REPORT on enlargement: progress report
(COM(2002) 700 – C5‑0474/2002 – 2002/2160(INI)) Part 1: Motion for a resolution Part 2: Explanatory statement and opinions of the other committees
7 November 2002
Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy
Rapporteur: Elmar Brok
Co-rapporteurs: Jacques F. Poos, Jürgen Schröder, Michael Gahler, Luís Queiró, Elisabeth Schroedter, Ioannis Souladakis, Ursula Stenzel, Jas Gawronski, Jan Marinus Wiersma, Demetrio Volcic, Geoffrey Van Orden, Baroness Nicholson of Winterbourne, Arie M. Oostlander
PROCEDURAL PAGE
By letter of 9 October 2002, the Commission forwarded to Parliament its Strategy Paper and Report on the progress towards accession by each of the candidate countries (COM(2002) 700 – 2002/2160(INI)).
At the sitting of 10 October 2002 the President of Parliament announced that he had referred the report to the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy as the committee responsible and to all committees concerned for their opinions (C5‑0474/2002).
The Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy had appointed Elmar Brok rapporteur at its meeting of 30 September 2002.
The committee considered the draft report at its meeting(s) of 21 October and 4‑5 November 2002.
At the latter meeting it adopted the motion for a resolution by 54 votes to 2.
The following were present for the vote: Elmar Brok, chairman and rapporteur, Baroness Nicholson of Winterbourne (co-rapporteur), Geoffrey Van Orden (co-rapporteur) and Christos Zacharakis, vice-chairmen; Niall Andrews (for Luís Queiró), Per-Arne Arvidsson, Alexandros Baltas, Bastiaan Belder, André Brie, Michael Cashman (for Glyn Ford), John Walls Cushnahan, Véronique De Keyser, Andrew Nicholas Duff (for Ole Andreasen), Olivier Dupuis (for Francesco Enrico Speroni), Michael Gahler, Per Gahrton, Jas Gawronski, Vitaliano Gemelli (for Amalia Sartori), Alfred Gomolka, Vasco Graça Moura (for Gerardo Galeote Quecedo), Ulpu Iivari (for Magdalene Hoff), Juan de Dios Izquierdo Collado (for Rosa M. Díez González pursuant to Rule 153(2)), Christoph Werner Konrad (for Alain Lamassoure), Efstratios Korakas, Joost Lagendijk, Armin Laschet, Hanja Maij-Weggen (for José Pacheco Pereira), Cecilia Malmström, Pedro Marset Campos, Miguel Angel Martínez Martínez (for Catherine Lalumière), Emilio Menéndez del Valle, Reinhold Messner, Hans Modrow (for Sami Naïr), Pasqualina Napoletano, Raimon Obiols i Germà, Arie M. Oostlander, Jacques F. Poos, Mechtild Rothe (for Klaus Hänsch), Jannis Sakellariou, José Ignacio Salafranca Sánchez-Neyra, Jacques Santer, Jürgen Schröder, Elisabeth Schroedter, Ioannis Souladakis, Ursula Stenzel, The Earl of Stockton (for David Sumberg), Hannes Swoboda, Charles Tannock, Antonios Trakatellis (for Ilkka Suominen), Bob van den Bos, Johan Van Hecke, Paavo Väyrynen, Demetrio Volcic, Karl von Wogau, Jan Marinus Wiersma and Matti Wuori.
(The explanatory statement and the opinion of the Committee on Economic and Monetary Affairs and Employment and Social Affairs will be published separately (Part 2 – A5‑0371/2002).
The report was tabled on 7 November 2002.
MOTION FOR A RESOLUTION
European Parliament resolution on enlargement: progress report (COM(2002) 700 – C5‑0474/2002 – 2002/2160(INI))
The European Parliament,
– having regard to the 13 Regular Reports 2002 of the Commission about the progress of the candidate countries and the Strategy Paper (COM(2002) 700 – C5‑0474/2002[1]),
– having regard to the conclusions of the Laeken European Council of December 2001 as well as the Brussels European Council of October 2002,
– having regard to all its resolutions and reports since the beginning of the accession process,
– having regard to Rule 163 of its Rules of Procedure,
– having regard to the report of the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy and the opinions of the Committee on Economic and Monetary Affairs and the Committee on Employment and Social Affairs (A5‑0371/2002),
A. emphasising that the forthcoming accession of 10 candidate countries to the European Union represents an historic step in the process of establishing stability, peace and prosperity on the continent of Europe,
B. whereas a large number of candidate countries have made impressive efforts on the way to accession to the European Union; whereas in this way they have achieved better functioning public institutions, improved conditions for the protection of consumers’, workers’ and entrepreneurs’ rights, better protection of the environment and public health as well as many other direct and tangible benefits for their citizens,
C. whereas many of the candidate countries have high unemployment,
D. whereas the evaluation of the candidate countries remains subject to strict compliance with the Copenhagen criteria and the conclusions of the Helsinki Council as well as to the principle of differentiation,
E. whereas 10 of those candidate countries will be able to join the European Union in 2004 provided that they continue to implement their reforms,
F. whereas recognition should be given to the 10 most advanced candidate countries, their politicians and all social forces, who have relentlessly modernised and reformed all parts of their countries to get ready for accession,
G. whereas for the Ten a successful closure of negotiations at the European Council of Copenhagen and a fruitful accession is contingent on a number of remaining issues and in some areas on some last efforts for reform,
H. whereas, therefore, this resolution primarily concentrates on the remaining problem areas, while fully acknowledging the results already achieved,
I. whereas Bulgaria and Romania have also shown substantial progress which needs to be accelerated so that they can accede to the EU as soon as possible,
J. whereas Turkey has taken some important steps towards fulfilling the political Copenhagen criteria, against which its progress is being measured in the same way as the progress of the other candidate countries,
K. whereas the disappointingly weak EU common position on the issue of signing agreements with the United States regarding the International Criminal Court has resulted in a lack of guidance for many concerned candidate countries,
L. whereas many candidate countries will be invited by NATO at its Prague Summit to start membership negotiations, and whereas the European Parliament considers that NATO accession will make a positive contribution to security and stability in Europe if accompanied by an open-minded dialogue with neighbouring countries,
M. whereas all the candidate countries contribute in a cooperative and fruitful manner in the work of the Convention to prepare the future of the enlarged EU,
N. whereas a comprehensive institutional and democratic reform of the Union is indispensable for its capacity to act after enlargement; reiterates, therefore, the utmost importance of a successful conclusion of the work of the Convention on the Future of Europe,
O. considering that ethnically fixated policies leading to collective expulsions and destruction of cultural goods are a flagrant breach of fundamental European rights and the common European legal culture,
Countries aiming at accession in 2004
1. Welcomes the extraordinary progress in the negotiations with all 10 countries on accession;
2. Supports all efforts to conclude the remaining and most difficult negotiation chapters with all 10 countries as soon as possible and in a manner that satisfies all parties;
3. Urges the Copenhagen European Council to set the date for accession for early 2004 and no later than 1 March 2004;
4. Expects from the Member States as well as the 10 candidate countries the necessary flexibility, in particular in the area of agriculture; considers that, in view of the substantial structural differences not only between the candidate countries and the Member States, but also between the candidate countries, support for farms and the rural infrastructure must be further simplified as a matter of urgency; expects all the candidate countries to be involved as soon as possible, on a consultative basis, in the process of reforming the common agricultural policy, so as to create the preconditions for speedy integration into an enlarged Union, although agricultural reforms should not constitute an obstacle to the conclusion of the current enlargement negotiations, any more than, conversely, enlargement should hinder agricultural reforms; emphasises the principle of solidarity between EU Members, meaning, also, that the financial impact of enlargement has to be distributed in an equitable way between the current Member States;
5. Calls for an agreement on agricultural quotas which takes full account of the specific circumstances that prevailed in some candidate countries during the reference periods, including the repercussions of the Russian economic crisis in 1998 and the following years in the Baltic countries;
6. Continues to attach high priority to combating corruption and to improving the transparency of public spending; reiterates that it expects to receive a report from each candidate country and Europol on corruption and organised crime covering past and current actions and making firm commitments as to how each country plans to fight corruption and organised crime in the future;
7. Takes the view that combating fraud and effectively protecting the Communities’ financial interests must be absolute priorities in the candidate countries, and calls on the Commission to make special efforts to ensure that before accession all the candidate countries have established proper accounting, audit and control systems in line with European Union standards in areas receiving financial assistance from the Community, particularly where there is shared management of Community funds; calls urgently on the candidate countries to set up anti-fraud units to collaborate with the European Anti-Fraud Office (OLAF), and also calls for effective coordination between the national audit bodies of the candidate countries and the European Court of Auditors;
8. Regrets that trafficking in women and children is still a major concern in several candidate countries; therefore urges the current EU Member States to swiftly transpose the framework decision on combating trafficking in human beings adopted by the Council in August this year, and calls on the candidate states to fully implement these measures;
9. Notes that adoption, implementation and transposition of the EC anti-discrimination acquis based on Article 13 of the EC Treaty remains a problem in all candidate countries; urges the candidate countries to solve this problem as soon as possible, by adopting general anti-discrimination legislation transposing the EC acquis;
10. Welcomes the improvement in several applicant countries on the integration of the Roma minorities in the various societies; repeats that more effort has to be made; calls on the Roma minorities to become proactive and fully involved in determining details of the process and to improve their capacities for self-organisation in order to channel their political demands in an efficient manner;
11. Reminds the candidate countries that efforts need to continue in reforming and strengthening their judicial systems; welcomes in this context the Commission's proposal regarding a specific safeguard clause to be applied should serious problems arise in the implementation of judicial cooperation; calls in this context for a framework decision on common standards on procedural law, including criteria for investigation methods and the definition of evidence in order to guarantee the proper functioning of the principle of mutual recognition in the enlarged Union;
12. Reminds the 10 leading candidate countries that reforms in all areas have to be continued well after accession in order to fulfil the commitments entered into in the accession negotiations; therefore urges all actors not to reduce their reform efforts once negotiations are closed; equally asks the Commission and Member States to continue to support the adaptation process with all financial and logistical means available; refers to the continuing importance of Phare, ISPA and SAPARD to achieve this end;
13. Recommends that the promotion of rural development and agri-environment measures under SAPARD be given priority in the last stages of the accession negotiations;
14. Reminds the candidate countries that the administrative and judicial implementation of the acquis remains the biggest problem; supports the Commission in the implementation of its administrative action plan aimed at increasing the administrative and judicial capacity of the candidate countries; urges the Commission, however, to provide for a much stronger local and regional component in order to prepare the subnational level in the candidate countries for the responsibilities of membership; supports regional and local authorities in their efforts to take part by opening up funding possibilities and twinning instruments for municipalities, too;
15. Welcomes the proposals in the most recent Strategy Paper to continue the instruments of twinning after accession and to finance exchanges of civil servants of the new Member States with administrations in the old Member States;
16. Underlines the Commission’s conclusions in the Strategy Paper that the Ten have to make headway in completing their programming documents for regional policy and reminds the Ten that Community financial flows can only take place once all conditions ensuring sound management of the funds are in place;
17. Welcomes the Commission’s determination to monitor progress up until and even after accession in the areas where specific urgent issues still remain to be resolved;
18. Supports the Commission and the Council as well as the candidate countries concerned in their efforts to find a solution to the problem of transit between the Kaliningrad region and the rest of Russia; urges all parties to come to results which enable all candidate countries to become full members of the Schengen system without delay;
19. Stresses the Community position on the importance of a high level of nuclear safety in Central and Eastern Europe in the context of enlargement, most recently emphasised at the Helsinki European Council; supports actions concerning reactors in candidate countries which cannot be upgraded to internationally accepted levels of safety at a reasonable cost and which are guided by the objective of achieving their earliest practicable closure, in line with the Council conclusions of December 1998;
20. Welcomes the Commission’s proposals regarding the special safeguard clauses within the accession treaty; regards such clauses as essential, in view of the specific nature of this enlargement, and calls on the Commission to lay down the arrangements for the application and the scope of these clauses as quickly as possible; expects that such clauses will be worded with the utmost circumspection on the political issues which they might involve, will be used after prior consultation with the country concerned only as an ultima ratio if all other avenues to find solutions for transitional problems have been exhausted, and will be applied following a qualified majority decision in the Council and the assent of the European Parliament;
21. Reiterates its support for the Commission’s proposal to reduce co-financing requirements for new Member States, so as to take account of the very tight constraints under which some of them operate their budgets and ensure that the countries most in need of EU aid via the Structural and Cohesion Funds will not at the same time be the ones with the greatest difficulties in obtaining their full share of this aid;
22. Reiterates its previous positions on the financial impact and budgetary implications of the enlargement of the European Union, especially as put forward in its resolution of 13 June 2002 (report A5-0178/2002); stresses that as a result of the accession of the new Member States, the financial perspective needs to be adjusted to cater for enlargement in agreement between the two arms of the budgetary authority, Parliament and the Council, according to the procedure laid down in paragraph 25 of the Interinstitutional Agreement of 6 May 1999; recalls that at that time, the financial perspective was agreed under the assumption that six new Member States would join the Union in 2002;
23. Considers that no new Member State should become a net contributor to the Community budget during the first few years after accession; notes the Commission proposals on a temporary budgetary compensation;
24. Expects an arrangement which will in any case preclude a country being in a worse financial position after accession than it was immediately prior to accession;
25. Reiterates its support for the objective of gradually phasing in direct payments for farmers in the new Member States; recalls that the estimated agricultural expenditure related to enlargement can be accommodated within the Berlin agreement, consisting of commitments in 2005 of some € 1.1 billion in total direct payments, some € 750 million for market expenditure and some € 1.6 billion for rural development;
26. Supports the initiative undertaken by the Commission to simplify the management of the Structural Funds; considers that in view of the enlargement, the simplification process is crucial in order to improve implementation levels and the absorption capacity of the new Member States, and should be extended to cover implementation of other policy areas as well;
27. Recalls that the need for additional administrative expenditure of the Community institutions must be carefully evaluated and taken into account in the negotiations;
