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

29.6.98

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SLOVAKIA:  ACCESSION  PARTNERSHIP

(98/C 202/09)

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
Slovakia  as  soon  as  it  has  made  sufficient  progress  in
satisfying  the  conditions  of  membership  defined  by  the
European  Council  in  Copenhagen.  This  recommendation
derives  from  the  analysis  contained  in  the  opinion,  in
which  the  Commission  is  of  the  view  that  Slovakia  does
not  fulfil  in  a  satisfying  manner  the  political  conditions
set  out  by  the  European  Council  in  Copenhagen  but
could  satisfy  the  economic  criteria  in  the  medium  term
and 
is  firmly  committed  to  taking  on  the  acquis,
particularly concerning the internal market even if further
progress is still required to ensure its effective application
of  the  acquis.

The  Europe  Agreement  will  remain  the  basis  for  the
European  Union’s  relations  with  Slovakia.  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, 

that 

At  its  meeting  in  Luxembourg  in  December  1997  the
European  Council 
the  Accession
decided 
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  Slovakia  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  Slovakia’s
application  for  membership  of  the  European  Union,  the

financial  means  available  to  help  Slovakia  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  Slovakia,  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

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of priorities, each to be accompanied by precise objectives
to  be  set  in  collaboration  with  the  countries  concerned,
the  achievement  of  which  will  condition  the  degree  of
assistance  granted  and  the  progress  of  the  negotiations
under  way  with  some  countries  and  the  opening  of  new
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  Slovakia  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.

Slovakia  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  Slovakia  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  Slovakia.

4.1. Short  term  (1998)

local  elections 

— Political  criteria:  free  and  fair  presidential,  national
and 
in  1998;  ensuring  effective
opposition  participation  in  parliamentary  oversight
committees  and  supervisory  boards;  the  adoption  of
legislative  provisions  on  minority  language  use  and
related  implementing  measures.

— Economic  reform:  establishment  of  medium-term
joint  assessment
economic  policy  priorities  and 
within  the  framework  of  the  Europe  Agreement;
implementation  of  policies  aimed  at 
tackling
imbalances  and  sustaining
internal  and  external 
structural
macroeconomic 
reforms,  and  on  privatisation  and  restructuring  of
enterprises,  finance,  banking,  and  energy  intensive
heavy industries.

stability;  progress  on 

— Reinforcement  of 

institutional  and  administrative
capacity: including  the  adoption  of  a  civil  service  law
and  development  of  public  administration  reform
strategy  with  emphasis  on  the  strengthening  of
administration  dealing  with  European  Union
institutional  strengthening 
in  the  area
accession, 
of 
and  phytosanitary
veterinary 
administrations, particularly as regards facilities at the
external  borders,  beginning  to  set  up  structures
needed  for  regional  and  structural  policy.

environment, 

— Internal  market: 

including  continued 

legislative
alignment  in  the  fields  of  standards  and  certification,
State  aids  (progress  towards  adoption  of  a  law),
intellectual  property  (alignment  of  legislation),  public
procurement  (including  transparency),  bankruptcy
and  agriculture  (veterinary  and  phytosanitary  fields),
establishment  of  standardisation  and  conformity
assessment  structures.

— 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  steps  to  ensure  respect  for
the  Constitution  and  rights  of  the  opposition,  to
guarantee  the  independence  of  the  judiciary,  and  to
foster  and 
the
institutions of democracy, NGOs, independence of the
media  (in  particular  radio  and  television)  and  the
policies  and 
institutions  protecting  the  rights  of
minorities.

functioning  of 

strengthen 

the 

— 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  Slovakia  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:  the  State  audit  office,  financial  control  and
functions,  customs,  banking  and
internal  audit 
financial  market 
regional
development  institutional  structures  and  budgetary
judicial
mechanisms; 

improved  operation  of  the 

supervisory  bodies, 

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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),  strengthen  the  nuclear  safety
authority,  reform  of  customs  and  tax  administrations
to  ensure  readiness  to  apply  the  acquis  and  the
reinforcement  of  food  control  administration.

