Commission report to the Council and the European Parliament on cooperation with the Mediterranean partners (1995)
Date: 1997-07-18
Institutions: European Commission
Subjects: Mediterranean third countries, association agreement (EU), economic development, international cooperation, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  18.07.1997 
COM(97)  371  final 

COMMISSION REPORT TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT ON COOPERATION WITH 
THE MEDITERRANEAN  PARTNERS 

1995 

1 

•M: 

THE  EURO-MEDITERRANEAN PARTNERSHIP 

1995 marked a turning point in relations between the European Union and its 
1. 
Mediterranean partners .  After a series of visits by the Troika for discussions with the 
Mediterranean  partners,  the  Cannes  European  Council  of  26-27  June  1995 reached 
agreement on the Union's position for the Euro-Mediterranean Conference and on the 
financial cooperation necessary to implement the Partnership. A figure  of ECU 4 685 
million from the  Community  budget  for  the Union's  financial  cooperation  with the 
partners  for  the  period  1995-99  was  agreed,  to  be  supplemented  by  European 
Investment Bank assistance in the form of increased loans. 

Continuing its work on the basis of the Commission's communication of  19 October 
1994 : " Strengthening the Mediterranean Policy of the European Union : establishing 
a Euro-Mediterranean Partnership",  the Union prepared intensively for the Barcelona' 
Euro-Mediterranean  Conference.  At  the  Conference 
the  Euro-Mediterranean 
Partnership was established, comprising: 

- a multilateral process, implemented through the various actions envisaged in the 
Barcelona Work Programme 

-  a  bilateral  process,  implemented  primarily  through  the  Euro-Mediterranean 
Association  Agreements  under  negotiation  with  the  partners  and  bilateral 
financial assistance from the Union to each partner. 

The Barcelona Process 

2. 
The  Barcelona  Euro-Mediterranean  Conference,  chaired  by  the  Spanish 
Presidency  of  the  Council  of  the  Union,  took  place  on  27-28  November.  It  was 
attended by the Foreign Ministers of the 15 EU Member States and Commission Vice-
President  Manuel  Marin, together with the Foreign  Ministers  of the twelve non-EU 
Mediterranean partners.  The President of the European Parliament also attended. 

The  Conference  reached  agreement  on  a  Barcelona  Declaration  and  a  Work 
Programme covering three main themes : 

a political and security partnership whose objective  is to create an area of peace 
and stability in the region. 

an  economic  and  financial  partnership  based  on  the  gradual  establishment  of a 
free  trade  area, accompanied  by  substantially  increased  economic  and  financial 
cooperation from the Union  to its partners. 

Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, the Palestinian Authority, Syria, 
Tunisia and Turkey. 
COM(94)427 of  19.10.94. 

a  social,  cultural  and  human  partnership  designed  to  increase  exchanges  and 
mutual  understanding,  particularly  through  an  increased  involvement  of  civil 
society. 

3. Under the political and security partnership the participants agreed on a number of 
fundamental  principles  which they  undertake  to  respect,  and  they  set  up  a political 
dialogue at the level of senior officials.  They agreed on the possibility of establishing 
a Euro-Mediterranean pact with a view to the creation of an area of peace and stability 
in the Mediterranean. 

4. Under the  economic  and financial  partnership  the participants  set  themselves  the 
target date of 2010 for  the gradual  establishment  of a free trade  area  to cover most 
trade in accordance with WTO obligations; they agreed on the priorities for economic 
cooperation  in a large number  of sectors; and they noted the substantially  increased 
volume of financial assistance from the Union to its partners and the framework for its" 
delivery. In this context it should be noted that the Commission's communication of 8 
March  1995  "Strengthening  the  Mediterranean  Policy  of  the  European  Union: 
proposals  for  implementing  a  Euro-Mediterranean  Partnership"3 
identified  three 
priorities for action : 

- assistance with economic transition; 
- assistance with achieving a better socio-economic balance; 
- backing for regional integration. 

5. As far  as the social, cultural  and human partnership is concerned, the participants 
underlined the value of contacts and exchanges to promote mutual understanding and 
recognized the important role which can be played by civil society in this process. 

6.  The  Barcelona  Conference  set  up  a  "Euro-Mediterranean  Committee  for  the 
Barcelona  Process"  at  senior  official  level,  consisting  of  representatives  of  the  EU 
Troika  and  of  the  twelve  non-EU  partners,  to  meet  regularly  to  prepare  the  next 
meeting of Ministers of Foreign Affairs  and to take stock of and evaluate the follow-
up  to  the  Barcelona  process.  It  was  agreed  that  follow-up  work  for  the  various 
meetings would be done by Commission departments. 

3  COM(95)72 of  8.03.95. 

Euro-Mediterranean  Association  Agreements 

7. 
The agreements provide for  political dialogue, progressive establishment  of  free 
trade and  a number  of accompanying  economic provisions, wide economic,  social  and 
cultural cooperation, and the setting-up of institutions to manage the Associations. 
The Commission  continued  its negotiations with a number  of partners  and  agreements 
were  signed  with  Tunisia  (July)  and  Israel  (November),  negotiations  were  concluded 
with  Morocco  (November).  The  Commission  continued  to  press  forward  in  the 
negotiating  process  with  Egypt,  Jordan  and  Lebanon  and  preparatory  work  was 
continued with the other partners. Negotiations for  a customs union with  Turkey  were 
successfully  concluded,  while  Cyprus  and  Malta  remain  covered  by  the  pre-accession 
strategy.  The process  of establishing  a Euro-Mediterranean  Free  Trade  Area was  thus 
significantly  advanced in 1995. 

Financial  cooperation 

8. 
The  report  that  follows  gives  an  overall  assessment  of  the  progress  made 
during  1995  in  the  implementation  of  cooperation,  and  in  particular  of  the  fourth 
financial  protocols established between the Community and the Mediterranean  partners 
for  the period  1992-96.  Furthermore,  it includes information  on the  lending  activities 
of the European Investment  Bank under the bilateral  protocols  and horizontally  during 
1995. 

9. 
In  1995 the Commission made proposals for  a new programme  of  cooperation, 
In  order  to  set  the 
known  as  the  MEDA  programme,  for  the  period  after  1996. 
objectives  and rules of administration  of this new programme  the  Commission  made a 
proposal  for  a  Regulation  on  8  June  1995.  As  with  the  PHARE  and  TACIS 
programmes  for  Eastern  Europe  and  the  Commonwealth  of  Independent  States,  the 
proposed  MEDA  programme  envisaged  a  wide  range  of  areas  of  cooperation  going 
beyond the scope of development  cooperation. 

The  Commission  proposal  aimed  to  build  on  the  experience  gained  through 
10. 
implementation  of four  generations  of financial  protocols over the period  1978 -  1995. 
The protocols  awarded  a predetermined  financial  envelope to  each beneficiary  country 
for  a five-year period.  This provided  a framework  for  programming  but  there  was  no 
incentive  to  efficiently  implement  the  agreed  programmes.  Thus  the  Commission 
proposed  that  under  MEDA  a  three-year  rolling  programming  exercise  should  take 
place on the basis of indicative amounts  .  Financial allocations  could then be  modified 
taking into account  absorptive capacity and other  factors. 

11. 
In advance of the establishment  of the full MEDA programme ECU  172 million 
was  allocated  to  the  MEDA  budget  heading  in  1995  in  order  to  deepen  the  "off-
protocol"  cooperation  with  the  Mediterranean  partners  in favour  of  decentralized  and 
regional  socio-economic  cooperation.  The  specific  objectives  were  to  accompany 
economic  reforms,  support  the  development  of  civil  society,  cooperation  in  the 
framework  of  the  Middle  East  Peace  Process  and  the  Euro-Arab  dialogue  as  well  as 
protection of the environment. 

</ 

I.  BILATERAL COOPERATION4 

ALGERIA 

1. 

Political and economic developments 

A  number  of  major  political  developments  took  place  in  1995:  efforts  by  the 
Communauté de St. Egide in particular, which organized  the Rome Platform  for  the 
peaceful  settlement of the conflict  between the Islamic extremists and the authorities, 
came to naught while President Lamine Zeroual was elected in the first round of the 
November presidential elections with 61% of the votes on a turnout of 70%, despite a 
boycott by the main opposition parties and the threats of the Muslim extremists. 

Despite major  strides towards macroeconomic  stabilization  the economic and  social 
situation remained difficult.  The Algerian economy's vulnerability to outside  factors 
such as the slide in oil rJrices and the dollar contributed to a worsening external debt 
which stood at 32 billion dollars in  1995.  As a result, Algeria's debt to the Clubs of 
Paris  and  London  had  to  be  rescheduled  in  1994  and  1995  following  approval  of 
World  Bank  and  IMF  support  programmes.  The  structural  reforms  affecting  all 
sectors of the economy  and  designed  to put  in place a market-based  economy  were 
held back by the climate of violence prevailing in the country. 

The  Commission  conducted  a  third  round  of  exploratory  talks  with  the  Algerian 
Government  with  a  view  to  negotiating  a  Euro-Mediterranean  Association 
Agreement  and  in  December  the  Madrid  European  Council  called  on  the 
Commission  to  table  draft  negotiating  directives  for  the  conclusion  of  such  an 
agreement. 

Is 

Financial anfl technical cooperation 

(1978-96)  and  horizontal  cooperation  under 

ECU 269  million  in  budget  funds  has  been  earmarked  for  Algeria  via  the  four 
financial  protocols 
the  New 
Mediterranean Policy.  The rate of commitment at the end of the year had topped 80% 
(74% from the fourth protocol), with payments.rising to just 48%.  All operations are 
lagging  well  behind  mainly  owing  to  a  deterioration  in  the  security  situation,  the 
departure  of  foreign  technical  assistance  staff  and  the  closure  of  the  Commission's 
Delegation in Algiers.  Just as other donors were doing, the Commission undertook a 
thoroughgoing review of the project portfolio in order to wind up or restructure many 
projects, chiefly  those coming under the first and second protocols, thereby releasing 
ECU 16 million.  There were no new commitments in 1995. 

