Sixteenth Report of Session 2012-13 - European Scrutiny Committee Contents


6   Enlargement Strategy and Main Challenges 2012-13



Legal base
Documents originated10 October 2012
Documents deposited16 October 2012
DepartmentForeign and Commonwealth Office
Basis of considerationExplanatory Memorandum of 18 October 2012
Previous Committee ReportNone; but see (33233-33235), (33246-33253) & (33268): HC 428-xli (2010-12), chapter 9 (9 November 2011) and HC 428-xliii (2010-12), chapter 20 (7 December 2011)
Discussion in Council11 December 2012 General Affairs Council
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested.

BACKGROUND

6.1  The Council is responsible for decisions on the admission of new Member States; the Commission's annual report has traditionally provided the basis for the Council to take stock and give direction to the accession negotiations and pre-accession reform priorities. The Commission Communication accordingly provides a statement of the EU's evolving enlargement strategy, an assessment of progress, and a look forward to the challenges and priorities for 2012.

6.2  The main document is the Enlargement Strategy and Main Challenges 2012-13. This is accompanied by a set of comprehensive Progress Reports on Iceland, Montenegro and Turkey (Candidate countries); and Macedonia, Bosnia and Herzegovina (BiH), Albania and Kosovo (aspirant countries).

6.3  The Progress Reports analyse the progress made by individual countries in meeting the Copenhagen criteria for membership, i.e. political and economic criteria, as well as the capacity to assume the obligations of membership. The political criteria require the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities. The economic criteria require a functioning market economy able to cope with the competitive pressure and market forces within the Union. The ability to assume the obligations of membership is based on progress in transposing and implementing the acquis (the body of EU law). For the purposes of accession negotiations this is split into 35 chapters ranging from the free movement of goods, through the judiciary and fundamental rights, to the environment and financial control. The reports on formal candidate countries Iceland, Montenegro and Turkey detail progress on each of the accession negotiation chapters. For the remaining countries, the reports cover a wide range of issues in line with the political and economic reforms required by their Stabilisation and Association Agreements (SAAs) with the European Union (for all except Kosovo, which does not have an SAA, but which is part of the Stabilisation and Association Dialogue).

6.4  This year, the Commission has also produced two related Communications on:

—  a Feasibility Study for an SAA between the European Union and Kosovo, which covers similar ground, while also assessing Kosovo's readiness to negotiate an SAA; and

—  the Main Findings of the Comprehensive Monitoring Report on Croatia's state of preparedness for EU membership, as part of its pre-accession monitoring.

6.5  This latter is the second such report, the first (interim) monitoring report having been published in April 2012. In view of the imminent Second Reading of the Bill on Croatia's accession treaty,[32] we have dealt with this second Commission Communication in a separate Report.[33]

THE MAIN COMMISSION COMMUNICATION: "ENLARGEMENT STRATEGY AND MAIN CHALLENGES 2012-2013"

6.6  In its introduction, the Commission makes the case for continuing the enlargement process in familiar terms: enlargement policy continues to contribute to peace, security and prosperity on our continent; the prospect of accession drives political and economic reforms; it reinforces the Union's political and economic strengths, demonstrating its continued capacity as a global actor; the most recent enlargement provided mutual benefits of deeper trade integration, a larger internal market, economies of scale and expanded investment and job opportunities.

6.7  The Commission also notes that strengthening the rule of law and democratic governance is central to the enlargement process. It thus addresses issues of direct concern to citizens in both the EU and the enlargement countries of justice, security and fundamental rights. Previous enlargements highlight the importance of an increased focus on these areas and further improving the quality of the process, with a view to creating an environment in south-east Europe conducive to growth and attracting investment, increased regional cooperation and dealing with common challenges such as the fight against organised crime and corruption. The Commission's proposed new approach to judiciary and fundamental rights and justice, freedom and security as part of the negotiating framework for Montenegro will ensure that "the rule of law is firmly anchored at the heart of the accession process, laying the foundation also for future negotiations."

6.8  The Commission notes that the enhanced economic, financial and political integration within the EU resulting from challenges facing the Eurozone will also have to be taken into account in the enlargement process. Strengthening the enlargement countries' resilience to crisis is, the Commission says, a matter of joint interest; a stronger, enlarged EU will be better placed to address these challenges. The dynamism of the Turkish economy, its geopolitical role, contribution to energy security and young population "represent an opportunity for both Turkey and the EU in a context of an accession perspective." Addressing risks of instability in the Western Balkans "is manifestly in our joint interest"; strengthening stability and democracy in south-east Europe is also an investment in deep and sustainable democracy in the EU's wider neighbourhood. The renewed consensus on enlargement, agreed by the European Council, remains the basis for the EU's enlargement policy.

6.9  Maintaining the credibility of the enlargement process is crucial to its success, involving:

—  ensuring that reforms in enlargement countries meet the established criteria, in particular the Copenhagen criteria;

—  ensuring the support of Member States and their citizens;

—  fostering understanding and informed debate on the impact of enlargement policy, particularly at a time when the EU faces major challenges;

—  solid track records of reform implementation in the rule of law area;

—  deeply entrenched reforms, with the aim of irreversibility;

—  showing that the EU delivers on its commitments once the conditions are met (the imminent accession of Croatia, the start of accession negotiations with Montenegro in June and candidate status for Serbia in March) encourages all the countries of the region to step up their own preparations for eventual EU membership.

6.10  Positive results have also been achieved in the former Yugoslav Republic of Macedonia, where the High Level Accession Dialogue has led to a sharper focus on reforms by the authorities; in Albania, where dialogue between government and opposition has allowed the political stalemate to be largely overcome with the adoption of electoral and parliamentary reforms; in Iceland, where accession negotiations are progressing well; and with Turkey, which "has shown active support of the new positive agenda announced last year and launched by the Commission in May 2012."

6.11  At the same time, reforms are still pending in most countries. Human rights, good governance, the rule of law, including the fight against corruption and organised crime, administrative capacity, unemployment, economic reform and social inclusion remain major challenges. There is often a need to take more responsibility for reforms and to muster the necessary political will to move forward. Strengthening freedom of expression and independence of the media remains a major challenge. The accession process remains at times negatively affected by bilateral issues.

