Documents considered by the Committee on 29 October 2014 - European Scrutiny Committee Contents


4 Enlargement Strategy and Main Challenges 2014-15

Committee's assessment Politically important
Committee's decisionNot cleared from scrutiny; further information requested
Document detailsCommission Communication on EU enlargement strategy and challenges 2014-15 and 2014 Country Progress Reports on Montenegro, Serbia, Turkey, the former Yugoslav Republic of Macedonia, Albania, Bosnia and Herzegovina, and Kosovo
Legal base
DepartmentForeign and Commonwealth Office
Document numbers(a) (36392), 14152/14, COM(14) 700; (b) (36393), 14153/14, SWD(14) 301; (c) (36394), 14154/14, SWD(14) 302; (d) (36395), 14155/14, SWD(14) 307; (e) (36396), 14156/14, SWD(14) 303; (f) (36397), 14157/14, SWD(14) 304; (g) (36398), 14158/14, SWD(14) 305; (h) (36399), 14159/14, SWD(14) 306

Summary and Committee's conclusions

4.1 The Commission's annual report has traditionally provided the basis for the Council to take stock and give direction to accession negotiations and pre-accession reform priorities (the Council being responsible for decisions on the admission of new Member States).

4.2 The Commission published its latest annual package of reports on 10 October 2014. The Commission Communication, "Enlargement Strategy and Main Challenges 2014-2015", provides a statement of the EU's evolving enlargement strategy, an assessment of progress, and a look forward to the challenges and priorities for 2015. This is accompanied by the customary set of comprehensive Progress Reports for each of the enlargement countries (including candidate and aspirant countries). Iceland remains a candidate country, but its government decided to suspend accession negotiations in 2013. The other candidate countries are Albania, Macedonia, Montenegro, Serbia and Turkey. Potential candidate countries (those without formal Candidate Status but with an agreed EU perspective) are Bosnia and Herzegovina (BiH) and Kosovo.

4.3 This year's "Strategy" Communication is subtitled "Completing the Foundations for Credibility": reflecting the shift in recent years to "frontloading" the core priorities — rule of law, economic governance, and public administration reform — in accession negotiations and enhancing the monitoring of candidate countries. The tenth anniversary of the historic accession of ten new Member States in 2004 is noted, with mention of the expanded business opportunities, increased trade and investment (with foreign direct investment from the rest of the world to the EU doubling as a percentage of GDP, from 15.2% of GDP in 2004 to 30.5% in 2012) and better quality of life in those countries.

4.4 The Commission asserts that the accession process is rigorous, built on strict but fair conditionality, established criteria and treating each country on its merits. The Strategy underlines the positive impact of their EU perspective on the western Balkan countries (enhancing stability, improving regional relations, deepening cooperation with the EU on key foreign policy issues, leveraging economic, political and social reform). But it also underlines how much each of the candidate and aspirant countries has to do with regard to implementation, especially in tackling corruption and organised crime, reforming public administration, judicial reform and in those areas encompassed by the fundamental freedoms of European society (embedding a parliamentary process, respecting minority rights, ensuring media freedom etc.).

4.5 All in all, 2014 is seen as a year of fitful progress. In Albania and Macedonia, the opposition is boycotting parliament and thus blocking reforms. In Kosovo, a government has yet to be formed after the June elections; and in Bosnia and Herzegovina (BiH), the Commission's reference to a lack of collective will suggests that it does not expect long-standing political inertia to be resolved by this month's elections. Problems with "rule of law/good governance" issues predominated in Montenegro — so much so that the Commission indicates that it may slow down the accession process (the first fruits, perhaps, of "front-loading" this area, and adjusting the rate of progress accordingly). In the case of Turkey, there is a litany of concerns about the erosion of fundamental freedoms and the separation of powers. Serbia is the country about which the Commission appears to be most hopeful — even though it is the least supportive of what is regarded as a benefit of the process, viz., alignment with the EU's foreign policy priorities, where the new government prefers to sustain active relations with Russia and to welcome President Putin in Belgrade as recently as 16 October.

4.6 The Minister for Europe (Mr David Lidington) welcomes the Commission's "fair and balanced assessment of progress and challenges in EU enlargement countries and of the enlargement process itself", which he says is "closely aligned with the Government's priorities on enlargement, highlighting the importance of addressing the fundamentals first and the need for firm but fair conditionality", and which "focuses correctly on the central challenges of the rule of law, judicial reform and the fight against organised crime and corruption; economic governance and competitiveness; the importance of strengthening democratic institutions and public administration reform, and protecting fundamental rights; and the need for good neighbourly relations and dispute resolution".

4.7 The Minister welcomes the call for enlargement countries' consolidated efforts to tackle illegal migration and improve border management, which are:

    "particular Government priorities on which it wishes to see greater activity and enforcement in enlargement countries. The Government welcomes the focus on human trafficking, but noted through the Reports less progress in tackling it in Montenegro, Macedonia and Kosovo than in the other countries. Moreover, the Government would like to see the absence of laws against trafficking of minors addressed, and continued development of asylum and national referral systems in line with EU standards."

4.8 The Minister's summaries of, and other detailed views on, the Commission Communication and each of the Country Progress Reports are set out in the "Background" section below. In this latter regard, the Minister says:

    "At this stage, the Government is only able to provide an initial position on the Reports. As conclusions on EU enlargement will be adopted at the General Affairs Council on 16 December, with any formal decisions to be endorsed at the European Council on 18-19 December, there is time for further developments in the interim.

    "The Government does not foresee any major decisions being taken on the accession progress of individual enlargement countries in the context of this Annual Enlargement Package. In terms of its position, it intends to take a final decision nearer December that will give time for its own considered analysis, in the light of any further progress countries have made and the outcomes of discussions in the relevant Council working groups. The Government will keep Parliament updated over the autumn on developments in its position."

4.9 What the Minister says immediately above is reminiscent of his caveat, at the same juncture a year ago, with respect to the Commission's recommendation that Albania be granted candidate status. That began a lengthy exchange between the Minister and the Committee, which we deal with further in a separate chapter of this Report.[13]

4.10 So far as these documents are concerned (which, together, run to several hundred pages), we are, once more, grateful to the Minister and his officials for his extremely helpful Explanatory Memorandum.

4.11 We look forward to being updated over the next several weeks, particularly with regard to those countries in which political deadlock is hindering the process; and/or those where the Commission is emphasising the need to move beyond legislation and build a track record of implementation.

4.12 On this occasion, we note that the Minister does not foresee any major decisions being taken by the December General Affairs or European Council on the accession progress of individual enlargement countries. We also note that the incoming President of the Commission has publicly stated that there will be no further enlargement during the next five years.

