Documents considered by the Committee on 24 March 2015 - European Scrutiny Contents


13 Towards a new European Neighbourhood Policy

Committee's assessment Politically important
Committee's decisionNot cleared from scrutiny; further information requested
Document detailsJoint Consultation Paper — Towards a new European Neighbourhood Policy
Legal base
DepartmentForeign and Commonwealth Office
Document numbers(36714), —, JOIN(15) 6

Summary and Committee's conclusions

13.1 The European Neighbourhood Policy (ENP) was developed in 2004, with the objective of avoiding the emergence of new dividing lines between the enlarged EU and neighbouring countries, and instead strengthening their prosperity, stability and security. It presently involves the EU's 16 closest neighbours — Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the Occupied Palestinian Territories, Syria, Tunisia and Ukraine.

13.2 The ENP is chiefly a bilateral policy between the EU and each partner country, complemented by regional and multilateral co-operation initiatives: the Eastern Partnership (launched in Prague in May 2009), the Euro-Mediterranean Partnership (EUROMED): the Euro-Mediterranean Partnership, formerly known as the Barcelona Process, re-launched in Paris in July 2008), and the Black Sea Synergy (launched in Kiev in February 2008).

13.3 The ENP offers the EU's neighbours a privileged relationship, building upon a mutual commitment to common values (democracy and human rights, rule of law, good governance, market economy principles and sustainable development). The level of ambition of the relationship depends on the extent to which these values are shared. The ENP includes political association and deeper economic integration, increased mobility and more people-to-people contacts. ENP sector policies cover a broad range of issues, including employment and social policy, trade, industrial and competition policy, agriculture and rural development, climate change and environment, energy security, transport, research and innovation, as well as support to health, education, culture and youth.

13.4 The last ENP review was in 2011, which produced a stronger focus on the promotion of deep and sustainable democracy, economic development, and conditionality (the "more for more principle"). Each year, there is an overview, supplemented by an annual progress report on each partner country. The most recent one, entitled Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013, hinted at the broader, strategic questions that arose from developments over the preceding 12 months (see paragraphs 13.22-13.26 below for details, and the Committee's thoughts thereon).

13.5 The Joint Consultation Paper was launched on 4 March 2015, via a joint press conference by the EU High Representative for Foreign Affairs and Security Policy (HR; Federica Mogherini) and Enlargement Commissioner Johannes Hahn. The HR noted that the region has changed greatly in the last 10 years, and particularly since 2011. The EU needed "to review our policy, our way of working, our partnership with the countries of our region": to move from an approach based on the evaluation of progress to "a more political dialogue, to a more political partnership, to a more cooperation oriented approach between equal partners". In particular:

    "because as our region is in flames, both to the East and South, we have to use all the potential of our bilateral relations with partners in the region to have an effective impact on our region".

13.6 She and her officials would continue to "work together in the next months, myself together with Commissioner Hahn, our offices in a perfect team"; the main purpose being:

    "to have better and more effective instruments to work in our neighbourhood, in our region and we desperately need to find better instruments to be better effective."

13.7 Enlargement Commissioner Johannes Hahn said that the consultation needed to look at four key points:

·  increase differentiation: recognise that our partners are very diverse; some want closer integration, some want a different kind of relationship; consider how best to pursue the relationship, perhaps in new formats;

·  ownership: the new ENP must reflect the views and experience of the EU's partners; not be condescending, patronising or preaching; develop a real partnership of equals on the basis of shared interests, while always promoting universal principles;

·  focus: need not cover every sector with every partner: for those that want, and who are able, Association Agreements and DCFTAs; for those who can't, or do not currently want, to engage so deeply, focus on making partnerships more effective. Widen the traditional focus on trade and mobility with a new emphasis on energy security, threats to security from organised crime, the "frozen conflicts";

·  greater flexibility: being able to react to changing circumstances, and crises when they arise.

13.8 The HR and Commissioner professed themselves determined to consult as widely as possible, particularly in the partner countries, between now and the end June —looking for "concrete ideas that will suit us and our partners, and that will deliver results the public can understand" (see paragraph 13.29 below for full details).