6.12  Against this background, the Communication assesses the current state of the EU's enlargement agenda. Based on the accompanying in-depth country analyses,[34] it takes stock of what these countries have achieved preparing for membership, where they stand today, assesses their prospects for the coming years and makes a number of recommendations. As in previous years, a number of key challenges are given particular attention, as is the support provided by the EU to the enlargement countries, including through the Instrument for Pre-Accession Assistance.

THE GOVERNMENT'S VIEW

6.13   In his Explanatory Memorandum of 18 October 2012, the Minister for Europe (Mr David Lidington) welcomes the Commission's reports and judges them:

"to represent a fair and balanced assessment of progress and the main challenges, setting out a credible and useful basis for developing our approach to EU enlargement policy over the coming year. While highlighting significant achievement through 2012, the package recognises that in all cases there is still much to do. The Strategy emphasises that the rule of law is at the centre of the enlargement process, with an emphasis on strict but fair conditionality, ensuring that enlargement remains a firm, credible policy. "

6.14   The Minister then says that:

"The Government is committed to concluding accession negotiations only when the UK is confident that a candidate country is able to meet the political, economic and legal obligations of membership. We therefore welcome the Commission's assessments which are in line with these principles."

6.15  The Minister notes the Strategy and reports provide the basis for in-depth discussion in the relevant Council working groups, which will culminate in the adoption of conclusions on EU enlargement at the 11 December General Affairs Council, with any formal decisions to be endorsed at the 14 December European Council:

"The Government aims to use the enlargement process as a tool to promote reform and reconciliation. In that light we have emphasised to countries the need to study the Commission's assessments, and to make maximum progress before December. The Government therefore intends to take a final view on the recommendations of the Commission at a later date, in light of any further developments achieved in each country and any further reporting from the Commission."

6.16  The Minister then helpfully summarises the main conclusions and recommendations of the enlargement strategy, and his comments thereon; and a brief summary for each country, flagging the conclusions in the Strategy and the individual Country Progress Report, and noting the Government's initial position (which in this Report is set out in italics beneath each relevant section; other emphasis is the Minister's).

ENLARGEMENT STRATEGY AND MAIN CHALLENGES 2012-2013

"The Strategy sets out an enlargement policy that continues to be based on the principles of consolidation of commitments, fair but rigorous conditionality, and good communication with the public, alongside considerations of the EU's capacity to integrate new members.

"It notes the recent difficulties in the Eurozone and underlines the relevance of enlargement to consolidating reforms that contribute to stability and growth across Europe. It underlines the need to maintain the credibility of the enlargement process, to ensure that enlargement countries meet the criteria before membership, and to maintain the support of existing Member States through the principle of progress based on each country's own merits. And it notes that the recent progress of Croatia (towards accession), Montenegro (opening accession negotiations) and Serbia (granted candidate status) in 2012 shows that the EU delivers once conditions are met. The report also notes other significant progress in 2012, including with Turkey under its "positive agenda" launched in May; good progress in Iceland's negotiations; the High Level Accession Dialogue (HLAD) with Macedonia; and further progress by Albania and Kosovo.

"Despite this, the Strategy acknowledges the many reforms that remain major challenges in most countries, with more responsibility and political will necessary to ensure momentum. Strengthening the rule of law is identified as a continuing major challenge and a central condition for countries moving towards EU membership. Corruption in particular remains a serious problem and the fight against organised crime remains an important priority for many of the enlargement countries. The Strategy notes as a source of serious concern negative developments in the area of freedom of expression in a number of countries. The report also highlights the bilateral issues that can limit progress, for example Macedonia's name dispute with Greece, and expresses regret at Turkey's refusal to deal with the Cypriot Presidency in the latter half of 2012.

"The Strategy emphasises the need to:

a)  "Put the rule of law and fundamental rights at the core of enlargement policy;

b)  "Ensure regional cooperation and reconciliation in the Western Balkans;

c)  "Address economic challenges through strengthening the economic recovery in the enlargement countries and ensuring strong economic governance;

d)  "Maintain the momentum of the enlargement process through innovative approaches including country-specific approaches where needed, such as the HLAD for Macedonia; the positive agenda with Turkey; the High-Level Dialogue on the Accession Process (HLDAP) with BiH; and the Structured Dialogue on the Rule of Law with Kosovo;

e)  "Continue support for enlargement countries through financial and technical support via the Instrument of Pre-accession Assistance (IPA).

"The Strategy also advocates greater focus on communicating the benefits of enlargement within the EU itself, by providing further information and tangible evidence to enable wider recognition of the benefits and the transformational power of enlargement. The Strategy notes that in enlargement countries, the benefits of the process can be demonstrated to citizens before accession through participation in EU programmes for all enlargement countries (including Kosovo), visa-free travel, and support to civil society activities.

"The Government supports the membership aspirations of any European country that shares our values and the right of these countries to progress towards membership on the basis of meeting the conditions for accession. The Government therefore welcomes the Strategy's emphasis on ensuring momentum in the enlargement process, and on ensuring the continued credibility of the process through the increased focus on promoting the rule of law and tackling difficult issues such as corruption early in the negotiating process under the "new approach" endorsed by the Council in December 2011. The front-loading of rule of law issues in Montenegro's accession negotiations shows that the EU has learned lessons from previous enlargement processes. The Government equally welcomes the focus on regional co-operation and good economic governance as essential elements of an evolving enlargement process."

COUNTRY SPECIFICS

"The Strategy looks to address the specific challenges above, through:

—  "The accession of Croatia, expected on 1 July 2013, following ratification of the Accession Treaty in each EU Member State;

—  "progress in Montenegro's accession negotiations, ensuring that Montenegro develops a track record in the area of rule of law, under the "new approach" that front-loads the rule of law chapters (Chapter 23 and 24) in the negotiation process;

—  "Recommending (for a fourth time) that accession negotiations are opened with Macedonia;

—  "Opening accession negotiations with Serbia once Serbia has achieved the necessary degree of compliance with the membership criteria, in particular the key priority of a visible and sustainable improvement of relations with Kosovo;

—  "Recommending Albania be granted candidate status subject to further progress on judicial and public administration reform and revision of parliamentary rules of procedure, and taking into account commitment on organised crime and corruption;

—  "Urging that the conditions be met for the entry into force of Bosnia and Herzegovina's Stabilisation and Association Agreement (SAA) and for the submission of a credible membership application, in parallel with continued progress to strengthen its institutions to ensure stable internal governance;

—  "Concluding that a Stabilisation and Association Agreement (SAA) can be concluded with Kosovo, regardless of different Member State views on status. Setting out plausible conditionality for the opening of negotiations on an SAA;

—  "Recommending steps to bring fresh dynamism to Turkey's accession process including through technical working groups established under the 'positive agenda', closer EU/Turkey foreign policy dialogue, and steps towards visa liberalisation in return for Turkey's signature of the EU Readmission Agreement;

—  "Continuing progress in Iceland's accession negotiations and enhancing EU communication with the Icelandic public to inform the domestic debate."

