98/259/EC: Council Decision of 30 March 1998 on the principles, priorities, intermediate objectives and conditions contained in the accession partnership with the Republic of Hungary
Date: 1998-03-30
Institutions: Council of the European Union
Subjects: EU programme, Hungary, accession to the European Union, cooperation policy

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II

(Acts  whose  publication  is  not  obligatory)

COUNCIL

COUNCIL  DECISION

of  30  March  1998

on  the  principles,  priorities,  intermediate  objectives  and  conditions  contained  in  the  accession
partnership  with  the  Republic  of  Hungary

(98/259/EC)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,

Having regard to Council Regulation (EC) No 622/98 of
16  March  1998  on  assistance  to  the  applicant  countries
in  the  framework  of  the  pre-accession  strategy,  and
in  particular  on 
the  establishment  of  accession
partnerships (1),  and  in  particular  to  Article  2  thereof,

Having  regard  to  the  proposal  from  the  Commission,

Whereas  the  Luxembourg  European  Council  stated  that
the  accession  partnership  is  a  new  instrument,  the  key
feature  of  the  enhanced  pre-accession  strategy;

Whereas  Regulation  (EC)  No  622/98  sets  out  that  the
Council  shall  decide,  by  a  qualified  majority  and
following  a  proposal  from  the  Commission,  on  the
principles,  priorities, 
and
conditions 
individual  accession
contained 
partnerships,  as  they  are  submitted  to  each  applicant
country, as well as on subsequent significant adjustments
applicable  to  them;

intermediate  objectives 
in 

the 

Agreements  and  on  progress  towards  fulfilment  of  the
Copenhagen criteria; whereas, where an essential element
is  lacking,  the  Council,  acting  by  a  qualified  majority  on
a  proposal  from  the  Commission,  may  take  appropriate
steps  with  regard  to  any  pre-accession  assistance;

Whereas the Luxembourg European Council decided that
the  implementation  of  the  accession  partnership  and
progress  in  adopting  the  acquis  will  be  examined  in  the
Europe  Agreement  bodies;

Whereas 
the  Commission’s  opinion  presented  an
the  Republic  of  Hungary’s
objective  analysis  on 
preparations  for  membership  and  identified  a  number  of
priority  areas  for  further  work;

Whereas,  in  order  to  prepare  for  membership,  the
Republic  of  Hungary  should  draw  up  a  national
programme  for  the  adoption  of  the  acquis;  whereas  this
programme  should  set  out  a  timetable  for  achieving  the
priorities  and  intermediate  objectives  established  in  the
accession  partnership,

HAS  DECIDED  AS  FOLLOWS:

Whereas  Community  assistance  is  conditional  on  the
fulfilment  of  essential  elements,  and  in  particular  on  the
respect  of  the  commitments  contained  in  the  Europe

Article  1

(1)  OJ  L  85,  20.3.1998,  p.  1.

In  accordance  with  Article  2  of  Regulation  (EC)  No
622/98,  the  principles,  priorities,  intermediate  objectives

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and conditions contained in the accession partnership for
the Republic of Hungary are set out in the Annex hereto,
which  forms  an  integral  part  of  this  Decision.

Article  3

This  Decision  shall  enter  into  force  on  the  third  day
following  its  publication  in  the  Official  Journal  of  the
European  Communities.

Article  2

Done  at  Brussels,  30  March  1998.

The  implementation  of  the  accession  partnership  will  be
examined  in  the  Europe  Agreement  bodies  and  through
the appropriate Council bodies to which the Commission
will  report  regularly.

For  the  Council

The  President

M.  BECKETT

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ANNEX

HUNGARY

1.  Objectives

The  purpose  of  the  accession  partnership  is  to  set  out  in  a  single  framework  the  priority  areas  for  further
work  identified  in  the  Commission’s  opinion  on  Hungary’s  application  for  membership  of  the  European
Union,  the  financial  means  available  to  help  Hungary  implement  these  priorities  and  the  conditions  which
will  apply  to  that  assistance.  The  accession  partnership  will  provide  a  framework  for  a  number  of  policy
instruments which will be used to help the candidate countries in their preparations for membership. These
will  include,  inter alia,  the  national  programme  for  the  adoption  of  the  acquis  to  be  adopted  by  Hungary,
the joint assessment of economic policy priorities, the pact against organised crime and the internal market
road maps. Each of these instruments is different in nature and will be prepared and implemented according
to  specific  procedures.  They  will  not  be  an  integral  part  of  this  partnership  but  the  priorities  they  contain
will  be  compatible  with  it.

