COMMISSION OF THE EUROPEAN COMVIUNITIES 
C0M(94) 427 final 
Brussels, 19.10.1994 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
STRENGTHENING THE MEDITERRANEAN POLICY 
OF THE EUROPEAN UNION: 
ESTABLISHING A EURO-MEDITERRANEAN PARTNERSHIP 
EXECUTIVE SUMMARY 
1. As pointed out by the Lisbon European Council in June 1992, the southern and 
eastern shores of the Mediterranean, as well as the Middle East, are geographical 
areas in relation to which the Union has strong interests in terms of security and 
social stability. Consistent with this view, the Corfu European Council of June 
1994 and the subsequent Foreign Affairs Council invited the Commission to 
submit guidelines for the short and medium-term strengthening of the Union's 
Mediterranean policy for peace, stability, security and the socio-economic 
development of the region. The Council should consider the possibility of a 
Euro-Mediterranean Conference in 1995. 
2. The present communication responds to this request. It represents a contribution 
to discussion at such a Conference. It deals primarily with relations with the 
Maghreb and Mashrak countries and Israel, while noting the importance of the 
Community's particular relations with Turkey, as well as those with Cyprus and 
Malta in the perspective of their accession to the Community. Relations with 
the countries of the former Yugoslavia are beyond the scope of this 
communication. 
3. Since 1989 the Community has focussed its attention on policies towards Central 
and Eastern European countries (CEECs) and towards the Mediterranean region. 
Relations with each region are based on its specific needs and capacities. The 
pre-accession strategy with the CEECs in no way interferes with the 
Community's commitment towards the Mediterranean region. 
4. There are many areas of Euro-Mediterranean interdependence, notably 
environment, energy, migration, trade and investment. The Community has a 
vital interest in helping Mediterranean countries meet the challenges they face. 
5. The objective should be to work towards a Euro-Mediterranean Partnership. 
This would start with a process of progressive establishment of free trade, 
supported by substantial financial aid. It would then develop through closer 
political and economic cooperation, towards a close association, the content of 
which will be jointly defined at a later stage. 
6. Progress towards a Euro-Mediterranean zone of peace and stability would be 
initiated through close political dialogue based on respect for democracy, good 
governance and human rights. The dialogue should be extended to security 
issues, leading to the introduction of measures to consqrfidate peace. 
7. In the economic sphere the Communtiy should promote, in the framework of the 
WTO, free trade with individual Mediterranean partner countries, which would 
require the countries to embark on a process of modernisation of their economies 
and increased competitiveness. This process would require a long transition and 
the willingness of the Community to offer help, particularly in terms of aid for 
structural adjustment and economic restructuring. In the long-term, this would 
lead to the establishment of the largest free trade area in the world, covering the 
enlarged Community, any Central and Eastern European countries not by then 
Members, and all Mediterranean non-Member countries. 
8. Beyond free trade, the Community should be prepared to enter into wide-ranging 
areas of cooperation with Mediterranean countries, to be defined jointly with 
them. These could cover industrial cooperation, energy, environment, 
information and communication technologies, services, capital, science and 
technology, decentralised cooperation, drug trafficking, illegal immigration, 
tourism. 
9. Operational conclusions should cover: 
- early conclusion of negotations underway with Israel, Morocco, Tunisia and 
Turkey; 
- increase in technical and financial assistance, inlcuding the establishment of 
an overall MED aid programme, requiring total resources of 5,500 MECU 
for 1995-99; 
- encouragement of private investment; 
- economic policy dialogue; 
- measures to promote regional cooperation (intra-regional trade, cumulation of 
origin rules, Community support for sub-regional groupings). 
10. The Commission endorses a Euro-Mediterranean Conference in 1995 to agree on 
political and economic guidelines for future relations, which could lead to setting 
up an institutional framework. 
I. Introduction 
1 The Lisbon European Council of June 1992 stated that "the southern and eastern 
shores of the Mediterranean, as well as the Middle East, are geographical areas 
in relation to which the Union has strong interests in terms of security and social 
stability". Consistent with this view, the conclusions of the Corfu European 
Council gave "a mandate to the Council to evaluate, together with the 
Commission, the global policy of the European Union in the Mediterranean 
region and possible initiatives to strengthen this policy in the short and medium-
term, bearing in mind the possibility of convening a conference attended by the 
European Union and its Mediterranean partners". 
Following up these conclusions, the Foreign Affairs Council on July 18, 1994, 
invited the Commission to submit guidelines for the short and medium-term 
strengthening of the Union's Mediterranean policy for peace, stability, security 
and the socio-economic development of the region. This should enable the 
European Council in Essen to adopt a common stand on the future of Euro-
Mediterranean relations. The Council would consider the possibility of holding 
a Conference in which the Union and its Mediterranean partners would 
participate. 
The present communication responds to this request. It deals primarily with 
relations with the Maghreb and Mashrak countries and Israel, while noting the 
importance of the Community's particular relations with Turkey, as well as those 
with Cyprus and Malta in the perspective of their accession to the Community 
Relations with the countries of the former Yugoslavia are beyond the scope of 
this communication. 
2 Since 1989 the Community has as a result of rapid geo-political changes, 
focussed its attention on the policies needed to support economic development, 
both in Central and Eastern Europe, and in the Mediterranean region. It has 
assisted the CEECs in their efforts to progressively integrate their economies into 
those of Western Europe and into the world market economy. 
The Community's policies towards central and eastern Europe on the one hand 
and towards its southern partners on the other spring from different geographic, 
historical, political, economic and cultural circumstances. It is the Community's 
policy to base its relations with each region on its specific needs and capacities. 
This communication demonstrates that the pre-accession strategy the Community 
is pursuing with countries in central and eastern Europe in no way interferes 
with its commitment to developing closer ties with its Mediterranean neighbours 
3. This communication will: 
- set out the challenges and the Community's interests in the area (Annex 1) to 
which the Commission already drew attention in 1989'* 
- recall the achievements and short-comings of the present Mediterranean policy 
(Annex 2); 
- set out the Commission's long-term vision of the future relationship between 
Europe and its southern neighbours in the Mediterranean and propose 
guidelines for its implementation; 
- make operational recommendations for short and medium-term actions for that 
vision to be progressively turned into reality by the early 21st century. 
II. Challenges and Priorities 
4. The Mediterranean basin constitutes an area of strategic importance for the 
Community. The peace and stability of the region are of the highest priority to 
Europe. 
