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

29.6.98

EN

Official  Journal  of  the  European  Communities

C 202/63

POLAND:  ACCESSION  PARTNERSHIP

(98/C 202/07)

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
that
the  Treaty, 
negotiations for accession should be opened with Poland.
This recommendation derives from the analysis contained
in  the  opinion  in  which  the  Commission  is  of  the  view
that  Poland  (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  (iii)  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.

The  Europe  Agreement  will  remain  the  basis  for  the
European  Union’s  relations  with  Poland.  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  Accession
the  Union 
Partnerships,  and  to  work  together  with  the  applicants,
within  this  framework,  on  the  basis  of  a  clearly  defined
programme 
involving
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  Poland  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  Poland’s
application  for  membership  of  the  European  Union,  the
financial means available to help Poland 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
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 Poland, 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  Commission’s  opinions 
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,

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29.6.98

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 
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 Poland 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.

Poland 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 Poland will have
to  address  all  issues  identified  in  the  opinion.  The  annex
provides  a  summary  checklist  of  these.  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  Poland.

4.1. Short  term  (1998)

— Economic  reform:  establishment  of  medium-term
economic policy priorities and joint assessment within
the framework of the Europe Agreement; acceleration
of  the  privatisation/restructuring  of  State  enterprises
(including 
sound
telecommunications),  and 
including
development  of 
acceleration  in  a  transparent  manner  of  banking
privatisation  and  improving  bankruptcy  proceedings.

financial 

sector, 

the 

the 

— Industrial  restructuring:  adoption,  by  30  June,  and
start  of  implementation  of  a  viable  steel  sector
restructuring  programme,  pursue  restructuring  in  the
coal  sector.

— Reinforcement  of 

institutional  and  administrative
capacity:  in  particular  improvements  in  the  areas  of
customs,  State  aid  controls,  justice  and  home  affairs

(ministries  and  services),  financial  control,  veterinary
and  phytosanitary  controls  (particularly  as  regards
facilities  at 
the  external  borders),  environment,
taxation  and  regional  policy.

including 

certification 

(further  alignment  of 

and
— Internal  market: 
standardisation 
legislative
measures  and  conclusion  of  a  European  Conformity
Assessment  Agreement),  further  alignment  in  the
areas  of  intellectual  and  industrial  property,  public
procurement  and  liberalisation  of  capital  movements,
the adoption of a law on State aid, and strengthening
of  monitoring  authority,  finalisation  of  inventory.

— Justice  and  home  affairs:  develop  more  effective
border  management  and  control  systems  in  particular
of the borders with Belarus and the Ukraine and align
visa  regimes  with  the  European  Union.

— Agriculture:  establish  a  coherent  structural  and  rural
development  policy;  adoption  of 
implementing
Regulations  and  implementation  and  enforcement  of
veterinary and phytosanitary requirements particularly
with 
control
arrangements  for  protecting  European  Union  external
borders.  In  particular,  upgrading  of  certain  food
processing establishments (milk and meat sectors) and
certain  testing  and  diagnostic  facilities.

inspection 

regard 

and 

the 

to 

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

4.2. Medium  term

— Political  criteria:  further  attention  to  ensuring  equal

access  to  public  services.

— 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  Poland  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
financial  control
audit  office, 

strengthening  of 

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capacity;  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),  strengthening  of  parliamentary
law-making procedures, improvement of tax gathering
capacity,  reform  of  customs  and  tax  administrations
to  ensure  readiness  to  apply  the  acquis  and  the
reinforcement  of  food  control  administration.

development 

standardisation 

— Internal market: including completion of alignment of
legislation,  financial  services,
public  procurement 
further 
and
of 
conformity  assessment  bodies  and  establishment  and
operation  of  a  market  surveillance  system,  alignment
of  technical  legislation  on  industrial  products,  further
improvements  in  the  field  of  competition  (e.g.  merger
control),  efficient  enforcement  of  competition  law,
audiovisual,  property  ownership  and  external  frontier
control,  reinforcement  of  the  anti-trust  and  State  aid
authorities,  promotion  of  enterprise  development,
including  SMEs,  alignment  with  the  acquis  in  the
fields  of  telecommunications,  consumer  protection
and  the  internal  energy  market.