2.  Principles

The main priority areas identified for each candidate country relate to their ability to assume the obligations
of  meeting  the  Copenhagen  criteria  which  state  that  membership  requires:

—  that the candidate country has achieved stability of institutions guaranteeing democracy, the rule of law,

human  rights  and  respect  for  and  protection  of  minorities,

—  the existence of a functioning market economy, as well as the capacity to cope with competitive pressure

and  market  forces  within  the  Union,

—  the  ability  to  take  on  the  obligations  of  membership,  including  adherence  to  the  aims  of  political,

economic  and  monetary  union.

At its meeting in Madrid, the European Council stressed the need for the candidate countries to adjust their
administrative  structures  to  ensure  the  harmonious  operation  of  Community  policies  after  accession  and  at
Luxembourg,  it  stressed  that  incorporation  of  the  acquis  into  legislation  is  necessary,  but  not  in  itself
sufficient;  it  is  necessary  to  ensure  that  it  is  actually  applied.

3.  Priorities  and  intermediate  objectives

The  Commission’s  opinions  and  the  Council’s  examination  of  these  have  highlighted  the  extent  of  the
efforts which still have to be made in certain areas by the candidate countries to prepare for accession and
took the view that none of these countries fully satisfies all of the Copenhagen criteria at the present time.
This  situation  will  require  the  definition  of  intermediate  stages  in  terms  of  priorities,  each  to  be
accompanied by precise objectives to be set in collaboration with the countries concerned, the achievement
of which will condition the degree of assistance granted and the progress of the negotiations under way with
some  countries  and  the  opening  of  new  negotiations  with  the  others.  The  priorities  and  intermediate
objectives have been divided into two groups — short and medium term. Those listed under the short term
have  been  selected  on  the  basis  that  it  is  realistic  to  expect  that  Hungary  can  complete  or  take  them
substantially  forward  by  the  end  of  1998.  In  view  of  the  short  time  span,  and  taking  into  account  the
administrative  capacity  required  to  achieve  them,  the  number  of  priorities  selected  for  the  short  term  has
been  limited.  The  priorities  listed  under  the  medium  term  are  expected  to  take  more  than  one  year  to
complete  although  work  may  and  should  also  begin  on  them  during  1998.

Hungary  will  be  invited  to  draw  up  a  national  programme  for  the  adoption  of  the  acquis  (NPAA)  by  the
end  of  March  which  should  set  out  a  timetable  for  achieving  these  priorities  and  intermediate  objectives
and,  where  possible  and  relevant,  indicate  the  necessary  staff  and  financial  resources.

The accession partnership will indicate that Hungary will have to address all issues identified in the opinion.
Incorporation of the acquis into legislation is not in itself sufficient; it will also be necessary to ensure that it
is  actually  applied  to  the  same  standards  as  those  which  apply  within  the  Union.  In  all  of  the  areas  listed
below  there  is  a  need  for  credible  and  effective  implementation  and  enforcement  of  the  acquis.

Drawing on the analysis of the Commission’s opinion and the Council’s examination of this, the following
short-  and  medium-term  priorities  and  intermediate  objectives  have  been  identified  for  Hungary.

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3.1.  S h o r t - t e r m   ( 1 9 9 8 )

Economic  reform:  review  and  update  the  country’s  medium-term  economic  policy  priorities  within  the
framework of the Europe Agreement; advance structural reforms (particularly with regard to the health-care
system).

Reinforcement  of  institutional  and  administrative  capacity:  in  particular  in  the  areas  of  veterinary  and
phytosanitary  controls  (particularly  as  regards  facilities  at  the  external  borders)  environment,  customs
policy,  internal  financial  control  and  regional  development.

