# EUR-Lex - 52012JC0014 - EN

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# 52012JC0014

**JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on a new European Neighbourhood Policy /* JOIN/2012/014 final */**

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JOINT COMMUNICATION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE
COMMITTEE OF THE REGIONS

Delivering on a new European Neighbourhood
Policy

Introduction

Last year's changes in the Neighbourhood,
in particular in the Southern Mediterranean but also in Eastern Europe, led to
a rapid EU response. Within weeks, the High Representative of the Union for
Foreign Affairs and Security Policy and the European Commission issued a joint Communication on a Partnership for Democracy and Shared
Prosperity setting out the immediate response to the unfolding historic events.
Combined with the revision of the neighbourhood policy, this resulted in a “New
Strategy for a changing European neighbourhood”[1]. This
sent a clear message of solidarity and support to the peoples of the Southern Mediterranean.
Their struggle for democracy, dignity, prosperity and safety from persecution
would be supported by Europe. Europe would also bring its experience and know
how to help them address the challenges of transition from authoritarianism to
democracy. This has been a top priority for the new European External Action
Service (EEAS) and the European Commission. Building on the achievements of the
Eastern Partnership, the new policy was also a response to the call of the EU's
Eastern European partners for closer political association and deeper economic
integration with the EU. The successful Eastern
Partnership Summit in Warsaw and the Summit's Joint Declaration gave a further
impetus to the implementation of the new approach.

The policy is based on new features,
including a "more for more" approach, the importance of mutual
accountability between the EU and its partners, the need for partnerships
not only with governments but also with civil society (e.g. NGOs,
businesses, academia, media, unions, and religious groups) and a recognition of
the special role of women in reshaping both politics and society.

The new ENP approach also recognised the
importance of differentiation and tailors relations to the level of
ambitions of partners. It is therefore based on the respect for every partners'
specificities and their own reform path. The new policy has enshrined greater
flexibility and set out a framework for tailored responses, matching the specific
requirements of the countries, their progress in undertaking reforms, and the
nature of the partnership they seek with the EU.

A year on, this joint Communication of the
High Representative and the Commission gives an assessment of the
implementation of the new approach. This Communication, accompanied by a set of
Joint Staff working documents[2],
shows that the EU has been quick in laying the policy’s new foundations, and
that most partner countries have responded positively, indicating their
readiness to pursue political and economic reform with increased determination
and to engage more deeply with the EU.

A number of innovations have been particularly
important:

·
In July 2011, the Council appointed an EU
Special Representative for the Southern Mediterranean region. Working together
with the Commission and the EEAS, the new EUSR has contributed to the response
of the EU by enhancing the Union's effectiveness and visibility through
political dialogue and economic cooperation with all parties involved in the
process of democratic transformation in the region. To achieve these
objectives, the Task Force is designed to work together with our partners bringing
country-specific expertise and resources from the EU, its Member States, the
European Investment Bank, the European Bank for Reconstruction and Development
as well as other International Financial Institutions and the private sector.
The EU-Tunisia and EU-Jordan Task Forces have proven to be effective
instruments for democratic change, accelerating the delivery of support, and
financial assistance by involving a wide range of institutions. Acting as a
catalyst, the Task Force allows deepening the EU's relationship with countries
in a results-oriented, tailored and differentiated way.

·
The Commission has put forward "umbrella"
financial programmes (SPRING for the South and EaPIC for the East) to make
available more rapidly the additional funds announced in 2011, in order to support
democratic transformation, institution building and further growth in the partner
countries.

·
In light of the challenging economic outlook in
Europe, the High Representative and the Commission have taken bold steps to
mobilise financial assistance for transition in the neighbourhood from outside
the traditional community budget. This has included an increase in the lending
ceilings of EUR 1.15 billion to partner countries[3] from the European Investment
Bank, and an extension of the mandate of the European Bank for Reconstruction
and Development to cover the countries of the Southern and Eastern
Mediterranean.

·
A Civil Society Facility covering the
entire neighbourhood was launched in September with an initial budget of EUR 26
million for 2011 and similar amounts planned for 2012.

While progress has not been universal, since last year, many
partners have taken bold steps to accelerate their democratisation and reform
processes. There have been more free and fair elections and better protection
of fundamental freedoms and human rights. There is also more space given to an
open public debate, thereby strengthening governments' accountability.

“More for more”

The new policy put the principle of “more
for more” at its heart: only those partners willing to embark on political
reforms and to respect the shared universal values of human rights, democracy
and the rule of law have been offered the most rewarding aspects of the EU policy,
notably economic integration (based on the establishment of Deep and
Comprehensive Free Trade Areas - DCFTAs), mobility of people (mobility
partnerships), as well as greater EU financial assistance. Equally, the EU has
reacted to violations of human rights and democracy standards by curtailing its
engagement.

"More for more" in practice · Reflecting the decisive steps made in the democratic transition process in Tunisia the EU has doubled its financial assistance from EUR 80 million in 2010 to EUR 160 million in 2011 and provided technical assistance to help organise the Constituent Assembly elections. · Negotiations for a DCFTA were launched with the Republic of Moldova, Georgia, and are about to be launched with Armenia. Negotiating directives for DCFTAs with Egypt, Jordan, Morocco and Tunisia were adopted by the Council. These agreements will improve economic integration of partners in the EU internal market. · To respond to the deterioration of the situation in Syria the EU has decided to suspend financial assistance to the government and to impose sanctions. The High Representative and the Commission have actively supported mediation efforts by the United Nations and the Arab League, while the Commission is providing humanitarian assistance. · The EU has recently concluded a mobility partnership with Armenia and plans to conclude mobility partnerships with Morocco and Tunisia. · To further support partner countries reform efforts EUR 670 million are being made available to supplement existing country programmes. They are being channelled through two “umbrella” programmes (SPRING for the South and EaPIC for the East)[4] and allocated to those partner countries making most progress towards sustainable democracy. Allocations have already been announced for Algeria, Jordan, Morocco and Tunisia. · The Association Agreement with Ukraine has been initialled. Ukraine’s performance, notably in relation to respect for common values and the rule of law, will be of crucial importance for the speed of its political association and economic integration with the EU, including in the context of the conclusion of the Agreement and its subsequent implementation. In this context, trials and verdicts against opposition leaders raise serious concerns about the respect for fair trial rules and the independence of the judiciary. · The resumption of official 5+2 talks on the settlement of the Transnistrian conflict in the Republic of Moldova has been accompanied by intensified co-operation with the Government of the Republic of Moldova, the launch of large-scale EU confidence building measures and a step-by-step review of EU sanctions against Transnistria, while recognising the constructive attitude of its new leadership. · To reflect the EU's grave concern about the continued lack of respect for human rights, democracy and rule of law in Belarus, the EU put forward a series of restrictive measures and redirected a major part of its assistance towards the civil society. It has also launched a European Dialogue on Modernisation with the opposition and civil society.