Three third-protocol contracts were closed mainly owing to the fall in the value of the 
dinar.  This  entailed  partial  cancellation  of  the  amounts  earmarked,  thus  making 
ECU 66 million available for future operations. 

The fourth  financial  protocol with Turkey approved  in  1980 remained on  ice in  1995. 

•The overall amount of EIB own-resources loans earmarked for Algeria was ECU 640 
million.  The EIB has not yet allocated the risk capital under the fourth protocol (ECU 
18 million) owing to the difficult  situation prevailing in the country. 

liberalization  under  way  caused  delays 

The  process  of  economic 
the 
implementation  of  financial  and  technical  cooperation  as  the  main  Community 
programmes,  which  had  been  drawn  up  when  the  State  was  still  in  control  of  the 
greater part of the modern economy (for example through import permits), needed to 
be  adjusted  and  reoriented.1  Consequently,  in  1995,  implementation  of  the  main 
programmes proceeded at a slower pace. 

in 

CYPRUS 

1.  Political and economic developments 

The structurée dialogue with Cyprus as part of the pre-accession  strategy was put in 
place in accordance with the provisions adopted at the Association Council meeting of 
12 June, paving the way for meetings at the level of Heads of State at the Cannes and 
Madrid  European  Councils and at the level of Ministers  of Foreign Affairs,  Justice, 
Transport,  the  Environment,  the  Economy,  Culture  and  other  matters  covered  by 
.accession. 

On the political front, legislative elections resulted in victory for the right-wing DIS Y 
(35%),  which  kept  its  20  seats  in  Congress  out  of  a total  of  56.  The  Communist 
AKEL  gained  ground  with  33% of  the  votes  and  19 seats.  The  ruling  coalition 
remained  in power, however, thanks to the  10 seats won by coalition partner DIKO. 
These elections are important  in view of the presidential elections due to be held in 
1998.  On the economic front, the reforms  aimed at aligning the economy on that of 
the Community continued with a liberalization of foreign trade. 

2.  Financial cooperation 

Budget  funds from the first two protocols (ECU 26 million) were committed  in  full 
and disbursed to the tune of 96%. 

At the end of the year all the budget funds under the third protpcol (1991-95) had been 
committed  (97%, of  which  76% disbursed).  Total  budget  funds  stood  at  ECU 18 
million and new commitments at ECU 5 million. 

The fourth financial protocol (1996-99) was signed in October., 

Implementation  of  financial  and  technical  cooperation  continued  satisfactorily. 
Certain  improvements  to  administrative  procedures  agreed  with  the  Cypriot 
authorities were introduced, helping to speed up project implementation. 

All EIB resources were committed  (ECU 44 million) via credit  lines for  operations  in 
the water supply  and  industrial  sectors.  Disbursements  stood at 44% at the end of the 
year. 

EGYPT 

L 

Economic apd political developments 

The  Egyptian  government's  policy  through  1995  remained  one  of  commitment  to 
economic  reform.  For  the  first  time  since  Egypt  initiated  its economic  and  structural 
adjustment  programme,  the  GDP  growth  rate  (2%)  almost  matched  the  population 
growth  rate  (2.1%).  Moreover,  Egypt  became  a  full  member  of  the  World  Trade 
Organisation (WTO) in June. 

" 

, 

On the political front,  awareness of the need to respond to the evolving  situation in the 
Mediterranean  region  and  on  the  international  scene  at  large, could  be  seen  in  the 
government's  continuing  close  involvement  in  all  aspects  of  the  Middle  East  Peace 
Process.  The  Government  continued  to  play  a  leading  role  in  bringing  the  partners 
together, both in bilateral negotiations and in the multilateral working groups. 

It  also  played  an  active  role  in  the  Economic  Summit  that  took  place  in  Amman  in 
early November,  which resulted, among other achievements, in the establishment  of a 
'Middle East and North African  Regional Bank' to be based in Cairo. 

The preparatory  work done between the EU and the Egyptian government  in  1994 led 
to  the  formal  opening  of  negotiations  in  Brussels  in  1995  with  a  view  to  creating  a 
new  EU/Egypt  Euro-Mediterranean  Association  Agreement.  Four 
rounds  of 
negotiations  were held  at roughly  quarterly  intervals through  1995. By the end  of the 
year,  the  negotiations  had  succeeded  in  clearing  much  of the  initial  groundwork  and 
identifying  the main points of  difference. 

The EU/Egypt Partnership has been referred  to in Egypt as the single most  significant 
strategic  initiative  the  country  has  taken  in  the  past  decade.  Besides  its  economic 
implications,  and  the wide  range  of  social, cultural  and  scientific  relations  which  the 
new  Mediterranean  Agreement  will  embody,  the  full  political  dimension  of  the 
Partnership is an important factor  for Egypt. 

2. 

Financial  and technical  cooperation 

The  EC  is  giving  full  support  to. the  Egyptian  government's  efforts  in  undertaking 
economic reforms  and structural adjustments.  A total of ECU  80 million (or 39%) of 
the fourth  protocol funds  have been committed  for the following  programmes: Public 
Enterprise  Reform  and  Privatization  Programme  (ECU  43  million),  Private  Sector 
Development  Programme  (ECU  25  million)  and  the  Banking  Sector  Reform 
Programme (ECU  11.7 million). 

Under the current fourth financial protocol, ECU 95 million has been allocated to the 
agricultural  and  related  sectors: Nile  Valley  Regional  Programme  (ECU  5 million), 
the  Veterinary  Services  Programme  (ECU  20  million)  and  the  Agricultural  Sector 
Development Programme (ECU 75 million). In addition, EU Member States approved 
in November the financing  of the Bustan Agriculture Development  Project  (ECU  15 
million). 

Concerning  EIB  lending  activity,  three  operations  were  concluded  totalling  ECU 
296 million, of which 220 million was in support of an Egyptian-Israeli private joint 
venture  in  the  oil  refinery  sector.  Commitments  under  the  fourth  protocol  (ECU 
310 million) reached almost 80  % at the end of the year with the majority  being  for 
industry  and  the  balance  for  the  energy  and  SME  sectors.  Commitment  of  the 
protocol's risk capital (ECU  16 million) amounted to 68 %. 

Outside the framework  of financial  protocols, the EC and Egypt have agreed  to use-
the counterpart funds  generated  by thé 'Special Emergency Import Programme (Arab 
Gulf Crisis)' towards financing  of support programmes for economic adjustment:  the 
Social  Fund  for  Development  (LE  776  million)  and  the  Private  Sector  Financial 
Scheme (LE 330 million). 

Food Aid Counterpart Fund (TACF): in  1995, 48 FACF projects  were implemented, 
including a contribution to the local cost of eight protocol projects.  The joint Egypt-
EC  Steering  Committee  held  three  meetings  in  1995  and  approved  twenty-four 
financing requests for a total amount of LE 39 885 899. 

There were  substantial  achievements  within the cooperation programme  with Egypt 
in  1995:  credit  lines  for  the  agricultural  sector  are  operating  efficiently  and  are 
reaching almost all categories of farmers  across Egypt. 

A number of other agricultural projects, the Helwan Waste Water Treatment  Project 
(the cost of which reached ± ECU  100 million), the Natural  Park  sector projects  in 
Sinai and the projects  related to economic cooperation were completed on time with 
satisfactory  impact. 

1995  saw  the  almost  complete  exhaustion  of  the  fourth  protocol  funds  and  the 
beginning of the implementation of the MEDA budget heading with ECU 2.9 million 
being committed for environmental protection.  In July, a programming mission took 
place to decide on the priorities for cooperation for 1996-1998. 

It  is  sometimes  difficult  to  measure  the  real  impact  of  the  assistance.  In the  past, 
delays  have  been encountered  in  implementation.  Implementing  agencies  have not 
always  been  committed  and  sometimes  management  weaknesses  have  hampered 
monitoring.  It has also been difficult  to identify  new projects  in traditional areas of 
operation. 

With the new challenges  and opportunities  brought by the MEDA programme  there 
is  certainly  a  need  to  improve  further  the  implementation  performance  of  EC-
financed  assistance programmes  in Egypt.  The new agreement  should aim to  foster 

a  more  interactive  form  of  cooperation,  allowing  the  EC  to  provide  support  at  a 
sector  level,  where there are clear policy  reform  tendencies. 

The USA and the Bretton Woods institutions provided substantial support in  1995 in 
the sectors of private sector development, education, health and professional  training. 
These are widely perceived to be key areas for the future  development of Egypt. 

JQJRPAN 

1. 

Economic and  political  developments: 

Jordan's  commitment  to  the  Peace  Process  was  confirmed,  after  the  signing  on  26 
October  1994 of the  Peace Treaty  with  Israel, as illustrated  by the  signing  of  various 
cooperation agreements with Israel (including trade and transport agreements). 

Jordan  began  negotiations  for  an  Association  Agreement  with  the  EU  in  July  1995 
and  has  shown  its  commitment  to  fully  participate  in  the  Euro-Mediterranean 
Partnership initiated in Barcelona. 

On the economic front,  in the wake of the Amman Economic Summit (October  1995), 
the  first  regional  summit  to  discuss  economic  issues  facing  the  region  as  a  whole, 
Jordan  launched  a  strong  reform  programme,  aimed  at  opening  and  liberalizing  the 
economy,  through  the  removal  of  trade  and  foreign  investment  barriers.  This 
programme  aims  to  build  on  the  progress  achieved  by  the  programmes  negotiated 
with the Bretton Woods Institutions in  1989. 