To consolidate that peace and stability in the region, a number of challenges 
have to be faced, notably. 
- to support political reform, respect for human rights and freedom of 
expression as a means to contain extremism; 
- to promote economic reform, leading to sustained growth and improved living 
standards, a consequent diminution of violence and an easing of migratory 
pressures 
The Community and the Mediterranean partners share many areas of 
interdependence: nowhere is this more evident than in the safeguarding of the 
environmental heritage Europe's interests in the region are very varied, ranging 
among sectors such as energy supply, migration, trade and investment (Annex 4). 
As a further example, the problems caused by the production, trafficking and 
abuse of illicit drugs also require to be addressed cooperatively since there is a 
risk that they can give rise to mutual recrimination. 
Instability in the region would have negative consequences for all Union 
countries. The population in the Mediterranean non-Member countries could 
reach 400 million by the year 2035 with an increasing income gap (see Annex 
1), if present demographic developments are not rapidly counter-balanced and 
contained by a fast economic take-off and adequate population policies. The 
required economic take-off supposes substantial efforts to be accomplished by 
these countries by liberalising and restructuring further their economies as well 
ShC(Sl>) l'K>l Kmal of 21 
as the implementation by the Communtiy of policies aiding them to meet the 
political, economic and demographic challenges they face. 
A high proportion of the existing immigrant population in the Community 
originates from the area with which they often maintain close links and to 
whose economies they contribute through remittances If migratory pressures are 
not carefully managed through planned cooperation with the countries concerned 
they could all too easily give rise to friction, damaging both to international 
relations and the immigrant populations themselves. 
On the other hand, all Member States would benefit from greater stability and 
prosperity in the region. This would multiply trade and investment opportunities 
and reinforce the base for cooperation in political and economic fields. More 
particularly, at a time of globalisation and reinforced regionalism in North 
America and in Asia, the Community cannot renounce the benefits of integrating 
its southern neighbours under commonly accepted rules. Integration must take 
account of the need's of the Community's own poorer regions many of which are 
in the Mediterranean. 
At a moment when the peace process in the Middle East is progressing, while in 
Algeria stability has been undermined by political violence, it is timely to set out 
the possibilities for developing peace through cooperation, dialogue and mutual 
understanding 
Time is pressing, not only from a political but also from the economic point of 
view. It is, therefore, in the Community's vital interest to direct its efforts 
towards aiding these countries to meet the challenges they face 
5 The Communtiy has already undertaken significant policy actions to support the 
Mediterranean region as a whole, which were reinforced by the new 
Mediterranean policy for the years 1992-96 (for the evaluation of these actions 
see Annex 2). 
The Commission has set out a strategy for the Community's policy towards the 
Maghrebl the Mashrak and Israel3 and to support the Middle East peace 
process v With regard to the latter, three main elements are important: 
- a five year programme of support for the Occupied Territories, consisting of 
500 MECU in grants and EIB loans; 
- an offer to upgrade the Communtiy's bilateral relations with all the countries 
concerned, 
SEC(92)40 Final of 30 April 1992. 
COM(93)375 Final of 8 September 1993. 
*COM(93)458 Final of 29 September 1993. 
- support by the Community for regional cooperation, notably in the context of 
the Union's chairmanship of the Regional Economic Development Working 
Group of the multilateral track of the peace process. 
6 The evaluation of the overall Mediterranean policy so far shows that the results 
are mixed Free access to the Community market for industrial products has had 
positive effects, particularly in those countries which have successfully 
implemented economic reforms. However, even these countries have not so far 
been able to take advantage of the full integration of their economies into the 
global labour market, since many sectors have been sheltered behind high levels 
of tariff protection. 
The results of financial cooperation have similarly been mixed. Support for 
structural adjustment has had a significant effect in responding to specific needs, 
but has not been sufficient to make a major overall impact Actions aimed at 
linking the North and the South of the Mediterranean, so far constituting only a 
small proportion of the cooperation effort, have been widely welcomed and need 
to be reinforced. Experience has shown that the instruments used and the 
policies pursued have been too narrow in scope and insufficiently effective in 
comparison with the needs of the region. The resources placed at the disposal of 
the Mediterranean policy have fallen well short of responding to the challenges 
(for comparative figures, see Annex 3). 
III. Guidelines for Future Relations 
7. The Community's Mediterranean policy should be multi-dimensional and should 
encompass the many areas of interdependence. Its actions in the economic field 
need to be seen in the context of its political objectives. 
What is required is a long-term strategy. The Euro-Mediterranean Partnership, 
which must be thought of as an evolving framework, is a long-term objective 
which the elements presented in the present communication will bring closer to 
reality It is urgent to make a start now. 
The Union's policy should be directed towards support for establishing a zone of 
stability and security and creating the conditions for lasting and sustainable rapid 
economic development in the Mediterranean countries. With a clear 
commitment to economic reform, the countries concerned could achieve higher 
levels of employment and reduce the prosperity gap with the Community. This 
could best be facilitated by the progressive creation of a Euro-Mediterranean 
Economic Area, comprising as its main features progressive establishment of free 
trade and closer economic integration, accompanied by adequate support from 
the Union for the economic and social adjustments which this process will entail, 
as well as closer cooperation in the political and security fields 
(i) Towards a Euro-Mediterranean Zone of Political Stability and Security 
8 The principal thrust of the Union's Mediterranean policy is to achieve peace and 
stability in the region This goal should be pursued through all the means at the 
Union's disposal including the common foreign and security policy. To be 
effective the Union should, to the greatest extent possible, act as a whole rather 
than through isolated initiatives. 
8 
9. As stated in the conclusions of the Lisbon European Council of June 1992, "the 
southern and eastern shores of the Mediterranean as well as the Middle East are 
geographical areas, in relation to which the Union has strong interests, both in 
terms of security and social stability". At present political, economic and social 
conditions in a number of these countries are sources of instability leading to 
mass migration, fundamentalist extremism, terrorism, drugs and organised crime 
These have a harmful effect both on the region itself and on the Union. 
10. The Union has an interest in cooperating with the countries concerned to reduce 
these sources of instability. More generally, the Union should seek to promote a 
relationship of good neighbourliness, avoiding deepening the north-south gap 
between the EU and its Mediterranean partners and instead bringing the 
countries and peoples of the region closer together. 