— Justice  and  home  affairs:  including  development  of
effective  border  management  and  implementation  of
migration  policy  and  the  new  asylum  system  as  well
as  the  fight  against  organised  crime  (in  particular
money  laundering,  drugs  and  trafficking  in  human
beings)  and  corruption,  implementation  of  reforms  of
legislation on aliens, 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.

— Agriculture:  including  alignment  with  the  agricultural
(including  veterinary  and  phytosanitary
acquis 
matters, 
in  particular  external  border  controls),
attention  to  environmental  aspects  of  agriculture  and
biodiversity,  implementation  of  structural  and  rural
development  policy.  Development  of  the  capacity  to
implement  and  enforce  the  common  agricultural
policy,  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.

— 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,  undertake  steps  to  bring  public  health
standards  into  line  with  European  Union  norms.

in  particular  early  adoption  of 

further  development  of 

— Environment: 

the 

planning 

including 

individual 

capacities, 

development 

of
monitoring  and  implementation  control  structures
and 
and
continuous 
implementation of approximation programmes related
legal  acts.  A  particular  emphasis
to 
should  be  given  to  drinking  water,  waste  water,
the  waste  sector  as  well  as  air  pollution,  including
large  combustion  plants.  Environmental  protection
requirements 
sustainable
development  must  be  integrated  into  the  definition
and  implementation  of  national  sectoral  policies.

need 

and 

the 

for 

— Regional  policy  and  cohesion:  completion  of  legal
structures
basis,  development  of  administrative 
and  budgetary  procedures,  financial 
instruments,
monitoring  and  control  mechanisms  in  order  to
participate  in  European  Union  structural  programmes
after  membership.

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  526  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  Poland,  the  EIB  and
international  financing 
in  particular  the
EBRD  and  World  Bank,  with  a  view  to  facilitating
the  co-financing  of  projects  relating  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  Poland  will
have  access  to  funding  from  multi-country  programmes
directly  related  to  the  acquis.

institutions, 

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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  Poland  in  which
Poland  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 Polish
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 institutions and administrations in Poland
with  relevant  bodies  in  the  Member  States.  Initially
this  twinning  will  focus  on  priority  areas  such  as
finance,  agriculture,  environment,  justice  and  home
affairs.

in 

covering 

— Investment  support  (around  70 %),  in  order  to  make
the  necessary  investments  possible  for  the  adaptation
of  Polish  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

the 

Cooperation  between  Poland  and 
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

Community  assistance  will  be  conditional  on  respect  by
Poland  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 Council Regulation
(EC)  No  622/98.

7.

IMPLEMENTATION  OF  PRE-ACCESSION
ASSISTANCE

for 

inclusion 

The  provision  of  financial  assistance  to  Poland  will
depend  on  the  maturity  of  projects  proposed  by  the
Polish  Government 
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

in  a 

(1) Concerning  investment  projects  in  general,  Poland  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
investment  capital  available  to  small

the  shortage  of 
enterprises.

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principle, fall below a threshold of ECU 2 to 3 million, in
particular  in  the  case  of  infrastructure  projects.  If  these
principles lead to a situation where Poland 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 
facility.  No
subsequent  compensation  of  this  amount  will  be  made.

infrastructure 

large 

scale 

the 

The  Government  of  Poland  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  Poland  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 

a 

of 

policy 

pursue 

In  cooperation  with  the  Government  of  Poland,  the
further
Commission  will 
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  Poland  where  responsibility  is  shared
along  the  lines  of  the  relationship  existing  with  the
Member  States  for  implementing  the  Structural  Funds.

respect  of  and  compatibility  with  the  basic  provisions  of
the European Community’s public procurement rules and
its  Financial  Regulation,  including  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  in  the  individual  financing  memoranda.

individual 

jointly  with 
in 

the  Commission 
the 

The  monitoring  of  programme  implementation  shall  be
through
carried  out 
procedures  established 
financing
memoranda.  In  order  to  ensure  effective  monitoring  of
implementation 
Phare
assistance 
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 Poland including implementation of
the  Accession  Partnership.

in 

the  appropriate 

The relevant sections of the Accession Partnership will be
discussed 
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.

