Information from the Commission - Slovenia: Accession Partnership
Date: 1998-06-29
Institutions: European Commission
Subjects: EU aid, EU programme, Slovenia, accession to the European Union, cooperation policy, financial aid

29.6.98

EN

Official  Journal  of  the  European  Communities

C 202/93

SLOVENIA:  ACCESSION  PARTNERSHIP

(98/C 202/10)

1.

INTRODUCTION

recommended 

the  Commission 

In  the  opinion  which  it  submitted  to  the  Council  in  July
1997,  in  accordance  with  the  provisions  of  Article  O  of
the  Treaty, 
that
negotiations 
for  accession  should  be  opened  with
Slovenia.  This  recommendation  derives  from  the  analysis
contained  in  the  opinion  in  which  the  Commission  is  of
the  view  that  Slovenia  (i)  presents  stable  institutions,
guarantees  the  rule  of  law,  human  rights  and  the
protection  of  minorities,  (ii)  can  be  regarded  as  a
functioning  market  economy  able  to  cope  with  the
competitive  pressure  and  market  forces  within  the  Union
in  the  medium  term,  and  (ii)  should  be  capable  in  the
medium term of applying the acquis provided it continues
its  efforts  on  its  transposition  and  intensifies  its  work  on
its  implementation.

Untill  the  entry  into  force  of  the  Europe  Agreement,  the
Interim and Cooperation Agreements will be the basis for
the  European  Union’s  relations  with  Slovenia.  However
the  pre-accession  strategy  will  be  reinforced  to  enable
assistance  to  be  directed  towards  the  specific  needs  of
each  applicant  so  as  to  provide  support  for  overcoming
particular  problems  identified  in  the  opinion.  As  the
Commission  indicated  in  Agenda  2000:  ‘The  reinforced
pre-accession  strategy  has  two  main  objectives.  First,  to
bring together the different forms of support provided by
the  Union 
the  Accession
Partnerships,  and  to  work  together  with  the  applicants,
within  this  framework,  on  the  basis  of  a  clearly  defined
involving
programme 
commitments  by  the  applicants  to  particular  priorities
and  to  a  calendar  for  carrying  them  out.  Second,  to
familiarise  the  applicants  with  Union  policies  and
procedures  through  the  possibility  of  their  participation
in  Community  programmes.’

for  membership, 

in  a  single 

to  prepare 

framework, 

its  meeting 

in  December  1997
At 
in  Luxembourg 
the  European  Council  decided 
the  Accession
that 
Partnerships  would  be  the  key  feature  of  the  enhanced
pre-accession  strategy,  mobilising  all  forms  of  assistance
to  the  applicant  countries  within  a  single  framework.
This  Accession  Partnership  has  been  decided  by  the
Commission,  after  consulting  Slovenia  and  on  the  basis
of  the  principles,  priorities,  intermediate  objectives  and
conditions  which  have  been  decided  by  the  Council.

2. 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  Slovenia’s
application  for  membership  of  the  European  Union,  the

financial  means  available  to  help  Slovenia  implement
these  priorities  and  the  conditions  which  will  apply  to
that  assistance.  This  Accession  Partnership  provides  a
framework for a number of policy instruments which will
in  their
be  used  to  help  the  candidate  countries 
preparations  for  membership.  These  will  include,  inter
alia,  the  National  Programme  for  the  Adoption  of  the
Acquis  to  be  adopted  by  Slovenia,  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.

3. PRINCIPLES

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

the  Copenhagen  criteria  which  state 

— 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.

4. PRIORITIES  AND  INTERMEDIATE  OBJECTIVES

and 

the  Council’s
The  Commission’s  opinions 
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

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Official  Journal  of  the  European  Communities

29.6.98

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
the  others.  The  priorities  and
negotiations  with 
into  two
intermediate  objectives  have  been  divided 
groups — short and medium term. Those listed under the
short  term  have  been  selected  on  the  basis  that  it  is
realistic  to  expect  that  Slovenia  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.

Slovenia  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  indicates  that  Slovenia  will
have  to  address  all  issues  identified  in  the  opinion.  The
annex  provides  a 
these.
summary 
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.

checklist  of 

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  Slovenia.

4.1. Short  term  (1998)

— Economic  reform:  establishment  of  medium-term
economic  policy  priorities  and 
joint  assessment
within  the  framework  of  the  Interim/Cooperation
Agreement;  action  on  market-driven  restructuring  in
the  enterprise,  finance  and  banking  sectors  and
preparation  of  pension  reform.