A priority is to promote political dialogue between the Union and its 
Mediterranean partners, based on the respect of human rights and the principles 
of democracy, good governance, the rule of law which constitute an essential 
element of their relationship. 
As far as the common foreign and security policy is concerned, the Lisbon 
European Council identified the southern and eastern shores of the 
Mediterranean as a priority area for joint action. The new possibilities offered 
by the CFSP and by supporting Community activities should enable the Union to 
work together effectively with Mediterranean partners to improve stability and 
security in the region 
11 In the field of security, the proliferation of non-conventional weapons is a major 
cause for concern. Taking into account the Middle East peace process and the 
need to eliminate remaining threats to the security of countries in the region, the 
Union should make efforts to persuade all Mediterranean partners to renounce 
non-conventional military options. 
The political dialogue with the Union's Mediterranean partners should be 
reinforced and extended to security issues. As stated by the WEU ministers in 
the Kirchberg declaration, such a dialogue, already initiated with the Maghreb 
countries, should be further developed and expanded to Egypt and gradually to 
other non-WEU Mediterranean countries. 
12 A code of conduct among Mediterranean countries for the solution of disputes 
would also be a useful initiative which the Union should discuss with 
Mediterranean partners Other confidence-building measures in the political an 
military spheres could be developed in liaison with the WEU and transatlantic 
partners The EU could offer its good offices in case of persistant conflicts 
Together with the WEU and interested Mediterranean partners, the EU should 
develop a capacity to detect sources of instability and potential conflict at early 
stage. With the support of the Union, cooperation in the Mediterranean has 
consistently been an important issue in CSCE follow-up meetings and seminars 
and will be an important theme at the Budapest review conference and summit 
in December 1994. Further developments could be envisaged in the course of 
the General Mediterranean Conference to be held in 1995. 
13. Important progress towards stability in the region has already been achieved in 
the framework of the Middle East Peace Process, which enables the Union and 
its neighbours in the eastern Mediterranean to develop their relationship by 
helping to create the economic and social conditions for achieving lasting peace, 
sustainable development and political stability. 
ii) Towards a Euro-Mediterranean Economic Area 
14. The achievement of the objectives of the Community's Mediterranean policy 
requires a much wider and more active Community involvement in the socio­
economic development of the partner countries. 
The Community's policies as regards the trading relationship and economic and 
financial cooperation with the Mediterranean countries need to be framed with 
this in mind. 
(a) Free Trade 
15 The risks of economic disorder and socio-economic déstabilisation appear to be 
greatest in the forthcoming years in the Mediterranean. It is natural that both the 
Community and its Mediterranean neighbours should be looking for appropriate 
policies to tackle their problems of economic and political reform. 
Indeed, the rationale behind the negotiations or exploratory talks that have been 
going on for the last two years with Morocco and Tunisia, Egypt and Algeria, is 
to integrate those countries more closely into the emerging pan-European free 
trade network and by way of that process to 
- streamline their regulatory and economic policy framework; 
- raise their long-term competitiveness; 
- attract substantially more private direct investment, especially from Europe; 
- improve mutual understanding and awareness; 
- and, most important, accelerate sustainable economic and social development 
The challenge for the Mediterranean countries, in particular those of the 
Maghreb and Mashrak, is particularly difficult and complex especially for four 
reasons: 
- their overall level of development is notably low (see Annex-4 for 
comparisons); 
- they have to cope with high population growth (more than 2% pa., which 
implies a doubling over around 30 years), which aggravates the burden of 
existing high and structural under-employment, as well as increasing social 
costs (education, health ...); 
- they do not dispose of a well-trained, sophisticated labour force, a sizeable 
portion of their population continuing to be illiterate; 
10 
- cultural and social traditions which make the process of change more difficult 
16. In order to be able to enter progressively into free trade with the Union and to 
take on board a wide range of trade-related Community regulations (customs, 
standards, competition, intellectual property protection, liberalisation of services, 
free capital movements etc.), the Mediterranean countries, which will have to 
bear the cost of adjustment needed to cope with the challenges of free trade, 
insist on four fundamental aspects for them: 
- the need for long transitional mechanisms and secure safeguards; 
- the need to obtain improved access for their agricultural exports; 
- the need for increased financial flows from public and private sources to 
boost their economies; 
- the possibility to count on the Community's help to accelerate the 
modernisation of their social and economic systems. 
17 Provided developments unfold as they are presently envisaged, Europe and the 
Mediterranean will be heading, in conformity with the WTO obligations, towards 
a vast Euro-Mediterranean free trade area, to be completed by about 2010. 
It will provide for 
- reciprocal free trade in all manufactured products between the enlarging 
Union and most Mediterranean countries. 
- preferential and reciprocal access for agricultural products of interest to both 
parties; 
- and free trade among Mediterranean countries themselves. * 
The Euro-Mediterranean zone will constitute the biggest free trade area in the 
world, covering 600-800 million people and some 30-40 countries. 
Its constitution will be progressive, flexible and voluntary. 
The process is already under way, with Israel being the most advanced in the 
completion of free trade with both the Community and EFTA countries and 
having initiated talks with certain Central and Eastern European countries. 
Negotiations on free trade between the Community and Morocco and Tunisia 
have begun, to be followed by others in due course. The deadline for Customs 
Union with Turkey is 1995 
Israel and Turkey are likely to be the first of the Mediterranean countries to conclude a free 
trade agreement between themselves. 
As far as Cyprus and Malta are concerned, they are engaged in a process of 
accession to the Union. 
The progressive completion of a Euro-Mediterranean free trade area will give a 
powerful boost to trade both between all of Europe and the Mediterranean 
countries and at least as important, between Mediterranean countries themselves 
with, as European experience has amply demonstrated, far-reaching trade 
liberalisation acting as an engine for more and deeper cooperation within the 
zone. 
Inter-industry cooperation and a much higher level of joint ventures between 
Europe and the Mediterranean will boost the competitiveness of the industrial 
and business sectors of the two regions and improve their position in the global 
market-place. 