28. Reiterates its position that restructuring and the dismantling of subsidies in the steel industry in the candidate countries are urgently needed, and that the steel industry requires a 'judicious policy' which should comprise short-term subsidy measures to preserve the industry, social measures such as retraining, long-term structural adjustment measures, rationalisation, and specialisation focusing on steel products with a high added value;
29. Stresses that further progress must be made by the candidate countries to protect commercial and intellectual property, particularly with regard to implementing the relevant legislation and controls;
30. Notes that public approval for the enlargement of the EU must not be taken for granted in the applicant countries and the current Member States; calls on the European institutions and the governments of the applicant countries and Member States to increase and improve their efforts to inform their citizens about the accession process in a decentralised and coordinated way, which is free of propaganda;
31. Recommends that, taking the German-Czech Declaration of 1997 as an example, a common 'European Declaration' should be signed by the present and future Member States, containing mutual recognition of and regret for the crimes against humanity, atrocities and injustice committed during and after WWII, as well as the commitment to embrace fully the common values and objectives of European integration as effective means of overcoming past divisions, enmities and prejudices, rooted in nationally determined historical and political interpretations of the past;
Cyprus
32. Notes with satisfaction that the Commission considers that Cyprus, along with nine other candidate countries, will be able to assume the obligations of membership within the envisaged time frame; considers that, in the run-up to accession, Cyprus must continue its preparations in accordance with the commitments entered into during the negotiations;
33. Shares the hope that a reunited Cyprus under single sovereignty, but with guarantees for the regional autonomy and protection of the interests of both communities, will accede to the EU on the basis of a comprehensive settlement to be achieved before the completion of accession negotiations and that the terms of the accession treaty may reflect this settlement;
34. Continues to back the active involvement of the Secretary-General of the United Nations in reaching a political settlement in accordance with the relevant UN Security Council resolutions;
35. Recalls that this political settlement should enable Cyprus to participate in the decision-making process and the policies of the European Union and to ensure the proper application of EU law; underlines that this implies that the Federal Government and Parliament of Cyprus should be fully functioning entities at international level;
36. Stresses the fact that once a settlement is reached the Government must also ensure full respect for human rights and fundamental freedoms in the whole territory of the island;
37. Supports the efforts of the Commission to generate and finance bicommunal projects, and appeals to the northern Cyprus leadership actively to support these efforts and stop any harassment of those who are in favour of a solution and EU membership;
38. Is convinced that in the event of a political solution, a supplementary budgetary effort will be required in order to facilitate the ‘catching-up’ of the north of the island with the acquis communautaire and to contribute to the reconstruction of the ‘buffer zone’ as well as areas in most need;
39. Welcomes the fact that opinion polls indicate increasing support among Turkish Cypriots for accession to the EU; welcomes, too, the European engagement of 90 non-governmental organisations (NGOs) in the north;
40. Urges Turkey, in particular, to lend its full support to efforts to reach a comprehensive settlement this year, in accordance with relevant UN Security Council resolutions;
41. Reiterates its view that, if such a settlement is not achieved within the given time frame, the European Council of Copenhagen should proceed according to the Helsinki conclusions;
Czech Republic
42. Calls on the new Czech Government to continue the fight against corruption in government departments and the judiciary; draws attention in particular to the Commission’s recommendations in its latest Regular Report on the Czech Republic;
43. Welcomes the 'concept' for integration of the Roma submitted by the Czech Government; points out to the Government, however, that the EP has urged the Czech Republic to take further steps to resolve the problems of the Roma minority, especially as regards the abolition of discriminatory practices in state institutions and public authorities (government departments, the police, the courts, and the school system); thus reiterates its request to receive a political commitment from the Czech Republic in this area before the end of the accession negotiations which clarifies how the Czech Republic plans to resolve the problems of the Roma before the end of this decade;
44. Looks to the Czech Government in particular to continue to increase administrative capacity where agriculture is concerned, to enable funds for the sector to be disbursed efficiently and swiftly after accession;
45. Looks to the Czech Government likewise to strengthen further the capacity to administer and above all enforce environmental policy;
46. Calls on the Commission, with reference to the Melk Process conclusions of 29 November 2001 and in particular Annex I thereto, to present to the European Parliament, prior to the conclusion of the access negotiations, the conclusions of the review carried out by the Council's Working Party on Nuclear Safety (AQG/WPNS) concerning the implementation of its requirements by the Czech Republic, together with the Commission's own assessment of the Czech Republic's activities with regard to implementing the measures called for;
47. Expects full compliance with the bilateral undertakings, mediated by the Commission, which have been entered into regarding the Temelin nuclear power station;
48. Calls on the Czech Republic to enable its regional bodies to exploit ERDF and Cohesion Fund resources to the full immediately after accession by devising and implementing high-quality environmentally sustainable projects; points out to the Czech Government that this is the best way to turn theoretical net recipient status into a real status;
49. Refers to the report commissioned by the EP and supports its common conclusions, namely that the presidential decrees do not pose an obstacle to Czech accession to the EU, meaning that all Union citizens will enjoy the same rights on Czech territory after accession and that judgments handed down in absentia have been quashed; regards the statements of principle made in the German/Czech Declaration of 21 January 1997 as a sound basis for reconciliation, which represents the moral foundation for European integration; considers a political gesture by the Czechs to this effect as desirable;
50. Calls once again, with reference to its resolution on the Treaty of Nice and the future of the European Union, to amend the number of Members who will represent the Czech Republic in the European Parliament to 22, which would not damage the institutional balance achieved in Nice;
Estonia
51. Welcomes the fact that specificities in Estonia’s policy as regards ethnic minorities, which to a large extent were motivated by the Estonian nation’s difficult historical experiences, have gradually been replaced with provisions and practices which are fully in line with international standards; points to the fact that this has not in any way destabilised Estonian society, but has been paralleled by consolidation of the Estonian State up to a point where the permanence of its main features has become a matter of course for all residents of the country;
52. Considers that the level of confidence achieved should permit Estonia to take a few additional steps on the path towards a fully inclusive society, notably to encourage non-citizens to apply for citizenship, implement the language law in a liberal way which ensures respect for the principles of justified public interest and proportionality and provide for broad involvement of ethnic minority groups in the formulation of the integration policy, which should continue after the expiry of the current State programme ‘Integration in Estonian Society 2000-2007’; welcomes the fact that a pragmatic approach to the switch to use of Estonian as the language of tuition in all secondary level schools has been opted for;
53. Congratulates Estonia on the success of its strongly market-oriented economic and commercial policies; notes that Estonian farmers have received virtually no subsidies and have been exposed to competition from imports from the EU sold at artificially low prices made possible only by the EU’s export subsidies; notes, also, that a slump in demand in the important Russian export market caused a contraction of Estonian agricultural production in the years later chosen as reference years for the setting of production quotas in the framework of the CAP; considers that the EU must take full account of the above in the negotiations and agree to quotas at an appropriate level for Estonian farmers;
54. Is encouraged by the continuing strong performance of the Estonian economy; notes with satisfaction that this is creating room for additional efforts by the Government in the social field; draws attention to the problems in the north-eastern part of the country and invites Estonia to facilitate a smooth launch of assistance from the EU’s Structural Funds upon accession, in particular by preparing good projects and ensure that necessary co-funding will be available;
55. Hopes that in spite of the many problems that have occurred in connection with the privatisation of the Estonian railways, the final result will be an increasing supply of attractive rail transport services and that Estonia will fully harness the potential for receiving substantial EU funding in this area through the ISPA programme and, after accession, from the Cohesion Fund;
56. Notes the specific problems which the oil-bearing shale industry presents for Estonia; calls on the Estonian Government to implement rapidly the 2001-2006 restructuring plan for the shale oil sector, to make an effort to achieve a balanced transition, after the end of the transitional arrangements, towards a liberalised electricity market, and also to take account of the difficult socio-economic situation in the affected Ida-Virumaa region in the north-east, for example by means of wide-ranging further education programmes, particularly for the Russian-speaking minority which is strongly represented there;
57. Points out to the Commission that this region will continue to require special aid after accession, which will have to take account of the structural changes in this region and of the more environmentally sound extraction and processing of oil-bearing shale over and above current aid measures in the field of cohesion and the structural funds;
58. Invites Estonia to step up its preparations for EU membership, where necessary in accordance with the Commission’s last Regular Report, including by concluding the transposition of the acquis; notes the Riigikogu’s awareness that the adoption of the acquis has recently been slower than expected in some areas, such as social policy, customs administration and fisheries policy, and invites the Government to accelerate its preparation of bills;
Hungary
59. Points to the new Government’s undertaking to follow the same course as its predecessor and continue to make effective preparations for Hungary’s accession to the Union; stresses that Hungary has been paying particular heed to the European Parliament’s recommendations in a wide range of areas, thus assisting the progress of the negotiations;
60. Applauds Hungary’s continuing favourable economic development, as reflected in one of the highest growth rates in Europe (2.9%), the lowest inflation rate in the last ten years (5.6%), a relatively low unemployment rate (5.7%), and a constant expansion in trade with the Union; expresses alarm, however, at the size of the government deficit (5.5%) and urges the Hungarian authorities to tackle the problem so as to enable Hungary to be competitive on the internal market and join EMU;
61. Points out, as regards the law on the status of Hungarian minorities in neighbouring countries (‘Status Law’), that negotiations need to continue with those countries, especially Slovakia and Romania, with the twofold aim of establishing good-neighbourly relations, which are crucial for the stability of the region, and achieving a satisfactory solution regarding the above law by bringing it into line with the acquis communautaire no later than at the time of accession;
62. Welcomes the greater attention being paid to the situation of the Roma minority, as can be seen, for example, in the increased number of qualified workers from the Roma community in senior administrative positions and in the newly created office of State Secretary for Roma Affairs; urges, however, that, following the approach already proposed by the European Parliament, encouragement be provided under social and development policies in general to enable the Roma to become increasingly more involved in planning, implementing, and assessing projects and specific measures to foster their integration;
63. Notes that the law on the media has been adopted, thus enabling the ‘Audio-visual policy’ chapter to be closed; points, however, to the continuing need to promote media pluralism and freedom so as to help democratic institutions to operate properly and civil society to develop in a balanced way; calls on the Hungarian Government, therefore, to intensify the efforts to fully harmonise Hungarian legislation with the acquis communautaire;
64. Hopes that an early agreement will be secured regarding the key ‘Competition’ chapter; believes that the Hungarian authorities must seek primarily to bring state aid schemes, not least tax advantages, into line; looks to both the Commission and the Hungarian authorities to take an open-minded, flexible attitude so as to enable the necessary negotiations to be concluded in time, not just on the above chapter, but also on the other chapters still outstanding;
65. Points to the particular importance of efficient institutional machinery for Structural and Cohesion Fund programming and implementation and urges the Government to improve as quickly as possible not just the capacity of payment authorities, but also the technical groundwork for projects that might be eligible for Community funding; urges the Hungarian authorities in addition to lend their resolute support to enable SMEs to be set up and develop in less favoured regions, not least by offering the incentives required to create a favourable environment for investment and the emergence of a strong entrepreneurial class; draws attention in this connection to the importance of cross-border cooperation in promoting economic and social cohesion in Hungary;
66. Notes the improvements in the legal framework intended to fight organised and economic crime and the progress in combating money laundering; hopes that these and other practical measures will be rapidly implemented so as to ensure that the worrying phenomenon of corruption does not sully Hungary’s successful political and economic transition; considers it essential for public spending to be implemented transparently and properly supervised; accordingly applauds the Government’s proposed measures to reduce the extent of business secrecy and make institutions financed by the state budget subject to mandatory auditing;
67. Repeats its call for Hungary’s legitimate demands to be satisfied and the number of Hungarian Members of the European Parliament adjusted once Hungary has joined the Union in order to bring its representation into line with that of current and future Member States with a population of similar size;
68. Concludes that Hungary is well placed to join the Union in 2004 but must continue its preparations in accordance with the commitments entered into during the negotiations; expresses its satisfaction at the fact that most Hungarians support their country’s accession to the Union and calls on Hungarian citizens to take an active part in the referendum to be held in spring 2003;
Latvia
69. Notes that recent public awareness campaigns and improved access to language training for applicants for Latvian citizenship have triggered an increase in the naturalisation rate; considers that increased funding for the continuation of these actions should be made available to the Naturalisation Board and the Society Integration Foundation; points out that stronger top-level political support and a higher budget allocation for the Foundation would allow it to enhance its role, i.a. by offering additional free language courses in line with growing needs;
70. Is concerned about the implementation of the planned switch, as of 2004, of all State-funded secondary schools to the Latvian State language as the only language of instruction; stresses that the switch from Russian and other minority languages to Latvian should not compromise the quality of education; therefore calls for flexible implementation as regards the timing and possibilities for provisional arrangements, with a view to ensuring that the principle of equal education opportunities is upheld;
71. Encourages Latvia to implement other legal provisions on the use of languages in a way which does not restrict current actual possibilities to use a minority language, e.g. in dealings with authorities;