2. 

Financial  and  technical  cooperation: 

Structural adjustment  support (cf.  II. Structural  Adjustment): 
Support  for  Jordan's macroeconomic  policies remained  the main priority,  in line  with 
fourth  protocol  provisions.  An  ECU  20  million  grant  was  allocated  as  Structural 
Adjustment  Support and disbursed in 1995. 

Private  sector  development  complements  the  support  to  structural  adjustment,  and 
aims  at  contributing  to  the  economic  transition.  Private  sector  development  was 
promoted  in  a  number  of  ways:  establishment  of  a  Euro-Info  Centre,  the  European 
Community  Investment  Partners  scheme  (ECIP)  and  the  preparation  of  a  Med-. 
Partenariat meeting for the establishment of joint ventures. 

Support to the Peace Process (cf • III. Regional Co-operation): 
Jordan  is  one  of  the  main  beneficiaries  of  this  support  (ECU  11.3  million  in  1995), 
which consists of large-scale  studies  on regional  infrastructure  projects. Most of these 
studies largely  involve Jordan (Joint Israeli-Jordanian water projects, Transport  study, 
Regional Development in the Gulf of Aqaba). 

The  implementation  of  EC  financial  and  technical  cooperation  appears  overall  to  be 
largely  satisfactory: 

*  fourth  protocol  funds  were  90%  committed  at  the  end  of  1994,  indicating  that 
Jordan has a strong absorption  capacity. 

*  On  Structural  Adjustment  Support,  ECU  100  million  (ECU  15  million  out  of  the 
bilateral  protocol  and  85  out  of  the  Special  Facility  for  Structural  Adjustment)  were 
committed  and  disbursed  in the years  1992 to  1995.  This type  of  support  has  helped 
Jordan in meeting the targets of its structural  adjustment  programme implemented  with 
the support of IMF and World Bank. 

-Some difficulties  appear in the implementation of individual projects: 

* macroeconomic management  in Jordan appears to be better than the management  of 
sectoral policies by the public administration. 

*  delays  are  frequent  owing  to  the  inefficiency  and  excessive  centralization  of  the 
local administration and to complex EC procedures. 

the  end  of  1995,  with  operations 

As for EIB lending activity, commitments under the fourth protocol rose to some 90% 
at 
transport, 
telecommunications  and industrial  sectors.  New operations during  1995 amounted  to 
ECU  38  million  including  ECU  13 million  under  horizontal  operations  in  respect  of 
water/waste water and transport sectors. 

in  favour  of 

the  water, 

the  fourth  protocol  funds 

to  the  start  of  the 
1995  saw  the  transition  from 
implementation  of  the  MEDA  budget  heading.  The first programme  to  be  approved 
under  that  heading  was,  in  September  1995,  a  Private  Sector  Development 
Programme  (ECU  7 million). This  programme  consists  of a Business  Service  Centre 
to be established  in Amman whose main task will be to provide high-level  services to 
local  companies.  In  July  1995, a programming  mission  took  place  to  decide  on  the 
priorities of cooperation for  1996-1998. 

The  Bretton  Woods  institutions,  Japan  and  the  US  provided  substantial  balance-of-
payment support in  1995, either through-loan operations or debt forgiveness  (as in the 
case of  US). 

Donor  interest  is high  in the water  sector,  with  the prospect  of projects  related  to  the 
Israeii-Jordanian Treaty. 

LEBANON 

L 

Political  and economic developments 

Lebanon  continued  along 
towards  domestic  consolidation.  Political 
continuity  was  provided  by  Prime  Minister  Hariri  as  the  country  asserted  its 
independence.  At the  back  of the  queue  in the peace  process,  Lebanon  is  seeking  to 

the  path 

10 

forge  links that will help it assert itself, for example, its ties with the European  Union 
with which negotiations on a Euro-Mediterranean  association agreement were opened. 
At the March  cooperation  council the Lebanese authorities expressed  a desire to  open 
talks  for  a new agreement  with the  EU.  Exploratory  talks  were  held  in April  and  an 
initial round of negotiations got under way in November. 

The  economic  recovery  which  started  in  1991  is  looking  quite  promising  and  the 
Lebanese  pound  has  remained  stable  since  1993.  The  exchange  rate  was  1.610 
Lebanese pounds to the dollar at the end of  1995, while inflation  stood at  13.5% (16% 
in 1994). 

The  reconstruction  programme  is  proceeding  satisfactorily,  with  grants  and  outside 
loans  standing  at  USD  1 500  million.  But  the  country  is  falling  into  debt.  External 
debt  stood  at 20% of GDP.  Some headway  has been made on administrative  reform: 
State  structures  are  being  restored  as  are  the  law  courts  and  legal  bodies.  They" 
remain, however, in a precarious state. 

2. 

Financial  and technical  cooperation 

The commitment  rate for the  fourth  financial  protocol  from  budget resources  stood  at 
. 79% in  1995 while the first three protocols were completely used up. 

involving  evaluation  of  damage  and 

Projects 
the 
reconstruction programme  come to an end in  1995, among other things having  helped 
with  the  National  Reconstruction  Programme  in  the  main  sectors.  Other  donors 
consider this project to be a guarantee of the effectiveness  of their own aid. 

technical  assistance 

for 

In  1995,  the  Commission  and  the  Lebanese  authorities  identified  the  following  key 
objectives  of their cooperation: 

(a)  strengthening  administrative  management  of  the  State  as  part  of  the  National, 
Administrative Reform  Programme; 

(b) enhancing the regulatory framework  of the private sector. 

Projects  along  these  lines  were  prepared  at  the  end  of  1995 pending  approval  of  the 
MEDA  Regulation. 

The  EIB  undertook  new  loan  operations  of  ECU  73 million  in  1995, committing  the 
full  amount of the risk capital (ECU 3 million) under the third and fourth protocols, as 
well  as  largely  committing  the  "Exceptional  Assistance"  facility  (ECU  50  million) 
and the fourth  protocol.  Operations under the latter two facilities  have been in  favour 
of projects  in the water/wastewater  and transport  sectors.  A further  EIB operation  in 
favour  of the Air Traffic  sector (ECU  10 million) was also made under the  horizontal 
operations. 

II 

in  the operations  under way the main difficulty  lies with the administrative  weakness 
of  Lebanese  structures.  Future  projects  are  designed  to  come  to  the  aid  of  this 
administration.  The rise in the public debt remains the major  economic problem. 

Aid  provided  by  other  donors  has  been  concentrated  on  the  National  Reconstruction 
Programme.  At the end of  1995 outside financing  stood at 2 729 million dollars. 

The European Union and its Member States were the main donor (40%,  1 094  million 
dollars), followed  by the  Arab  funds  (36%, 971  million  dollars)  and  the  World  Bank 
(16%, 440 million dollars). 

The electricity  sector received  967 million dollars  in aid, the water  sector  252  million 
and the airport  194 million dollars). 

MALTA 

1.  Political and economic  developments 

The structured dialogue with Malta as part of the pre-accession  strategy got under way 
in  accordance  with  the  provisions  adopted  at  the  Association  Council  meeting  of 
12 June.  Meetings were subsequently  held at the level of Heads of State at the Cannes 
European  Council  in  June,  and  then  at  foreign  minister  level  in  November  and 
transport minister level in December. 

Politics  in Malta  continues  to be characterized  by two  fiercely  partisan  camps, on  the 
one  side  a Nationalist  party  with  a  slender  majority  in  favour  of  membership  and  a 
Labour  party  sceptical  about  membership  and  in  favour  of  a  free  trade  area  with  the 
EU, complemented  by sectoral cooperation agreements. 

The  Government's  reforms  aimed  at  aligning  the  country's  economy  on  the 
Community's and at liberalizing foreign  trade have continued.  VAT was  introduced. 

2. 

FINANCIAL  COOPERATION 

The  three  financial  protocols  (1979-93)  from  which  Malta  has  benefited  are 
committed  in  full  (ECU  93.5  million).  Budget  funds  (ECU  38.5  million)  have  been 
disbursed  up  to  64%  and  EIB  resources  (ECU  55  million  committed  in  full)  to  the 
tune of 92%. 
Budget funds  were chiefly  earmarked  for  infrastructure,  training and the promotion  of 
local  economic  activity,  chiefly  in  the  tourism  sector.  EIB  own  resources  were  set 
aside chiefly  for infrastructure  (40%), telecommunications (20%) and the  environment 
and drinking water. 

The fourth  financial  protocol  (1995-98) was signed  in October.  No  commitment  was 
made in 1995. 

12 

MOROCCO 

1. 

Political  and economic  developments 

There was no significant  progress on the political front.  The "transitional" centre-right 
government has been in power since March  1994. King Hassan II left  the  government 
in  place  but  took  a  number  of  initiatives,  among  them  a  decision  announced  on  the 
occasion  of  the  "fourth  anniversary  of  the  Revolution,  the  King  and  the  people"  to 
hold  a  referendum  on  the  Kingdom's  constitution.  Hassan  also  decided  to  make 
public  a  confidential  report  approved  by  five  key  ministers  on  the  state  of  the 
Kingdom and the main objectives of the medium-term economic and social strategy 

1995 was the difficult  year economically  speaking.  The agricultural  sector was hit by 
a  long period  of drought  leading  to a 6.5% fall  in  GDP  given  agriculture's  important 
role  in  the  economy.  Public  finances  continued  to  follow  a  negative  trend  with  a 
deficit  of  5.1%  as  expenditure  outstripped  revenue  and  a  steep  rise  in  debt 
expenditure. 

The external balances also deteriorated: there was an increase in the trade deficit  and a 
fall  in tourist revenues and remittances from Moroccan workers abroad. 