The EU is also engaged in intense co-operation
with partners on a broad range of sectoral issues, based on EU norms and
standards. Reforms need to be pursued with increased vigour by partners because
they underpin inclusive socio-economic growth, job creation (especially for the
youth), poverty reduction and increased foreign investment. Targeted financial
support, institutional capacity building, enhanced sector policy dialogue and
the gradual opening up of programmes and agencies allows the EU and partner
countries to take full account of the complexities of this process, which
requires difficult choices and accompanying measures to protect vulnerable
citizens.

A partnership with Societies

The EU
increasingly reached out to civil society in all neighbouring countries including
those subject to targeted EU sanctions and where financial assistance is
suspended. This engagement has generally been welcomed by partner countries as
well as local and international civil society organisations. The EU intends to
broaden this engagement, in particular through the engagement of civil society
organisations in the preparation and monitoring of action plans or similar
documents.

Concrete steps towards establishing a partnership with civil society · A Civil Society Facility covering the entire neighbourhood was launched in September 2011 with an initial budget of EUR 26 million for 2011 and similar amounts planned for 2012 and 2013. · The Eastern Partnership human rights dialogues were complemented by joint civil society seminars and the Eastern Partnership Civil Society Forum has become a permanent member of all four multi-lateral platforms. · In the Southern Neighbourhood the EU has increased its support to the Anna Lindh Foundation in its efforts to mobilise and revitalise civil society in the region. · The Council of Europe has stepped up its involvement in the neighbourhood region. After establishing a first facility for supporting the Council's work in the Eastern Neighbourhood, the Commission has decided on a EUR 4.8 million facility dedicated to the Council of Europe's activities with the southern Mediterranean countries. · To promote freedom of expression, the EU has launched a “no disconnect strategy” to help civil society organisations and individual citizens overcome arbitrary disruptions of access to electronic communication technology. · In December 2011, the main principles for the establishment of the European Endowment for Democracy were agreed by the Council. The EED will have an initial, although not exclusive, focus on the EU Neighbourhood. · In parallel with the suspension or redirection of assistance, the EU has increased its financial support for civil society organisations in countries where continued human rights violations persist. · The EU has also offered to negotiate visa facilitation and readmission agreements with Belarus to facilitate people-to-people contacts. The Belarus authorities have so far failed to respond to the EU’s offer. The EU Member States strive to make optimal use of the flexibilities offered by the Visa Code, to waive and reduce visa fees for certain categories of Belarusian citizens or in individual cases. · The EU is increasing opportunities for the modernisation of higher education systems, academic mobility and youth exchanges. In 2012 and 2013 the funding for the participation of neighbouring countries in its higher education cooperation programmes will be doubled, new opportunities for youth exchanges and networking for youth workers will be provided. Also several regional dialogues on education, youth and culture policies have been launched or are about to be launched.

Mutual accountability

As part of an overall “more for more” approach,
the EU in consultation with partner countries has been adapting its policy tools
to promote mutual accountability and make policy dialogue more interactive and
frank.

Tools to strengthen mutual accountability · Increasingly frequent formal and informal contacts and dialogues at political level provide an opportunity for enhanced political steering of partner countries reform and the related EU support. · From this year, the Country Progress Reports will become increasingly forthright in assessing progress, in particular towards deep and sustainable democracy. They will represent a tool for applying the incentive-based approach and establishing a stronger link with all relevant aspects of the EU response, including financial assistance. They will include country specific recommendations which partner countries are invited to address. · There have been increased contacts at all levels from senior officials to stakeholders and civil society organizations, allowing representatives of partner countries to express their views on the implementation of the new approach and to provide a feedback on the EU's delivery on its commitments. These meetings will be made more regular.

1.           Developments
in neighbouring countries

1.1         A year of rapid, if
uneven, progress

After years of relative stagnation,
democracy is increasingly taking root in the neighbourhood spurred by last
year's democratic revolutions in North Africa. In a number of countries,
meaningful elections have been held with the participation of a diversity of
political parties. The general trend points towards more democracy, a more
accountable form of governance and increased respect for human rights and
fundamental freedoms. However, there are areas, essential to ensure the
sustainability of ongoing political reforms, where progress has been more
limited. In some countries progress has stalled or there are signs of
regression.

Structural reform, where pursued, has
helped to reduce poverty and attract foreign investment while important social
challenges remain. Continued approximation to EU norms and standards has helped
to contribute to strengthened trade links, notwithstanding the unfavourable
economic climate. Increasingly intense sector co-operation with the EU is
helping to address transport and energy bottlenecks and tackle environmental
and climate challenges.

1.2         Building sustainable
democracies

A process of constitutional
reform is underway in Egypt, Jordan, Morocco and Tunisia aimed
at promoting governments’ accountability to democratically elected parliaments,
strengthening the independence of the judiciary and removing the other
obstacles to a wider participation in political life. Tunisia has chosen
its Constitutional Assembly with the first democratic and credible elections
since the country’s independence. Similarly Egypt and Morocco
have elected their parliaments in a generally free and transparent manner.

Overall there is more respect for freedom
of expression, association and assembly than in the past. The Republic
of Moldova and now Tunisia have satisfactory legal frameworks for
the protection of freedom of assembly and association. But much remains to be
done across the neighbourhood to ensure that this freedom is fully guaranteed
in law and in practice and to secure the necessary space for civil society
to play its crucial role. In Egypt, there is some opening up of the
political space, although freedom of expression, civil society activity and
peaceful demonstrations have often been countered by repression. In Azerbaijan
civil liberties continue to be severely curtailed.

Increasingly, attention is focused on the
problem of corruption, even if bold political statements are not always
followed by determined action. When this does happen, as is the case in Georgia,
it contributes to the respect of the rule of law and helps to establish a
business climate that encourages entrepreneurs and attracts foreign
investments.

Throughout the neighbourhood more efforts
are needed to ensure respect of the rule of law, overseen by an efficient,
impartial and independent judiciary, with guarantees for equal access to
justice and respect for due process and fair trial standards as well as
to pursue the reform of the security sector. Although the process of
democratic transition and constitutional reform is underway in a number of
neighbouring countries, it has not yet translated into speedier, more
transparent and fairer justice and a greater sense of security. In Egypt,
civilians continue to be tried before military courts.

Building sustainable democracy also means
ensuring gender equality and increasing the participation of women in
political and economic life. In some countries, legislative provisions enacted with
the aim of ensuring a more balanced composition of parliaments have encountered
resistance in practice and therefore have not had the desired effect. Local
and regional authorities have a key role to play in narrowing the gap
between the population and institutions, promoting a culture of political
participation at local level and ensuring that policy decisions take local
needs into account.