— Internal  market: 

including 

further  alignment  of
legislation  in  the  fields  of  competition  (anti-trust
and  State  aids  monitoring  and 
transparency),
indirect  taxation,  intellectual  property  (enforcement),
financial  services,  data  protection  and  audio-visual,
reinforcement  of  standardisation  and  conformity
assessment  structures,  establishment  of  a  market
surveillance  system  and  alignment  of 
technical
legislation  on 
industrial  products,  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:  further  development  and
strengthening  of  JHA  institutions  (with  a  view  in
particular to ensuring the accountability of the police,
and  the  independence  of  the  judiciary),  to  further
develop  effective  border  management; 
fight
organised  crime  (in  particular  money  laundering,
drugs  and 
in  human  beings)  and
corruption,  and  to  align  visa  policy  with  that  of  the
European  Union  and  to  complete  alignment  to
international conventions, improve capacity to handle
asylum  and  migration  questions,  notably  in  view  of
the  Schengen  acquis.

trafficking 

to 

— 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.  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.

— Energy: 

long-term
implementing  a  comprehensive 
energy strategy based on efficiency and diversification
which forsees the alignment with and implementation
of  European  Community  energy 
legislation,  the
completion  of  the  Mochovce  nuclear  power  station
according  to  internationally  agreed  safety  principles,
and  implementation  of  a  realistic  programme  for  the
closure  of  the  Bohunice  plant.

— 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 

as 

policies 

preparation 

employment 

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

legislation, 

safety 

— 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  air,  water  and  the  waste  sector  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:  establishment  of  a
legal, administrative and budgetary framework for an
integrated  regional  policy  in  order  to  participate  in
European  Union 
after
membership.

structural  programmes 

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  95  million.  Subject  to  the  approval  of  the
Phare  budget  for  the  remaining  period,  the  Commission
will  confirm  the  allocations  for  1998  and  1999.  In
addition,  Slovakia 
is  eligible  for  support  from  the
‘catch-up’  facility  envisaged  for  1998  to  finance  projects
relating 
to  privatisation/restructuring,  promotion  of
foreign direct investment and the fight against corruption.
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
Slovakia, the EIB and international financing institutions,
in  particular  the  EBRD  and  World  Bank,  with  a  view  to
facilitating  the  co-financing  of  projects  relating  to

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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  Slovakia  will
have  access  to  funding  from  multi-country  programmes
directly  related  to  the  acquis.

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  Slovakia  in  which
Slovakia  will  undertake  to  meet  a  number  of  the
priorities  identified  in  this  Accession  Partnership  and  the
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.

In  addition,  the  subsequent  allocation  of  financial
assistance will be closely tied to the respect by the Slovak
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
Slovakia  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 

covering 

— Investment  support  (around  70 %),  in  order  to  make
the  necessary  investments  possible  for  the  adaptation
of  Slovak  infrastructure  to  the  Community  acquis.
This  support  will  concentrate  on:  (i)  structural
agricultural
actions, 
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

particular 

in 

and  telecommunications;  (iii)  co-financing  of  large
scale  infrastructure (1)  and  (iv)  small  and  medium-
sized  enterprises  development (2).

5.2. Role  of  international  financial  institutions

Cooperation  between  Slovakia  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
its  commitments  under  the  Europe
by  Slovakia  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

for 

The  provision  of  financial  assistance  to  Slovakia  will
depend  on  the  maturity  of  projects  proposed  by  the
Slovak  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

inclusion 

in  a 

(1) Concerning  investment  projects  in  general,  Slovakia  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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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
particular  in  the  case  of  infrastructure  projects.  If  these
principles  lead  to  a  situation  where  Slovakia  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 Slovakia 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  between  the  general  accession  process  and  the
programming  of  the  Community  financial  assistance.

investment  promotion  and 

The  Government  of  Slovakia  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
increase
decentralised 
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  Slovakia,
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  Slovakia  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 Slovakia, in particular
in  the  field  of  investment.  The  Commission’s  decision

on  this  matter  will  be  taken  following,  inter  alia,
examination  of  the  Slovak  national  procurement  law  for
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 

implementation  of  assistance  under 

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

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  Slovakia  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.