Particular attention will have to be paid to encouraging stronger links between 
our partners and the poorer Mediterranean regions of the Community to promote 
mutually reinforcing development 
(b) Financial Assistance 
18. The Commission considers that a substantial increase in financial support for the 
Mediterranean countries is necessary to achieve the objectives of its 
Mediterranean policy and to help the countries concerned to meet the challenges 
they face. The Commission proposes that the Community's financial support 
should focus on the following five priority objectives: 
- support for the process of economic modernisation and restructuring of those 
countries prepared to open their markets in the context of new Association 
Agreements; 
- support for structural adjustment in countries less far advanced in this process 
with a view to preparing them for entering into free trade with the Union; 
- support for regional cooperation, particularly in the environment; 
- strengthening of North-South economic and financial cooperation, and among 
southern and eastern Mediterranean countries themselves, particularly through 
programmes of decentralised cooperation linking key actors in the cultural, 
social and economic fields (businesses, universities, research centres, local 
government, media, non-governmental organisations, ...); 
- support for the Middle East peace process. 
19 The Community cannot, of course, tackle all these tasks alone. However, given 
the major interests at stake in this region, a strong and credible assertion of the 
Union's presence is required The financial resources which the Community can 
place at the disposal of the countries concerned, even after substantial increases, 
will remain limited in comparison with their needs. For the present, the 
Commission submits the following guidelines for consideration: 
12 
- introduction of a substantive economic policy dialogue with the countries of 
the region to identify their specific needs, and determine priorities and 
instruments for action by the Community; 
- strengthening of mechanisms for coordinating the Community's action 
(including that of the EIB) with the activities of relevant international 
financial institutions • (particularly the World Bank and the IMF), 
- strengthening of coordination between the Community and the Member 
States; 
- evaluation of the possibilities for coordination of all the Community's 
financial instruments (including loans) to meet the specific objectives and 
needs of each country 
(c) Cooperation 
20. Beyond the establishment of a free trade area, the partners in Europe and the 
Mediterranean should be prepared to move to a closer relationship in a wide 
range of sectors. It is too early to define the precise content or form of this 
relationship, which will need to emerge from consultations with the partner 
countries themselves The Community's should, however, already make clear its 
willingness to embark on a dynamic process. Possibilities for closer cooperation 
include moves to: 
- engage in constant dialogue and concertation on a wide range of trade- and 
investment-related matters (indirect taxation, standards, customs procedures, 
investment guarantee schemes, etc.); 
- intensify their industrial cooperation (sub-contracting, technological transfer, 
training, joint ventures, etc.); 
- reinforce their cooperation in energy matters, e.g. inter-connection of 
networks, energy-saving technology, development of solar energy 
resources; 
- raise the social dimension : education, low standards of working conditions, 
health and safety at work require an immediate and comprehensive approach 
of the Union to improve law, industrial relations policies and social protection 
issues; 
- strengthen their cooperation in the environmental field to safeguard the 
Mediterranean Sea and intensify efforts to preserve renewable resources and 
to combat pollution, erosion, desertification, etc ; 
- intensify efforts aimed at promoting sustainable development by addressing 
issues such as integrated management of water resources, energy supply and 
conservation, population growth and urban concentration; 
- strengthen their exchanges and cooperation with reference to the information 
society, in particular in specific areas like the regulatory framework, 
standardisation, infrastructures and new information and communication 
technologies; 
13 
- cooperation between regions, local authorities, cities and towns, 
- broaden their cooperation beyond trade into other areas like transport and 
related infrastructure, banking and other services; 
- liberalise movements of capital; 
- engage in closer scientific cooperation; 
- tackle on a cooperative basis issues that are of mutual interest to the partners 
within the region (e.g. tourism, illegal migration, terrorism and organised 
crime); 
- recognise the need in bilateral agreements for cooperation in the area of 
production, trafficking and abuse of illicit drugs; such cooperation would be 
enhanced if it were to be pursued as part of a Euro-Mediterranean Partnership 
Europe and the Mediterranean countries will, therefore, increasingly find 
themselves in a process of inter-action, interdependency and mutual association 
IV. Conclusions: the Euro-Mediterranean Partnership 
21. The Communty's long-term strategy of creating a Euro-Mediterranean 
Partnership, comprising a zone of peace and stability embracing the Union. 
Central and Eastern Europe and the Southern and Eastern Mediterranean, implies 
a close and continuing dialogue between those concerned. 
22 For its part, the Union should be prepared to conduct a regular political dialogue 
with its Mediterranean partners on the respect of human right, and the principles 
of democracy and good governance which constitute an essential element of their 
relationship. This dialogue would accompany the intensification of relations in 
the economic, financial and social fields. 
The Community should encourage regional cooperation among mediterranean 
countries and should be ready to enter into a dialogue with any subregional 
group which may be formed. 
23 At the same time, the Union will need to implement a wide range of policies in 
the fields of economic, financial and social cooperation 
When making its proposals, the Commission will reconciliate the imperatives of 
the Common Agricultural Policy with the international obligations of the 
Community, including those within the framework of the WTO. 
24 To this end, the Commission submits the following operational 
recommendations, which build on the Community's long-standing approach 
towards the Mediterranean countries: 
24.1 In the shprt-term, the Commission hopes to rapidly conclude the negotiations for 
new Agreements with Israel, Morocco and Tunisia, as the first step towards the 
establishment of a free trade area in the region, and pursue discussions with 
other countries wishing to enter into new contractual arrangements. This will 
require some degree of flexibility on the part of the Council, in particular as far 
as agricultural trade and financial support are concerned. The Commission also 
emphasises the urgent need to finalise, before the end of 1994, the on-going 
talks with Turkey on the full implementation of Customs Union, which would 
represent a qualitative change in relations between Turkey and the European 
Community. 
24.2 In the medium-term, turning the Mediterranean into a zone of relative prosperity 
and stability, with a high degree of regional cooperation and free trade within 
the Mediterranean as well as with Europe, will require a substantial increase in 
technical and financial assistance by the Community to the Mediterranean 
countries. 
In the Commission's view a major effort will be necessary to support the 
sustainable socio-economic development of these countries, aid their structural 
adjustment and encourage regional cooperation. Particular emphasis should be 
placed on those countries prepared both to undertake far-reaching modernisation 
of their economic and social systems and willing to cooperate with the 
Community in the management of the interdependences that tie both sides of the 
Mediterranean. To this end the Union will need to put in place an overall MED 
programme of cooperation, as was done in Central and Eastern Europe by the 
PHARE programme 
24.3 The Euro-Mediterranean free trade area will succeed with mutual benefit if 
private European direct investment is stepped up substantially in the years ahead. 
