EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 30.3.2004 
COM(2004) 204 final 
  
Proposal for a 
COUNCIL DECISION 
on the principles, priorities, and conditions contained in the European Partnership with 
the former Yugoslav Republic of Macedonia 
. 
(presented by the Commission) 
  
{SEC(2004) 373}  
 
 2    EXPLANATORY MEMORANDUM  
The Thessaloniki European C ouncil of 19 and 20 June 2003 reit erated its determination to 
fully and effectively support the European pers pective of the Western Balkan countries and 
stated that “the Western Balkans countries will become an integral part  of the EU, once they 
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the Western Balkans including the annex “The The ssaloniki Agenda for the Western Balkans: 
moving towards European integration”, which aims  at further intensifying relations between 
the European Union and the Western Balkans, building also on practices used in the enlargement process, inter a lia through the introduction of European Partnerships. The 
Commission has been invited to submit the first set of European Partne rships to the Council 
for approval with the next Annual Reports on th e Stabilisation and Association process (SAp) 
due end of March 2004.  
The European Partnership for the former Yugo slav Republic of Macedonia is based on the 
provisions of Council Regulatio n (EC) No. 533/2004. It lists short- and medium term 
priorities for the former Yugoslav Republic of Macedonia preparations for further integration 
with the European Union iden tified in the Commission’s 2004 A nnual Report and serves as a 
checklist against which to measure progress.  The European Partnership for the former 
Yugoslav Republic of Macedonia refl ects its current stage of prepar ation and is tailored to its 
needs. The former Yugoslav Republic of Maced onia is expected to respond to the European 
Partnership by preparing a plan with a timetable and details of  how it intends to address the 
European Partnership’s priori ties. The progress in implementing the priorities will be 
monitored regularly by the Commission, notably  in the SAp Annual Reports and through the 
structures set up under the SAp.  
The European Partnership prio rities should form the basis for programming of the financial 
resources making up Community assistance, which will continue to be the assistance provided 
for under existing financial instrument(s), in particular Council Regulation (EC) No 
2666/2000 of 5 December 2000 (CARDS). 
The proposed Council Decision ha s no financial implications. 
In view of the above, the Commission invite s the Council to adopt the attached decision. 
 
 3    Proposal for a 
COUNCIL DECISION 
on the principles, priorities, and conditions contained in the European Partnership with 
the former Yugoslav Republic of Macedonia 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty esta blishing the European Community, 
Having regard to Council Regulation (EC) No  533/2004 on the establishment of European 
Partnerships in the framework of the Stabilisation and Association process1 and in particular 
to Article 2 thereof, 
Having regard to the proposal from the Commission, Whereas: (1) The Thessaloniki European Counc il of 19 and 20 June  2003 endorsed the 
“Thessaloniki Agenda for the Wester n Balkans: moving towards European 
integration” where the drawing-up of Europ ean Partnerships is mentioned as one of 
the means to intensify the Stabi lisation and Association process; 
(2) Council Regulation (EC) No 533/2004 sets ou t that the Council is to decide, by a 
qualified majority and following a proposal from the Commission, on the principles, 
priorities and conditions to be contained in  the European Partners hips, as well as any 
subsequent adjustments; 
(3) Council Regulation (EC) No 533/2004 states that the follow up of the implementation 
of the European Partnershi ps will be ensured through th e mechanisms established 
under the Stabilisation and Association process, notably the Annual Reports; 
(4) The 2004 Commission's Annual Report presents  an analysis of the former Yugoslav 
Republic of Macedonia’s prepara tions for further integration into the European Union 
and identifies a number of priority areas for further work; 
(5) In order to prepare for further integr ation into the European Union, the former 
Yugoslav Republic of Macedonia should develop a plan with a timetable and details in 
terms of measures the former Yugoslav Republ ic of Macedonia intends to take to this 
end. 
                                                