72. Calls on Latvia to accelerate the reform of the judiciary and support it with additional funds; recognises the efforts to simplify and modernise criminal procedure, and to improve detention conditions through amendments to existing legislation and infrastructure investments, but regrets that delays in the adoption of decisive legislative measures, in particular the new Criminal Procedure Code, are complicating efforts to accelerate court proceedings, reduce the backlog of court cases and cut the length of pre-trial detention; stresses the importance of safeguarding the independence of the judiciary and the need to reach results in the fight against corruption; expects the incoming Government to make this a priority and to take effective initiatives; underlines, also, the importance of timely introduction of the unified pay system for the civil service;
73. Is pleased to note that the economic growth rate remains high, although in 2002 it will not reach the spectacular level recorded in 2001; notes that forecasts are also positive; regrets, however, that despite that, unemployment has not fallen significantly;
74. Draws attention to the inevitable costs associated with the necessary modernisation of the public administration; notes that planned further tax cuts, which a recent IMF staff report considers could be postponed, would complicate the mobilisation of appropriate funds; suggests that higher priority be given to the public administration reform in the budgetary context;
75. Invites Latvia to step up its preparations for EU membership, where necessary in accordance with the Commission’s last Regular Report;
76. Welcomes the progress made in the implementation of the environmental acquis, but calls for a strengthening of monitoring and enforcement of EU environmental legislation, and emphasises the need to strengthen the new Latvian water law in order to bring it into line with the Water Framework Directive;
77. Looks forward to Latvia’s presentation of a draft single programming document by the end of 2002, as an important step in the preparations for the reception of aid from the Structural Funds; expresses the hope that effective consultation procedures will be further developed and followed, so that full respect for the EU’s partnership principles and acquis can be ensured and programming capacities improved;
Lithuania
78. Recalls that the main challenges for Lithuania to tackle in relation to the political criteria are linked to the judicial and penitentiary systems and to the continued fight against corruption; recognises that a sound basis for well-functioning, truly independent and professional courts has now been laid down; notes, however, that shorter pre-trial detention periods and improved prison conditions should be achieved; believes that there is scope for further improvement both in the quality of court proceedings and in the enforcement of judicial decisions;
79. Notes with satisfaction that the economic growth rate remains high and that the Lithuanian economy is now very widely perceived as fundamentally healthy, reasonably capable of withstanding external shocks and set to continue on a rapid growth track;
80. Expresses the hope that the recent slight decline in the worryingly high unemployment rate marks a turning point; stresses, again, the importance of active education and labour market policies; notes the efforts to further improve the business climate, which, if successful, will help to increase the demand for labour; hopes that continued productivity increases and receding unemployment in the future will pave the way for balanced and healthy pay rises, which at present are difficult to achieve;
81. Invites Lithuania to step up its preparations for EU membership, where necessary in accordance with the Commission’s last Regular Report; in this regard, draws attention to the administrative structures necessary for integration into the common agricultural policy, the programming and preparation of projects required to make possible the launch of aid from the EU’s Structural Funds and the need to ensure that the EU acquis in the environmental and other areas is correctly implemented;
82. Draws attention to Lithuania’s constructive role in relation to the Kaliningrad issue, both as regards initiatives aimed at stimulating the region’s economic and social development and in the search for a viable visa and transit system; notes that in the negotiations, the EU has requested Lithuania to ensure compliance with the relevant acquis and that Lithuania is therefore currently preparing for the introduction of a visa requirement; considers Lithuanian consent to be essential if any adjustment to the acquis is to be made with regard to transit; opposes every proposal which does not fully respect Lithuania’s sovereignty; the interests of of the inhabitants of Kaliningrad must also be given appropriate consideration;
83. Welcomes the formal commitment to close the second and last reactor at the Ignalina nuclear power plant by 2009 (noting that the first unit will be closed in 2005), which Lithuania entered into in connection with the provisional closure of the energy chapter;
84. Recognises that the decommissioning, the profound changes to the country’s energy supply system which must be made and the provision of support and new opportunities for those directly or indirectly dependent on the plant for their income will constitute a heavy burden; reiterates its support for the Commission proposal on specific aid for the decommissioning and directly related projects and underlines that this aid will have to continue after the expiry of the present financial perspective in 2006;
Malta
85. Welcomes the progress made by Malta in the previous months and urges that it provisionally close Taxation, Customs and the non-financial aspects of Agriculture in the coming weeks;
86. Recommends that Malta’s requests for a transitional period for VAT exemptions on food and pharmaceuticals, as granted to some existing Member States, should be considered; asks Malta to expedite the building-up of administrative capacity in the tax administration, particularly in the area of excise duties;
87. Stresses the need to reinforce and increase the Maltese environment and planning authority staff in order to implement appropriate permit and inspection mechanisms;
88. Recommends that the agreements to be reached under the Agriculture chapter should be such as to ensure the continuing vitality and viability of Maltese agriculture with the instruments available under the CAP; calls for the upgrade of Maltese administrative capacity for the implementation of rural and development schemes, through the appropriate EU instruments; encourages Malta, in line with the concerns expressed by the Commission, to substantially expedite progress in setting up the physical and legal structures for the proper handling of the CAP in Malta after accession, in particular as regards common market organisations and phytosanitary legislation;
89. Takes note of the fact that there have been positive developments in the fight against corruption in Malta, but no improvements have been noted in the efforts of the Public Commission against corruption;
90. Recommends that an appropriate financial package should be agreed upon to ensure that Malta will have a net beneficiary status during the first years of membership;
91. Repeats its regret that the Maltese Labour Party does not support Malta’s accession process and hopes that the result of a referendum concerning EU accession will be accepted as a democratic decision of the population;
92. Hopes that all political forces in Malta will contribute to the successful accession of the country to the European Union;
93. Reiterates its recommendation that Malta, in accordance with its size, should be granted six seats in the European Parliament;
Poland
94. Points to the considerable effort by Polish society and its social and economic protagonists, backed up by the unbroken commitment of successive governments, to implement the reforms required to prepare Poland for accession to the Union and recognises that this process, which must continue to take its course, has led to numerous successes (Poland has increased its wealth by 40% since 1992, become the Union’s fourth largest trading partner, and, out of all the candidate countries, attracted the highest volume of foreign investment);
95. Encourages the Polish authorities, observing the time frame laid down by the Commission, to redouble their efforts to remedy the shortcomings and weaknesses identified in the latest Regular Report, which highlights the discrepancy between adoption of the acquis and the capacity to enforce it, especially as regards the agricultural sector, the veterinary and human medicines sector, food safety and customs; calls for arrangements to be laid down to enable the management of public money to be subjected to genuinely thorough scrutiny;
96. Trusts that the continued implementation of the action plan will enable it to achieve its aims of enhancing administrative and judicial capacity and calls for Commission assistance to be targeted on areas that are affected by the lengthiest delays and could interfere with the operation of the internal market of the enlarged Union;
97. Notes the change in the Polish negotiating stance regarding the Agriculture chapter; supports the efforts of the Polish authorities to find a solution that would not only enable Polish farmers to compete on the Union market after accession but would also provide them with the necessary modernisation of the agricultural sector; appeals to the Member States to adopt a realistic, generous, forward-looking approach, without neglecting the specific concerns of the Polish and European farming worlds and which, while taking account of market considerations, also offers small farms a chance of survival; urges the promotion of agri-environment schemes under SAPARD in order to gain experience of rural development funds in advance of accession;
98. Points out that Poland has helped to bring the European security and justice area into being and, in addition, strengthened its measures to combat organised crime and improved border management and checks; considers that, as well as the increased effort that it will be called upon to make to secure the future external borders of the enlarged Union, in order to meet the requirements of the Schengen Agreement, Poland should likewise seek to preserve its good-neighbourly relations and cultural and economic ties with its eastern neighbours; in this connection welcomes the initiatives being taken by President Kwaœniewski and the Polish Government;
99. Welcomes the progress in adopting the environmental acquis, a matter which, given the scale of the problems, poses a challenge to local and regional authorities and demands a substantial volume of investment; points to the need to make the rural world more conscious of environmental protection and to take the subject into account when drawing up and implementing other specific policies at all levels;
100. Draws attention to the need to foster openness in order to focus more accurately on the phenomenon of corruption and expects that the new government anti-corruption programme, adopted last September, will produce practical results as soon as possible;
101. Applauds the considerable legislative work that the Polish Parliament has completed over the past few years, which has enabled virtually the whole of the acquis communautaire to be adopted; expresses disquiet at the isolated examples of attitudes and behaviour contrary to the principles of parliamentary culture, which could undermine the prestige of the Polish Parliament, an institution with a central role in the practice of democracy;
102. Notes with satisfaction that the Polish authorities have heeded the anxieties expressed in the European Parliament about the new media law, the independence of the central bank, and civil service recruitment procedures; notes that there has been some progress in the first two of these three areas and hopes that it will be consolidated so that Poland fully satisfies the criteria prevailing in Member States;
Slovakia
103. Welcomes the fact that Slovakia has been able to catch up with the front runners in the negotiations after the elections of 1998 and requests the Government to speed up its struggle against corruption;
104. Calls on the Slovak Government to further strengthen the implementation of the policy against corruption at all levels, in particular in the judiciary and other enforcement bodies; reaffirms that the reform of the judiciary needs to be continued, inter alia, through a reform of the criminal and civil legal procedures and increased training in order to achieve the highest standards of independence and professionalism; asks the Commission to consider increasing the supply of modern equipment through Phare to courts and public prosecutors' offices to increase their efficiency and thus to speed up proceedings;
105. Reminds the Slovak Government of the EP’s request to continue to undertake decisive action to overcome the problems of the Roma minorities, in particular with regard to the elimination of possible discriminatory practices of state institutions and public authorities (public administration, police forces, judiciary, schools); welcomes the extensive information regarding Slovakia’s policy towards the Roma; nevertheless reminds the Slovak Government that there remains a certain gap between policy formulation and implementation on the ground; thus reiterates its request to receive a political commitment from Slovakia in this area before the end of the accession negotiations which clarifies how Slovakia plans to resolve the problems of the Roma before the end of this decade; in this context recommends that Slovakia should adopt general anti-discrimination legislation transposing the EC anti-discrimination acquis;
106. Notes that in many areas national minorities do not make use of the rights under the Law on the Use of Minority Languages due to a lack of information; calls on the Slovak Government to undertake action to overcome this problem;
107. Calls on Slovakia to intensify its efforts to create administrative structures and actual capacities for preparing and implementing the Structural and Cohesion Funds so that the absorption capacity for project-based funds can be tangibly improved; reminds Slovakia that this improvement is the best avenue for achieving a reasonable net beneficiary position; calls on the Slovak authorities and the Commission to ensure that all EU-funded infrastructure is compatible with the environmental acquis; in this regard expresses concern at the development of the Danube-Oder-Elbe Canal;
108. Asks Slovakia to pay particular attention to the implementation capacities in the area of agriculture amongst others to expedite the introduction of the computer-based system IACS (Integrated Administration and Control System) needed for the calculation of agricultural data in order to administer the large agricultural funds in accordance with the acquis;
109. Asks the Slovak Government to pay particular attention to increasing the administrative capacity in the area of the environment, in particular to transpose and enforce the legislation in the area of Integrated Pollution Prevention and Control;
110. Looks to Slovakia to fulfil its undertaking, set out in the last progress report, to close blocks 1 and 2 of the power station at Bohunice;
Slovenia
111. Takes note of the agreement between the Government of Slovenia and the Parliament of the Republic of Slovenia (both government coalition and opposition), affirming that the accession of the country to the EU is its first priority;
112. Welcomes the economic progress made during the period of preparation of accession to the EU, while asking the authorities to continue the restructuring of the economy and to finalise the liquidation of the Slovenia Development Corporation; calls on the Slovene authorities to further improve the application of the adopted bankruptcy legislation; takes note that a number of additional specialists were hired to reduce the number of unresolved cases of compulsory settlements in district courts, bankruptcies, commercial disputes, and commercial payment orders; takes note of the fact that after significant reforms in the banking sector 76% of assets are now privately owned and encourages the authorities to pursue this process further as planned;
113. Invites Slovenia to continue the reform of the judiciary in order to decrease the number of pending cases in the courts;
114. Notes the generally good level of protection of the rights of minorities and ethnical groups in Slovenia; emphasises the importance of higher protection of the Roma community amongst other things by adopting comprehensive anti-discrimination legislation;
115. Asks Slovenia to adopt the Act amending the Consumer Protection Act according to the envisaged timetable and encourages Slovenia to ensure that the administrative structures in place fulfil their tasks effectively in terms of market surveillance;
116. Invites the Slovene Government to take care that the inspection capacities, especially for veterinary and phytosanitary issues, are ready at the time of accession in order to protect all EU consumers from problems in food production;
117. Calls on Slovenia to pay particular attention to the transposition and implementation of legislation in the area of Integrated Pollution Prevention and Control (IPPC directive); asks the Government to coordinate actions with stakeholders such as industry and local authorities in order to help them prepare for the timely implementation of the IPPC directive;