4.13 As commentators have observed, against that sort of background and looking at the "ring of fire" that is the EU's "near neighbourhood",[14] concern is bound to arise that public support for EU-inspired reforms may be undermined unless the economic benefits are more tangible. We would accordingly be interested to know more about the German-led initiative to encourage the west Balkan states to work together on regional projects, particularly in energy and transport; and how changes embodied in the IPA-II will enable the EU to focus on fewer and bigger projects.[15]

4.14 In the meantime, we shall retain the documents under scrutiny.

Full details of the documents: (a) Commission Communication: "Enlargement Strategy and Main Challenges 2014-15": (36392), 14152/14, COM(14) 700; (b) Commission Staff Working Document: Montenegro 2014 Progress Report: (36393), 14153/14, SWD(14) 301; (c) Commission Staff Working Document: Serbia 2014 Progress Report: (36394), 14154/14, SWD(14) 302; (d) Commission Staff Working Document: Turkey 2014 Progress Report: (36395), 14155/14, SWD(14) 307; (e) Commission Staff Working Document: The former Yugoslav Republic of Macedonia 2014 Progress Report: (36396), 14156/14, SWD(14) 303; (f) Commission Staff Working Document: Albania 2014 Progress Report: (36397), 14157/14, SWD(14) 304: (g) Commission Staff Working Document: Bosnia and Herzegovina 2014 Progress Report: (36398), 14158/14, SWD(14) 305; (h) Commission Staff Working Document: Kosovo 2014 Progress Report: (36399), 14159/14, SWD(14) 306.

Background

4.15 The Copenhagen criteria require:

—   the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; and

—   a functioning market economy able to cope with the competitive pressure and market forces within the Union.

4.16 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 Commission Communication

4.17 The Commission begins by stating that it has "strengthened the credibility of enlargement policy" and "enhanced its transformative power" by ensuring a stronger focus on addressing fundamental reforms early in the enlargement process, and has put particular emphasis on "the three pillars of rule of law, economic governance and public administration reform". While its 2012 Communication "introduced a new approach to rule of law" and its 2013 Communication "set out a framework for strengthening economic governance, drawing on the experience of the European Semester", this year it "sets out new ideas to support public administration reform in the enlargement countries". These "three pillars" are interlinked, and progress in these areas "will be key to determining when countries will be fully ready to join the EU".

4.18 With regard to enlargement itself, the Commission says:

    "The EU's enlargement policy contributes to mutual benefits of peace, security and prosperity in Europe. It reinforces the EU's political and economic strength and has a powerful transformative effect on the countries concerned. A well prepared accession process ensures enlargement is not at the expense of the effectiveness of the Union."

4.19 The Commission characterises the tenth anniversary of the accession of ten Member States in 2004 as a reminder of the progress achieved:

    "As the EU expands so do opportunities for our companies, financial investors, consumers, tourists, students and property owners. Accession benefited both those countries joining the EU and the established member states. Trade and investment have increased. The quality of life of citizens has improved as EU environmental, consumer and other standards apply more widely."

4.20 For the countries of the Western Balkans:

    "the clear perspective of EU membership granted by the EU's Member States is a key stabilising factor. It supports progress towards fulfilment of the necessary conditions, including those of the Stabilisation and Association Process. Good neighbourly relations and inclusive regional cooperation are essential. There has been progress in this regard over the past year, while some open issues still remain. Continuous efforts to tackle bilateral issues among enlargement countries and with Member States, including under UN auspices where relevant, and overcome the legacy of the past are crucial in view of the history of this region so recently riven by conflict."

4.21 The accession process itself is:

    "rigorous, built on strict but fair conditionality, established criteria and the principle of own merit. This is crucial for the credibility of enlargement policy, for providing incentives to enlargement countries to pursue far-reaching reforms and for ensuring the support of EU citizens. For their part, Member States, together with the EU institutions, should lead an informed debate on the political, economic and social impact of enlargement policy."

4.22 In his Explanatory Memorandum of 20 October 2014, the Minister for Europe (Mr David Lidington) summarises the main conclusions and recommendations of the Commission's Enlargement Strategy, and other points of note; and then the conclusions of the individual country Progress Reports: in addition to providing an overall assessment of the strategy and a brief summary for each country, the Minister also notes the Government's initial position on the recommendations of the overall package.

4.23 In addition to welcoming the content of the Strategy and Reports, the Minister welcomes the publication of the Package itself as "an important tool for driving EU enlargement policy in line with UK objectives", and sees the Strategy and Progress Reports as providing helpful clarity on the Commission's strategic direction for 2014-15; this, he says:

    "can help to promote reform in the enlargement countries by sending a clear message on areas that need closer attention, whilst recognising where progress has been achieved. In addition, it helps Member States to target their own efforts to support the efforts of the enlargement countries where these are most needed."

PART I: ENLARGEMENT STRATEGY AND MAIN CHALLENGES 2014-2015

4.24 After referring to the introduction (see above), the Minister continues thus (the underlining being his; his views being in italics):

    "The introduction proceeds to a summary of country progress. Montenegro has opened 12 Chapters in accession negotiations, and started implementation of rule of law reforms, but now needs to produce tangible results. Serbia has opened accession negotiations and now needs to deliver on its reform priorities, notably on rule of law and normalisation of relations with Kosovo. The Commission notes the initialling of a Stabilisation and Association Agreement with Kosovo in July as a major milestone.

    "Albania was granted Candidate Status in June as recognition for its reform progress. It now needs to sustain momentum and ensure political debate takes place primarily in parliament.

    "However, progress elsewhere is less pronounced. The Commission reports that the EU accession process with Macedonia is at an impasse. Action is needed to reverse recent backsliding, notably on freedom of expression and independence of the judiciary. The name issue urgently requires a solution. Government and opposition should restore political dialogue. It also notes that Bosnia and Herzegovina remains at a standstill. Following the elections, the country needs to speak with one voice, to tackle urgent socio-economic reforms and to progress its European agenda.

    "The Commission notes that Turkey has implemented certain reforms, such as the 2013 democratisation package, and taken steps toward settling the Kurdish issue. But there are serious concerns regarding the independence of the judiciary and fundamental freedoms. Opening negotiations on the relevant Chapters on the rule of law and fundamental rights would provide a roadmap for reforms in these key areas. Meanwhile Iceland continues to keep its accession negotiations on hold.

    "In the final part of its introduction, the Strategy notes the launch of the second Instrument for Pre-Accession Assistance (IPA). Through IPA II, the EU will provide €11.7 billion for the period 2014-2020 to support enlargement countries in their preparation for accession, aimed at the rule of law, democratic institutions and good governance, plus socio-economic strategies in a limited number of priority sectors. IPA II will be linked more closely to enlargement policy priorities and based on a more results-orientated and strategic approach. To support this, the Commission will provide Country Strategy Papers to guide priorities and reforms, based around a framework of pre-defined sectors. A greater focus on performance measurement will require beneficiary countries to show clearer progress on results."

PART II: FUNDAMENTALS FIRST - CONSOLIDATING REFORM AND STRENGTHENING CREDIBILITY

    "The strategy identifies three interlinked priority pillars where enlargement countries need to focus their attention: public administration reform; economic governance and competitiveness; and the rule of law and fundamental rights. Progress on these matters, the Commission believes, will be key to determining countries' readiness to join the EU. The Commission concludes that, over the past five years, it has strengthened the credibility of enlargement policy and enhanced its transformative power through frontloading fundamental reforms.