 
1 OJ L 
 
 4    HAS DECIDED AS FOLLOWS:  
Article 1 
In accordance with Article 1 of Council Regulation (EC) No 533/2004, the principles, 
priorities and conditions in the European Partnership for the former Yugoslav Republic of Macedonia are set out in the anne x hereto, which forms an inte gral part of this Decision 
Article 2 
The implementation of the European Partnership shall be examined through the mechanisms 
established under the Stabilisat ion and Association process. 
Article 3 
This Decision shall take effect on the third day following its publication in the Official 
Journal of the European Communities. 
Done at Brussels,  
 For the Council 
 The President   
 
 5    ANNEX  
1. I NTRODUCTION  
The Thessaloniki Agenda identifies ways a nd means of intensifyi ng the Stabilisation 
and Association process, inter alia through the introduc tion of European 
Partnerships. 
Based on the Commission’s Annual Report, th e purpose of the European Partnership 
for the former Yugoslav Republic of Macedonia  is to identify priorities for action in 
order to support efforts to move closer to  the European Union within a coherent 
framework. The priorities are adapted to the former Yugoslav Republic of 
Macedonia’s specific needs and stage of  preparation and will be updated as 
necessary. The European Partnership also pr ovides guidance for fi nancial assistance 
to the former Yugoslav Republic of Macedonia. 
It is expected that the former Yugoslav  Republic of Macedoni a will adopt a plan 
including a timetable and details in terms of  how they intend to address the European 
Partnership priorities. The plan should also  indicate ways to pur sue the Thessaloniki 
agenda, the priorities on fighting organise d crime and corruption identified at the 
2002 London Conference and at the Ministerial meeting held in Brussels on 28 November 2003 in the framework of the EU-Western Balkans Forum and the measures presented by each of the Western Balkan countries at  the meeting of 5 
November 2003 in Belgrade as a follow-up to the Ohrid Conference on integrated 
border management. 
2. P
RINCIPLES  
The Stabilisation and Association process remains the framework for the European 
course of the Western Balkan countries,  all the way to their future accession. 
The main priorities identifi ed for the former Yugoslav Republic of M acedonia relate 
to its capacity to meet th e criteria set by the Cope nhagen Council of 1993 and the 
conditions set for the Stabilisation and A ssociation process, notably the conditions 
defined by the Council in its Conclusions  of 29 April 1997 and 21-22 June 1999, the 
content of the final declaration of the Zagreb Summit of 24 November 2000 and the 
Thessaloniki agenda. 
3. P RIORITIES  
The Commission’s Annual Report assesses pr ogress made and notes areas where the 
country needs to increase its efforts. The prio rities listed in this European Partnership 
have been selected on the basis that it is re alistic to expect that the former Yugoslav 
Republic of Macedonia can complete them or  take them substantially forward over 
the next years. A distinction is made between short-term priorities, which are 
expected to be accomplished within one to  two years, and medium-term priorities, 
which are expected to be accomplishe d within three to four years. 
 