To that end, the various support programmes for joint ventures between 
European and Mediterranean enterprises (MED Invest, ECIP, risk capital 
operations) will be re-enforced 
24.4 In order to facilitate the necessary economic adjustments, and to contribute to 
the identification of needs and of the appropriate instruments of trade, economic 
and financial cooperation, the Commission is prepared to enter into substantive 
economic and industrial policy dialogue with all the countries with whom 
Association Agreements are concluded. 
24.5 Regional cooperation among Mediterranean countries will require sustained 
support from the Union 
The following practical steps should be taken whenever feasible: 
- Mediterranean countries having concluded Association Agreements with the 
Union should be encouraged to negotiate similar agreements among 
themselves in order to increase intra-regional trade, which presently amounts 
to only about 5% of their total foreign trade, and thereby attract substantially 
more private investment to the region, 
- cumulative rules of origin could apply to trade among the Mediterranean 
countries and between them and the Community, 
15 
- the Community should continue its active support of sub-regional groupings 
in the Mediterranean, in particular through appropriate financing of regional 
institutions and infrastructure programmes and through promoting dialogue 
and cooperation with these groupings. 
24.6 The Commission believes that the appearance of a theoretical amount in a 
financial statement should not affect the fate of the proposal. The Council and 
Parliament will have to juggle figures (while keeping to the terms of the 
financial perspectives) once they have examined the proposals for Central and 
Eastern Europe and for the Mediterranean. The financial statements are intended 
to be part of the body of information passed to the Council and Parliament. 
The Commission also considers that the final outcome must reflect an 
appropriate balance between the two regions which constitute the greatest 
priority for the European Union and must allow the policy in question to be 
strengthened, thus providing an adequate response to any needs which emerge 
orice the policy is actually in place. It must, furthermore, have credibility with 
the Union's partners. 
Against this background, the Commission considers that in order to implement 
the wide range of policies invoked above, an indicative figure of around 5,500 
MECU of budgetary resources for the period 1995-1999 will be required for all 
Mediterranean non-member countries (not including Albania and ex-
Yugoslavia). c This would be in addition to increased lending from the EIB and 
other international financial institutions, bilateral assistance from the Member 
States and greater levels of private sector investment in response to the 
improvement of the economic and political environment. 
24.7 The Commission endorses the idea of a MED-Conference to be held in 1995 
Such a Ministerial Conference should offer a platform for discussion of the long-
term prospects of a Euro-Mediterranean partnership for economic and political 
cooperation, along the lines set out in this communication. 
All the Mediterranean countries, i.e. those bordering the Mediterranean Sea, plus 
Jordan, having concluded agreements with the Union should be invited to such a 
Conference. The Conference should reach agreement on a series of economic 
and political guidelines for Euro-Mediterranean policy into the next century, 
which could be set out in a new Charter. Such a Charter should be compatible 
with efforts supported by the Union in the CSCE. It could be followed up in an 
institutional framework, drawing as appropriate on the experience of the CSCE 
process. 
The Conference should thereby contribute to creating a larger awareness, among 
political and business leaders throughout the world, of the Mediterranean being 
ready to embark upon a courageous journey which will progressively transform 
it into a region of stability and peace, rapid economic development, social 
change and, last not least, political pluralism. 
The Commission will make detailed proposals on the priorities, conditions and instruments for 
financial cooperation in due time. 
25. The Commission calls on the European Council in Essen to endorse these 
guidelines and operational recommendations to serve as a basis for the Union's 
long-term Mediterranean policy. 
These guidelines should be reviewed once a year by the Foreign Affairs Council 
in the light of progress achieved. 
11-
ANNEXES 
Annex 1 Economic Development in the Middle East and North Africa (Horizon 
2010) 
Annex 2 The Strengths and Weaknesses of the EC's Current Mediterranean Policy 
Annex 3 Forecasts of Commitment Appropriations in the Community Budget for 
Central and Eastern Europe and the Mediterranean 
Annex 4 Interdependence between the EC and the Countries of the Mediterranean 
and Countries of Central and Eastern Europe 
ANNEX I 
-M1 W-
ECONOMIC DEVELOPMENT 
IN THE MIDDLE EAST AND NORTH AFRICA 
HORIZON 2010 
1. In the margins of the Regional Economic Development Working Group 
.(REDWG) of the Middle East Peace Process, the World Bank1 produced an 
assessment of what progress could be achieved in the region during the next 20 
years. 
2. Drawing upon its experience from within the region and on die basis of past -
performances, the World Bank proposed a "challenging and yet feasible 
scenario"; specifically t,o seek a doubling of regional GDP by 2010. To reach this 
goal the necessary increase in GDP was evaluated at 3% in 1990/2000 and 5% in 
2000/2010. 
3. This scenario would suppose : 
a peaceful environment (which would be translated into the reduction ol 
military expenditures); 
implementation of a wide range of economic policies; 
effective regional cooperation in all fields of common interest; . 
in the short term, external assistance (public aid) to offset the negative 
- effects of the costs of economic reforms for reasons of social and political 
feasibility; 
in the medium term, appropriate financial flows (domestic savings, 
workers remittances, foreign direct investment and commercial loans). 
4. Unfortunately, because of the population factor, the resulting GDP per capita 
would remain discouraging. The wealth gap separating the European Union from 
the Maghreb and Mashraq countries, which presently stands at a level of "one to 
ten", would be on its way to reaching the level of "one to twenty". 
5. This gap would also be increasing between Israel and its Arab neighbours. 
Israel's; GDP per.capita would be 25 times higher. Its global GDP for 7 million 
people, would be equivalent to the GDP of 134 million people living in the 
neighbourhood. 
6. These goals, demanding though they may be, are inadequate. The dynamic 
created by the progressive opening up of the Middle Eastern and North African 
economies to the competitive European Union economy is the additional factor 
which could bring a critical change to this equation. 
liconomic and SocinI Dcvclopmcni in.ijic Middle I'iasl and North Africa. Discussion Paper scries n°3. 
October 1992 - Ishac Diwan. Senior Economist 2nd Lyn Squire, Chief Economist. 
i<3 
POPULATION (millions) 
REGION 
MAGHREB 
MASHRAQ 
ISRAEL 
TOTAL 1990 
58 
83 
5 
1.46 2010 
90 
134 
7 
231 increase 
+ 55% 
+ 61% 
+ 40% 
+ 58% 
GDP (US S billions) 
REGION ' 
MAGHREB 
MASHRAQ 
ISRAEL 1990. 
