Theme 9. The EU strategy of external relations development

9.1. Strategy and programs of external relations development with neighbour countries

9.2. Criteria for accession to the EU

9.3. Relations between Ukraine and the EU at the modern stage: problems and prospects

9.1. Strategy and programs of external relations development with neighbour countries

The Commission launched the European Neighbourhood Policy (ENP) in its Communication on Wider Europe of March 2003 and complemented it with a Communication in July 2003 which introduced the concept of Neighbourhood Programmes and outlined a new financial instrument to support the policy for the period post-2006 (European Neighbourhood and Partnership Instrument). The ENP provides the framework for closer cooperation with the neighbouring countries of the newly enlarged Union. Following endorsement of these concepts by Council conclusions in March and October 2003 respectively, the Commission further elaborated the policy initiative in a May 2004 Strategy Paper. The Council and European Council welcomed and endorsed the Commission’s Strategy Paper in June 2004.

Without necessarily involving the creation of new institutional arrangements, the European Neighbourhood Policy aims at establishing at the pan-European level an open and integrated market functioning on the basis of similar or harmonised rules with the EU acquis which can bring significant economic and other benefits to the EU partner countries. Given that some of these countries are in the middle of their transition to full market economies and developing their regulatory framework, the European Neighbourhood Policy places great emphasis on regulatory approximation and maintains that the first trade priority for them is currently their accession to the WTO.

The European neighbourhood policy (ENP) is a policy of the EU, which is directed on providing of realization of the EU strategy of safety and stability, peace and welfare at the European region, by adjusting of strategic relationship with all countries which have common land or marine borders with the countries-members of the EU: Algeria, Armenia, Azerbaijan, Belorussia, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Palestinian autonomy, Syria, Tunis and Ukraine.

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 its neighbours and instead strengthening the prosperity, stability and security of all.

The policy was firstly outlined in the Commission Communication on Wider Europe in March 2003, followed by Strategy Paper on the European Neighbourhood Policy in May 2004. The strategy sets out in concrete terms how the EU proposes to work more closely with these countries. As part of its report on implementation of the ENP, in December 2006 and again in December 2007, the Commission also made proposals as to how the policy could be further strengthened.

The ENP, which is chiefly a bilateral policy between the EU and each partner country, is further enriched with regional and multilateral co-operation initiatives: the Eastern Partnership (launched in Prague in May 2009), the Union for the Mediterranean (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).

Within the ENP the EU offers its 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 ENP goes beyond existing relationships to offer political association and deeper economic integration, increased mobility and more people-to-people contacts. The level of ambition of the relationship depends on the extent to which these values are shared.

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.

The central elements of the ENP are the bilateral Action Plans between the EU and each ENP partner (12 of them were agreed). These Action Plans set out an agenda of political and economic reforms with short and medium-term priorities of 3 to 5 years. Following the expiration of the first Action Plans succession documents are being adopted. The ENP is not yet fully ‘activated’ for Algeria, Belarus, Libya and Syria since those have not agreed Action Plans.

The ENP builds upon existing agreements between the EU and the partner in question: Partnership and Cooperation Agreements (PCA) or Association Agreements (AA). Implementation of the ENP is jointly promoted and monitored through the Committees and sub-Committees established in the frame of these agreements. The European Commission under its own responsibility publishes each year the ENP Progress Reports.

In order to realise the vision of building an increasingly closer relationship with our neighbours, and a zone of stability, security and prosperity for all, the EU and each ENP partner reach agreement on reform objectives across a wide range of fields within certain “common” areas such as cooperation on political and security issues, to economic and trade matters, mobility, environment, integration of transport and energy networks or scientific and cultural cooperation. The EU provides financial and technical assistance to support the implementation of these objectives, in support of partners’ own efforts.

Many of the instruments and methods used in the ENP are similar to those used to support transition processes elsewhere e.g.

· At the outset of the process, the Commission prepared Country Reports assessing the political and economic situation as well as institutional and sectoral aspects, to assess when and how it is possible to deepen relations with that country. Country Reports were published in May 2004 on the first seven of the ENP countries to have Agreements in force with the EU. A further five Country Reports were published in March 2005 on the next countries to be included in the policy (Southern Caucasus) or whose Agreements had come into force (Egypt and Lebanon). Country Reports are submitted to the Council which decides whether to proceed to the next stage of relations.

