Report from the Commission on developments in relations with Turkey since the entry into force of the customs union
Date: 1998-03-04
Institutions: European Commission
Subjects: EU relations, Türkiye, customs union, economic situation, political situation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 04.03.1998 
COM(1998) 147  final 

REPORT FROM THE COMMISSION 

ON  DEVELOPMENTS  IN  RELATIONS  WITH  TURKEY  SINCE  THE 

ENTRY INTO FORCE OF THE CUSTOMS UNION 

REPORT  ON  DEVELOPMENTS  IN  RELATIONS  WITH  TURKEY  SINCE  THE 
ENTRY INTO FORCE OF THE CUSTOMS UNION 

Introduction 

This  report  was  prepared  in  response  to  an  undertaking  given  by  the  Commission  in 
Autumn  1995  in the course of  the debate  in  Parliament  on  the assent  to the  EC-Turkey 
customs  union,  being  "an  annual  report  on  the  implementation  of  the  customs  union, 
economic  and  political  aspects,  including the democratic  reform  process  and  the human 
rights situation in Turkey." 

I. Functioning of the customs union 

The opinion  expressed  by the Commission  in the previous report still  applies, two years 
after  the customs union came into  force:  it continues to work satisfactorily  in accordance 
with  Decisions  1/95 and 2/95 of the Association Council which underlie its final phase. 

Since October  1996 Turkey has continued harmonising its laws with Community laws. It 
set  up a competition  authority on 6 March  1997 empowered  to enforce  from  now on the 
provisions  of  Decision  1/95  in  the  competition  field.  Regarding  trade  policy,  Turkey  is 
obliged  to come into line with the EC's preferential  arrangements before the end of 2000 
and  has  already  made  substantial  progress.  Free  trade  agreements  were  signed  in  1997 
with  Hungary,  Romania,  Lithuania,  Estonia  and  the  Czech  Republic.  Agreements  with 
Latvia  and  the  Slovak  Republic  have  been  initialled  and  negotiations  are  in  hand  with 
Poland, Slovenia and Bulgaria. 

As  the  Commission  pointed  out  in  the  previous  report,  most  of  the  problems  with  the 
functioning  of the customs union arose from  differences  in tariff  arrangements under the 
respective preferential  policies  of  Turkey  and  the  Community.  Complete  harmonisation 
(preferential  agreements  with  all  central  and  eastern  European  countries,  the  Maghreb 
and Mashreq countries and generalised  scheme of preference  countries) should  therefore 
largely see these problems settled. 

Furthermore, in accordance with the undertakings given on 6 March  1995, an agreement 
reciprocally  improving  the  market  access  of  each  party  for  agricultural  products  was 
initialled  in April  1997. The agreement should  enter into force once adoption procedures 
are complete, i.e. in the early months of 1998. 

With  regard  to  the  functioning  of  the  customs  union,  the  Association  Council  met  on 
29 April  1997  and  approved  the  recommendations  of  the  Association  Committee 
regarding  a number  of trade matters under discussion  (agriculture,  competition, motors, 
rules  of  origin,  and  customs  agreements).  In  all  these  fields  the  parties  have  reached 
agreement on the steps required for consolidating the customs union. 

The Joint  Customs Union  Committee has met  several times  and recommended  mutually 
satisfactory  solutions to specific problems. 

Turkey  is  to  continue  its  efforts  to  complete  the  aligning  of  its  laws  with  Community 
laws. Harmonisation  is complete in the field of customs (incorporation  of the Community 
Customs Code), competition  (alignment with the Community  arrangements  for State aids 
and the brcaking-up of monopolies), protection  of intellectual  property  (in particular, the 
adoption  of  a  law  on  patents  for  pharmaceutical  products  before  the  end  of  1998)  and 
technical  standards  and 
incorporation  of  the  acquis 
communautaire before the end of 2000). 

laws  (total  adoption  and 

In  its  communication  to  Council  and  Parliament  of  15  July  1997  on  the  future 
development  of  relations  with  Turkey,  the  Commission  made  a  number  of  proposals 
intended  in particular  to  support  the completion  of the harmonisation  of laws  under  the 
customs  union  and to extend  it to services and agriculture. In its communication  sent to 
Council  and Parliament  in March  1998 the Commission presented a working programme 
for implementing a European strategy for Turkey. 

