Select Committee on European Scrutiny Thirty-Fourth Report


10 European Neighbourhood Policy: EU-Egypt Action Plan

(27599)

10560/06

COM(06) 282

Draft Council Decision on the position to be adopted by the European Community and its Member States within the EU-Egypt Association Council with regard to the EU-Egypt Action Plan

Legal baseArticle 15 TEU; unanimity
Document originated7 June 2006
Deposited in Parliament20 June 2006
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 29 June 2006
Previous Committee ReportNone; but see (26434) 7313/05; HC 38-xv (2004-05), para 14 (6 April 2005); (26155-60 and 26174): HC 38-ii (2004-05), para 9 (8 December 2004); and HC 38-vii (2004-05), para 8 (2 February 2005); (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)
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionCleared, but further information requested

Background

10.1 The European Neighbourhood Policy (ENP) proposes a new framework for relations with the eastern European neighbours of the enlarged EU (Ukraine, Belarus and Moldova), its southern Mediterranean neighbours (Morocco, Algeria, Tunisia, Egypt, Israel, Palestinian Authority, Jordan, Syria and Lebanon) and three countries of the southern Caucasus (Georgia, Armenia and Azerbaijan). A closer relationship with the EU is offered 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 prejudge future applications for EU membership by eligible countries.

10.2 Our predecessors cleared the European Neighbourhood Strategy, along with the Country Reports on seven "First Wave" partners — Ukraine, Moldova, Morocco, Tunisia, Israel, Jordan and the Palestinian Authority — in June 2004.[32] Later that month, they cleared what the then Minister for Europe described as "some of the elements which could form part of the EU's offer" and the likely priorities of each Plan.[33] Then, on 8 December 2004, the then Committee cleared the Action Plans on the seven "First Wave" partners that were subsequently approved by the 13 December 2004 General Affairs and External Relations Council.[34] Each of the Action Plans, the then Minister said, combined "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".

10.3 Finally, the previous Committee cleared the Commission Communication that presented the key elements of Country Reports for Armenia, Azerbaijan, Georgia, Egypt and Lebanon and made recommendations on Action Plans for these countries. Each Country Report assessed bilateral relations between the EU and the partner country, reflecting progress under their respective Partnership and Co-operation or Association Agreements, and described the political, economic and social situation in each country.

10.4 For Egypt, on the basis of the Country Report, the Commission, in close co-operation with the Presidency and the Secretary General/High Representative where appropriate, was to initiate formal consultations with aimed at concluding a comprehensive and balanced Action Plan, with the key priorities covering two broad areas:

  • commitments to specific actions which reinforce respect for international obligations, democracy and the rule of law, including the holding of democratic elections, administration of justice and human rights and to certain objectives in the area of foreign and security policy; and
  • commitments to actions which will bring these partner countries closer to the EU in a number of priority fields such as economic and social development policy (including poverty reduction and sustainable development), trade and the internal market (including sectors such as energy, transport, the environment, maritime affairs and fisheries, information society, research and innovation, justice and home affairs and people-to-people contacts).

10.5 The Action Plan would identify key actions in a limited number of fields which need to be addressed as a particularly high priority. Priorities for action would be as specific as possible, with a clear time horizon, so as to constitute benchmarks which could be monitored and assessed.

10.6 The then Minister for Europe welcomed the prospect of closer co-operation in areas of common interest, based on shared common values and effective implementation of political, economic, social and institutional reforms, and involving an Action Plan that supported and encouraged Egypt's own reform programme and targeted financial and technical assistance. He said that the Government would remain in close contact with the Commission during the negotiations so as to ensure that the Government's key ENP objectives were met.

10.7 In clearing earlier Action Plans with partners in the "near neighbourhood" and in North Africa and the near-Middle East, the previous Committee noted that the challenge now was to ensure delivery, and that a relationship based on "shared common values", including on issues such as human rights, democratisation, counter-proliferation and counter-terrorism, must be precisely that — with States that did well being able to hope for enhanced trade access, increased help in capacity-building, better access for nationals and so on, and those that did not, not being able so to do; and that the same tests would need to be applied in due course with these additional prospective partners. They accordingly hoped that the draft Action Plans would reflect the essentially reciprocal nature of the partnership on offer.

The Council Decision

10.8 In accordance with the Council Conclusions of 14 June 2004, stipulating that Action Plans will be approved by the Council and subsequently endorsed by the respective Association or Co-operation Councils, the Commission attaches the text of a proposal for a Council Decision on the position to be taken by the European Community and its Member States within the EU-Egypt Association Council with regard to the adoption of a Recommendation of the EU/Egypt Action Plan annexed to it.

10.9 In its introduction, the Commission says:

"Egypt's unique geographical position and her historical and strategic relations with the Arab and African countries, and her key role for peace and stability in the Middle East, as well as the EU's increasing role on the global arena and its enhanced contribution to peace, security and economic development in the Mediterranean and the Middle East, enable Egypt and EU, through this Action Plan to further develop their cooperation on regional and international issues, particularly referring to the Middle East Peace Process, disarmament and arms control, including illicit transfer of small arms and light weapons, non proliferation of weapons of mass destruction and their delivery systems in the Middle East and elsewhere, and the fight against terrorism; to enhance and to promote dialogue between cultures and civilizations and to promote South-South trade and cooperation."