Internal  market:  including  certification  and  standardisation  (further  alignment  of  legislative  measures  and
conclusion  of  a  European  conformity  assessment  Agreement),  State  aid  (adoption  of  legislative  framework,
definition  of  role  and  powers  of  monitoring  authority,  enforcement)  and  increased  transparency  through
improvement  of  aid  inventory.  Enforcement  of  intellectual  property  rights  and  further  alignment  of
company  law.  Complete  alignment  and  increased  transparency  of  public  procurement  legislation  to  cover
fully  utilities  sector.

Justice  and  home  affairs:  implementation  of  appropriate  refugee  legislation  consistent  with  1951  Geneva
Convention,  development  of  effective  border  management.

Environment:  continue  transposition  of  framework  legislation,  establishment  and  commencement  of
implementation  of  detailed  approximation  programmes  and  implementation  strategies  related  to  individual
acts.  Planning  and  commencement  of  implementation  of  these  programmes  and  strategies.

3.2.  M e d i u m - t e r m

Political criteria:  further  efforts  to  improve  the  integration  of  the  Roma.

Economic  reform:  continue  to  consolidate  the  conditions  for  strong  investment  growth  through  the
sustained  implementation  of  prudent  macroeconomic  policies  and  the  advancement  of  structural  reforms.

Economic  policy:  regular  review  of  the  joint  assessment  of  economic  policy  priorities,  within  the  Europe
Agreement framework, focusing on satisfying the Copenhagen criteria for membership of the Union and the
acquis  in  the  area  of  economic  and  monetary  policy  (coordination  of  economic  policies,  submission  of
convergence programmes, avoidance of excessive deficits); while Hungary is not expected to adopt the euro
immediately  on  accession,  it  is  expected  to  pursue  policies  which  aim  to  achieve  real  convergence  in
accordance  with  the  Union’s  objectives  of  economic  and  social  cohesion,  and  nominal  convergence
compatible  with  the  ultimate  goal  of  adoption  of  the  euro.

Reinforcement  of  institutional  and  administrative  capacity:  development  of  anti-fraud  unit  and  state  audit
office,  improved  operation  of  the  judicial  system,  training  for  the  judiciary  in  Community  law  and  its
application;  reinforcement  of  justice  and  home  affairs  institutions  (ensuring  sufficient  and  properly  trained
personnel,  in  particular  police,  border  guards,  ministries  and  courts),  reform  of  customs  and  tax
administrations  to  ensure  readiness  to  apply  the  acquis,  the  reinforcement  of  food  control  administration
and  strengthening  of  the  nuclear  safety  authority.

Internal  market:  including  further  development  of  standardisation  and  conformity  assessment  bodies  and
establishment and operation of a market surveillance system, alignment of technical legislation on industrial
products,  further  alignment  of  competition  law,  in  particular  for  State  aid,  reinforcement  of  monitoring
authorities  both  for  competition  and  State  aid,  alignment  of  capital  liberalisation,  financial  services,
audiovisual  policies  and  consumer  protection,  promotion  of  enterprise  development,  including  small  and
medium-sized  enterprises  (SMEs)  alignment  with  the  acquis  in  the  fields  of  telecommunications,  consumer
protection  and  the  internal  energy  market.

Justice and home affairs: including implementation of migration policy and asylum procedures as well as the
fight  against  organised  crime  (in  particular  money  laundering,  drugs  and  trafficking  in  human  beings)  and
corruption,  alignment  of  visa  policy  with  that  of  the  Union  and  completion  of  alignment  on  international
conventions  and  clarification  of  admission  provisions  for  immigrants,  notably  in  view  of  the  Schengen
acquis.

Agriculture:  including  alignment  with  the  agricultural  acquis  (including  veterinary  and  phytosanitary
matters,  in  particular  external  border  controls),  attention  to  environmental  aspects  of  agriculture  and
biodiversity. Development of the capacity to implement and enforce the common agricultural policy (CAP),
in  particular  the  fundamental  management  mechanisms  and  administrative  structures  to  monitor  the
agricultural  markets  and 
implement  structural  and  rural  development  measures,  adoption  and
implementation  of  the  veterinary  and  phytosanitary  requirements,  upgrading  of  certain  food-processing
establishments  and  testing  and  diagnostic  facilities,  restructuring  of  the  agri-food  sector.