    "In this year's strategy, the Commission makes public administration reform (PAR) a particular focus. PAR remains weak in enlargement countries due to poor administrative capacity, politicisation and lack of transparency. To support PAR, the Commission posits its own six-point work framework, and pledges to better integrate PAR into the enlargement process through "special groups on PAR" in Western Balkan countries, which feed into a more structured, political discussion through Stabilisation and Association Councils and Committees. It cites relevant acquis Chapters — public procurement, financial control, judiciary and fundamental rights, and taxation and economic and monetary policy — where the EU will assess enlargement countries' PAR efforts.

    "On economic governance and competitiveness, the Commission reiterates that none of the Western Balkan countries are functioning market economies. The Report notes the major structural economic challenges Western Balkan countries face, with high unemployment, poor business environments, and low foreign investment. This is exacerbated by weaknesses with the rule of law and public financial management. To address this, the Commission further refines the approach it set out last year. It puts an increased emphasis on sectoral-type structural reforms, and sets out an annual cycle of economic policy review for Western Balkan countries, involving their more frequent dialogue with the Commission and greater accountability for their economic performance.

    "Drawing on recent EU experience, the Commission has launched improved processes of cooperation with the enlargement countries. Western Balkan countries will be asked to submit National Economic Reform Programmes comprising two parts: the first is an enhanced version of the existing Pre-Accession Economic Programmes for candidate countries and Economic and Fiscal Programmes for potential candidates. This will set out a medium-term macroeconomic and fiscal policy framework, with increased focus on assessing external sustainability and structural obstacles to growth, as well as concrete reform measures to support the policy framework. Part two will cover sector-specific structural reforms (such as transport, energy, education, environment, research, industry, competition, internal market) and infrastructure and investment needs. For Turkey, a high-level economic dialogue will be established.

    "The Strategy also highlights the importance of economic governance to mitigate migratory pressures from enlargement counties to the EU. The Commission recognises the need to address in accession negotiations the possible need for, and nature of, transitional controls - or "transitional measures" as it refers to them - and/or a safeguard mechanism on the free movement of workers. It refers to a future impact assessment that will feed into this analysis.

    "The Strategy posits energy and transport interconnection between the EU and enlargement countries as a priority for economic growth in the Western Balkans. It encourages enhanced regional economic cooperation, under the Regional Cooperation Council and through the Western Balkans Investment Framework. The Commission calls for Western Balkan countries to set up national investment committees or similar coordination mechanisms that would lead to single sector project pipelines.

    "The Strategy confirms that the rule of law is at the heart of the accession process. Countries need to build up credible track records of investigations, prosecutions and convictions in cases of organised crime and corruption. Sentencing should be dissuasive, and assets acquired through criminal means should be confiscated. The Commission stresses the challenges: corruption, particularly in public procurement and in privatisation; and organised crime - for example providing law enforcement bodies and prosecution services with effective legal and investigative tools. It calls for enhanced regional and international cooperation to deal with the cross-border activity of organised crime groups.

    "The Strategy sets out how the New Approach to Chapters 23 (judiciary and fundamental rights) and 24 (justice, freedom and security) involves processes that support reform: through increased leverage over enlargement countries at more junctures, and via a longer timeline. Progress under these Chapters will need to be made in parallel with progress in negotiations overall. The Commission recalls the existence of the 'overall balance' clause of the Negotiating Frameworks and the possibility of pausing negotiations on other Chapters if progress on rule of law issues lags behind.

    "The Strategy notes the disparity between fundamental rights, largely enshrined in the legal framework of the enlargement countries, and their full respect in practice. Freedom of expression and media remains a particular concern. Minority rights need better protection. Discrimination and hostility towards vulnerable groups, including on grounds of sexual orientation, remains of concern. Further work is required to promote the rights of women, including tackling domestic violence, and of children and the disabled. The Commission strongly encourages candidate countries' participation in EU frameworks to learn best practice, and to develop more robust institutional frameworks and human rights institutions - including national Ombudsmen, whose recommendations too often go unheeded.

    "The strategy notes that, to support the reform process, strengthening the functioning and independence of key democratic institutions in the enlargement countries is essential. This includes ensuring constructive and sustainable political dialogue, notably in parliament. It calls for more to be done to foster an enabling environment for civil society organisations, to enhance political accountability and promote deeper understanding of accession related reforms."

PART III: REGIONAL AND BILATERAL ISSUES AND OVERCOMING THE LEGACY OF THE PAST

    "In this section, the Strategy reaffirms that good neighbourly relations are an essential element of the Stabilisation and Association Process. The Commission calls for continued efforts to overcome the legacy of the past, foster reconciliation and tackle bilateral disputes among enlargement countries and with Member States. Bilateral issues should be addressed by the parties concerned as early as possible and should not hold up the accession process, which should be based on established conditionality.

    "The strategy concludes that regional cooperation has been further strengthened over the past year. The increasing inclusion of Kosovo in regional initiatives has been positive. The Commission notes examples of progress across the region, such as on war crimes and refugee return, and lauds the EU and regional response to the floods in BiH and Serbia in May. To support the efforts of enlargement countries, the Commission pledges to continue to offer political support and facilitation to all countries concerned, and to actively support the efforts in other fora, including the 'Berlin process' which began with a Summit there in August.

"The Government welcomes the Commission's approach to the EU enlargement strategy, as set out in Part I, as broadly in line with the UK's own approach.

"The Government continues to be a leading proponent of a conditions-based, firm-but-fair approach to EU enlargement. It supports further enlargement to all of the countries of the Western Balkans and Turkey when conditions have been met. It believes that enlargement has been an historic success for the EU and remains in the UK's national interest as a means to extend greater stability, security, and prosperity to the region. It also provides a powerful lever to encourage cooperation and reforms in areas that impact directly on the UK, more effectively than if the UK acted unilaterally - such as tackling organised crime and corruption. Furthermore, support for enlargement is in line with the Government's vision of a more open, flexible Europe.

"The UK plays a leading role within the EU, with our like-minded partners and the enlargement countries, to ensure that countries proceed fairly and on merit when they make the required progress. Accession can only be agreed when a candidate country has met in full all the political, economic and acquis conditions of membership. This approach, based on the application of firm but fair conditionality, is vital to ensure the continued success and credibility of the enlargement process.

"The Government believes that the Commission's Strategy provides a fair and balanced assessment of progress and challenges in EU enlargement countries and of the enlargement process itself. It is closely aligned with the Government's priorities on enlargement, highlighting the importance of addressing the fundamentals first and the need for firm but fair conditionality. It focuses correctly on the central challenges of the rule of law, judicial reform and the fight against organised crime and corruption; economic governance and competitiveness; the importance of strengthening democratic institutions and public administration reform, and protecting fundamental rights; and the need for good neighbourly relations and dispute resolution. These are addressed in turn below.