— Reinforcement  of 

institutional  and  administrative
capacity:  in  particular  introduction  of  a  civil  service
act,  improvements  in  the  areas  of  the  judiciary,  of
land 
registration,  phytosanitary  and  veterinary
administration,  particularly  as  regards  facilities  at  the
external  borders, 
control  and  audit
financial 
functions,  institutional  strengthening  in  the  area  of
environment,  beginning  to  set  up  structures  needed
for  regional  and  structural  policy.

— Internal  market:  including  alignment  in  the  areas  of
indirect  taxation,  intellectual  and  industrial  property,

in  1999, 

(conformity 

assessment), 

law  and  preparation 
standardisation 

for
adoption  of  VAT 
and
implementation 
technical
certification 
regulations,  and  of 
legislation  and
liberalisation  of  capital  movements  (in  particular
currency  legislation),  establishment  of  a  State  aid
monitoring  authority,  a  first  State  aid  inventory  and
the  creation  of  a  legal  framework  for  State  aid
control,  progress  towards  adoption  on  an  anti-trust
law.

company 

— Property  law:  further  clarification  of  the  situation
pertaining  to  property 
legislation  with  particular
regard to the right to purchase property for European
Union  citizens.

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

finalising 

4.2. Medium  term

— Political  criteria:  pursue  efforts  to  speed  up  property

restitution.

— Economic  policy: 

the 

regular 

review  of 

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  Slovenia  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 

the 

institutional  and  administrative
capacity: as  regards  public  procurement  (in  particular
transparency),  supervision  of 
insurance  and
security  market,  the  Slovene  Competition  Office,
completion  of  competition  law,  development  and
implementation  of  agricultural  and  regional  policies,
audio-visual  policies,  customs  administration  and
enforcement of the customs code; improved operation
of  the  judicial  system;  training  for  the  judiciary  in
Community  law  and  its  application,  reinforcement  of
justice  and  home  affairs 
(ensuring
sufficient and properly trained personnel, in particular
police,  border  guards,  ministries  and  courts),
strengthening  of  the  nuclear  safety  authority,  reform
of  customs  and 
to  ensure
readiness to apply the acquis and the reinforcement of
food  control  administration.

tax  administrations 

institutions 

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C 202/95

— Internal market: including the alignment of legislation
on public procurement, financial services, State aid (in
particular alignment of monitoring rules and exclusive
and  special  rights),  upgrading  of  standardisation  and
conformity  assessment  structures,  establishment  of
a  market  surveillance  system  and  alignment  of
horizontal technical legislation on industrial products,
increased  efforts  to  liberalise  the  capital  market  and
to  facilitate  foreign  investments,  further  alignment
of  consumer  protection, 
the
competition  office  and  the  State  aid  monitoring
authority,  efficient  enforcement  of  competition  law,
promotion  of  enterprise  development, 
including
SMEs,  alignment  with  the  acquis  in  the  fields  of
telecommunications,  consumer  protection  and  the
internal  energy  market.

reinforcement  of 

— Justice  and  home  affairs:  completion  of  alignment  to
in  criminal
international  conventions,  particularly 
field,  fight  against  organised  crime  (in  particular
money  laundering,  drugs  and  trafficking  in  human
beings)  and  corruption,  implementation  of  migration
policy and asylum procedures, and to align visa policy
with  that  of  the  European  Union  and  to  complete
alignment  to  international  conventions,  notably  in
view  of  the  Schengen  acquis.

— Nuclear safety: nuclear policy and investment plans to
be  adjusted  in  line  with  the  results  of  the  seismic  risk
assessment  to  be  carried  out  in  the  surroundings  of
the  Krsko  NPP.

acquis 

veterinary 

(including 

strengthening  of 

— Agriculture:  establishment  of  a  functioning 
structural  and 

land
registry, 
rural
development  policy,  including  alignment  with  the
agricultural 
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,  in  particular  the  fundamental
management  mechanisms 
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.

and 

— Fisheries:  development  of  capacity  to  implement  and

enforce  the  common  fisheries  policy.

