1999/857/EC: Council Decision of 6 December 1999 on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with the Republic of Bulgaria
Date: 1999-12-06
Institutions: Council of the European Union
Subjects: Bulgaria, accession to the European Union, aid system, cooperation policy

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COUNCIL DECISION

of 6 December 1999

on the principles, priorities, intermediate objectives and conditions contained in the Accession
Partnership with the Republic of Bulgaria

(1999/857/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

(6)

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

for membership and identified a number of

tions
priority areas for further work;

in order to prepare for membership, the Republic of
Bulgaria should update its national programme for the
adoption of the acquis; this programme should set out a
timetable for achieving the priorities and intermediate
objectives established in the Accession Partnership,

Having regard to the proposal from the Commission,

HAS DECIDED AS FOLLOWS:

Whereas:

(1)

(2)

(3)

(4)

(5)

the Luxembourg European Council
the
Accession Partnership is a new instrument and the key
feature of the enhanced pre-accession strategy;

stated that

Regulation (EC) No 622/98 sets out that the Council is
to decide, by a qualified majority and following a
proposal from the Commission, on the principles, prior-
ities, intermediate objectives and conditions contained in
the individual Accession Partnerships, as
they are
submitted to each applicant State, as well as on subse-
quent significant adjustments applicable to them;

Community assistance is conditional on the fulfillment
of essential elements, and in particular on the respect of
the commitments contained in the Europe Agreements
and on progress towards fulfillment of the Copenhagen
the
criteria; where an essential element
Council, acting by a qualified majority on a proposal
from the Commission, may take appropriate steps with
regard to any pre-accession assistance;

lacking,

is

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

the 1999 Commission's Regular Report presented an
objective analysis on the Republic of Bulgaria's prepara-

Article 1

In accordance with Article 2 of Regulation (EC) No 622/98, the
principles, priorities,
intermediate objectives and conditions
contained in the Accession Partnership for the Republic of
Bulgaria are set out in the Annex hereto, which forms an
integral part of this Decision.

Article 2

The implementation of
the Accession Partnership shall be
examined in the Europe Agreement bodies and by the appro-
priate Council bodies to which the Commission shall report
regularly.

Article 3

This Decision shall take effect on the third day following that
of its publication in the Official Journal of the European Communi-
ties.

Done at Brussels, 6 December 1999.

For the Council

The President

T. HALONEN

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

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ANNEX

BULGARIA: 1999 ACCESSION PARTNERSHIP

1. OBJECTIVES

The purpose of the Accession Partnership is to set out in a single framework the priority areas for further work
identified in the Commission's 1999 Regular Report on the progress made by Bulgaria towards membership of the
European Union, the financial means available to help Bulgaria implement these priorities and the conditions which
will apply to that assistance. This Accession Partnership provides the basis for a number of policy instruments which
will be used to help the candidate States in their preparations for membership. These include, inter alia, the revised
National Programme for the adoption of the acquis, the Joint Assessment of medium-term economic policy
priorities, the Pact against organised crime as well as the National Development Plans and other sectoral plans
necessary for the participation in Structural Funds after membership and for the implementation of ISPA and Sapard
before accession. Each of these instruments is different in nature and is prepared and implemented according to
specific procedures. They are not an integral part of this Partnership but the priorities they contain will be
compatible with it.

2.

PRINCIPLES

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

— that the candidate State 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 States to adjust their adminis-
trative structures to ensure the harmonious operation of Community policies after accession and at Luxembourg, it
stressed that incorporation of the acquis into legislation is necessary, but not in itself sufficient; it is necessary to
ensure that it is actually applied.

3.

PRIORITIES AND INTERMEDIATE OBJECTIVES

The Commission's Regular Reports have highlighted the extent of the efforts which still have to be made in certain
areas by the candidate States to prepare for accession. This situation requires the definition of intermediate stages in
terms of priorities, each to be accompanied by precise objectives to be set in collaboration with the States concerned,
the achievement of which will condition the degree of assistance the progress of the negotiations under way with
some States and the opening of new negotiations with the others. The priorities and intermediate objectives in the
revised Accession Partnerships ate again 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 Bulgaria can complete or take them
substantially forward by the end of 2000. The priorities listed under the medium term are expected to take more
than one year to complete although work should, wherever possible, also begin on them during 2000. The progress
made in meeting the priorities of the 1998 Accession Partnership is assessed in the 1999 Regular Report. This
assessment has been used in formulating the priorities for the current partnership.

