POLAND: ACCESSION PARTNERSHIP (98/C 202/07)

1. INTRODUCTION

In the opinion which it submitted to the Council in July 1997, in accordance with the provisions of Article O of the Treaty, the Commission recommended that negotiations for accession should be opened with Poland. This recommendation derives from the analysis contained in the opinion in which the Commission is of the view that Poland (i) presents stable institutions, guarantees the rule of law, human rights and the protection of minorities, (ii) can be regarded as a functioning market economy able to cope with the competitive pressure and market forces within the Union in the medium term, and (iii) should be capable in the medium term of applying the acquis provided it continues its efforts on its transposition and intensifies its work on its implementation.

The Europe Agreement will remain the basis for the European Union's relations with Poland. However the pre-accession strategy will be reinforced to enable assistance to be directed towards the specific needs of each applicant so as to provide support for overcoming particular problems identified in the opinion. As the Commission indicated in Agenda 2000: 'The reinforced pre-accession strategy has two main objectives. First, to bring together the different forms of support provided by the Union in a single framework, the Accession Partnerships, and to work together with the applicants, within this framework, on the basis of a clearly defined programme to prepare for membership, involving commitments by the applicants to particular priorities and to a calendar for carrying them out. Second, to familiarise the applicants with Union policies and procedures through the possibility of their participation in Community programmes.`

At its meeting in Luxembourg in December 1997 the European Council decided that the Accession Partnerships would be the key feature of the enhanced pre-accession strategy, mobilising all forms of assistance to the applicant countries within a single framework. This Accession Partnership has been decided by the Commission, after consulting Poland and on the basis of the principles, priorities, intermediate objectives and conditions which have been decided by the Council.

2. OBJECTIVES

The purpose of the Accession Partnership is to set out in a single framework the priority areas for further work identified in the Commission's opinion on Poland's application for membership of the European Union, the financial means available to help Poland implement these priorities and the conditions which will apply to that assistance. This Accession Partnership provides a framework for a number of policy instruments which will be used to help the candidate countries in their preparations for membership. These will include, inter alia, the National Programme for the Adoption of the Acquis to be adopted by Poland, the Joint Assessment of Economic Policy Priorities, the Pact against Organised Crime and the internal market road maps. Each of these instruments is different in nature and will be prepared and implemented according to specific procedures. They will not be an integral part of this Partnership but the priorities they contain will be compatible with it.

3. PRINCIPLES

The main priority areas identified for each candidate country relate to their ability to assume the obligations of meeting the Copenhagen criteria which state that membership requires:

- that the candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities,

- the existence of a functioning market economy, as well as the capacity to cope with competitive pressure and market forces within the Union,

- the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union.

At its meeting in Madrid, the European Council stressed the need for the candidate countries to adjust their administrative structures to ensure the harmonious operation of Community policies after accession and at Luxembourg it stressed that incorporation of the acquis into legislation is necessary, but not in itself sufficient; it is necessary to ensure that it is actually applied.

4. PRIORITIES AND INTERMEDIATE OBJECTIVES

The Commission's opinions and the Council's examination of these have highlighted the extent of the efforts which still have to be made in certain areas by the candidate countries to prepare for accession and took the view that none of these countries fully satisfies all of the Copenhagen criteria at the present time. This situation will require the definition of intermediate stages in terms of priorities, each to be accompanied by precise objectives to be set in collaboration with the countries concerned, the achievement of which will condition the degree of assistance granted and the progress of the negotiations under way with some countries and the opening of new negotiations with the others. The priorities and intermediate objectives have been divided into two groups - short and medium term. Those listed under the short term have been selected on the basis that it is realistic to expect that Poland can complete or take them substantially forward by the end of 1998. In view of the short time span, and taking into account the administrative capacity required to achieve them, the number of priorities selected for the short term has been limited. The priorities listed under the medium term are expected to take more than one year to complete although work may and should also begin on them during 1998.

Poland will be invited to draw up a National Programme for the Adoption of the Acquis (NPAA) by the end of March which should set out a timetable for achieving these priorities and intermediate objectives and, where possible and relevant, indicate the necessary staff and financial resources.

The Accession Partnership indicates that Poland will have to address all issues identified in the opinion. The annex provides a summary checklist of these. Incorporation of the acquis into legislation is not in itself sufficient; it will also be necessary to ensure that it is actually applied to the same standards as those which apply within the Union. In all of the areas listed below there is a need for credible and effective implementation and enforcement of the acquis.

