32 EU Enlargement: Bulgaria and Romania
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9465/06
COM(06) 214
+ ADDs 1-3
| Commission Communication: Monitoring report on the state of preparedness for EU membership of Bulgaria and Romania
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| Legal base | — |
| Document originated | 16 May 2006
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| Deposited in Parliament | 24 May 2006
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | Explanatory Memorandum of 7 June 2006
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| Previous Committee Report | None; but see HC 42-xxxiv (2003-04), para 12 (27 October 2004); HC 38-iii (2004-05), para 30 (12 January 2005); HC 34-xi (2005-06), para 15 (23 November 2005)
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| To be discussed in Council | 17 June 2006 European Council
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
32.1 The accession negotiations with Bulgaria and Romania
were concluded in December 2004 and a Treaty of Accession was
signed on 25 April 2005 in Luxembourg. The UK ratified the Treaty
on 5 April 2006. The European Commission's comprehensive monitoring
report published on 25 October 2005 noted the progress made by
both countries and identified a number of areas where further
improvements needed to be made in order to fully meet all membership
requirements. It recommended that a further monitoring report
be published in April/May 2006.
32.2 Bulgaria and Romania's progress
towards accession has been continuously monitored by the Commission
over a number of years, on the basis laid down by the 1993 Copenhagen
European Council — the political and economic criteria for
membership (a stable democracy, respecting human rights, the rule
of law, and the protection of minorities; and a functioning market
economy) and the requirement to adopt the common rules, standards
and policies that make up the body of EU law — the so-called
acquis communautaire. The monitoring report covers progress
made in these three areas since the publication of the last monitoring
report and recommends next steps.
The Commission Communication
32.3 This report follows up on the findings of the
October 2005 report. It is based on the detailed assessment contained
in the accompanying Monitoring Reports for each country. It:
— reviews,
as of end April 2006, developments and the preparedness of both
countries in areas previously identified as in need of further
improvement;
— examines measures required to remedy
any shortcomings that might persist upon accession; and
— draws conclusions on the state of preparedness
for EU membership of Bulgaria and Romania.
POLITICAL CRITERIA
32.4 The report states that both Bulgaria
and Romania meet the political criteria for membership.
In Romania, significant steps have been taken in the reform
of the judiciary, particularly in enhancing its impartiality,
increasing resources and improving working conditions. Both countries
made progress in the fight against corruption. Romania
has launched investigations into a considerable number of high-level
corruption cases which have resulted in the indictment of four
senior figures. However, reforms led by the Ministry of Justice
and the National Anti-Corruption Directorate "need to be
followed by sustained efforts of all other state institutions
so that the progress made becomes irreversible".
32.5 Bulgaria has adopted an anti-corruption
strategy for 2006-08 and launched investigations into corruption
by a number of Members of Parliament. However, the report notes
that the accountability, transparency and efficiency of the justice
system need further strengthening, and that indictments, prosecutions,
trials, convictions and dissuasive sentences remain rare in the
fight against high level corruption.
32.6 Romania has made significant progress
in the area of child protection, where the overall situation has
substantially improved.
32.7 The report notes that progress has been made
by Romania in public administration reform and in fighting
trafficking in human beings, as well as the reform of the systems
of care for the disabled and mentally ill. Bulgaria has
also made progress in the field of public administration, and
some progress in the areas of ill-treatment in custody and the
disabled and mental health care systems. But Romania and
Bulgaria both remain countries of transit and to a lesser
extent origin and destination for trafficking in human beings.
Social inclusion of the Roma minority still requires substantial
efforts. Additional efforts are also needed to combat racism,
discrimination, xenophobia and all forms of intolerance. The debate
on the draft law on minorities in parliament in Romania should
be closely followed.
ECONOMIC CRITERIA
32.8 Both Bulgaria and Romania are
functioning market economies. Progress has continued in both countries
since the October 2005 report, with macroeconomic stability and
advanced structural reforms being broadly maintained in both countries.
Continuation of the current reforms should enable Bulgaria
to cope with competitive pressure and market forces in the near
term. The privatisation process and the liberalisation and restructuring
of utilities are well advanced.
32.9 However, Romania must continue its current
reforms in order to enable it to cope with the competitive pressure
and market forces within the Union in the short term and needs
vigorous implementation of its structural reform programme in
the short term, continued restructuring of energy, mining and
transport and progress in implementing the privatisation programme.
ALIGNMENT WITH THE ACQUIS COMMUNAUTAIRE
32.10 Both countries have reached a considerable
degree of alignment with the acquis communautaire and demonstrated
considerable progress in addressing the issues highlighted in
the last reports as "areas of serious concern, which require
urgent action". The last report specified 16 for Bulgaria
and 14 for Romania. This has now been reduced to 6 and
4 respectively.
