Analysis of the National Indicative Programme (2011-2013) of Israel

Israel is a mature and developed economy, which differentiates the country from others in the Mediterranean basin. To that extent, the European Neighbourhood Policy (ENP) funding is limited in its budget; however the scope of action, aiming to further economic and political cooperation, is broad. In broad terms, the lack of specific provisions to achieve these tasks makes it particularly difficult to assess the two programmes. In the area of economic cooperation, the ENP Action Plan stresses the need for regulatory convergence so as to enable greater Israel’s integration in the EU’s Single Market. This area covers harmonisation of economic and trade-related rules and regulations with the potential to enhance trade, investment and growth. Israel and the EU have had a free trade in industrial products ever since late 1970s. New negotiations are continuing in the services and investments areas, which are still lagging behind in terms of EU’s economic integration. Another key area addressed in both the 2007-2010 and 2011-2013 National Indicative Programmes (NIPs) is the emphasis on the resolution of the Israeli-Palestinian conflict, covering foreign and security policies and human rights issues. Apart from enhancing dialogue to identify common interests and cultural exchanges, the ENP programmes for Israel and Palestinian Authority could be aligned to give incentives for all parties to contribute to the peace process.