Proposal for a COUNCIL REGULATION on assistance to Turkey in the framework of the pre-accession strategy, and in particular on the establishment of an Accession Partnership

(presented by the Commission)

EXPLANATORY MEMORANDUM

The European Council which met in Helsinki on 10 and 11 December 1999 largely endorsed the Commission's Regular Report on Turkey as well as its recommendations of the composite paper (Reports on progress towards accession by each of the candidate countries). In particular the Helsinki conclusions stated that:

Turkey is a candidate State destined to join the Union on the basis of the same criteria as applied to the other candidates;

Turkey will benefit from a pre-accession strategy (building on the European strategy). This will include enhanced political dialogue, with emphasis on progressing towards fulfilling the political criteria with particular reference to the issue of human rights as well as border disputes and Cyprus;

Turkey will participate in all Community programmes and agencies and in meetings between candidate States and the Union in the context of the accession process;

an Accession Partnership (AP) will be drawn up, combined with a National Programme for the adoption of the acquis (NPAA). Appropriate monitoring mechanisms will be established;

a process of analytical examination of the acquis will be prepared by the Commission;

a single framework for co-ordinating all sources of EU financial assistance for pre-accession will be presented by the Commission.

The proposal establishes the legal base to draw up an Accession partnership for Turkey and define a single framework for co-ordinating all sources of EU financial assistance to Turkey for pre-accession. The European Council of Feira invited the Commission to present as soon as possible these proposals.

With the other candidate countries, the Council, on a proposal from the Commission, followed a 2 step process - first it adopted a framework legal base by unanimity - this sets up the accession partnership and provides that the priorities will be adopted by qualified majority.

For the countries of Central and Eastern Europe this is done in a special framework regulation which has no financial implications (the framework regulation states that under the pre-accession strategy, the Community assistance shall be the assistance provided for in the programmes adopted in accordance with the provisions of the Treaty).

For Turkey the same approach is proposed i.e. to adopt a draft framework regulation for Turkey modelled on the regulation for the ten Central and Eastern European candidate countries.

The proposed framework regulation has no financial implications. It states that under the pre-accession strategy for Turkey, the Community assistance shall be the assistance provided for in the programmes adopted in accordance with the provisions of the Treaty, namely the share of Turkey in the Meda programme as well as the financial assistance laid down in the two regulations to accompany financially the European strategy. One regulation namely regarding the implementation of measures to intensify the EC-Turkey Customs Union has been adopted. The other regulation regarding the implementation of measures to promote economic and social development in Turkey is still pending under the co-decision procedure.

2000/0205 (CNS)

Proposal for a COUNCIL REGULATION on assistance to Turkey in the framework of the pre-accession strategy, and in particular on the establishment of an Accession Partnership

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) The conditions to be fulfilled by applicant countries wishing to join the European Union were set out at the European Council meeting in Copenhagen in June 1993;

(2) The Heads of State and Government meeting at the European Council in Helsinki from 10 to 11 December 1999 reaffirmed the inclusive nature of the accession process which now comprises 13 candidate states within a single framework;

(3) The Heads of State and Government meeting at the European Council in Helsinki stated that Turkey is a candidate State designated to join the Union on the basis of the same criteria applied to other candidate States and that building on the existing European strategy, Turkey, like other candidate States, will benefit from a pre-accession strategy to stimulate and support its reforms;

(4) The European Council in Helsinki stated that an accession partnership will be drawn up for Turkey on the basis of previous European Council conclusions while containing priorities on which accession preparations must concentrate in the light of the political and economic criteria and the obligations of a Member State;

(5) It would be appropriate for European Community assistance within the framework of the Accession Partnership to focus on the criteria set out by previous European Council Conclusions and be guided by defined principles, priorities, intermediate objectives and conditions;

(6) The Heads of State and Government meeting at the European Council in Feira from 19 to 20 June invited the Commission to present as soon as possible these proposals;

(7) The Partnership, and in particular the intermediate objectives, should assist Turkey in preparing for membership within a framework of economic and social convergence and in developing its national programme for the taking up of the acquis as well as a relevant timetable for its implementation;

