Select Committee on European Scrutiny Twelfth Report


19 EU Enlargement

(27008)

14293/05 + ADD1

COM(05) 561

Commission Communication "2005 Enlargement Strategy Paper"

Legal base
Document originated9 November 2005
Deposited in Parliament18 November 2005
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 24 November 2005
Previous Committee ReportNone
To be discussed in Council12 December General Affairs and External Relations Council
Committee's assessmentPolitically important
Committee's decisionCleared

Background

19.1 The Commission outlines the rationale for enlargement thus:

"Enlargement is one of the EU's most powerful policy tools. The pull of the EU has helped transform Central and Eastern Europe to modern, well-functioning democracies. More recently, it has inspired tremendous reforms in Turkey, Croatia and the Western Balkans. All European citizens benefit from having neighbours that are stable democracies and prosperous market economies. It is vitally important for the EU to ensure a carefully managed enlargement process that extends peace, stability, prosperity, democracy, human rights and the rule of law across Europe".[31]

The Commission Communication

19.2 Ten new Member States joined in 2004. In 2005, the EU signed an accession treaty with Bulgaria and Romania, opened accession negotiations with Turkey and Croatia, and opened negotiations for Stabilisation and Association Agreements (SAA) with Serbia and Montenegro and Bosnia and Herzegovina. "Each of these events was justified by the countries' progress in meeting the relevant conditions".

19.3 The Western Balkans is seen as a particular challenge: "a convincing political perspective for eventual integration into the EU is crucial to keep their reforms on track. But it is equally clear that these countries can only join once they have met the criteria in full". Candidate status is necessary but insufficient for opening accession talks; the Commission will examine implementation of SAA obligations when considering any membership application.

19.4 Recalling that enlargement policy is defined by Articles 6 and 49 TEU (that any European state that respects the EU's fundamental democratic principles), and the political and economic criteria that have to be fulfilled, together with the obligations of membership and to implement the EU's laws and policies, the Commission says that its approach to further enlargement is "consolidation, conditionality and communication".

19.5 On Consolidation, the Commission says that "Enlargement has always been an essential part of the European project. The EU cannot abandon its responsibilities to ensure security, stability and prosperity on its own continent and further afield".[32] But no further enlargement with a large group of countries at the same time is envisaged: "Accession negotiations with Turkey are a long-term process. The Western Balkans contains smaller countries at different stages on their road towards the EU. Future enlargements will go at the pace dictated by each country's performance in meeting the rigorous standards, to ensure the smooth absorption of new members. The pace of enlargement has to take into consideration the EU's absorption capacity. Enlargement is about sharing a project based on common principles, policies and institutions. The Union has to ensure it can maintain its capacity to act and decide according to a fair balance within its institutions; respect budgetary limits; and implement common policies that function well and achieve their objectives".[33]

19.6 On Conditionality, the Commission says that "the EU must remain rigorous in demanding fulfilment of [the various criteria for enlargement,] but fair in duly rewarding progress",[34] and that it is prepared to recommend the suspension of progress in cases of serious and persistent breaches of the EU's fundamental principles, or if a country fails to meet essential requirements at any stage. Such requirements include cooperating with the International Criminal Tribunal for the former Yugoslavia (ICTY).

19.7 On Communicating enlargement policy, the Commission highlights the concerns of EU citizens about European integration in general, and enlargement in particular, and calls for both the Commission and Member States to communicate better the objectives and challenges of the accession process and how it deals with the countries. "Better communication about previous enlargements is vital to ensure support for future accessions".[35] Central to the Commission's communications strategy is the civil society dialogue, which aims to reinforce links between civil society in the EU and candidate countries in order to improve mutual understanding, address concerns, and encourage a high quality Debate (and which we considered on 12 October).[36]

19.8 Against this background, detailed Progress Reports on the candidate countries, Croatia and Turkey, and then the Western Balkan potential candidate countries, are published alongside this paper. They give a factual account on the stages reached on reaching the requirements to close each Chapter in the acquis communautaire. As in previous reports, "progress" has been measured on the basis of decisions actually taken, legislation actually adopted and measures actually implemented. Each is summarised with conclusions and recommendations in the Enlargement Strategy Paper.