As regards the economic  impact of the customs union, it is apparent  from  the  1996 data 
that since the customs union came into force there has been a big increase in the volume 
of trade. Community  exports  to Turkey  went  from  ECU  13 billion  to  18 billion  (a 36% 
increase) and  imports into the Community  from  Turkey  from  ECU 9 billion  to  10 billion 
(a  10%  increase).  The  trade  balance  in  the  Community's  favour  increased  from 
ECU 4 billion  to  8 billion.  The  net  increase  in Turkish  imports  from  the Community  in 
1996 was in response to a rising need  for capital goods to sustain the long-term growth of 
the  Turkish  economy.  The  data  available  on  imports  of  consumer  goods  from  the 
Community  do  not  show  any  major  increase.  Also  noteworthy  is the  fact  that  the entry 
into  force  of  the  customs  union  came  at  a  time  when  the  economic  cycles  in  Turkey 
(enjoying  strong growth) and the European economy (suffering  a slowdown) were out of 
phase, which  partly explains the  less  satisfactory  performance  of Turkish  exports to  the 
Community. Statistics for the first eight months of 1997, however, would seem to show a 
slight  recovery  by  Turkish  exports  to  the  Community,  though  Turkey's  trade  deficit 
should  be  the  same  in  1997  as  1996.  In  terms  of  the  impact  of  the  customs  union  on 
Turkish business, it seems to have adapted relatively well to Community competition on 
the Turkish market. 

II. Other aspects of the implementation  of the agreement of 6 March  1995 

Financial co-operation: 

The financial  co-operation  undertakings  made by the Council on 6 March  1995 covered 
the  provision  of  support  to  Turkey  under  five  different  instrument  headings.  The 
Commission would  like to see all these instruments made operational. 

The special  budgetary  assistance  in connection  with  the customs union  intended  to help 
Turkey  make  the  necessary  industrial  adjustments  is  yet  to  be  adopted  by  the  Council 
owing  to  a  lack  of  unanimity.  The  EIB  has  been  unable  to  act  on  the  call  from  the 
Council to lend Turkey up to ECU 750 million. 

The  Community  has  also  pledged  macro-economic  assistance  to  Turkey,  subject  to 
certain  conditions. Until  now, those conditions (e.g. balance of payments difficulties  and 
an International  Monetary Fund programme) have not been met. 

The  M EDA  Regulation  was  adopted  by  the  Council 
in  July  1996.  A  sum  of 
ECU  33  million  was  pledged  to  Turkey  in  1996  in  order  to  finance  five  co-operation 
programmes  for  small  businesses,  training,  education  and  health.  Under  the  1997  MEDA 
programme,  the  Commission  pledged  ECU  70.2  million.  The  35  selected  projects  will 
seek  to  improve  the  situation  of  civil  society  and  human  rights  in  Turkey,  promote  the 
living  conditions  for  the  most 
small  businesses  sector  and  bring  about 
disadvantaged  sections of the  population. 

improved 

As  a  result  of  the  European  Parliament's  resolution  in  September  1996,  implementation 
of the  MEDA  programme  in  Turkey  failed  to  achieve  the  financial  objective  initially  set 
for  budgetary  year  1997.  Moreover,  it  has  unfortunately  been  impossible  to  finance  an 
agricultural  training  project  to  benefit  the  poorest  population  groups  in  south-eastern 
Turkey. 

The  Council's  undertakings  also  included  giving  Turkey  access  to  EIB  loans  under  the 
New  Mediterranean  Policy  (1992-1996)  to  fund  certain  infrastructure  projects.  Turkey 
received  ECU  340 million  through  those channels. 

Developing  co-operation: 

Owing  to  the  financial  co-operation  situation  as  described  above,  it  has  not  proved 
possible  to  implement  the Association  Council  resolution  of 6  March  1995 on  developing 
co-operation. 