"The Government welcomes the emphasis on public administration. This is key for the successful implementation of reforms and for applying EU rules and standards, but also in order to underpin economic and rule of law reforms. The Government believes enlargement countries need to make further progress on professional, effective, independent and accountable public administration. It will be attentive to the incorporation of public administration reform principles in relevant Chapters of the accession negotiations ahead, and in doing this will enlist specialists, for example on public procurement.

"The Government welcomes the rule of law continuing to be at the heart of the accession process. The development of Action Plans under the rule of law Chapters allows for clear, identifiable actions to meet the Commission's recommendations. The Strategy helps set enlargement countries' expectations that their performance will be judged on sustained implementation and enforcement of reforms, not just the passage of legislation. The Report's coverage of countering corruption is largely satisfactory, although the Government believes greater focus is required on cultural, institutional and procedural reforms in enlargement countries. The Government also believes anti-corruption measures need more momentum. For example, corruption can weaken enlargement countries' ability to protect borders and enforce the law, thereby hampering bilateral co-operation on tackling illegal migration.

"On organised crime, the Government is reasonably satisfied that the Strategy gives due weight to action needed in enlargement countries to tackle organised crime that matters to the UK. The Government would have welcomed mention of the importance of tackling cigarette smuggling (in Montenegro, particularly) and VAT fraud. It agrees with the Commission on the importance of financial investigations, tackling the proceeds of crime, intelligence-led policing practices, and regional and international engagement. The Government also believes accession countries should be contributing more from their own budgets for regional JHA activities, rather than continue to rely on external funding only.

"The Government welcomes the call for enlargement countries' consolidated efforts to tackle illegal migration and improve border management. These are particular Government priorities on which it wishes to see greater activity and enforcement in enlargement countries. The Government welcomes the focus on human trafficking, but noted through the Reports less progress in tackling it in Montenegro, Macedonia and Kosovo than in the other countries. Moreover, the Government would like to see the absence of laws against trafficking of minors addressed, and continued development of asylum and national referral systems in line with EU standards.

"The Government welcomes the Commission's refinement of mechanisms for economic governance, setting out more clearly the Commission's more rigorous surveillance of, and timely advice to, enlargement countries, though without imposing new conditionality. The Government agrees that it is right that enlargement countries take early and sustained steps to "tackle the economic fundamentals first", improve public financial management, implement structural reforms and increase competitiveness. The Government sees priority areas as public financial management, competitiveness and de-politicisation of decision-making, labour market flexibility, anti-corruption and reduction of administrative burdens for businesses.

"The January reporting deadlines for enlargement countries to provide action plans under the National Economic Reform Programme cycle might prove, initially, an administrative challenge for some countries, but the Government welcomes the enhanced process. It also welcomes the enhanced bilateral dialogue that the Commission is seeking with enlargement countries and look forward to working with EU partners to make existing economic conditionality more effective.

"The Government particularly welcomes the Commission's reference to assessing the need for, and nature of, future reform of transitional controls - or "transitional measures" as the Strategy refers to them - on free movement of workers. As the Prime Minister said in his Financial Times article on 26 November 2013, free movement is a central principle of the EU, but it cannot be a completely unqualified one. The Government wants to work with partners to return the concept of free movement to a more sensible basis. It has started a debate on this issue in Europe and expects discussion of potential reform this autumn, with the issue of transitional controls being addressed at the General Affairs Council in December. The Government believes progress on this issue is vital if public confidence in and support for enlargement is to be maintained. Otherwise there is a risk that the process could grind to a halt.

"The Government welcomes the Commission's focus on connectivity in the energy and transport sectors in the Western Balkans. It considers south-east Europe as strategically important for increased diversity of gas supply routes and sources over the longer term. The Government agrees with the Commission that further development of trans-European energy infrastructure and cooperation with the Energy Community is essential. Stronger implementation and enforcement of Energy Community legislation should strengthen regional energy security, and address the key fact that the lack of infrastructure is the main constraint on growth. The Government would note too that investors want greater clarity and transparency in the rules that apply in the Western Balkans and more confidence in the rule of law there to be able to invest.

"The Government agrees with the Commission that the EU's cooperation with Turkey would benefit the energy security of the EU and the wider European neighbourhood. The UK supports Commission's aim of strengthening EU-Turkey energy cooperation.

"The Government notes the concerns expressed by the Commission in the individual country Progress Reports about the lack of development of both rail systems and legislative frameworks, through lack of resources. It would wish these issues to be substantially resolved before countries join the EU.

"The Government welcomes the Commission's sustained focus on the need to ensure the proper functioning of institutions guaranteeing democracy. This includes functioning democratic politics, independent democratic institutions and protection of media freedoms, particularly given the downward trend in some enlargement countries on the latter. It welcomes the encouragement given to enlargement countries to strengthen the role of, and engagement with, civil society organisations. Indeed the Government would like to see it extended to a broad range of alternate voices in politics where they have legitimate grievances to raise. This underlines the need for the EU's democratic values to be measured more broadly rather than just by the holding of successful elections.

"The Government also agrees with the Commission's assessment on the importance of protection of the rights of minorities. It is important that reforms in this area, aimed at ensuring countries develop fully-functioning democratic societies, are driven not just by the requirements of EU membership but also by the recognition of the significant benefits to individual citizens. If harnessed effectively, this may also help to provide a level of public pressure and support to enable reforms to continue and overcome domestic political barriers.

"The Government concurs with the Commission's view that every effort needs to be made to prevent the importing of significant bilateral disputes into the EU and the consequent holding up of the accession process. Parties must ensure that any disputes between them do not have a detrimental effect on their shared goal of progress towards EU membership. The Government also supports efforts on regional reconciliation and agrees that political and other leaders need to show greater responsibility, perpetrators need to be held to account for war crimes, and more concerted regional action is needed to address legacy issues of refugees, Internally Displaced Persons and minorities.

"Lastly, the Government welcomes the launch of financial assistance through the new IPA-II framework and the linking of its focuses to priorities identified in the Strategy. It is a strong supporter of EU Assistance programmes such as IPA and Twinning. Alongside national assistance programmes, EU programmes have provided vital, practical help to aspirant countries to meet the requirements of EU membership. The Government believes the emphasis of a sector-based approach being adopted in IPA II is a positive step. This should help with coordination between development agencies. It should also result in better ownership among the beneficiary countries, due to more clearly-defined performance measurements and efficiencies in Member States as work will be towards a common policy framework."

PART II: COUNTRY PROGRESS REPORTS

"The Government welcomes for consideration the specific proposals that the Strategy brings forward on each enlargement country. The Government is not at this stage taking a final view on these proposals — its position will develop as it approaches the December General Affairs Council and European Council. This allows the Government to consult with stakeholders and partners on the specific proposals concerned. The Government does, however, outline its initial view on country-specific proposals in the individual country sections below.