Relations  between  Morocco  and  the  European  Union  saw  the  negotiation  of  new 
the  Moroccan 
fisheries  and  association  agreements.  The  Commission  and 
Government  initialled  the texts on  15 November. 

2. 

Financial  and  technical  cooperation 

At  the  end  of  the  year  the  rate  of  commitment  of  the  four  protocols  was  94%  for 
grants and  100% for EIB loans. 

In  1995, three financing  decisions were taken and charged to the fourth  protocol. 

PROGRAMME 

I AMOUNT 

I DESCRIPTION 

Training in the priority 
areas 

(ECU million) 
6 

Drinking water in small 
centres 

Erosion protection works 
on Sidi-Driss 

20 

5.5 

Project to enhance and bolster 
vocational training in tourism, 
textiles/leather and mechanical 
- engineering 
Continuation of programme to 
supply water and improve waste 
water treatment in rural areas 
Integrated rural development 
programme to manage the  Sidi-Driss 
catchment area 

Implementation  of programmes went ahead at a satisfactory  pace but the start-up of 
new projects encountered teething problems. This is reflected  in the low rate of  fourth 
protocol payments at the end of  1995,  just 26%, owing to slow  decision-making 
processes in the Moroccan administration, a problem shared by all donors. The 
situation got better towards the end of the year, however. 

13 

The first operation under the new MEDA budget heading was approved in 1995 for 
ECU 30 million with the aim of setting up a business advice and support centre (Euro-
Maroc Entreprise) and a management and coordination unit for schemes to support the 
private sector. These activities will be operational in 1996. 

The balance of fourth-protocol EIB own-resources loans was committed in full and 
the eventual breakdown of funds was in line with the initial indicative programming: 
41 % in economic infrastructure  and 14% in the industrial sector. 

SYRIA 

Economic and political development 

Syria's political and economic  system is highly centralized, regulated and controlled 
but since the mid-eighties, whilst maintaining the existing political structure, the 
Government has embarked on a tentative modernization and liberalization programme 
entailing development of the private sector, opening up certain economic activities to 
private investment, phasing out exchange controls and modest reform of the public 
sector. 

The reaction of the private sector has been encouraging and unused capital has been 
mobilized: the private sector now accounts for 60% of GDP, 62% of the country's 
exports and 25% of its imports. 

However, as Syria's economic plan is geared to stability, the Government is keeping a 
tight rein on economic management and the reforms adopted so far have been slow in 
coming. 

Syria participated actively in the Euro-Mediterranean Conference in Barcelona in 
November but took no definitive decision as to the possibility of negotiating an 
association agreement. 

Financial and technical cooperation 

Budget funds set aside under the first two protocols were committed in full.  The third 
and fourth protocols (ECU 79 million), which had been frozen by the European 
Parliament and did not enter into force until January 1993 and April 1994 
respectively, have since then been 48% committed. 

1995 was mainly given over to implementation of projects financed under the third 
and fourth protocols and committed in 1994, namely : 

14 

- Development of the electricity sector 
- Support for the banking sector 
- Demography  and family  planning 

ECU  11 million 
ECU 4.5  million 
ECU 2 million 

Implementation of these projects has not so far posed major problems. 

In the course of  1995, ECU 9 million was committed  to set up a business  centre  with 
the purpose of supplying services and advice to Syrian firms. 

Efforts  were  also  made  to  identify,  with  the  Syrian  authorities,  fields  in  which  the 
Community could provide assistance over the period  1996-98, namely: 

- modernization of administrative structures; 

- follow-up  support to businesses; 

- training. 

Studies  were  undertaken  in these fields in order  to prepare cooperation  projects  to  be 
funded  by MEDA. 

EIB  own-resources  loans  from  the first and  second  protocols  (ECU  98  million)  were 
committed  in full.  EIB loans under the third  and  fourth  protocols  (ECU  225  million) 
have  yet  to  be  used.  They  were  chiefly  intended  to  finance  improvements  to  the 
power  distribution,  roads  and  rural  telephone  networks.  EIB  operations  in  Syria 
during  1995  remained  suspended  on  account  of  arrears  owed  by  Syria  to  certain 
Member States of the Bank. 

TUNISIA 

1. 

Political  and economic  developments 

Tunisia's  political  system  is  characterized  by  centralization  of  powers  with  the 
President.  The  transition  to  multiparty  democracy  and  the  protection  of  basic 
freedoms has slowed down in recent times. 

In  1986  Tunisia  embarked  on  a  major  structural  adjustment  programme  aimed  at 
putting in place market mechanisms and creating a climate conducive to business. 

The  results  of  the  country's  economic  reforms  in  1995 are  satisfactory  by  and  large. 
GDP  swelled  by  2.6  %  and  the  budget  deficit  shrank  from  5.4%  in  1986 to  4.4%  in 
1995.  Inflation  was kept in check.  Exports of manufactures  grew on average by  8.4% 
between  1987 and  1995. 

The reform of public enterprises continued while the pace of privatization sio wed-

In July, Tunisia signed a Euro-Mediterranean  accord with the EU. 

15 

2. 

Financial and technical  cooperation 

At the end  of  1995 the  rate  of  commitment  for  the  four  financial  protocols  was  96% 
for  grants and  100%» for  EIB loans.  Including  the operations  listed  below, the rate  of 
commitment  for  the  fourth  financial  protocol  stood  at  91%.  Implementation  of 
programmes financed through the financial  protocols is satisfactory  on the whole. 

The  Commission  approved  the  following  programmes  in  1995  for  a total  of  ECU 53 
million in the form  of grants and risk capital: 

PROGRAMME 

I AMOUNT 

I DESCRIPTION 

" 

Water and soil 
conservation measures. 
Phase II 

(million ECU) 
20.00 

*  Rural development in the 

5.00 

Sfax region 

Risk capital 

8.00 

Structural adjustment 

20.00 

The objective is to combat erosion by 
water and to manage the catchment  areas 
through a participatory approach and to 
obtain water resources for  domestic, 
agricultural and pastoral purposes. 
The project  is designed to develop 
agriculture by creating and  strengthening 
cooperatives responsible for using 
infrastructure 
This operation, run by the EIB, targets 
Tunisian industry in its drive to 
recapitalize and create joint ventures. 
(see section on structural  adjustment) 

The  rural  development  sector  received  64% of the  Community  funds  and  the  results 
have been satisfactory.  The programme  to conserve water and soil  (ECU  65  million) 
achieved  its main objectives, namely to catch rainwater and strengthen the water table 
and,  on  the  other  hand,  initiate  agricultural  development  in  these  areas  with  the 
involvement of the farmers.  These programmes will help improve living conditions in 
the countryside, check emigration to the coast and urban regions and create jobs. 

Major  delays  were  experienced  in  implementing  the  programmes  concerning  the 
establishment  of two vocational  training centres and support  for  quality  management, 
partly  as  the  authorities  concerned  are  not  sufficiently  cognizant  with  Community 
procedures  and  partly  because  their  contract  award  procedures  are  so  cumbersome. 
The situation  improved  towards the end of the year and these programmes  should  get 
off the ground without any hitch in  1996. 

The  first  operation,  worth  ECU  20  million,  financed  from  the  new  MEDA  budget 
heading  was  approved  in  setting  up  the  "Euro-Tunisie  Entreprise"  programme.  The 
project will provide a number of services to the private sector so that it can restructure, 
and  become  more  competitive.  The  programme  has  fallen  behind  for  administrative 
It  is  expected  that  the 
reasons  but  these  problems  will  be  ironed  out  in  1996. 
programme will start in mid-1996. 

The Bank's own resources  (Fourth  Protocol) were committed  in full  by the end  of the 
year:  45% for  industry  (credit  line,  creation  of  industrial  zones)  and  tourism  (credit 

16 

line) and 55% for economic infrastructure  (mobilization of water resources and means 
of communication). 

Risk capital was committed in full to strengthen the capital of Tunisian firms via local 
financial  institutions. 

WEST BANK AND GAZA 

1.  Economic and political developments 

Following  the  signature  of  the  Israel-Palestinian  Interim  Agreement  on  28 
September  1995, Israel redeployed  its army from  the main Palestinian  towns  in the 
West  Bank  (except  Hebron),  opening  the  way  to  the  first-ever  democratic 
presidential and legislative elections in the West Bank and Gaza Strip on 20 January 
1996. 

The  Palestinian  Authority  now  has jurisdiction  over  civilian  government  functions 
throughout  the  West  Bank  and  Gaza  Strip,  although Israel  still  maintains  a  strong 
and highly  visible security presence.  The greatest danger to current  arrangements, 
and  to  further  progress  in  talks  on  what  will  be the permanent  status  of  the  West 
Bank and Gaza Strip, remains the continuing threat of terrorist attack on Israelis. 

In  the  relatively  benign  atmosphere  leading  to  the end  of  1995,  economic  activity 
showed  signs  of  picking  up,  and  a  good  revenue  performance  allowed  the 
Palestinian  Authority  to  rein  in  what  had  been predicted  in  April  to  be  a  serious 
budget deficit.  By the end of the year,  the Palestinian Authority  had put together a 
list of  "core investment projects",  in effect  its list of priority  investments  in public 
infrastructure.  These  were  for  presentation to the donors  for  funding  according  to 
pledges  originally  made  in  1993,  at  the  Ministerial  Conference  on  Economic 
Assistance which was to take place on 9 January 1996. 

In  the  wake  of  the  Barcelona  Conference,  the  Commission  sought  to  involve  the 
Palestinians as full partners in the building of the Euro-Mediterranean Partnership.  In 
October  the  Council  requested  the  Commission  to  explore  the  conclusion  of  an 
agreement with the Palestinians  in the interest of confirming  the Palestinians  as  full 
participants  in  the  Barcelona  process.  The  Commission  thus  began  a  process  of 
exploratory talks with the Palestinians. 