13.9 Against this background, the aim of the Joint Consultation Paper is to frame the discussion for a careful re-examination of the ENP. It sets out some preliminary findings in terms of lessons learned from the ENP to date; suggests some first elements of developing a stronger partnership; and identifies a number of key questions for discussion with key partners and stakeholders. The results of the consultation will contribute to a further Communication in the autumn of 2015, setting out concrete proposals for the future direction of the ENP (see paragraphs 13.28-13.31 below for details).

13.10 The Minister for Europe (Mr David Lidington) welcomes the publication of the Joint Communication, and considers this an important opportunity to refocus ENP. He favours "a more flexible, ambitious and effective policy for the region, that is capable of reacting to the problems arising from conflict, and dealing with the question of resilience and stability". He sees the ENP as facing these key challenges:

·  the "one-size-fits-all" approach: the ENP incorporates some differentiation but needs to tailor its objectives, aims and use of instruments for each region, as well as individual countries, even further;

·  low levels of understanding/support: the ENP is complex and technocratic, based largely around binding countries to the EU through international agreements, such as Association Agreements, Strategic Modernisation Partnerships, etc., as a means to deliver change;

·  how to incentivise reform: the EU quite rightly insists on substantive political and economic reforms in exchange for access to its markets; but there are questions as to whether the EU has been effective enough in incentivizing the necessary reforms

13.11 The Minister therefore broadly agrees with the Joint Consultation Paper's key themes: Differentiation, Focus, Flexibility, Ownership and Visibility. In responding, the UK will focus on:

·  improving differentiation to allow the ENP to adapt to the changing situation in the region;

·  increased flexibility so that resources can be used more effectively;

·  better response to crisis management;

·  more effective strategic communications in the region; and

·  greater bilateral involvement by Member States, to complement EU efforts (see paragraphs 13.32-13.37 below for details).

13.12 With "our region … in flames, both to the East and South", this Joint Consultation Paper is plainly timely. But it would be thus even were that not so, for all the other reasons identified by both the HR/Commissioner and the Minister.

13.13 There are very large sums of money involved — the ENP draws its funding primarily from the European Neighbourhood Instrument (ENI), to which over €15 billion has been allocated in the 2014-2020 financial perspective. According to the Commission, in 2011, total trade between the EU and its ENP partners was worth €230 billion; the EU issued 3.2 million Schengen visas to ENP partners in 2012; and in 2007-2013, provided partners with over €12 billion in grant money for the implementation of the ENP. As we noted last year, it is inconceivable that the EU would not have some such policy: but, at the end of the day, no-one has any real idea of how effective this expenditure of over €12 billion has been.

13.14 The EU is also engaged in other analogous activities, such as the Central Asia Strategy and a prospective regional strategy for Syria and Iraq as well as the Da'esh threat.[59] So what emerges from this consultation will have major implications for a wide range of other EU activity around the globe, particularly in terms of effectively relating objectives, approach, expenditure and outcomes.

13.15 And, prior to the publication of the results of this consultation exercise, EU leaders will return to that most basic of foreign policy issues: defence.[60]

13.16 Under "Next Steps", the Joint Consultation Paper says its aim is "to consult as widely as possible both with partners in the neighbouring countries and with stakeholders across the EU", and that:

    "We will consult with Member States and partners, but also with a wide range of actors from parliaments, including the European Parliament, civil society and think tanks, and from the social partners, business and academic communities. We will engage with key international organisations active in the neighbourhood, including notably the Council of Europe, the OSCE as well as the major international financing institutions."

13.17 We note the Enlargement Commissioner has already engaged in a debate with the European Parliament only five days after publication of the joint consultation paper. However, we understand that, beyond that, the reference to consultation with parliaments in the paper refers to parliaments in the partnership countries, including taking a "roadshow" to each one and visits to each country's parliament; and that the Commission has no plans to reach out specifically to EU national parliaments for consultation on the ENP review. However, we further understand that the Commission would always welcome any proactive request from a national parliament to discuss the ENP review, be that an invitation to Westminster to give evidence or as part of a Committee's visit to Brussels.