10.10 The Commission says that the Action Plan "sets ambitious objectives based on joint ownership, common interests, reciprocal commitments, differentiation, shared values and implementation of national plans and reform programmes, politically, economically, socially and institutionally". The level of ambition of the EU-Egypt relationship will depend on the degree of commitment to common values as well as the implementation of jointly agreed priorities; the pace of progress "will acknowledge fully the efforts and concrete achievements in meeting those commitments". Recognizing "Egypt's efforts and reform priorities to further develop and modernise all sectors of the Egyptian society and economy based on the respect of her identity, specificities and national priorities", the Action Plan aims to support such efforts and priorities as reflected in the 2002-07 National Development Plan, "President Mubarak's Electoral Platform for 2005" and "the Government's statement to the parliament in January 2006". It says that these include "national priorities aiming to: improve quality of life and standard of living; increase employment opportunities and reduce unemployment; reduce poverty and expand the coverage of social security; eradicate illiteracy and develop education and higher education; consolidate the role of institutions, promote the protection of human rights and fundamental freedoms; continue maintaining and ensuring judiciary independence; expand the participation in political life; enhance human resources and institutional capacity building; increase rates of economic growth and investments; increase female participation in development; achieve a significant expansion in the production and exports capacities; improve industrial potentials; promote innovation, scientific research and technological development and preserve the environment".

10.11 The Action Plan covers New Partnership Perspectives, Priorities for Action and 25 pages of detailed actions covering:

—   Enhanced political dialogue, economic and social development and reform;

—  Trade related issues, market and regulatory reform;

—  Transport, energy and environment;

—  Migration, social integration, justice and security;

—  Science and technology, research and development, information society and audio-visual co-operation; and

—  People-to-people contacts.

10.12 In his 29 June 2006 Explanatory Memorandum, the Minister for Europe (Mr Geoffrey Hoon) says that, building on and reflecting the current state of relations with Egypt, the Action Plan defines the way ahead for the next three years. He says that the negotiations have taken some time, and the Commission is still waiting for the final agreement from Egypt, after which the document will be presented to the Council for approval. "That the European Commission has published this Action Plan before obtaining Egyptian agreement is intended to send a message to the Egyptians that there will be no further negotiations. We therefore do not expect the text of the document to change."

10.13 He goes on to say that Egypt is offered the following new partnership, economic integration and co-operation perspectives :

  • "The perspective of moving beyond the existing relationship to a significant degree of economic integration including through a stake in the EU's Internal Market, and the possibility for Egypt 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;
  • "Institution-building support;
  • "Support for cross-border and transnational co-operation;
  • "Possibility of gradual opening of certain European Community programmes, promoting cultural, educational, environmental, technological and scientific links".

10.14 He then says that, in "a comprehensive set of priorities for action" within and beyond the scope of the Association Agreement, the following should receive particular attention:

  • "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".

10.15 Once been agreed by the Council, and formally adopted by the EU and Egypt, progress against will be monitored using existing structures under the EU/Egypt Association Agreement and formally reviewed after three years.

The Government's view

10.16 The Minister says that the Action Plan meets the Government's key objectives for ENP "of a safe, secure neighbourhood" and welcomes "the prospect of an enhanced relationship with Egypt on the basis of shared common values, and effective implementation of political, economic and institutional reforms". He continues as follows:

"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. The Government hopes that the Action Plan will provide support and impetus to Egypt's own reform programme aimed at further integration in European economic and social structures. In setting out jointly agreed areas for reform, the Action Plan will also serve as an effective tool for targeting technical assistance.

"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 to the region and to Egypt."

10.17 Finally, the Minister says that there are no additional financial implications at this stage: "Co-operation from 2004-2006 is 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." Looking ahead, he says that funding from 2007 will be under the new European Neighbourhood and Partnership Instrument (ENPI). He says (somewhat oddly) that "funding arrangements are being considered as part of the wider negotiations on the next Financial Perspective"; that the indicative financial framework for the ENPI for 2007-13 is €11,967 million in current prices; and that the Government will support "appropriate allocation of resources to ENPI countries according to criteria including need, policy environment and effective use of previous assistance".

Conclusion

10.18 With its European Neighbourhood Policy, the EU is seeking to work with countries, many of whose societies and traditions are very different from those of Europe, without what has hitherto been seen as the major stimulus for progress. It is perhaps no coincidence therefore that the Minister begins with those areas that will determine whether or not, over time, "a set of shared common values" can be established. Much will depend on the starting point. In that respect, a franker assessment of that starting point would have been valuable.

10.19 We ask the Minister first how he assesses the genuine readiness and capacity of the Egyptian government and civil society to work together towards achieving the very detailed and challenging agenda set out in the Action Plan, especially in those areas that he has highlighted.

10.20 Secondly, we ask the Minister for his views on why, at the outset, the Commission has felt the need "to send a message to the Egyptians that there will be no further negotiations" — what are the areas of difficulty?

10.21 Thirdly, we ask the Minister to explain what he means by saying he believes it is essential that EU Member States remain actively involved in shaping this policy, "to ensure it supports our objectives to the region and to Egypt". This suggests at least the possibility of some sort of tension between Member States and the Commission, and we ask what those "objectives to the region and to Egypt" are, which he implies might in some way be jeopardised, and to explain what is meant by "active involvement" in this context.

10.22 We have no wish to hold up the Action Plan, whose aspirations we endorse. But we should be grateful for a fuller exposition.

10.23 We now clear the document.




32   (25708) 9921/04; see HC 42-xxii (2003-04), para 22 (9 June 2004). Back

33   (25744-50) -; see HC 42-xxiv (2003-04), para 6 (23 June 2004).  Back

34   (26155-60 and 26174) 16164/04, 16166/04, 16162/04, 16167/04, 16218/04, 15991/04 and 16178/04; see HC 38-ii (2004-05), para 9 (8 December 2004); HC 38-vii (2004-05), para 8 (2 February 2005). Back


 
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