 6    The European Partnership indicates the main  priority areas for the former Yugoslav 
Republic of Macedonia’s preparations for further integration into the European 
Union, based on the analysis in the 2004 Annu al Report. It should be recalled that 
where legislation is concer ned, incorporation of the acquis  into legislation is not in 
itself sufficient; it will also be necessary  to prepare for its full implementation. 
3.1. Short Term 
POLITICAL  SITUATION  
DEMOCRACY AND RULE OF LAW  
• Ensure the functioning of State institutions in all the territory. 
• Implement the Ohrid Framework Agreement - Implement the legislation already 
adopted to implement the Framework Agreement (FA). Adopt remaining 
legislation required by the FA , in particular adopt and implement the Laws on the 
Territorial Organization, Municipal Finan ce and the City of Skopje. Achieve rapid 
progress in the implementation of the de centralisation process to allow proper 
local elections as scheduled, in partic ular strengthening the municipalities’ 
capacity in financial management and ma nagement of transferred competences 
and assets through training, consultancy a nd provision of equipment. In parallel, 
strengthen administrative capacities to supe rvise and facilitate the decentralisation 
process, including at central level, in particular of th e Ministry of Local Self-
Government and of the Ministry of Finance in relation to fiscal decentralization as 
well as the line ministries in their own areas of competence. Ensure that appropriate budgetary resources are allocate d in order to ensure a smooth transfer 
of competencies. Adopt a medium term stra tegic plan for equitable representation 
of minorities, including ad equate budgetary means, and ensure speedy 
implementation. Take further measures to  ensure the implementation of the FA 
provisions on the Use of Language  and on community symbols. Improve the 
monitoring and evaluation capacity of the central government. Enhance efforts to 
revitalize former crisis areas.  
• Improve the functioning of the public administration - Implement fully the Law 
on Civil Servants. Further develop the Agency for Civil Servants. Develop 
appropriate strategic planning and related allocation of re sources in all Ministries 
and at Governmental level. Implement the Strategic Development Plan of the 
General Secretariat. Complete ongoing f unctional analyses in all public bodies 
and take measures to implement their recommendations, taking into account the decentralisation process. Improve administ rative transparency and adopt a law on 
public access to information. Reform the Administrative Procedures and Administrative Disputes laws  in order to strengthen the enforcement of citizens’ 
rights. Implement fully the 2003 Law on the Ombudsman and complete the reform of the Ombudsman’s office. Ensure that the Ombudsman’s recommendations are followed up. Encourag e the development of civil society 
including social partners’ organisations  and their active participation in the 
decision making processes. 
• Strengthen the ju dicial system - Prepare  a comprehensive reform of the Judiciary. 
Review the current system of selection, appointment and promotion of judges and 
prosecutors with a view to  ensuring political independe nce, irremovability of 
 
 7    judges and career development based upon me rit. Prepare necessary constitutional 
and legislative amendments to guarantee the independence of the body in charge 
of their selection and career development.  Simplify court procedures. Improve the 
enforcement of the courts’ decisions.  Introduce alternative dispute resolution 
mechanisms including arbitration and mediation in criminal matters. Ensure the appropriate enforcement of property rights and court rulings in the area of civil 
law. Strengthen the institutional capacity  to train judges and prosecutors and 
prepare the setting-up of a National School for Magistrates. Provide for adequate 
initial and vocational training schemes. 
• Improve the fight against corruption - Implement the strategy for the fight 
against corruption. Increase institutional capacity to investigate and prosecute 
corruption. Improve coordination and en sure cooperation between the law 
enforcement agencies and the State Co mmission on the Prevention of Corruption. 
Improve exchange of intellig ence on corruption-related cases between the services 
in charge of identifying, investigati ng and prosecuting established cases. 
Strengthen and implement the rules applying to officials’ declaration of assets, 
conflict of interest, transparency in public  procurement and internal and external 
control of the administra tion. Adopt appropriate legi slation on financing of 
political parties.  
H
UMAN RIGHTS AND THE PROTECTION OF MINORITIES  
• Improve the respect of human rights by law enforcement bodies - Ensure full 
compliance with the European Convention on Human Rights, the Convention for 
the Prevention of Torture and Inhuman a nd Degrading Treatment or Punishment 
and other relevant international conventi ons. Implement the Code of Ethics and 
ensure that irregularities are prosecute d. Deal with previous  mistreatment cases 
through appropriate prosecutions. Upgrade in ternal controls and enforcement of 
professional standards in all law enforcem ent agencies and judiciary and prison 
administrations. Respect pre-trial dete ntion rules. Promote police, judges, 
prosecutors and othe r law enforcement bodies awareness of their obligations in 
terms of human rights, and ensure that they implement them in accordance with 
international requirements.  
• Promote freedom of ex pression and media - Review the legal framework for 
broadcasting to prevent political interferen ce. Take concrete steps to ensure the 
independence of media regul atory bodies. Review the legislation on defamation to 
reflect European standards and the jurisp rudence of the European Court of Human 
Rights.  
• Ensure respect of minority rights -  Ensure that the proce ss of establishing a third 
State University in Tetovo is completed in a way that creates  synergy with the 
South East European University and provides for academic standards in line with the Bologna declaration. 
R
EGIONAL COOPERATION AND INTERNATIONAL COOPERATION  
• Promote regional cooperation -  Comply with the Stabilisation and Association 
process requirements and Thessaloniki  commitments in terms of regional 
cooperation. Ensure implementation of all regional free trade agreements. Pursue 
the conclusion of agreements with ne ighbouring countries, including on cross 
 