CROATIA[35]

MONTENEGRO

STRATEGY REPORT

"The Commission notes that the opening of accession negotiations with Montenegro in June 2012 reflected Montenegro's continued progress on key reforms, and that Montenegro continues to sufficiently meet the political criteria for membership of the EU. Montenegro continues to meet its obligations under the Stabilisation and Association Agreement and has made good progress in the acquis chapters covering public procurement, transport policy, statistics and science and research. Some further progress has been made towards a functioning market economy.

"The Commission notes that Montenegro needs to invest further effort to develop a track record in the area of the rule of law, particularly as regards: organised crime and corruption; seeing through constitutional changes to safeguard judicial independence; improvements to the judiciary's accountability; and ensuring sufficient administrative capacity to implement the EU acquis. Further effort is needed on the acquis chapters covering free movement of workers and capital, company law, food safety, veterinary and phytosanitary policy, taxation, enterprise and industrial policy, environment and climate change and financial and budgetary provisions. As regards progress towards a functioning market economy, the restructuring of the metal industry, liquidity problems, the weak labour market and rule of law need to be tackled.

"In line with the new approach to enlargement, screening has already taken place for Chapter 23 (Judiciary and Fundamental Rights) and Chapter 24 (Justice, Freedom and Security). Screening for other chapters has begun and is expected to conclude in summer 2013.

MONTENEGRO PROGRESS REPORT

"The report provides an in depth assessment of Montenegro's progress against the criteria. Montenegro has continued to make progress against the POLITICAL CRITERIA but has more to do in some areas:

—  "Democracy and the rule of law: the revised electoral law has been put into practice and the capacity of parliament and its transparency have been further improved. Government policy-making has further improved but administrative capacity for the EU integration process remains to be substantially strengthened. Public administration reform has continued. Progress on the judiciary has been made through publication of court rulings and reduction of backlogs but constitutional reform to ensure judicial independence is still outstanding and further efforts to ensure merit-based appointments and progression are needed. Corruption remains a concern, as although implementation of new legislation is progressing, a track record of investigations, prosecution and convictions, including at high levels, is needed.

—  "Human rights and protection of minorities: the administrative and legal framework for civil and political rights and its enforcement have improved. Ombudsman powers to act against ill-treatment need to be enhanced and prison conditions improved. Old cases of violence against journalists still require attention. The authorities have demonstrated a more positive attitude to social and economic rights but further capacity to enforce them is needed. A strategy for Roma, Ashkali and Egyptian population has contributed to protection of minority and cultural rights but efforts to ensure their social inclusion are needed.

—  "Regional issues and international obligations: Montenegro continues to meet its obligations under the Stabilisation and Association Process as regards cooperation with the International Criminal Tribunal for the former Yugoslavia and regional cooperation. It maintains broadly good relations with neighbours though some bilateral issues, mainly regarding border demarcation, remain unaddressed.

"As regards the ECONOMIC CRITERIA, the economy is in the process of recovery but the performance of the construction and industrial sectors is weak. Though macroeconomic stability has been broadly maintained, risks and uncertainties persist due to the high reliance on external financing and the indebtedness of the aluminium plant. Privatisation in a number of sectors has resumed after a two-year pause and restructuring of network industries is opening up markets. Despite some improvements in the administration for setting up businesses, difficulties in obtaining licences and credit, and weaknesses in civil enforcement and corruption negatively affect the business environment. The financial sector needs strengthening and although deposits are flowing back to banks, lending and capital are declining. Efforts have been made to address shortcomings in human and physical capital though further investment is needed. State subsidies remain limited but guarantees are a risk to public finances.

"As regards Montenegro's ABILITY TO TAKE ON THE OBLIGATIONS OF MEMBERSHIP, preparations are moderately or well advanced for the majority of chapters. Alignment is less well advanced and requires further effort on the chapters covering free movement for workers, agriculture and rural development, food safety, veterinary and phytosanitary policy, fisheries, energy, taxation, enterprise and industrial policy, trans-European networks, environment and climate change, financial control and financial and budgetary provisions. There has been progress on external borders although security of the blue border and the border with Kosovo remains to be substantially strengthened.

"The Government agrees with the Commission's assessment of areas for further improvement and looks forward to detailed discussions regarding rule of law when chapters 23 and 24 are tackled early in the negotiations process. The Government is pleased to be supporting Montenegro's efforts on rule of law reform, for example through advice under EU twinning.

MACEDONIA

STRATEGY REPORT

"The Commission notes that Macedonia (referred to throughout the report, as in all EU contexts, as fYRoM) continues to sufficiently meet the political criteria and that the High-Level Accession Dialogue has accelerated reforms, leading to substantial progress in key policy areas. These include improving the legislative framework for elections, decriminalisation of defamation and public administration, efficiency drives within the judiciary and a review of the Ohrid Framework Agreement.

"However, the Commission notes that the reform momentum needs to be sustained in all areas, in particular to ensure implementation, and that continued focus is needed on rule of law, freedom of expression, inter-ethnic relations, judicial independence and impartiality and tackling corruption. Maintaining good neighbourly relations, including resolving the name dispute with Greece, remains essential.

"The Commission recommends for a fourth time that accession negotiations be opened for Macedonia, stating that this would not only consolidate reforms and strengthen interethnic relations but also have a positive effect on the wider region. The Commission notes its readiness to present without delay a draft negotiating framework taking into account the need to solve the name issue at an early stage. The Commission also maintains its proposal of moving to the second stage of Macedonia's SAA.

