The European Neighbourhood Policy Monitoring Committee for Euro

The European Neighbourhood Policy Monitoring Committee for Euro -Mediterranean Cooperation in RTD Brussels, 29 June 2006 Fredrik Svedang European Commission

The EU’s political geography - Policies towards non-EU-members - § EFTA / EEA – multi- and bilateral accords § Candidate Countries (Bulgaria, Romania, Turkey, Croatia, Macedonia) - the Accession Process § “Potential candidates” (Albania, Bosnia & Herzegovina, Serbia, Montenegro) – the Stabilisation and Association Process § Neighbours – the European Neighbourhood Policy

The EU and its neighbours

ENP partners The immediate neighbours of the enlarged EU … but not candidate countries or “potential candidates” § Ukraine, Moldova, Belarus § Georgia, Armenia, Azerbaijan § Syria, Lebanon, Israel, Palestinian Authority, Jordan, Egypt, Libya, Tunisia, Algeria, Morocco § Strategic Partnership with the Russian Federation

Russian Federation Not included in the European Neighbourhood Policy. Instead, a Strategic Partnership based on 4 “common spaces”: § economic (incl. environment and energy) - promote integration § § via market opening, regulatory convergence, trade facilitation, infrastructure freedom, security and justice – JHA, human rights and fundamental freedoms external security - partnership on security issues and crisis management research and education (incl. cultural) - capitalise on strong intellectual and cultural heritage “Road maps” agreed in May 2005

Aims and principles § Partnership-for-reform: supports reform and modernisation (inter alia by projecting internal EU policies) as a contribution to prosperity, stability, and security (aim: “ring of well-governed countries”) § Responds to countries’ situation (differentiation) § Joint ownership (agreed priorities)

Fundamentals Good governance, prosperity, stability, security, based on: § Democracy, human rights, rule of law § Sound macro-economic management, market economy and sustainable development § Sectoral reforms, strengthened institutions § Joint response to common challenges e. g. prosperity gaps, migration, crime, environment, public health, terrorism. . .

Fundamentals § A strong policy – support of all EU Institutions; across three pillars (Community and EU competencies) § Distinct from EU enlargement (does not prejudge in either way) § Rewards progress (positive and inherent conditionality) § Within EU convergence of Member States’ perceptions of neighbourhood (policy of EU-25) § Civil society / academia take keen interest in ENP

Development of the ENP 2002/3: Thinking “beyond” EU enlargement: “Wider Europe”, “new neighbourhood”, “ring of friends” 2003/4: Various Commission Communications and (European) Council Conclusions establish ENP as an EU policy 2004: “ENP Strategy Paper“ (May 2004) First 7 Country Reports; start of first Action Plan consultations 2005: Adoption of first 7 ENP Action Plans starts; implementation starts; 5 more Country Reports 2006: Conclude next 5 ENP Action Plans; first Progress Reports

Content of the policy § More focus and direction: A comprehensive agenda for relations with EU neighbours § Aim: good governance and institutional reform § Offer: progressive economic integration (“stake in Internal Market”), deepening political co-operation § Based on: values and common interests § Assistance for: agreed reform objectives, economic and social development and cross-border cooperation

Method § Invigoration of existing relations – adding a detailed agenda and accountability for progress on both sides; Progress Reports (first end 2006) § Selective use of experience from supporting transition in candidate and pre-candidate countries, e. g. how to promote and sequence reforms, “twinning” and TAIEX… § Gradual approximation with the acquis communautaire in selected relevant areas § “Socialisation” model: European “soft power” (European paradigm of development) – policy for the long haul (consistency in process steer)

ENP Action Plans § Key operational instruments § Country-specific, tailor-made political documents § Jointly defining agenda on political and economic reforms § Short & medium-term priorities (3 – 5 years horizon) § Guidance for assistance programming

ENP Action Plans – main areas Same chapters in all Action Plans, content is specific to each country: 1) Political dialogue and reform 2) Sound macro-economic management, economic and social cooperation and development 3) Trade related issues, market and regulatory reform 4) Co-operation in Justice, Freedom and Security 5) Sector-policies: Transport, energy, information society, environment, research and development 6) Human dimension: People-to-people contacts, civil society, education, public health

Building on existing framework ENP builds on: § existing legal and institutional agreements (Partnership and Co-operation Agreements, Association Agreements established under the Barcelona Process. . . ) § established bodies (Association and Co-operation Councils, Committees, sub-Committees) as mechanisms for promoting and monitoring implementation of Action Plans § “ Tracks exist, 3 -5 year schedule is new “

ENP and the Barcelona Process § Same general objectives; ENP complements the Euro-Med (EMP) “Barcelona Process” which continues as the multilateral element of EU relations with Southern Mediterranean neighbours § ENP: additional bilateral commitments and accountability, incentives and opportunities § Two tracks: multi-lateral (EMP) – bilateral (ENP) § Differentiated tools and methods (precise reform goals and steps, regulatory harmonisation) Example: Barcelona envisages trade integration, focusing on tariff issues, ENP goes further: economic integration (inclusion in networks and markets, regulatory alignment etc. ) § ENP helps to realise the full potential of the EMP

EC financial support Current (2000 - 2006): § € 8. 4 bn (MEDA € 5, 3 bn, TACIS € 3, 1 bn) § EIB lending (€ 2 bn Mediterranean, € 500 m Eastern Europe) Future (2007 -2013): - European Neighbourhood & Partnership Instrument (ENPI) still under negotiation within EU § § § More flexible, policy-driven instrument Supporting priorities agreed in the ENP Action Plans simplified approach for cross-border co-operation Technical assistance for institutional capacity-building Budget: € 11. 97 bn ( ~ 45% increase over previous FP) EIB lending

Summary: Added value of ENP § Focuses an immediate neighbourhood; special category of external relations § Increased scope and intensity of relations – comprises all policy fields (all pillars); “beyond border” partnership more than classical external relations § Encouragement of reforms and development (political, economic, social, institutional) § New forms of financial and technical assistance (addition of TAIEX, twinning, budgetary support to sector-specific reforms, etc. )

RTD effects ? § The opening of the European Research Area to partner countries and the integration of the scientific communities of neighbouring countries is a challenge. § Our goal is to increase the participation of ENP countries in the Community’s RTD activities. We also want to improve their national research systems’ contribution to economic growth and social welfare. § The policy therefore needs to support structural and institutional capacity building activities. These activities are identified and implemented through the Action Plans.

Conclusions § External relations’ priority of the Commission; part of the portfolio of Commissioner Ferrero. Waldner § An ambitions and enhanced political framework for EU relations with neighbouring countries § Of mutual, long-term interest (enlightened EU self-interest); no alternative to ENP: nonengagement in neighbourhood not an option § What can we achieve? … a matter of political will !

ENP Website Dedicated web site on Europa server under “Commission – Europe in the World”: http: //ec. europa. eu/comm/world/enp