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  Poland,  in  particular
in  the  field  of  investment.  The  Commission’s  decision  on
this  matter  will  be 
inter  alia,
taken 
examination  of  the  Polish  national  procurement  law  for

following, 

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  Poland  in
meeting  the  objectives  set  out  in  this  partnership.

thereafter.  These 

reviews  will 

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ANNEX

Poland  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 maintain the freedom of the press and the rights
of  journalists,  to  improve  the  treatment  of  claims  for  compensation  regarding  property  seized  and  to
intensify  the  fight  against  corruption.

Particular  measures  must  be  taken  to  enhance  the  protection  of  privacy  and  the  inviolability  of  the  home.
The  ‘lustration  laws’  and  their  application  remains  an  important  issue.

2.

Economic criteria

The liberalisation process should be completed by removing commercial monopolies while strengthening the
regulatory  bodies  set  up  to  ensure  the  good  functioning  of  the  market.  Particular  efforts  are  needed  to
complete the restructuring and privatisation of State owned enterprises, in particular in the steel, energy and
telecommunications  sectors.

Special  attention  must  be  paid  to  preserving  macroeconomic  stability  and  avoiding  overheating  of  the
economy.  The  maintenance  of  the  current  stability  orientated  monetary  and  exchange  rate  policy  and  the
implementation  of  the  new  law  on  the  Central  Bank  will  play  an  important  role.  Particular  attention  is
required in the completion of reform in the pension and social security systems. Continued attention is also
required  in  reforming  the  agriculture,  banking  and  financial  services  sectors,  and  in  the  alignment  of  trade
policy.

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   —   efforts  must  be  made  to  accelerate  law  reform  in  the  field  of  public
procurement, for instance as regards the utilities sector, and the White Paper Stage II measures. In the field
of  intellectual  and  industrial  property,  special  attention  must  be  paid  to  legislation  and  effective
implementation.  As  regards  Company  Law  full  compatibility  with  the  first  and  12th  Directives  must  be
ensured. Improvements must be made in the protection of personal data, notably by the establishment of an
independent supervisory authority. Efforts are required to improve the application of the Europe Agreement
in  the  field  of  trade.

F r e e   m o v e m e n t   o f   g o o d s   —   Poland  needs  to  accelerate  work  to  adopt  framework  legislation  which
will  enable  it  to  implement  the  European  Union  system.  Standardisation  and  conformity  assessment
infrastructures  need  to  be  strengthened  and  adoption  of  the  new  approach  Directives  take  place.
Negotiations  for  a  European  Conformity  Assessment  Agreement  should  accelerate  this  process.  As  regards
other  sectoral  legislation,  efforts  should  be  made  to  complete  the  harmonisation  of  Directives  on  motor
vehicles  and  chemicals  and  to  improve  the  compatibility  of  laws  on  pharmaceuticals  and  foodstuffs.  A
market surveillance mechanism will have to be set up to become fully operational, once technical legislation
is  fully  harmonised.

F r e e   m o v e m e n t   o f   c a p i t a l   —  restrictions concerning acquisition of real estate by non-residents must
be  clarified  and  where  necessary  aligned.

F r e e   m o v e m e n t   o f   s e r v i c e s   —   banking  legislation  must  be  reviewed  and  amended  where  necessary,
to  fulfil  European  Union  requirements.

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F r e e   m o v e m e n t   o f   p e r s o n s   —   as  regards  mutual  recognition  of  professional  qualifications,  efforts
must be made to ensure the necessary legislative and enforcement measures. Further efforts must be made to
ensure  the  necessary  legislative  and  enforcement  measures  as  regards  the  coordination  of  social  security
schemes.

Competition

The  Competition  Act  needs  to  be  further  adjusted,  in  particular  to  improve  merger  control  and  to
strengthen the powers of the Office for Competition. 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  review  of  all  existing  aid  measures  should  be  undertaken  and  those  measures  which  are  not
compatible  with  the  Europe  Agreement  must  be  modified  or  abolished  (including  incompatible  State  aid
granted to firms operating in the Special Economic Zones). New aid measures must be effectively monitored
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

Education,  training  and  youth

In order to meet the needs of the market economy and to achieve progress in competitiveness and quality of
production, efforts must be made to ensure considerable investment in curriculum reform, teacher training,
text  books,  equipment  and  buildings.

Research  and  technological  development

Improvements  must  be  made  in  the  level  of  innovation  in  the  economy  as  well  as  in  the  links  between
research  institutes,  industry  and  small  and  medium-sized  enterprises.