MACEDONIA PROGRESS REPORT

"The report provides an in depth assessment of Macedonia's progress against the criteria. Macedonia continues to sufficiently meet the POLITICAL CRITERIA and the High Level Accession Dialogue has delivered good progress across a range of areas, although it notes that still several areas require further attention:

—  "Democracy and the rule of law. Political dialogue has been maintained, with parliamentary support for the accession process. Draft electoral reform proposals are being considered, but the government needs to implement fully OSCE/ODIHR recommendations. A mature government response to inter-ethnic incidents must be built on to strengthen inter-ethnic relations and promote reconciliation. Some steps to reform public administration have been taken, but additional efforts are needed to guarantee the transparency and accountability of public administration, including respect for merit-based recruitment and equitable representation. Further efforts to reform the judiciary are required, including to guarantee its independence and impartiality. The legislative framework for tackling corruption and organised crime is in place, but a track record of prosecutions and convictions has yet to be established.

—  "Human rights and protection of minorities. There has been progress on ratification of international human rights instruments. Civil and political rights are broadly respected although further work on prison reform is needed. There are widespread concerns about lack of pluralism and self-censorship in the media. Protection of women's and children's rights saw some progress, although in general there is a need for better protection of vulnerable groups e.g. those with disabilities or the LGBT community. Concrete follow up to the review of the Ohrid Framework Agreement will be essential to further improving inter-ethnic relations, which remain of concern.

—  "Regional issues and international obligations. Macedonia cooperates fully with the ICTY, takes an active part in regional initiatives and overall has constructive bilateral relationships with neighbouring states. The relationship with Greece, while good in the economic and tourism spheres, is marred by the name dispute. On this, talks should be pursued under the auspices of the UN with renewed vigour, and inflammatory actions and statements should be avoided. There is also a need for greater dialogue with Bulgaria.

—  "Macedonia is well advanced in meeting the ECONOMIC CRITERIA and has maintained macro-economic stability. However there are areas of concern, including around unemployment, low quality of spending decisions and poor overall financial management.

—  "As regards Macedonia's ABILITY TO TAKE ON THE OBLIGATIONS OF MEMBERSHIP, there is good alignment in a number of areas, including free movement of goods, competition policy and food safety. However in several other areas, such as the environment, social policy and coordination of structural instruments, the degree of alignment is weaker.

"The Government welcomes the Commission's assessment of Macedonia's progress, particularly that the High Level Accession Dialogue has spurred good progress in several areas. The Government has this year targeted bilateral programme support at the areas covered by the High Level Accession Dialogue. While there is a need for continued focus, for example on rule of law and freedom of expression, the Government agrees with the Commission's recommendation that accession negotiations should be opened with Macedonia."

SERBIA

STRATEGY REPORT

"The Commission notes that the stability and functioning of institutions was maintained following elections in 2012 and that despite the overall slowdown of legislative activity the elections caused, some progress was made in most areas.

"In particular, Serbia maintained full cooperation with the International Criminal Tribunal for the Former Yugoslavia, continued to meet its obligations under the Interim Agreement/Stabilisation and Association Agreement, made good progress on the acquis chapters covering company law, intellectual property rights, statistics and custom union, and achieved some results in the dialogue with Kosovo.

"However, the Commission notes that Serbia needs to pay particular attention to the rule of law (notably the judiciary), the rights of vulnerable groups, the independence of institutions such as the central bank, strengthening relations with neighbours and, particularly, the key priority of taking steps towards a visible and sustainable improvement of relations with Kosovo (see below). The acquis chapters covering judiciary and fundamental rights, justice, freedom and security, agriculture and rural development, environment and climate change and financial control require further effort and significant restructuring is needed to move towards a functioning market economy.

"The Commission will present a report on the opening of accession negotiations when it assesses Serbia has achieved the necessary degree of compliance with the membership criteria, in particular, the key priority of steps towards a visible and sustainable improvement in relations with Kosovo. The Commission calls on Serbia to re-engage in the EU-facilitated dialogue with Kosovo, implement agreements already reached in that forum, and to address the problems in northern Kosovo while respecting Kosovo's territorial integrity. The Commission underlines that an improvement in relations is needed in order to enable both countries to make progress towards the EU, while avoiding that either can block the other.

SERBIA PROGRESS REPORT

"The report provides an in depth assessment of Serbia's progress against the criteria. Serbia has made progress against some aspects of the POLITICAL CRITERIA but not others:

"Democracy and the rule of law. Serbia held free, fair and peaceful elections and the new government has committed to pursuing EU integration. The Ombudsman Offices and the State Audit Institution have improved their capacities. However, many areas of weakness are identified including: the government's use of urgent measures to change the law governing the central bank; ministries disregarding or challenging the recommendations of independent regulatory bodies; an inconsistent approach to consulting stakeholders and monitoring the implementation of legislation; and little progress in the areas of public administration reform, judiciary and anti-corruption.

"Human rights and protection of minorities. The legislative framework is in place and some positive steps have been taken to improve its implementation and the situation of minorities. Further efforts are needed to tackle discrimination, improve social dialogue, speed up the implementation of the media strategy and support the socio-economic development of a number of regions.

"Regional issues and international obligations. Serbia generally complies with its international obligations, has broadly good relations with neighbours and has continued to cooperate with the International Criminal Tribunal for the former Yugoslavia, though it must intensify efforts to bring to justice networks which supported fugitives. However, further effort is needed to meet the key priority of taking steps towards a visible and sustainable improvement in relations with Kosovo. Though new results were achieved in the EU-facilitated dialogue with Kosovo over the last year, implementation of agreements was delayed and uneven. The new government has recently taken steps towards improving implementation by revising its interpretation of the agreement on Kosovo's participation in regional fora and signing the protocol on Integrated Border/Boundary Management, but more effort is needed. The Commission underlines that fulfilment of the key priority on Kosovo is key to moving to the next phase of Serbia's EU integration. Serbia needs to continue to make a positive and constructive contribution to regional cooperation and reconciliation, with particular reference to Bosnia and Herzegovina.