— Transport: further efforts on alignment with acquis in
particular  in  road  transport  (market  access,  safety
rules and taxation) and rail, and to provide necessary
investment 
infrastructure,  notably
extension  of  trans-European  networks.

transport 

for 

labour  market  structures  and 

— Employment  and  social  affairs:  development  of
appropriate 
joint
review  of  employment  policies  as  preparation  for
participation 
coordination;
in  European  Union 
alignment  of  labour  and  occupational  health  and
safety  legislation  and  development  of  enforcement
structures, 
the
framework  Directive  on  health  and  safety  at  work;
enforcement  of  equal  opportunities  between  women
and  men;  further  development  of  active,  autonomous
social
social  dialogue; 
protection.

in  particular  early  adoption  of 

further  development  of 

— Environment: 

the 

planning 

including 

capacities, 

development 

of
monitoring  and  implementation  control  structures
and 
and
continuous 
implementation of approximation programmes related
to  individual  legal  acts.  A  particular  emphasis  should
be given to the waste water sector and air pollution as
well as 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:  introduce  the  legal,
for  a
administrative  and  budgetary 
national policy to address regional disparities through
an  integrated  approach,  in  order  to  participate  in
European  Union 
after
membership.

structural  programmes 

framework 

5. MAIN  INSTRUMENTS  FOR  COMMUNITY

TECHNICAL  AND  FINANCIAL  ASSISTANCE

5.1. Programming  of  financial  resources

The  Phare  allocation  for  the  period  1995  to  1997  has
totalled  ECU  72  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  Council  Regulation  (EEC)
No  3906/89.  Joint  financing  by  the  applicant  countries
will be systematically required for all investment projects.
The  Commission  will  work  with  Slovenia,  the  EIB  and
international  financing 
in  particular  the
EBRD  and  World  Bank,  with  a  view  to  facilitating  the
co-financing  of  projects 
to  pre-accession
priorities.  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.  In  addition  Slovenia  will
have  access  to  funding  from  multi-country  programmes
directly  related  to  the  acquis.

institutions, 

relating 

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29.6.98

The Phare programme is the main financial instrument of
the  reinforced  pre-accession  strategy.  Phare’s  prime
objective  is  to  help  prepare  Central  and  East  European
countries  for  accession  by  focusing  the  assistance  it
provides  on  the  adoption  of  the  Community  acquis  and
in  particular  on  the  priorities  identified  in  this  Accession
Partnership  and  in  the  National  Programme  for  the
Adoption  of  the  Acquis.  Each  year  the  Commission  will
sign  a  financing  memorandum  with  Slovenia  in  which
Slovenia will undertake to meet a number of the priorities
the
identified 
Commission  will  undertake  to  contribute  financially  to
their  realisation.  Programming  of  Community  financial
assistance  will  take  into  account  the  priorities  and
timetable  of  the  NPAA.

this  Accession  Partnership  and 

in 

In  addition,  the  subsequent  allocation  of  financial
assistance  will  be  closely  tied  to  the  respect  by  the
Slovenian  Government  of  the  commitments  made  in  the
NPAA.  Certain  pre-accession  activities  can  be  reinforced
now  (e.g.  support  for  institution  building)  but  others,
such  as  the  financing  of  major  investment  projects
designed  to  meet  the  requirements  of  the  acquis  in  areas
such  as  environment  and  nuclear  safety  will  have  to  be
programmed  over  a  period  of  five  to  six  years.

From  1998  Phare  assistance  will  be  channelled  through
the  following  types  of  actions:

— Institution  building  (around  30 %),  which  involves
the  strengthening  of  democratic  institutions,  rule  of
law,  public  administration  and  all  entities  responsible
for  public  services  in  order  to  establish  the  necessary
institutional  and  administrative  structures  and  train
the  people  required  to  apply  the  acquis.  Institution
building  support  will  be  implemented,  inter  alia,
through,  training  actions,  technical  assistance  and
twinning  of 
in
Slovenia  with  relevant  bodies  in  the  Member  States.
Initially this twinning will focus on priority areas such
as finance, agriculture, environment, justice and home
affairs.

institutions  and  administrations 

in 

covering 

— Investment  support  (around  70 %),  in  order  to  make
the  necessary  investments  possible  for  the  adaptation
of  Slovenian  infrastructure  to  the  Community  acquis.
This  support  will  concentrate  on:  (i)  structural
actions, 
agricultural
restructuring,  regional  development  and  investment
in  human  and 
intellectual  capital,  which  could
include  Phare  contributions  to  participation  in  the
research  and  technological  development  framework
programme;  (ii)  compliance  with  Community  norms,
in  particular  as  regards  environment,  agriculture,
industry,  occupational  safety  and  health,  transport
and  telecommunications;  (iii)  co-financing  of  large

particular 

scale  infrastructure (1)  and  (iv)  small  and  medium-
sized  enterprises  development (2).

