordance with OSCE standards;
- Ensuring respect for the freedom of the media
and freedom of expression;
- Developing possibilities for enhancing EU-Ukraine
consultations on crisis management;
- Enhanced co-operation in the field of disarmament
and non-proliferation;
- 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
border issues;
- Accession to the WTO;
- Gradual removal of restrictions and non-tariff
barriers that impede bilateral trade, and implementation of the
necessary regulatory reforms;
- Improving the investment climate through non-discriminatory,
transparent and predictable business conditions, simplified administrative
procedures and the fight against corruption;
- Tax reform, improved tax administration and sound
management of public finances;
- Establishing a constructive dialogue on visa
facilitation between the EU and Ukraine, with a view to preparing
for future negotiations on a visa facilitation agreement, taking
account of the need for progress on the ongoing negotiations for
an EU-Ukraine readmission agreement;
- Gradual approximation of Ukrainian legislation,
norms and standards with those of the European Union; further
reinforcing administrative and judicial capacity;
- Encouraging dialogue on employment issues and
best endeavours, in accordance with the Partnership and Co-operation
Agreement, to ensure that treatment of migrant workers does not
discriminate on grounds of nationality;
- Full implementation of the Memorandum of Understanding
on the closure of the Chernobyl nuclear power plant, including
completing and starting-up of the 'K2R4' nuclear reactors, in
compliance with the internationally accepted nuclear safety standards."
As with Moldova, "consideration will be given
to the possibility of a new enhanced agreement, whose scope will
be defined in the light of the fulfilment of the objectives of
the Action Plan and of the overall evolution of EU-Ukraine relations".
ISRAEL
In his letter of 29 November, the Minister says that
the Commission is still negotiating an Action Plan with Israel.
He undertakes to submit a supplementary Explanatory Memorandum
on completion of negotiations. In the meantime, his Explanatory
Memorandum outlines the essential elements of the Action Plan,
which gives particular attention to:
- Pursuing legislative reform and application of
international provisions on human rights;
- Taking forward political dialogue and re-enforcing
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;
- Facilitating trade and negotiating an agreement
for liberalisation of trade in services."
Financial implications
9.6 As for funding, the Minister says:
"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 and Partnership Instrument are being considered
as part of the wider negotiations on the next Financial Perspective.
The proposed financial framework for the European Neighbourhood
and Partnership Instrument (ENPI) for 2007-2013 is £14,929
million in 2004 prices. However, this will be subject to debate
on the ENPI itself and the outcome of the overarching negotiations
on the finances of the EU from 2007-2013. The UK, along with 5
other Member States (Germany, France, the Netherlands, Austria
and Sweden) believes that the Union's priorities can be funded
by a budget stabilised at 1% of EU Gross National Income. The
Government will support appropriate allocation of resources to
ENPI countries according to criteria including need, policy environment
and effective use of previous assistance."
The Government's view
9.7 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"
—towards both the region as a whole and each individual
partner country.
9.8 Each of the Action Plans, the Minister says,
"meets the Government's key objectives for ENP of a safe,
secure neighbourhood. The Government welcomes the prospect of
an enhanced relationship with [each partner country] on the basis
of shared common values, and effective implementation of political,
economic and institutional reforms. The Government believes that
the approach in the 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… In setting out jointly agreed areas
for reform, the Action Plan will also serve as an effective tool
for targeting technical assistance."
9.9 The Minister reports that the Action Plans now
include commitments to introduce effective poverty reduction measures
and to establish the fight against corruption as a priority: "This
is in addition to the specific actions throughout the Action Plan[s]
designed to contribute to broad-based and equitable economic and
social development."
9.10 In the case of Ukraine, he adds a rider:
"Under the Action Plan, Ukraine is committed
to conduct democratic elections in accordance with OSCE standards….
Finalisation of the ENP Action Plan with Ukraine, however, comes
at a difficult time in EU-Ukraine relations. The recent Ukrainian
Presidential election campaign was marred throughout by numerous
irregularities. Incumbent Prime Minister Yanukovich was announced
as the winner of the elections. But with legal appeals outstanding,
and large scale protests in Kiev and elsewhere, the situation
remains uncertain. The EU has made clear that failure to conduct
free and fair elections has implications for Ukraine's relations.