Bulgaria submitted a revised version of its National programme for the adoption of the acquis (NPAA) on 31 May
1999. It sets out a timetable for achieving priorities and intermediate objectives, based on the first Accession
Partnership, as well as necessary administrative structures and financial resources.

issues identified in the Regular Report.

The Accession Partnership indicates the priority areas for Bulgaria's membership preparations. Bulgaria will neverthe-
less have to address all
It is also important that Bulgaria fulfils the
commitments of legislative approximation and implementation of the acquis in accordance with the commitments
made under the Europe Agreement, the screening exercise and the negotiation process. It should be recalled that
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 Regular Report, the following short and medium term priorities and
intermediate objectives have been identified for Bulgaria.

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3.1. Short-term (2000)

Political criteria:

— start implementation of the Roma framework programme and strengthen the National Council on ethnic and
demographic issues including provision of necessary financial support; implement measures aimed at fighting
discrimination (including within the public administration); foster employment opportunities and increase access
to education.

Economic criteria:

— promote competitiveness through market-based enterprise restructuring; take measures to improve the business
environment and stimulate domestic and inward investments, in particular through simplification of legal and
administrative procedures,

— ensure transparent privatisation of State-owned enterprises and banks,

— improve bankruptcy and liquidation procedures and streamline implementation,

— adopt a restructuring plan for the steel sector.

Internal market:

— public procurement: align public procurement procedures,

— intellectual and industrial property rights: align and enforce industrial property rights and trade mark legislation,

including the fight against piracy,

— data protection: adopt national

legislation and establish a monitoring body,

— free movement of goods: adopt a framework law on technical requirements implementing all new and global
approach principles; enforce the new law on standardisation and reinforce newly established infrastructure; adopt
framework laws on chemicals, foodstuffs and pharmaceuticals,

— free movement of capital: liberalise direct investment abroad and investment in foreign securities by residents;
establish a timetable for the liberalisation of the remaining restrictions on capital movements including acquisi-
tion of real estate sector,

— free movement of services: strengthen supervisory bodies,

— competition: adopt legislation on State aid; improve State aid report; establish a State aid inventory; adopt

secondary legislation on antitrust,

— taxation: align VAT legislation and develop a timetable for alignment of excise duties; ensure that new tax
measures comply with the principles of the code of conduct for business taxation; improve tax collection system
at national and regional

in particular through strengthened VAT information processing,

level,

— customs: ensure enforcement of the new customs code and its implementing provisions.

Agriculture:

— continue alignment of the veterinary and phytosanitary legislation and upgrade inspection arrangements, in

particular at future external borders,

— modernise meat and dairy plants to meet European Union hygiene and public health standards,

— establish a vineyard register.

Energy:

— implement the energy law and adopt related secondary legislation; prepare legislation by sector and related

reform plans (electricity and gas) and strengthen the regulatory bodies,

— establish a price and tariff structure leading to cost-based and transparent energy prices,

— start to implement an energy strategy with particular attention to energy efficiency; revise energy demand

forecasts on the basis of more realistic growth and energy intensity scenarios,

— adopt and implement a realistic timetable for closure and decommissioning of units 1, 2, 3 and 4 of the

Kozloduy nuclear power plant; monitor management of spent fuel and radioactive waste;

— continue strengthening the independence and technical capability of the nuclear safety authority.

Transport:

— align legislation on maritime safety.

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Employment and social affairs:

— support social partners' capacity-building efforts, notably in bipartite social dialogue, to develop and implement

the acquis,

— prepare a national strategy, with the help of the Joint Employment Policy Review, with a view to later

participation in the European employment strategy.

Environment:

— continue transposition of framework legislation in the water, air and waste sectors; prepare and implement
detailed directive-specific approximation programmes; strengthen implementation structures, particularly at the
regional

level,

— develop a plan for financing investments (directive-specific), based on estimations of costs of alignment and

realistic sources of public and private finance year-by-year,

— complete transposition and enforce the environmental

impact assessment directive.

Justice and home affairs:

— implement effective border management control systems and coordination of services to prevent illegal immigra-

tion and to enable full participation in Schengen information system,

— implement and enforce new legislative framework relating to migration and asylum procedures,

— upgrade law enforcement bodies and the judiciary (staff numbers, recruitment, training and equipment) to
continue the fight against organised crime, drug trafficking and corruption; reinforce police and customs
authorities and ensure better coordination between law enforcement bodies,

— develop a national strategy to combat corruption and strengthen capacity to deal with money laundering; ratify
the European Convention on laundering of proceeds of crime and the European Criminal Law Convention on
corruption; sign the OECD convention on bribery.