Drawing on the analysis of the Commission's opinion and the Council's examination of this, the following short and medium-term priorities and intermediate objectives have been identified for Poland.

4.1. Short term (1998)

- Economic reform: establishment of medium-term economic policy priorities and joint assessment within the framework of the Europe Agreement; acceleration of the privatisation/restructuring of State enterprises (including telecommunications), and the sound development of the financial sector, including acceleration in a transparent manner of banking privatisation and improving bankruptcy proceedings.

- Industrial restructuring: adoption, by 30 June, and start of implementation of a viable steel sector restructuring programme, pursue restructuring in the coal sector.

- Reinforcement of institutional and administrative capacity: in particular improvements in the areas of customs, State aid controls, justice and home affairs (ministries and services), financial control, veterinary and phytosanitary controls (particularly as regards facilities at the external borders), environment, taxation and regional policy.

- Internal market: including certification and standardisation (further alignment of legislative measures and conclusion of a European Conformity Assessment Agreement), further alignment in the areas of intellectual and industrial property, public procurement and liberalisation of capital movements, the adoption of a law on State aid, and strengthening of monitoring authority, finalisation of inventory.

- Justice and home affairs: develop more effective border management and control systems in particular of the borders with Belarus and the Ukraine and align visa regimes with the European Union.

- Agriculture: establish a coherent structural and rural development policy; adoption of implementing Regulations and implementation and enforcement of veterinary and phytosanitary requirements particularly with regard to the inspection and control arrangements for protecting European Union external borders. In particular, upgrading of certain food processing establishments (milk and meat sectors) and certain testing and diagnostic facilities.

- Environment: continue transposition of framework legislation, establishment of detailed approximation programmes and implementation strategies related to individual acts. Planning and commencement of implementation of these programmes and strategies.

4.2. Medium term

- Political criteria: further attention to ensuring equal access to public services.

- Economic policy: regular review of the joint assessment of economic policy priorities, within the Europe Agreement framework, focusing on satisfying the Copenhagen criteria for membership of the Union and the acquis in the area of economic and monetary policy (coordination of economic policies, submission of convergence programmes, avoidance of excessive deficits); while Poland is not expected to adopt the euro immediately on accession, it is expected to pursue policies which aim to achieve real convergence in accordance with the Union's objectives of economic and social cohesion, and nominal convergence compatible with the ultimate goal of adoption of the euro.

- Reinforcement of institutional and administrative capacity: development of anti-fraud unit and State audit office, strengthening of financial control capacity; improved operation of the judicial system, training for the judiciary in Community law and its application; reinforcement of justice and home affairs institutions (ensuring sufficient and properly trained personnel, in particular police, border guards, ministries and courts), strengthening of parliamentary law-making procedures, improvement of tax gathering capacity, reform of customs and tax administrations to ensure readiness to apply the acquis and the reinforcement of food control administration.

- Internal market: including completion of alignment of public procurement legislation, financial services, further development of standardisation and conformity assessment bodies and establishment and operation of a market surveillance system, alignment of technical legislation on industrial products, further improvements in the field of competition (e.g. merger control), efficient enforcement of competition law, audiovisual, property ownership and external frontier control, reinforcement of the anti-trust and State aid authorities, promotion of enterprise development, including SMEs, alignment with the acquis in the fields of telecommunications, consumer protection and the internal energy market.

- Justice and home affairs: including development of effective border management and implementation of migration policy and the new asylum system as well as the fight against organised crime (in particular money laundering, drugs and trafficking in human beings) and corruption, implementation of reforms of legislation on aliens, and to align visa policy with that of the European Union and to complete alignment to international conventions, notably in view of the Schengen acquis.

- Agriculture: including alignment with the agricultural acquis (including veterinary and phytosanitary matters, in particular external border controls), attention to environmental aspects of agriculture and biodiversity, implementation of structural and rural development policy. Development of the capacity to implement and enforce the common agricultural policy, in particular the fundamental management mechanisms and administrative structures to monitor the agricultural markets and implement structural and rural development measures, adoption and implementation of the veterinary and phytosanitary requirements, upgrading of certain food-processing establishments and testing and diagnostic facilities, restructuring of the agri-food sector.

