WRITTEN QUESTION E-4081/00

by Ioannis Souladakis (PSE) to the Council

(10 January 2001)

Subject: Cooperation agreements with the countries of central Asia

Despite the hopes of economic and social development prevalent among the countries of central Asia after the dissolution of the Soviet Union, today, ten years after becoming independent, these countries are facing a profound crisis with no solution in sight. Recent reports in the New York Times point to the adverse trend of economic indicators for these countries, a rise in corruption and a lack of investment leading to high unemployment and poverty for large sections of society. Some years ago the European Union concluded cooperation agreements with the five countries of central Asia (Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan and Kyrgyzstan) aimed at fostering the economic development of these countries.

Can the Council say what progress has been made in implementing these agreements?

Does it consider that this initiative has contributed to the economic development of the countries of central Europe and, if so, to what extent?

Does it take the view that these agreements have proved a successful model for promoting the development of, and granting aid to, fledgling countries which it can use in future in other regions where the interests of the EU are at stake?

Reply

(7 May 2001)

For the five countries of central Asia the transition from relatively poor Soviet Socialist Republics to modern and potentially prosperous nation States is proving difficult for various reasons. All the republics are confronted with serious economic problems. Corruption, lack of investment, unemployment and poverty are the evils affecting those countries. In addition there are the serious environmental problems inherited from the Soviet Union. The economic situation, however, varies greatly from one country to the next and despite everything progress is being made. In certain countries improvements are made in the short and the medium terms as regards growth and the reduction of inflation.

External factors exacerbate the difficulties encountered by the countries of central Asia, and in particular the situation in Afghanistan, relations with Russia, fundamentalism and the lack of regional cooperation.

The Council would point out that three Partnership and Cooperation Agreements, those with Kazakhstan, Kyrgyzstan and Uzbekistan, entered into force on 1 July 1999. The agreement signed with Turkmenistan in 1998 has not entered into force. As the Honourable Member is aware, the European Parliament has not delivered an Opinion, in particular because of the human-rights situation in that country. In the case of Tajikistan, the unstable situation in the country rules out the possibility of contractual relations with the EU.

The European Union has important interests in central Asia, both geopolitical and economic. The Union's objective is still to maintain stability in the region and to promote the development of democratic institutions, economic reform and the reduction of sources of conflict. The Union is aware that the achievement of those objectives will take a long time.

With the Partnership and Cooperation Agreements it has been possible to intensify relations between the Union and Kazakhstan, Kyrgyzstan and Uzbekistan. The creation of the institutions provided for in the Agreements and in particular the Parliamentary Cooperation Committees have established dialogue and close cooperation with a view to making progress towards transition to a market economy, including the improvement of market access and investment conditions and accession to the WTO.

The assistance granted under the TACIS programme for 2000-2003 gives priority to support for institutional, legal and administrative reforms, support for the private sector and assistance for economic development, the promotion of environmental protection and the management of natural resources, development of the infrastructure and support in dealing with the social consequences of transition.

The Partnership and Cooperation Agreements are the only instruments at present available to the EU for the purpose of positive cooperation with the countries of central Asia. The cooperation, support and assistance measures implemented with regard to those countries take account of the divergence of their needs and priorities. They could not, however, be considered appropriate for any other region that is of interest to the European Union, as every region has its special characteristics.

There is, however, a Union priority that applies to all non-member countries: the very great importance that the Union attaches to respect for human rights, fundamental liberties and the rule of law. The Union does not believe that sustainable economic growth can be achieved in any country in the long term without democratisation.