 8    border cooperation as regards the fight ag ainst organised crim e, trafficking and 
smuggling, judicial co-operation, border  management, environment and energy, 
and ensure their effective implementation.  
• Ensure proper implementation of the St abilisation and Association Agreement 
in the field of regi onal co-operation - Conclude negotiations with Croatia on the 
bilateral convention on regional cooperation.  
• Adopt an appropriate legal framework on cooperation with the International 
Criminal Tribunal for the former Yugoslavia.  
• Implement international agreements concluded by the former Yugoslav 
Republic of Macedonia - Guarantee the respect of commitments undertaken by 
the former Yugoslav Republic of Macedonia in  the framework of its relations with 
the EU.  
ECONOMIC SITUATION  
FREE MARKET ECONOMY AND STRUCTURAL REFORMS  
• Sustain macroeconomic stability - Maintain a stable macroeconomic framework 
in the context of the International Monetary Fund programme. Conclude an 
agreement on a follow-up programme. 
• Pursue economic reforms -  Introduce comprehensive market-oriented reforms 
aimed at reducing the role of the Stat e in the economy, and establish a level 
playing field for all economic actors allo wing them to operate in a stable and 
predictable environment. Cl arify and enforce property rights, including in the 
context of privatisation. 
• Improve the business environment - Adopt and implement an improved legal 
framework on company law.  Upgrade the efficiency of the administrative and 
judicial system and streamline the effici ency of bankruptcy pr ocedures. Develop a 
programme to simplify and reduce licen sing procedures and improve the 
transparency of all administrative pr ocedures impacting on enterprises .  
• Employment policy - Develop and implement a comprehensive strategy to 
promote employment and reduce unemploymen t, in particular with regard to 
vocational training and labour market refo rms, involving all relevant actors. 
Respect core labour standards and ensure  their effective enforcement (including 
freedom of association a nd right to collective barg aining, non-discrimination in 
employment and occupation).  
MANAGEMENT OF PUBLIC FINANCES  
• Improve public finance management -  Implement fiscal decentralisation. 
Implement the wage decompression of civ il service salary structure. Strengthen 
internal control and audit capacity in the Ministry of Finance and broaden controls 
applied to the public administration as a whole. Review the La w on State Audit to 
align it to EU standards and strengthen the State Audit Office as an independent 
State institution with an independent budge t. Exert greater cont rol and supervision 
 