- Fisheries: development of capacity to implement and enforce the common fisheries policy.

- Transport: further efforts on alignment with acquis in particular in road transport (market access, safety rules and taxation), and rail, and to provide necessary investment for transport infrastructure, notably extension of trans-European networks.

- Employment and social affairs: development of appropriate labour market structures and joint review of employment policies as preparation for participation in European Union coordination; alignment of labour and occupational health and safety legislation and development of enforcement structures, in particular early adoption of the framework Directive on health and safety at work; enforcement of equal opportunities between women and men; further development of active, autonomous social dialogue; further development of social protection, undertake steps to bring public health standards into line with European Union norms.

- Environment: including the development of monitoring and implementation control structures and capacities, continuous planning and implementation of approximation programmes related to individual legal acts. A particular emphasis should be given to drinking water, waste water, the waste sector as well as air pollution, including large combustion plants. Environmental protection requirements and the need for sustainable development must be integrated into the definition and implementation of national sectoral policies.

- Regional policy and cohesion: completion of legal basis, development of administrative structures and budgetary procedures, financial instruments, monitoring and control mechanisms in order to participate in European Union structural programmes after membership.

5. MAIN INSTRUMENTS FOR COMMUNITY TECHNICAL AND FINANCIAL ASSISTANCE

5.1. Programming of financial resources

The Phare allocation for the period 1995 to 1997 has totalled ECU 526 million. Subject to the approval of the Phare budget for the remaining period, the Commission will confirm the allocations for 1998 and 1999. Financial proposals will be submitted to the Phare Management Committee as provided for in Council Regulation (EEC) No 3906/89. Joint financing by the applicant countries will be systematically required for all investment projects. The Commission will work with Poland, the EIB and international financing institutions, in particular the EBRD and World Bank, with a view to facilitating the co-financing of projects relating to pre-accession priorities. Financial assistance from the year 2000 onwards will comprise aid for agriculture and a structural instrument which will give priority to measures similar to the Cohesion Fund. In addition Poland will have access to funding from multi-country programmes directly related to the acquis.

The Phare programme is the main financial instrument of the reinforced pre-accession strategy. Phare's prime objective is to help prepare Central and East European countries for accession by focusing the assistance it provides on the adoption of the Community acquis and in particular on the priorities identified in this Accession Partnership and in the National Programme for the Adoption of the Acquis. Each year the Commission will sign a financing memorandum with Poland in which Poland will undertake to meet a number of the priorities identified in this Accession Partnership and the Commission will undertake to contribute financially to their realisation. Programming of Community financial assistance will take into account the priorities and timetable of the NPAA.

In addition, the subsequent allocation of financial assistance will be closely tied to the respect by the Polish Government of the commitments made in the NPAA. Certain pre-accession activities can be reinforced now (e.g. support for institution building) but others, such as the financing of major investment projects designed to meet the requirements of the acquis in areas such as environment and nuclear safety will have to be programmed over a period of five to six years.

From 1998 Phare assistance will be channelled through the following types of actions:

- Institution building (around 30 %), which involves the strengthening of democratic institutions, rule of law, public administration and all entities responsible for public services in order to establish the necessary institutional and administrative structures and train the people required to apply the acquis. Institution building support will be implemented, inter alia, through, training actions, technical assistance and twinning of institutions and administrations in Poland with relevant bodies in the Member States. Initially this twinning will focus on priority areas such as finance, agriculture, environment, justice and home affairs.

- Investment support (around 70 %), in order to make the necessary investments possible for the adaptation of Polish infrastructure to the Community acquis. This support will concentrate on: (i) structural actions, covering in particular agricultural restructuring, regional development and investment in human and intellectual capital, which could include Phare contributions to participation in the research and technological development framework programme; (ii) compliance with Community norms, in particular as regards environment, agriculture, industry, occupational safety and health, transport and telecommunications; (iii) co-financing of large scale infrastructure (1) and (iv) small and medium-sized enterprises development (2).

5.2. Role of international financial institutions

Cooperation between Poland and the international financial institutions will receive a new impetus and a new focus through the Accession Partnership. The grant resources made available under the Accession Partnership will serve as seed money and a catalyst for larger amounts of development finance from the IFIs. This process will be developed by the Commission in liaison with the candidate countries, the EIB and the IFIs, in particular the EBRD and the World Bank with a view to facilitating the co-financing of projects relating to pre-accession priorities.