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 Slovakia in
meeting  the  objectives  set  out  in  this  partnership.

thereafter.  These 

reviews  will 

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ANNEX

Slovakia 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

Although  established  as  a  parliamentary  democracy  the  operation  of  Slovak  institutions  is  characterised  by
the fact that the Government does not sufficiently respect the powers devolved by the Constitution to other
bodies  or  the  rights  of  the  opposition.  The  treatment  of  the  Hungarian  minority  should  be  improved  and
the  situation  of  the  Roma  needs  attention  from  the  authorities.  Further  steps  are  therefore  necessary  to
ensure respect for the Constitution and rights of the opposition, to foster and strengthen the functioning of
the  institutions  of  democracy,  NGOs,  an  independent  media  (especially  in  TV  and  radio)  and  the  policies
and institutions protecting the rights of minorities. Substantial efforts will have to be made to provide better
guarantees  of  the  independence  of  the  judicial  system  and  of  satisfactory  conditions  for  its  operation.  The
fight  against  corruption  also  needs  to  be  made  more  effective.

2.

Economic criteria

In order to guarantee economic stability, macroeconomic policies need to be sufficiently restrictive, and they
need  to  be  better  coordinated.  Structural  problems  within  the  Slovak  economy  (the  bad  debt  problem,  the
slow pace of enterprise and financial sector restructuring and the lack of foreign direct investment) need to
be  tackled  in  a  timely  and  transparent  way.  There  is  a  need  for  more  transparent  and  market  based
economic  policies.  Further  steps  should  be  taken  to  facilitate  enterprise  restructuring  and  foreign  direct
investment.  The  financial  sector  needs  to  be  reinforced  and  progress  is  needed  in  the  regulation  of  the
bankruptcy  process  and  capital  markets.  The  Slovak  Price  Law  and  the  Enterprise  Revitalisation  Act
represent  a  major  step  back  from  market  mechanisms  and  should  be  reviewed.

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   —   major  efforts  are  needed  to  strengthen  implementation  and  enforcement
structures  in  public  procurement  (in  particular  the  utilities  sector  and  review  procedures),  intellectual  and
industrial  property  rights  and  data  protection.

F r e e   m o v e m e n t   o f   g o o d s   —  alignment with the European Union system needs to accelerate. Emphasis
needs to be put on improving the framework legislation as well as establishing independent standardisation
and conformity assessment infrastructures. New approach Directives need to be adopted. Approximation of
other  sectoral  Directives  (in  particular,  foodstuffs,  motor  vehicles  and  pharmaceuticals)  is  necessary.  Then,
once the sectoral legislation is fully harmonised, a market surveillance mechanism will have to be set up to
become  fully  operational  in  the  longer  term.

F r e e   m o v e m e n t   o f   s e r v i c e s   —   further  efforts  are  needed  to  align  legislation  in  insurance,
accountancy and auditing. Although significant progress towards legislative alignment has been achieved in
the  areas  of  company  law,  banking,  securities  and  free  movement  of  capital,  further  work  is  needed  to
achieve  full  alignment  with  European  Community  rules  and  requirements  in  these  areas.

F r e e   m o v e m e n t   o f   p e r s o n s   —   amendments  to  the  current  legislation  on  foreigners  and  on
employment  of  foreigners  will  have  to  be  adopted  to  bring  legislation  fully  into  line  with  European  Union
principles  on  free  movement  of  workers.  Concerning  mutual  recognition  of  diplomas,  further  adjustments
are needed to bring the legislation fully in line with the acquis.  Further  efforts  must  be  made  to  ensure  the
necessary  legislative  and  enforcement  measures  as  regards  the  coordination  of  social  security  schemes.

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Competition

Approximation  of  legislation  in  the  field  of  anti-trust  should  be  completed.  In  the  field  of  State  aid,  the
inventory  should  cover  all  existing  aid  which  encompasses  existing  State  aid  granted  by  all  granting
authorities, including aid granted under the Revitalisation Act. This inventory must be continuously updated
in  accordance  with  Community  practice.  A  national  legal  framework  on  State  aid  which  regulates  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. The monitoring authority on State aid needs to have the power, sufficient and qualified staff and
procedures  and  practical  tools  to  effectively  monitor  all  new  aid  measures  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

Further  reforms  are  necessary  to  achieve  a  qualitative  improvement  of  the  Slovak  education  system  at  all
levels.  With  a  view  to  the  adaptation  of  the  workforce  to  the  ongoing  process  of  economic  restructuring,
and given the need to ensure compatibility of standards with those in the European Union Member States,
continued  reform  of  the  vocational  education  system  is  of  importance.

