on the conclusion, on behalf of the European Union, of the Treaty establishing the Transport Community

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

A well-functioning transport system connecting the Union and the neighbouring countries is essential for sustainable economic growth and the wellbeing of all citizens. Transport cooperation with the Western Balkans countries had been governed by the South East European Transport Observatory (SEETO), a the Memorandum of Understanding (MoU) of 11 June 2004 signed by Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia, the United Nations Mission in Kosovo and the Commission. The main objective of the MoU was to extend the Trans-European Tranport Network (TEN-T) and related policies to the Western Balkans.

The MoU has, however, shown limits and following an assessment made by the Commission in 2008, a more comprehensive cooperation approach – involving other transport policies and transport related areas – was suggested. In this context, based on the positive experience with the implementation of the Energy Community Treaty, the Commission proposed to take inspiration from this example for the purposes of the transport sector and negotiate an agreement providing that the legislation, standards and technical specifications applied by the Western Balkans partners be made compatible with those of the Union.

The Council authorised the Commission on 12 June 2008 and on 9 October 2009 to open negotiations on behalf of the European Union with Albania, Bosnia and Herzegovina, Kosovo, the former Yugoslav Republic of Macedonia, Montenegro and Serbia, on a Treaty establishing the Transport Community ('TCT').

The discussions at technical level were successfully completed in July 2010. However, due to the impossibility to agree on the appropriate designation of one of the parties, the finalisation of the TCT remained stalled for almost three years. The discussions were resumed in 2013 and an agreement on the final version of the TCT was reached in 2016.

The TCT was signed on behalf of the Union on 12 July and 9 October 2017, subject to its conclusion at a later date, in accordance with Council Decision 2017/1937 which authorised its signing and provisional application.

All South East European Parties except Kosovo have already ratified the TCT. In the meantime, the TCT is applied provisionally among the Parties in accordance with Article 41(3) of the TCT.

•General context

Strengthening regional cooperation within the Western Balkans is a key element for political stability, security, economic prosperity and social development in the region. In this context, the TCT will benefit the accession framework for the Western Balkans by speeding up the alignment of national legislation with the Union acquis on transport and related areas. The TCT will also be a key instrument to foster the reform process in the context of the Western Balkan Six initiative as well as the implementation of the TEN-T as extended to the Western Balkans.

•Consistency with existing policy provisions in the policy area

The TCT is fully compliant with existing transport provisions and will replace the existing cooperation framework, the South East European Transport Observatory (SEETO), which is in place since 2004.

•Consistency with other Union policies and objectives

The TCT is fully compliant with the policies and objectives set up in the framework of the cooperation with the South East European partners or in the framework of the enlargement process. The TCT will play a key role in supporting these policies by helping the Western Balkans countries to move closer to the Union transport acquis.

The TCT is also fully aligned with all relevant transport related policies such as environment and social policies.

2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

Not applicable

3. LEGAL ELEMENTS OF THE PROPOSAL