13.18 We welcome this; although Parliament is about to be dissolved, its successor will have been established before the end of the consultation period. Once our successor Committee has been established we recommend that it consider seeking the Opinion of the new Foreign Affairs Committee, should there be time to do so.

13.19 In the meantime, we shall retain the Joint Consultation Paper under scrutiny, pending receipt of further information from the Minister on the outcome of the consultation. If this is in the form of a further depositable document, then we shall await a timely Explanatory Memorandum in the usual way. However, if for whatever reason it is in another format, then we rely upon him to provide a full and timely summary, with his (or his successor's) assessment and views thereon.

Full details of the documents: Joint Consultation Paper — Towards a new European Neighbourhood Policy: (36714), —, JOIN(15) 6

Background

13.20 In 2010-11, the EU reviewed the ENP and put a strong focus on the promotion of deep and sustainable democracy, accompanied by inclusive economic development. Deep and sustainable democracy includes in particular free and fair elections, freedom of expression, of assembly and of association, judicial independence, fighting corruption and democratic control over the armed forces. The new approach stresses the role of civil society, and incorporates the "more for more" principle, under which the EU will develop stronger partnerships with those neighbours that make more progress towards democratic reform.

13.21 The ENP remains distinct from the process of enlargement although it does not prejudge, for European neighbours, how their relationship with the EU may develop in future, in accordance with Treaty provisions.[61]

13.22 Our previous relevant Report centred on a Joint Communication, Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013 — the third of the customary annual reports on ENP implementation since the major overhaul in 2011, in which the "Arab Spring" was a major factor. The main features of the 2011 update were political association, economic integration, the mobility of people, a stronger partnership with civil society and better cooperation on specific sector policies. The Joint Communication reviewed progress by ENP partners against jointly agreed reform objectives.

13.23 In addition to the Communication, the progress of each ENP partner country in implementing reforms agreed with the EU and documented in their bilateral Action Plans was described in individual progress reports or memos. Country reports for Morocco and Tunisia were in French to increase their visibility in the partner countries themselves. For ENP partner countries where there was no Action Plan in place (Algeria, Belarus, Libya and Syria) the Commission issued a memorandum rather than a progress report. In addition, the Commission provided two regional reviews covering the Southern Neighbourhood and Eastern Partnership. There was also a Statistical Annex attached which provided selected political, economic, mobility and assistance related indicators, statistics and graphs. The key points of this mass of documentation were summarised in and commented upon (see sections in italics) by the Minister for Europe.[62]

13.24 More generally, the Minister noted that the UK continued to work with like-minded Member States to ensure that the ENP was "rooted in an incentive-based approach" and provided "a rigorous assessment of progress". The Minister described the Joint Communication as "a fair analysis of progress, and a welcome progression from previous reports". The analysis was "accurate and moderately robust in criticising partners for not fully delivering on their previous reform commitments"; the Minister would "continue to encourage EU institutions to continue this approach in the future".

13.25 The individual country reports reflected, in more detail, the very mixed picture painted more broadly in the Joint Communication and the documents on the regional dimensions. The EU's neighbours continued the struggle between an authoritarian past and associated ethnic conflicts, and a law-based, fully participatory, consensual and tolerant polity.

Our assessment

13.26 Though the Joint Communication was essentially narrative, and only prescriptive in the short-term, its title — Neighbourhood at the Crossroads — hinted at the broader, strategic questions that arose from developments over the preceding 12 months. In the south, "the neighbourhood" was, if anything, going backwards: Syria spoke for itself, Libya was divided and in many ways lawless, and it was difficult to see what EU values were shared by those governing Egypt. In the north, Russia was challenging the whole basis of the ENP: Ukraine was in crisis, and Belarus had already turned its back on the EU's "offer". With the crucial incentive of EU membership not part of that "offer", the EU therefore had two choices: withdraw, or follow Churchill's dictum — in more polite language, keep its shoulder to the wheel and look for incremental progress. Dealing with its neighbours in the east and the south remained nonetheless essential to both the EU and the UK's security. The EU's approach remained generally regarded as positive, and welcomed, by partner countries, and was thus able to take forward useful work in trade, transport, energy and mobility — and, where governments were less welcoming, help sustain and encourage those who strove for a more open society.[63]

13.27 On 4 March 2015, the EU High Representative for Foreign Affairs and Security Policy and Commission Vice-President (HR; Federica Mogherini) and Enlargement Commissioner Johannes Hahn jointly hosted a press conference, which they introduced thus:

HR MOGHERINI:

    "We have just decided in the college to formally launch the review of the European Neighbourhood Policy that as you know is already 10 years old, and last review was done in 2011, in the process of the so-called Arab Spring.