On  13 May  1996, the Commission  sent to the Council  and  Parliament  three proposals  for 
decisions  amending  the basic decisions concerning  the Socrates, Youth  for  Europe III and 
Leonardo  programmes  in  order  to  make  Turkey  eligible  under  these  programmes.  These 
proposals  are currently before  Parliament. 

In  its  communication  of  15  July  1997  on  the  future  of  relations  with  Turkey  and  in  its 
communication  of  February  1998  establishing  a  European  strategy  in  respect  of  Turkey, 
the  Commission  indicated  that  the  majority  of proposals  contained  therein  to  consolidate 
the customs  union  and  develop  Europe-Turkey  relations  beyond  the customs  union  could 
not  be  implemented  without  funding  from  the Community  budget, during  the  initial  stage 
at  least. 

In  this  context,  the  Commission  considers  that  the  special  financial  regulation  for  the 
customs  union  should  be  adopted  urgently  so  that  Turkey  can  make  the  necessary 
industrial  adjustments  in the  light of the new competitive  situation  created  by the  customs 
union,  set  about  improving  links  between  its own  infrastructure  and  that  of the  European 
Union,  and narrow  the gap between the Turkish  economy  and that of the EU. 

The  communications  also  note  the  possibility  of  mobilisation  of  the  MEDA  instrument 
for  financial  co-operation  with Turkey  and  express  the hope that  the necessary  conditions 
will be established  to enable  full  utilisation of this  instrument. 

Political  dialogue: 

In  the  period  since  the  previous  report,  contacts  between  the  EU  and  Turkey  have  been 
developed  at various  levels. The then  Prime  Minister,  Ms Ciller, was  invited  to  attend  the 
European  Council  in  Dublin  in  December  1996, and  the  subsequent  European  Council  in 
Amsterdam  in June  1997, on  this occasion  in her capacity  as  Foreign  Minister.  A  meeting 
of  the  Joint  Parliamentary  Committee  was  held  in  Ankara  in  April  1997.  Two  meetings 
of political  directors  were  also  held  at troika  level. Turkey  continued  to play  a major  role 
in  the  Barcelona  Euro-Mediterranean  process,  with  numerous  multilateral  meetings  held 
at ministerial  and government  level. 

The  EC-Turkey  Association  Council  met  on  29  April  1997  and  took  stock  of  several 
issues. 

However,  ministerial  meetings  between  European  and  Turkish  heads  of  various  sectors 
involved  in  the  functioning  of  the  customs  union  (trade,  internal  market,  transport,  etc.), 
as  laid  down  by the  Association  Council's  resolutions  of  1995, have  not yet  taken  place. 

Following  the  Luxembourg  European  Council  meeting  held  in  December  1997,  the 
Turkish  authorities  decided  to suspend  political  dialogue with  the European  Union. 

III. Economic  situation  in  Turkey 

As  emerged  from  the  previous  Commission  report,  the  Turkish  economy  is  undeniably 
buoyant.  GNP  growth  for  1997  should  remain  high  at  6%  (compared  with  7%  in  1996), 
being  sustained  by  high  domestic  demand,  private  investment  and  export-oriented 
business.  The  private  sector,  especially,  has  been  able  to  take  advantage  of  the  new 
opportunities  on  offer  in the countries  around  the Black  Sea.  It has  also proved  itself  able 
to adapt  to the  increasingly  tough  competition  in the customs  union. 

Although  Turkey's  foreign  trade  balance  is  still  in  the  red,  1997  should  see  the  country 
hold  its  current  account  deficit  at  levels  similar  to  1996  thanks  to  high  tourism  earnings 
and  large  transfers  from  Turks  working  abroad.  Foreign  currency  reserves  too  remain 
healthy  at around  USD  19 billion  in December  1997. 