118. Takes note of the solution found in the area of regional policy until 2006; invites Slovenia to strengthen the regional structures in order to encourage adequately Slovenia's balanced development;
119. Regrets the fact that no significant progress has been made in combating fraud and corruption and in combating drug trafficking, or in judicial cooperation in criminal and civil matters, since the last regular report, and therefore calls on the Slovenian government to remedy these shortcomings;
120. Invites the Government of the Republic of Slovenia to continue its efforts to speed up and complete the process of denationalisation as soon as possible;
Countries aiming at accession after 2004
121. Welcomes the prospect of increasing the pre-accession aid for the candidate countries not able to join the EU in the first wave;
122. Welcomes the Commission proposal to increase the financial assistance to Bulgaria and Romania from 2004 onwards, taking into account the progress in implementing the road maps and their absorption capacity;
123. Notes the intention of the Commission to propose an increase in assistance to Turkey in the period from 2004 to 2006; is prepared to include this proposal as an integral part of the 2004 budget negotiations on Heading 4;
Bulgaria
124. Recognises that Bulgaria continues to fulfil the Copenhagen political criteria and has made progress in many areas where concerns had been raised in previous reports; notes the recent strategy for reform of the State Administration, and welcomes the major amendments to the Judicial Law System as well as the adoption of an action plan to implement the National Anti-Corruption Strategy; urges early adoption of secondary legislation to supplement the Child Protection Law; notes, too, Bulgaria’s progress in most areas of the acquis; emphasises, however, that much remains to be done, particularly as far as implementation is concerned and in fully reforming the judicial and administrative systems, where fundamental weaknesses are slowing down progress in many areas, with corruption still a serious problem affecting both the public and the privatised sectors;
125. Welcomes the Commission’s positive assessment of Bulgaria’s economic progress, in particular that Bulgaria now has a functioning market economy; commends Bulgaria for having maintained macro-economic stability, contained inflation, decreased government debt, sustained a growth rate of 4% p.a. despite a difficult external economic climate, and for having made progress with structural reforms and privatisation over the past year; stresses that greater progress must be made on issues such as market flexibility, and deficiencies in the land market and administrative procedures, and reduction of the high external debt and the aggravating trade deficit, as well as continuing the high budget discipline, financial management and administrative transparency; reiterates, furthermore, the urgent need for Bulgaria’s macro-economic progress to be translated into tangible economic benefits for all, with concrete actions to tackle the statistically high level of unemployment and poverty and to improve the efficiency of health care and education; is disturbed to learn that the official estimate of the grey economy comprises some 25% of the labour market, thus affecting tax revenues;
126. Notes that the recent amendments to the Energy Law display intent to introduce real market liberalisation, that a gas market liberalisation strategy has been adopted and that electricity prices have been revised; stresses that rigorous implementation of such measures is required and that the continuing inefficiency of energy use needs to be urgently addressed; recognises that the June 2002 IAEA mission to Kozloduy concluded that units 3 and 4 now comply with all international standards and safe operation requirements for such nuclear power plants, while the EU remains concerned about design deficiencies of the two reactors; looks forward, therefore, to the expected peer review by the EU Council’s Working Group on Nuclear Issues, and calls for a comprehensive and objective study of the economic consequences of the closure of units 3 and 4 to be undertaken at the earliest available opportunity, in order to reach a speedy and satisfactory solution to the closure question at the earliest possible date; requests that the Commission provide details of the decommissioning fund that it is establishing with the European Bank for Reconstruction and Development (EBRD);
127. Commends Bulgaria’s efforts to improve the coordination of EU pre-accession funds for its agricultural industry, while noting that improvements in capacity to absorb such monies, and in the design of programmes through which funding is distributed, are still required; recognises the progress that has been made in the preparation of rural development programmes but stresses that concrete measures must be taken to restructure the labour-intensive industry; calls for the implementation of veterinary and phytosanitary legislation;
128. Welcomes recent amendments to the Penal Code which remove certain discriminatory provisions, but continues to be concerned about conditions in homes for children, the elderly and the mentally handicapped, where appalling conditions have been documented; about the treatment of the Roma for whom the Framework Programme remains just that – and where tokenism continues to be the norm; is distressed by reports of child-trafficking that are emerging from Bulgaria and demands that this scourge be addressed; and insists that the Bulgarian authorities and the European Commission target resources and support initiatives to overcome these concerns as a matter of urgency, with particular attention to significant improvement in childcare institutions;
129. Commends Bulgaria for the role that it has been playing in the fight against terrorism, for example through its contribution to the ISAF mission in Afghanistan and its offer to take part in other military actions; commends Bulgaria as a factor in regional stability, notably through its continuing contribution to Kfor and Sfor; endorses Bulgaria’s participation in NATO’s Membership Action Plan; recalls Bulgaria’s recent successful chairing of the UN Security Council and notes that Bulgaria will chair the OSCE in 2004; notes the steps that Bulgaria has taken to improve border security and the customs regime, but emphasises that more needs to be done to tackle corruption at border posts and to combat trafficking in people;
130. Welcomes the strong support promised by the Commission to assist Bulgaria in achieving its ambition to join the EU as soon as possible, insists that the principles of differentiation and own merits be applied, and trusts that the road map to be considered by the European Council in Copenhagen will include clearly defined milestones, and an enhanced pre-accession strategy for Bulgaria that will facilitate early completion of negotiations;
Romania
131. Welcomes the Commission’s Strategy Paper and Report on Romania’s progress towards accession and the fresh guidelines contained therein; shares the Commission’s perception of Romania’s clear and ascertainable progress in recent months; strongly reiterates Romania’s assured place in the current enlargement round; endorses the absolute necessity of implementing the acquis already agreed and supports Romania’s efforts to ensure the sustainability of her progress;
132. Welcomes the Commission's assessment of Romania's economic progress towards a functioning market economy, as well as Romania's macroeconomic stability, continuous reduction of the inflation rate and steady economic growth of around 5% in the last two years;
133. Welcomes Romania’s target date of 1 January 2007 for her accession to the European Union; hopes that Romania will carry out the necessary reforms as quickly as possible with a view to bringing political, economic and social standards within EU norms; notes in this context the scale of work required to bring about major economic sectoral changes; to restrain state intervention and to diminish the black economy and organised crime; and to intensify the strong fight against corruption; welcomes the Romanian Government’s success in maintaining macroeconomic stability and in creating and following the appropriate financial discipline, which enabled the recent conclusion of the agreement on the second instalment of the IMF economic stabilisation loan;
134. Welcomes, too, her increasing and visible regional cooperation with neighbouring countries and in particular her recent agreement with Croatia and the Federal Republic of Yugoslavia of a new oil pipeline linking Constanta to Omisat (Croatia), which should give a major and welcome boost in terms of job creation and the national economy; believes that accelerating privatisation and increased transparency are of the utmost importance, particularly in the sectors of agriculture, energy, transport and communication, as further measures towards freeing up the business sector and reducing state control;
135. Welcomes Romania’s efforts to combat social exclusion and poverty; notes, however, the continuing need for fundamental improvement in the provision of basic amenities such as public health, including clean water and waste water disposal, accessible family planning and other measures; notes the continued low-level administrative corruption which further degrades the quality of life of those already living well below the poverty line;
136. Remains concerned at the exploitation of vulnerable population sectors through weak regulatory structures compounded by lax judicial and police implementation of basic justice; stresses also the absolute necessity of setting and maintaining national professional standards and ethics and the consequential observation thereof by those international bodies or NGOs operating in Romania;
137. Calls on the Government to examine the growing powers of the Public Prosecutor, to focus on major improvements in standards of the police and the judiciary, and to diminish the outreach of the numerous security services; to sustain its general improvement of public administrative capacity, to continue with the depoliticisation of the civil service, and to continue strenuous efforts to meet the standards of the European Convention on Human Rights and the EU Charter of Fundamental Rights in legislation and in administrative capacity; recalls, with regard to the police and the judiciary, that the Copenhagen political criteria for accession require an upholding of the rule of law;
138. Warmly commends the progress of the Government and the National Agency for Child Protection for their fine work in partnership with the Commission on child health and development; notes with approval that strategies newly adopted already offer replicable models for other countries; anticipates further positive outcomes as implementation of sound policies proceeds; urges the authorities to continue capacity-building at all levels of the administration; notes that an initial drafting of modern child welfare legislation is in hand; notes that the European Convention on Human Rights provides the proper framework and urges the Romanian Government to take the Court’s judicial decisions fully into account with regard to the scale of the reforms needed and the support required for this, including the immediate resolution of the up to 80 outstanding Spanish cases; confirms Parliament’s full support for strongest measures against the rising tide of trafficking; insists that the Government take judicial measures, as urged in Parliament’s previous resolutions; welcomes the Government’s good work on Roma inclusion and anticipates clear national policies for the disabled;
139. Welcomes recent amendments to the Penal Code which remove certain provisions which discriminated on the basis of sexual orientation;
140. Notes and applauds the exceptional levels of literacy throughout the population and the Government’s continuing commitment to further education; is of the view that swifter movement towards a market economy remains the only realistic way of bringing young people into the job market, since otherwise the high youth unemployment level deprives Romania of her key resource through continuing emigration of talented and well- qualified young people;
141. Calls on the Romanian Parliament to strengthen democratic freedoms though appropriate laws and through repealing old legislation faster; is concerned by the recent law requiring 50 000 members before a political party can be registered and by the uncertain status of the media’s freedom and responsibilities;
142. Requests, therefore, that the Commission’s anticipated road map proposals, which will establish a new and comprehensive multiannual strategic plan for EU pre-accession aid for Romania, give high priority to those economic and social sectors where accelerator and multiplier effects can be ascertained, such as public health and the provision of local public services;
143. Invites the European Council to clarify at the European Summit in Copenhagen that the supplementary financial support to Romania should depend not only on her achievements in terms of implementation of the road map, but also on the progress made in terms of absorption capacity and on the sustainability of reliable accounting, auditing and financial control systems for public funds, these being the methods required to lift Romania into a market economy fully capable of coping with fair competition from the European Union;
144. Points to the important role that the European Parliament can play in strengthening the accession process through broadening the scope of mutual political cooperation by forging clear links between the principal legislative committees of the two parliaments; recommends that these ties be forged without delay;
145. Welcomes the political, economic and military efforts of Romania to be involved in the development of the European Security and Defence Policy (ESDP) as a part of the Common Foreign and Security Policy (CFSP) and to take an active part in the political dialogue and political consultations to this end which are taking place in the context of the EU+15; Romania has also shown constant and satisfactory progress in adjusting to the CFSP acquis, has made an active contribution in terms of defence policy cooperation (including in the peacekeeping operations in Afghanistan, Bosnia and Kosovo) and has taken an important leading role in efforts to strengthen regional stability and security in South-East Europe; notes that this work will assist Romania’s accession negotiations;
Turkey
146. Is fully aware of the main priorities indicated by the Commission and the Accession Partnership such as human rights, freedom of religion, the Cyprus issue, the protection of ethnic and religious minorities and the resolution of outstanding border disputes; appreciates at the same time the steps taken by Turkey towards addressing these issues on its way to negotiations and calls for further efforts for the effective application in practice of the reforms recently adopted, suggests, therefore, that a revised support strategy for Turkey could be considered; urges that if pre-accession aid to Turkey is to be increased, this should be invested in priority objectives in the framework of the political criteria of Copenhagen, as indicated by the Commission, in order to speed up the development of Turkey towards a democracy according to EU standards; calls upon Turkey to support effectively the ongoing talks for an early settlement of the Cyprus issue in accordance with the relevant UN Security Council resolutions; confirms that the Commission is in this way applying the rule of equal treatment of candidate countries;
147. Calls on the Commission to submit proposals for enhanced cooperation with Turkey, including in matters of energy policy, regional environmental protection and combating cross-border crime, in order to build up an enhanced relationship of confidence between the citizens of the EU and Turkey;
148. Hopes for the formation of a stable, pro-reform, pro-Europe Government after the elections; commits itself to an enhanced political dialogue with the Grand National Assembly; urges the European Council to adopt a more coherent stance on the question of Turkey's candidacy and to commit itself in good faith to developing the accession process;
149. Is concerned about the limited progress which has been made in transposing the EC acquis in the area of gender equality; acknowledges, however, the fact that the new Civil Code represents an important landmark in establishing women's rights in Turkey but stresses that effective enforcement of its provisions is now needed;
Other countries which are potential candidates for membership
150. Notes that other countries will wish to become candidate countries for EU membership; considers that new elements for cross-border and inter-regional cooperation, including developing new forms of collaboration and partnership with the neighbouring countries of the Union, will need to be introduced; requests the Commission to put forward a detailed report to the Council and Parliament as to how this strategy would be formulated by 30 September 2003, taking account of the need to adjust the ceiling in heading 4 of the financial perspective;
151. Instructs its President to forward this resolution to the Council and Commission, the parliaments of the Member States and the parliaments and governments of the candidate countries.