5.2. Role  of  international  financial  institutions

Cooperation  between  Slovenia  and  the  international
financial  institutions  will  receive  a  new  impetus  and  a
new  focus  through  the  Accession  Partnership.  The  grant
resources made available under the Accession Partnership
will  serve  as  seed  money  and  a  catalyst  for  larger
amounts  of  development  finance  from  the  IFIs.  This
process  will  be  developed  by  the  Commission  in  liaison
with  the  candidate  countries,  the  EIB  and  the  IFIs,  in
particular the EBRD and the World Bank with a view to
facilitating  the  co-financing  of  projects  relating  to
pre-accession  priorities.

Under  a  new  lending  mandate  covering  the  period  1997
to  1999,  the  EIB  can  make  available  ECU  3 520  million
in  Central  and  Eastern  Europe.  The  new  pre-accession
facility  approved  by  the  EIB’s  governors  in  early  1998
increases this amount to ECU 7 billion. EIB loans shall be
used  in  all  sectors  eligible  for  EIB  financing  to  facilitate
the  accession  process.

6.

CONDITIONALITY

steps 

further 

Community  assistance  will  be  conditional  on  respect  by
the  Europe
its  commitments  under 
Slovenia  of 
Agreement, 
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  Council  Regulation  (EC)  No  622/98.

satisfying 

towards 

7.

IMPLEMENTATION  OF  PRE-ACCESSION
ASSISTANCE

inclusion 

The  provision  of  financial  assistance  to  Slovenia  will
depend  on  the  maturity  of  projects  proposed  by  the
Slovenian  Government  for 
in  a  financing
memorandum.  Where  projects  need  to  be  tendered  the
Commission  will  only  finance  those  projects  which  are
ready  for  tendering  at  the  stage  of  the  signature  of  the
financing memorandum. In addition any previous/existing
commitments  in  the  same  sector  must  have  been  fully
contracted  or  be  on  track.  In  order  to  ensure  efficient
implementation,  projects  to  be  financed  must  not,  in
principle, fall below a threshold of ECU 2 to 3 million, in

(1) Concerning  investment  projects  in  general,  Slovenia  will  be
required  to  fulfil  the  principle  of  complementarity  by  means
of  contributing  a  minimum  amount  of  25 %  to  jointly
financed  projects.

(2) A horizontal facility for SMEs will be available to remedy the
shortage  of  investment  capital  available  to  small  enterprises.

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particular  in  the  case  of  infrastructure  projects.  If  these
principles  lead  to  a  situation  where  Slovenia  cannot
absorb  its  full  indicative  allocation,  the  allocation  will
be  reduced  accordingly.  The  difference  between  the
indicative  and  final  allocation  will  be  transferred  to  the
horizontal  SME  and/or  the  large  scale  infrastructure
facility. No subsequent compensation of this amount will
be  made.

The Government of Slovenia is invited to put in place an
implementation  structure  which  ensures  coherence  and
complementarity  between  all  types  of  European  Union
financial  assistance  and  national  resources.  A  national
coordinator  will  be  responsible  for  ensuring  a  close  link
the
the  general  accession  process  and 
between 
programming  of  the  Community  financial  assistance.

investment  promotion  and 

The  Government  of  Slovenia  will  establish  (preferably  in
the  Ministry  of  Finance)  during  1998  a  national  fund
for 
institution  building
functioning  under  the  responsibility  of  a  National
Authorising Officer (NAO). As the central entity through
which  Phare  and  other  forms  of  Community  financial
assistance  will  be  channelled,  the  national  fund  will  be
responsible  for  the  management  of  these  funds  under
decentralised 
increase
transparency  and  reduce  dispersion  of  funds.  It  will  have
overall  responsibility  for  management  of  funds  including
respect  of  provisions  of  the  financing  memorandum  and
be  accountable  to  the  Commission  for  the  use  of  the
funds.  It  will  also  ensure  and  supervise  the  flow  of
national  and  other  co-financing  resources  as  set  out  in
the  financing  memorandum.  The  detailed  functions  and
responsibilities of the national fund will be set out in the
individual financing memoranda.

implementation 

in  order 

to 

the  Government  of  Slovenia,
In  cooperation  with 
the  Commission  will  pursue  a  policy  of 
further
decentralisation  of  the  implementation  of  the  financial
assistance  where  certain  pre-conditions  are  met,  and  to
the  extent  permitted  by  the  European  Communities’
Financial  Regulation,  in  particular  Article  105(3).  This
will be done with the intention to establish, within limits
and  in  a  gradual  manner,  a  relationship  between  the
Commission  and  Slovenia  where  responsibility  is  shared
along  the  lines  of  the  relationship  existing  with  the
Member  States  for  implementing  the  Structural  Funds.