"As regards the ECONOMIC CRITERIA, reforms have broadly stalled due to the election period. Economic recovery is fragile (Serbia's economy is contracting) and significant trade and current account deficits need tackling. Government debt went above the legally binding limit in 2011 and continued to increase in 2012. Unemployment and public sector reform are major challenges and inflation has been volatile. Price liberalisation and privatisation have stalled. Although some steps have been taken to improve the business environment, red tape, legal unpredictability, corruption and unclear property rights remain problematic. The banking sector remained well-capitalised and liquid but risks remain. Trade integration with the EU remained high but the state continues to significantly influence competitiveness through aid.

"As regards Serbia's ABILITY TO TAKE ON THE OBLIGATIONS OF MEMBERSHIP, preparations are moderately advanced for many chapters. Alignment is less well advanced and requires further effort on the chapters covering: judiciary and fundamental rights, justice, freedom and security, environment and climate change, agriculture and rural development, financial control and financial and budgetary provisions."

"The Government agrees with the Commission's assessment of Serbia's progress, in particular that the rule of law requires further strengthening and that progress is required on domestic reform priorities. The Government also welcomes the reference to Serbia's regional cooperation with other neighbouring countries, particularly as a basis for improved relations with Bosnia and Herzegovina. The Government continues to support fully the key priority of visible and sustainable improvement in relations with Kosovo and underlines that it is important that Serbia makes progress on this, including addressing the problems in northern Kosovo, as an essential pre-requisite for the next step of accession negotiations."

ALBANIA

STRATEGY REPORT

"The Commission notes that the November 2011 agreement which ended a long political stalemate has improved political dialogue and allowed for progress in core reforms. The Commission assesses Albania's progress against the twelve key priorities set for opening accession negotiations in the Commission's 2010 Opinion. The Commission assesses that Albania has met four of these key priorities, concerning the proper functioning of parliament, adoption of laws requiring a reinforced majority, the appointment of the Ombudsman and electoral reform. Significant steps are noted, such as the lifting of immunities for high-level officials and judges and the seizure of criminal assets. The Commission assesses that Albania has also made progress towards meeting the key priorities on public administration reform, the treatment of detainees, justice reform, property reform and anti-discrimination policies, inter alia.

"However, the Commission notes that further progress is required to meet the remaining key priorities, notably concrete steps to tackle corruption, reform of the judiciary to ensure its independence, completion of public administration reform, revision of the parliamentary rules of procedure and implementation of human rights commitments including protection of Roma rights. The Commission stresses the need to strengthen further democratic institutions and maintain momentum on reforms, especially around rule of law. Particular emphasis is placed on implementation.

"The Commission recommends that the Council should grant Albania candidate status, subject to completion of specified measures in judicial and public administration reform and revision of the parliamentary rules of procedure. The Commission will report to the Council as soon as the necessary progress has been made. The Commission, in its report, will also take into account the commitment demonstrated by Albania in tackling corruption and organised crime.

"The Commission also sets out what further progress is needed by Albania before it can recommend opening accessions. It highlights the need to see sustained implementation of commitments already undertaken and completion of the remaining key priorities. Parliamentary elections to be held in 2013 are highlighted as an important test of the new electoral law, with continued cross-party commitment to reform and successful elections pre-conditions for any recommendation to open accession negotiations.

ALBANIA PROGRESS REPORT

"The report provides an in depth assessment of Albania's progress against the criteria. Albania has made progress against some aspects of the POLITICAL CRITERIA but in others further progress is required:

—  "Democracy and the rule of law. Political dialogue since the November 2011 political agreement has improved, allowing for progress in key reforms such as amending the electoral code, appointing an Ombudsman, and the adoption of most pending laws requiring a reinforced majority, as well as the general improvement in the functioning of Parliament. Revised parliamentary rules of procedure need to be adopted. The Presidential elections were conducted in line with the Constitution but the political process could have been more inclusive. There was some progress in the work of the government, including coordinating the EU integration process but improvements are needed in the planning process for aligning with the acquis and in decentralisation. The adoption of Laws on Administrative Courts and appointment of the Ombudsman have brought progress in public administration reform, but amendments to the Civil Service Law must be adopted and the professionalism and accountability of the civil service need to be improved. The judicial reform strategy has begun to be implemented but important legislation enhancing the independence of the judiciary must be finalised, and court organisation and case backlogs continue to cause concern. Despite some progress in tackling corruption, there is no track record of convictions at all levels and corruption continues to be a serious problem.

—  "Human rights and protection of minorities. There has been progress in improving the treatment of detainees and conditions of detention. Progress in protecting the rights of women, children and Roma has been uneven. Discrimination against vulnerable groups such as the LGBT and Roma remains a problem.

—  "Regional issues and international obligations. Albania currently chairs the Council of Europe, takes an active part in regional initiatives and acts as a constructive partner in the region, with good bilateral relationships with neighbouring states.

"As regards the ECONOMIC CRITERIA, Albania has maintained macroeconomic stability and monetary policy has kept inflation stable. However government debt is high and rising, and essential structural reforms (e.g. in tax administration) are missing.

"As regards Albania's ABILITY TO TAKE ON THE OBLIGATIONS OF MEMBERSHIP, there has been progress in a number of areas, including free movement of goods, consumer and health protection and enterprise and industrial policy. However in several other areas, such as public procurement, intellectual property law and social policy, there has been little progress.

"The Government welcomes the Commission's assessment of Albania's progress and agrees that, while progress has been made, further steps are required. The Government also agrees that there must be greater efforts around implementation. The Government looks forward to the further report that the Commission will provide when the necessary progress has been made and will take a final decision on Albania's readiness for candidate status once that report has issued.

"The Government will continue to urge Albania to make the necessary progress and support these efforts, including through project work in support of the rule of law".

BOSNIA AND HERZEGOVINA

STRATEGY REPORT

"The Commission notes that there has been limited progress in meeting EU criteria in this period. The pace of reform has been uneven. The formation of a state-level government and the adoption in February of two EU-related laws, on State Aid and the Census, were positive developments. However, the Commission highlights that Bosnia and Herzegovina remains in breach of the Interim Agreement pending entry into force of the Stabilisation and Association Agreement (SAA). The Strategy notes also that a High Level Dialogue on the Accession Process was held in June, at which key representatives of Bosnia and Herzegovina agreed a road map for the entry into force of the SAA.