 9    of expenditure of extra-budgetary funds. Establish an effective Treasury Bill and 
Bond market. 
EUROPEAN STANDARDS  
INTERNAL MARKET AND TRADE  
• Complete negotiations with the EU on a Protocol to the SAA to adapt it to the 
upcoming EU enlargement before 1 May 2004 . 
• Movement of goods -  Make further progress on adopting European technical 
norms and standards. Implement the 2002 le gislation on standard s certification, 
metrology and conformity assessment, including the adoption of secondary legislation and the strengthening of admini strative capacity to ensure enforcement. 
Progress with regard to the utilisa tion of the Combined Nomenclature. 
• Financial services -  Improve prudential re gulatory framework and supervision of 
this sector. 
• Personal data protection -  Amend the legislation on prot ection of personal data in 
line with EU standards and set up an independent authority charged with the 
supervision of its implementation. 
• Customs – Achieve significant resu lts in the fight agains t fraud, smuggling and 
trafficking Further strengthen the custom s administration and ensure its proper 
functioning in order to reach  EU standards. Carry forward the reform process and 
ensure the proper implementation of the Strategic Plan 2004-2008. In particular, 
ensure the proper operation of the new Pr ofessional Standards Unit and prosecute 
corruption cases within the customs Service. Strengthen administrative 
cooperation in the customs sector. Stre ngthen the services involved in the 
implementation of trade agreements and in pa rticular with regard to the control of 
preferential rules of origin. 
• Taxation –  Start reviewing the present tax le gislation and the administrative 
procedures in order to ensure effective and non-discriminatory enforcement of tax legislation. Eliminate the pr esent different excise duty rates for tobacco products 
based on the origin of the goods (domes tic or imported). Proceed with the ongoing 
reform of the tax administration, and in pa rticular strengthen its  capacity at local 
level for collection and control of the tax due. Address th e problem of the 
increasing level of VAT refund arrears. Co mmit to the principles of the Code of 
Conduct for business taxation and ensure that  new tax measures are in conformity 
with these principles. 
• Competition and state aids -  Adopt legislation  against the restriction of 
competition. Entrust the competition authority with efficient means to directly enforce the law and impose sanctions . Promote transparency and basic 
enforcement of the State aid principles. Promote competition policy by fostering liberalisation, improving public procurement practices, ensuring a pro-competitive approach to privatisation. Adopt secondary  legislation on state aids and strengthen 
the administrative capacity to implement the legal framework. 
 
 10    • Public procurement - Improve the current legal framework on public 
procurement in line with the EC acquis  and set up an Agency for Public 
Procurement able to ensure the implementation of the legal framework. 
• Intellectual, Industrial and Commercial Property rights - Adopt secondary 
legislation relating to the Law on Indus trial Property and implement the law. 
Continue improvement of legisla tion Copyright and Related Rights. 
SECTORAL POLICIES  
• Industry and SMEs - Adopt the restructuring and conversion programme for the 
steel industry in line with the competition related EC acquis  to create efficient and 
competitive firms. Implement the principles of the European Charter for Small Enterprises and implement targets se t for 2004. Improve access of Small and 
Medium sized Enterprises to financia l and non-financial se rvices. Continue 
preparation of a national guarantee fund. 
• Energy –  Develop the newly-established Ener gy Regulatory Comm ission in order 
to meet EU guidelines and avoid a monopo listic situation emerging in the energy 
sector. Amend the Energy Law establishi ng the Transmission System Operator 
and addressing the Public Service Obligations.  
• Telecommunication –  Ensure that the electronic communications sector is 
liberalised effectively in cluding the strengthening of  regulatory bodies and the 
adoption of suitable laws and policies for the sector.  
• Environment - Adopt Laws on environment, waste management, water 
management, protection of natural res ources and air quality in line with EU 
standards. 
C
OOPERATION IN JUSTICE AND HOME AFFAIRS  
• Border management - As a follow-up to the Ohrid regional Conference on border 
security and management in May 2003, implement the short term measures which 
were adopted by the Government and pres ented at the meeting of JHA ministers 
within the framework of the EU-Weste rn Balkans Forum on 28 November 2003. 
Implement the Integrated Border Management strategy adopted in December 2003 in cooperation between the agencies c oncerned. Strengthen the coordination 
between the Ministry of Interior and th e Ministry of Defence to facilitate the 
transfer of competences on border control to the border police, and ensure the 
institutional development of  border police service.  
• Migration and asylum policies - Implement the 2003 Law on Asylum. Establish 
an independent and transparent appeal and review panel for asylum seekers. 
Adopt appropriate by-laws for the implementation and development of reception policies and facilities. Revise  the migration legislation, in particular review the 
legislation related to legal and illega l immigration and tr afficking in human 
beings. Establish a common strategy to  fight illegal immigration and the 
trafficking of human beings, integrating the regional dimension. Adopt a new Law 
on Foreigners. 
 