2.  Donor activity 

Donors  continued  to  carry  out  their  own  programmes,  loosely  coordinated  with 
each other through  the local  aid coordination committees.  The deflection  of donor 
funds from reconstruction  still dogged the donor effort;  at the  April  1995 meeting 
of  the  donors,  a  budget  deficit  of  $136m  was  forecast  by  the  end  of  the  year. 
Donors  agreed  to  meet  this  deficit  according  to  the  conditions  of  the  Tripartite 
Action Plan.  The TAP, signed by Israel, the Palestinian Authority  and by Norway, 
representing the donors, in April  1995, obliged the Palestinian Authority to exercise 

17 

expenditure  restraint,  and  Israel  to  facilitate  normal  flow  of  Palestinian  trade  and 
labour. 

By the end of  the year,  as the deficit  position improved,  attention turned once again 
to  long-term  development.  The  Palestinian  Authority,  working  with  the  World 
Bank,  prepared  a  list  of  priority  investments,  first  introduced  to  the  donors  at  the 
World Bank Consultative Group on the West Bank and Gaza Strip  in October  1995, 
which were to be presented formally  to the donors at the Ministerial  Conference. 

Faced with a wide array of international donors, and a huge influx of donor funds, the 
Palestinian Authority seemed to have some difficulty  in prioritizing and implementing 
a  large  number of  infrastructure  projects.  Donors  became  increasingly  frustrated  at 
the seeming  lack  of  a single  locus  of authority  for the programming  of  donor funds. 
Meanwhile the administration continued to grow, and at the beginning  of the year the 
budget  deficit  threatened  to  deflect  attention  away  from  the  task  of  long-term-
development. 

These  problems  explain  why  the  donors  insisted  on  the  signature  of  the  Tripartite 
Action  Plan  in  April  1995,  and  on  a  single  interlocutor  for  the  programming  of 
assistance projects.  By the end of the year, this approach seemed to be working; the 
deficit was under control, and the Palestinian Authority was due to present its priority 
funding  needs  to  the  donors  at  the  major  Ministerial  Conference  on  Economic 
Assistance to the Palestinians, in Paris on 9 January 1996. 

The  elections  in  the  same  month  confirmed  the  beginning  of  a  new  stage  in  the 
development  of  the  West  Bank  and  Gaza  Strip.  Horrendous  bomb  attacks  in 
Jerusalem and Tel Aviv just a few  weeks  after the elections  were  instead to provoke 
in  1996  the  re-imposition  of  tight  closure  by  Israel  on  the  West  Bank  and  Gaza 
Strip,  the  upsetting  of  the  donor  programmes  of  assistance,  a  major  fall-off  in 
economic  growth  and  an  upward  trend  once  again  in  the  Palestinian  Authority 
budget deficit. 

3. 

Financial  and technical cooperation 

During  1995  the  Commission  committed  nearly  ECU  100  million  in  development 
assistance for the West Bank and Gaza Strip, closely coordinated with the Palestinian 
Authority.  Community assistance  in  1995 amounted to around one third of all donor 
commitments in 1995, confirming the Community as the biggest single donor. 

investment 

included  a  major  programme  of 

Projects  in  1995 
in  municipal 
infrastructure,  with  the  emphasis  on  labour-intensive  projects,  the  Gaza  City  solid 
waste programme, the completion of the European Gaza Hospital  at Khan Younis, as 
well as, later in the year, a programme of support to the private sector.  Meanwhile the 
Commission  continued the implementation of other major projects, such as the ECU 
42 million programme of housing construction, the rehabilitation of UNRWA  schools 
in the West Bank and Gaza Strip, and the reintegration of ex-prisoners into Palestinian 
society. 

IS 

However, the importance to the peace process of the Palestinian Authority  taking  over 
the  administration  of the  West  Bank  and  Gaza  Strip  from  its inception  in  May  1995, 
meant  that  the  donors  were  under  some  pressure  to  counter  the  immediate  financing 
difficulties  of  the  new  administration.  The  member  states  advised  that  it  would  be 
appropriate  that  funding  be  accorded  from  the  Community  budget.  Although  vit 
prefers  always to finance  long-term  infrastructure  investment projects,  in this case the 
Commission  dedicated  nearly  40%  of  1995  Community  assistance  to  the  recurrent 
costs  of  the  Palestinian  Authority.  This  was  a  greater  proportion  than  any  other 
donor. 

Furthermore, none of the donors wished that dependence on external  financing  of the 
budget become chronic.  The Commission was instrumental  in pushing the idea of the 
Tripartite Action Plan to help control  the deficit,  and by the end of the year this  tactic 
appeared  to  be  working.  The  Commission  equally  began  to  press  the_ Palestinian 
Authority to define a development strategy to provide direction to the donor activities.-

The  European  Investment  Bank made  its first loan to the  West Bank  and  Gaza  Strip, 
under  the  horizontal  arrangements,  committing  ECU  26  million  as  credit  to 
Palestinian  enterprise  through  two  local  banks,  although  the  political  and  economic 
conditions have militated against rapid utilization of theses lines of credit. 

The  eighth  EC-UNRWA  (United  Nations  Relief  and  Works  Agency  for  Palestine 
refugees)  Convention,  governing  Community  contributions  to  the  Agency  for  the 
period  1993-96, came to  a close.  The  Commission was  mandated  by  the  Council  to 
commence the negotiation of a ninth convention.  The EU remains the largest donor to 
UNRWA's  recurrent  budget,  counting  the  contribution  from  the  Community  and  the 
bilateral  contributions  of the Member  States  (the  Community  alone  being  the  second 
largest  donor  after  the  US).  The  Community  also  committed  funds  in  1995  to  the 
rehabilitation,  under  the  auspices  of  UNRWA,  of  the  water  and  waste  networks  in 
eight Palestinian refugee  camps in Lebanon. 

At the  same time  the  Commission  continued  throughout  1995 its  programme  for  the 
technical preparation of elections, including, amongst other aspects, the drawing up of 
constituency  and  polling  district  boundaries,  the  preparation  of  registration,  the 
training  of  registration  and  election  officers.  Working  with  the  Palestinian 
Commission  for  Local  Government  and Elections, this work was indispensable  to  the 
holding of elections in January  1996. 

The  electoral  period  began  in November  1995, and by that time  the  European  Union 
was  mobilizing,  with  Commission  logistical  support,  the  first  of  300  EU  observers, 
whose  presence  would  help  lend  international  legitimacy  to  the  election  of  the 
President of the Palestinian Authority  and of the Palestinian Legislative  Council.  The 
Commission  also  put  in  place  a  team  of  administrators  who  not  only  directed  the 
activities of these observers, but were also responsible, in the name of the EU, for  the 
coordination of a further  300 international  observers. 

19 

II. Structural  adjustment 

The  special  ECU  300  million  package  to  support  economic  reforms  in  the  southern 
and eastern Mediterranean countries implementing a structural adjustment  programme 
is  an  innovation  of  the  fourth  generation  of  financial  protocols  covering  the  period 
1992-96. 

A limited share of the funds  allocated  under the fourth  protocol  concluded  with  those 
countries may be added to the funds  provided under the package. 

A  new  approach  to  support  for  structural  adjustment  was  adopted  in  1995.  An 
ECU 20 million operation for Tunisia brings in for the first the time the new  approach 
to structural  adjustment  recommended  by the Council on  1 June  1995 (Resolution  No 
7566/95)  which  involves  direct  aid  for  balance  of  payments  instead  of  an  imports 
programme,  plus  implementation  of  a  coherent  budget  strategy  (social)  rather  than 
precise targeting of counterpart  funds. 

Funds  were  allocated  to  eligible  countries  on  the  basis  of  parameters  measuring 
structural imbalance and long-term development needs. 

By  the  end  of  1995,  ECU  260  million  out  of  a  total  ECU  300  million  had  been 
committed (see table below): 

EU SUPPORT FOR STRUCTURAL  ADJUSTMENT 
COMMITMENTS AS AT END 1995 (in ECU million) 

ALGERIA 
MOROCCO 
TUNISIA 
JORDAN 
RESERVE 
TOTAL 

special package 
55 
60 
60 
85 
40 
300 

financial  protocol 
15 
20 
-
15 

TOTAL 
70 
80 
60 
100 

50 

It would  be premature  to  attempt  an evaluation  of the  full  effects  of the  programmes 
but it could be  said that they  have contributed  to the implementation  of the  economic 
reforms,  reduced  the  need  for  external  funding  and  boosted  expenditure  on  the  most 
disadvantaged  groups of the population. 

Algeria  was  granted  a  contribution  of  ECU  70  million  to  supportits  reform 
programme  in  the  low-cost, housing  sector.  Despite  administrative  hold-ups,  1995 
saw implementation  of the first instalment  of the sectoral  imports programme  and  the 
beginning  of  the  constitution  of  the  corresponding  counterpart  funds.  At  the  same 
time,  an  agreement  in  principle  was  reached  on  the  budgetization  of  the  counterpart 
funds and their use. 

20 

After  a  decision  by  the  Council  to  support  the  macro-economic  stabilization 
programme  through  a  second  macro-financial  loan,  the  Commission  disbursed  the 
first  instalment in 1995 (ECU 100 million). 

Morocco was granted ECU 80 million in Community aid for its structural  adjustment 
programme.  The results have been more than satisfactory both from the point of view 
of the economic reforms  and in terms of budget support (loans made available from 
counterpart  funds  have been taken up and economic  indicators  in the target  sectors 
have shown sustained growth for the period concerned). 