ALBANIA

"Following the granting of Candidate Status to Albania in June, the Report states that further progress has been made towards fulfilling the political criteria but Albania needs to consolidate the momentum of reform. Joint Working Groups were established in September 2014 for the remaining five Key Priorities, covering public administration reform, judicial reform, tackling corruption, tackling organised crime and protecting human rights. These will structure the work on reform, but there is a need for a constructive political dialogue between the Albanian government and opposition to drive it forward.

"Political Criteria

"Democracy and Rule of Law: The Albanian government has energetically pursued the process of reform since elections in June 2013, however a tense political climate has impinged on parliamentary work resulting, since July, in the opposition boycotting parliament. The Report makes clear that a constructive and sustainable dialogue between government and opposition is vital to the sustainability of reform. In Public Administration Reform, a new Civil Service Law has been adopted. Implementation needs to be pursued to strengthen depoliticisation, accountability and professional standards.

"Albania has also taken steps towards reform of the judiciary but the Report makes clear that more needs to be done to implement the Venice Commission's recommendations with substantial efforts to ensure the independence, efficiency and accountability of the judiciary, including through constitutional amendments. The Report makes clear that the Albanian government has made substantial efforts to tackle organised crime and corruption. On the former there has been an intensification of law enforcement activities including on drug seizures and tackling human trafficking. International cooperation has also been strengthened with an agreement with Europol. The government has also shown the political will to act decisively in the fight against corruption, for example through the creation of a National Coordinator. However Albania needs to develop a track record of convictions against corruption and organised crime to prevent its infiltration into the political, legal and economic system. The Commission recognises that more needs to be done on tackling trafficking, money laundering and in migration and asylum policy.

"Human Rights and Protection of Minorities: The Report makes clear that fundamental rights are generally respected in Albania, but although there has been an improvement in cooperation between the state and civil society on LGBT matters, gender discriminatory legal provisions need to be removed and the institutional capacity for child protection should be strengthened. Albania also needs to implement measures to enhance Roma inclusion and protect vulnerable groups.

"Regional issues and international obligations: Albania has shown positive regional cooperation and good neighbourly relations.

"Economic Criteria

"The Report makes clear that Albania has made some progress towards becoming a functioning market economy provided that it accelerates structural reforms. The Commission recommends Albania pursue fiscal consolidation with a view to reducing public debt. Obstacles to private sector development should also be removed by improving the business environment which is characterised by deficiencies in rule of law, weakness in the regulatory framework and uncertainty over property ownership. The Commission also states that creating favourable conditions for private investment and in particular Foreign Direct Investment is essential for diversifying the narrow production base.

"Ability to Take on the Obligations of Membership

"The Report states that the Stabilisation and Association Agreement continues to be smoothly implemented. Albania has continued aligning its legislation to EU requirements to enhance its ability to take on the obligations of membership. It has a new National Plan for European Integration for 2014-2020, however Albania needs to make substantial efforts to prepare for implementing the acquis. The capacity of bodies charged with the implementation of the acquis needs to be strengthened and the independence of regulatory bodies safeguarded.

"The Government welcomes the Progress Report and agrees that the Albanian government has made progress in its fight against organised crime and corruption. However, it also agrees that the Albanian government needs to sustain the process of reform and in particular put substantial effort into further judicial reform to underpin other activity. It is vital to establish a track record of prosecutions and convictions of criminal activity and corruption. The Government has detailed concerns with regard to human trafficking and migration pressures from Albania and has emphasised that more needs to be done to improve effective border controls. As set out in the June GAC conclusions, Albania needs to intensify its efforts to ensure a sustained, comprehensive and inclusive implementation of the key priorities, notably the reform of the public administration and the judiciary, the fight against organised crime and corruption, the protection of human rights and anti-discrimination policies. The Government also supports the Commission's call on both the Albanian government and the opposition to develop a constructive and sustainable political dialogue to assist the reform process.

BOSNIA AND HERZEGOVINA

"The Commission assesses that little to no progress has been made in the last year. The Report regrets the lack of collective political will by Bosnia and Herzegovina's leaders to make the reforms necessary for EU progress and their failure to implement conditions allowing the entry into force of the Stabilisation and Association Agreement.

"Serious concerns flagged by the Report are: the lack of a co-ordination mechanism for EU interaction to allow the country to speak with one voice on EU-related issues; the failure to resolve blockages related to the European Court of Human Rights' ruling on Sejdic-Finci, despite Commissioner Fule's facilitation efforts; and the need to re-engage in constructive discussions with the EU to reach an agreement on the technical adaptation of the Interim Agreement to the Stabilisation and Association Agreement as a matter of urgency.

"Political Criteria

"Democracy and Rule of Law: There has been no tangible progress in improving the functionality and efficiency of all levels of government. The complicated decision-making process, lack of shared vision and weak cooperation between the various levels of government have delayed structural reforms. The Report highlights that, following the socio-economic protests in February, Bosnia and Herzegovina needs as a matter of priority to focus on addressing socio-economic grievances and to assist those in need after the May floods.

"There has been some progress in legal reforms - access to justice has moderately improved, some progress has been made on efficient handling of domestic war crimes cases and there has been steady progress on witness protection measures. Whilst there was little progress on judicial system reform, the EU's Structured Dialogue on Justice remains an important platform to consolidate consensus on judicial reforms and has been broadened to other rule of law matters. Although there have been some successes in the fight against organised crime, it remains an issue of serious concern.

"Human Rights and the Protection of Minorities: The Report concludes that the legal and institutional framework for the observance of human rights is in place but implementation needs to improve. There needs to be more effort to make schools inclusive and to ensure children's right to education throughout the country. The anti-discrimination law needs to be amended to include additional categories and effective prevention and investigation of discrimination against in particular LGBTI persons needs to be ensured. Minorities continue to be excluded from representation in high office. Very good progress has been made in addressing the housing needs of Roma. Whilst there have been some improvements with regard to discrimination against Roma, this continues to be widespread. The sustainable return of refugees and internally displaced persons continues to be hampered by gaps in legislation and difficulties in access to social rights for returnees.

"Regional Issues and International Obligations: Bosnia and Herzegovina has continued to participate actively in regional cooperation and to maintain good neighbourly relations. Cooperation with the International Criminal Tribunal for the former Yugoslavia continues to be satisfactory in most areas. There is good co-operation on refugees and internally displaced persons. However greater political commitment and renewed efforts are required to resolve the fate of missing persons from the conflicts in the 1990s. Remaining border and property issues with neighbouring countries need to be addressed. Cooperation with the International Criminal Tribunal for the former Yugoslavia continues to be satisfactory in most areas.

"Economic Criteria

"The Report concludes that no progress has been made towards creating a single economic space within the country. The privatisation process has stalled. Unemployment remains persistently high. The short-term outlook for the economy deteriorated after the May floods. The EU responded to the concerns of the Bosnian population by launching the Compact for Growth initiative in May 2014 which identified key economic policy issues that needed to be worked on.

"Ability to Take on the Obligations of Membership

"There has been limited progress on free movement of goods and none on free movement of capital. Some progress was made in customs legislation, on competition, public procurement and intellectual property rights. There has been very limited progress on employment and social policies and little progress on education. On the justice, freedom and security Chapter, there was some progress on visa policy, policing and the fights against money laundering, drug trafficking, organised crime and terrorism.