In  this  context,  the  possibility  of  applying  national
procurement  procedures  in  the  tendering  and  contracting
of Phare projects may be explored by the Commission, if
so requested by the Government of Slovenia, in particular
in  the  field  of  investment.  The  Commission’s  decision
on  this  matter  will  be  taken  following,  inter  alia,

its 

Financial  Regulation, 

examination  of  the  Slovenian  national  procurement  law
for respect of and compatibility with the basic provisions
of  the  European  Community’s  public  procurement  rules
and 
equal
participation in tenders and the provisions of Article 118.
Any  decision  on  the  use  of  national  procurement  rules
will  be  taken  by  the  Commission  on  a  case-by-case  basis
and  will  be  confirmed 
individual  financing
memoranda.

including 

in  the 

individual 

jointly  with 
in 

the  Commission 
the 

The  monitoring  of  programme  implementation  shall  be
carried  out 
through
procedures  established 
financing
memoranda.  In  order  to  ensure  effective  monitoring  of
Phare
assistance 
implementation 
programme,  each  Phare  programme  will  incorporate
quantified physical and financial objectives which will be
specified  in  the  financing  memorandum.  In  order  to
gauge their effectiveness all operations financed under the
Phare programme will be subject to ex-post evaluation to
appraise  their  impact  with  respect  to  their  objectives.

under 

the 

of 

8. MONITORING

The  implementation  of  the  Accession  Partnership  will  be
monitored  in  the  framework  of  the  Europe  Agreement.
This  will  commence  in  1998  before  the  Commission
presents  its  first  regular  report  to  the  Council  reviewing
the  progress  made  by  Slovenia  including  implementation
of  the  Accession  Partnership.

The  relevant  sections  of  the  Accession  Partnership  will
be  discussed 
in  the  appropriate  subcommittee.  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  subcommittees.  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  a  review  of
this  partnership  before  the  end  of  1999  and  at  regular
intervals 
include
consideration  of  the  need  to  further  specify  intermediate
objectives in the light of the progress made by Slovenia in
meeting  the  objectives  set  out  in  this  partnership.

thereafter.  These 

reviews  will 

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ANNEX

Slovenia will have to address all issues identified in the opinion. The purpose of this Annex is to provide a
summary  checklist  of  these  issues.  These  are  formulated  as  recommendations  for  action.  They  are  listed  in
the order in which they appear in the opinion without any ranking in terms of importance or urgency. The
priority  areas  for  action  by  each  candidate  are  set  out  as  priorities  and  intermediate  objectives  in  the
Accession  Partnership  itself.

1.

Political criteria

Efforts should be made to enhance the judicial system, to intensify the fight against corruption, speed up the
process  of  restoring  property  or  providing  adequate  compensation  to  former  owners  of  property
expropriated  by  the  Communist  regime.

Steps  must  be  taken  to  resolve  the  problem  of  stateless  people  living  in  Slovenia.

2.

Economic criteria

Slovenia  should  ensure  the  continuity  and  reinforcement  of  progress  in  liberalisation,  and  privatisation,  to
bring about long-term convergence with the European Union. In this context, the Slovene authorities should
give  particular  attention  to:  the  completion  of  public  sector  reform,  notably  by  introducing  VAT  on
1 January 1999, reforming the pension system, and establishing a market based regulatory and governance
system  for  State-owned  enterprises;  reduction  of  real  interest  rates  and  labour  costs,  the  further
liberalisation  of  prices  and,  subsequently,  the  adjustment  of  inflation  to  European  Union  levels  in  the
medium  term;  accelerating  enterprise  restructuring  and  modernisation  of  privatised  and  State-owned
companies, in particular through accelerated liberalisation of the capital market and increased attraction of
foreign  investment,  and  improvement  of  corporate  governance.

Continued  attention  is  also  required  as  regards  banking  system  reform  and  the  liberalisation  and
reinforcement  of  the  financial  system.  High  levels  of  investment  will  be  required  in  such  fields  as  the
environment,  energy  and  transport.

3.

Ability  to  assume  the  obligations  of  membership

3.1.