Reinforcement of administrative and judicial capacity,

including the management and control of European Union funds:

— Phare (1), ISPA (2) and Sapard (3): further develop the National Development Plan and the Rural Development
Plan; adopt the legal, administrative and budgetary framework (audit manual and audit trail) to programme and
manage ISPA and Sapard, including a mechanism for systematic environmental impact assessment and European
Union-compatible public procurement rules for projects co-financed by Community Funds; and the establish-
ment of a functioning paying agency for Sapard,

— complete legislative framework and strengthen internal and external financial control bodies including regional
control units, in particular through use of a comprehensive information technology system and clear separation
of ex-ante control and approval and internal financial control; establish ‘functional independence’ for national
internal controllers/auditors at central and local

including ‘ex-ante’ financial control,

level

— implement civil service law,

— strengthen the independence of magistrates,

including case
treatment and alternative dispute resolution mechanism; strengthen enforcement of civil and penal judgments,

judges and the efficiency of the court system,

— strengthen the capacity to assess the financial and institutional

impact of new legislation.

3.2. Medium-term

Political criteria:

— continue to implement Roma framework programme.

Economic criteria:

— maintain overall macrofinancial stability; improve competitiveness through market-based restructuring, including
small- and medium-sized enterprises; complete the privatisation process; strengthen market economy institutions;
improve the legal and regulatory framework for enterprises,

— establish an annual fiscal surveillance procedure aimed at bringing the reporting, monitoring and control of

public finances, specifically fiscal positions,

in line with European Union procedures,

— implement the steel restructuring programme,

— establish a functioning land market and finalise the land and property register.

(1) Phare = Action plan for coordinated aid to Poland and Hungary.
(2) ISPA = Instrument for Structural Policies for Pre-Accession.
(3) Sapard = Special Accession Programme for Agriculture and Rural Development.

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Internal market:

— public procurement: ensure transparent public procurement procedures at central and regional

level,

— intellectual and industrial property rights: complete alignment and implement industrial property rights (trade

marks, geographical destinations and industrial designs),

including effective border control measures,

— data protection:

implement legislation,

— free movement of goods: start implementation of new approach directives; pursue alignment of traditional

technical

legislation;

implement market surveillance system,

— free movement of persons: complete alignment of mutual recognition of diplomas,

— free movement of services: complete alignment and implement banking law, pledges law, law on securities;

guarantees and facilitation of lending and title procedures,

— competition: reinforce antitrust and State aid authorities and procedures,

— telecommunication: strengthen the capacity of the national regulatory authorities,

— taxation: full alignment of the tax acquis including the Community's transitional VAT regime; review existing
laws and ensure compatibility with the code of conduct for business taxation; strengthen administrative capacity
and control procedures including administrative cooperation and mutual assistance,

— consumer protection: continue alignment and strengthen market surveillance and enforcement authorities,

— customs: strengthen border control; develop an integrated tariff; develop operational capacities and computerisa-

tion of the customs administration; reinforce the fight against fraud and corruption.

Agriculture:

— reinforce common agricultural policy management mechanisms and administrative structures (monitor agricul-
tural markets and implement structural and rural development measures, set up bodies and control mechanisms),

— continue restructure the agrifood sector; reinforcement food control administration,

— complete system of animal

implement quality control system (hazard analysis critical control
point), animal waste treatment, residue and zoonosis control programmes, complete inspection systems on future
external borders.

identification;

Fisheries:

— develop the capacity to implement and enforce the common fisheries policy, particularly by providing the
adequate institutional resources and equipment relating to inspection and controls; set up an adequate fleet
registration system; promote quality standards.

Energy:

— align oil stock requirements and continue to improve energy efficiency,

— prepare for the internal energy market, notably the electricity and gas directives (including adaptation of energy

prices to cost levels),

— adopt and implement secondary legislation for the internal gas and electricity market,

— implement commitments on the phased closure and decommission of units 1, 2, 3 and 4 of the Kozloduy

nuclear power plant; maintain a high level of nuclear safety for Kozloduy units 5-6,

— strengthen regulatory structures for nuclear safety and radiation protection.