Research  and  development

The  legal  and  financial  framework  for  research  and  development  needs  to  be  consolidated  in  order  to
stabilise  the  sector  and  give  it  a  clear  perspective  for  future  development.

Telecommunications

Important decisions are needed to establish and implement a satisfactory policy for the telecommunications
sector.  Far  reaching  new  legislation  is  needed  to  secure  compliance  with  European  Union  Directives,  in
particular  to  create  a  properly  constituted  regulatory  authority.  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

Existing Slovak audiovisual legislation will need to be amended in particular with regard to the promotion
of  European  and  independent  production.

3.3. Economic  and  fiscal  affairs

Economic  and  monetary  union

Central  Bank  legislation  needs  to  be  made  fully  compatible  with  Community  rules  and  the  banking  sector
needs  to  be  restructured,  in  line  with  market  economy  principles  and  practices.

Taxation

Particular  efforts  are  needed  as  regards  the  VAT  rate  structure  and  the  VAT  refund  scheme  to  foreign
taxable  persons.  The  significant  discrepancies  between  the  Slovak  excise  regime  and  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  on  the  Community  model.

Statistics

Efforts will be needed to address the issues of transparency, confidentiality and dissemination and to register
improvement  in  national  and  regional  accounts  and  the  business  register.  Improvements  are  also  needed  in
the  regional  statistical  system  following  the  reform  of  the  territorial  division  of  the  country.

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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  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  needed  to  restructure  certain  industries,
especially  those  which  are  energy  intensive.

Agriculture

Further  alignment  to  the  Community  acquis  is  still  necessary.  Particular  efforts  are  needed  in  relation  to
implementation  and  enforcement  of  veterinary  and  phytosanitary  requirements  and  upgrading  of
establishments  to  meet  Community  standards  (this  is  particularly  important  with  regard  to  the  inspection
and  control  arrangements  for  protecting  the  European  Union  external  border);  strengthening  of  the
administrative  structures  to  ensure  the  necessary  capacity  to  implement  and  enforce  the  instruments  of  the
common  agricultural  policy,  and  further  substantial  restructuring  of  the  agro-food  sector  to  improve  its
competitive capacity.

Energy

Efforts need to be stepped up in particular with regard to compliance with Community energy legislation. In
particular,  matters  such  as  the  adjustment  of  monopolies  including  import  and  export  issues,  access  to
networks,  energy  pricing,  emergency  preparedness  including  the  building  up  of  mandatory  oil  stocks,  State
interventions  in  the  solid  fuels  sector,  and  the  development  of  energy  efficiency  and  fuel  quality  standards
need  to  be  addressed.  Nuclear  safety  requires  continued  particular  attention.  Safety  standards  should  be
tackled appropriately and realistic programmes implemented quickly. Longer term solutions for waste need
attention.  The  independence  of  the  safety  authority  should  be  supported.

Transport

Efforts must be made to ensure the adoption of legislation and its effective implementation in regard to road
haulage  (particularly  market  access,  safety  standards  and  taxation)  and  railways.  Steps  must  be  taken  to
facilitate investment in TENS. At a national level there is a need to develop specific strategies for transport
infrastructure  development  and  financing.  Slovak  administrative  structures,  including  inspection  bodies,
should  be  significantly  strengthened  at  all  levels.

Small  and  medium-sized  enterprises

Steps  need  to  be  taken  to  simplify  legislation  and  the  administrative  environment  to  make  it  more  SME
friendly,  strengthen  the  support  infrastructure,  improve  the  tax  environment  and  develop  SME  access  to
financing  and  their  ability  to  penetrate  new  markets.

3.5. Economic  and  social  cohesion

Employment  and  social  affairs

Social  reforms  need  to  be  further  developed,  the  social  dialogue  needs  to  be  ameliorated  and  the  health
system  to  be  improved.  Slovakia  needs  to  make  substantive  progress  in  the  fields  of  health  and  safety  at
work and labour law to ensure alignment with European Union standards. Efforts to effectively implement
the  acquis  need  to  be  continued.