(8) It is essential to manage the available financial resources carefully and in line with the priorities arising out of the Accession Partnership for Turkey and the regular reports;

(9) Community assistance under the pre-accession strategy should be provided by applying to Turkey the aid programmes adopted in accordance with the provisions of the Treaties; and that therefore the present Regulation will have no financial implications;

(10) Community assistance is conditional upon respect of the commitments contained in the EC-Turkey Agreements, the Accession Partnership and upon progress towards fulfilment of the Copenhagen criteria;

(11) The programming of the financial resources making up Community assistance will be decided in accordance with the procedures set out in the Regulations relating to the corresponding financial instruments or programmes;

(12) It is appropriate to adopt the principles, priorities, intermediate objectives and conditions applicable to the Accession Partnership for Turkey as soon as possible, in order to enable the Commission to establish in its regular report of 2001 progress made by Turkey after the adoption of the accession partnership;

(13) The role played by the bodies set up under the Association Agreement is central to ensuring the proper implementation and follow-up of this Accession Partnership;

(14) Implementing the Accession Partnership is likely to help achieve the Community's objectives; the Treaty does not provide, for the adoption of this Regulation, powers other than those of Article 308:

HAS ADOPTED THIS REGULATION:

Article 1

As part of the pre-accession strategy an Accession Partnership shall be established for Turkey. The Accession Partnership shall provide a single framework covering:

- The priorities, as defined in the analysis of the situation in Turkey, on which preparations for accession must concentrate in view of the political and economic criteria set out by previous European Council Conclusions and the obligations incumbent upon a Member State of the European Union as defined by the European Council,

- The financial resources for assisting Turkey to implement the priorities identified during the pre-accession period.

Article 2

Following a proposal by the Commission, the Council shall decide by qualified majority on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership, as it will be submitted to Turkey, as well as on subsequent significant adjustments applicable to it.

Article 3

This regulation shall have no financial implication. Under the pre-accession strategy, the Community assistance shall be the assistance provided for in the programmes adopted in accordance with the provisions of the Treaty.

On the basis of decision taken by the Council pursuant to Article 2, the programming of the financial resources of the assistance granted in the framework of the Accession Partnership shall be established in accordance with the procedures set out in the Regulations relating to the corresponding financial instruments or programmes.

Article 4

Where an element that is essential for continuing to grant pre-accession assistance is lacking, in particular when the commitments contained in the EC-Turkey Agreements are not respected and/or progress towards fulfilment of the Copenhagen criteria is insufficient, the Council, acting by a qualified majority on a proposal from the Commission, may take appropriate steps with regard to pre-accession assistance to Turkey.

Article 5

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, ....... 2000

For the Council

The President

FINANCIAL STATEMENT

1. Title of operation

Proposal for a Council Regulation on assistance to Turkey in the framework of the pre-accession strategy, and in particular on the establishment of an Accession Partnership

2. Budget heading(s) involved

a) B7 - 410

b) B7 - 4035

c) B7 - 4036

3. Legal basis

a) Council Regulation No 1488/96

b) Council Regulation No 764/2000

c) proposal for a Council Regulation on measures to promote economic and social development in Turkey

4. Description of operation

4.1 General objective

a) Support for financial and technical measures to accompany the reform of economic and social structures in the framework of the Euro-Med partnership.

b) Financial support for measures to develop the EC-Turkey customs union, in particular the alignment of Turkish legislation on that of the Community.

c) Financial support for measures to promote social and economic development in Turkey, inter alia, by promoting cooperation in the fields of industry and telecommunications, health protection, the environment, energy and transport and by promoting democracy and human rights.

4.2 Period covered and arrangements for renewal

a) 2000 - 2006

b) 3 years (2000 - 2002)

c) 3 years (2000 - 2002)

5. Classification of expenditure or revenue

5.1 Compulsory/Non-compulsory expenditure

5.2 Differentiated/Non-differentiated appropriations

5.3 Type of revenue involved: none, except the reimbursement of risk capital if the operation financed is an economic success.

