2000/249/EC: Council Decision of 20 March 2000 on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with the Republic of Malta
Date: 2000-03-20
Institutions: Council of the European Union
Subjects: European Union, Malta, accession to the European Union, cooperation policy

29.3.2000

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Official Journal of the European Communities

L 78/17

COUNCIL DECISION

of 20 March 2000

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

THE COUNCIL OF THE EUROPEAN UNION,

(5)

(2000/249/EC)

In order to prepare for membership, the Republic of
Malta should prepare a 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,

HAS DECIDED AS FOLLOWS:

Article 1

In accordance with Article 1(2) of Regulation (EC) No 555/
2000 the principles, priorities,
intermediate objectives and
conditions contained in the Accession Partnership for the
Republic of Malta 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 Association Agreement bodies as appropriate
and through the competent Council bodies to which the
Commission shall report regularly.

Article 3

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

Done at Brussels, 20 March 2000.

For the Council

The President

J. GAMA

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 555/2000 of 13
March 2000 on the implementation of operations in the frame-
work of the pre-accession strategy for the Republic of Cyprus
and the Republic of Malta (1),

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Luxembourg European Council stated that
the
Accession Partnership is a new instrument and the key
feature of the enhanced pre-accession strategy.

Regulation (EC) No 555/2000 complements Regulation
(EC) No 622/98 (2) which provides that the Council is to
decide, by a qualified majority and following a proposal
from the Commission, on the principles, priorities, inter-
mediate objectives and conditions contained in the indi-
vidual Accession Partnerships, as they are submitted to
each applicant country, as well as on subsequent signifi-
cant adjustments applicable to them.

Community assistance is conditional on the fulfilment of
essential elements, and in particular on progress towards
fulfilment of the Copenhagen criteria. Where an essential
element is lacking, the Council, acting by a qualified
majority on a proposal from the Commission, may take
appropriate steps with regard to any pre-accession assis-
tance.

The 1999 Commission's regular report presented an
objective analysis on the Republic of Malta's prepara-
tions
for membership and identified a number of
priority areas for further work.

(1) OJ L 68, 16.3.2000, p. 3.
(2) Council Regulation (EC) No 622/98 of 16 March 1998 on assi-
stance to the applicant States in the framework of the pre-accession
strategy, and in particular on the establishment of Accession Part-
nerships (OJ L 85, 20.3.1998, p. 1).

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ANNEX

MALTA: 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 Malta towards membership of the
European Union, the financial means available to help Malta 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 countries in their preparations for membership. These include, inter alia the
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. 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 country relate to their ability to assume the obligations of
meeting the Copenhagen criteria which state that membership requires:

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

rights and respect for and protection of minorities,

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

market forces within the Union,

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

monetary union.

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

3.

PRIORITIES AND INTERMEDIATE OBJECTIVES

The Commission's regular reports have highlighted the extent of the efforts which still have to be made in certain
areas by the candidate countries 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 countries
concerned, the achievement of which will condition the degree of assistance granted and the progress of the
negotiations under way with some countries and the opening of new negotiations with the others. The priorities and
intermediate objectives are 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 Malta 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.

Malta is currently preparing a national programme for the adoption of the acquis (NPAA). It will set out a timetable
for achieving priorities and intermediate objectives, based on the Accession Partnership, as well as necessary
administrative structures and financial resources.

The Accession Partnership indicates the priority areas for Malta's membership preparations. Malta will nevertheless
have to address all issues identified in the regular report. It is also important that Malta fulfils the commitments of
legislative approximation and implementation of the acquis in accordance with the commitments made under the
Association Agreement and the screening exercise. 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 Malta.

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3.1. Short-term (2000)

Economic criteria

— establish a medium-term economic policy for the creation of a stable and sound macroeconomic environment,

— establish clear long-term policies on taxation and bring previously unrecorded economic activity within the tax

net,

— define an industrial restructuring policy to accelerate industrial restructuring, in particular in the agri-food and

furniture sectors, and continue privatisation.