- [1] OJ C ....
EXPLANATORY STATEMENT
Cyprus
In its Regular Report of 9 October 2002 the Commission notes that Cyprus fully satisfies the political criteria for accession to the EU and has moved into line with the acquis communautaire to an extent enabling it to meet the obligations of membership within the appointed time frame.
The Commission is hoping that a reunified Cyprus will be able to join the EU and calling on both parties to redouble their efforts to achieve a political settlement before the accession negotiations are completed. If no such settlement has been reached, the Copenhagen European Council will take its decisions on the basis of the Helsinki conclusions, which stipulate that a political accord is not a prerequisite for accession.
In his statement of 4 October 2002 the UN Secretary-General noted that Mr Clerides and Mr Denktaº had been making an encouraging effort to narrow the differences and called on the two leaders to continue their direct talks. There is an opportunity to end 30 years of conflict and it should be seized.
Unfortunately, the statements issued by the Turkish Government and the Turkish Cypriot authorities after the Commission sent its report to Parliament are at odds with this optimistic picture.
The Turkish Foreign Ministry has merely repeated the assertion that Cypriot accession to the EU would be ‘illegal’ and contrary to the 1959/1960 agreements – the very agreements which guarantee Cyprus’s independence, sovereignty, and territorial integrity! It maintains that the political and strategic balance in the eastern Mediterranean would be upset and the negotiating process placed in jeopardy.
In an almost identically worded statement issued on 10 October 2002 – which does not even mention the direct talks under way or the role of the United Nations – the Northern Cyprus authorities threatened that if the ‘Greek Cypriot administration’ (sic) were to accede, the island would remain divided for good and the eastern Mediterranean would be beset by permanent instability.
These recent statements before the Commission published its report, which bear out numerous utterances and threats of a ‘crisis foretold’, show that the Turkish position has not changed and has even hardened in the run-up to the Copenhagen European Council.
However, in the light of the views recently expressed by the UN Secretary-General, your rapporteur sees some reason to hope that in the final weeks before the summit, the political problem of Cyprus can be resolved in a manner acceptable to both the United Nations and the EU.
Bearing that prospect in mind, he has drafted the motion for a resolution to be put to the vote at the November part-session.
Czech Republic
The Czech Republic is about to join the EU and hence enter a prosperous phase in its eventful history.
During the 1990s the Czech Republic successfully made the transition from a centrally managed socialist state to a democratic nation observing market principles.
Political stability has for years been established beyond question; judicial and administrative reforms are proceeding apace. The Czech state is constantly seeking to consolidate democracy and the rule of law. The extent of corruption and economic crime, on the other hand, gives cause for concern. The integration of the Roma population is also a process in which – as in other countries – there is still much work to do.
The Czech Republic is one of the most advanced countries as regards the adoption and enforcement of EU law and has also been making headway in developing administrative capacities. Transposition of the acquis communautaire is thus being resolutely pursued.
The Czech economy is in good shape and in the foreseeable future ought to be able to withstand competitive pressure and market forces in the Union. Its performance, as measured by several key macroeconomic indicators, is already quite close to the EU average. Unemployment last year stood at 8.8% (compared with an EU average of 8.2%). As far as inflation is concerned, the Czech rate in 2001 corresponded to the average for the candidate countries.
Regarding the 1945/46 presidential decrees and laws, a legal expert’s report commissioned by the European Parliament has concluded that they are irrelevant for the purposes of Czech accession to the EU. That legal opinion, however, is no substitute in itself for a political assessment, which must proceed in the first place from the proven fact that Sudeten Germans in particular suffered massive injustice. On the other hand, it is also undeniably the case that the human tragedy of the expulsion was rooted in the occupation of Bohemia and Moravia and the Second World War, historical events for which German National Socialism bore the blame. That the one injustice cannot cancel out the other is beyond dispute. The European peoples concerned will not be able to share a common future unless they ensure once and for all that the tragic events of our history will not be repeated. The Czech Republic’s prospective accession to the community of peace and law that is the European Union is one means to that end.
The Czech Republic is equal to membership of the Union in both political and economic terms, in accordance with the requirements laid down by the Copenhagen European Council in 1993.
Estonia
In a few weeks’ time Estonia, one of the first countries to open accession negotiations with the Union in 1998, will bring those negotiations to a successful conclusion. It is thus on the brink of membership and hence, having also been invited by NATO in Prague to join the alliance, of achieving its essential foreign policy goal of becoming a ‘normal’ (Western) European country. It has come through a process that began with the restoration of independence and, despite the many changes of government, has been pursued, as the necessary transformations have taken place, with single-minded adherence to market principles unequalled in the neighbouring region.
The task was made easier because Estonia was determined to break radically with the past – the collapse of the old economic order went hand in hand with the demise of the political system and the high-profile departure of the erstwhile powers that be. After the paralysis of the Soviet era the idea was to employ shock therapy to restore the agility and creativity needed to enable this small people to develop its human resources to the full. This course of action has proved relatively successful, bearing in mind that, compared with, say, the Višegrad countries, Estonia could not start until two years later and was also setting out from a weaker position. A stable currency, a balanced state budget, high foreign investment per caput, and a simple but effective tax system sum up Estonia’s success.
As far as the political criteria are concerned, Estonia has managed, in spite of the Soviet legacy, to open the way for the Russian-speaking minority to integrate and share in the country’s political, social, and economic development. The necessary legal framework and administrative practice have been established, but both sides also need to play their part, and that includes the minority, whose members must, for example, be willing to acquire at least basic language skills if they wish to become naturalised. The closure of the OSCE observer mission is a further clear sign of the progress achieved.
During the pre-accession phase difficulties in the economic sphere have arisen above all when Estonia’s liberal approach has been at odds with EU policy. Customs union has taken up a great deal of time, and, regarding taxation, Estonia has also been reluctant to undertake to levy certain taxes. The improved position on the revenue side of the state budget is currently helping to some extent to reduce existing deficits in the social sector, a matter which, revenue apart, requires more searching attention.
Needless to say, despite the successes mentioned above, Estonia still has some homework to do: the action plan adopted in April 2002 to increase the efficiency of the administrative and judicial authorities should be implemented more actively, primarily to improve administrative capacities in general and coordination among the authorities. Efforts should likewise be intensified in the areas of fisheries and social policy, especially, in the latter case, as regards employment policy.
However, one specifically Estonian problem on which attention needs to focus is the oil shale sector. About 90% of Estonia’s electricity is generated from oil shale. Oil shale mining and the conversion of shale into electrical energy severely pollute the environment. Oil shale is an inefficient energy generation material and, after accession, will be exposed to keen competition from EU electricity generated by other means. On the other hand, for economic, social, regional policy, and political reasons, it would be practically impossible for Estonia to cut its shale consumption in the immediate future. In the first place, the supply of shale is guaranteed; secondly, shale mining is concentrated in the north-east (Ida Virumaa region), which has a mainly Russian-speaking population and a high unemployment rate (19.2% in the first quarter of 2002, compared with 11.2% for the country as a whole). The EU needs to spell out more explicitly how far it has helping to promote structural change or, for that matter, environment-friendlier oil shale mining and processing in problem north-eastern areas in order to pave the way for balanced, harmonious change within society. The Commission, for example, has laid down exceptional arrangements to allow for the fact that Estonian energy utilities cannot be privatised at present and to deal with the advent of competition on the domestic electricity market.
Despite the feeling of being obliged to take over policies under the acquis, which undoubtedly exists in some quarters in Estonia – as in other candidate countries – it is nonetheless the case that Estonia has on the whole clearly benefited from EU support as the necessary transformation has proceeded. That is why, although the approval ratings are below the average for the candidate countries, the accession referendum in Estonia too should produce a vote in favour of EU membership.
Hungary
The Commission’s Regular Report concludes that, in the light of the progress achieved to date, Hungary should be able to complete the negotiations by the end of the year and assume the obligations deriving from accession in accordance with the timetable laid down.
This in fact is no surprise. Hungary has always been one of the front runners among the candidate countries as far as the pace of negotiations is concerned, and its performance, especially in the economic sphere, has been applauded, ranking as it does among the best in the region. The new Government that emerged from the April general election has kept faith with its predecessor’s commitment to membership of the Union. There is no doubt that the success of the reforms has been underpinned by the determination of the succeeding governments, bolstered in turn by the Hungarian public, which for the most part supports Hungary’s accession to the Union. That being the case, your rapporteur is proposing that the European Parliament call upon Hungarian citizens to take an active part in the referendum to be held in spring 2003.