Under a new lending mandate covering the period 1997 to 1999, the EIB can make available ECU 3 520 million in Central and Eastern Europe. The new pre-accession facility approved by the EIB's governors in early 1998 increases this amount to ECU 7 billion. EIB loans shall be used in all sectors eligible for EIB financing to facilitate the accession process.

6. CONDITIONALITY

Community assistance will be conditional on respect by Poland of its commitments under the Europe Agreement, further steps towards satisfying the Copenhagen criteria and progress in implementing this Accession Partnership. Failure to respect these general conditions could lead to a decision by the Council on the suspension of financial assistance on the basis of Article 4 of Council Regulation (EC) No 622/98.

7. IMPLEMENTATION OF PRE-ACCESSION ASSISTANCE

The provision of financial assistance to Poland will depend on the maturity of projects proposed by the Polish Government for inclusion in a financing memorandum. Where projects need to be tendered the Commission will only finance those projects which are ready for tendering at the stage of the signature of the financing memorandum. In addition any previous/existing commitments in the same sector must have been fully contracted or be on track. In order to ensure efficient implementation, projects to be financed must not, in principle, fall below a threshold of ECU 2 to 3 million, in particular in the case of infrastructure projects. If these principles lead to a situation where Poland cannot absorb its full indicative allocation, the allocation will be reduced accordingly. The difference between the indicative and final allocation will be transferred to the horizontal SME and/or the large scale infrastructure facility. No subsequent compensation of this amount will be made.

The Government of Poland is invited to put in place an implementation structure which ensures coherence and complementarity between all types of European Union financial assistance and national resources. A national coordinator will be responsible for ensuring a close link between the general accession process and the programming of the Community financial assistance.

The Government of Poland will establish (preferably in the Ministry of Finance) during 1998 a national fund for investment promotion and institution building functioning under the responsibility of a National Authorising Officer (NAO). As the central entity through which Phare and other forms of Community financial assistance will be channelled, the national fund will be responsible for the management of these funds under decentralised implementation in order to increase transparency and reduce dispersion of funds. It will have overall responsibility for management of funds including respect of provisions of the financing memorandum and be accountable to the Commission for the use of the funds. It will also ensure and supervise the flow of national and other co-financing resources as set out in the financing memorandum. The detailed functions and responsibilities of the national fund will be set out in the individual financing memoranda.

In cooperation with the Government of Poland, the Commission will pursue a policy of further decentralisation of the implementation of the financial assistance where certain pre-conditions are met, and to the extent permitted by the European Communities' Financial Regulation, in particular Article 105(3). This will be done with the intention to establish, within limits and in a gradual manner, a relationship between the Commission and Poland where responsibility is shared along the lines of the relationship existing with the Member States for implementing the Structural Funds.

In this context, the possibility of applying national procurement procedures in the tendering and contracting of Phare projects may be explored by the Commission, if so requested by the Government of Poland, in particular in the field of investment. The Commission's decision on this matter will be taken following, inter alia, examination of the Polish national procurement law for respect of and compatibility with the basic provisions of the European Community's public procurement rules and its Financial Regulation, including equal participation in tenders and the provisions of Article 118. Any decision on the use of national procurement rules will be taken by the Commission on a case-by-case basis and will be confirmed in the individual financing memoranda.

The monitoring of programme implementation shall be carried out jointly with the Commission through procedures established in the individual financing memoranda. In order to ensure effective monitoring of implementation of assistance under the Phare programme, each Phare programme will incorporate quantified physical and financial objectives which will be specified in the financing memorandum. In order to gauge their effectiveness all operations financed under the Phare programme will be subject to ex-post evaluation to appraise their impact with respect to their objectives.

8. MONITORING

The implementation of the Accession Partnership will be monitored in the framework of the Europe Agreement. This will commence in 1998 before the Commission presents its first regular report to the Council reviewing the progress made by Poland including implementation of the Accession Partnership.

The relevant sections of the Accession Partnership will be discussed in the appropriate subcommittee. The Association Committee will discuss overall developments, progress and problems in meeting its priorities and intermediate objectives as well as more specific issues referred to it from the subcommittees. The Association Committee will report to the Association Council on the implementation of the Accession Partnership.

The Phare Management Committee will ensure that financing decisions are compatible with the Accession Partnerships.