82 
68 
53 2010 
158 
126 
118 increase 
+. 93% 
'+ 85% 
+ 123% • 
GDP PER CAPITA (US S) 
REGION 
MAGHREB 
MASHRAQ 
ISRAEL 
EUROPE 1990 
1410 
810 
10600 
16000 2010 
1750 
940 
16860 
24000 increase 
+ 340 
- 130 
+ 6260 
+ 8000 
Annex 2 
THE STRENGTHS AND WEAKNESSES 
OF THE EC'S CURRENT MEDITERRANEAN POLICY 
1. BACKGROUND 
The Community began establishing contractual links with most of the 
Mediterranean non-member countries during the sixties. In their initial form, 
these agreements were essentially confined to trade matters, providing for free 
access for industrial goods and for specific concessions for some agricultural 
products. They were expanded in the seventies to include economic and financial 
cooperation intended to back economic development and establish links through 
cooperation between the two shores of the Mediterranean. Relations are governed 
by Association Agreements with Turkey, Malta and Cyprus (leading to a customs 
union) and by cooperation agreements with the other Mediterranean non-member 
countries (MNC), Greece having joined the Community in 1981 ancf Spain and 
Portugal having joined in 1986. There has been free trade in industrial goods 
between the Community and Israel since 1989. Under the terms of the overall 
Mediterranean policy of the seventies, concessions for the countries of the 
Maghreb and Mashreq have remained unilateral. 
Additional protocols were concluded with the MNC in order to mitigate the 
effects of the accession of Spain and Portugal; these improved the concessions 
granted for agricultural products. 
Until that stage, the Community's Mediterranean policy had followed a traditional 
pattern of combining trade concessions on the one hand with financial cooperation 
on the other. The latter operated largely through conventional aid/project 
arrangements. 
At the end of 1989, as a result of its assessment of the Community's 
Mediterranean policy and of the geopolitical change wrought by the fall of the 
Berlin Wall, the Commission produced a report on the state of relations with the 
MNC at the time, and proposed ways in which those relations could be updated 
(Redirecting the Community's Mediterranean Policy, SEC(89)1961 final of 23 
November 1989 and SEC(90)812 final of 1 June 1990), taking account of the 
challenges facing Europe and its partners to the south. 
The New Mediterranean Policy adopted by the Council in December 1990 
reinforced existing efforts and introduced new features to make relations with the 
MNC more dynamic, backing the Community's action chiefly by using assistance 
with economic reform to encourage the process of opening up to the outside and 
structural reform which was under way in some of the MNC. 
The introduction by the New Mediterranean Policy of regional cooperation and 
cooperation covering all of the MNC (particularly decentralized cooperation) 
signalled the advent of a true partnership (something hitherto missing from 
relations with the MNC) and constituted the Policy's major qualitative innovation. 
r 
2\ 
In the interests of giving due consideration to sub-regional characteristics, the 
Commission produced proposals on the future of relations with the Maghreb ( 
SEC(92)40 final of 30 April 1992 ) and relations with the Mashreq ( 
COM(93)375 final of 1 September 1993 ). In these communications, the 
Commission proposed that Europe and the Maghreb and Mashreq be more 
economically intertwined. This resulted in the negotiations planned or already 
under way with a number of MNC (most significantly Morocco, Tunisia and 
Israel) for agreements which will rest on four principles : political dialogue, free 
trade in industrial goods, economic, social and cultural cooperation and 
appropriate financial cooperation. This is undeniably a further development of the 
partnership approach introduced by the New Mediterranean Policy. 
Lastly, in September 1993, the Commission produced a communication on EC 
support for the Middle East peace process ( COM(93)458 final of 29 September 
1993 ) which emphasized the need for Europe to help the Palestinians progress 
towards autonomy, for changes to be made to the bilateral cooperation 
agreements and for regional cooperation in the Middle East to be promoted. 
These advances have brought relations which are closer and qualitatively better 
than before, paving the way to establishing a genuine European/Mediterranean 
area. 
ASSESSMENT 
2.1. Trade 
Free access for industrial goods to the Community market has 
undoubtedly held advantages for the economies of the MNC. Between 
1979 and 1993, the overall share of total MNC exports to the European 
Union occupied by manufactures rose from 28% to 54%. This average 
does however conceal variations in performance. In the Maghreb, 
Morocco and Tunisia, which both introduced successful economic reform, 
pushed up exports of manufactures from 24% to 66% (Morocco) and from 
40% to 77% (Tunisia). In 1992 Turkey and Israel also reached or 
exceeded rates of 70%. 
The fact that the external protection of most of the region's economies is 
still quite high means that exports are not diversified enough and the 
MNCs' trade balance with the European Union still displays a major 
structural deficit. MNC exports often focus on a small number of fields 
(or products), increasing their vulnerability considerably in the medium 
term. 
It is worth pointing out that the voluntary restraint arrangements for some 
textiles and clothing have not been a major obstacle to our MNC partners, 
since flexible administration and progressive liberalization over the years 
has increased their share of the Community market more than is the case 
with countries governed by the MF A. 
2-2-
Access to the Community market for agricultural products has 
substantially improved over the past two decades. There has been a 
gradual elimination of customs duties on major agricultural products from 
the MNC (this has been within the bounds of tariff quotas in the case of 
sensitive products). Even considering the presence of quotas, the products 
have been admitted at preferential rates of duty. 
This is not in itself indicative of a problem. Quite the opposite: as 
development progresses, agriculture loses ground to manufactures. 
Viewed against the background of the MNCs' own imports, trade in 
agricultural products demonstrates the failure of efforts at diversification, 
since in the case of most of the countries self-sufficiency in food 
commodities has not increased. Dependence on imports from the 
Community remains the rule. 
Although it has increased in absolute terms, the share of exports occupied 
by agricultural products is on the decline. Only in the cases Of Morocco 
and Turkey does that share exceed 15% of total exports to the European 
Union. 
2.2. Financial and technical cooperation / 
Community aid from the budget accounted for 0.1 % of GNP, while EIB 
loans accounted for 0.3% of GNP. Such aid addressed important sectoral 
needs (vocational training, rural development, etc.) but did not have a 
significant macroeconomic effect. In some cases, administration of the aid 
was adversely affected by political circumstances or red tape. 