    "Our region has changed a lot in these last years, for sure in the last 10 years but also from 2011 — both our region to the East and to the South, with dramatic developments, but also with encouraging steps that were registered even recently both to the East and to the South.

    "We need to review our policy, our way of working, our partnership with the countries of our region, first of all because we feel we need to move from an approach that has been very much based on the judgement on the evaluation of the progress in our relationship to a more political dialogue, to a more political partnership, to a more cooperation oriented approach between equal partners. In particular because as our region is in flames, both to the East and South, we have to use all the potential of our bilateral relations with partners in the region to have an effective impact on our region.

    "We have common challenges with our partners, be it security, be it the protection of basic rights and principles, be it migration (and this is dramatically evident also today with the news coming from the Mediterranean again), be it energy or be it the promotion of Human Rights and democracy, be it the economic development, trade. A full agenda of things on which it is useful to strengthen our capacity to work together with our partners in the region.

    "So we will work together in the next months, myself together with Commissioner Hahn, our offices in a perfect team work I have to say that I am personally very proud of. We have started to work very well together in the Commission and I hope this will bring fruitful results in the coming months. We will work together in the next months, first of all with our partners listening and working together on what has had worth over these years, what has to be improved or changed, starting from listening process. We will do this both with the partners in the East and in the South.

    "We will have a couple of meetings that will be important in this view. The Riga summit on the East, the Barcelona meeting in April to the South, to have open and frank discussions with our partners on what we need to change and in which way.

    "We will also discuss this internally. The EU Foreign Ministers will start the discussion at our informal ministerial in Riga on Friday and Saturday this week.

    "It will be a process, Commissioner Hahn will tell you more about this, where the main purpose is to have better and more effective instruments to work in our neighbourhood, in our region and we desperately need to find better instruments to be better effective."

ENLARGEMENT COMMISSIONER JOHANNES HAHN

    "It is in the EU's own interests to maintain close relations with its neighbours. From energy security to migration, from trade to terrorism: we need to work together on the big challenges we all face.

    "What is the objective? We want to be a key partners for the countries on our doorstep, while defending their right to choose their own way forward. We prefer to work with democracies in open trading relationships, because we believe this is better for everyone. And, we want to have good working relationships on issues that affect us.

    "As High Representative has said, there has been a lot of changes in the neighbourhood in recent years. The ENP has not always been able to offer adequate responses to the changing aspirations of our partners. And therefore, the EU's own interests have not been fully served either.

    "That is why President Juncker has asked me, in close co-operation with the High Representative/Vice-President to carry out a far-reaching review of this policy. Many Member States — and indeed our partners — have already signalled they also believe change is necessary.

"In the consultation, we need to look at four key points:

    "First. What can we do increase differentiation in the way we work with our partners? We need to do more to recognise that our partners are very diverse. Not just different East and South, but different within the East and within the South. Some want closer integration with us, and in these cases we need to reflect on what further steps are possible. Some want a different kind of relationship, and for these we need to consider how best to pursue the relationship, perhaps in new formats

    "Second. This brings me to ownership. The new ENP must reflect the views and experience of our partners. It must not be condescending, patronising or preaching. We must ensure that we develop a real partnership of equals on the basis of shared interests, while always promoting universal principles. The consultation will look at new ways of working, for example, potential changes to our annual reports.

    "Third. My third point is therefore focus: We need not cover every sector with every partner. For those that want, and who are able, we should pursue the Association Agreements and DCFTAs. But, for those who can't, or do not currently want to engage so deeply, let's narrow the focus to make our partnerships more effective.