The Accession Partnership will be amended as necessary in accordance with Article 2 of Regulation (EC) No 622/98. The Commission will propose a review of this partnership before the end of 1999 and at regular intervals thereafter. These reviews will include consideration of the need to further specify intermediate objectives in the light of the progress made by Poland in meeting the objectives set out in this partnership.

(1) Concerning investment projects in general, Poland will be required to fulfil the principle of complementarity by means of contributing a minimum amount of 25 % to jointly financed projects.

(2) A horizontal facility for SMEs will be available to remedy the shortage of investment capital available to small enterprises.

ANNEX

Poland will have to address all issues identified in the opinion. The purpose of this Annex is to provide a summary checklist of these issues. These are formulated as recommendations for action. They are listed in the order in which they appear in the opinion without any ranking in terms of importance or urgency. The priority areas for action by each candidate are set out as priorities and intermediate objectives in the Accession Partnership itself.

1. Political criteria

Efforts should be made to enhance the judicial system, to maintain the freedom of the press and the rights of journalists, to improve the treatment of claims for compensation regarding property seized and to intensify the fight against corruption.

Particular measures must be taken to enhance the protection of privacy and the inviolability of the home. The 'lustration laws` and their application remains an important issue.

2. Economic criteria

The liberalisation process should be completed by removing commercial monopolies while strengthening the regulatory bodies set up to ensure the good functioning of the market. Particular efforts are needed to complete the restructuring and privatisation of State owned enterprises, in particular in the steel, energy and telecommunications sectors.

Special attention must be paid to preserving macroeconomic stability and avoiding overheating of the economy. The maintenance of the current stability orientated monetary and exchange rate policy and the implementation of the new law on the Central Bank will play an important role. Particular attention is required in the completion of reform in the pension and social security systems. Continued attention is also required in reforming the agriculture, banking and financial services sectors, and in the alignment of trade policy.

3. Ability to assume the obligations of membership

3.1. Internal market without frontiers

The four freedoms

General framework - efforts must be made to accelerate law reform in the field of public procurement, for instance as regards the utilities sector, and the White Paper Stage II measures. In the field of intellectual and industrial property, special attention must be paid to legislation and effective implementation. As regards Company Law full compatibility with the first and 12th Directives must be ensured. Improvements must be made in the protection of personal data, notably by the establishment of an independent supervisory authority. Efforts are required to improve the application of the Europe Agreement in the field of trade.

Free movement of goods - Poland needs to accelerate work to adopt framework legislation which will enable it to implement the European Union system. Standardisation and conformity assessment infrastructures need to be strengthened and adoption of the new approach Directives take place. Negotiations for a European Conformity Assessment Agreement should accelerate this process. As regards other sectoral legislation, efforts should be made to complete the harmonisation of Directives on motor vehicles and chemicals and to improve the compatibility of laws on pharmaceuticals and foodstuffs. A market surveillance mechanism will have to be set up to become fully operational, once technical legislation is fully harmonised.

Free movement of capital - restrictions concerning acquisition of real estate by non-residents must be clarified and where necessary aligned.

Free movement of services - banking legislation must be reviewed and amended where necessary, to fulfil European Union requirements.

Free movement of persons - as regards mutual recognition of professional qualifications, efforts must be made to ensure the necessary legislative and enforcement measures. Further efforts must be made to ensure the necessary legislative and enforcement measures as regards the coordination of social security schemes.

Competition

The Competition Act needs to be further adjusted, in particular to improve merger control and to strengthen the powers of the Office for Competition. In the field of State aid, a comprehensive inventory of all existing aid must be established and continuously updated in accordance with Community practice. A national legal framework on State aid, covering the monitoring and admissibility of State aid must be created. A review of all existing aid measures should be undertaken and those measures which are not compatible with the Europe Agreement must be modified or abolished (including incompatible State aid granted to firms operating in the Special Economic Zones). New aid measures must be effectively monitored on a systematic basis. Certain exclusive rights and State monopolies which are not compatible with the Community acquis must be progressively adjusted and/or abolished.

3.2. Innovation

Education, training and youth

In order to meet the needs of the market economy and to achieve progress in competitiveness and quality of production, efforts must be made to ensure considerable investment in curriculum reform, teacher training, text books, equipment and buildings.

Research and technological development

Improvements must be made in the level of innovation in the economy as well as in the links between research institutes, industry and small and medium-sized enterprises.