Regional  policy  and  cohesion

A  comprehensive  differentiated  policy  addressing  regional  disparities  should  be  introduced.  The  Slovak
Republic’s  administrative  capacity  to  manage  integrated  regional  development  programmes  needs  to  be
improved. Major efforts are needed to ensure that appropriate administrative and budgetary procedures are
in  place  to  facilitate  the  application  of  Community  rules  and  the  effective  use  of  funds  from  Community
structural  policies  after  membership.

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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 Slovak environmental accession strategy should be finalised. Particular
attention  should  be  given  to  the  transposition  of  framework  Directives  dealing  with  air,  waste,  water  and
the  Integrated  Pollution  Prevention  and  Control  Directive  (IPPC),  as  well  as  the  establishment  of  financing
strategies  for  legislation  in  the  water,  air,  and  waste  sectors  requiring  major  investments.  A  considerable
effort  must  be  made  to  ensure  implementation  of  the  environmental  legislation  and  to  develop  effective
enforcement  structures.  A  sustained  high  level  of  investment  and  considerable  administrative  effort  will  be
needed.  Public  awareness  should  be  stimulated.

Consumer  protection

Further  effort  is  required  to  reach  full  compatibility  with  European  Community  Directives  on  general
product  safety,  the  indication  of  prices  and  misleading  advertising,  consumer  credit,  unfair  contract  terms,
package  travel,  sales  away  from  business  premises  and  timeshare.  A  strong  and  independent  consumer
movement,  sustained  by  public  authorities,  will  need  to  be  developed.

3.7.

Justice  and  home  affairs  (JHA)

Some  important  gaps  need  to  be  filled  in  Slovakia’s  legislation.  The  independence  of  the  judiciary  needs  to
be ensured. Reforms will have to be undertaken, notably in the development of visa policy toward the NIS,
border  management  and  migration  control  and  extradition.  The  fight  against  organised  crime  must  be
strengthened, including the fight against trafficking in drugs, human beings, arms, nuclear materials, stolen
cars,  currency  and  cultural  artefacts.  Racketeering  and  money  laundering  need  to  be  addressed.  Particular
efforts  are  needed  to  ensure  police  accountability  and  that  corruption  is  effectively  tackled  in  JHA
institutions.

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  this  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  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  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 the Slovak Republic has with countries other than European Union Member States at the time
of  accession.

3.9. Financial  questions

The  necessary  financial  management  and  control  mechanisms  for  public  expenditure,  with  provisions  to
fight fraud, must be established to ensure satisfactory implementation of Community policies, especially for
agriculture  and  the  Structural  Funds.  Major  efforts  are  needed  to  strengthen  financial  control  and  audit
functions.  Approximation  of  legislation  is  moreover  needed  to  allow  the  system  of  ‘own  resources’  to  be
introduced,  with  satisfactory  provision  for  accounting.

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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  Slovakia’s  administrative  structures  in  virtually  all  European  Union  relevant  sectors.  Special
efforts  must  be  made  to  strengthen  the  authorities  ensuring  the  correct  application  of  internal  market
requirements,  particularly  as  concerns  standards  and  certification,  intellectual  property  and  public
procurement. Regulatory and monitoring bodies must be strengthened in fields such as State aid, securities,
insurance,  banks,  capital  markets,  money 
laundering,  veterinary  and  phytosanitary  control,  food
administration,  environment,  transport  safety,  telecommunications,  consumer  protection  and  the  labour
market. In some areas, such as data protection and capital markets, there is a need to establish independent
authorities.  In  the  area  of  justice  and  home  affairs,  the  effective  administration  of  the  acquis  will  require
improvements  to  police  accountability,  the  independence  of  the  judiciary  and  the  strengthening  of  the
institutional  framework.

For all levels of the civil service there is an urgent need to upgrade professional capacities, reinforce ethical
standards  and  promote  a  corporate  sense  of  public  service.  Language  skills  will  have  to  be  considerably
improved  in  order  to  facilitate  contacts  with  European  institutions  as  well  as  to  allow  for  faster  and  more
direct  access  to  documents  relating  to  European  integration.

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.