The New Mediterranean Policy has greatly increased European Union 
assistance (EIB loans and funds from the budget). Traditional cooperation 
projects in priority areas (training, rural development, etc.) have been 
supplemented by support for structural adjustment producing rapid 
disbursement of funds to help (in however small a way) with economic 
reform. These activities have also made it possible to bolster welfare 
policy (health care, education and low-income housing), usually using 
counterpart funds. This kind of assistance remains inadequate relative to 
the financial needs of heavily indebted MNC, however. 
The fact remains that some of the MNC in which adjustment programmes 
agreed with the World Bank and IMF are under way have made 
substantial progress with economic reform since the eighties. This is 
particularly true of Morocco, Tunisia, Jordan and Turkey. They continue 
to have highly protected economies, however, and much remains to be 
done to secure liberalization. There are other countries in which reform 
will be longer in coming because they began restructuring their economies 
later and since problems tend to be magnified over time, the difficulties 
will be greater. 
2S 
Using funds from the budget heading for structural adjustment 
(ECU 300 million) the Community has tried to make a modest 
contribution to backing structural adjustment in the countries which have 
embarked on economic reform. Counterpart funds have been earmarked 
for import programmes, social services (education, health care, housing, 
etc.), but the limited amounts available made it impossible to produce a 
significant effect. 
Although it is another important innovation introduced by the New 
Mediterranean Policy, cooperation covering the MNC as a whole has had 
a more variable success rate. Programmes of decentralized cooperation 
directed at key players in civil society do seem to have sparked 
considerable interest in local communities and universities. 
Initiatives aimed at bringing economic operators (especially SME) into 
contact with each other, backed by Community initiatives like MED-
INVEST, are growing in number. This is an important development. 
The unstable political situation has, however, meant that regional 
cooperation proper has remained embryonic, but the success of the Middle 
East peace process means that the future looks hopeful. 
The progress of cooperation in recent years has obviously benefited from 
an increase in the number of channels for assistance, but aid from the 
Community budget nevertheless accounted for an average 3% of total aid 
to the Mediterranean region between 1989 and 1992. 
The record of the Community's activities remains mixed, despite the 
progress made since the advent of the New Mediterranean Policy. 
Considering the challenges which our partners will face in the coming 
years and the political and socio-economic implications for Europe, 
special attention is needed, along with commensurate financial support. 
I 
Annex 3 
FORECASTS OF COMMITMENT APPROPRIATIONS IN THE COMMUNITY BUDGET 
FOR CENTRAL AND EASTERN EUROPE AND THE MEDITERRANEAN 
(ECU million)1 
TOTAL MED 
under B7-40 
C&E EUR 
(B7-60) 1991 
327 
217 
760 1992 
419 
326 
1000 1993 
407 
364 
1036 1994 
473 
450 
985 
if 
Rounded up or down. 
FINANCIAL COOPERATION TO DATE 
WITH MEDITERRANEAN NON-MEMBER COUNTRIES 
1. Since 1978, the Mediterranean non-member countries linked to the 
Community by association or cooperation agreements have been 
covered by five-year financial protocols earmarking for them both 
budget funds and EIB loans. The fourth generation of these financial 
protocols runs from 1992 to 1996. 
2. Between 1978 and 1991, the countries of the Maghreb and Mashreq 
received ECU 1 337 million in budget funds and ECU 1 965 million 
in EIB loans overall (the figures include Israel, which, because of its 
level of development, only receives EIB loans). 
The fourth financial protocols with the MNC (which cover the period 
1992 to 1996 and are therefore still running) allocate 
ECU 1 075 million of budget funds (including ECU 300 million to 
back structural adjustment in the countries which have embarked on 
economic reform) and ECU 1 300 million of EIB loans. 
3. In addition, as part of the New Mediterranean Policy, an allocation 
(it is estimated that ECU 230 million will be needed for 1992 to 
1996) is set aside for measures targeting the MNC as a whole. 
Similarly, the EIB has an allocation of ECU 1 800 million of loans 
for regional (ECU 1 300 million) and environmental 
(ECU 500 million) measures. 
4. The countries of the northern Mediterranean (Cyprus, Malta' and 
Turkey) have received ECU 672.5 million of budget funds and 
ECU 262 million of EIB loans over the period from 1965 to 1993. 
5. It should be noted that the EU is the largest donor of assistance for 
Palestinians in the Occupied Territories, having given approximately 
ECU 100 million in 1993 and approximately ECU 86 million in 
1994. 
6. Measures targeted at the MNC can also draw limited amounts from 
a combination of budget headings for such fields as population, 
migration and the environment. 
z£ 
Annex 4 
TABLE ILLUSTRATING INTERDEPENDENCE 
BETWEEN THE EC AND THE MED COUNTRIES 
AND COUNTRIES OF CENTRAL AND EASTERN EUROPE2 
1. Population 
million inhabitants 1992 2010 
EC 347 J76 
MED 209 304 
C&E EUR 110 _U6 
Source: Population Reference Bureau, Data Sheet 1992 
2. Gross domestic product (GDP) by region 
billion USD 1992 
EC 6677 / 
MED ^ J5? 
C&E EUR 212 
Source: World Bank Development Report 1994 
3. Per capita gross domestic product (GDP) 
USD 1992 
EC 19242 
MED3 1589 
C&E EUR 1927 
2 MED=Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Jordan, Lebanon, Syria, 
Turkey. 
3 1992 per capita GDP for Maghreb and Mashreq countries only: USD 993. 
f 
2> 
4. EC trade with the Med countries and countries of Central and Eastern 
Europe1 
(ECU million) 
EXPORTS 
IMPORTS 
TRADE 
BALANCE MED 
Total 
Agric.2 
Manuf.' 
C&E EUR 
Total 
Agric. 
Manuf. 
MED 
Total 
Agric. 
Manuf. 
C&E EUR 
Total 
Agric. 
Manuf. 
MED 
C&E EUR 1990 
36.2 
4.6 
28.5 
12.1 
1.5 
9.6 
34.5 
3.4 
11.9 
13.0 
2.7 
8.0 
-H.7 
-0.9 1993 
45.6 
4.7 
37.4 
26.1 
2.9 
21.4 
33.2 
3.3 
14.0 - *• 
20.3 
2.6 
15.2 
+ 12.4 
-5.8 
1 MED=Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Jordan, Lebanon, 
Syria, Turkey. 