Telecommunications

Substantial changes in both policy and legislation will be needed to secure compliance with European Union
Directives,  in  particular  to  create  a  properly  constituted  regulatory  authority  and  to  remove  restrictions  on
foreign  participation  in  the  Polish  operating  and  manufacturing  markets  for  telecommunications.  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  will  need  to  be  amended  in  particular  with  regard  to  the  questions  of  freedom  of
reception,  promotion  of  European  works,  certain  advertising  rules  and  the  protection  of  minors.

3.3. Economic  and  fiscal  affairs

Economic  and  monetary  union

Efforts  to  reduce  inflation  by  a  credible  monetary  and  exchange  rate  policy  should  be  continued.  The
restructuring  of  the  financial  sector  should  be  completed.

Taxation

Adjustments must be made to VAT legislation in accordance with European Union requirements to ensure a
consistent application. In some respects, existing legislation discriminates against imports. Particular efforts
need to be made as regards the scope of exemption from VAT, the VAT refund scheme for foreign taxable
persons,  the  VAT  rate  structure  and  the  right  of  deduction  of  VAT  charged  on  international  services.

Significant discrepancies between the Polish excise regime and the European Union requirements need to be
addressed.  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  with  the  Community  model.

Statistics

Some  effort  is  still  needed  in  the  field  of  the  establishment  of  registers,  and  regarding  regional  statistics.

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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.).  Further  efforts  are  required  to  restructure  certain
industrial  sectors  such  as  steel,  where  a  viable  restructuring  plan  is  needed  and  coal.

Agriculture

Substantial  efforts  must  be  made  to  ensure  the  alignment  of  Polish  legislation  with  European  Union
requirements  to  ensure  that  a  coherent  structural  and  rural  development  policy  is  capable  of  dealing  with
the  problem  of  Poland’s  agricultural  structure.  The  implementation  and  enforcement  of  veterinary  and
phytosanitary  requirements  and  the  upgrading  of  establishments  to  meet  European  Community  standards
needs  attention,  particularly  with  regard  to  the  inspection  and  control  arrangements  for  protecting  the
European Union external borders. The strengthening of the administrative structures to ensure the necessary
capacity  to  implement  and  enforce  the  policy  instruments  of  the  common  agricultural  policy  requires
attention.  Efforts  are  needed  regarding  restructuring  of  the  agro-food  sector  to  improve  its  competitive
capacity  and  the  upgrading  of  certain  food  processing  establishments  (milk  and  meat  sectors)  and  certain
testing  and  diagnostic 
the
implementation and enforcement of the policy instruments of the common agricultural policy including the
import  arrangements.  The  agri-food  sector  must  be  further  restructured  to  ensure  its  competitive  capacity.

facilities.  Administrative  structures  must  be  strengthened 

to  ensure 

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  and  State  interventions.  Special
attention must be paid to restructuring of the solid fuels sector, energy efficiency, environmental norms, and
to  emergency  preparedness  including  the  building  up  of  mandatory  oil  stocks.

Transport

Efforts  must  be  made  to  ensure  the  necessary  legislation  and  effective  implementation  in  road  haulage
(access  to  the  profession,  weights  and  dimensions,  safety  rules,  road  tax),  the  maritime  sector  (safety),  and
air transport. Financial transparency must be provided in the rail sector. Steps must be taken to ensure the
future  extension  of  the  trans-European  networks.  Inspection  bodies,  in  particular  for  transport  safety,
should  be  strengthened.  At  a  national  level  there  is  a  need  to  develop  specific  strategies  for  transport
infrastructure  development  and  financing.

Small  and  medium-sized  enterprises

Steps  must  be  taken  to  further  refine  and  increase  the  coherence  of  small  and  medium-sized  enterprise
(SME)  policy,  to  simplify  legislation  and  the  administrative  environment  to  make  it  more  SME-friendly,  to
strengthen  support  infrastructures,  to  improve  the  tax  environment  and  to  develop  SMEs’  access  to
financing.