"The Commission expresses concern that there has been little progress in improving the effectiveness of institutional structures, and calls for the adoption of an effective co-ordination mechanism as a priority, to allow the country to speak with one voice on EU matters. The Commission calls also for a credible process to be put in place to amend the Constitution in line with the ECtHR decision on the Sejdic-Finci case.

"The Commission notes that the enhancement of the European Union Special Representative's role has allowed the EU to take the lead in a number of areas. The EU has opened offices in Brcko (where the Office of the High Representative has suspended supervision and closed its office) and in Mostar, and strengthened its presence in Banja Luka.

BOSNIA AND HERZEGOVINA PROGRESS REPORT

"The report provides an in depth assessment of Bosnia and Herzegovina's progress against the criteria.

"A High Level Dialogue on the Accession Process was launched in Brussels in June, with Bosnian political leaders agreeing a roadmap on EU integration to enable the entry into force of the SAA and the submission of a credible membership application. The first deadline in the roadmap was not met.

"Bosnia and Herzegovina has made limited progress against the POLITICAL CRITERIA:

—  "Democracy and the rule of law. Delays in setting up the State-level Council of Ministers and disagreements among the parties of the governing coalition hampered legislative activities. There has been little progress on improving the effectiveness of institutional structures at all levels of government and policy-making continues to be hampered by poor co-ordination. There was limited progress on judicial reform, although there was constructive participation in the Structured Dialogue on Justice. Corruption remains prevalent. Some political representatives have questioned Bosnia and Herzegovina's capacity to function as a country and are calling for an Entity-level EU agenda separate from the Bosnia and Herzegovina state. Bosnia and Herzegovina needs an effective coordination mechanism so that the country can speak with one voice on EU matters.

—  "Human rights and protection of minorities. Civil and political rights are broadly respected, along with protection of minorities. Despite an undertaking at the High Level Dialogue in June, political leaders have not yet established a credible process for harmonising the Constitution with the ECHR decision of December 2009 on Sejdic-Finci, so as to eliminate discrimination against citizens on grounds of their ethnicity.

—  "Regional issues and international obligations. There has been good progress on refugees. Cooperation with the ICTY has remained satisfactory. Outstanding issues, including border, trade and transit issues need to be addressed as a matter of urgency in view of Croatia's accession.

"As regards the ECONOMIC CRITERIA, Bosnia and Herzegovina has made little further progress towards a functioning market economy. The business environment is affected by administrative inefficiencies and the weak rule of law. Unemployment remains high. Progress in implementing reforms is slow, and delays in adopting the State-level budget and the absence of a medium-term fiscal framework have undermined the sustainability of public finances.

"Bosnia and Herzegovina has made limited progress towards the ABILITY TO TAKE ON THE OBLIGATIONS OF MEMBERSHIP. There have been positive steps on border management, visa liberalisation and competition. However in other areas there has been little or no progress. The country remains in breach of the Interim Agreement. The Commission calls for the establishment of an EU co-ordination mechanism as a priority.

"The Government welcomes the Commission's assessment. The Government agrees that progress on key reforms has been uneven and that, following government formation and progress on two areas of legislation early in the year, further progress has been limited. The Government remains committed to Bosnia and Herzegovina's European perspective and underlines that Bosnia and Herzegovina can only make progress towards the EU as a single, sovereign state. The Government agrees that early progress on Sejdic-Finci is critical and urges early resolution of the current political stalemate to allow the SAA to come into force. Early progress on the EU coordination mechanism is also necessary, as is urgent action to prepare for the impact of Croatia's EU accession. The Government will continue to support Bosnia and Herzegovina in these efforts including through programme activity."

KOSOVO

STRATEGY REPORT

"The Commission has adopted a Communication on a Feasibility Study on Kosovo's readiness to open negotiations on a Stabilisation and Association Agreement (SAA) with Kosovo. It confirms that an SAA can be concluded with Kosovo, even where EU Member States have differing views on status.

"The Commission will propose negotiating directives for Kosovo once further progress has been made on four specific short term priorities in the areas of rule of law, public administration, protection of minorities and trade.

"The Commission also notes that a visible and sustainable improvement in relations between Kosovo and Serbia is important and urges progress on addressing the problems in northern Kosovo while respecting the needs of the local population.

FEASIBILITY STUDY

"The Communication on the Feasibility Study assesses whether Kosovo is ready to negotiate and subsequently implement an SAA and identifies priority issues to be addressed before negotiations can start. Before negotiations can be concluded, progress will be needed on Rule of Law; Judiciary; Public Administration; Electoral Reform and the Assembly; Human and fundamental rights; Protection of minorities; Trade and internal market issues; and Phytosanitary and veterinary issues.

"On POLITICAL ISSUES, the functioning of democratic institutions and the respect for the rule of law have been consolidated. The necessary institutions have been established. Kosovo continues to face major challenges on the rule of law including judicial reform and corruption. Kosovo needs to work closely with the EULEX Rule of Law mission. There remains work to be done on public administration. To meet its obligations under an SAA, Kosovo needs to promote a multi-ethnic Kosovo, by creating conditions for Kosovo Serbs to feel part of Kosovo's future and to facilitate return for persons wishing to do so. The Commission also expects that Kosovo will continue to implement decentralisation, notably in the new municipalities and thereby help the integration of Kosovo Serbs.

"On ECONOMIC ISSUES, Kosovo has implemented the initial essential reforms towards establishing a fully functioning market economy. This is sufficient to establish contractual relations with the EU.

"Kosovo is READY TO OPEN NEGOTIATIONS ON AN SAA once further progress has been made on:

—  "Rule of law, particularly on organised crime and corruption, including launching investigations and ensuring continuous good cooperation with EULEX;

—  "Public administration;

—  "Protection of minorities, including ensuring the existence of a body enabling direct consultation on the promotion and protection of religious and cultural heritage with religious communities, notably the Serbian Orthodox Church;

—  "trade, including putting in place a mechanism to lead and coordinate negotiations.

"Kosovo will be ready to assume the obligations of an SAA once the closing benchmarks of such a negotiation have been met, on: Rule of Law; Judiciary; Public Administration; Electoral Reform and the Assembly; Human and fundamental rights; Protection of minorities; Trade and internal market issues; and Phytosanitary and veterinary issues.