Internal market

— intellectual and industrial property rights: adopt a new Patents Act in line with the European Patent Convention
and the EC Regulations creating a supplementary protection certificate for medicinal products and for plant
protection products,

— company law: continue alignment,

in particular transpose the 11th Directive,

— data protection: adopt national

legislation in accordance with EU directives,

— free movement of goods: eliminate levies on imports from the EU; align civil and consumer policy legislation

with the product liability directive by providing rules on the manufacturer's strict liability,

— free movement of capital: adopt a precise calendar for achieving free movement of capital, starting by disman-

tling restrictions on long-term inward and outward capital flows,

— competition: adopt a merger law; ensure application of competition rules to public undertakings with special or
exclusive rights; adopt a State aid law and set up a State monitoring authority; complete State aid inventory and
annual State aid reports,

— telecommunications: establish independent national regulatory authority,

— audiovisual: complete alignment of legislation,

— taxation: continue transposition and establish timetable for full legislative alignment of VAT and excise duties
legislation; ensure that new tax measures comply with the principles of the code of conduct for business taxation,

— customs: design a timetable for harmonisation of legislation; adopt the Combined Nomenclature including
harmonised rules of origin; implement the Single Administrative Document: reinforce institutional and adminis-
trative capacity including computerisation.

Agriculture

— prepare measures required to implement and establish administrative structures for the common agricultural

policy and rural development policies,

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

ular at future external borders.

Environment

— adopt a strategy and a detailed, directive-specific programme for the transposition, the implementation and the
enforcement of the EU environmental acquis, in particular through the development of framework and sector
legislation, together with preparation of the necessary implementing regulations and capacity building require-
ments,

— 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.

Transport

— adopt a strategy and timetable for the transposition and implementation of the acquis particularly in the field of

aviation and maritime transport (including maritime safety).

Employment and social affairs

— support social partners' capacity-building efforts to develop and implement the acquis

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Justice and home affairs

— lift the geographical reservation to the 1951 Geneva Convention in the field of asylum; boost participation in

international cooperation in the field of justice,

— adopt specific legislation on asylum and set up structures in charge of dealing with asylum requests; sign the

Council of Europe Agreement on illicit drug trafficking by sea,

— strengthen the staff of the economic crime squad and of the services in charge of the fight against drugs; ratify
the European convention on laundering of proceeds of crime, sign the European criminal law convention on
corruption and the OECD Convention on Bribery.

Reinforcement of administrative and judicial capacity including capacity to manage and control EU funds

— present a programme on public administration reform aiming at improving the efficiency and effectiveness of the

public administration,

— complete the legislative framework for internal and external financial control; set up a central organisation within
the government for harmonising internal audit/control functions; set up internal audit/control unit in spending
centres; introduce ‘functional independence’ for national internal controllers/auditors at both central and decen-
tralised levels and ex-ante financial control; issue an audit manual and develop audit trial for control of EU funds,

— make available GDP/capita data in accordance with EU methodology.

3.2. Medium-term

Economic criteria

— reduce public debt and the budget deficit,

— improve tax collection and reform of the public sector; restructure loss-making public sector enterprises and

ensure that they face market discipline,

— strengthen the financial system to prepare for a fully liberalised capital account regime,

— complete the process of privatisation,

— continue efforts to improve the conditions for enterprise creation and development, with particular attention to

small- and medium-sized enterprises,

— establish an annual fiscal surveillance procedure aimed to bring the reporting, monitoring and control of public
in line with the EU procedures.

finances, specifically fiscal positions,

Internal market

— public procurement: complete alignment to include local authorities and other bodies governed by public law;

adapt the judicial review system to the requirements of relevant directives,

— data protection: establish independent supervisory authority,

— free movement of goods: ensure sufficient independence of standardisation, certification, accreditation and
legislation in the field of

institutional arrangements; align national

metrology bodies and finalise overall
pharmaceuticals with the acquis,

— free movement of capital: abolish remaining restrictions on inward and outward capital movements in order to

achieve full

liberalisation,

— free movement of services: align banking rules on deposit guarantee schemes and consolidate its supervision;

adjust legislation on payment systems; further align legislation in the securities sector,