Telecommunications

Substantial changes in both policy and legislation will be needed to secure compliance with European Union Directives, in particular to create a properly constituted regulatory authority and to remove restrictions on foreign participation in the Polish operating and manufacturing markets for telecommunications. At the same time, the acquis now requires governments to ensure that a modern telephone service is available everywhere at an affordable price. Meeting this obligation will require significant investment in the system.

Audiovisual

The existing legislation will need to be amended in particular with regard to the questions of freedom of reception, promotion of European works, certain advertising rules and the protection of minors.

3.3. Economic and fiscal affairs

Economic and monetary union

Efforts to reduce inflation by a credible monetary and exchange rate policy should be continued. The restructuring of the financial sector should be completed.

Taxation

Adjustments must be made to VAT legislation in accordance with European Union requirements to ensure a consistent application. In some respects, existing legislation discriminates against imports. Particular efforts need to be made as regards the scope of exemption from VAT, the VAT refund scheme for foreign taxable persons, the VAT rate structure and the right of deduction of VAT charged on international services.

Significant discrepancies between the Polish excise regime and the European Union requirements need to be addressed. In the field of excise duties particular attention should be given to the setting up of a warehousing system for the movement of goods under duty suspension arrangements. Tax structures and the level of excise rates need to be aligned with the Community model.

Statistics

Some effort is still needed in the field of the establishment of registers, and regarding regional statistics.

3.4. Sectoral policies

Industry

To enhance competitiveness, further efforts should be made to pursue policies aimed at promoting open and competitive markets and taking on the instruments which make up European Community industrial policy, relating both to the operation of markets (product specification and market access, trade policy, State aids and competition policy) and measures related to industry's capacity to adapt to change (stable macroeconomic environment, technology, training, etc.). Further efforts are required to restructure certain industrial sectors such as steel, where a viable restructuring plan is needed and coal.

Agriculture

Substantial efforts must be made to ensure the alignment of Polish legislation with European Union requirements to ensure that a coherent structural and rural development policy is capable of dealing with the problem of Poland's agricultural structure. The implementation and enforcement of veterinary and phytosanitary requirements and the upgrading of establishments to meet European Community standards needs attention, particularly with regard to the inspection and control arrangements for protecting the European Union external borders. The strengthening of the administrative structures to ensure the necessary capacity to implement and enforce the policy instruments of the common agricultural policy requires attention. Efforts are needed regarding restructuring of the agro-food sector to improve its competitive capacity and the upgrading of certain food processing establishments (milk and meat sectors) and certain testing and diagnostic facilities. Administrative structures must be strengthened to ensure the implementation and enforcement of the policy instruments of the common agricultural policy including the import arrangements. The agri-food sector must be further restructured to ensure its competitive capacity.

Fisheries

The fisheries administration must be strengthened to ensure the effective implementation of the common fisheries policy, in particular as regards the conservation and the management of resources, the implementation of a monitoring and control system, the management of the common organisation of the market in the fishery and aquaculture sector, the implementation of a structural policy in the fisheries and aquaculture sector, the keeping of a fishing vessel register, the collection of statistical data as well as the implementation of European Union fishery policy on environmental protection.

Energy

Current efforts for alignment must be maintained in particular with regard to the adjustment of monopolies, including import and export issues, access to networks, energy pricing and State interventions. Special attention must be paid to restructuring of the solid fuels sector, energy efficiency, environmental norms, and to emergency preparedness including the building up of mandatory oil stocks.

Transport

Efforts must be made to ensure the necessary legislation and effective implementation in road haulage (access to the profession, weights and dimensions, safety rules, road tax), the maritime sector (safety), and air transport. Financial transparency must be provided in the rail sector. Steps must be taken to ensure the future extension of the trans-European networks. Inspection bodies, in particular for transport safety, should be strengthened. At a national level there is a need to develop specific strategies for transport infrastructure development and financing.

Small and medium-sized enterprises

Steps must be taken to further refine and increase the coherence of small and medium-sized enterprise (SME) policy, to simplify legislation and the administrative environment to make it more SME-friendly, to strengthen support infrastructures, to improve the tax environment and to develop SMEs' access to financing.