    "Trade and mobility have been the traditional focus points: I want us to put a new emphasis on some that have not been fully used up to now: energy - both our energy security and that of our partners; and threats to security from organised crime to the frozen conflicts.

    "Fourth. Lastly, we need to be more flexible: this means being able to react to changing circumstances, and crises when they arise.

    "We are determined to consult as widely as possible, particularly in the partner countries and the consultation will last till end June. Then, we will come with a full proposal in the autumn.

    "We are looking for concrete ideas that will suit us and our partners, and that will deliver results the public can understand. Many like to ask what the end destination of this policy is: I am more interested to see what advances we can make in the next five years."[64]

The Joint Consultation Paper

13.28 In its introduction, "A Special Relationship", the HR says:

    "We need a stronger Europe when it comes to foreign policy. With countries in our neighbourhood, we need to step up close cooperation, association and partnership to further strengthen our economic and political ties."

13.29 She also notes that Article 8(1) TEU states that:

    "the Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation."

13.30 After briefly reviewing developments over the past ten years, and noting that Commission President Juncker has stated that there will be no further enlargement over the next five years, the HR says the aim of the Joint Consultation Paper is "to frame the discussion for a thorough re-examination of the ENP".

13.31 The Joint Consultation Paper sets out some preliminary findings in terms of lessons learned from the European Neighbourhood Policy to date, some suggested first elements of developing a stronger partnership and identifies a number of key questions for discussion with key partners and stakeholders. The results of the consultation will contribute to a further Communication in the autumn of 2015, setting out concrete proposals for the future direction of the ENP.

The Government's Explanatory Memorandum

13.32 In his Explanatory Memorandum of 19 March 2015, the Minister for Europe recalls that the first review in 2010-2011 resulted in "a stronger focus on the promotion of deep and sustainable democracy, economic development, and conditionality (the more for more principle)", and then says:

    "However, since that review, the situation in the EU's neighbourhood has become more volatile, with conflict in a number of countries, a reduction in democracy in others, and poor economic development. It has become clear to many, including the UK, that the ENP has not been as effective as we wished in delivering positive change in the region. Since early 2014, the UK has been calling for an ambitious and comprehensive review of the ENP, building on the outcomes of the 2011 review, in order to address these challenges."

13.33 The Minister then helpfully summarises the Joint Consultation Paper's four sections — a summary of the existing policy, lessons learned, key priorities, and next steps, each with a range of questions upon which the EEAS and Commission are seeking — as follows:

"Section I — Introduction. A Special Relationship sets out the situation in the neighbourhood and provides a broad overview of the challenges faced. It is a primarily factual record of events and the process that has led the EU to initiate this review.

"Section II — Lessons Learned identifies a number of shortcomings that need to be addressed, such as differing levels of engagement amongst partners, partner concerns over equal ownership, the impact of other countries in the region on partners and the ENP, and the need for the ENP to be more closely integrated into EU foreign policy. It asks questions about whether the EU's overall approach is the right one, whether one policy for the whole region remains appropriate, and then detail questions about implementation and the effectiveness of Action Plans, Progress Reports and sector co-operation.

"Section III — Towards a partnership with clearer focus and more tailored co-operation identifies four priority areas for further consultation and reflection, and poses key questions for the future:

"Differentiation

"Should the EU gradually explore new relationship formats to satisfy the aspirations and choices of those who do not consider the Association Agreements as the final stage of political association and economic integration?

"Focus

"Which priorities do partners see in terms of their relations with the EU? Which sector or policy areas would they like to develop further? Which areas are less interesting for partners?

"Does the ENP currently have the right tools to address the priorities on which you consider it should focus? How could sectoral dialogues contribute?

"Flexibility

"How to streamline Action Plans to adapt them better to individual country needs and priorities?

"Is annual reporting needed for countries which do not choose to pursue closer political and economic integration?

"How should the EU structure relations with countries that do not currently have Action Plans?

"Ownership & Visibility

"What do partners seek in the ENP? How can it best accommodate their interests and aspirations?

"Can ways of working be developed that are seen as more respectful by partners and demonstrate a partnership of equals? How should this impact on annual reporting?