"The Government welcomes the Commission's assessment on Bosnia and Herzegovina. The Government agrees that there has been little or no progress on reforms. It agrees that there must be much greater efforts to implement reforms. It welcomes the Commission's three new initiatives taken in response to public calls for change and confirms its strong support for the Commission's efforts to secure reforms. This period, following the 12 October elections, is a key opportunity to encourage rapid formation of a new Bosnian government and then to support the newly-elected government in undertaking reforms which meet the people's needs and gets the EU process back on track.

KOSOVO

"The Report highlights Kosovo's progress in several areas, including two successful elections, Kosovo's institutional capacity to coordinate work on its EU integration agenda and continued engagement in and commitment to the Kosovo/Serbia Dialogue. The initialling of a Stabilisation and Association Agreement between Kosovo and the EU this year was a major milestone in EU-Kosovo relations. However, the Report highlights the need for further progress in a number of other areas.

"Political Criteria

"Democracy and Rule of Law: The Report commends Kosovo for free, transparent and well-organised local and general elections, for the first time including the four municipalities in northern Kosovo. Whilst there were fewer electoral fraud cases, Kosovo still needs comprehensive electoral reform, and to adopt recommendations from election observation missions and experts.

"Co-operation with the EULEX rule of law mission has continued, demonstrated by Kosovo's further political commitment to the extension of EULEX's mandate, also paving the way to establishing a special court to adjudicate the findings of the Special Investigative Task Force. Kosovo's judicial authorities have coped well with structural challenges and the transfer of some EULEX functions to local authorities. But, the backlog of cases and ensuring impartial, independent justice remains a challenge. Kosovo continues to make slow progress in the fight against organised crime and corruption but needs to be able to demonstrate practical results in this area. The number of convictions and asset-confiscations is low and law enforcement agencies are reluctant to initiate financial investigations. The Report expresses concerns about judicial impartiality and the very limited progress in improving public administration.

"Human Rights and Protection of Minorities: The Report notes that the Independent Media Commission is operational again. But threats and attacks on LGBT activities and on journalists continue. Conditions for freedom of expression need to be put in place. The Implementation and Monitoring Council has facilitated improved protection of cultural and religious heritage. However, Kosovo needs to increase efforts on the implementation of legislation on integration of the Roma, Ashkali and Egyptian communities and on the historic centre of Prizren and Velika Hoca e Madhe.

"Regional Issues and International Obligations. The Report finds that Kosovo has remained engaged in and committed to the Serbia/Kosovo Dialogue and there have been some irreversible changes on the ground, including the dismantling of police and justice structures. Whilst there have been no high-level meetings since Kosovo's June elections, work has continued at the technical level, leading to progress in the areas of customs collection, integrated border management, energy and telecoms.

"Economic Criteria

"The Report concludes that Kosovo has made limited progress. Growth remains positive at 3.4% but labour market conditions remain very poor. Macroeconomic stability was broadly preserved despite significant, pre-election increases in expenditure, in particular on wages and pensions. Decisions on large infrastructure projects should be based on proper cost-benefit evaluations. Kosovo must swiftly address obstacles arising from weak administrative capacities, politicised public companies and agencies, difficult access to finance and lengthy and complex privatisation procedures.

"Ability to Take on the Obligations of Membership

"Kosovo's institutions have demonstrated their capacity to deliver on some political priorities, such as the Stabilisation and Association Agreement negotiations, the visa liberalisation dialogue and the Dialogue with Serbia and has made good progress in these areas. However, delivery of results in other reform areas, for example competition policy or protecting the environment, has been uneven. The Report highlights the need for political commitment to public administration reform.

"The Government welcomes the Commission's assessment of Kosovo's progress. It agrees, however, that whilst significant progress has been made in some areas, further efforts are required, in particular on the implementation of legislation, the strengthening of administrative capacity, and on developing impartial and well-trained judicial and prosecutorial services. There must be a clear political will to fight organised crime and corruption, which are holding the country back and have contributed to the failure to make progress on improving governance, rule of law and crucial longer-term socioeconomic issues. This entails co-operation with key international parties such as EULEX.

"The Government is concerned by the continuing impasse following the June elections. Kosovo's leaders and institutions have an urgent responsibility to form a new government to avoid the risk of delays to Kosovo's Stabilisation and Association Agreement, damage to Kosovo's reputation, and a slowing down of progress in the Dialogue with Serbia. The government will continue to monitor the situation closely and, once a new Kosovo government is in place, will encourage and support renewed efforts on reform.

MACEDONIA

"The Commission reports that, given the cumulative progress that Macedonia has achieved, it continues to meet the political criteria and maintains a high level of alignment with the Acquis. The Commission maintains its 2009 recommendation to begin accession negotiations. However it not only calls for decisive action to address the name issue but also notes the backsliding in some areas. The drafting implies that without these being addressed, the recommendation may be withdrawn next year. Although Macedonia continues to make good progress in many areas, the country's high level of legislative advances are overshadowed by an increasingly divisive political culture, political interference in state institutions, lack of capacity in public administration, poor implementation of legislation, and fragile inter-ethnic relations.

"Political Criteria:

"Democracy and Rule of Law: The government of Prime Minister Gruevski was re-elected in April 14 in elections the OSCE judged to be well administered. However, the Report notes that a lack of separation between party and state has led to an erosion of trust. The consequent lack of dialogue between parties has led to another political crisis and an opposition boycott of parliament. The main political parties on all sides have made insufficient efforts to engage in constructive political dialogue.

"Public administration in Macedonia continues to be politicised and the Report states that the principles of transparency and accountability have not yet been fully applied. Similarly in the justice sector, the independence and competence of the courts needs to be improved and there is a concern that legislative advances are overshadowed by the selective application of justice. The Commission comments that, as in previous years, corruption also remains prevalent. However, there have continued to be good improvements in police cooperation and the tackling of organised crime and human trafficking. The Report states that efforts should continue to build up a track record of convictions against organised crime and corruption.

"Human Rights and Protection of Minorities: The Report makes clear that, whilst the framework for fundamental rights is in place, far more focus is required to ensure implementation. More efforts are needed to address discrimination against Roma and more should be done to counteract intolerance of LGBT minorities. The Report emphasises that there has been a deterioration in media freedom, with indirect government control of the media through state financed advertising, and a scarcity of independent media reporting in Macedonia. In terms of inter-ethnic relations, a lack of trust between communities continues. Tensions can easily be sparked by misinterpretations of events or incidents. The Commission reports that there is a need for a more proactive approach to promoting an inclusive multi-ethnic society. A review of the Ohrid Framework Agreement which ended the 2001 conflict needs to be completed and its recommendations implemented. In particular, the Report stresses the need for improvement in non discrimination, fair representation and use of languages and education.