 11    • Police - Ensure that the police services, in particular the special police forces, 
behave according to international standa rds and practices. Clarify the respective 
roles of the Ministry of Interior and the Ministry of Defence in crisis management 
situations in line with Eu ropean practices. Adopt and implement an Action Plan 
for the reform of the police, taking into consideration equitabl e representation at 
all levels, and plan the necessary resources for its implementation. Take urgent measures to reform human resources ma nagement. Improve co-operation with the 
Judiciary. Enhance training capacities and ensure the proper functioning of the 
Police Academy, including the proper a llocation of budgetary resources. Reduce 
corruption and irregular be haviour within police ranks . Promote cooperation with 
Interpol and other international law en forcement organisation, in particular 
through improved consultation of their databases.  
• Organised crime, trafficking, drugs,  money laundering and terrorism -  
Implement the action-oriented measur es that have been adopted by the 
Government and presented at the EU -WB JHA ministerial meeting of 28 
November 2003. Complete the ratific ation of the 2002 UN Convention on 
Organised Crime and its related protocol s on small arms, trafficking in human 
beings and smuggling of migrants, a nd ensure implementation. Enhance co-
ordination between law-enforcement bodies involved in fighting organised crime. 
Enhance intelligence and risk analysis and set up a central criminal intelligence unit, working in cooperation with all law enforcement agencies. Adopt the 
legislative changes needed to allow for the use of special investigative means. 
Develop witness protection programmes. In crease capacity to fight against drug 
trafficking. Develop a national drugs stra tegy in line with th e EU Drugs Strategy 
and Action Plan on Drugs. Clarify the resp ective roles of the Directorate against 
Money Laundering (DML) and of the Financial Police and upgrade the DML to the level of a financial intelligence unit in  line with European standards. Take the 
necessary steps to prepar e for the conclusion of an agreement with Europol. 
Increase international cooperation a nd implement releva nt international 
conventions on terrorism. Improve cooperation and exchange of information between police and intelligence services wi thin the State and with other states. 
Prevent the financing and prepar ation of acts of terrorism.  
3.2. Medium Term 
P
OLITICAL SITUATION  
DEMOCRACY AND THE RULE OF LAW  
• Implement the Ohrid Framework Agreement - Implement the strategic plan for 
equitable representation of minorities.  Ensure the proper functioning of the 
decentralised levels of government. Sustai n efforts in revitalizing former crisis 
areas.  
• Further improve the functioning of the administration - Further  promote 
independence of the administration, transp arency in recruitment procedures and 
career development based on merit, prof essionalism and equitable representation 
of all communities. Pursue th e reform of the public administration, in particular in 
view of the outcome of the “functional” analysis. Further develop the capacity of 
Ministries to perform a range of co mmon functions needed to support the 
coordinating role for the General Secretariat and other central agencies (policy 
 