3.5. Economic and social cohesion

Employment and social affairs

Legislation must be realigned with European Union requirements in such areas as occupational health and safety, labour law and equal opportunities. Social reform must be pursued while investments in the public health system need to be significantly enhanced. Active labour market policies must be further developed and jointly reviewed as preparation for participation in European Union coordination. An active, autonomous social dialogue and social protection must be developed. The administrative structures must be strengthened to ensure effective implementation of legislation.

Regional policy and cohesion

A differentiated policy addressing regional disparities must be introduced and the administrative and budgetary structures required to manage integrated European Community structural actions after membership must be established.

3.6. Quality of life and environment

Environment

Steps must be taken to ensure the full transposition of the environmental acquis as well as substantial progress in effective compliance. Particular efforts must be made to achieve full European Union compatibility of the waste, water and nature legislation and to ensure the transposition of the framework Directives dealing with air, waste, water and the Integrated Pollution Prevention and Control Directive. Investments must be strengthened, in particular as regards large combustion plants, the water sector, industry, urban air pollution, solid and hazardous waste management and management of municipal waste. A considerable effort must be made to develop adequate implementation and enforcement structures. Public awareness with regard to the environment must be stimulated.

Consumer protection

Legislation must be amended in such areas as protection of economic interests, sales away from business premises, distance selling, package travel, timeshare property, unfair terms of consumer contracts, consumer credit, misleading advertising, indication of prices and product safety. A strong and independent consumer movement, sustained by public authorities, will need to be developed.

3.7. Justice and home affairs (JHA)

Progress concerning border management and control must be continued. The effective implementation of the Geneva Convention and the 1967 Protocol as well as the Law of Refugees must be ensured. The fight against organised crime must be intensified including in the fields of production and trafficking in drugs, trafficking in women, money laundering, smuggling of and trafficking in stolen cars and arms. Anti-drugs legislation and systems must be further enhanced. Steps must be taken to ensure ratification of international conventions in the JHA field. Particular attention must be paid to ensuring the necessary resources for institutional development including improved coordination between responsible services. Corruption needs to be addressed and accountability and technical effectiveness enhanced. The functioning of the judiciary should be improved. Cooperation between services, including those responsible for combating organised crime needs to be improved. Important work remains to be done on issues such as aliens law, and the visa system with regard to the NIS and other non-associated neighbours.

3.8. External policies

Trade and international economic relations

Preparations must be made for applying, on accession, the Community's various cooperation and preferential agreements, multilateral and bilateral commercial policy commitments and its autonomous commercial defence instruments. At the same time, national legislation in the field must be repealed.

Development

Preparations must be made for applying, on accession, the Lomé trade regime to the ACP States and participating together with the other Member States, in financing the European Development Fund.

Customs

Customs legislation must be aligned with that of the European Community and fully applied. The organisation and duties of staff must be aligned with those of a modern customs administration. A major effort must be made to ensure that the customs services are fully conversant with the legislation. An effort must be made to introduce computerised systems for full participation in the customs union and the internal market. Particular attention must be paid to preparing the customs administrations for the operation of all the customs procedures with economic impact, the system of tariff suspensions and the administration of tariff quotas and ceilings. Strategic planning has to take account of the reinforcement of border posts along the external frontier that Poland has with countries other than European Union Member States at the time of accession.

3.9. Financial questions

The necessary financial management and control mechanisms must be established to ensure satisfactory implementation of Community policies. The existing accounting system as well as the customs system should be amended to ensure the efficient administration of the 'own resources` system. The reliability of the national accounts must be ensured with a view to the accurate calculation of the GNP resource.

4. Administrative capacity to apply the acquis

To ensure the effective implementation and enforcement of the acquis, major reform efforts must be made to strengthen Poland's administrative structures in virtually all European Union relevant sectors. Special efforts must be made to strengthen the authorities ensuring the correct application of Community requirements in the Single Market and the customs authorities. The regulatory and monitoring bodies must be strengthened in such fields as competition, securities, insurance, banks, money laundering, public procurement, consumer protection, transport safety as well as standards and certification, the labour inspectorate, veterinary and phytosanitary controls and food control.

Increased efforts must be made for the upgrading of staff qualifications on European Union-related issues and efficient public management in general. This must include the elaboration of a comprehensive national training strategy for civil servants and the impartial implementation of the Civil Service Act.

The judicial system must be strengthened in terms of resources and relevant expertise. A comprehensive upgrading of judges, in particular in European Union matters, must be carried out.