The main  worry  is that Turkey  is still  finding  it hard to break  out of the spiral  of  inflation, 
public  deficit  and  currency  depreciation.  In  1997, consumer  price  inflation  hit  99%.  The 
public  deficit  should  be  around  10%  of  GNP,  mainly  because  of  the  excessive  share  of 
the  national  budget  taken  up  by  public  debt.  The  result  is  that  the  currency  continued  to 
fall  over the year (down  60% against the ECU). 

Turkey  has  not  yet  managed  to  develop  a  credible  economic  strategy  to  control  public 
finances,  stem  inflation  and  stabilise  the  lira  while  still  ensuring  sustainable  economic 
growth.  Moreover,  medium-term  stabilisation  would  require  a  set  of  structural  reforms 
(reform  of  welfare  and  taxation,  restructuring  of  state-owned  concerns  and  privatisation) 
that  successive  governments  have  failed  to  implement.  That  said,  in  its  budget  for  1998, 
the  current  ruling  coalition  has  set  economic  policy  targets  for  inflation  and  public 
expenditure,  which  must  be encouraged.  In addition,  talks with  the  IMF are  continuing. 

Macrocconomic  stabilisation  is  also  vital  for  Turkey's  performance  within  the  customs 
union.  Although  its  economy  is  adapting  to  competition  from  EU  industries,  it  would 
benefit  even  more  if  its  macrocconomic  stability  could  be  sustained  and  if the  necessary 
structural  reforms  were  seen  through.  As  a  result  of  the  customs  union,  Turkey  has  a 
chance  to modernise  its economy  and  to align  the way  its market  works  with  Community 
rules.  However, this  would  require  major  foreign  investment,  which  has  sadly  fallen  well 
below  expected  levels since the  union  came  into  being. 

IV. The  political  situation 

1. Domestic  politics 

The  coalition  Government  of the  Refah  (Welfare)  Party  of  Mr  Erbakan  (Prime  Minister) 
and  the  DYP  (True  Path  Party)  of  Ms  Ciller  (Deputy  Prime  Minister  and  Foreign 
Minister),  which  came  to  power  in  June  1996,  lasted  one  year.  On  June  13  1997,  after 
several  weeks  of  crisis,  this  coalition  was  succeeded  in  government  by  a  minority 
coalition  of the  ANAP  (Motherland  Party), the  DSP (Democratic  Left  Party) and  the  DTP 
(Democratic  Turkey  Party).  Mr  Yilmax,  leader  of  the  ANAP,  became  the  new  Prime 
Minister.  Since  the  coalition  docs  not  have  a  majority  in  Parliament,  it  relies  on  the 
support  of the CHP  (Republican  People's  Party), led by  Mr  Baykal. 

The  present  Government's  main  piece  of  legislation  to  date  extended  compulsory 
schooling  from  five  to eight  years.  Islamic groups  hotly  opposed  the draft  law, which  was 
the subject  of  intense  debate  in  Parliament.  It was  finally  adopted  on  15 August  1997 and 
led  to several  Islamic  high  schools closing down  because of a lack  of pupils. 

On  16  January  1998  the  Turkish  Constitutional  Court  dissolved  the  Refah  (Welfare) 
Party,  confiscated  all  its  property  and  banned  its  principal  leaders  from  belonging  to  any 
political  grouping  for  the  next  five  years.  On  21  January  1998 the  UK  Presidency  issued 
a  statement  on  this  event  on  behalf  of  the  EU,  with  the  Commission's  full  endorsement. 
While  recognising 
in  accordance  with  Turkey's 
Constitution,  the  Commission  regrets  it  and  is  concerned  about  its  implications  for 
democratic  pluralism  and  freedom  of  expression.  The  Commission  hopes  that  Turkey 
will  demonstrate  its continuing  adherence to these basic principles  of  democracy. 