3.5. Economic  and  social  cohesion

Employment  and  social  affairs

Legislation  must  be  realigned  with  European  Union  requirements  in  such  areas  as  occupational  health  and
safety,  labour  law  and  equal  opportunities.  Social  reform  must  be  pursued  while  investments  in  the  public
health  system  need  to  be  significantly  enhanced.  Active  labour  market  policies  must  be  further  developed
and  jointly  reviewed  as  preparation  for  participation  in  European  Union  coordination.  An  active,
autonomous social dialogue and social protection must be developed. The administrative structures must be
strengthened  to  ensure  effective  implementation  of  legislation.

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Regional  policy  and  cohesion

A  differentiated  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.  Particular  efforts  must  be  made  to  achieve  full  European  Union
compatibility  of  the  waste,  water  and  nature  legislation  and  to  ensure  the  transposition  of  the  framework
Directives  dealing  with  air,  waste,  water  and  the  Integrated  Pollution  Prevention  and  Control  Directive.
Investments  must  be  strengthened,  in  particular  as  regards  large  combustion  plants,  the  water  sector,
industry, urban air pollution, solid and hazardous waste management and management of municipal waste.
A considerable effort must be made to develop adequate implementation and enforcement structures. Public
awareness  with  regard  to  the  environment  must  be  stimulated.

Consumer  protection

Legislation  must  be  amended  in  such  areas  as  protection  of  economic  interests,  sales  away  from  business
premises, distance selling, package travel, timeshare property, unfair terms of consumer contracts, consumer
credit,  misleading  advertising,  indication  of  prices  and  product  safety.  A  strong  and  independent  consumer
movement,  sustained  by  public  authorities,  will  need  to  be  developed.

3.7.

Justice  and  home  affairs  (JHA)

Progress  concerning  border  management  and  control  must  be  continued.  The  effective  implementation  of
the  Geneva  Convention  and  the  1967  Protocol  as  well  as  the  Law  of  Refugees  must  be  ensured.  The  fight
against  organised  crime  must  be  intensified  including  in  the  fields  of  production  and  trafficking  in  drugs,
trafficking  in  women,  money  laundering,  smuggling  of  and  trafficking  in  stolen  cars  and  arms.  Anti-drugs
legislation and systems must be further enhanced. Steps must be taken to ensure ratification of international
conventions  in  the  JHA  field.  Particular  attention  must  be  paid  to  ensuring  the  necessary  resources  for
institutional  development  including  improved  coordination  between  responsible  services.  Corruption  needs
to  be  addressed  and  accountability  and  technical  effectiveness  enhanced.  The  functioning  of  the  judiciary
should  be  improved.  Cooperation  between  services,  including  those  responsible  for  combating  organised
crime needs to be improved. Important work remains to be done on issues such as aliens law, and the visa
system  with  regard  to  the  NIS  and  other  non-associated  neighbours.

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.

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  with  that  of  the  European  Community  and  fully  applied.  The
organisation  and  duties  of  staff  must  be  aligned  with  those  of  a  modern  customs  administration.  A  major
effort  must  be  made  to  ensure  that  the  customs  services  are  fully  conversant  with  the  legislation.  An  effort
must be made to introduce 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 Poland has with countries other than European Union Member States at the time
of  accession.

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3.9. Financial  questions

The  necessary  financial  management  and  control  mechanisms  must  be  established  to  ensure  satisfactory
implementation  of  Community  policies.  The  existing  accounting  system  as  well  as  the  customs  system
should  be  amended  to  ensure  the  efficient  administration  of  the  ‘own  resources’  system.  The  reliability  of
the  national  accounts  must  be  ensured  with  a  view  to  the  accurate  calculation  of  the  GNP  resource.

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  Poland’s  administrative  structures  in  virtually  all  European  Union  relevant  sectors.  Special
efforts  must  be  made  to  strengthen  the  authorities  ensuring  the  correct  application  of  Community
requirements in the Single Market and the customs authorities. The regulatory and monitoring bodies must
be  strengthened  in  such  fields  as  competition,  securities,  insurance,  banks,  money  laundering,  public
procurement,  consumer  protection,  transport  safety  as  well  as  standards  and  certification,  the  labour
inspectorate,  veterinary  and  phytosanitary  controls  and  food  control.

Increased  efforts  must  be  made  for  the  upgrading  of  staff  qualifications  on  European  Union-related  issues
and efficient public management in general. This must include the elaboration of a comprehensive national
training  strategy  for  civil  servants  and  the  impartial  implementation  of  the  Civil  Service  Act.

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.