The Hungarian economy is one of the most buoyant in the region. The growth rate is one of the highest in Europe (2.9%); the inflation rate is the lowest recorded in the last ten years (5.6%); the unemployment rate is relatively low (5.7%); trade with the Union is expanding at an increasing rate; and the volume of direct foreign investment is among the highest. In addition, Hungary’s GDP accounts for nearly 13% of the aggregate GDP of the twelve negotiating candidate countries. Your rapporteur would draw attention, however, to the size of the government deficit (5.5%), which he is calling on the Hungarian authorities to tackle so as to enable Hungary to be competitive on the internal market.
In the resolutions adopted over the last two years our Parliament has put forward a number of recommendations, not least to encourage further reforms as regards integration of the Roma, improvement of the dialogue between management and labour, adoption of the law on the media, and observance of the rules governing public procurement. Today, the progress in these areas is manifest, and the Hungarian authorities have been single-minded in their efforts. It is true that the efforts must continue. Integration of the Roma is a long, complex process that cannot be dictated. Nevertheless, the Hungarian Government undeniably understands the magnitude of the problem. The top-level administrative bodies set up to deal with Roma affairs and the increased budget resources are encouraging signs. Further signals will need to be given, for instance in the sphere of education, in order to change the public perception of the Roma community.
Your rapporteur considers it important, however, that the European Parliament has proposed a method whereby the Roma population should be encouraged under social and development policies to play an increasingly active role in planning, implementing, and assessing projects and specific measures to consolidate their integration. A long-term overall strategy and legislation to prohibit discrimination would be major steps forward that should be supported.
The way to progress in the audio-visual sector has finally been cleared following the adoption of the law on the media, the independence and pluralism of which are essential to enable democratic institutions to run smoothly and to secure the participation of civil society. The Hungarian authorities should be urged to bring their legislation fully into line with the acquis.
Regarding the shortcomings identified by the Commission, your rapporteur wishes to focus on two points. In the first place, an early agreement should be reached on the key ‘Competition’ chapter, and the Hungarian authorities must seek to bring national aid schemes, including tax advantages, into line. Secondly, an effective institutional framework needs to be in place for Structural and Cohesion Fund programming and implementation. As a matter of urgency, therefore, the Hungarian authorities should continue their efforts to improve both the capacity of payment authorities and the technical groundwork for projects that might be eligible for Community funding. In addition, as regards economic and social cohesion, the European Parliament is calling on the Hungarian authorities to lend their resolute support to enable SMEs to be set up and develop in less favoured regions, not least by offering the incentives required to create a favourable climate for investment and the emergence of a strong entrepreneurial class.
Addressing the European Parliament on 22 October 2002, President Mádl pointed to the importance of the solidarity and equity principle in the enlarged Union. He hoped that the terms to be offered to his country, not least as regards agriculture and the allocation of financial resources, would conform to that principle and that Hungary would be entitled to 22 seats in our Parliament. Your rapporteur strongly supports these demands.
Latvia
In recognition of Latvia’s compliance with the political and economic accession criteria, its efforts and the credibility of its commitment to reach the administrative capacity necessary to comply with the obligations of EU membership, and the advanced stage of accession negotiations, the European Commission recommends the accession of Latvia to the EU by January 2004.
Democratic institutions, human and minority rights
The recent parliamentary elections have reconfirmed the clear entrenchment of democratic pluralism and stability of state institutions in Latvia. As regards the naturalisation process in 2002, positive actions like public awareness campaigns and enhanced language training for applicants for naturalisation have triggered an increase in the naturalisation rate. Moreover the Society Integration Foundation has successfully started to implement the Integration of Society Programme, a policy framework aimed at increasing inter-ethnic cooperation, social cohesion and public participation. Funding is provided by the state (about 63%) and PHARE (about 37%). At present, one of the most sensitive issues in inter-ethnic relations is the planned switch as of 2004 of all state-funded secondary schools to the Latvian state language as the only language of instruction. Currently, about 30% of the pupils are taught in a minority language. Transitional arrangements and technical preparations such as a bonus scheme for teaching in Latvian, the production of teaching materials in the Latvian language and language training for non-Latvian speaking teachers are in place. However, according to surveys, close to 50% of minority schools feel they will not be ready for the changeover.
In parallel to the removal of the provision requiring Latvian language proficiency by candidates, the Latvian Parliament has adopted a number of constitutional amendments strengthening the protection of the Latvian state language, but raising some new concerns about minority rights. Whether these amendments impinge on minority rights will largely be determined by the way in which they are implemented.
Judicial reform
The adoption of amendments to the existing Code of Criminal Procedure has somewhat shortened the investigation process, reduced pre-trial detention and improved the protection of the rights of juveniles. Important investments in infrastructure have been made, such as the reconstruction of the Daugavpils Regional Court and the construction of a new court building in Riga. However, the new Code of Criminal Procedure, considered by both the Commission and Latvia as a decisive legislative measure for improving the functioning of the judiciary, is still in the drafting stage. According to the European Commission’s evaluation, the budget available for the judicial system remains largely insufficient.
Public administration reform
Most of the legal framework for the reform of the public administration is in place and implementation is in progress. In spring 2002, an Action Plan for reinforcing administrative and judicial capacity in all EU policy fields was agreed between the European Commission and Latvia. The further implementation of the civil service reform will be determined by the pace of introduction of a unified pay system. Considerable public investments will be needed to ensure substantially increased public salaries, the establishment of well-staffed enforcement bodies and state inspectorates in the various EU policy fields, such as social policy and labour, veterinary and phytosanitary inspections, and environment.
Fight against corruption
Progress has been achieved at the legislative level with the adoption of the Law on the Prevention of Conflict of Interest of State Officials and amendments to the Law on the Financing of Political Organisations. At the institutional level, the establishment of the Corruption Prevention and Enforcement Bureau should be noted. The effectiveness of the anti-corruption measures and enforcement of anti-corruption legislation will largely depend on high-level political direction.
Preparation for participation in EU Structural Funds (ESF, ERDF, and EAGGF)
Latvia has made progress in preparing for participation in the EU’s Structural Funds. In order to be able to benefit from the SAPARD programme, Latvia has set up a fully decentralised management and control system, which will allow it to comply with the structural and procedural requirements of the EAGGF after accession. Progress has also been made at the institutional level as regards overall Structural Fund management. The preparation of a draft Single Programming Document is ongoing and the draft should be submitted to the Commission by the end of 2002. Some public consultation has taken place in the form of public seminars and public presentation of the draft.
Environment policy
Latvia has made noticeable progress in legislative alignment, implementation capacity and institutional strengthening. Integration of environmental considerations into other policy areas is progressing at a conceptual level. In order to enhance this integration, cooperation between the environmental bodies and the other government departments should be improved, responsibilities clarified and adequate staff resources ensured for monitoring purposes.
Lithuania
As stated in earlier European Parliament reports on Lithuania, the overall picture as regards the Copenhagen political criteria is positive, but improvements are needed in the judiciary and in relation to pre-trial detention and prison conditions. In the former area, new laws which have recently been adopted and the salary level for judges which has been fixed give reason to believe that problems in the functioning of the judiciary will diminish in the near future. There is, however, little hope that further substantial improvement in the prison conditions could be achieved in the short term, mainly due to phenomena such as the spread of diseases and the increased mortality rate. Funds for necessary investments must be found, although this is not easy.
In the economic area, the positive development of GDP, inflation rate, current account and budget balance are noteworthy. Nevertheless, it is clear that much more must be done to improve the business climate, not least with a view to stimulating the creation of new jobs and bringing down unemployment, which remains a very serious problem.
The need to ensure continued growth, not least of export companies, as well as successful establishment of new enterprises means that major increases in labour costs should be avoided, although in the longer term, salaries should rise from their current levels. This is needed not only for the welfare of workers and their dependants, but also in order to prevent a social dumping phenomenon taking hold and spreading from the region. Continued productivity rises and expansion should gradually create room for improvements in salary levels, in Lithuania as well as in neighbouring countries.
Much can be said about the acquis criteria and the Commission does so in its recent Progress Report. Since the picture painted in this report is not controversial, but recognised by Lithuania as accurate and fair, it will suffice to call on Lithuania to keep up its efforts to prepare for EU membership and strengthen them in the areas where the Progress Report indicates that this is needed.
The Ignalina issue remains an important topic in the membership negotiations. It is important that Lithuania’s estimation of the costs associated with the closure of this nuclear power plant is fully realistic and that appropriate structures which can be supported by the EU are set up.
The EU recognises that the decommissioning of the Ignalina NPP constitutes a specific problem for Lithuania and that specific and additional EU aid is therefore warranted. This clearly applies to the decommissioning proper. The fact that a whole production sector, in this case the energy sector, has to be restructured is, however, not entirely unique.
Finally, the Kaliningrad transit issue has to be dealt with on the basis of clear principles, including full respect for Lithuania’s sovereignty. The EU’s policy must be consistent. This applies to the accession negotiations and the dialogue with Russia on transit arrangements. It also applies to what leaders of Member States declare in various contexts.
Malta
The report on Malta, which in recent months has made considerable headway in the negotiations, deliberately focuses on a few matters such as taxes and excise duties and those parts of the agricultural sector that cannot be financed, which are still outstanding and should be settled as quickly as possible. One fact particularly worthy of note is that both the ‘Environment’ and the ‘Competition’ chapters have been provisionally closed. The thorny question of taxes is a specifically Maltese problem. Like the United Kingdom and Ireland, Malta does not levy value added tax on foodstuffs and medicines. The rapporteur believes that Malta’s desire for a transitional period should be seriously considered and the whole matter treated separately from the negotiations with Cyprus. Another essential point, not raised in so many words in the report, is the special needs of the island of Gozo, which, over and above the agreements in the ‘Agriculture’ chapter, should be taken into account, for instance by appending an additional protocol to the accession treaty. As far as the financial package is concerned, it should be ensured that Malta’s status in the first years of its accession will be that of a net recipient, as is right and proper. The European Parliament is naturally anxious that Malta, like all the candidate countries, should take steps to fight corruption and shares the Commission’s view expressed in its report that a programme is needed. The preconditions have already been established, since a standing committee on measures to combat corruption was set up in 1995. Regarding domestic politics, nothing has changed in the Labour Party’s fundamental opposition to Maltese accession to the EU, and it is likewise unclear what attitude the party would take to a future referendum on EU membership. Labour still maintains that elections alone constitute the real referendum. There has, however, been one new development in the political situation in Malta because the former Prime Minister Dom Mintoff has launched his own campaign, which is not intrinsically hostile to the EU, but critical first and foremost of the results achieved by the Government in the negotiations. The outcome of an EU referendum once the negotiations have been completed is therefore uncertain. However, Maltese citizens should realise that Malta will not be given a third chance. That point was stressed by the Luxembourg Prime Minister, Jean-Claude Juncker, when he paid an official visit to Malta.
Poland
The conclusions of the Commission’s Regular Report on Poland confirm that, given the progress achieved to date, the negotiations are likely to be completed on schedule and Poland will be able to join the Union in 2004. In addition to this optimistic and eagerly awaited finding, however, the Commission has made some recommendations on further efforts to be undertaken in the different areas in which the results obtained are not yet satisfactory.
The Commission’s expertise is not in doubt and its approach, supported by technical considerations, seems wholly proper and beyond challenge, as can be seen, for example, in the discrepancy which it has identified between the progress made in adopting the acquis communautaire and actual implementation of the acquis, especially in the agricultural and veterinary sector and as regards food safety and customs. It is very important to establish machinery and procedures to oversee public money and enable Community funds to be managed soundly and efficiently.
Your rapporteur agrees with these conclusions but would like to focus more specifically on certain points. What we have been seeing recently is a kind of ‘race against the clock’: in the last ten months Poland has closed ten negotiating chapters. This acceleration was brought about by a considerable effort on the part of the Government, Parliament, economic and social players, and Polish society, which mobilised its strengths to the full, in a difficult economic situation, in an attempt to catch up with the ‘pack’ of candidate countries in the accession negotiations.
Among the chapters recently closed, the ‘Justice and Home Affairs’ chapter proved very difficult because it demanded particular efforts to strengthen the measures to combat organised crime and improve border management. The latter is very important from the point of view of the enlarged Union and our aspiration to build a European area of freedom, security, and justice. The effort that the Poles will be called upon to make to secure the Union’s future eastern borders should be recognised and acknowledged. What is at stake is our security and the prospects for the entire region. Furthermore, Poland is endeavouring, through its diplomatic measures, to reconcile the concern to preserve its cultural and economic ties with its eastern neighbours and the obligations to the EU laid down in the Schengen Agreement. Visas will thus be introduced from 1 July 2003, but the arrangements will be as flexible and simple as possible.