the  Court's  decision  was 

that 

2. The  Aegean  question 

The  situation  in  the  Aegean  is  still  very  tense.  The  efforts  of  the  Irish  Presidency  to 
reconcile  the  positions  of  the  two  sides  were  continued  by  the  Netherlands  Presidency  in 
the  first  half  of  1997. The  General  Affairs  Council  of  15 July  1996,  which  approved  the 
M EDA  Regulation,  adopted  a  statement  declaring  that  certain  principles  (i.e.,  good 
neighbourly  relations  and  respect  for  international  law)  were  essential  to  EU-Turkish 
relations.  Turkey  responded  to  the  positions  set  out  in  this  statement  in  a  letter  of  21 
February  1997  from  Ms  Ciller,  the  Deputy  Prime  Minister  to  Mr  van  Mierlo,  the 
Netherlands  Foreign  Minister.  The  Turkish  reply  did  not,  however,  solve  the  problems. 
This  persisting  conflict  of  views  has  continued  to  mar  Turkey's  relations  not  only  with 
Greece, but  also with the EU. 

At  the  meeting  of  the  EU-Turkey  Association  Council  on  29  April  1997,  Turkey  and 
Greece  agreed  to  appoint  a  "Committee  of  Wise  Men"  to  study  the  Aegean  issues. 

However,  since  the  two  sides  have  nol  been  able  lo agree  on  the  rules  and  procedures  of 
this Committee,  it has  nol  yel  met. 

On  the  fringes  of  the  NATO  summit  in  Madrid  in  July  1997,  Greece  and  Turkey  agreed 
on  a  joinl  statement  in  which  they  declared  their  commitment  to  maintaining  good 
neighbourly  relations  and  trying  in  good  faith  and  through  peaceful  means  to  resolve 
their differences  (e.g. over  the Aegean  issues). 

As it has  stated  in Agenda 2000, the Commission  supports these  aspirations  and  endorses 
the  view  of  the  EU-Turkey  Association  Council  of  29  April  1997  that  solutions  to  the 
tensions  in  the  Aegean  can  only  be  found  through  respect  for  international  law,  and  in 
particular  through  recourse to the  International  Court of Justice. The  European  Council  of 
Luxembourg,  held  on  12 and  13 December  1997, upheld  this  principle. 

3.  Cyprus 

In  Agenda  2000  the  Commission  confirmed  that  talks  on  the  accession  of  Cyprus  would 
start  six  months  after  the  conclusion  of  the  KiC,  in  accordance  with  the  timetable 
envisaged  by  the  Council  since  March  1995.  The  Commission  feels  that  the  accession 
negotiations  would  be  easier  if  adequate  progress  were  made  through  the  contacts 
between  the  two  sides  initialed  under  the  aegis  of  the  UN.  In  a  statement  of  22  August 
1997  the  Commission  expressed  its  regret  that  the  talks  held  that  month  at  Glion  under 
UN  auspices  had  made  no  progress.  The  Commission  attaches  great  importance  to  the 
resumption  of these negotiations. 

The  Commission  hopes  that  ways  can  be  found  to  involve  the  Turkish  Cypriot 
community  in  the  accession  process.  The  Luxembourg  Council  called  for  the  Cypriot 
Government  to act  upon  its commitment  to include representatives  of the Turkish  Cypriot 
community  in  the  delegation  to  the  accession  negotiations.  It  called  on  the  Presidency 
and  the Commission  lo  initiate discussions  to this end. A number  of approaches  are  being 
made. 

V. Human  rights 

An  assessment  of the period  that  has  elapsed  since the previous  report  makes  it clear  that 
no  substantial  progress  has  been  achieved  as  regards  human  rights  and  the  democratic 
reform  process  in  Turkey.  The programme  of  Mr  Yilmaz's  government  emphasises  the 
need  to  improve  the  human  rights  situation  in  the  country.  Setting  this  goal  has  not  yet 
resulted  in  any  appreciable  improvement  in  the  situation.  The  constitutional  reform 
undertaken  in  1995  is  only  partly  reflected  in  Turkey's  legislation  although  an  ad  hoc 
Parliamentary  Committee was entrusted  with the task of preparing  it. The only  significant 
step  forward  in  this  area  on  the part  of the  Turkish  Parliament  has  been  the  enactment  of 
the  law governing  police custody  in March  1997. 