 12    development, strategic planning, financial management, personnel management, 
information technology). Ensure that the sectors in the Administration responsible 
for the implementation of the SAA provisi ons are duly equipped to carry out their 
duties. Further encourage the development of civil society including social partners organisations and their particip ation in the decision making process.  
• Further strengthen th e judicial system - Implement a comprehensive reform of 
the judicial system, including the necessary  changes in the Constitution and in the 
legal framework, and strengthen the overa ll capacity of the judicial system. 
Ensure the effective functioning of the National School for Magistrates. Enhance 
training on EU legislation, cross-border cooperation in criminal matters and 
practices. Decrease the backlog of cases  in all courts. Ensure provision of 
appropriate equipment and well-trained a nd specialised administrative staff with 
the appropriate status. Ensure sufficien t budgetary resources to guarantee access 
to justice and legal aid. Increase salaries.  
• Further improve the fight against corruption - Achieve significant, tangible 
results in the fight against corruption, at all levels, through adequate legislation 
and the proper implementation of the national programme against corruption. 
H
UMAN RIGHTS AND THE PROTECTION OF MINORITIES  
• Ensure the respect of human righ ts by law enforcement bodies - Ensure that the  
police, judges, prosecutors and other law enforcement bodies are fully aware of their obligations and that they are impl emented. Ensure that human dignity is 
respected in detention centres and prisons.  
• Further promote freedom of  expression and media -  Ensure that the laws in the 
media sector are in line with the European standards and are properly 
implemented.  
• Further promote the principle of non-di scrimination and equal representation -
Foster employment opportunities for all ethnic communities and facilitate access 
to education. Promote higher education for minorities and ensure that higher education in Albanian respects European  standards as defined in the Bologna 
declaration. 
R
EGIONAL AND INTERNATIONAL CO-OPERATION  
• Further promote regional cooperation -  Maintain a constructive and balanced 
regional policy which promotes dial ogue, stability, good neighbourhood and co-
operation. Implement the Memorandum of Understanding of the South East 
Europe (SEE) Core Regional Transport Network. Implement the commitments undertaken in the framework of the 2003 Athens Memorandum of Understanding 
on the Regional Energy Market in SEE, a nd prepare for the establishment of the 
Integrated Regional Energy Market.  
• Implement international agreements concluded by the former Yugoslav 
Republic of Macedonia - Fully implement international agreements and 
conventions ratified by the former Yugosla v Republic of Macedoni a, in particular 
conventions in the fields of Justice a nd Home Affairs, human  and minority rights 
and trade. 
 
 13    ECONOMIC SITUATION  
FREE MARKET ECONOMY AND STRUCTURAL REFORMS  
• Ensure sustainability of economic reforms  
• Further improve the business environment – Ensure effective implementation of 
main international and EC standards on company law, accounting and auditing. 
Further upgrade the efficiency of the ad ministrative and judicial system, fully 
implement the programme to simplify and reduce licensing procedures and further 
improve the transparency of all administrative procedures impacting on enterprises. Ensure the enforcement of cred itors’ rights within a transparent legal 
framework and through reforming  the cadastre. Promote the implementation of a 
code on corporate governance. 
• Employment and social policy - Develop a social policy to promote social 
cohesion, effective social protection sy stems, improve social standards and 
address poverty and social  exclusion. Further devel op an employment policy, 
involving all relevant actors.  
M
ANAGEMENT OF PUBLIC FINANCES  
• Further improve public finances and their management - Enhance public 
internal and external financial control. Remove the main obstacles for the 
development of the second pillar of the pension system, in particular the financing of the transition from a solidarity system  to a mandatory accumulation system.  
• Fraud  - Establish effective procedures for the detection, treatm ent and follow-up 
of cases of (suspected) fraud and othe r irregularities affecting national and 
international funds. 
E
UROPEAN STANDARDS  
INTERNAL MARKET AND TRADE  
• Movement of goods -  Reinforce the Government’s capacity to implement the 
SAA, in particular through developing inte rnal expertise to a ssess whether draft 
legislation is in line with the EC acquis .  
• Financial services –  Ensure effective implementation of independent and well-
trained supervisory authorities in acco rdance with interna tionally recognised 
standards 
• Personal data protection -  Continue institutional st rengthening of the data 
protection authority in line w ith EU standards and practices. 
• Customs - Further strengthen the Customs Admi nistration and ensure its proper 
functioning in order to reach  EU standards. Implement the Strategic Plan 2004-
2008. .  
 