There has been progress too in the respect
for other human rights. Tunisia has ratified a number of optional
protocols to key human rights conventions. Morocco and Tunisia
have ratified the optional protocol to the UN Convention against Torture. There
is increased respect for minority rights in Armenia and Morocco.
However, torture and degrading and inhumane treatment continue to be
perpetrated by security forces in a number of countries. Similarly,
discrimination on grounds of religion or belief, ethnic origin and sexual
orientation remains widespread and trafficking in human beings continues to be
a serious problem in many countries.

The situation in Belarus has
severely deteriorated over the last year following the December 2010 crackdown
on the opposition and civil society in the wake of the presidential elections.
The EU has had to re-instate and strengthen sanctions. The EU remains seriously
concerned about the situation in Belarus, where the authorities have refused
to release and rehabilitate all political prisoners and to end oppression of
the opposition, media and civil society. The Belarus authorities have so far
failed to respond to the EU’s offer to negotiate visa facilitation and
readmission agreements, thus depriving their citizens of the benefits of
facilitated travel to the EU. Conditions are not in place that permit a full
participation of Belarus in the ENP. It participates only in the multilateral
dimension of Eastern Partnership. The EU remains determined to strengthen its
partnership with the people of Belarus and provide increased support to civil
society organisations.

Algeria has initiated
a process of political reforms that has led to the adoption of several new laws
at the beginning of 2012, on the electoral code, participation of women in the
elected assemblies, associations, media, political parties, decentralisation
and incompatibility between political mandates. A revision of the Constitution
is expected to take place after the 10 May legislative elections. In the
context of the new focus of the ENP on a tailored and differentiated approach, Algeria
has decided to join the ENP, and discussions on an ENP Action Plan have
already started.

The situation in Libya is gradually
stabilising after the end of the civil war. The EU is supporting the transition
process and regularly reviews issues related to respect for human rights with
the authorities. The EU is ready to engage in negotiations with the new Libyan
Administration for a contractual agreement and, in that context, discuss
Libya’s possible participation in the ENP, based on a shared commitment to the
values of democracy, the rule of law and respect of human rights.

1.3         Conflicts

Finding peaceful settlements to protracted
conflicts remains a key challenge throughout the neighbourhood. The main
responsibility for this lies with the conflicting parties which must enhance
their efforts to find agreements in a genuine spirit of compromise. Without
that, continued international mediation efforts in established formats cannot
be expected to lead to a breakthrough. The full realisation of the potential of
the ENP will require more credible and sustained efforts on the part of
concerned neighbouring countries to make progress towards conflict resolution.
Conversely, the EU stands ready to provide necessary support for the
implementation of settlements once they have been agreed.

In the case of Syria, the EU has
strongly condemned the systematic human rights violations by the Syrian regime.
The EU has called on President Assad to step aside and allow a peaceful and
democratic transition. Together with EU Member States at
the United Nations Security Council, the EU spared no effort to ensure that the
international community speaks with one voice in full support of the UN-League
of Arab States Special Envoy Kofi Annan's plan. The High Representative and
EEAS participated in the Friends of Syria meetings. The High Representative convened regularly the Crisis Platform bringing
together all relevant services in the EEAS and the Commission (sanctions,
humanitarian assistance, development cooperation, liaison with Delegations and
support to the UN). In response to the
crisis, the EU suspended all types of cooperation, imposed restrictive measures
and kept them under constant review. The EU has only maintained aid that
benefits the Syrian population, students, human rights defenders and the
opposition. The EU put forward a contribution of EUR 10 million in humanitarian
aid to Syria and affected neighbouring countries. The EU has also worked closely with Syria's
neighbours and has proposed a Commission Special Measure to reserve EUR 23 million
of ENPI funds to support specifically Syrian civil society as well as refugees
and affected populations in neighbouring countries.

The EU Delegation in Damascus remained open
to support the Syrian people and help coordinate the EU response to the crisis.
The EU Delegation hosts several diplomats from Member States that decided to
suspend the activity of their own Embassies.

In 2011, the EU has acted with a measure of success to reinvigorate the Quartet
and has continued its efforts to encourage both Israel and the Palestinian
Authority to return to the negotiating table. In its statement on 23
September, the Quartet called for the resumption of direct bilateral
negotiations without delay or preconditions, the aim being to reach an
agreement within a timeframe agreed by the parties but not later than the end
of 2012. It also called upon the parties to refrain from provocative actions
and reiterated the obligations in the Roadmap.

In the Eastern
Neighbourhood, thanks to the joint efforts of the 5+2
members, including the EU, formal talks on settling the Transnistria conflict
resumed in a positive atmosphere. A number of high level meetings took place
and steps were taken to intensify confidence-building measures (e.g.
possibility for Transnistrian companies to register in the Republic of
Moldova and benefit from the autonomous trade preferences, registration fee
waiver for visits to Transnistria, creation of a working group to discuss
further confidence building measures, discussions among customs and railways
authorities to facilitate export of goods. Talks between the Presidents of Armenia
and Azerbaijan on Nagorno-Karabkah, supported by the OSCE Minsk Group as
mediator, did not lead to a breakthrough. The Geneva International discussions
on Abkhazia and South Ossetia under joint EU-UN-OSCE chairmanship were pursued,
notably on the issue of the non-use of force.

1.4.        Inclusive economic
development and trade

Growth was
steady in most of the EU’s Eastern Neighbours which continued their recovery
from the 2009 crisis. This allowed countries such as Armenia, Azerbaijan
and the Republic of Moldova to make further progress on reducing poverty
and unemployment. The Republic of Moldova and Georgia
have also pursued structural reforms with determination while progress
in Ukraine has stalled and the country programme with the International
Monetary Fund (IMF) is off track.

In the EU’s
Southern Neighbourhood growth was slower particularly in those countries where
democratic transition was accompanied by social unrest, strikes and political
instability or that suffered from conflicts in neighbouring countries. To
address growing unemployment and prevent further internal unrest, many
countries have loosened fiscal policy, increased government spending and, as a
result, the budget deficit. This trend needs to be redressed to maintain
macroeconomic stability and avoid potential problems with debt financing. In Israel,
protests highlighted widespread concerns about social justice and growing
inequality in the distribution of wealth. Across the entire neighbourhood, as
within the EU, the focus must be on making economic development more inclusive
by promoting internal cohesion and addressing regional and social
imbalances.

2.           EU
cooperation with Partners

2.1         A year of delivery

Most partner countries have welcomed the
new emphasis on increased differentiation and mutual accountability, indicating
their readiness to pursue political and economic reform with increased
determination and to engage more deeply with the EU. This is already showing
results.