Official  recognition  by  the Turkish  leadership  at  the  highest  level  of  the  shortcomings  in 
Turkish  democracy  and  acknowledgement  of  the  need  to  put  right  and/or  eliminate 
practices  incompatible  with  democratic  principles  are  positive  developments.  In  his 
address  at  the  opening  of  the  parliamentary  session,  President  Demircl  referred  to  the 
need  for  Turkey  lo  comply  with  the  Copenhagen  criteria.  The  minister  responsible  for 
human  rights,  Mr  Ilikmet  Sami  Turk,  recently  acknowledged  there  were  existence  of 
human  rights  violations  in  the  country.  Foreign  Minister  Cem  has  condemned  human 

rights  violations  and  the  imprisonment  of  prisoners  of  conscience  in  Turkey  in  a 
newspaper  article. 

The  High  Co-ordinating  Committee  on  Human  Rights (chaired  by  Mr  Hikmet  Sami  Tiirk 
and  made  up  of  representatives  of  the  PM  and  the  ministries  of  foreign  affairs,  the 
interior,  justice,  national  education  and  health),  set  up  by  the  previous  government  in 
April  1997,  is  still  operational.  Its  role  is  to  co-ordinate  and  monitor  implementation  of 
(he  measures  aimed  al  improving  the  human  rights  situation;  it  may  also  submit 
proposals  to  that  c\u\  to  the  government.  Representatives  of  Turkish  NGOs  are  regularly 
invited  to attend  meetings  of the  High  Committee.  It  is still  too early  to assess  the  impact 
of the activities  of the  High  Committee  on  the democratic  reform  process. 

Shortly  after  the  new  government  took  office,  Parliament  passed  a  law  on  13  August 
1997  granting  an  amnesty;  this  allowed  the  release  of  seven  newspaper  editors  who  had 
been  convicted  of  "separatist  propaganda  and  promoting  terrorism".  The  law  suspended 
their  sentences  on condition  that they do not re-offend  during the next three years. 

Article  8 of  the  anti-terrorist  law, which  was  rendered  less  stringent  in  1995, is  still  used 
as  a  basis  for  prosecuting  journalists,  publishers  or  persons  who  have  issued  public 
statements  expressing  dissenting  views.  As  in  the  previous  report,  it  can  be  seen  that 
Articles  of  the  Penal  Code  (Arts.  312  and  315)  are  still  used  as  a  basis  for  prosecutions 
that  are  identical  to those  formerly  based  on Article  8. 

In  November  1996 the Turkish  authorities  set  up a missing  persons  search  unit  within  the 
Ministry  of the  Interior.  There is, as yet,  no evidence of  its  effectiveness. 

On  6  March  1997,  under  the  previous  government,  the  Turkish  Parliament  passed  a  law 
legislative 
reducing  the  duration  of  police  custody.  This  is  the  most  significant 
development  in  the  field  of  human  rights  since  the  previous  report  was  published.  The 
most  important  provisions  of the law  concern  the  rights of persons  held  in  police  custody 
for  crimes  committed  jointly  (i.e.  by  three  or  more  persons)  which  fall  within  the 
jurisdiction  of the  State  Security  Tribunals  (all  crimes  against  the  State,  including  crimes 
connected  with  terrorism).  Such  persons  must  be  brought  before  the  court  within  four 
days  of  their  arrest  (instead  of  fifteen  previously)  with  the  possibility  of  an  extension  up 
to  seven  days.  In  the  provinces  in  which  a state  of  emergency  has  been  declared  (six  out 
of a total  of eighty), the period  was reduced  from  thirty to a maximum  often  days. 

Although  the  new  periods  of police  custody  stipulated  by  this  law  are  still  longer  than  is 
general  in  the  European  Union,  Turkey  has  thus  moved  closer  to  European  standards  in 
this  area.  The  Council  of  Europe's  European  Committee  on  the  prevention  of  torture  has 
described  the content  of this  law as an "important  step  in the right  direction". 