"The Government remains fully committed to Kosovo's EU perspective and supports the negotiation of an SAA once the above four conditions have been met. The Government agrees with the focus of opening conditionality and supports the message that Kosovo needs to demonstrate its commitment to the overall EU reform agenda. Implementation of legislation will be key. The Government will continue to support reform in Kosovo and outreach to ethnic minorities through use of programme funds. DfID will end its Kosovo programme in 2012."

TURKEY

STRATEGY REPORT

"The Strategy notes the continuing strategic importance of Turkey as a regional partner, and restates the EU's commitment to an active and credible accession process. Overall, the Strategy makes clear that Turkey continues to improve its ability to take on the obligations of membership but regrets that it has not been possible to open a new negotiating Chapter for two years, and notes with concern Turkey's refusal to cooperate with the Cypriot Presidency of the EU. The Strategy re-emphasises the benefits to both the EU and Turkey of closer economic and political links. It positively notes Turkey's engagement with the positive agenda, which was launched in May 2012 with the aim of supporting and reinvigorating the formal accession negotiation process. It notes that progress has been made on JHA and energy, and on foreign policy issues through the enhanced EU/Turkey political dialogue. The Strategy further commends Turkey's current robust economic growth and dynamism, which it attributes to prudent macro-economic policies and reforms. It notes that some further work needs to be done to sustain progress.

"The Strategy criticises a negative trend on human rights, noting concerns regarding the respect of fundamental rights, especially freedom of expression and the Kurdish issue. However, it recognises progress on judicial reform, through the third judicial reform package, and commends the open and consultative constitutional reform process.

"The Strategy repeats its encouragement of Turkey to increase its commitment to talks to find a comprehensive settlement to the Cyprus problem and notes that Turkey must fully implement the Additional Ankara Protocol as a key step towards good neighbourly relations.

TURKEY PROGRESS REPORT

"The progress report is less positive overall than recent previous reports. It recognises a number of steps forward, while noting several areas where further work is needed. The report notes the continuing strategic importance of Turkey as a regional partner, and restates the EU's commitment to an active and credible accession process.

"The Commission flags the successes of the positive agenda and enhanced EU/Turkey political dialogue. All eight working groups envisaged under the positive agenda have been established, and six have had their first meeting. The working groups aim to encourage alignment with the acquis. An agreement was reached between the Commission and Council on a gradual and long-term perspective to visa liberalisation in Turkey, conditional on Turkey's signing of the EU Readmission Agreement. The Commission and Turkey also decided to enhance their cooperation on energy issues. The enhanced EU/Turkey political dialogue delivered significant foreign policy successes and the report notes that Turkey is increasingly an active and influential partner.

"On Cyprus, the report commends Turkey's continued support for settlement negotiations and notes the need to remain focused on a comprehensive UN-administered solution. The report regrets Turkey's "freeze" of relations with the Cyprus Presidency and notes that Turkey must fully implement the Additional Ankara Protocol as a key step towards good neighbourly relations. It calls on Turkey to respect Cyprus' Exclusive Economic Zone.

"The report highlights the strength of the Turkish economy, with strong growth (8.5% in 2011) and falling unemployment (down to 9.8% in 2011). However, the report strikes a note of caution; highlighting Turkey's slowing economic growth, due to weaker domestic demand. It notes a growth in Turkey's current account deficit and concerns regarding increasing inflation, and notes that Turkey's fiscal and monetary policy mix proved relatively successful in the aftermath of the global economic crisis. The Commission judges that the EU/Turkey Customs Union continues to boost trade. Turkey is the EU's sixth biggest trading partner, while the EU is Turkey's biggest.

"The report highlights limited progress on human rights and notes that "concerns are growing regarding Turkey's lack of substantial progress towards fully meeting the political criteria". The report highlights persistent concerns over the rights of the defence, lengthy pre-trial detention and excessively long and catch-all indictments, especially in the alleged coup plot trials, Ergenekon and Sledgehammer. It calls for judicial proceedings to be speeded up.

"The report notes that the Kurdish issue remains a key challenge for Turkey's democracy and condemns all PKK terrorist attacks. It notes the continuing debate on cultural rights and regrets that — after much political debate — concrete progress was not made on the Kurdish issue. The report is particularly critical on freedom of expression, stating that the increasing incidence of violations raises serious concerns, and media and internet freedoms continue to be restricted in practice. It also notes a negative trend on torture and ill-treatment, prison conditions and impunity. The report notes that freedom of worship continues to be generally respected but calls for more support and protection for minority communities.

"However, the report commends Turkey's positive steps towards a new constitution through a democratic and participatory process, and welcomes the inter-party Conciliation Committee. The Commission welcomes progress on judicial reform, primarily through the third judicial reform package and the Ministry of Justice's Human Rights Action Plan. It calls upon Turkey to make swift progress on the fourth judicial reform package. The Commission further welcomes several important pieces of legislation adopted in Parliament over the last 12 months, including laws preventing violence against women, and the establishment of an Ombudsman Institution and a national human rights institution. The report broadly endorses the consolidation of civilian oversight of security forces.

"On justice, freedom, and security, the report notes limited progress on migration, asylum, visa policy and judicial cooperation in civil and criminal matters. It notes that some progress has been made in the area of cooperation in the field of drugs and uneven progress on police cooperation and the fight against organised crime. On energy, the report notes some progress on security of supply; on the gas and electricity internal energy market; and on renewable energy. It notes uneven progress on nuclear safety and radiation protection, and good progress on energy efficiency.

"While the tone is more negative than last year, the progress report is a relatively balanced assessment of Turkey's progress and rightly underlines the strategic importance of Turkey's EU accession process. The Government welcomes the Commission's emphasis on injecting new momentum into the accession process, including efforts under the "positive agenda" to promote political reforms, alignment with the acquis, dialogue on foreign policy, visas, mobility and migration, trade, energy, counter-terrorism, and participation in Community programmes. We agree with Turkish Europe Minister Egemen Bai that the positive agenda is a 'diplomatic success' while noting that it is a complement to the accession process, not a substitute.

"In the report, the Commission has signalled the need for Turkey to make further progress on issues such as freedom of expression. The Turkish Government has also recognised the need to make progress and has committed to making further reforms. We welcome the third judicial reform package and urge Turkey to implement it fully.