In the East, the Communication of last May
gave additional momentum to the development of the Eastern Partnership. The
Warsaw Eastern Partnership Summit took stock of the results achieved and
confirmed the political commitments of the EU and its Eastern Neighbours to
move towards deeper political association and further economic integration and
acknowledged the European aspirations and the European choice of some partners.
It agreed to prepare an “Eastern Partnership Roadmap” which is adopted at the
same time as this communication[5]
and provides a practical guide to monitoring implementation until the next summit
due to be held in autumn 2013.

Three years after its launch, the Eastern
Partnership has registered substantial progress. The EU and the Eastern partners
have intensified their dialogue on Human Rights. Negotiations on Association Agreements
have been launched with all partners (except Belarus) and have been completed
with Ukraine. Negotiations on Deep and Comprehensive Free Trade Areas (DCFTA)
are progressing. The goal of achieving visa free travel in due course and the
other elements of the Eastern Partnership cooperation agenda are being taken
forward successfully.

In the Southern Neighbourhood, the EU has
been very active in responding to the historic changes. It has engaged with
regional organisations (in particular the League of Arab States) in the search
of solutions to conflicts. The High Representative and the Commission have
welcomed the outcome of the democratic elections and affirmed their readiness
to work with the new governments. The EU has provided immediate humanitarian
assistance where needed, reoriented its financial assistance, increased it for
the countries most in need while cutting it in other cases. It has also offered
new cooperation and dialogue on trade and mobility. It has become a recognised
and trusted partner for the preparation, organisation and monitoring of
elections. It has substantially increased its engagements with, and support to,
civil society organisations throughout the region.

Following a proposal from the High
Representative, the Council appointed a Special Representative for the Southern
Mediterranean Region to develop dialogue with transition countries, step up the
mobilisation and coordination of the EU and the Member States and ensure
co-ordination with the International Financial Institutions and the private
sector. This has already brought tangible results to the region. The first Task
Force took place in Tunisia in September 2011 and announced a very
substantial international support package, covering both grants and loans, to
which the Commission contributed with EUR 400 million in grants for the period
2011-2013. The second Task Force met in Jordan in February 2012 to
encourage and support the process of political and economic reforms in Jordan.
Political parties and civil society organisations contributed to the Task
Force. A substantial international financial package was also announced on this
occasion. The Task Forces are not one-off exercises but a process that
includes follow up meetings at different levels to assess the progress and
implementation. The joint bodies established under the Association Agreement
monitor the implementation of the Task Force's recommendations. Following the
Presidential elections and transfer to civilian rule, a Task Force will be
organized together with Egypt in 2012.

2.2         Building sustainable
democracies

The renewed EU emphasis on building deep
democracies[6]
and promoting
human rights and fundamental freedoms has been accompanied by determined action.

To support democratic transition, the
EU has stepped up co-operation with the Council of Europe and sought
synergies with the Council of Europe Parliamentary Assembly offering “Partner
for Democracy Status” to Parliaments of Southern Mediterranean
countries. This Status was granted to Morocco and the Palestinian
Authority. The EU has also developed a programme with the Council of
Europe to support the reform process in Eastern
Partnership countries covering judicial reform and respect for human rights in
the delivery of criminal justice, compliance with European electoral standards,
fight against corruption and serious forms of cybercrime. This was later complemented by a similar programme with the EU’s
Southern Neighbours, focusing on constitutional reform, judicial reform
and electoral systems.

The EU has provided technical assistance to
Tunisian election authorities to help them prepare for their first
democratic elections and has supported Tunisian civil society in the run up
to those elections. It has deployed a fully-fledged Election Observation
Mission (EOM) in Tunisia and sent election experts to Morocco. Following
the invitation by Algeria, it deployed a fully-fledged EOM to observe
the 10 May parliamentary elections. It has provided technical assistance to the
Egyptian High Electoral Commission and supported voter education and domestic
observers through Civil Society Organisations. Libya has invited the EU
to observe the forthcoming elections for a constitutional assembly.

2.3         Fostering inclusive
economic development, trade and sector co-operation

Economic and social development

In a context of serious economic and
financial difficulties in the Euro Area and in most of the Arab partner countries
(also reflecting the effects of the Arab Spring), macro-economic dialogues
have proved to be particularly useful for both the EU and its partners. They
have allowed a frank and in-depth exchange of information and views to take
place on the economic challenges faced and the policy responses being taken by
the two parties, highlighting the need for structural reforms.

To promote inclusive
economic development, the EU has acted to increase
its financial assistance and the lending capacity of European Financial
Institutions (see Section 2.4) and has re-launched policy dialogue on
employment and social issues.

Trade

DCFTA negotiations
were completed with Ukraine and launched with the Republic of Moldova
and Georgia and are about to be launched with Armenia.
Following a scoping exercise to be conducted in 2012 on the partners’ capacity
to approximate to the EU acquis, negotiations with Jordan, Morocco and
Tunisia could be opened before the end of the year on the basis of the
negotiating directives adopted by the Council in December. The Agricultural and
Fisheries Product agreement with Morocco will enter into force in July and
rapid progress on other ongoing negotiations, such as the equivalent agreement
with Tunisia, is also a priority as outlined at the March European Council.

The regional Convention on pan-Euro-Mediterranean
Rules of Origin was opened for signature in June 2011 and signed by Jordan and
Morocco. The other Southern Mediterranean partners that have not yet signed
the Convention should rapidly complete the procedures for the signature and the
ratification. Further negotiations on Agreements for
Conformity Assessment and Acceptance of industrial products (ACAAs)
should be launched in 2012 to open up markets for industrial products with Tunisia
and later with Egypt, Jordan and Morocco.

Sector Co-operation

Regulatory
convergence towards the EU and other markets applying EU rules is a key to
facilitate trade and economic development. It is supported, in the framework of
the Eastern Partnership, by Comprehensive Institution Building
programmes and other relevant assistance measures. The preparatory process for
the DCFTAs negotiations with Armenia, Georgia and the Republic of
Moldova as well as the finalisation of such negotiations with Ukraine,
have boosted the legislative work, particularly in the areas of sanitary and
phytosanitary standards and technical regulations. This has also improved
domestic food and product safety. Public finance management is one area where
improvements are still needed.

Market
integration with the EU and regulatory convergence are also drivers of much
needed sector reforms. Such reforms are generally of a longer-term
nature and require substantial investments. In all areas, co-operation between
the EU and partner countries has intensified as the joint staff working
documents accompanying this communication highlight. The EU has, for example, launched a “no disconnect
strategy” to help civil society organisations
and individual citizens circumvent arbitrary disruptions of access to
electronic communications technologies. The EU also launched the European
Neighbourhood Programme for Agriculture and Rural Development which through
investment support and technical assistance permit the modernisation of the
agricultural production in the partner countries, create opportunities at local
level and preparing the partner country for more effective operation in the EU
market.