Internal  market  without  frontiers

The  four  freedoms

G e n e r a l   f r a m e w o r k   —  in general efforts must be made to accelerate law reform in the field of public
procurement,  for  instance  as  regards  the  utilities  sector,  the  remedies  system  and  the  White  Paper  Stage  II
measures.  In  the  field  of  intellectual  and  industrial  property,  approximation  of  legislation  should  continue
especially  in  the  field  of  audio-visual  productions  and  the  pharmaceutical  sector.  As  regards  company  law
full  compatibility  with  the  second  Directive  must  be  ensured.  New  legislation  on  accounting  and  auditing
must  be  fully  enforced  and  accountants  and  auditors  should  be  properly  trained.  Implementation  and
enforcement  of  legislation  on  the  protection  of  personal  data  must  be  strengthened.

F r e e   m o v e m e n t   o f   g o o d s   —  adoption of the European Community new approach system needs to be
accelerated.  Independent  standardisation  and  conformity  assessment  infrastructures  will  also  have  to  be
established, with a clear separation between regulatory, standardisation and product certification functions.
European  Community  legislation  on  motor  vehicles,  chemicals,  foodstuffs  and  pharmaceuticals  needs  to  be
fully aligned, and new approach legislation adopted. A market surveillance mechanism will have to be set up
and  harmonisation  of  sectoral  legislation  completed.

F r e e   m o v e m e n t   o f   c a p i t a l   —   monetary  restrictions  adopted  by  the  Bank  of  Slovenia  must  be
removed  and  liberalisation  of  capital  movements  should  be  assured.  Policies  on  foreign  direct  investment
should  be  reviewed  in  order  to  be  compatible  with  more  liberal  movements  and  to  promote  higher  foreign
direct  investment.

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F r e e   m o v e m e n t   o f   s e r v i c e s   —  full free establishment in the area of banking, securities and insurance,
in  particular  with  regard  to  branches  of  foreign  institutions  must  be  introduced.  Privatisation  in  the
insurance  sector  should  be  speeded  up  and  the  sector  should  be  opened  up  to  European  Union  operators
and  foreign  investment.  Supervisory  function  should  be  strengthened.

F r e e   m o v e m e n t   o f   p e r s o n s   —  mutual  recognition  of  diplomas  should  be  adjusted.  From  a  technical
point of view, further adoption of regulations will be necessary. Further efforts must be made to ensure the
necessary  legislative  and  enforcement  measures  as  regards  the  coordination  of  social  security  schemes.

Competition

The  1993  Law  on  the  Protection  of  Competition  must  be  amended  to  make  it  compatible  with  European
Community  competition  rules.  In  the  field  of  State  aid,  a  comprehensive  inventory  of  all  existing  aid  must
be  established  and  continuously  updated  in  accordance  with  Community  practice.  A  national  legal
framework  on  State  aid,  covering  the  monitoring  and  admissibility  of  State  aid,  must  be  created.  A
monitoring  authority  should  be  set  up  which  has  the  power  to  review  all  existing  aid  measures  for  their
compatibility  with  the  Europe  Agreement  and  to  monitor  all  new  aid  on  a  systematic  basis.  Certain
exclusive  rights  and  State  monopolies  which  are  not  compatible  with  the  Community  acquis  must  be
progressively  adjusted  and/or  abolished.

3.2.

Innovation

Research  and  technological  development

Considerable efforts remain to be undertaken to revitalise technological development in the industrial sector
and  to  exploit  the  potential  of  national  research  for  economic  development.

Education,  training  and  youth

Continued  progress  in  re-orienting  the  education  and  training  system  towards  a  human  resources
development  policy  which  is  suitable  for  a  small  open  market  economy  aiming  at  international
competitiveness.  Budgetary  resources  for  education  should  be  re-oriented  in  line  with  these  new  priorities.
Links  with  research  and  development  should  be  reinforced.

Telecommunications

Additional  efforts  in  policy  and  regulation  are  needed  to  comply  with  European  Union  Directives  and  to
promote  competition.  At  the  same  time,  the  acquis  now  requires  governments  to  ensure  that  a  modern
telephone  service  is  available  everywhere  at  an  affordable  price.  Meeting  this  obligation  will  require
significant  investment  in  the  system.

Audiovisual

The existing legislation must be amended, in particular with regard to the questions of freedom of reception,
promotion  of  European  works,  advertising  rules  and  the  protection  of  minors.

3.3. Economic  and  fiscal  affairs

Economic  and  monetary  union

Monetary  policy  should  be  adjusted  to  be  able  to  curb  excessive  speculative  capital  in  flows  without
resorting to capital controls. On-going reform efforts in terms of monetary policy should be continued. The
restructuring  of  the  financial  sector  should  be  completed  and  Central  Bank  legislation  should  be  made
compatible  with  European  Community  rules.