Transport:

— align road transport (market access, road safety and taxation), railways, maritime transport, inland waterways
(technical requirements for vessels) and air transport (in particular air safety and air traffic management).

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Employment and social affairs:

— transpose and implement European Union legislation in the fields of occupational health and safety, labour law,
equal treatment for women and men, and public health; reinforce related administrative structures and those
required for the coordination of social security,

— establish an independent guarantee fund for employees in the case of employer's insolvency.

Economic and social cohesion:

— develop national policy for economic and social cohesion; prepare for the implementation of regional develop-
ment programmes as well as Community initiatives, improve administrative procedures and establish a budgetary
system allowing for multiannual commitments and manage it according to structural funds standards, including
appraisal and evaluation.

Environment:

— complete transposition and implementation of framework and sectoral

legislation according to pre-defined

timetable,

— integrate sustainable development principles into the definition and implementation of all other sectoral policies.

Justice and home affairs:

— continue progressive alignment of visa legislation and practice with that of the European Union,

— adopt and apply the international instruments related to the fight against drug trafficking, in particular the
Agreement on illicit traffic by sea, implementing Article 17 of the United Nations Convention against illicit
trafficking in narcotic drugs and psychotropic substances,

— upgrade facilities for asylum seekers and refugees,

— further intensify international coordination and cooperation in the field of combating transborder crime,
implement

especially in the field of transiting, producing and selling drugs as well as money laundering,
anti-corruption strategy, continue fight against trafficking in women and children,

— reinforce the independence of judiciary.

Reinforcement of administrative and judicial capacity,

including the management and control of European Union funds:

— complete the establishment of a professional and impartial civil service on the basis of the civil service law;

establish a civil service management structure and ensure simplification of procedures,

— upgrade teaching of European matters, including training of judges with regard to European Community law,

— strengthen public financial control functions through the provision of adequate staff, training and equipment,

— strengthen statistical capacities.

4.

PROGRAMMING

The Phare allocation for the period 1995 to 1999 has totalled EUR 415 million. Following the agreement of the
European Council in Berlin on 24 and 25 March 1999, financial assistance to the applicant States during the period
2000 to 2006 will also comprise support for pre-accession measures for agriculture and rural development through
the pre-accession instrument Sapard (Council Regulation (EC) No 1268/1999, OJ L 161, 26.6.1999, p. 87) and a
structural instrument ISPA (Council Regulation (EC) No 1267/1999, OJ L 161, 26.6.1999, p. 73) which will give
priority to measures similar to the cohesion fund in the pre-accession period. Under these national allocations,
Bulgaria can also fund part of its participation in Community programmes including in the Fifth Research and
Technological Development Framework Programme (OJ L 26, 1.2.1999, p. 1). In addition Bulgaria will have access
to funding from multi-State programmes directly related to the acquis. Joint financing by the applicant States is
systematically required for all investment projects. Since 1998 the Commission has worked with the European
Investment Bank and international financial institutions, in particular the European Bank for Reconstruction and
Development and the World Bank, with a view to facilitating the co-financing of projects relating to pre-accession
priorities.

5.

CONDITIONALITY

Community assistance for financing projects through the three pre-accession instruments Phare, ISPA and Sapard is
conditional on respect by Bulgaria of its commitments under the Europe Agreement, further steps towards satisfying
the Copenhagen criteria and in particular progress in meeting the specific priorities of this Accession Partnership in
2000. Failure to respect these general conditions could lead to a decision by the Council on the suspension of
financial assistance on the basis of Article 4 of Regulation (EC) No 622/98.

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6. MONITORING

The implementation of the Accession Partnership is monitored in the framework of the Europe Agreement. As
underlined by the European Council in Luxembourg it is important that the institutions of the Europe Agreement
continue to be the framework within which the adoption of the acquis can be examined, in accordance with the
same procedures,
irrespective of whether or not negotiations have been opened. The relevant sections of the
Accession Partnership are discussed in the appropriate subcommittee. The Association Committee discusses 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 Phare Management Committee ensures that financing decisions under all three pre-accessions instruments,
Phare, ISPA and Sapard, are compatible with each other as well as with the Accession Partnerships as laid down in
the Coordinating Regulation (Council Regulation (EC) No 1266/1999, (OJ L 161, 26.6.1999, p. 68)).

The Accession Partnership will continue to be amended as necessary in accordance with Article 2 of Regulation (EC)
No 622/98.