The Commission is also keen to develop
sector dialogue and cooperation in the regional frameworks of the Eastern
Partnership and Union for the Mediterranean. These dialogues will help cement
common understanding on sectoral priorities and will contribute to the
emergence of concrete projects and initiatives.

Informal
Eastern Partnership Dialogues are being put in place as another means of
strengthening the link between the bilateral and multilateral processes, of
boosting the sense of joint ownership of the Eastern Partnership and of
fostering a regional dynamic. These biannual informal multilateral dialogues
between the Foreign Ministers of the partner countries and the EU’s High
Representative and Commissioner for the ENP will provide the opportunity for
ministerial-level informal discussions on developments in partner countries,
and progress on reform processes, and allow for monitoring the implementation
of the Eastern Partnership Roadmap. This framework will also provide for
informal dialogue sessions between the relevant sectoral Ministers and EU
Commissioners to strengthen multilateral sector cooperation between
the EU and the Eastern Neighbourhood partners.

In the context
of the Union for the Mediterranean (UfM), and following the Council's decision
to transfer the northern co-presidency to the EU, the Commission is keen to
restart the sectoral dialogues at ministerial level. Discussions with partners
are ongoing to agree on a number of meetings on trade, transport, energy and
environment and other sectoral policies. These sectoral ministerial meetings
would identify joint objectives for regional cooperation and would also help
identify possible concrete projects to be carried out in the context of the UfM.

As part of its
new response and renewed engagement towards its neighbourhood, the EU has
further enhanced its support for the participation of ENP partner countries
in EU programmes and agencies. The Protocols allowing the
participation of the Republic of Moldova and Ukraine in EU programmes
have entered into force. Following the positive vote in the European
Parliament, the protocol with Morocco will enter into force shortly. The
negotiations on a Protocol with Jordan have been launched. A project is
being prepared to support EU Agencies’ preparatory measures with
a view to facilitating participation in the work of the agencies. Partner
countries can use EU funding to co-finance their participation in EU programmes.

Mobility

Headway is being made towards the goal of
visa liberalisation with the EU’s Eastern Neighbourhood. Mobility Partnerships
exist with Armenia, Georgia and the Republic of Moldova.
The Republic of Moldova and Ukraine are implementing Visa
Liberalisation Action Plans. A visa dialogue with Georgia could be
launched before the summer. Following the successful implementation of visa
facilitation and readmission agreements with Georgia, the
Republic of Moldova and Ukraine, negotiations on similar
agreements have been also launched with Armenia and Azerbaijan.

In the EU’s Southern Neighbourhood, the EU
has offered to engage in partnership dialogues on migration, mobility and
security with Egypt, Morocco and Tunisia. Such dialogues
cover regular and irregular migration, trafficking in human beings, readmission,
visa issues, asylum and international protection. Substantial progress has been
achieved with Morocco and Tunisia with which the dialogues were
launched in October 2011, and joint declarations opening the way to mobility
partnerships should be signed in the coming months. Egypt has so far
declined to enter into concrete discussions. The High Representative and the
Commission propose to initiate a dialogue on migration, mobility and security
with Jordan.

2.4         Financial Support

To provide financial backing for partner
countries’ reform efforts, the EU has acted at two levels.

First it has sought to strengthen the link
between the new policy approach and existing financial assistance programmes. In
the Southern Neighbourhood this has led to the re-orientation of € 600 million
of existing funding towards the objectives laid down in the joint Communication
"A Partnership for Democracy and Shared Prosperity with the Southern
Mediterranean[7]".
As a result new institution building programmes have been launched in areas such
as judicial reform and the fight against corruption.

Second it has worked towards making
available additional financial resources from the EU budget. The joint Communication
“A new response to a changing Neighbourhood” of May 2011 had proposed to devote
up to EUR 1.24 billion of additional resources to support the implementation of
the new approach. Of this amount, EUR one billion is being made
available to partner countries. The High Representative and the Commission
regret that no consensus has yet emerged in the Council in favour of the
Commission proposal to allow the re-use of EIB reflows. This will lead to a
shortfall of at least EUR 240 million over the original proposal.

The largest part of these additional
resources (EUR 670 million) will be channelled through two umbrella programmes SPRING
in the Southern Mediterranean with a budget of EUR 540 million for 2011-13; and
EaPIC in the Eastern Neighbourhood with a budget of EUR 130 million for the
period 2012-13. Both programmes will focus on promoting democratic
transformation and institution-building and supporting sustainable and
inclusive growth. The rest of the additional funding has mostly been allocated
to mobility programmes (Tempus, Erasmus Mundus, etc.) and support to civil
society organisations and non state actors.

The extension of the European Investment
Bank (EIB) mandate in October opens the way for additional loans of EUR 1.15
billion to partner countries[8]
and for up to EUR one billion in loans related to climate change. Additional voluntary
contributions from Member States to the trust fund established under the
Facility for Euro-Mediterranean investment and Partnership (FEMIP) will allow
EIB to re-enforce risk capital operations in the Southern Neighbourhood.

The area of operations of the European
Bank for Reconstruction and Development (EBRD) is being extended to allow
activities in Egypt, Jordan, Morocco and Tunisia. Moreover up to EUR
100 million, partly coming from the EU budget, have been allocated to support
the identification and preparation of projects. Further resources (up to EUR one
billion) will be mobilised by the EBRD through its Special Funds as soon as enough shareholders have ratified the necessary
amendments of the Agreement Establishing the EBRD[9]. Ongoing assistance under the European
Neighbourhood and Partnership Instrument has also been reoriented to promote
SME development and support job creation initiatives in Algeria, Egypt,
Jordan and Tunisia in particular.

At the end of 2011, total Neighbourhood
Investment Facility (NIF) allocations reached EUR 400 million (of which EUR
174 million for the East and EUR 226 million for the South), leveraging
projects with a total cost of EUR 13.6 billion (of which EUR 4.2 billion for
the East and EUR 9.4 billion for the South). The substantial increase in grant
funding available under the NIF for the period 2011-13 (EUR 450 million) should
ensure, through leveraging, that increased lending resources rapidly translate
into investments in infrastructure (environment and climate change,
interconnections with partner countries) and SMEs, thus helping to address
unemployment throughout the neighbourhood.

The EU aims to strengthen its support for
risk capital operations in the Southern Neighbourhood through the Facility of
Euro-Mediterranean Investment and Partnership (FEMIP) and is developing further options to support risk capital operations and
guarantee schemes in the Eastern Neighbourhood with the EIB, the EBRD and other
European financial institutions.