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

— competition: reinforce the competition authorities; ensure conformity of State aid system in particular with

regard to shipbuilding,

— telecommunications: bring the telecommunications regulatory frameworks fully in line with the acquis in
interconnection and universal service, numbering and data protection,

particular in the fields of licensing,

— 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,

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

— customs: complete alignment of legislation including customs procedures with an economic impact, free zones,
customs warehouses, tariff quotas and ceilings, suspensions, counterfeited and pirated goods and a binding tariff
information system; provide for the use of simplified procedures; reinforce the organisation, in particular to
prepare for the operation of all customs procedures with economic impact, the system of tariff suspensions and
the administration of tariff quotas and ceilings; continue fight against fraud and corruption.

Agriculture

— continue preparations for implementation of the common agricultural policy and rural development policies.

Fisheries

— continue alignment,

in particular on controls,

imports and State aid, as well as the fleet register.

Energy

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

prices to cost levels and the establishment of a regulator),

— align national

legislation (oil stock requirements and energy efficiency) with the acquis; restructure Malta's
institutional structures to separate policy formulation and regulation and reinforcement of its capacity to
implement the acquis.

Environment

— complete transposition and implement the acquis with particular attention to the framework legislation, the
horizontal legislation, and to the legislation on nature protection, on water quality and on waste management;
strengthen the institutional, administrative and monitoring capacity,

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

Employment and social affairs

— transpose and implement EU legislation in the fields of occupational health and safety,

labour law, equal
treatment of women and men and public health; reinforce related administrative structures and those required for
the coordination of social security,

— prepare a national employment strategy, with the help of the joint employment policy review, with a view to

later participation in the European employment strategy.

Economic and social cohesion

— develop a national policy for economic and social cohesion with a view to diminishing internal disparities and
preparing for Structural Funds implementation including pluriannual budgeting procedures and establishing
structures for monitoring appraisal and evaluation.

Transport

— align road transport (market access, road safety, rules for dangerous goods and taxation), maritime transport

legislation and aviation (particularly air safety and air traffic management).

Justice and home affairs

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

— continue fight against trafficking in women and children.

Reinforcement of administrative and judicial capacity including capacity to manage and control EU funds

— reform the public sector in order to improve the efficiency and effectiveness of the public administration,

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

— adopt EU compatible statistical methodologies and practices, in particular as regards GDP estimation, harmonised
consumer price indexes, short-term indicators, social statistics, business register and balance of payments.

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4.

PROGRAMMING

The date of validity of the fourth Financial Protocol (12 June 1995 to 31 October 1998) was extended by one year
(until 31 December 1999). The Protocol is the sole EU financial instrument (apart from EIB loans) for financial and
technical cooperation.

In 1998 no new funds were committed given the pre-accession orientation of the 1996 indicative programme. The
funds available in 1999 amounted to EUR 5 million. Under these national allocations, Malta can also fund part of its
participation in Community programmes including in the fifth research and technological development framework
programme.

Financial assistance from the year 2000 will be determined once the draft regulation on pre-accession finance has
been adopted by the Council. Under these national allocations, Malta will also be able to fund part of its future
participation in Community programmes.

Activities financed as from the year 2000 will focus assistance on the adoption of the Community acquis on the basis
of priority areas set out in this Accession Partnership.

Malta is eligible for EIB loan finance under the Euro-Med mandate. There are also EUR 30 million of EIB loans
available under the fourth Financial Protocol between Malta and the EU.

5.

CONDITIONALITY

Community assistance for financing projects is conditional on respect by Malta of its commitments under the
Association 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.

6. MONITORING

The implementation of the Accession Partnership is monitored in the framework of the Association Agreement and
in particular in the Association Committee. The Accession Partnership will be amended as necessary in accordance
with Article 2 of Regulation (EC) No 622/98.