Tunisia was the first country to receive Community aid for  its structural  adjustment 
programme (ECU 40 million).  The counterpart funds financed job creation schemes, 
which thanks to Community  support have been kept going.  Economic reforms  have 
In 
been  implemented  according  to  plan  and  social  indicators  have  improved. 
mid-1995  a  new  adjustment  operation  worth  ECU  20  million  was  approvedr 
Community  aid  is  supporting  a reform  programme  and  will  contribute  to  reducing 
Tunisia's  external  funding  needs, controlling  its  budget  deficit  and  maintaining  the 
appreciable level of social spending. 

In 1995, Jordan received ECU 20 million in support on top of the ECU 50 million in 
1992-93  and  ECU  30  million  in  1994, bringing  the  total  to  ECU  100  million  for 
1992-95.  This programme follows on from previous ones and has helped  significantly 
towards  satisfactory  implementation  of  the  structural  adjustment  programme  in 
collaboration with the IMF and the World Bank. 

21 

III. REGIONAL COOPERATION 

The Commission approved resources of ECU 11.3 million for a range of Middle East 
Peace Projects  designed  to  initiate and  support  regional  cooperation.  These.projects 
cover a wide range of topics:-

•  Water Projects arising out of the Israel/Jordan Peace Treaty 
•  Regional Development Projects 
Gulf of Aqaba 
South Eastern Mediterranean 

Interconnection of Electricity Grids 

•  Transport  Infrastructure 
• 
•  Water Data Bank 
•  Regional Veterinary Cooperation 
•  REDWG Monitoring Committee Secretariat 

Project  Steering  Committees,  comprised  of  representatives  of  the  Egyptian,  Israeli, 
Jordanian  and  Palestinian  administrations,  and  chaired  by  the  Commission  at  the 
request of the regional parties, have been set up and cooperative working relationships 
between  the  members  have  been  established.  The  opportunity  to  jointly  tackle 
problems of common concern and to set up cross-border initiatives leading to a more 
secure future has been welcomed. The REDWG Secretariat has been formally opened 
in Amman and is functioning  efficiently. 

Part of the funds  committed  under the  1995 budget  have been used  for  preparatory 
work  with  the  regional  authorities  in  drafting  and  agreeing  terms  of  reference  for 
feasibility  and other studies, for concept papers, and for expenses related to meetings 
of  the  Steering  Committees.  The  bulk  of  the  funds  have  been  utilized  to  finance 
contracts  with  European  consulting  consortia  to  perform  the  techno-economic 
feasibility  studies for the various projects. The results of these feasibility  studies will 
be available during 1997. A Technical Support Unit has been set up to provide locally 
resident  project  managers who, within the framework of regional  development, will 
identify,  detail,  promote  and  supervise  the  implementation  of  the  different  studies, 
projects and programmes for the Gulf of Aqaba and the South Eastern Mediterranean 
regional development projects. 

Work has also been initiated with the regional transport authorities on the process to 
define and agree upon a series of trans-national transport corridors through the region. 
Corridor  Standing  Committees  have  been  set  up  and  held  their  first  meetings  in 
Amman in June  1996. The Regional. Animal Health Programme has been established 
and technical  assistance had been provided to the Palestiman Authorities to assist in 
building a functioning  veterinary service. 

22 

Demography 

in  the 
The  Commission  continued 
Mediterranean, allocating  a total of ECU 49 million.  Demography  Programmes  for 
the Mediterranean mainly concentrated on West Bank and Gaza Strip and Turkey (see 
budgetary table in part IV). 

to  manage  41  population  programmes 

A three-year  ECU 4.26 million agreement was signed with the Palestinian  Ministry 
of Health for a National Programme for Women, Health and Family Planning in Gaza 
and  the  West  Bank.  An  additional  ECU  360  000  was  allocated  for  technical 
assistance to the programme, provided by the British NGO Population  Initiatives  for 
Peace. 

In  Turkey,  the  Family  Planning  Association  together  with  Pathfinder  International, 
commenced a three-year Family Health and Family Planning, Education, Information, 
Training  and  Services  Programme  in  Diyarbakir.  Total  amount  of  the  project  was 
ECU 482 357. 

In the course of  1995, the Commission tabled a proposal for a Council Resolution on 
support for demographic policies and programmes in developing countries, as a legal 
basis for the corresponding, special budget heading  B7- 631, specifically  targeting the 
follow-up to the ICPD Programme of Action. 

The  1995  budget  heading  B7-5050  evaluation  highlighted  the  constraints  the 
European  Commission  had  in  efficiently  developing  and  managing  population 
programmes in the Mediterranean. One of the reasons was the lack of a clear policy. 
During  1995 internal coordination  began on the development  of a population  policy 
for  the  European  Commission;  this work will  continue  in the  context  of  MEDA  in 
1996. 

Migration 

Projects under heading B7-5055 "Observatory for migratory flows and positive action 
concerning migration"  (total ECU 3 million) were allocated as follows: 

ECU 1  million was used by the Secretariat-General (Justice and Internal Affairs  Task 
Force) in the framework of the "Observatory for Migration Flows". 

ECU 1.85 million was earmarked for  10 projects of which the different  themes are: 
integration of women and youth, creation of enterprises, human resource 
management,  economic development,  local democracy, and health.  The total budget 
for these projects is ECU 1.9 million. 

The remaining  ECU  150 000 was used  for small schemes such as a feasibility  study 
on the role of women in migration. 

23 

Communication 

The  Commission  has  tried  to  develop  a  communication  programme  which  entails 
dialogue  with  the  relevant  partners  and  has  fostered  activities  which  reflect  this 
approach.  The  budget  for  1995  was  around  ECU  500  000  and  has  allowed  the 
following  activities to be undertaken: 

1. 

Promotion  of EU policies towards the Mediterranean  Partners 

* 

a)  Provision  of  press  releases  whenever  required  and ' forwarding 

to  the 
Spokesman's  Service  where  they  are  published  and  distributed  to  the 
accredited press in Brussels. 

b) 

In  coordination  with  the  Spokesman's  Service,  organisation  of  technical 
briefings  for accredited journalists in Brussels on special MNC events. 

c)  On request, provision of articles concerning relations between the EU and the 

MNC and the Middle East 

d)  coordination of a number of publications : 

Brochures:  The MED-Programmes  Handbook,  Upper  Golf and Aqaba  Oil 
Spill  Contingency Project,  The Barcelona Declaration  . All  brochures  have 
been published in English, French and Arabic. 

2. 

Support of the MNC delegations' activities 

a)  Preparation  of  newsletter  material:  provision  of  articles  and  background 
material on EU-MNC events to supplement material on general EU subjects. 

b)  Constant  contact  with  delegations:  link  between  the  delegations,  facilitation 
of  the  exchange  of  information  and  reply  to  all  kind  of  queries  (video 
material, photographs, background information,  etc.). 

c)  Organization  of  Information  Officers'  meetings:  The  objective  of  these 
meetings  was  to  establish  an  overview  of  the  delegations'  information 
activities,  as well  as to  discuss  ways  of  improving  cooperation  between  the 
delegations and Brussels and between delegations themselves. 

3.  Organization  of information visits (content and logistics^ 

Visit of young diplomats from  Mediterranean partners, September  1995 

Maghreb journalists'visit, OctoberT 995 

Syrian journalists' visit, December  1995 

These visits have been aimed at exposing the different  interest groups of the 
region to the EU and its institutions with a special focus on the EU's relations 
with the relevant  countries. Generally  a one-week  programme  was  organized 
including subjects which were requested by the visitors. 

b)  Contract between DGIB and International radio and TV stations: 

24 

AITV  -  Agence  Internationale  d'Images:  National  TV  stations  of  the 
following  countries  subscribe  to  this  French  TV  agency  :  Saudi  Arabia, 
Egypt,  The  United  Arab  Emirates,  Jordan,  Morocco,  Oman,  Qatar,  Syria, 
Tunisia,  Yemen, Djibouti,  Israel, Mauritania,  Iran and  Algeria.  In  1995 they 
produced  news  flashes,  dossiers  of  4  -  5  minutes  and  magazines  of  12 
minutes.  The  programmes  cover  subjects  of  Euro-Arab  interest  and  are 
chosen in close cooperation with AITV's local correspondent in Brussels. 

Conclusion: 

In the  future  it may  be useful  to consider  how to ensure that  the above  activities  fall 
within  a coherent  and  comprehensive framework thus facilitating" management  of  the 
activities  whilst  increasing  the  variety  and  impact.  For  example,  more  specialized 
publications, aimed at informing  the Mediterranean Partners about EU activities in the 
region, the reinforcement  of the Euro-Mediterranean  Partnership  and the  follow  up  of 
the Barcelona  Conference,  should be produced. These  should be published  in Arabic, 
French and English. 

Culture 

The importance of the cultural and information  dimension of Community action vis-à-
vis  its  Mediterranean  partners  is  npw  widely  recognized.  One  of  the  Commission's 
fields  of  action  in the  Mediterranean  is the common  cultural  programme  of the  EU's 
delegations in the Mediterranean partner countries. 

The  Commission  extended  the  scope  of  already  existing  events  with  joint  action 
involving  the  Member  States, adding  in  1995 the new dimension  of joint  action  with 
the partners  aimed  at highlighting  Europe's  cultural  diversity  and  the  contribution  of 
the Mediterranean partners' culture to European culture. 

In  1995 two types of cultural activity were pursued to the tune of ECU 400 000: 

1. activities with a potentially  "regional" character: the tour of thé European  Chamber 
Music Orchestra (ECCO), the tour of the European Baroque Music Orchestra, the Jazz 
Caravan (itinerant Jazz Festival) and the European Film Festival, etc.; 

2. activities of a "local nature": Archaeology  Festival in Damascus, European  Cultural 
Fortnight in Morocco (Views on Europe), etc. 