32.11 Those for Bulgaria are:
— setting
up a proper integrated administration and control system (IACS)
in agriculture (acquis
chapter 7);
— building-up of rendering collection and
treatment facilities in line with the acquis on TSE (transmissible
spongiform encephalopathy)and animal by-products (acquis
chapter 7);
— clearer evidence of results in investigating
and prosecuting organised crime networks (acquis chapter
24);
— more effective and efficient implementation
of laws for the fight against fraud and corruption (acquis
chapter 24);
— intensified enforcement of anti-money
laundering provisions (acquis
chapter 24); and
— strengthened financial control for the
future use of structural and cohesion funds (acquis
chapter 28).
32.12 Those for Romania are:
— accrediting
fully operational paying agencies for handling direct payments
to farmers and operators under the common agriculture policy,
building on progress made (acquis
chapter 7);
— setting up a proper integrated administration
and control system (IACS) in agriculture, building on progress
made (acquis
chapter 7);
— building-up of rendering collection and
treatment facilities in line with the acquis on TSE and
animal by-products (acquis
chapter 7); and
— tax administration IT systems ready for
inter-operability with those of the rest of the Union, to enable
a correct collection of VAT throughout the EU internal market
(acquis
chapter 10).
SAFEGUARDS AND OTHER MEASURES
32.13 The Commission notes that it is the responsibility
of the authorities of both countries to take all the necessary
measures to address, particularly, the areas giving rise to serious
concern, but also areas identified in the report as requiring
increased efforts; and that "failure to do so would lead
the Commission, as guardian of the Treaties, to take the necessary
preventive or remedial action to safeguard the functioning of
EU policies". Safeguards are outlined in three broad areas:
the internal market, the judiciary and fight against corruption,
and the disbursement of EU funds.
32.14 On the Internal market, the Commission
notes that the Accession Treaty safeguard can be taken up to three
years after accession. Other instruments, such as the infringement
procedure, and the enforcement mechanisms for competition rules,
may also be applied. Bulgaria and Romania both still
need to build up rendering collection and treatment facilities
in relation to the acquis on TSE; if this situation is
not remedied upon accession, the Commission will take a decision
on the basis of the acquis in order to prevent the related
animal products awaiting treatment from returning into the feed
chain. Romania also needs to accelerate preparations to
ensure that its IT systems are fully operational and ready for
interconnection upon accession with the EU framework for VAT and
excise duties computerised systems; otherwise he Commission will
take measures based on Article 37 of the Act of Accession to maintain
physical fiscal controls at the internal borders between Romania
and the rest of the EU.
32.15 On the judiciary and the fight
against corruption, the Accession Treaty provides for safeguard
measures for up to three years from accession. If implementation
of reforms in the justice system is not sufficiently advanced
in either country before accession, or if the fight against corruption
in the judiciary has not yielded sufficient tangible results,
the Commission will establish on the basis of Article 38 of the
Act of Accession a mechanism for further monitoring — a
yearly progress report, with benchmarks tailored to the specific
shortcomings observed in each country, and against which progress
will be measured. Should either country fail to address shortcomings
adequately, the Commission would adopt safeguard measures suspending
obligations of the current Member States to automatically recognise
judgements or execute warrants issued by that country's courts
or prosecutors. The European Monitoring Centre on Racism and Xenophobia
would monitor the protection and integration of minorities.
32.16 On the disbursement of EU funds, the
Commission notes that a Member State needs to offer effective
programming and monitoring structures, as well as financial management
and control systems, including for procurement, so as to guarantee
the proper spending of EU funds under shared management, i.e.
the Common Agricultural Policy and the Structural and Cohesion
Funds. The Commission would delay the release of payments if continuing
defects are not remedied.
NEXT STEPS
32.17 The Commission recalls that the Accession Treaty
provides that Bulgaria and Romania will join in
2007 unless the Council decides, upon a recommendation from the
Commission, to postpone the accession of either country until
2008. The Council may so decide:
— by
qualified majority, if serious shortcomings have been observed
in the fulfilment by Romania of one or more of a number
of the specific commitments and requirements related to justice
and home affairs and competition policy, listed in Annex IX to
the Act of Accession; or
— by unanimity, if there is clear evidence
that the state of preparations for adoption and implementation
of the acquis in Bulgaria or Romania is such
that there is a serious risk of either country being manifestly
unprepared to meet the requirements of membership by 1 January
2007 in a number of important areas.
