Communication from the Commission to the Council and the European Parliament to prepare the fourth meeting of Euro-mediterranean foreign ministers "reinvigorating the Barcelona process"
Date: 2000-09-06
Institutions: European Commission
Subjects: EU programme, Mediterranean region (EU), cooperation policy, free-trade area

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 6.9.2000
COM(2000) 497 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

TO PREPARE THE FOURTH MEETING OF EURO-MEDITERRANEAN FOREIGN
MINISTERS

“REINVIGORATING THE BARCELONA PROCESS”

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

TO PREPARE THE FOURTH MEETING OF EURO-MEDITERRANEAN FOREIGN
MINISTERS

“REINVIGORATING THE BARCELONA PROCESS”

INTRODUCTION

The EU’s relations with the countries to the South and East of the Mediterranean are based on
a proximity policy which reflects the political and strategic importance of the region to the EU,
extending far beyond trade and assistance programmes. The Barcelona process aims at giving
full expression to the EU’s historical and political links with the Mediterranean region.

The Barcelona process, established in 1995, is a regional framework which brings partners
together at both political and technical level to promote their common interests. It builds on
the various Mediterranean policies developed by the EU since the 1960’s but marked a new
departure in that, for the first time, it created a framework for strategic relations going beyond
the traditional areas of trade and assistance co-operation. It represents the wish of the EU to
work together with its partners and to get away from the previous situations where the EU
made proposals and its Mediterranean partners either accepted or rejected them.

This multilateral process is underpinned by a network of bilateral relations between each
partner country and the EU, embodied in Association Agreements. The full potential of the
Barcelona process can only be achieved within this framework of comprehensive bilateral
agreements in a wider regional setting of political, economic, social and cultural co-operation.

The three main goals of EU Mediterranean policy are set out in the Barcelona Declaration1 and
in the common strategy adopted by the European Council in Feira in June 2000. They can be
summarised as follows:

– The creation of an area of peace and stability based on fundamental principles, including

respect for human rights and democracy.

– The creation of an area of shared prosperity through the progressive establishment of free
trade between the EU and its partners and among the partners themselves in view of the
creation of the wider Euro-Mediterranean free trade area by 2010. This process is
accompanied by substantial financial support from the EU for economic transition and to
help partners deal with the social and economic challenges which come with transition.

1

Barcelona Declaration adopted at the Euro-Mediterranean Conference of Foreign Ministers, 27-28
November 1995

2

– The improvement of mutual understanding among the peoples of the region and the

development of an active civil society.

The notion of "regional integration" goes hand in hand with that of economic transition.
In
macro economic terms, substantial progress have been made since almost all the Mediterranean
partners have now corrected their imbalances. Also, since 1992, a certain opening has taken
place in their trade, their exports and imports having progressed faster than their GNP. But
these progress are insufficient and fragile. These fragility stems from the narrowness of their
fiscal base, from the lack of diversification and competitiveness of the specialisation developed
so far, from the rigidities affecting their labour market, and more generally from the insufficient
liberalisation of their economic system. Mediterranean partners are indeed in need of a more
dynamic growth, which they will achieve only if they commit themselves to a double strategy:
an acceleration of reforms towards a deep integration with EU; and adaptation to the realities
of the new economy.

As far as trade is concerned, partners send globally around 51% of the exports to the EU, and
receive 53% of their imports. There is here a weakness of the Mediterranean productive base.
Similarly, the weakness of Foreign Direct Investments flows is worrying. The insignificant
share (5%) that is accounted by the Mediterranean out of the FDI flows towards emerging
countries is an indication that, overall the Mediterranean does not offer yet the necessary
attraction to investors.