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Transport:  further  efforts  on  alignment  with  the  acquis  in  particular  on  rail  and  road  transport  (technical
controls),  and  to  provide  necessary  investment  for  transport  infrastructure,  notably  extension  of
trans-European  networks.

Employment  and  social  affairs:  development  of  appropriate  labour-market  structures  and  joint  review  of
employment  policies  as  preparation  for  participation  in  Union  coordination;  alignment  of  labour  and
occupational  health  and  safety  legislation  and  development  of  enforcement  structures,  in  particular  early
adoption  of  the  framework  directive  on  health  and  safety  at  work;  enforcement  of  equal  opportunities
between women and men; further development of active, autonomous social dialogue; further development
of  social  protection,  undertake  steps  to  bring  public  health  standards  into  line  with  Union  norms.

Environment:  including  the  development  of  monitoring  and  implementation  control  structures  and
capacities,  continuous  planning  and  implementation  of  approximation  programmes  related  to  individual
legal  acts.  A  particular  emphasis  should  be  given  to  waste  water,  waste  management,  air  pollution,
integrated industrial pollution control and risk management. Environmental protection requirements and the
need  for  sustainable  development  must  be  integrated  into  the  definition  and  implementation  of  national,
sectoral policies.

Regional  policy  and  cohesion:  further  strengthen  budgetary  procedures,  financial  instruments,  monitoring
and  control  mechanisms  in  order  to  participate  in  Union  structural  programmes  after  membership.

4.  Programming

The PHARE allocation for the period 1995 to 1997 has totalled ECU 282 million. Subject to the approval
of the PHARE budget for the remaining period, the Commission will confirm the allocations for 1998 and
1999.  Financial  proposals  will  be  submitted  to  the  PHARE  Management  Committee  as  provided  for  in
Regulation (EEC) No 3906/89. Joint financing by the applicant countries will be systematically required for
all  investment  projects.  Financial  assistance  from  the  year  2000  onwards  will  comprise  aid  for  agriculture
and  a  structural  instrument  which  will  give  priority  to  measures  similar  to  the  Cohesion  Fund.

5.  Conditionality

Community  assistance  will  be  conditional  on  respect  by  Hungary  of  its  commitments  under  the  Europe
Agreement,  further  steps  towards  satisfying  the  Copenhagen  criteria  and  progress  in  implementing  this
accession partnership. Failure to respect these general conditions could lead to a decision by the Council on
the  suspension  of  financial  assistance  on  the  basis  of  Article  4  of  Regulation  (EC)  No  622/98.

6.  Monitoring

The  implementation  of  the  accession  partnership  will  be  monitored  in  the  framework  of  the  Europe
Agreement.  This  will  begin  in  1998  before  the  Commission  presents  its  first  regular  report  to  the  Council
reviewing  the  progress  made  by  Hungary  including  implementation  of  the  accession  partnership.

The  relevant  sections  of  the  accession  partnership  will  be  discussed  in  the  appropriate  sub-committee.  The
Association  Committee  will  discuss  overall  developments,  progress  and  problems  in  meeting  its  priorities
and  intermediate  objectives  as  well  as  more  specific  issues  referred  to  it  from  the  sub-committees.  The
Association  Committee  will  report  to  the  Association  Council  on  the  implementation  of  the  accession
partnership.

The PHARE Management Committee will ensure that financing decisions are compatible with the accession
partnerships.

The accession partnership will be amended as necessary in accordance with Article 2 of Regulation (EC) No
622/98. The Commission will propose, before the end of 1999 and at regular intervals thereafter, a review
of  this  partnership  on  which  the  Council  will  take  a  formal  decision.  These  reviews  will  include
consideration  of  the  need  to  further  specify  intermediate  objectives  in  the  light  of  the  progress  made  by
Hungary  in  meeting  the  objectives  set  out  in  this  partnership.