The Government hopes it will be possible to implement the Action
Plan with Ukraine. However, the Government believes that, in the
present circumstances, the EU cannot continue business as usual
with Ukraine. A review of when the Action Plan may be adopted
is now taking place and it is likely that a delay will occur."
Conclusion
9.11 We are pleased that the Action Plans embody
commitments on countering terrorism and the proliferation of weapons
of mass destruction, and that the Government's endeavours to ensure
a strong focus on poverty alleviation and tackling corruption
have borne fruit. But the challenge now is to ensure the delivery
of corresponding outcomes. A relationship based on "shared
common values including on issues such as human rights, democratisation,
counter-proliferation and counter-terrorism" must be precisely
that.
9.12 In June, we noted that, with the Action Plans
rightly neutral on EU membership, other incentives should be offered
to encourage change. States that did well could hope for enhanced
trade access, increased help in capacity building, better access
for nationals, and so on. The corollary is that those which do
not, cannot. This has a particular relevance to Ukraine and Moldova.
The message to both is clear, and is one we endorse. In the
case of Moldova, along with co-operation on common threats to
security, we would also hope to see effective co-operation against
organised crime, including trafficking in human beings, being
a real yardstick. Also, bearing in mind recent developments in
Ukraine, ensuring the democratic conduct of parliamentary elections
in Moldova in accordance with European standards will be central
to the possibility of making real progress. Both countries have
much to do if the current destabilising situation in the Transnistria
region is to be satisfactorily resolved. In the hope of seeing
positive outcomes in both countries, we would be interested to
know if the Minister sees a role for further ESDP (European Security
and Defence Policy) Rule of Law Missions, similar to the one currently
in Georgia, which appears to be playing a positive role in support
of the new administration there in their efforts to strengthen
judicial administration.
9.13 Other partners also have real challenges
to overcome. Earlier in the year, the Minister noted 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". And on Israel and the Palestinian Authority,
the Government said that the EU's relationship "should be
based on a continued commitment from both sides to progress on
the Middle East Peace Progress" and he expected that the
priority areas in the Action Plan focussing on political dialogue
and co-operation "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".[27]
The Minister does not mention whether the final versions do indeed
include these areas, and we ask him to write to us in due course
clarifying this point.
9.14 The Action Plans do not involve additional
expenditure at this stage, and future funding will need to be
consistent with the outcome of negotiations on the 2007-13 Financial
Perspective. At this stage, the Commission envisages expenditure
of, in round figures, £15 billion over the 2007-13 period.
So, whatever the outcome, there is likely to be a high level
of expenditure. In our last Report, we looked at the Commission's
proposals for rationalising and simplifying its external actions,
at the heart of which are two proposed new Instruments of relevance
to the European Neighbourhood Policy — a European Neighbourhood
and Partnership Instrument (ENPI) and a Development Cooperation
and Economic Cooperation Instrument (DCECI). Earlier in the year,
the Minister said "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".[28]
As was noted in our last Report,[29]
this is not how matters currently stand: the DCECI's poverty and
policy-based focus has been diluted, and the ENPI is now far too
widely drawn. Moreover, as we said in our questions to the Minister
on these instruments, particular attention will need to be paid
to the management arrangements, since robust evaluation will be
the key to delivering partnerships and progress of real substance
rather than fine words. We therefore agree with him that it is
essential that EU Member States remain actively involved in shaping
this policy, to ensure it supports the UK's objectives.
9.15 There will be future opportunities for us
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 and re-shaped
accordingly. The Action Plans envisage a formal review after
two years. But there will assuredly be other stock-taking exercises
along the way. We accordingly ask that the Minister writes to
us at the appropriate time, with his views on progress made and,
where appropriate, on what remedial action may be required.
9.16 These requests for further information notwithstanding,
there is no need to hold up the process, and we accordingly
clear the documents.
25 (25708) 9921/04:HC 42-xxii (2003-04), para 22 (9
June 2004). Back
26
(25744-50) -: HC 42-xxiv (2003-04), para 6 (23 June 2004). Back
27
HC 42-xxiv (2003-04), para 6 (23 June 2004). Back
28
HC 42-xxiv (2003-04), para 6 (23 June 2004). Back
29
HC 38-i (2004-05), paras 9 and 13 (1 December 2004). Back
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