32.18 It then concludes that, in the light of the
overall progress made, Bulgaria and Romania should
be prepared for membership by 1 January 2007, provided that they
address a number of outstanding issues. It says in particular
that "an impartial, independent and effective justice system
properly equipped to fight corruption and organised crime is of
paramount importance, as it underpins the functioning of the whole
society and economy". It then says that:
— Bulgaria
needs to demonstrate clear evidence of results in the fight against
corruption, in particular high-level corruption, notably in terms
of investigations and subsequent judicial proceedings;
— Building on progress already made, Romania
needs to continue its efforts and demonstrate further results
in the fight against corruption, notably in terms of further investigations
and subsequent judicial proceedings;
— Bulgaria needs to further reform
the judiciary, in particular to reinforce its transparency, efficiency
and impartiality, and remove any ambiguity regarding its independence;
and
— Building on progress already made Romania
needs to consolidate the implementation of the ongoing judicial
reforms, and further enhance the transparency, efficiency and
impartiality of the judiciary.
32.19 The Commission then summarises the "areas
of serious concern" for each country and says it will report
on Bulgaria's and Romania's progress in addressing
the outstanding issues no later than early October, consider whether
the date of their accession to the European Union on 1 January
2007 can be maintained and specify any areas where safeguards
or other remedial measures may be needed upon accession.
The Government's view
The Minister says:
"The Government welcomes the progress that
Bulgaria and Romania have made since the previous
comprehensive monitoring reports were published in October 2005.
However, both countries need to address the areas of concern outlined
in the report in order to be ready for accession in 2007 as planned.
The Government therefore supports the Commission's decision to
report on further progress later this year before making a recommendation
on accession date and any safeguards or other measures. The Government
agrees with the Commission's emphasis on the importance of safeguarding
the functioning of EU policies.
"The Government recognises the progress
made in the fight against corruption in Romania and Bulgaria.
However, the Commission's report correctly states that an impartial,
independent and effective justice system properly equipped to
fight corruption and organised crime is of paramount importance.
In this context, the UK government urges both countries to address
the deficiencies outlined in the report.
"The Government calls on both countries
to address the outstanding areas of serious concern in the areas
of agriculture and food safety. Both countries must set up of
a proper integrated administration and control system (IACS) and
rendering collection/treatment facilities. In addition, Romania
must accredit fully operational paying agencies. The government
supports the Commission's intention to consider safeguard measures.
"The Government agrees that a member state
needs to offer the necessary guarantees on proper spending of
EU funds. It therefore urges both countries to set up a proper
integrated administration and control system (IACS) in the area
of agriculture and supports the Commission's intention to consider
safeguard measures in this area if the situation is not remedied
in time for accession.
"The Government welcomes the Commission's
commitment to continue to provide support for Bulgaria
and Romania's preparations for membership. EU support in
the form of peer assistance, training seminars, advice missions,
twinning (light) projects or similar instruments, which can be
mobilised quickly and can be focused on well-targeted issues,
is essential. The UK is providing bilateral assistance to Romania
and Bulgaria to assist their preparations and is leading
the Romanian Paying Agency twinning project.
"No decision has yet been made as to the
level of access to its labour market the UK will offer Bulgarian
or Romanian nationals following their accession to the EU. The
decision will be taken once the date of accession is determined.
Any future decision on what access to grant will be based on various
factors including an evaluation of the UK's labour market, the
impact of the previous enlargement in 2004 and the position of
other EU Member States."
Conclusion
32.20 As we noted when considering last autumn's
monitoring Report, serious EU interests are involved, including
border security, animal and human health, financial controls,
corruption and organised crime, all of which go to the heart of
a properly functioning governance system based on the effective
implementation of laws by an accountable independent and effective
judiciary and bureaucracy. We accordingly endorse what both the
Commission and the Minister have to say about their "paramount
importance".
32.21 We also noted that the capacity of the Union
to uphold its standards now will determine both its immediate
security and its capacity to uphold those standards in the course
of further enlargement discussions and negotiations. This view
has if anything been fortified by the ongoing debate throughout
the Union since the rejection a year ago of the Constitutional
Treaty by the voters of France and the Netherlands about the extent,
pace and basis of such further enlargement.
32.22 We continue to hope that, come the autumn,
the Commission will be able to demonstrate that Bulgaria
and Romania have made sufficient progress to warrant maintaining
the original timetable whilst also maintaining the integrity of
the enlargement process. In any event, it is still likely that
we shall recommend that the Commission's final verdict be debated,
particularly in the light of the Minister's ambiguous remarks
regarding the level of access to its labour market that the UK
will offer Bulgarian or Romanian nationals following accession.
32.23 In the meantime, we clear the document.
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