The  way  in  which  the  new  provisions  of  this  law  are  applied  in  practice  will  have  to  be 
monitored.  In  this  connection,  it  is  important  to  note  that  persons  held  under  procedures 
dealt  with  by  the  Security  Tribunals  are  also  afforded  access  to  a  lawyer.  However,  a 
person  held  in  police  custody  under  such  a procedure  is  not  allowed  access  to  a  lawyer 
from  the start  of his detention  but only  from  the time at which  the court decides  to  extend 
his detention,  i.e. after  four  days of police  custody. 

As the Commission  indicated  in Agenda 2000, in combating  terrorism  in the south  cast, 
Turkey  needs to exercise  restraint, to make greater efforts  to  uphold  the rule of  law and 
human  rights and  to find a civil  and  not  a military  solution.  On  a number  of occasions, 
Mr Yilma/'s government  stated  that  it intended  to terminate the state of emergency  in the 
south-eastern  provinces.  On  6 October  1997  the  state  of  emergency  was  lifted  in  three 
provinces  (Batman,  Bingol  and  Hitlis)  out  of  nine.  The  state  of  emergency  in  the 
remaining six provinces was extended  for  four-months. 

Mr  Yilmaz's  coalition  government  has,  moreover,  stated  that  it  intends  to  support  the 
social  and  economic  development  of that region.  Measures have been  announced  which 
should, inter alia, encourage private investment,  improve education  and thus promote an 
increase  in  agricultural  and  manufacturing  output.  The  government  is  also  said  to  be 
preparing  a  law  concerning  decentralisation,  which  would  maintain  central  government 
control only of justice, security, national defence and  foreign  policy. It will be possible to 
assess  the  real  impact  of  the  relevant  legislative  provisions  only  when  they  have  been 
drafted. 

During the period  that  has elapsed  since the last  report, the Commission  has stepped  up 
significantly  its  financial  support  to  Turkish  NGOs  working  to  promote  and  protect 
human rights in Turkey. More than  ECU 3 million has been committed  to finance around 
thirty  projects.  These  were  selected  from  the  following  priority  topics:  the  status  of 
women,  children's  rights  and  their  protection,  information,  education  and  training, 
improving  the  management  skills  of  the  NGOs  and  rehabilitating  victims  of  torture.  In 
this connection, the Commission  has, inter alia, made grants to the Umut Foundation, the 
Society  for Prevention  of Child  Abuse and Neglect, the Turkish  Democracy  Foundation, 
the  World  Academy  for  local  government  and  democracy,  the  Antalya  Bar  Association 
and Helsinki Citizens' Assembly (Turkey branch). 

CONCLUSION 

The Commission  described  Turkey's  economic  and  political  situation  in  Agenda  2000, 
adopted  on  15 July  1997. The conclusion  drawn  from  the assessment  in Agenda 2000 is 
that the European  Union  must continue to support the country in its efforts  to resolve its 
problems  and  establish  closer  ties with  the  Union. The  Association  Agreement  and  the 
customs  union  provide  the  foundations  for  building  an  increasingly  close  political  and 
economic  relationship  which  should  evolve  in parallel  with  the démocratisation  process 
inside Turkey,  progress  towards  lasting  good-neighbourly  relations  towards  Greece  and 
the achievement of a just and lasting settlement  in Cyprus. 

While recognising that the political and economic conditions that would make it possible 
to  envisage  accession  negotiations  with  Turkey  are not  satisfied,  the  European  Council 
took the view that it is important to determine a strategy to prepare Turkey  for  accession 
by  bringing  it  more  closely  into  line  with  the  European  Union  in  all  areas.  The 
Commission  has  been  asked  by  the  European  Council  to  submit  proposals  to  that  end. 
The  Commission  accordingly  put  forward  a  communication  in  March  1998  aimed  at 
implementing a European strategy  for Turkey. 

ISSN 0254-1475 

COM(98) 147 final 

DOCUMENTS 

EN 

11  02  06 

Catalogue  number  :  CB-CO-98-150-EN-C 

ISBN  92-78-31942-2 

Office  lor Official  Publications  of  the  European  Communities 

L-2985  Luxembourg