 14    • Taxation –  Continue strengthening the tax administration, in particular tax 
collection and control, and ensure its proper functioning in order to reach EU 
standards. Develop an audit stra tegy and adequate IT systems. 
• Competition and state aid -  Implement the legislation  against the restriction of 
competition. Further strengthen the competition authority by giving the power to enforce the law and pronounce sanctions. Further promote transparency in State aid.  
• Public procurement -  Achieve fully operational public procurement structures 
which ensure the conduct of public proc urement procedures in full accordance 
with the law and SAA principles.  
• Intellectual Property Rights -  Ensure the implementation of the legislation on 
intellectual and industrial property. 
S
ECTORAL POLICIES  
• Industry and SMEs - Implement the restructuring and conversion programme for 
the steel industry. Complete the implementation of the strategy for the 
implementation of the European Charter for Small Enterprises. Promote SMEs’ access to credit facilities. Further de velop experience of non-financial SME 
support mechanisms (i.e. clusters and technology parks). Implement the FIAS 
action plan on reduction of  barriers to investment. 
• Telecommunication –  Transpose and implement  the new EU framework for 
electronic communications.  
• Agriculture - Adopt and implement structural refo rms in the field of agriculture. 
Adopt and implement comprehensive re form including border and internal 
inspection services and pr actices regarding plant and animal health, policy 
analysis, sector information systems and st atistics and co-ordin ation functions for 
existing public- and private-sector institutions and services.  
• Environment – Further approximate legislati on with European standards. 
Implement the legislation adopted. Improve  environmental monitoring and further 
build administrative capacity. Integrate environmental concerns in various policies, in particular th rough developing Environmenta l Impact Assessments in 
line with European standards. 
C
O-OPERATION IN JUSTICE AND HOME AFFAIRS  
• Border management - Complete the implementation of the Integrated Border 
Management strategy in cooperation between the competent agencies.  
• Migration and Asylum policies - Strengthen the development of national asylum 
structures in line with international and European standards to enable them to 
provide appropriate protection and assist ance to asylum seekers and refugees. 
Implement the strategy to fight illega l immigration and trafficking of human 
beings. 
 
 15    • Police - Complete the implementation of th e reform of the police. Enhance 
training to fight new forms of criminal ity, including computer and trans-border 
crime. Further improve police information systems. 
• Organised crime, trafficking, dr ugs, and money laundering - Achieve significant 
results in the fight against organised crim inality. Ensure the implementation of the 
UN instruments against organised crime. Fu rther improve the State’s capacity to 
prevent and combat crime, through c oordination between law enforcement 
agencies and with the judiciary, increased an alytical capacity to deal with criminal 
intelligence and further training in new forms of criminality. Decrease the number of illicit small arms and light weapons. Ensure the full operation of the financial 
intelligence unit in line with European st andards. Implement the national drugs 
strategy. Reinforce the fight against economic and financial crime (including money-laundering and counterfe iting of currencies) and fraud as well as improve 
the related national legislation. 
4. P
ROGRAMMING  
Community assistance under the Stabilisation and Association process to the Western Balkan 
countries will be provided  by the relevant financial instrument s, and in particular by Council 
Regulation (EC) No 2666/20002; accordingly, this Decision will have no financial 
implications. In addition the former Yugoslav Republic of Macedonia will have access to funding from multi-country and horizontal progra mmes. The Commission is working with the 
European Investment Bank and the Internationa l Financial Institutions, in particular the 
European Bank for Reconstruction and Develo pment and the World Bank, with a view to 
facilitate the co-financing of projects relating to the Stabilisation and Association process. 
5. C
ONDITIONALITY  
Community assistance under the Stabilisation and Association process to the Western Balkan 
countries is conditional on furthe r progress in satisfying the Cope nhagen political criteria and 
in particular progress in meeting the specific prio rities of this European Partnership. Failure to 
respect these general co nditions could lead the Council to take appropriate measures on the 
basis of Article 5 of Council Regulation (EC) No 2666/2000.  
Community assistance shall also be subject to  the conditions defined by the Council in its 
Conclusions of 29 April 1997 and 21-22 June 1999, in particular as re gards the recipients’ 
undertaking to carry out democratic, economic and institutional reforms. 
6. M ONITORING  
The follow up of the European Partnership is ensured through th e framework of the 
mechanisms established under th e Stabilisation and Associati on process, notably the Annual 
Report on the Stabilisation and Association process. 
                                                 
2 OJ L 306, 7.12.2000, p.1.