In
December, the Commission adopted the legislative proposal for a new financial
instrument, the European Neighbourhood Instrument (ENI) that is designed
to replace the current European Neighbourhood and Partnership Instrument (ENPI)
as of 2014. Compared with the current instrument the ENI will further
strengthen the link between policy and assistance and provide
for a higher level of differentiation in cooperation with partner countries,
reflecting their commitment to universal values, progress in deep
democratisation and jointly agreed objectives. It will focus co-operation activities on fewer key policy objectives
thus increasing impact. It will reduce the complexity and length of the
programming process and simplify implementation
provisions, including those relating to cross border co-operation at the EU’s
external borders. Its proposed financial envelope of EUR 18.2 billion for seven
years represents an increase of 22% in real terms in relation to the current
financial perspective. The ENI will contribute to EU
objective of increasing the climate related proportion of the Union budget to
at least 20% in accordance with the intent stated in the Commission June 2011 Communication
on the 2014 – 2020 Multiannual Financial Framework[10].

2.5         A more joined-up approach
with other EU institutions

The
review of the ENP in 2011 has led to a large debate among all EU institutions
and a broad consensus on the need for a stronger EU engagement in the
neighbourhood. In particular, the European Parliament has adopted an important
report on the ENP in December. There has been a noticeable increase in the
frequency of interactions between the European Parliament, the Commission and
the High Representative on the ENP in relations with individual partners.

In
addition, the European Parliament has increased its contacts and cooperation
with ENP partners' elected assemblies, in an effort to improve political
dialogue and strengthen their capacity to hold governments accountable. The
Euronest and the UfM Parliamentary Assembly have developed their activities.
Also, both the European Economic and Social Committee and the Committee of the
Regions (in particular through the ARLEM and CORLEAP assemblies) have increased
their involvement.

2.6         A joined-up approach with
other donor countries and international institutions

The EU is co-operating closely with other
donor countries and international institutions to respond to humanitarian crises,
to promote democratic transition and to foster economic development in partner
countries.

Throughout the Libyan crisis the EU has
been at the forefront of the international humanitarian response acting in
close co-ordination with other donors and international organisations so as to
ensure that needs were promptly identified and aid delivered rapidly and
effectively.

The EU has decisively contributed to
establishing the G-8 Deauville Partnership initiative which coordinates
international efforts to support democratic transition in the Southern
Mediterranean and it co-operates closely with the international organisations that
during the G8 Finance Ministers Meeting in Marseille in September have pledged
support to the Deauville Partnership. Through its Macro-Financial Assistance
instrument the EU also co-operates closely with the International Monetary Fund
and other international organisations in helping the concerned partner
countries[11]
addressing macro-economic imbalances and pursuing growth oriented structural
reform.

Countries such as Russia and Turkey have
the potential to make an important contribution to regional stability.
Switzerland has participated at the highest level in the meeting of the EU
Tunisia Task Force.

Moreover, in the context of the Eastern Partnership, an Information and Co-ordination Group
including non EU countries and interested International Financial Institutions
promotes donor co-ordination and, more generally, fosters the development of the
Eastern Partnership.

3.           Looking
to the Future

The year 2011 has been one of change in the
EU neighbourhood. Although the first signs are encouraging, sustained efforts are
needed to consolidate this progress. Many societies in
our partner countries are undergoing far-reaching change. Understanding and
respecting the pace of each society's own reforms process is fundamental. It
requires constant dialogue, careful attention and close monitoring by the EU. There are a number of issues on which partner countries need to step
up their reform efforts and there are aspects of its offer where the EU needs
to deliver more promptly.

3.1.        Challenges ahead

Sustainable democracy

Democratic transformation in a number of
southern neighbours is bringing new political parties to the centre of the
political scene, in particular, but not exclusively, parties that have Islamic
roots. The EU needs, and is open to developing its dialogue with these parties
as well as with all democratically elected governments. Existing
tools and also the European Endowment for Democracy, once it is established,
could foster dialogue and promote the exchange of experiences with EU political
parties.

Until the next Summit, Eastern European partners
shall continue to implement the broad and substantive agenda of the Eastern
Partnership as set out in the Roadmap. In this respect, consolidating
democracy remains essential, with the forthcoming parliamentary elections
in Armenia, Georgia and Ukraine as key milestones for these three
countries. In the southern neighbourhood, the forthcoming elections in Algeria,
Jordan, Libya, and Tunisia will be also be very important
to anchor more deeply the democratisation process.

Freedom of expression, association and
assembly needs to be fully guaranteed in law and in practice, and a strong
culture of respect for human rights must be established across the board in
particular the protection against all forms of discrimination in politics as
well as day-to-day life. To that end partner countries are invited to address
the specific recommendations made to them on these issues in the Country
Progress Reports accompanying this Communication. This will secure a space
where civil society can play its crucial role as an agent for
democratisation ensuring the sustainability and inclusiveness in the reform
process. As the Civil Society Facility becomes fully operational the EU will be
in a position to provide enhanced support. In the southern neighbourhood, the
Anna Lindh Foundation should contribute to advancing the inter-cultural
dialogue among Civil Society Organisations by identifying actors for change and
connecting organisations which do not normally interact thus promoting a dialogue
with EU organisations.

Women have
been key players in the Arab Spring, and they should not lose out in the subsequent
transformations. The EU will continue to step up its efforts to support women’s
rights across the region, ensure that gender equality is mainstreamed into all
relevant co-operation activities and promote effective action against
trafficking across the neighbourhood.

Throughout the neighbourhood more efforts
are needed to build an efficient and independent judiciary, so as to
ensure citizens’ right to a fair trial ensuring legal certainty
for business and investors through impartial judicial decisions. Security
sector reform is also central to sustainable democratisation. To
support their efforts the EU, using the additional resources that became
available following last year’s policy review, is ready to step up its
technical and financial support in the context of national comprehensive
strategies.

Inclusive economic development and trade

Unemployment, social exclusion,
inequality and poverty are at the heart of people's
concerns for the future. They are among the root causes of instability and
unrest and need to be addressed to make democratisation sustainable. They
require partner countries to reform and adopt an integrated approach with a mix
of economic, fiscal, employment, social and education policies. The EU is ready to support such reforms through targeted measures
aimed at promoting social cohesion and employment (in particular of young
people).

To promote EU investments in partner
countries the EU has included investment protection in the scope of the
DCFTAs to be negotiated with Egypt, Jordan, Morocco and Tunisia.
It intends to negotiate similar provisions gradually with other neighbouring
countries either as separate agreements or in the context of future DCFTAs. In
partnership with the OECD and the World Bank, the Commission will launch next
June a scheme for lowering the insurance costs of large scale investment in the
Southern Mediterranean region, in order to increase foreign direct investments
in the region. Work has also progressed in preparing the ground for an EU wide guarantee
mechanism providing coverage against political risk to investments made by EU
SMEs in partner countries SMEs. This scheme, which will cover the entire
neighbourhood, should be launched by the end of the year. Finally,
consultations have confirmed the advisability of extending the geographical
remit of the European Investment Fund (EIF) to explicitly cover neighbouring
countries. The Commission intends to propose, later this year, that the EIF
Board amends the EIF statute to that effect. This will, inter alia, facilitate
the participation of partner countries in future EU programmes such as the
Programme for Competitiveness, Enterprise and SMEs (COSME).