"Regional Issues and International Obligations: The Report states that Macedonia maintains good neighbourly relations and an active role in regional cooperation, but actions and statements which negatively impact such relations need to be avoided. The Commission calls for decisive steps to be taken towards resolving the "name issue" with Greece which, it says, is having a direct and adverse effect on the country's European aspirations. The Commission believes that if discussions on the negotiating framework for accession negotiations were allowed to proceed, the conditions could be created for a mutually acceptable solution to the name issue. The Commission also draws attention to the role of the Council and EU leaders in driving this forward.

"Economic Criteria

"The Report says that Macedonia remains well advanced and in some areas has made further progress towards a functioning market economy. Macedonia has seen 2.9% growth in GDP, but this has not helped the unemployment situation which is high (29%). To tackle this, the labour market needs to be reformed, the business environment needs to be improved, and more work is needed on fiscal discipline and transparency. The Report notes there has been a renewed deterioration of fiscal discipline and the quality of public spending should be improved with a shift towards growth-enhancing investments.

"Ability to Take on the Obligations of Membership

"The Report concludes that Macedonia continues to fulfil its commitments to the Stabilisation and Association Agreement and it is at an advanced stage of legislative alignment, which is sufficient to proceed to beginning accession negotiations.

"The Government welcomes the Progress Report on Macedonia and agrees with its assessment that, given its cumulative progress over several years, it continues to meet the political criteria. That positive recommendation is increasingly overshadowed by serious concerns over lack of political dialogue, politicisation of institutions and services, and media freedom. Over the coming year, all stakeholders in Macedonia should make efforts to resolve its political crisis, increase the space for independent voices, and develop a joint approach to a multi-ethnic society. The Government continues to believe that the best way to address these concerns is through the opening of accession negotiations and the scrutiny of individual Chapters. It also agrees with the Commission's recommendation that the name issue should not be a block to beginning discussions on the negotiating framework.

"Montenegro

"The Report finds that Montenegro has continued to make progress in accession negotiations and the screening process was completed in May. Twelve Chapters have now been opened, including key rule of law Chapters 23 and 24. Despite this progress, further improvement is still required.

"Political Criteria

"Democracy and Rule of Law: The Report states that the government has continued to show its commitment to EU accession. Election legislation has improved but further efforts are needed to address remaining international recommendations and build public confidence. The adoption of new parliamentary rules of procedure and appointments in key judicial and prosecutorial positions, including a new Supreme State Prosecutor, are positive steps. However parliament's administrative capacity still needs to be strengthened and the government needs to do more to improve transparency.

"Implementation of Action Plans on Chapters 23 and 24 has begun but progress has been slower than expected. Reforms in judicial recruitment are still incomplete and the efficiency of the judiciary needs to increase. The political and judicial follow up on high level corruption cases has been disappointing. More generally, on organised crime and corruption, Montenegro needs to strengthen its legislative framework, increase capacity of institutions, improve coordination and develop a track record of successful prosecutions.

"Human Rights and Protection of Minorities: The Report finds that Montenegro continues to respect international human rights instruments and is gradually familiarising itself with reporting mechanisms. Amendments to its Law on the Ombudsman bring it closer to European standards, although they have weakened its role on discrimination cases. Gaps remain between legal alignment and practice and the capacity of institutions in charge of the protection of rights needs to be strengthened. Concerns remain about media freedoms. Some progress has been made in investigations into violence against journalists, but there have also been new cases and investigations need to be accelerated.

"Regional Issues and International Obligations: The Report concludes that Montenegro continues to play an active role in regional cooperation and maintains good relations with its neighbours. However, it needs to align itself with EU positions relating to bilateral immunity agreements.

"Economic Criteria

"The Report finds that Macroeconomic stability has improved slightly as the economy continues to recover from the 2012 recession - GDP growth in 2013 was 3.3%. However, despite consolidation efforts, problems remain with the fiscal imbalance. Youth and long term unemployment are high, whilst economic diversification and competitiveness are weak. Uncertainties in the legal and judicial system are a hindrance to foreign direct investment. Further economic reforms and efforts to tackle corruption are essential to improve the business environment and address unemployment.

"Ability to Take on the Obligations of Membership

"The Report says that Montenegro has made some further progress. Twelve Chapters, are now open, and two (science and research, and education and culture) are provisionally closed.

"However, uneven progress since opening Chapters 23 and 24 is a concern. As the first country to open these rule of law Chapters under the New Approach, the Report believes that it is essential that Montenegro makes progress against interim benchmarks to keep the overall pace of negotiations on track.

    "The Government agrees with the Commission's assessment of progress and on the areas where further improvement is needed. Montenegro has continued to show its commitment to EU accession, but the Report rightly highlights the need to deliver tangible results on key rule of law Chapters to maintain the pace of progress through negotiations. This will require strong political commitment and sustained efforts in the year ahead.

SERBIA

"The Report states that the EU reached a 'turning point' in its relations with Serbia with the start of accession negotiations in January. The screening process is well underway and is expected to be completed in 2015. Serbia must focus on delivering on its reform priorities, including the rule of law, and enter a new phase in the normalisation of relations with Kosovo.

"Political Criteria

"Democracy and Rule of Law: The Report says that the new government has demonstrated strong commitment to EU accession. Serbia has adopted a comprehensive strategy on administrative reform and established a Secretariat for Public Policies. It needs to focus on implementation and instil mechanisms to move towards greater transparency. The Serbian government and parliament need to improve their relationships with independent regulatory bodies, including by following up on their findings. Serbia has taken the first steps on implementing its national strategies on judicial reform and the fight against corruption. It must continue with implementation and strengthen the independence of the judiciary, including by adopting legislation on free legal aid and whistle-blowers. Serbia needs to develop comprehensive action plans for the rule of law Chapters 23 and 24, and build a track record of concrete results in tackling organised crime and corruption.

"Human Rights and Protection of Minorities: The Report finds that the legislative framework for protection of human rights and minorities is generally in place. The holding of a Pride Parade without major incident was a significant step, but the Serbian government still needs to do more to ensure that rights are consistently respected in practice and vulnerable groups protected. There are concerns over deteriorating conditions for freedom of expression in the media. The adoption of three new media laws is positive but they need to be implemented and the government must do more to create an environment for full freedom of expression to be exercised.

"Regional Issues and International Obligations: The Report says that Serbia remains committed to regional cooperation and to the EU-facilitated dialogue with Kosovo. It generally complies with its international obligations, and continues to engage constructively with neighbouring countries. However, progress on normalisation with Kosovo has slowed in 2014 following elections in both countries. Serbia needs to focus on implementing outstanding elements of the April 2013 normalisation agreement and to be ready to move forward in the Dialogue with Kosovo once a new government is established there.

"Economic Criteria

"Serbia's economy remains weak and continues to face structural problems, high fiscal imbalances and unemployment. State presence in the economy remains significant and the private sector is weak. But the economic structure is slowly changing and the government has made a strong commitment to economic reform, including increasing competiveness and reducing the deficit. It now needs to accelerate implementation and make significant efforts to strengthen fiscal consolidation.