Taxation

VAT  legislation  in  accordance  with  European  Union  requirements  should  be  introduced.

The  excise  duty  system  must  be  reformed  to  avoid  discrimination  against  certain  imported  commodities  in
favour of domestically produced products and the scope and rates of duties must be approximated towards
the  Community  legislation.

In  the  field  of  excise  duties  particular  attention  should  be  given  to  the  setting  up  of  a  warehousing  system
for the movement of goods under duty suspension arrangements. Tax structures and the level of excise rates
need  to  be  aligned  on  the  Community  model.

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Statistics

Efforts  must  be  made  in  the  field  of  official  statistics,  in  particular  with  regard  to  financial  accounts,
agricultural  statistics  and  foreign  trade  statistics.

3.4. Sectoral  policies

Industry

To enhance competitiveness, further efforts should be made to pursue policies aimed at promoting open and
competitive markets and taking on the instruments which make up European Community industrial policy,
relating  both  to  the  operation  of  markets  (product  specification  and  market  access,  trade  policy,  State  aids
and  competition  policy)  and  measures  related  to  industry’s  capacity  to  adapt  to  change  (stable
macroeconomic  environment,  technology,  training,  etc.).

Agriculture

Substantial  efforts  must  be  made  to  ensure  the  alignment  of  Slovenian  legislation  with  European  Union
requirements.  With  regard  to  veterinary  and  phytosanitary  requirements,  special  attention  must  be  paid  to
implementation  and  enforcement  of  veterinary  and  plant  health  requirements  and  upgrading  of
establishments  to  meet  European  Community  standards  particularly  with  regard  to  the  inspection  and
control arrangements for protecting the European Union external border. Administrative structures must be
strengthened  to  ensure  the  implementation  and  enforcement  of  the  policy  instruments  of  the  common
agricultural  policy  in  particular  to  ensure  a  functioning  land  registration.  The  agri-food  sector  must  be
further  restructured  to  ensure  its  competitive  capacity.  Structural  and  rural  development  policy  should  be
strengthened.

Fisheries

The  fisheries  administration  must  be  strengthened  to  ensure  the  effective  implementation  of  the  common
fisheries  policy,  in  particular  as  regards  the  conservation  and  the  management  of  resources,  the
implementation  of  a  monitoring  and  control  system,  the  management  of  the  common  organisation  of  the
market  in  the  fishery  and  aquaculture  sector,  the  implementation  of  a  structural  policy  in  the  fisheries  and
aquaculture  sector,  the  keeping  of  a  fishing  vessel  register,  the  collection  of  statistical  data  as  well  as  the
implementation  of  European  Union  fishery  policy  on  environmental  protection.

Energy

Current  efforts  for  alignment  must  be  maintained,  in  particular  with  regard  to  the  adjustment  of
monopolies, including import and export issues, access to networks, energy pricing, State intervention in the
solid  fuels  sector,  development  of  energy  efficiency  and  fuel  quality  standards.  Special  attention  must  be
paid  to  emergency  preparedness  including  the  building  up  of  mandatory  oil  stocks.  Slovenia  should  adhere
to  and/or  fully  implement  international  nuclear  agreements.  Long-term  solutions  for  nuclear  waste  from
Krsko  Plant  need  to  be  found.  The  independence  of  the  safety  authority  should  be  supported.

Transport

Additional  efforts  must  be  made  to  ensure  the  necessary  legislation  and  effective  implementation  in  road
haulage  (in  particular  on  market  access  and  taxation)  and  for  rail  transport.  Transparency  of  financial
procedures  in  the  rail  sector  must  be  provided.  Steps  must  be  taken  to  ensure  the  future  extension  of  the
trans-European  networks.  At  a  national  level  there  is  a  need  to  develop  specific  strategies  for  transport
infrastructure development and financing. Achieving an acceptable level of transport safety and optimal use
of  transport  system  are  two  areas  which  need  attention.

Small  and  medium-sized  enterprises

Slovene  SME  development  policy  should  be  improved  especially  regarding  the  coherence  and  the
coordination  of  various  action  programmes.

3.5. Economic  and  social  cohesion

Employment  and  social  affairs

Legislation  must  be  realigned  with  European  Union  requirements  in  such  areas  as  health  and  safety,  and
equal opportunities. Labour law must be adapted to ensure full compliance with the acquis. Some technical
adaptations in the field of social security for migrant workers are necessary. Social reform should continue
and  social  dialogue  must  be  developed.

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Regional  policy  and  cohesion

A regional development policy addressing regional disparities must be introduced and the administrative and
budgetary  structures  required  to  manage  integrated  European  Community  structural  actions  after
membership  must  be  established.