The shortcomings and weaknesses identified in the last Regular Report and our June resolution have in many cases been eliminated. I shall mention some of them in more detail.
The independence of the central bank has been preserved and the tensions between the bank and the Government are no longer a problem. President Kwaœniewski, who chaired the discussions between the two parties in June, performed a useful mediating role.
The highly controversial law on the media has been amended and, although some provisions are still giving rise to objections from media circles, the guarantee of media pluralism and independence has not been undermined.
On the other hand, progress where the civil service is concerned is very modest. Greater efforts and determination will need to be brought to bear to produce practical results.
As regards agriculture, the Polish authorities have recently changed their negotiating stance and are attempting to find a solution enabling Polish farmers, who are seriously worried about their future in the Union, to be competitive. This will have to go hand in hand with the necessary modernisation of the agricultural sector.
The other unresolved problem relates to the steel industry. The restructuring programme submitted to the Commission by the Polish authorities has been judged to be satisfactory. However, there are still matters to be dealt with, for instance regarding the necessary investment, subsidies, and labour force cuts. Given that the unemployment rate stands at 18%, the issue is particularly sensitive, but the Polish Government is aware of that fact.
In short, by tackling the difficulties which, to a large extent, are common to all the candidate countries, Poland is making its way towards accession to the EU and your rapporteur is confident that it will reach its goal on schedule.
Slovakia
The part of the resolution on Slovakia mainly contains a number of questions and recommendations. They concern points that have also been raised in the Commission’s report or in earlier resolutions of the EP. They are not uniquely Slovak issues. Yet it is important that the European Parliament remains critical until the end of the negotiating process in order to be able to do its work seriously in the assent procedure. The remarks made about corruption or the Roma are meant to encourage the Government of Slovakia to make further progress in these areas. The work is not done yet. The publication of the report by the European Commission was the start of the final round. At the moment of accession the new Member States will have to be ready. When preparing the final assessment the EP should uphold the principle of fairness. We cannot ask more from the new Member States than the present ones are able to deliver.
The rapporteur is convinced that Slovakia will be able to solve the outstanding issues. Since the elections of 1998 the pace of reform has been impressive. There is no reason why this cannot be continued given the positive outcome of the September elections.
The election result also made clear, for the second time, that the citizens of Slovakia do not want a repetition of the kind of government that was in place before 1998. Some of the problems of Slovakia originate from that period but it is unfair to keep referring to that episode as if there were still something wrong with the country.
The rapporteur decided not to make any reference to the so called Beneš decrees. In general we should be careful about using history in politics, but it is also unwise to try to link the issue to accession. If there is a need for a debate, let the citizens of Slovakia, of Slovak and Hungarian origin, handle it.
Slovenia
As long ago as in 1997 the Commission opinion concluded that Slovenia satisfied the Copenhagen political criteria. Since then Slovenia has made headway in consolidating democratic institutions. Today it is a functioning market economy and will presumably be able to engage in international competition.
Given its economic, administrative, and political advances and its compliance with the Copenhagen criteria, Slovenia is one of the countries which has been working most actively on the European acquis.
The Slovene Government and Parliament (which in practice span the entire breadth of the ruling order) have for years treated Slovenia’s accession to the Union as the main priority.
The work to restructure the economy and improve the current bankruptcy legislation obviously needs to continue. However, there has been a drop in the number of unresolved cases involving compulsory settlements in district courts, bankruptcies, commercial disputes, and payment orders. The reform of the judiciary has served to speed up the procedures.
For reasons to do with the collective psychology of the general public, who were worried about the prospect that their small country might be economically swamped with foreign capital, the international business presence was until recently below average but has now expanded to the normal proportions. One figure may be considered indicative of the general situation: in the banking sector 76% of assets are now privately owned. The pace of this operation was rapid, and it is accordingly to be hoped that Slovenia will move further forward in the same direction.
Given the substantial administrative capacity, the reforms of the institutional framework for consumer protection are expected to be completed, and the matters still outstanding are unlikely to pose serious difficulties.
As regards respect for human rights, Slovenia is committed to maintain effective provisions to protect minorities overall, but focusing in particular on the approximately 3 000 permanent Roma residents, who have the benefit of normal and special schools, programmes on two national radio stations, and a newspaper. These facilities are also used by Roma family groups who choose merely to pass through Slovenia on their way to the West.
In agreement with the European negotiators, Slovenia has opted to remain a single region until 2006; experience over the next few years will show whether this is the best solution or the territory could be divided differently to meet the country’s development needs.
In the opinion of foreign experts and politicians, Slovenia is one of the countries that will pose relatively few problems as reforms are put in place to establish a common European order.
In short, there is good reason to hope that Slovenia will be able to assume its obligations within the appointed time frame if it continues to advance at the present pace.
Bulgaria
On 9 October 2002 the European Commission published a Strategy Paper ('Towards an Enlarged Union') and its latest Regular Report on Bulgaria's Progress towards Accession.
The rapporteur welcomes the recognition this gives to the further progress made by Bulgaria towards meeting the Copenhagen criteria and the considerable progress it has made in the negotiations. The 2002 Report finds that Bulgaria now has a functioning market economy, able to cope with competitive pressure and market forces within the Union in the medium term as long as it continues to implement its reform programme.
The Government of Prime Minister Simeon Saxe-Coburg-Gotha has been in power for over a year and the rapporteur acknowledges that significant efforts at reform appear to have been made on judicial reform; an Action Plan has been adopted to tackle corruption, and work is continuing apace on reforming the public administration. However, there still remain fundamental weaknesses which are hindering progress in many areas. The amendments to the Judicial System Act aimed at preventing corruption in the judicial system (e.g. magistrates will have to declare property status) are welcomed but the structure of the judicial system in itself as well as the question of the immunity of magistrates need to be urgently addressed. Bulgaria still spends relatively little on its judicial system, compared with the EU average and its own spending on defence, for example. But the proposal made on 17 October by Justice Minister Stankov for the State budget to allocate EUR 6.9 m for judicial reform will be a step in the right direction, if implemented. Planned amendments to the Civil Service Act would bring about changes in the civil service appointment process with the aim of ensuring greater accountability, better training (including on dealing with EU programmes) and the reduction of politically motivated appointments.
Despite the Action Plan, corruption continues to be perceived (and experienced) by ordinary Bulgarians as pervasive. While Bulgaria has moved up to 45th (among 102) in the latest Transparency International Corruption Perception Index (compared with its previous ranking of 57th) significant improvements are still required. Work needs to continue on forming an anti-corruption attitude both in the administration and within society itself. We note, in this context, the fact that a number of privatisation deals are currently being investigated, and that the draft law amending and supplementing the Penal Code (2002) takes a new approach to crimes of corruption, basing itself on international Standards (e.g. EU, Council of Europe), and reforms are under way to tackle corruption in the taxation and customs services.
Economically Bulgaria's 4% growth rate and its macroeconomic stability are encouraging, and the rapporteur notes the upgrading of Bulgaria's credit rating by a number of international credit-rating agencies (e.g. Standard and Poors, Japan Credit Rating Agency). But with unemployment at 21.4% in 2001 and restructuring causing hardship for many, ordinary citizens are not experiencing any positive trickle-down effect, bad in itself but ultimately also for their perception of future EU-membership. (In July there was a slight decrease in public approval of EU membership, vis-à-vis the previous month.) In this context, the launch of Bulgaria's Council for European Communication (CEC), to deal with its communications strategy on its preparations for EU membership, is to be welcomed. It should be noted that popular discontent over lack of improvement in living conditions has risen. This has so far not been channelled into demands for political alternatives (Polls have shown that although only a small part of the population still supports the Government, only very few would prefer another.)
The rapporteur is also concerned about the large number of children in institutional care, and is disturbed by reports (e.g. the 10 October 2002 report by Amnesty International) of the poor conditions in children's homes as well as in homes for elderly and handicapped people. Secondary legislation to back up the fledgling Child Protection Act has yet to be approved, and enforcement and implementation of the Act itself need to be improved: Bulgaria should further strengthen its efforts to ensure that the best interests of the child are reflected and that children are placed in care only as a last resort. In addition to the issues associated with the institutional care of children, there is the problem of the trafficking of children, and in particular of girls, for the purposes of sexual exploitation (as noted in the US Department of State Report of June 2002). Linked to the wider problems of corruption and border controls, progress has been made in tackling this matter in recent years but further efforts are required.
On minorities, an anti-discrimination law was adopted by the Council of Ministers on 12 September 2002, covering the directives implementing the principles of equal treatment without discrimination on the grounds of social and ethnic origin and between men and women. However, integration of the Roma still remains token at best.
On 29 November 1999, then Prime Minister Ivan Kostov and Gunter Verheugen, Commissioner for enlargement, signed a Memorandum of Understanding which made the following undertakings: units 1 and 2 of the Kozloduy nuclear power plant were to be closed by the end of 2002 and closure dates for units 3 and 4 were to be agreed by the same deadline (but before 2008 and 2010 respectively). It was also agreed that units 5 and 6 were to be modernised and made safe, with assistance from a Euratom loan. Some expressed preference for a closure date of 2006 for units 3 and 4, while others favour extending the closure deadlines beyond 2006.
The Kozloduy plant is responsible for both a significant proportion of Bulgaria’s energy production and also its energy exports to neighbours. There is, however, conflicting information regarding Kozludoy's precise importance to the Bulgarian economy. The rapporteur has therefore requested that an objective study of the economic and social consequences of the early closure of units 3 and 4 be undertaken at the earliest available opportunity.
In regard to Bulgaria's receipt of EU pre-accession assistance, the country has had problems with the coordination of these funds, although there are indications that improvements have now been made. However, our concern is to know how effectively these funds are absorbed, especially in regard to how well targeted and managed the relevant programmes and projects under PHARE, ISPA and SAPARD are.
Following the terrorist attacks on the United States of 11 September 2001 Bulgaria has continued to be a reliable partner, making good use of its recent chairing of the UN Security Council and offering assistance to its European and American allies in actions to counter the threat of terrorism. Bulgaria aligns with the EU’s CFSP and continues to act as a force for stability in south-eastern Europe. In addition to its contribution to ISAF, Bulgaria has provided overflight rights and some basing facilities for operations in Afghanistan.
Bulgaria is now seeking an invitation to join NATO at the alliance’s Prague Summit in November 2002. As part of NATO's Membership Action Plan it is concentrating on professionalising and re-equipping its armed forces in order to make them more inter-operable with the forces of alliance members, and funding for military reforms has increased.
Romania
In recent months Romania has made significant and quantifiable progress in a number of important issues. Her massive restructuring of defence and security matters and the new policies that have been followed through both give her a major boost towards membership of the Union and assures her of a positive decision by NATO at the Prague Summit on 22 November toward Romanian membership. The run-in period for NATO membership looks likely to be 18 months in place of the more usual period of 3 years during which time Romania has the opportunity to consolidate her gains, which she is set fair to do.
NATO House, a recent initiative, is a small independent foundation financed by business but initiated by government. This seeks to inform and involve civil society on the broad thrust of NATO membership which also incorporates a look at civic responsibilities and citizens' rights and freedoms.
Considerable effort has also been put into Black Sea cooperation with the setting-up in June this year of a new institutional framework for Black Sea cooperation with other riparians. This move is again of benefit to EU accession within the various environmental requirements. The legal problems affecting navigation on the Danube together with the practical problems created by the Kosovo and other crises are a horizontal issue impacting on several applicant countries but once resolved will give Romania a welcome boost in terms of market access and general economic development. The welcome news is that GDP grew by 4.9% in real terms in 2001 after a three-year fall and a forecast of 5% growth for 2002 is likely to be met. 2002 also shows a rise of 11.5% on 2001 of Romanian exports but imports still exceed exports with the concomitant current account deficit of 3.5% of GDP in 2001. The new target for consolidated budgetary deficit is 3% of GDP for 2003-2005. Inflation still remains at a high level of 30.3% in 2001 although the Government is hopeful of meeting its target of an inflation rate of 22% for 2002 and of bringing that below 10% for 2004. Unemployment has risen from 7.1% in November 2001 to an estimated 12.4% for 2002 although the real level appears to be considerably higher than government official figures. The overall picture indicates that Romania’s efforts in achievement macroeconomic stabilisation are being successful, despite the black economy.