"We look forward to the fourth judicial reform package, and the completion of the constitutional reform process in 2013. The Government will continue to work closely with Turkey on these issues. Revitalising the EU accession process would provide added impetus for reform, building on the significant progress achieved over the past decade.

"The Government welcomes the Commission's view that Turkey needs to take further steps to combat irregular migration and organised immigration crime. The Government continues to work closely with Turkey on these matters and looks forward to continued cooperation. The Government welcomes the efforts made by Turkey in dealing with the increased irregular migration flow from Syria, and in particular notes that Turkey has successfully housed a vast number of Syrian refugees in its border regions.

"The Government agrees that Turkey is important for the EU's security and diversity of energy supply. We support Turkey and the EU's objective for Turkey to become a regional energy hub and an energy transit corridor to the EU. We were pleased to note the signing of an Inter-Governmental Agreement between Turkey and Azerbaijan regarding the transport of Azeri gas to the EU via Turkey in June 2012, and we look forward to progress being made towards a commercial decision regarding the proposed Trans-Anatolian pipeline (TANAP) in 2013."

ICELAND

STRATEGY REPORT

"The Strategy states that accession negotiations are progressing well with 18 (of 35) chapters opened and ten closed, and that Iceland continues to fully meet the POLITICAL CRITERIA. It notes that Iceland has already achieved a good level of alignment with the EU acquis, due to its membership of the European Economic Area (EEA). Iceland's track record in implementing its EEA obligations remains largely satisfactory, notwithstanding some shortfalls in areas such as free movement of capital and financial services. It notes that the EFTA Surveillance Authority (ESA) initiated proceedings against Iceland at the EFTA Court over the Icesave case. The strategy observes that while EU accession remains an issue of lively public debate in Iceland, its accession is a matter of mutual benefit, with growing common interests, including in renewable energy, climate change and with regard to the EU's Arctic policy.

ICELAND PROGRESS REPORT

"The report outlines that Iceland largely meets the ECONOMIC CRITERIA, in that it operates a functioning market economy. The report concludes that the work undertaken by the Icelandic government after the 2008 crisis has succeeded in re-establishing macro-economic stability and stronger than expected growth in Iceland. The report does, however, highlight that financial sector weaknesses and capital movement restrictions persist.

"The report states that Iceland's ABILITY TO MEET THE OBLIGATIONS OF MEMBERSHIP remains good, in particular due to Iceland's participation in the EEA. It does, however, flag that challenges remain, particularly in financial services, food safety and free movement of capital. The report notes that the EFTA Court is currently considering the Icesave case, where the Commission has intervened in support of the ESA's position.

"With regard to the Fisheries Chapter, the report notes that Iceland continues to apply a fisheries management system which has similar objectives to those pursued in the EU. The report also notes the failure to reach agreement on the management of North Atlantic mackerel stocks for 2012 between the coastal states involved: while the mackerel issue itself is not part of the accession process, the failure to find a solution has caused concern amongst Member States. In addition, the report notes that notwithstanding a high level of alignment with the EU acquis, full compliance remains to be achieved in a number of important areas including the lack of protection of whales.

"The Government welcomes the Commission's assessment of Iceland's progress and its reiteration of the benefit of Iceland's accession to the EU once remaining challenges have been addressed through the negotiation process. With regard to the Financial Services chapter, as it is an issue of EEA compliance, the Government will expect irreversible progress to have been made towards resolving the Icesave issue before the chapter can be closed. The Government shares the Commission's confidence that the EU will be able to present a package for the negotiations which takes into account Iceland's specificities while safeguarding the principles and acquis of the EU, allowing in due course for a fully informed decision by the Icelandic people."

CONCLUSION

6.17   The Minister talks of ensuring the continued credibility of the process through increased focus on promoting the rule of law and tackling difficult issues such as corruption early in the negotiating process, as endorsed by the Council in December 2011, and says that this "new approach… [of] front-loading of rule of law issues in Montenegro's accession negotiations shows that the EU has learned lessons from previous enlargement processes." In our separate Report on the last stages of Croatia's accession, we note that this suggests that the much-vaunted improvements to this crucial part of the process that were introduced to Croatia's accession process in response to the manifest failings before and after Bulgaria and Romania's accession, have been found wanting: otherwise, why the need to change them again so soon for future accessions? We accordingly consider this chapter of our Report to be relevant to the forthcoming Second Reading Debate on the Bill to ratify Croatia's accession treaty.

6.18  The Minister also says that Government plans to use the enlargement process as a tool to promote reform and reconciliation; has accordingly emphasised that countries need to study the Commission's assessments, and to make maximum progress before December; and therefore "intends to take a final view on the recommendations of the Commission at a later date, in light of any further developments achieved in each country and any further reporting from the Commission." We presume that the Minister is referring specifically to recommendations that: accession negotiations are opened with Macedonia; Albania be granted candidate status subject to further progress on judicial and public administration reform and revision of parliamentary rules of procedure, and taking into account commitment on organised crime and corruption; there are "steps to bring fresh dynamism to Turkey's accession process" including through technical working groups established under the "positive agenda", closer EU/Turkey foreign policy dialogue, and steps towards visa liberalisation in return for Turkey's signature of the EU Readmission Agreement; and negotiations are opened on an SAA with Kosovo. There are also areas in which the Commission is pressing Montenegro, Serbia and Bosnia and Herzegovina to make further progress.

6.19  We would like the Minister to update the Committee on his position on all these issues prior to the December GAC. In the meantime we shall retain the documents under scrutiny.


31   Under UNSCR 1244/99. Back

32   Bill to make provision consequential on the treaty concerning the accession of the Republic of Croatia to the European Union, signed at Brussels on 9 December 2011, and provision consequential on the Protocol on the concerns of the Irish people on the Treaty of Lisbon, adopted at Brussels on 16 May 2012; and to make provision about the entitlement of nationals of the Republic of Croatia to enter or reside in the United Kingdom as workers. See http://www.publications.parliament.uk/pa/cm201213/cmagenda/ob121018.htm. Back

33   See HC 86-xvii (2012-13). Back

34   Summaries and conclusions of the country reports are included as an annex to the present Communication. Back

35   See our separate Report on Croatia at HC 86-xvii (2012-13) of 24 October 2012. Back


 
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Prepared 2 November 2012