3.6. Quality  of  life  and  environment

Environment

Steps  must  be  taken  to  ensure  the  full  transposition  of  the  environmental  acquis  as  well  as  substantial
progress  in  effective  compliance.  The  National  Environmental  Action  Programme  and  environmental
accession  strategy  must  be  adopted  in  the  short  term.  Particular  efforts  must  be  made  to  achieve  full
European  Union  compatibility  of  the  urban  waste  water  treatment,  drinking  water,  aspects  of  waste
management  and  air  pollution  legislation.  Investments  must  be  increased.  With  reference  to  administrative
capacity  a  considerable  effort  must  be  made  to  develop  adequate  implementation  and  enforcement
structures.

Consumer  protection

Consumer  protection  should  be  strengthened,  notably  in  the  case  of  general  product  safety  and  consumer
credit. The draft ‘Consumer Protection Act’ should be revised to ensure it is complete and fully compatible
with  European  Community  standards  on  consumer  protection.  The  development  of  an  independent
consumer movement, sustained by the public authorities, will be necessary to accompany the introduction of
the  acquis.

3.7.

Justice  and  home  affairs  (JHA)

Some gaps need to be filled in Slovenia’s legislation. Special efforts should be made to reform the judiciary
and  the  legal  system  and  to  develop  human  resources  in  this  sector  to  enable  it  to  operate  effectively.
Further  progress  is  needed  concerning  immigration.  The  fight  against  organised  crime  must  be  intensified
including  the  fight  against  trafficking  in  drugs  and  human  beings,  arms  and  stolen  cars.  Money  laundering
needs to be addressed. Steps must be taken to ensure ratification of international conventions particularly in
the  criminal  field.

3.8. External  policies

Trade  and  international  economic  relations

Preparations  must  be  made  for  applying,  on  accession,  the  Community’s  various  cooperation  and
preferential  agreements,  multilateral  and  bilateral  commercial  policy  commitments  and  its  autonomous
commercial  defence  instruments.  At  the  same  time,  national  legislation  in  the  field  must  be  repealed.  The
lack of export controls on dual-use goods must be addressed to ensure effective control mechanisms by the
time  of  accession.

Development

Preparations  must  be  made  for  applying,  on  accession,  the  Lomé  trade  regime  to  the  ACP  States  and
participating,  together  with  the  other  Member  States,  in  financing  the  European  Development  Fund.

Customs

Customs legislation must be aligned on that of the European Community and the organisation and duties of
staff  must  be  aligned  on  those  of  a  modern  customs  administration.  An  effort  must  be  made  to  develop
computerised  systems  for  full  participation  in  the  customs  union  and  the  internal  market.  Particular
attention  must  be  paid  to  preparing  the  customs  administrations  for  the  operation  of  all  the  customs
procedures  with  economic  impact,  the  system  of  tariff  suspensions  and  the  administration  of  tariff  quotas
and ceilings. Strategic planning has to take account of the reinforcement of border posts along the external
frontier  that  Slovenia  has  with  countries  other  than  European  Union  Member  States  at  the  time  of
accession.

3.9. Financial  questions

The  necessary  financial  control  and  audit  function  mechanisms  must  be  strengthened  to  ensure  satisfactory
implementation  of  Community  policies.

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4.

Administrative  capacity  to  apply  the  acquis

To  ensure  the  effective  implementation  and  enforcement  of  the  acquis,  major  reform  efforts  must  be  made
to  strengthen  Slovenia’s  administrative  structures  in  virtually  all  European  Union  relevant  sectors.  Special
efforts  must  be  made  to  properly  staff  and  train  Ministries  and  public  authorities  which  must  ensure  the
correct  application  of  Community  acquis.  The  regulatory  and  monitoring  bodies  must  be  strengthened  in
such  fields  as  competition,  telecommunications,  taxation,  agriculture,  transport,  social  policy,  regional
policy  and  cohesion,  environment,  veterinary  and  phytosanitary  controls,  food  control,  consumer
protection,  judiciary  and  customs  and  financial  control.

Increased  efforts  must  be  made  for  the  upgrading  of  staff  qualifications  on  European  Union-related  issues
and efficient public management in general. This should include the implementation of the master plan for
public  administration  reform.

The  judicial  system  must  be  strengthened  in  terms  of  resources  and  relevant  expertise.  A  comprehensive
upgrading  of  judges,  in  particular  in  European  Union  matters,  must  be  carried  out.