Another  field  of  action  is  support  for  the  production  and  dissemination  of  cultural 
products, covering books, the cinema, music, translation,, cultural festivals  (Festival of 
Israeli and Palestinian Culture in Brussels), archaeology. 

Decentralized  Cooperation 

Decentralised  cooperation  aims to  increase  mutual  understanding  between  the  Union 
and  its Mediterranean  Partners and to promote the role of civil  societies. The need  for 

25 

this type of cooperation with the Mediterranean  Partners was made very clear at the 
Barcelona  Euro-Mediterranean  Conference  in  November  1995  where  decentralized 
cooperation was given the full  support  of Foreign Ministers of both the EU and the 
non-EU Mediterranean Partners. 

Decentralized  cooperation played an important role in the Commission's activities in 
1995 through Med Urbs (ECU 9 million), Med Media (ECU 7 million), Med Campus 
(ECU 9 million), Med Invest (no new commitments), Med Migration (ECU 2 million) 
and Med Avicenne (no new commitments). 

Some 200 projects were cofinanced  by the Commission through the Med programmes 
in 1995 and a call for proposals for projects for the years 96/97 was published in mid-
1995. 

Following  evaluations  carried  out by outside experts  in  1994 and  needs  assessment-
seminars held  together  with  the participants  in the Med programmes  in  1995  some 
changes  were  introduced  to  the  different  programmes  to  reflect  the  needs  of  the 
Mediterranean  Partners  more  closely  and  take  into  account  certain  lessons  learned 
during the first two years of the programmes: 

•  projects  previously financed on  a  yearly  basis  have  been.converted  into  multi-

annual projects to increase efficiency;  s 

•  a limitation in the number of themes and network partners has been introduced; 
• 

the application procedures have been changed in order to allow a better selection 
system; 

•  more emphasis has been put on concrete results and outputs of the projects. 

In October  1995 the Court  of Auditors  gave the Commission  advance warning  of a 
report  it  was  conducting  on  the  operation  of  the  programmes  and  which  had 
uncovered  serious  deficiencies  in  their  management  system  and  the  delegation  of 
responsibilities to external organisations. In the light of this warning the Commission 
called a halt to the operation of the programmes at the end of 1995 in order to devise a 
new management system to take account of the deficiencies  uncovered by the report 
and to take action against any body responsible for irregularities. At the same time the 
Commission  made  clear  that  this  in  no  way  called  into  question  the  value  of 
decentralized cooperation as a means of supporting civil society in the Mediterranean 
partners  and  the  Commission's  wish  to  pursue  such  activities  subject  to  putting  in 
place the necessary precautionary mechanisms. 

26 

IV. FINANCIAL OVERVIEW 

PROGRAMME: Partnership with the Mediterranean countries. 

MEDA BUDGET HEADING (B7 410) 

ECU thousand 

1994 

1995 

Budget 

Execution 
% 

Initial 
budget 

Actual 
budget 

Carryover 
to1996 

. -% 

Commitments 

65 850 

98.4 

162 900 

172 900 

99.8 

Payments 

52 200 

61.5 

85 000 

91000 

54.4 

N.B. This chapter incorporates former items B7-4080 (multi-regional cooperation), 
B7-4081 (Euro-Arab regional cooperation) and B7-4082 (job creation in the 
Maghreb). 

135 projects and operations were implemented, of which 20 were for an amount in 
excess of ECU 1  million. 

Those 20 projects break down as follows (commitments made in 1995, in million 
ecus): 

Support for economic reforms 

Development of the private sector in Morocco 

Development of the private sector in Occupied Territories 

Support centre for Tunisian  firms 

Global EIB loan for investment 
in SMEs in Occupied Territories . 

Programme to develop 
Jordanian private sector 

ECU million 

30.0 

3.0 

20.0 

6.Q 

7.0 

27 

Support for development of civil  society 

MED Techno 

MED Urbs 

MED Media 

MED Campus 

Programme to develop 
communities in Occupied  Territories 

Regional  cooperation 

Middle East peace process 

University of Peace in the Middle East 

Agricultural training programme  in 
Mediterranean partner countries 

Environmental  protection 
Interest rate subsidies for environment  projects 
in Israel 
in Turkey 

in Jordan 

Water project  in Limassol, Cyprus 

Technical assistance in Aegean  (Turkey) 

Strengthening FODEP pollution  fund 
in Tunisia 

Upper Gulf of Aqaba Oil 
spill contingency  project, 
Egypt 

TOTAL 

7.0 

12.0 

8.0 

10.0 

5.0 

11.3 

1.2 

2.0 

2.4 
8.2 
9.5 
3.1 

2.0 

8.3 

3.0 

2.9 

161.9 

28 

PROGRAMME :  Support for peace process (West Bank / Gaza) 

BUDGET HEADINGS : B7 711 

thousand ECU 

1994 

1995 

Budget 

Execution 

Initial 
budget 

Actual 
budget 

Execution 

Carryover 

«  1 

% 

% 

to 1996. 

Commitments 

60 000 

97.7 

52 000 

68 400 

100 

Payments 

45 000 

98.7 

30 000 

85 000 

"63 

-

The table below summarizes commitments made during the course of 1995 on the 
budget heading in question: 

Project 

1995 

commitments 

Universities and community colleges - recurrent costs 

Primary and secondary schools - recurrent costs 

Support for the 1996 central budget of the PA 

Gaza City solid waste programme - completion 

institutional support programme 

Municipal support programme 

Completion of the construction of the Khan Younis hospital 

Preparation of elections 

• 

TOTAL 

15 

10 

15 

5 

2.5 

10 

7.5 

2 

.  67 

29 

PROGRAMME OR ACTION : Economie cooperation with Mediterranean countries 

BUDGET HEADINGS : B7 4050, B7 4051, B7 406, B7 407 

V 

thousand ECU 

1994 

1995 

Budget 

Execution 

Initial 
budget 

Actual 
budget 

Execution 

Carryover 

% 

% 

to 1996 

Commitments 

299 000 

99.9 

305 000 

299 500 

99.7 

Payments 

254 000 

83.7 

305 000 

193 000 

86.3 

-

The attached tables give an overview of the implementation of the four financial 
protocols covering the period 1978 - 91.  Note that 69% of third protocol funds 
committed 21% of fourth protocol funds have been paid. 

III.  Operations carried out and utilization of budget allocations 

Item B7-4050: first and second protocols with southern and eastern Mediterranean 

One project in excess of ECU 1  million was committed: 

Programme to develop the agricultural 
sector in Egypt: 

4.9 

Item B7-4051 : third and fourth financial protocols with the southern and eastern 
Mediterranean countries 

In 1995, 63 projects or measures were approved, of which 23 for an amount in excess 
of ECU 1  million. 

30 

The 23 projects break down as follows  (1995 commitments in ECU million): 

Project 

Morocco 

Erosion protection works on the Sidi Driss 

Drinking water supply and 
waste water 

Support for training in priority sectors 

Support for maternal and 
neonatal health 

Tunisia 

Conservation of water and soil 

Development of dams 
and irrigation  system 

Rural development in Sfax region 

5.5 

20.0 

6.0 

9.0 

20.0 

3.0 

5.0 

Programme of support for structural adjustment 

20.0 

Egypt 

Interest rate subsidy for an environment project 
for the Alexandra National Iron and Steel  Company 
Population programme in Upper Egypt 

Gulf of Aqaba protection  development 
project 

Helwan waste water project 

MISR compressor  factory 
risk capital  operation 

Agricultural  sector  development 
programme 

5.0 

10.0 

10.0 

3.0 

6.0 

70.0 

31 

I Lebanon 

Global loan Lebanon invest 

Global loan capital risk Lebanon Invest 

Syria 

PEE Transfer  of interest rate subsidy 

Population programme 

PEE Transfer  of interest rate subsidy 

Euphrates irrigation 

Programme to develop private sector 

Jordan 

JEPCO IV interest rate subsidy 

Structural adjustment  support programme 

TOTAL 

1.0 

2.0 

6.0 

2.0 

7.0 

2.0 

9.0 

3.0 

20.0 

240.0 

Projects costing less than ECU  1  million targeted programmes to develop urban 
communities, tourism, rehabilitation of public administration and studies to prepare 
programmes to develop the private sector. 

Article B7-406: support for the Kurds in Iraq 

A project worth ECU  1  million was committed. 

Support for the UNCF 

Article B7- 407: Support for  UNRWA 

Social welfare  programmes for Palestinian 
refugees 

1.0 

32.0 

32 

Funds actually available under chapter B7-40 for  1995 and administered by DG IB 
were implemented: 
99.7% for commitment appropriations 
86.7% for payment appropriations 

33 

Annex 1 

List of  1995 demography projects  in the  Mediterranean 

Recipient body 

Amount 
ECU 

Project 

Country 

1. 

Palestinian Ministry of Health 

4 260 000 

2. 

3. 

4. 

5. 

6. 

Population Initiatives for 
Peace (P1FP) 

PIFP - Johns 
Hopkins University 

FPA Turkey/ 
Pathfinder  International 

Turkish Family Health and 
Planning Association 

Population Initiatives  for 
Peace (PIFP) 

360 000 

50 000 

500 000 

43 452 

51 700 

7. 

World Population  Foundation 

37 152 

8. 

IIASA 

9. 

Centro de Investigaciones y 
Promociôn 
Iberoamérica-Europa  (CIPIE) 

10. 

Femconsult 

11. 

Euro Health Group 

12. 