The regulatory convergence implied
by the DCFTAs in fields as diverse as sanitary and phytosanitary issues,
technical regulations, customs procedures, public procurement and competition
will require very substantial efforts by the partners to reform their
legislation and develop the means to implement and enforce it. The fight against corruption and fraud and strengthening public finance
management are part of these efforts. The EU is
committed to increasing its support for these efforts by providing further
institution building assistance.

Mobility

The mobility agenda needs to be
taken forward. For EU Eastern neighbours this means the conclusion of visa facilitation
and readmission agreements with Armenia, Azerbaijan and Belarus, as
well as the launching of visa dialogues first with Georgia, and then
with Armenia and Azerbaijan. Ukraine and the Republic
of Moldova will wish to progress towards the full implementation of their
Visa Liberalisation Action Plans. Azerbaijan expressed an interest to
negotiate a mobility partnership along the lines of those concluded with other Eastern
neighbours. For EU Southern neighbours this means establishing mobility
partnerships with Morocco and Tunisia and initiating mobility
dialogues with Egypt and Jordan.

In order to meet the objectives in the area
of education, to promote business contacts, cultural exchanges and
people-to-people contacts, the High Representative and the Commission invite the
EU Member States to make more systematic use of the possibilities provided by
the European Visa Code. In particular multi-entry visas should be
provided to people that would be able to justify the need of travelling
regularly and in good faith to the EU for business or for family links, as well
as, representatives of civil society organisations and students participating
in EU funded programmes. The visa fee should be waived for young people under the
age of 25 participating in seminars, conferences, sports, cultural and
educational events organised by non-profit organizations, and for children under
the age of 12.

Sector Co-operation

The
EU’s values of respect of human rights, democracy and the rule of law underpin
the EU and define cooperation among its Member States; they are also reflected
in the EU's laws, norms and standards. Taking over EU norms and standards
through sector cooperation will respond to the partners’ wish to come closer to
the EU, and, crucially, it will promote such values. Sector reform and
cooperation thus contributes to better political and economic governance, political
and administrative transparency and accountability, socio-economic development,
conflict prevention and resolution, state building, and civil society
involvement.

In many sectors, notably transport and
energy, the Commission is developing a special focus on the ENP region and
intends to develop this approach more widely[12]. In this spirit and without attempting to be comprehensive this joint
Communication highlights in the following paragraphs a number of sector
issues where the EU and partner countries could co-operate more closely
with a view of achieving concrete results in the next few years.

·
On energy the Commission will continue to
support the development of the Southern Gas Corridor. It will also continue to
work with the Eastern European neighbours on security of energy transit, based
on transparent operation of the network. Furthermore, it will consult Southern
Mediterranean partners in 2012 to establish energy partnerships as a first step
towards regional electricity and renewable energy market integration, with the
long-term perspective of establishing an EU-Southern Mediterranean Energy
Community.

· In the area of industrial and enterprise policy, the
Euro-Mediterranean Charter for Enterprise should be upgraded into a
Euro-Mediterranean Small Business Act and EU cross-sector and sector-specific
networks and action should be extended to Southern Mediterranean partners.
Information and best practices on sustainable tourism should be exchanged.

· In the area of air transport, negotiations on the conclusion
of comprehensive air services agreements should be accelerated with Ukraine,
re-launched with Tunisia and initiated with Azerbaijan in 2012.

· The EU will continue to promote modern customs
practices and procedures towards maximum trade facilitation, including through the implementation of the Strategic
Frameworks for Customs Cooperation with the Eastern partners and the ongoing
and future DCFTA negotiations.

· The EU will support partner countries’ capacities to tackle environmental
degradation and promote sustainable use of natural resources, including in the
areas of water, industrial pollution, hazardous pesticides, air quality, waste
management, nature conservation and forest management, and to strengthen
environmental information systems and governance. The EU will assist partner
countries to better integrate environmental considerations into other sector
policies to promote a transition to a greener economy, including through more
sustainable consumption and production. The EU will also strengthen cooperation
with ENP partners on the 2012 UN World Conference on Sustainable Development.

· The design and implementation of ambitious climate policies is a key challenge on which the EU is ready to closely co-operate
with partner countries. The EU will support partners’ transition towards low
carbon development and climate resilience through capacity building,
information sharing and investments. This will help partners to implement the
Cancun and Durban agreements and in particular devise low emission development
strategies, enhance their climate resilience and provide updated information on
target or actions that they will implement.

· The Information Society policy within the ENP aims at
securing a fair, modern, open and transparent market for telecommunications, an
open and vibrant use of the internet for all and a diverse media environment. Ensuring
the security, stability and resilience of the internet and other electronic
communication technologies is a fundamental building block for democracy
and for the creation of a dynamic and innovative business climate. In order to
exploit fully the growth and productivity potential of the Information Society,
the Commission will support further regulatory reforms including through
regulators' networks. The Mediterranean regulators’ network will be
strengthened and an Eastern network will be established. The Commission will
also support enhancement of the electronic communications environment in areas
ranging from network interconnection to e-health. Equally, it will improve the
high speed connectivity of the regional e-infrastructures for research and
education. The active and democratic use of ICT and internet, as well as steps
towards a transparent and efficient audiovisual and media regulatory environment
will also be promoted.

· Regarding the development towards a “Common Knowledge and
Innovation Space”, the Commission will intensify cooperation with partners
and support better networking and co-ordination between partner countries and
the EU in the setting and synchronisation of research priorities. With a view to promoting greater involvement of ENP research
communities in the 7th Framework programme for Research and
Technological Development (FP 7), the Commission will support partner countries
in building up research capacity, promote the increased collaboration of
between ENP and EU researchers and research organisation and help to strengthen
the FP 7 network of Contact Points. The Commission will support special
information events on FP 7 opportunities. The Commission stands furthermore
ready to negotiate with ENP partners memoranda of understanding for their
association to the follow-up of FP 7.

· The new European Neighbourhood Programme for Agriculture and
Rural Development (ENPARD) will help partner countries to operate more
effectively in foreign markets, to benefit fully from the future DCFTAs, and to
stimulate farming domestically. In that framework, the Commission will be
engaging in close policy dialogues with partner countries to promote long-term
agricultural and rural development strategies in close co-operation with all
relevant stakeholders.

·
On statistics, the EU will support the
adoption of the European statistics code of practice, including the principle
of independence of the statistics producers; the production and dissemination
of high quality statistics covering key socio-economic areas, in line with EU
standards and methodologies; and the use of statistics for evidence-based
decision making, a key component of good governance. The EU will reinforce the
peer-to-peer assistance and the regional dimension of the support to this work.