C&E EUR=Poland, Hungary, Czech Republic, Slovak Republic, Bulgaria, 
Romania, Albania. 
2 Definition of "agricultural products" aggregate: CTCI 0-i- 1 H-2-^ 4-27-28 
3 Definition of "manufactures" aggregate: CTCI: 5^6-^7^8-68 
I 
ZK 
5. Energy dependency of the EC 
Percentage of total imports4 1992 
TOTAL ENERGY MED 24 
C&E EUR 1 
NATURAL GAS MED 32 
C&E EUR 0 
OIL MED 27 
| J C&E EUR [05 I 
Source: Eurostat 
6. Direct EC foreign investment (1992) 
in- million ECU 
MED 751 
C&E EUR 1612 
Source: Eurostat 
7. Immigrants by nationality in the EC (1992) 
m: million 
MED 4.6 
C&E EUR 0.7 
Source: Eurostat (figures rounded up or down) 
« — - net imports (imports less exports) 
2*1 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Strengthening the Mediterranean Policy of the European Union: Establishing a 
Euro-Mediterranean Partnership 
2. BUDGET HEADING INVOLVED 
B7-40 
3. LEGAL BASIS 
All the legal bases quoted in Chapter B7-40 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
- to promote the socioeconomic development of the Mediterranean non-
member countries (MNC); ' 
- to support the modernization and economic restructuring process in the 
MNC with a view to the progressive establishment of a free trade area 
(FTA); 
- to promote direct investment in the area via joint ventures (MED-INVEST, 
ECIP, risk capital); 
- to encourage job creation, particularly the setting up of SME; 
- to promote regional cooperation in all fields including the environment 
(regional projects, decentralized cooperation programmes, specific 
environment-related operations); 
- to support the Middle East peace process. 
4.2 Period covered and arrangements for renewal or extension 
The current Mediterranean policy covers the period 1992-96. This policy 
should be extended for a further five years until 2001, subject to renewal of the 
financial perspective. 
4.3.Target population 
The population of all MNC linked to the European Union by Agreements. 
3o 
5. Classification of expenditure or revenue 
5.1 Compulsory/non-compulsory expenditure depending on the different budget 
headings. 
5.2 Differentiated appropriations 
5.3 Type of revenue involved: none 
6. Type of expenditure or revenue 
- 100% subsidy: many of the planned operations take the form of a 100% 
subsidy of a programme or project's operational expenditure. 
- Subsidy for joint financing with other sources in the public and/or private 
sector: joint financing with other donors, NGOs or the private sector is also 
envisaged. 
- Interest subsidy: in some cases interest subsidies on EIB loans cdîild oe 
considered. 
- 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? No. 
- Re-use: none. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
The indicative multiannual financial programming given in the Annex 
reflects the need to step up European Union activity in the Mediterranean in 
the light of the challenges facing the MNC. 
Despite the increase over the current levels - from a very low starting point, 
however, the resources required by the MNC to accomplish their economic 
reforms remain fairly modest in relation to their needs. The Commission, 
subject to the annual budgetary procedure, proposes an indicative amount of 
ECU 5 500 million for Chapter B7-40 "Cooperation with Mediterranean 
countries" for the period 1995-99. 
7.2 Itemised breakdown of cost 
The breakdown will depend on the Commission's subsequent detailed 
proposals. 
1\ 
7.3 Indicative schedule of appropriations 
See table in the Annex. 
8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
The projects and programmes financed as part of cooperation with the MNC are 
subject to regular monitoring and systematic audits by the Commission or its 
authorized agents and the Court of Auditors. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific and quantifiable objectives: target population 
- Specific objectives: links with general objective. In the context of the 
general objective described under point 4.1, the purpose of the measures 
taken under this heading is the total or partial financing of programmes in 
the following areas: _ fc 
- modernization or restructuring of the MNC industrial fabric; 
- aid for the private sector, especially SME, and investment promotion; 
- modernization of institutional economic structures, particularly financial 
and fiscal systems; 
- development of a social protection net and job creation measures designed 
to combat poverty; 
- contribution to higher economic levels via measures to improve economic 
and social infrastructure; 
- support for measures to protect the Mediterranean environment; 
- promotion of regional cooperation between MNC; 
- support for the creation and development of decentralized cooperation 
networks, particularly involving civil society; 
- support for the Middle East peace process, for example in the context of 
the Working Party on regional economic development and the programme 
to assist the Palestinian population of the Occupied Territories; 
- Target population: distinguish as applicable for each objective; indicate the 
end-beneficiaries of the Community's financial contribution and the 
intermediaries involved. 
The end-beneficiaries of aid to the MNC are the people concerned by the 
various programmes and projects. 
12 
9.2 Grounds for the operation 
- Need for Community financial aid 
- The Corfu European Council underlined the need to strengthen the 
European Union's Mediterranean policy in order to promote peace and 
stability in an area of strategic importance. 
- In view of the enormous efforts required by the MNC in terms of 
economic reforms, they need considerable support from the European 
Union in order to establish the FT A. 
- Choice of ways and means 
- The ways and means used for the MNC cooperation programme will vary 
according to the situation in each country and sector. EU financed 
operations will be preceded by identification and feasibility studies. 
- Main factors of uncertainty which could affect the specific results of 
the operation 
- The economic reform process to be undertaken or stepped up is subject to 
uncertainties in the form of social repercussions and the international 
economic climate. The progress of reforms will also remain dependent on 
political developments in the region. 
9.3 Monitoring and evaluation of the operation 
- Cooperation with the MNC is monitored very closely by the Commission 
in Brussels and the delegations in the MNC. 
- A computerized system (RAP) recently came into use to monitor ' 
operations. 
- Each programme is also subject to a regular audit by independent experts, 
covering both technical and financial aspects. 
yj> 
FINANCIAL COOPERATION 
WITH MEDITERRANEAN NON-MEMBER COUNTRIES 
(Chapter B7-40) 
(ECU million at current values) 
1994 
427 1995 
4925 1996 
700 1997 
1080 1998 
1495 1999 
1733 1995-
1999 
5500 
1995 POT 
*ï 
ISSNQ254-1475 
COM(94) 427 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-94-466-EN-C 
ISBN 92-77-81192-7 
Office for Official Publications of the European Cominuxtities 
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