6. Type of expenditure or revenue

- 100% grant: yes

- Grant for joint financing with other sources in the public and/or private sector: yes, for certain measures

- Interest-rate subsidy

- Other

- Should the operation prove an economic success, is there provision for all or part of the Community contribution to be reimbursed- No

- Will the proposed operation cause any change in the level of revenue- If so, what sort of change and what type of revenue is involved- None

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

Evaluation of appropriations needed for the implementation of measures indispensable to support economic and social development in Turkey

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

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7.3 Operational expenditure for studies, experts etc. included in Part B of the budget

Commitment appropriations EUR million (at current prices)

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7.4 Schedule of commitment and payment appropriations

EUR million

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8. Fraud prevention measures

- Specific control measures envisaged

Checks will be carried out at all levels of implementation of projects (invitations to tender, selection, drawing-up of contracts, provision of services and payments) by Commission staff and the Commission's Representation in Turkey and by the Court of Auditors. The checks will take account of contractual obligations and the principles of sound and efficient management. Provisions concerning supervision (presentation of reports, coordination with the Commission, etc.) will be included in all the agreements or contracts concluded between the Commission and those receiving payment.

9. Elements of cost-effectiveness analysis

9.1 Specific and quantified objectives; target population

- Specific objectives: links with general objective

Objectives set out in the Commission's communication to the Council of 4 March 1998 entitled «the European strategy for Turkey: the Commission's initial operational proposals», in particular, the alignment of legislation and Turkey's incorporation of the Union acquis.

Promotion of lasting development in Turkey.

Financial support for the implementation of the accession partnership.

- Target population: distinguish for any individual objectives; indicate the end-beneficiaries of the Community's financial contribution and the intermediaries involved.

- public administration

- agricultural sector

- industrial sector

- research and scientific bodies

- socio-economic operators

- civil society

- regional and local authorities

9.2 Grounds for the operation

- Need for Community financial aid, with particular regard for the principle of subsidiarity

- Choice of ways and means

Ways and means will depend on the situation in the country and the sector concerned. The measures to be financed will be preceded by identification and feasibility studies. They will form part of the National Indicative Programme for Turkey and the accession partnership.

* advantages over possible alternatives (comparative advantages)

* explanatory reference to similar Community or national operations

* spin-off and multiplier effects expected

- development of EU-Turkey relations

- implementation of the pre-accession strategy

- alignment of Turkey's legislation and practices on the Community acquis

- Main factors of uncertainty which could affect the specific results of the operation

Political and economic stability in Turkey.

The determination of our partners to implement the foreseen actions

9.3 Monitoring and evaluation of the operation

- Performance indicators selected

* output indicators (measurement of resources employed)

- the number of cooperation measures carried out between Turkish and Community institutions

* impact indicators (measurement of performance against objectives)

- alignment of Turkish legislation, rules and standards on those of the EU

- increased trade

- access to new technologies

- transfer of know-how

- reduction of regional disparities

- improvement of the quality of life

- progress recorded in the 'Regular Report'

- Details and frequency of planned evaluations

Projects will be monitored and evaluated regularly by the implementing bodies, the Commission and independent experts.

Once operations have been completed an evaluation report will be drawn up on their content, impact and follow-up.

- Assessment of the results obtained (where the operation is to be continued or renewed)

10. Administrative expenditure (Section III, Part A of the budget)

Actual mobilisation of the necessary administrative resources will depend on the Commission's annual decision on the allocation of resources, taking into account the number of staff and additional amounts authorised by the budgetary authority.

10.1 Effect on the number of posts (none)

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If additional resources are required, indicate the pace at which they will have to be made available.

10.2 Overall financial impact of additional human resources (none)

EUR

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The amounts given must express the total cost of additional posts for the entire duration of the operation, if this duration is predetermined, or for 12 months if it is indefinite.

10.3 Increase in other administrative expenditure as a result of the operation, in particular expenses arising from meetings of committees and working parties of experts (none)

EUR

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The amounts given must correspond to total expenditure arising from the operation if its duration is predetermined or to expenditure for 12 months if it is indefinite.