· In the area of maritime policy, the EU will strengthen its
co-operation with its neighbours with the view to encourage the development of
common targets for achieving sustainable growth and jobs from traditional and
emerging maritime sectors, of pilot projects in areas of regional interest, and
bring further consistency in actions financed by internal and external EU
financial instruments in this regard. In the
Mediterranean region specifically, the Commission, together with the EIB and
IMO, will launch a joint initiative to leverage private sector investments
and involvement of financing institutions in the maritime sectors, notably
in the domains of infrastructure, training and maritime surveillance. It will also intensify co-operation
with coastal partner countries in the context of Regional
Fisheries Management Organisations so as to promote a
more sustainable use of fishery resources, re-enforce fisheries monitoring and
combat illegal, unreported and unregulated fishing.

The new generation of ENP Action Plans (or
equivalent documents) being negotiated with many partners will provide an
updated policy framework which should ensure that the EU and the Member States
can better co-ordinate financial and technical assistance. The
programming process that will start in the second half of this year under the
new ENI provides a real opportunity to interested Member States to programme
their assistance jointly with the EU.

Regional co-operation

The Arab Spring offers new opportunities
for regional cooperation in the Southern Neighbourhood. Many of the
challenges facing partner countries can only be taken up effectively at
regional or sub-regional level. The EU took over the
Northern Co-Presidency of the Union for the Mediterranean (UfM). This will
enhance the complementarity of the UfM with the ENP and the effectiveness of EU
support to the Southern Mediterranean countries. The EU will continue to
support the Secretariat of the UfM as a catalyst for projects bringing tangible
benefits for the people across the Mediterranean. The Commission is also determined to give a
new impetus the sectoral dialogues under the UfM.

The EU has also developed
a more structured dialogue with the League of Arab States (LAS), including
regular meetings between the High Representative and the Secretary General of
the LAS, and has initiated concrete cooperation, including the creation of the
LAS Situation Room and the training of diplomats or election monitors.

There are already encouraging signs of an
improved dialogue between Algeria and Morocco, opening the way
for stronger sub-regional co-operation in the Maghreb, also in the context of
the 5+5 group. The EU is ready to support this and other regional and
sub-regional co-operation and integration processes, and to co-operate with the
relevant regional organisations and processes. In this context, the High
Representative and the Commission intend to make proposals for strengthening
relations between the EU and the Maghreb in the joint Communication to be
prepared in coming months, provided that the Maghreb partner countries
demonstrate clear signs of progress in their regional cooperation effort.

In response to the March European Council call
for a roadmap to define and guide the implementation of the EU policy vis-à-vis
our Southern Mediterranean partners, the report on the implementation of the Partnership
for Democracy and Shared Prosperity accompanying this joint Communication outlines
the objectives to be pursued, the instruments to be deployed and the actions to
be implemented until the end of 2013.

In the Eastern Neighbourhood, there has
been increased regional cooperation on border management, in the context of the
EU Border Assistance Mission to the Republic of Moldova and Ukraine
(EUBAM) and the Southern Caucasus Integrated Border Management (SCIBM) project. The joint Communication on the Eastern Partnership Roadmap gives
greater details on activities envisaged in the EaP framework.

Conclusions

Last May the EU completed a major overhaul
of its European Neighbourhood Policy. It did so in response to multiple
challenges: the need to support the process of democratisation that is sweeping
across the entire EU Southern Neighbourhood; the European aspirations of some
of our Eastern European Partners and the need to deepen the Eastern
Partnership; and the new opportunities offered by the entry into force of the
Lisbon Treaty. One year on, this assessment provides a promising picture. In many
respects the EU’s neighbourhood is today more democratic and more open to
change than a year ago. The EU's new policy approach is firmly established.
Most partner countries have welcomed it and a number of them are ready to
pursue political and economic reform with increased determination and to engage
more deeply with the EU.

However, this is a time of transition. Countries
are engaged in drawing up new constitutions, establishing new institutions,
building internal consensus in support of democratic transformation and
electing new leaders. This will be a challenging and in some cases even a
fraught process. Understandably, some countries will need to advance these
internal processes further before fully resuming dialogue with the EU on
reforms and negotiations that could open the door to stronger trade ties,
deeper economic and sector integration, and easier mobility.

In this situation, it is important for the
EU to deliver on its commitments to the Southern Neighbourhood and to increase its
engagement in the Eastern Neighbourhood. This will also contribute to the EU's
own security and prosperity. The EU’s credibility as a global player will
depend to a great extent on its capacity to act decisively in its
neighbourhood. For this reason, and in spite of its economic difficulties, the
EU must remain open and outward looking, strengthen neighbourly relations even further
and firmly support its partners’ efforts to make their countries more
democratic, more prosperous and hence, more stable.

[1]               COM (2011) 303 of 25.05.2011

[2]               This joint Communication is accompanied by: twelve
Country Progress Reports assessing the implementation of the ENP in 2011 in the
twelve neighbouring countries with which an ENP Action Plan or an equivalent
document has been agreed; two regional progress reports reviewing the progress
made in 2011 in the implementation of the Eastern Partnership and the
Partnership for Democracy and Shared Prosperity; and a Statistical Annex.

[3]               € 1 billion for EU’ Southern Neighbourhood and € 150
million for EU’s Eastern Neighbourhood.

[4]               SPRING (Support for
Partnership, Reform and Inclusive Growth); EaPIC (Eastern Partnership
Integration and Cooperation Programme).

[5]               COM (2012) ... of 15.05.2012, Eastern Partnership: A
Road Map to the autumn 2013 Summit”.

[6]               The elements that characterise a deep and
sustainable democracy include: free and fair elections; freedom of
association, expression and assembly and a free press and media; the rule of
law administered by an independent judiciary and the right to a fair trial;
fighting against corruption; security and law enforcement sector reform
(including the police); and the establishment of democratic control over armed
and security forces.

[7]               COM (2011) 200 of 08.03.2011

[8]               € 1 billion for EU’ Southern Neighbourhood and € 150
million for EU’s Eastern Neighbourhood.

[9]               In December 2011, the Commission adopted the proposal
for a decision of the European Parliament and the Council on the EU
ratification of the amendments (COM (2011) 905 of 21.12.2011).

[10]             COM (2011) 500 final of
29.6.2011, "A budget for Europe 2020".

[11]             Armenia, the Republic of Moldova, Ukraine and in
future, possibly, Egypt and Georgia.

[12]             See in particular the Commission Communications:
"The EU and its neighbouring regions: a renewed approach to transport cooperation",
COM (2011) 415 of 07.07.2011 and "The EU Energy policy: Engaging with
partners beyond our border", COM (2011) 539 of 07.09.2011.