Marie Stopes  International 
(MSI) 

50 000 

28 356 

66 224 

66 000 

165 310 

GRAND TOTAL 

5 678 194 

National  Programme  for 
Women, Health and 
Family Planning in Gaza 
and the West Bank 
Technical Assistance to 
Programme  Palestinian 
Ministry of Health 
Video film : "Arab 
women speak out" Gaza, 
West Bank 
Family Health & Family 
Planning,  Education, 
Information,  Training 
and Services, Diyarbakir 
Conference  on  "Family 
Planning & Family 
Health in Islam" 
Needs assessment 
mission for IEC 
programme 
Feasibility  mission, 
birth spacing 
programme 
Workshop/study:  future 
demographic trends, 
countries of  N.  Africa 
Preventive health 
programme and 
assistance for  women, 
Tendrara 
Evaluation of budget 
heading  B7-5050 
Evaluation of IPPF Arab 
Region  Programme 
European  Parliament 
Forum 

Palestine 

Palestine 

Palestine 

Turkey 

Turkey 

Yemen 

Jordan 

N  Africa 

Morocco 

General 

General 

General 

34 

BALANCE OF THE SEM FINANCIAL PROTOCOLS(2) 

P1 

P2 

P3 

P4 

S.A. 

BALANCE 

MOROCCO 
ALGERIA (1) 
TUNISIA 
EOYPT 
LEPANON 
JORDAN 
SYRIA 
STRUCT. ADJ. 

0 
7 
0 
0 
0 
0 
0 

1 
12 
0 
3 
0 
0 
0 

1 
0 
2 
1 
0 
0 
4 

28 
24 
8 
16 
5 
3 
29 

TOTAL 

7 

16 

8 

113 

40 

40 

BREAKDOWN OF BALANCE 
I.S. (3)  R.C. (4) 
'  5 
I8 

PROJECT 
25 
25 
10 
7 
5 
1 

40 

30 
43 
10 
20 
5 
3 
33 
40 

9 

2 
29 

4 

4 

184 

113 

40 

31 

(1) Breakdown of balance (subject to modification) (see special loans first and second protocols) 
(2) Balance of SEM commitments including structural adjustment 
(3) Interest rate subsidy 
(4) Risk capital 

LA) 

FINANCIAL IMPLEMENTATION OF FOURTH SEM PROTOCOLS 

| 

1.  BILATERAL COMPONENT 

(1991-1996) 

| 
BUDGET: 31/12/95 
EIB :31/12/95 

TOTAL 

BUDGET 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

TOTAL 

EIB 
Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

TOTAL 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

TOTAL PROTOCOL 

MOROCO 
ALGERIA 
TUNISIA 
MAGHREf 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASMREC 
ISRAEL 
TOTAL 

218 
70 
116 
404 
258 
24 
46 
43 
371 

775 

190 
47 
108 
345 
242 
19 
43 
18 
322 

0,87156 
0,671429 
0,931034 
0,85396 
0,937984 
0,791667 
0,934783 
0,418805 
0,867925 

50 
16 
48 
114 
8 
4 
18 
0 
30 

0,263158 
0,340426 
0,444444 
0,330435 
0,033058 
0,210526 
0,418605 

0,093168 
i 

667 

0,860645 

144 

0,215892 

220 
280 
168 
668 
310 
45 
80 
115 
550 
82 
1300 

220 
180 
168 
568 
242 
29 
71 
0 
342 
82 
992 

1 
0,642857 
1 
0,850299 
0,780645 
0,644444 
0,8875 
0 
0,621818 
1 
0,763077 

41 
24 
49 
114 
42 

0,186364 
0,133333 
0,291667 
0,200704 
0,173554 

15 

0,211268 

57 
30 
201 

0,166667 
0,365854 
0,202621 

438 
350 
264 
1072 
568 
69 
126 
158 
921 
82 
2075 

410 
227 
276 
913 
484 
48 
114 
18 
664 
82 
1659 

0,936073 
0,648571 
0,971831 
0,851679 
0,852113 
0,695652 
0,904762 
0,113924 
0,720955 
1 
0,799518 

91 
40 
97 
228 
50 
4 
33 
0 
87 
30 
345 

0,221951 
0,176211 
0,351449 
0,249726 
0,103306 
0,083333 
0,289474 

0,131024 
0,365854 
0,207957 

2nd COMPONENT. STRUCTURAL ADJUSTMENT 

I 
BUDGET : 31/12/95 

' 

TOTAL 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

1.1. Risk capital (incl. in bilateral component 

| 
BUDGET: 31/12/95 
EIB  31/12 

TOTAL 

' 

I 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

MOROCC 
ALGERIA 
TUNISIA 
MAGHREE 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASHREC 

25 
18 
15 
58 
16 
2 
2 
2 
22 

20 
0 
15 
35 
12 
2 
2 

16 

0,8 
0 
1 
0,603448 
0,75 
1 
1 
0 
0,727273 

5 
0 
3 
8 

1 

1 

0,25 

0,2 
0,228571 
0 

0,5 

0,0625 

MOROCCO 
ALGERIA 
TUNISIA 
MAGHREB 
l 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASHREQ 

TOTAL 

80 

51 

0,6375 

9 

0,176471 

TOTAL 

1 ) Commitments 

2) Payments / Commitments 

-

60 
95 
60 
215 
0 

85 

85 

300 

60 
55 
60 
175 

1 
0,578947 
1 
0,813953 

60 
20 
40 
120 

1 
0,363636 
0,666667 
0,685714 

85 

85 

1 

1 

65 

0,764706 

65 

0,764706 

260 

0,866667 
0,711538 
Sources: F01,Pics, Olas and EIB 

185 

(ECU million) 

FINANCIAL IMPLEMENTATION OF THE FIRST THREE SEM  PROTOCOLS 

I 
(1978-1991) 

BUDGEV- 31/12/95 
EIB 

TOTAL 

BUDGET 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

TOTAL 

EIB 
Commitments 
%1) 

Amount 

* 

TOTAL  PROTOCOL 

Payments 

Amount 

%2) 

TOTAL 

Commitments 
%1) 

Amount 

Payments 

Amount 

%2) 

PROTOCOL 1/1978-1981 
MOROCCC 
ALGERIA 
TUNISIA 
MAGHREB 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASHREQ 
ISRAEL 
TOTAL 

74 
44 
54 
172 
77 
10 
22 
26 
135 

X7 

PROTOCOL 2/1961-1966 
MORROCC 
ALGERIA 
TUNISIA 
MAGHREB 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASHREQ 
ISRAEL 
TOTAL 

109 
44 
61 
214 
126 
16 
26 
33 
201 

415 

74 
37 
54 
165 
77 
10 
22 
26 
135 

1 
0,840909 
1 
0,959302 
1 
1 
1 
1 
1 

74 
32 
53,55 
159,55 
72 
7 
22 
26 
127 

1 
0,864865 
0,991667 
0,96697 
0,935065 
0,7 
1 
1 
0,940741 

300 

0,977199 

286,55 

0,955167 

106 
32 
61 
201 
123 
16 
26 
33 
166 

0,990826 
0,727273 
1 
0,939252 
0,97619 
1 
1 
1 
0,965075 

100 
18 
61 
179 
112 
8 
23 
24 
167 

0,925926 
0,5625 
1 
0,890547 
0,910569 
0,5 
0.884615 
0,727273 
0,843434 

399 

0,961446 

346 

.0,867168 

PROTOCOL 3/1986-1991+A25 
MOROCCC 
ALGERIA 
TUNISIA 
MASHREQ 
EGYPT 
LEBANON 
JORDAN 
SYRIA 
MASHREQ 
ISRAEL 
TOTAL 

173 
56 
93 
322 
200 
20 
37 
36 
293 

172 
56 
"91 
319 
199 
20 
37 
32 
266 

607 

615 

0,99422 
1 
0,978495 
0,990683 
0,995 
1 
1 
0,888889 
0,962935 

136 
18 
77 
231 
126 
12 
28 
5 
171 

0,790698 
0,321429 
0,846154 
0,724138 
0,633166 
0,6 
0,756757 
0,15625 
0,59375 

0,966992 

402 

0,662273 

56 
70 
41 
167 
93 
20 
18 
34 
165 
30 
362 

90 
107 
78 
275 
150 
34 
37 
64 
285 
40 
600 

151 
183 
131 
465 
249 
53 
63 
110 
475 
63 
1003 

56 
70 
41 
167 
93 
20 
18 
34 
165 
X 
362 

90 
107 
78 
275 
150 
34 
37 
64 
285 
40 
600 

1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 

1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 

151 
142 
131 
424 
242 
53 
63 
0 
358 
63 
845 

1 
0,775956 
1 
0,911828 
0,971888 
1 
1 
0 
0,753684 
1 
0,842473 

56 
70 
41 
167 
93 
20 
18 
34 
165 
30 
362 

90 
89 
76 
255 
150 
29 
'  37 
52 
268 
40 
563 

1 
0,831776 
0,974359 
0,927273 
1 
0,852941 
1 
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0,940351 
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0,602649 
0,492958 
0,816794 
0,632075 
0,772727 
0,509434 
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0,773743 
0,904762 
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130 
114 
95 
339 
170 
30 
40 
60 
300 
30 
669 

199 
151 
139 
489 
276 
50 
63 
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1015 

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239 
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100 
146 
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165 
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648,55 

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323 
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0,828452 
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0,841146 
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107 
137 
434 
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0,985612 
0,911765 
0,959707 
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0,783505 
0,900621 
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0,90991 

227 
88 
184 
499 
313 
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91 

0,702786 
0,444444 
0,828829 
0,671602 
0,709751 
0,534247 
0,91 

443 
57 
%ft£? 

0,685759 
0,904762 
0,688017 

ISSN 0254-1475 

COM(97) 371 final 

DOCUMENTS 

EN 

11  10  17 

Catalogue  number  :  CB-CO-97-364-EN-C 

ISBN  92-78-22752-8 

Office  for  Official  Publications  of the European  Communities 

L-2985  Luxembourg 

3?