In response to the Commission’s Regular Report the Romanian Government has committed itself to bringing Romania into the Union on 1 January 2007 through assuring her preparedness and thus making entry at that date an inevitability. At the government meeting of Thursday 31 October the Prime Minister and the Government passed a fully comprehensive suite of detailed activities to be undertaken and fulfilled by every ministry and the judets in order to finalise the accession process from the Government’s perspective. This massive document was studied and agreed and Ministers committed themselves to putting their full weight behind the process. This major and laudable initiative demands the full support of EU institutions. The Commission has already declared its support. It would be right for the European Parliament to do the same. Such a declaration would of course not be binding upon the European Parliament if Romania were unable to fulfil her own governmental programme. Nonetheless, if she manages to do it (and it is indeed possible, given the political will) then there is a right and proper inevitability for accession in any event. The date of 1 January 2007 may be properly endorsed by Parliament.
Membership of NATO can do little or nothing to soften the impact of deep and continuing poverty, against which so much of Romania’s population currently struggles. Wages and salaries are frequently well below the cost of heating, and Romania has bitter winters when Russia increases the price of oil. Leaving aside the need for food, clothing, medical assistance and transport. Mere survival is the foremost preoccupation of many, particularly in rural areas where there is an absolute requirement for basic needs provision such as running water and primary health. The Commission’s restructured road map could be targeted with benefit more directly at ways of providing those absolute necessities of life which Romania’s high level of subsistence farmers and those in greatest need in cities and towns most urgently require.
At the same time, the Romanian Government and civil society have combined to tackle some of the most serious areas of social exclusion successfully. A shining example is that of children in special need where the bringing in of modern methods of child health and development combined with the start of a campaign against trafficking and other corrupted methods of using children, notably the sale of children as income sources for criminals and their associates, is proving successful. Improper external pressures notwithstanding, the Romanian Government is winning through. The policy of social inclusion is also affecting favourably other formerly marginalised groups such as the Roma and the disabled. The national Roma plans are progressing well and with the appointment of a disability commission a national policy for the disabled is now likely within a reasonable timescale. An absolute requirement must be to create professional standards and ethics bodies. A start has been made with a body for medical ethics which once settled in would hopefully stop the exploitation of children and adults by foreign organisations and institutions whose actions in Romania would surely be disallowed in their own environments, countries or states. In this context the proposed Bar Association training school is well worth consideration for external funding. The European Commission’s Regular Report marks a critically important step for Romania in her return to the European fold after so many years of exclusion. Naturally, at this precise moment of enlargement for the ten, and in the wake of less than helpful recent statements by the Bulgarian Prime Minister, Romania remains concerned that her entry may be held back not by her own lack of preparation but by the newest incomers. It is imperative that this does not happen and that the current enlargement round is only deemed to be complete when Romania enters. The European Parliament can send a clear signal of this intent which your rapporteur most seriously recommends.
OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS
22 October 2002
for the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy
on enlargement: progress report
(COM(2002) 700 – C5‑0474/2002 – 2002/2160 (INI))
Draftsman: Christa Randzio-Plath
PROCEDURE
The Committee on Economic and Monetary Affairs appointed Christa Randzio-Plath draftsman at its meeting of 8 October 2002.
The committee considered the draft opinion at its meeting of 21 October 2002.
At the latter meeting it adopted the following conclusions unanimously.
The following were present for the vote: Christa Randzio-Plath, chairman and draftsman; José Manuel García-Margallo y Marfil, Philippe A.R. Herzog, and John Purvis, vice-chairmen; Hans Blokland, Hans Udo Bullmann, Bert Doorn (for Jonathan Evans), Carles-Alfred Gasòliba i Böhm, Christopher Huhne, Othmar Karas, Piia-Noora Kauppi, Werner Langen (for Ingo Friedrich), Hans-Peter Mayer, Bernhard Rapkay, Mónica Ridruejo, Bruno Trentin, and Jaime Valdivielso de Cué (for Generoso Andria).
CONCLUSIONS
The Committee on Economic and Monetary Affairs calls on the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy, as the committee responsible, to incorporate the following points in its motion for a resolution:
1. Welcomes the considerable progress made by the all the applicant countries since the last report; underlines that although all applicant countries have demonstrated considerable economic growth in recent years, there is still much catching up left to do; stresses, in that context, that economic reform must go hand in hand with measures to promote employment and social inclusion, in the context of sustainable development;
2. Notes with satisfaction that one more country, Bulgaria, now for the first time is considered to be a functioning market economy, but agrees with the Commission's assessment that reforms must be pursued in order to make sure that the Bulgarian economy will be able to cope with the competitive pressures of EU membership;
3. Welcomes the fact that substantial progress has been made as regards the adoption and adaptation of financial services legislation but stresses that in most countries, considerable efforts are still urgently needed to strengthen regulatory and supervisory arrangements in order to guarantee a well-functioning financial market; recalls in that context that it is especially important to also ensure that all the appropriate money laundering and anti-fraud legislation is implemented and properly enforced from the day of accession;
4. Shares the Commission's concern about the fight against corruption and financial criminality, and stresses the need for the acquis communautaire to be transposed in its entirety and applied in this area;
5. Notes that the Commission has thoroughly examined the applicant countries' performance as regards universal service obligations, in line with the European Parliament's request expressed in its resolution of 13 November 2001;
6. Points out the importance of pursuing the reform of administrative systems and public services; points out, in this connection, how essential it is for those reforms to take care of the needs in terms of infrastructure, education, vocational training and action to meet environmental standards;
7. Points out that joining the European Union means adopting a certain model of society, together with its implications in terms of social policies, and that it is thus necessary to ensure a high level of social protection for all citizens; also stresses the need for an effective system of consumer protection;
8. Agrees, as far as competition policy is concerned, with the Commission's view that although anti-trust legislation for the most part has been adopted, considerable attention and effort will have to be devoted to improving its application and enforcement in order to guarantee a truly level playing field; this improvement should, however, take into account the specificities of local structures of social cohesion;
9. Considers that, in matters of sectoral and regional State aid, the conditions for the accession of the Eastern German Länder should be the guideline for the current accessions;
10. Observes with concern the very existence of special zones with tax privileges for foreign investors, which will have to be phased out;
11. Suggests therefore, in addition, that a review similar to that done by the Primarolo Group should be undertaken for each of the applicant countries in order to detect measures which could actually or potentially result in harmful tax competition;
12. Is concerned about the very low rate of corporation tax in some candidate countries, particularly Cyprus and Estonia, and wonders about the adequacy of the measures recently negotiated by the Commission;
13. Notes that the question of the independence of central banks is not any longer under discussion; shares, consequently, the very serious concerns of the Commission about the independence of the Polish central bank, in particular relating to financial independence and the independence of its personnel;
14. Shares, as far as EMU membership is concerned, the Commission's view that new Member States cannot and shall not immediately adopt the euro upon accession; emphasises in this connection the economic and political value of all Member States participating fully in the economic and monetary union; points out, however, that bearing in mind the constraints inherent in preparing for the transition to the euro, precipitate, poorly prepared accession to economic and monetary union could cause destabilisation of these countries' monetary, economic and social systems;
15. Believes, however, that points of criticism should not detract from Parliament's basically favourable position on the enlargement process and the importance of the Central and East European Countries becoming full members of the European Community;
16. Emphasises also that membership in itself makes it easier for the applicant countries to attain the objectives to which the Union aspires.
OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
5 November 2002
for the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy
on enlargement: progress report
(COM(2002) 700 – C5‑0474/2002 – 2002/2160 (INI))
Draftspersons: Miet Smet and Harald Ettl
PROCEDURE
The Committee on Employment and Social Affairs appointed Miet Smet and Harald Ettl draftspersons at its meeting of 12 April 2000.
It considered the draft opinion at its meetings of 21 October and 5 November 2002.
At the latter meeting it adopted the following conclusions by 17 votes to 0, with 2 abstentions.
The following were present for the vote: Theodorus J.J. Bouwman, chairman; ; Miet Smet and Harald Ettl, draftspersons; Hans Udo Bullmann (for Jan Andersson), Philip Bushill-Matthews, Chantal Cauquil (for Sylviane H. Ainardi), Alejandro Cercas, Proinsias De Rossa, Carlo Fatuzzo, Stephen Hughes, Ioannis Koukiadis (for Enrico Boselli), Arlette Laguiller, Bartho Pronk, Lennart Sacrédeus, Helle Thorning-Schmidt, Ieke van den Burg, Anne E.M. Van Lancker, Barbara Weiler and Sabine Zissener (for Regina Bastos).
CONCLUSIONS
The Committee on Employment and Social Affairs calls on the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy, as the committee responsible, to incorporate the following points in its motion for a resolution:
Paragraph 1
Underlines that all countries negotiating for EU membership have in fact closed the chapter on social policy and employment; also underlines that out of those countries only Romania has not closed the chapter on free movement of persons;
Paragraph 2
Welcomes that in 2002 a number of countries appear to be ending a period of labour shedding and are recording employment growth; draws attention to the fact that on average candidate countries are still marked by falling employment; welcomes the Joint Assessment of Employment Policy Priorities (JAP) that the Commission signed with the candidate countries - except for Latvia, Romania and Bulgaria - as an important step in the preparation for joining the Luxembourg process; hopes that JAPs for the three remaining countries will be finalised soon; calls now for effective monitoring of the priorities contained therein in the light of the rising rate of unemployment, especially in the younger and the most vulnerable population; calls for the necessary measures to be taken to create new employment opportunities and to tackle the labour market rigidities and skill mismatches that have also been identified by the Commission;
Paragraph 3
Calls for further efforts to be made in the area of granting State aids for industry restructuring in those candidate countries with a heavy industry; direct payments for restructuring should guarantee a successful restructuring process and not lead to a competition distortion; additional flanking measures should be applied in order to prevent excessive unemployment and social exclusion;
Paragraph 4
Urges the necessity to strengthen social dialogue in all candidate countries in order to contribute to democratic development of social and labour legislation; stresses again that the social dialogue should be enhanced at sectoral and branch level and calls for further efforts to make sure that information and consultation of employees at company level is given;
Paragraph 5
Stresses the importance of encouraging cross-border cooperation between local authorities, industry, trade unions and local education authorities on both sides in order to help the workers to better adapt to labour market effects;
Paragraph 6
Stresses the importance of investing in sustainable health care and pension systems; asks for expenditure reforms where needed; reformulates its demand for special efforts to combat clandestine employment since its widespread existence distorts the internal market, reduces the number of contributors and can impede the practical implementation of a pension system, and to combat the exploitation of under-age workers and all forms of slavery;
Paragraph 7
Health and safety at work
Points out that almost the entire acquis in the area of health and safety at work has been transposed into national legislation in the candidate countries; however, secondary legislation in order to ensure the complete transposition of the acquis is still needed in some candidate countries; insists on an effective implementation of the acquis communautaire irrespective of the costs linked to it; demands that the capacity of labour inspectorates to assure the enforcement of health and safety legislation be strengthened, e.g. by training and adequate staffing;
Paragraph 8
Social legislation
Draws attention to the fact that social legislation is as important a part of the acquis as for example the competition legislation; not only the health and safety legislation but also the rights of workers, working time regulations, equal opportunities and equal pay must be fully implemented; stresses the need to strengthen the administrative capacity to enforce the social acquis strictly; asks for special attention for the implementation of the social acquis in the field of road transport in some countries, especially with regard to working time regulations;
Paragraph 9
Welcomes the positive developments in several countries with regard to the situation of minorities; welcomes the fact that in countries with sizeable Roma communities progress has been made with the implementation of the national action plans to tackle discrimination and improve living conditions; regrets the fact that Roma continue to suffer discrimination in access to education, housing and employment; suggests that action plans are implemented in close cooperation with Roma representatives; asks for further efforts to ensure alignment with the acquis on anti-discrimination based on Article 13 of the EC Treaty; stresses the role of NGOs and voluntary bodies in the provision of social services for people with disabilities and the groups which are most vulnerable and at risk of social exclusion;
Paragraph 10
Romania and Bulgaria
Recognises the efforts already made by Bulgaria and Romania in order to align their legislation with the acquis; stresses the need to sign the Joint Assessment of Employment Policy Priorities; welcomes Romania’s explicit government priority in fighting social exclusion and poverty; encourages Bulgaria to steps up measures in favour of socially vulnerable people and, in particular, with regard to living conditions in institutions.