"How can EU Member States be involved more effectively in the design and implementation of the policy, including as concerns foreign policy and security related activities? How can the activities in EU Member States be better coordinated with the ENP?

"Section IV — Next Steps, sets out the EEAS and Commission's plans to deliver the review, consult widely amongst Member States, stakeholders, civil society, business and parliaments, with a view to completing the consultation period at the end of June."

The Government's view

13.34 The Minister welcomes the publication of the Joint Consultation Paper, which he describes as:

    "an important opportunity to refocus Neighbourhood Policy in light of the many challenges faced in both the East and the South."

13.35 He continues his comments as follows:

    "The UK wants a more flexible, ambitious and effective policy for the region, that is capable of reacting to the problems arising from conflict, and dealing with the question of resilience and stability. We see the ENP as facing a number of key challenges:

·  "The one-size-fits-all approach, where there is a clear need for the ENP to tailor its objectives, aims and use of instruments for each region, as well as individual countries, even further. The ENP incorporates some differentiation already but the UK believes it could go further in its approach.

·  "Low levels of understanding/support: The ENP is complex and technocratic in its approach, which is based largely around binding countries to the EU through international agreements, such as Association Agreements, Strategic Modernisation Partnerships, etc. as a means to deliver change.

·  "How to incentivise reform. The EU quite rightly implements conditionality in its support, offering more for more, and insisting on substantive political and economic reforms in exchange for access to its markets. However, there are questions as to whether we have been effective enough in incentivising the reforms we need.

    "The UK therefore broadly agrees with the key themes set out in the Joint Communication: Differentiation, Focus, Flexibility, Ownership and Visibility. In responding to the Review, the UK will focus on the following issues: improving differentiation to allow the ENP to adapt to the changing situation in the region; increased flexibility so that resources can be used more effectively; better response to crisis management; more effective strategic communications in the region, and greater bilateral involvement by Member States, to complement EU efforts."

13.36 Turning to the Financial Implications, the Minister notes:

    "The European Neighbourhood Policy draws its funding primarily from the European Neighbourhood Instrument (ENI). The ENI is worth over €15 billion for the 2014-2020 financial perspective.

    "Although the ENP Review is not envisaged to discuss specific allocations, it will almost certainly impact on how and where the EU spends ENI funding in the future. For example, when the ENI was launched, 75% of the funding went to the Southern neighbourhood. The gradual shift to the East has pushed this down to 65%. Following UK- led lobbying, some funds have been allocated on a reward for reform basis (more for more) e.g. Tunisia's funding has significantly increased. Crises have also impacted and not all allocations on paper have been disbursed (e.g. Egypt), and unspent funding elsewhere has been reallocated to crisis areas e.g. Syria.

    "Any outcome of this review will have a direct impact on the mid-term review of the ENI, which is due in 2017. The UK government will continue to use its influence, both during this Review, and the 2017 ENI Review, to ensure that any changes are met from within existing resources (i.e. no new money) and that the principles enshrined in the 2011 Review accountability, monitoring, reporting, and value for money, are maintained and protected."

13.37 Finally, on the Timetable, the Minister notes that the consultation period for this review will last until the end of June 2015, and that the EEAS and Commission then plan to submit their findings to the Council in the autumn of 2015.

Previous Committee Reports

None, but see (35946), 8595/14 +ADDs 1-15: Forty-eighth Report HC 83-xliii (2013-14), chapter 12 (7 May 2014).


59   See (36664), 6031/15, JOIN(15) 2: Thirty-Fifth Report HC 219-xxxiv (2014-15), chapter 7 (4 March 2015) for the Committee's consideration thereof. Back

60   See (35696), 17859/13, JOIN(13) 30 at chapter 19 of this Report for the Committee's latest consideration of the preparations for the June "defence" European Council. Back

61   European Neighbourhood Policy. Back

62   See (35946), 8595/14 +ADDs 1-15: Forty-eighth Report HC 83-xliii (2013-14), chapter 12 (7 May 2014) for full information. Back

63   DittoBack

64   Press Release. Back


 
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