19.9 They are also helpfully summarised by the Minister of State for Europe in the Foreign and Commonwealth Office (Mr Douglas Alexander) in his 24 November Explanatory Memorandum, as follows:

PROGRESS REPORT ON TURKEY

"The Commission assess that the "political transition is ongoing in Turkey and the country continues to fulfil the Copenhagen political criteria" but that "the pace of change has slowed in 2005 and implementation of the reforms remains uneven." It acknowledges progress in a number of areas, notably on the judicial system and civil-military relations, but says more is needed. It highlights more limited progress on issues such as cultural rights for minorities and freedom of religion. The Turkish Foreign Minister responded to the publication of the report saying that his government "is determined to implement the reforms, to deepen and strengthen democracy. We know our own deficiencies and we are determined to overcome them in the coming process." For the first time, the Commission states that Turkey can be regarded as a functioning market economy."

PROGRESS REPORT ON CROATIA

"The Commission assesses that Croatia faces no major difficulties in meeting the political criteria. Progress is evident, but must continue on judicial reform, anti-corruption measures, implementation of minorities legislation, refugee return and regional cooperation. Full cooperation with the ICTY will remain a requirement for progress throughout the accession process. Less than full co-operation with ICTY at any stage could lead to the suspension of negotiations.

"On the Economic criteria, Croatia can be regarded as a functioning market economy which should be able to cope with the competitive pressures and market forces within the Union in the medium term, provided that it continues to implement a reform programme. Croatia's economy is already well integrated with that of the EU and regional trade integration has strengthened. However Croatia still needs to take measures on subsidies, social transfers and state interventions and furthermore work to develop a better climate for private sector growth and Foreign Direct Investment (FDI) - not least through a better functioning judiciary.

"The Commission identifies some progress since the avis on membership (in June 2004) on Croatia's ability to assume the obligations of membership. This has been particularly marked in free movement of goods and public procurement as well as information society and education and culture. But the report notes that in many areas, enforcement is weak and administrative capacity remains uneven. Amongst the areas that the Commission judge will require either considerable or very significant efforts are the chapters on environment, agriculture, Justice and Home Affairs (JHA) and competition."

PROGRESS REPORT ON ALBANIA

"The Commission's paper notes that Albania has made progress across a range of issues but in general needs to implement policies and new laws more efficiently to achieve better practical results. The functioning of the judicial system has improved but more still needs to be done to execute judgements. Similarly considerable further efforts are required to enforce current legislation and adopt new measures in line with Albania's anti-corruption action plan. People trafficking remains a significant problem. Higher priority should also be given to funding the Government's anti-drug strategy and implementing measures against organised crime. Witness protection, for example, must be improved urgently. Regionally Albania continues to play a positive role. Economic growth remains strong but more needs to be done to improve competitiveness. The establishment and enforcement of property rights remain difficult, damaging the potential for investment and economic activity. On internal market issues, Albania has made some progress, for example in the areas of free movement of goods and custom rules but further work is required in other areas, including enforcement of environmental legislation."

PROGRESS REPORT ON BOSNIA AND HERZEGOVINA

"On the political side, the report welcomes the adoption of legislation in many areas, including on judicial structures, corruption, and refugee return, but noted that there is more to do to make executive and legislative bodies more effective, to equip State-level bodies, and ensure good State/entity co-ordination. The economy still requires vigorous structural reform in order to improve competitiveness. Public spending needs to be reduced. Positive steps have been made towards meeting European standards, particularly on the adoption of legislation on public broadcasting, free movement of goods, customs and taxation, transport, and organised crime. Further progress is needed across the board on improving capacity, on strategic planning and implementation, including in the media, agriculture, industry and energy sectors. Although there has been improved cooperation regarding ICTY, the fight against organised crime, terrorism and money laundering, there is much more to be done. Little has been achieved in the fight against drugs, and adequate legislation should be adopted to address this."

PROGRESS REPORT ON SERBIA AND MONTENEGRO

"The key political challenges facing Serbia and Montenegro (SaM) are: the need for full cooperation with ICTY to bring the remaining fugitives to justice; the importance of constructive engagement on the Kosovo status issue; and the need to adopt a transparent, constitutional approach to the State Union and any independence referendum in Montenegro. It is also important for SaM to make further progress in the implementation of reforms in the areas of minority rights, defence, public administration and the judiciary, and above all, to address the need for a revision of the Constitutions of the two Republics. Economic activity in Serbia has been robust but further commitment to macroeconomic stabilisation and structural reform is required. Economic growth has also strengthened in Montenegro but further private sector development is required as well as a decrease in external debt. SaM has made good progress in meeting the various European standards but continued efforts are required in the main areas for which each Republic is separately responsible: internal market; free movement of goods, persons, services and capital; customs; competition; public procurement; intellectual property rights; agriculture; transport and energy; media; justice and security; and organised crime and corruption."