· That next stage was the development of ENP Action Plans with each country. These documents are negotiated with and tailor-made for each country, based on the country’s needs and capacities, as well as their and the EU’s interests. They jointly define an agenda of political and economic reforms by means of short and medium-term (3-5 years) priorities. They cover political dialogue and reform, economic and social cooperation and development, trade-related issues and market and regulatory reform, cooperation in justice and home affairs, sectors (such as transport, energy, information society, environment, research and development) and a human dimension (people-to-people contacts, civil society, education, public health …). The incentives on offer, in return for progress on relevant reforms, are greater integration into European programmes and networks, increased assistance and enhanced market access. 12 such ENP Action Plans are being implemented – with Israel, Jordan, Moldova, Morocco, Occupied Palestinian Territory, Tunisia and Ukraine since 2005 and with Armenia, Azerbaijan, Georgia, Lebanon and Egypt since end 2006/beginning 2007. Following the expiration of the first Action Plans succession documents are being adopted.

The implementation of the mutual commitments and objectives contained in the Action Plans is regularly monitored through sub-committees with each country, dealing with those sectors or issues. On 4 December 2006, the Commission issued its first periodic report on progress and on areas requiring further progress. A second set of progress reports on implementation of the ENP in 2007, a communication drawing conclusions from the reports and a sectoral progress report, were adopted on 3 April 2008. The last set of progress reports on the implementation of ENP in 2008 was adopted on 23 April 2009. The third package of progress reports on the implementation of ENP in 2008 was adopted on 23 April 2009. The communication on stock-taking of the ENP (2004-2009), 12 progress reports on implementation of the ENP in 2009 and sectoral progress report, were adopted on 12 May 2009.

Implementation of the reforms is supported through various forms of EC-funded financial and technical assistance, including instruments which have proven successful in supporting reforms in Central, Eastern Europe and South-Eastern Europe but also new instruments, such as the Neighbourhood Investment Facility (NIF).

Funding

From 1 January 2007 the European Neighbourhood Policy and Strategic Partnership with Russian Federation are financed through a single instrument - the European Neighbourhood and Partnership Instrument (ENPI). It is designed to target sustainable development and approximation to EU policies and standards - supporting the agreed priorities in the ENP Action Plans, as well as the Strategic Partnership with Russia. For the Financial Framework 2007-2013, approximately €12 billion in EU funding are available to support these partners' reforms, an increase of 32% in real terms as compared to 2000-2006 Financial Framework. Until 31 December 2006, EU assistance to the countries of the ENP and to Russia was provided under various geographical programmes including TACIS (for Eastern neighbours and Russia) and MEDA (for Southern Mediterranean neighbours), as well as thematic programmes such as EIDHR (European Initiative for Democracy and Human Rights). For the budgetary period (2000-2006), the funds available were approximately €5.3 billion for MEDA and €3.1 billion for TACIS, as well as approximately €2 billion in European Investment Bank lending for MEDA beneficiary countries and €500 million for TACIS beneficiary countries.

Funds allocated to individual country programmes depend on their needs and absorption capacity as well as their implementation of agreed reforms. An important aspect of the ENP, and the strategic partnership with Russia, is to markedly improve cross-border cooperation with countries along the EU’s external land and maritime borders, thus giving substance to our aim of avoiding new dividing lines. The ENPI therefore supports cross-border contacts and co-operation between local and regional actors and civil society. The 15 ENPI cross-border cooperation (CBC) programmes, identified on the external borders of the EU, are receiving financial support of €1.18 billion for the period 2007-2013. The programmes are getting underway at the end of 2007/beginning of 2008 The Commission approach to CBC can be found in the ENPI Cross-Border Cooperation Strategy Paper.

New forms of technical assistance have been extended to ENP partners. Legislative approximation, regulatory convergence and institution-building are being supported through mechanisms which proved successful in transition countries that are now EU Member States i.e. targeted expert assistance (Technical Assistance and Information Exchange - TAIEX), long-term twinning arrangements with EU Member States’ administrations – national, regional or local – and participation in relevant Community programmes and agencies.

The Neighbourhood Investment Facility was established at the end of 2007 and will start to support lending to ENP partners in 2008. The Commission will allocate to the Facility an amount of €700m (2007-2013) and asked Member States to gradually match the Community contribution, to maximise the leverage of loans. The Facility will fund projects of common interest focussing primarily on energy, environment and transport.

Under all these instruments, EU assistance priorities are identified, together with the countries concerned and other relevant actors, in general Country Strategy Papers (CSPs) covering 7 year periods, National Indicative Programmes (NIPs) covering 3 years and detailed annual programmes. The priorities identified in the Action Plans, agreed with the authorities of the country, are also useful in guiding the programming of assistance programmes – including for other donors and IFIs. Tenders under EC assistance programmes are open to companies from the 27 EU Member States, from the candidates (1) and potential candidates (2) and from ENP partners themselves, and are awarded in line with standard EC procurement rules.

For self preparation: Neighbourhood Investment Facility (NIF), European Commission Communication on Wider Europe, Strategy Paper on the European Neighbourhood Policy, ENPI Cross-Border Cooperation Strategy Paper.