"Ability to Take on the Obligations of Membership

"Serbia has continued with efforts to align its legislation to EU requirements in many fields. This has included some progress on free movement of goods, public procurement, company law and taxation. However, progress on Chapters 23 and 24, has been limited and Serbia's alignment with EU foreign and security policy declined significantly compared to previous years. Serbia's Stabilisation and Association Agreement entered into force in October 2013, and Serbia has continued to build a satisfactory record in implementing its obligations.

"The Government welcomes the Commission's assessment. Reaching the milestone of opening accession negotiations was testament to the progress that Serbia has made on reforms, and its normalisation of relations with Kosovo. Serbia has made a positive start to negotiations during what has been a challenging year, with disastrous floods and a difficult economic background. The Government agrees with the assessment of progress on key reforms and welcomes the focus that the Progress Report place on the challenges ahead. Negotiations will be demanding and will require a sustained effort from Serbia over a long period. Effective implantation of economic and rule of law reforms will be key, and Serbia must continue to make progress in its relation with Kosovo. The Government also remains concerned about Serbia's ongoing failure to align itself to EU positions on Ukraine.

TURKEY

"The Report recognises where Turkey has made progress over the past year, through continuing progress towards a settlement of the Kurdish issue, the further implementation of reform packages and broader foreign policy cooperation - including through continued Syrian humanitarian assistance. In light of challenges in Turkey's immediate neighbourhood, the Report notes the increasing strategic importance of Turkey as a foreign policy partner. The Progress Report also notes several areas of concern, particularly over the protection of fundamental rights and the independence of the judiciary. Periodic social media bans focused attention on freedom of expression. The strength of the Turkish economy and significance as an energy partner for the EU is also given prominence.

"Political Criteria

"Democracy and Rule of Law: The Report restates the EU's commitment to an active and credible accession process, to achieve the full potential of EU-Turkey relations. Progress made on the EU Readmission Agreement and Visa Liberalisation dialogue has created a new momentum in relations, further strengthened by the publishing of Turkey's EU Strategy. It further notes the importance of opening negotiations on the relevant Chapters on rule of law and fundamental rights, to provide a roadmap for reforms in these key areas.

"The Commission welcomes the continuing implementation of the third and fourth Judicial Reform packages as well as the Democratisation Package of September 2013. The Report recognises important steps aimed at aligning Turkey's legal framework and practice with European Court of Human Rights case law. The performance of the Constitutional Court was of particular note among enlargement countries, as having strengthened the protection of fundamental rights and exemplifying the resilience of Turkey's constitutional system.

"However, the Commission highlights the response of the Turkish government towards corruption allegations as raising serious concerns over independence of the judiciary and rule of law. In particular the widespread dismissals or reassignments of judges, prosecutors and police officers raised concerns over the independence of the subsequent investigations. The Report calls for the ongoing investigations to be impartial and transparent.

"The Report calls for greater EU engagement to promote dialogue across the political spectrum and civil society, to overcome the increased polarisation of the political landscape. In the fight against organised crime and human trafficking, the Report assesses that Turkey has made progress, particularly in countering the financing of terrorism. The Report highlights several areas where Turkey could further align with EU standards in these areas.

"Human Rights and Protection of Minorities: The Report calls for substantial efforts to guarantee minority rights, including the rights of women, children and LGBTI individuals. The adoption of a law to bring a stronger legal foundation to talks aimed at finding a solution to the Kurdish issue, continued the sustained progress in this area of recent years. The Report notes the continued implementation of the 2013 Democratisation Package, which promotes the protection of minority rights, including through expanded Kurdish language rights and greater recognition of religious minorities. Further work is needed to ensure full respect for all property rights, including those of religious minorities.

"Regional Issues and International Obligations: On Cyprus, the Report welcomes Turkey's support of the resumption of fully-fledged settlement talks. The Report calls on Turkey to implement the Additional Protocol to the Association agreement (also known as the 'Additional Ankara Protocol', allowing Cypriot vessels into Turkish ports and airports), and to normalise relations with the Republic of Cyprus.

"Economic Criteria:

"In contrast to the Western Balkan enlargement countries, Turkey is identified as having a functioning market economy. The Report also highlights that the Turkish economy should be able to cope with competitive pressure and market forces within the union. A regular EU-Turkey high level economic dialogue is encouraged. The Report notes that, despite the slowdown in 2012, output and employment have increased. Unemployment has risen as a result of a rapidly expanding labour force. Inflation has continued above the central bank's targets, and the Report calls for monetary policy to focus on price stability.

"Ability to Take on the Obligations of Membership

"The Report identifies a number of areas where legislation needs to be more closely aligned with EU standards, including legislation concerning the right to freedom of assembly. The unclear definition of legislation concerning membership of armed organisations continues to result in a large number of arrests and must be addressed. The Report complements the entry into force of the Law on Foreigners and International Protection which enhanced Turkey's alignment with the migration aspects of Chapter 24 (justice, freedom and security).

"The Government welcomes the Commission's assessment and agrees that whilst progress has continued in a number of important areas, the serious concerns raised in the Report over recent legislation covering the rule of law and fundamental rights need to be addressed. The Government agrees with the Commission that the EU accession process remains one of the most important drivers of reform in Turkey and has contributed to the significant progress achieved over the past decade. Continued momentum, particularly on Chapter 23, is necessary to further support efforts in Turkey, especially in light of the Turkish Government's renewed commitment to the accession process through the publication of their 'European Union Strategy'. Alongside the Commission, it encourages Turkey to pursue this positive approach, with concrete actions and timelines, as part of its National Action Plan for Turkey's EU Accession Process.

"The Government will continue to support the Commission's efforts to progress Turkey's accession process, including progress on fundamental rights and the rule of law. The Government agrees that Turkey is important for the security and diversity of the EU's energy supply. It supports Turkey and the EU's objective for Turkey to become a regional energy hub and an energy transit corridor to the EU. It welcomes the Report's recommendation of more intensive dialogue between the EU and Turkey on challenges in Turkey's near neighbourhood."

4.25 Finally, with regard to the Financial Implications, the Minister says:

    "The Reports have no direct financial implications. EU financial assistance for enlargement is delivered primarily via the Instrument for Pre-accession Assistance (IPA). The budget for IPA in the next Multiannual Financial Framework has not yet been agreed. The Government has been clear in negotiations of the IPA budget that it must respect the overall MFF ceilings agreed at February European Council."

Previous Committee Reports

None, but see: (35395)-(35403): Twenty-second Report: HC 86-xx (2013-14), chapter 11 (6 November 2013) and Thirty-third Report: HC 86-xxx (2013-14), chapter 18 (29 January 2014).





13   See 36110 - at chapter 8 of this Report. Back

14   See "Europe's ring of fire" in The Economist, 20 September 2014. Back

15   Also see (36371) 13769/14 at chapter 9 of this Report, where we deal with the Commission's 2013 Annual Report on Financial Assistance for Enlargment, i.e., the IPA and IPA-II and related financial instruments. Back


 
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Prepared 7 November 2014