REPORT ON KOSOVO

"The paper accurately identifies Kosovo's principal challenges as the strengthening of the rule of law, reforming judicial institutions to make them more responsive, dealing with an increasing backlog of cases that risks undermining the judiciary more broadly in Kosovo, introducing and seeing through vigorous economic reforms to address serious shortcomings in the competitiveness of Kosovo's economy. Unemployment remains very high with insufficient basic infrastructure impeding economic activity. Although Kosovo has made some progress in terms of alignment with European standards, overall progress has been uneven. Kosovo's government will need to continue to make progress in order to underpin Kosovo's longer-term security and build firmer foundations for a multi-ethnic Kosovo."

The Government's view

19.10 On the Enlargement Strategy, the Minister says:

"The Government welcomes the Strategy and Progress Reports which set out the case for continuing enlargement to Turkey and the countries of the Western Balkans. Enlargement has been one of the EU's most successful policies and it is important the process continues. The Strategy provides a useful summary of where each candidate/potential candidate sits in the accession process and sets out with some clarity the steps of the stabilisation and association process and how it interacts with the accession process. The Government welcomes the focus on continued rigour by the Commission in monitoring preparations by the countries concerned and the suggestion that each country will be judged solely on its individual merits and would agree on the importance of communicating the benefits of enlargement."

19.11 On the Strategy for the Western Balkans, he says:

"The Commission's Strategy paper is broadly helpful. There are some important points to highlight, which helps clarify the overall process of EU integration for the Western Balkans and places particular emphasis on conditionality. It makes clear that a Stabilisation and Association Agreement (SAA) must be considered as properly implemented before a country can become a candidate and that achieving candidate status does not mean that negotiations start immediately. The Government supports this, as it increases the EU's leverage over the Western Balkans. The Government is also pleased to see that the Commission's Strategy repeatedly cites full cooperation with ICTY as a requirement for further progress."

19.12 He notes that the Strategy Paper and Regular Reports are closely related to the Accession Partnerships for Turkey and Croatia and the European Partnerships for the other Western Balkans countries — which he describes as "essentially operational action plans drawn from the Reports to assist the countries concerned in making progress towards EU integration" — as well as to the avis on the former Yugoslav Republic Macedonia (the analysis of Macedonia is included in the Opinion on its application for EU membership, which we consider elsewhere in this Report, along with the Council Decisions on Accession Partnerships and with Turkey and Croatia and the European Partnerships with the countries of the Western Balkans).[37]

19.13 On the Financial Aspects, he notes that after becoming a candidate country, Croatia became eligible for all three pre-accession financial instruments: Phare for institution-building and economic and social cohesion, ISPA for environment and transport infrastructures and SAPARD for agricultural and rural development. Croatia also remains eligible for the CARDS Regional Programme in 2005 and 2006. Pre-accession financing amounts to €105 million in 2005 and €140 million in 2006. Croatia can also participate in Community Programmes.

19.14 The 2005 pre-accession financial assistance programme for Turkey consists of a national programme and associated expenditure on multi-country programmes, communication and management, bringing the overall total to €300 million in 2005 and €500 million in 2006.

19.15 The reform agenda contained in the European Partnerships is supported with a range of instruments. EU assistance to the Western Balkans comprises an allocation of €539 million in 2005 alone, including support to the CARDS regional programme for which Croatia remains eligible.

19.16 EU Foreign Ministers will note the document at the 12 December 2005 General Affairs and External Relations Council.

Conclusion

19.17 The House has consistently supported EU enlargement, most recently in the case of the opening of accession negotiations with Turkey, which received all-party endorsement. That said, the Commission's approach, of Consolidation, Conditionality and Communication, is well-balanced.

19.18 As we have observed elsewhere in this Report, sustained progress is required, especially in the Western Balkans, in by now familiar areas if the sustainable, law-based democratic systems that embody European values are to be realised; with a great deal remaining to be done before they can be said to be fully functional; and where, though the EU can, and indeed should, help, responsibility is primarily in the hands of the Partner countries themselves.


31   COM(05) 561, page 2. Back

32   Ibid, page 2. Back

33   Ibid, page 3. Back

34   Ibid, page 3. Back

35   Ibid, page 4. Back

36   (26702):10716/05 + ADD 1: HC 34-v (2005-06), para 37 (12 October 2005). Back

37   see paras 20, 18, 17 and 21. Back


 
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