ACHIEVEMENTS TO DATE

In the five years since the Barcelona Declaration a new spirit of partnership has been built
between the EU and its Mediterranean partners. Despite the ebb and flow of the Middle East
peace process all partners have participated in the process and it is the only forum where Israel,
Syria and Lebanon meet at Ministerial
level; many new regional networks have been
established (such as Chambers of Commerce, industrial federations, foreign policy institutes,
to work towards common goals.
economic policy institutes) bringing people together
Association agreements have entered into force with Tunisia, Morocco, Israel and the
Palestinian Authority and the Agreement with Jordan is in the process of ratification. Most of
the partners have embarked on ambitious programmes of economic transition necessary to
promote private sector development and to help encourage investment. The EU has mobilised
9 billion in grant and loan funding to support this process. Regional programmes have
over
brought together representatives of civil society, particularly in the cultural sphere, helping to
increase mutual understanding.

€

Annex I reviews activities undertaken during the period 1995 – 1999.

DIFFICULTIES ENCOUNTERED

Given the ambition of the Barcelona process there have inevitably been some problems :

• Difficulties in the Middle East peace process have slowed progress and limited the extent
to which full regional co-operation could develop. Not only are the countries in the region
very different in terms of political systems and levels of economic development but some are
much more affected by the evolution of the peace process than others. Willingness to co-

3

operate more actively with neighbours has been held back by the politics of the peace
process.

• The process of negotiation and ratification of the Association Agreements has been slower

than expected.

• The spirit of partnership has not led to a sufficiently frank and serious dialogue on issues
such as human rights, prevention of terrorism or migration. EU Human Rights policy in the
region has lacked consistency. The traditional EU approach of constructive advocacy and
supporting civil society activists has not always been supported by local governments. More
must be done to promote respect for universal human rights.

• Some partners have been reluctant to accelerate the pace of the economic transition and to
the obligations contained in the Association
introduce the reforms necessary to meet
agreements. The Associations Agreements could not be a substitute for domestic reform
efforts. The two are complimentary processes and mutually reinforcing.

• Trade between Mediterranean partners (South-South trade) has not increased from its very
low starting point. The levels of EU investment in the region remain low and well below the
flows of investment to other parts of the world. Part of the problem lies in the diversity of
rules, absence of cumulation of origin, inadequate physical and administrative infrastructure
and lack of a transparent legal and economic framework for doing business. In some
countries public companies have been resisting the restructuring which is needed in order to
compete in more open markets and other interest groups have been stalling wider economic
reforms. The Association Agreements provide opportunities, not guarantees, and their full
benefits can be reaped by countries which are prepared to modernise and open their
economies only.

•

Implementation of the MEDA programme has been hampered by complicated procedures
both in the EC and in partner countries. Although a new emphasis has been put on
structural and sectoral adjustment in order to help governments press ahead with economic
and social reform there have often been problems in finalising agreements or in meeting
conditions because of hesitation over reform.

• Despite awareness of the Barcelona process at political level, there is insufficient awareness

of the opportunities and benefits of the process in society at large.

THE NEED TO RE-INVIGORATE THE BARCELONA PROCESS

Recognising the strategic importance of their relations, all partners are committed to the
further development of the process. As the stock taking of the first five years shows the basic
approach and the main instruments are still valid. The Commission considers that the global
and comprehensive approach agreed at Barcelona is the only one capable of avoiding the
stagnation of the past and that it should be reaffirmed. However, there is a need to draw a
number of lessons from the initial period and to reinvigorate the process in several important
respects.

4

On several occasions the Council has called for
the Euro-
Mediterranean partnership. Most recently, in May 2000 Euro-Mediterranean Foreign Ministers
met informally to review the process and to consider how to take it forward. At the June 2000
meeting of the European Council in Feira a Common Strategy of the European Union on the
Mediterranean region was adopted to guide the policies and activities of the Union in
developing the Euro-Mediterranean Partnership established by the Barcelona Declaration.

further strengthening of

This Communication reviews the experience of the first five years of the Barcelona process and
makes specific proposals for taking it forward in a number of areas where difficulties have been
encountered.

INSTRUMENTS AVAILABLE

In pursuing the three main goals of its Mediterranean policy the EU has a variety of existing
and potential instruments

• Bilateral Association Agreements which provide for political dialogue, free trade between
each partner and the EU to be established over a transitional period, financial and other
forms of co-operation

• The MEDA programme which provides financial support for the objectives of the
Association Agreements,
through bilateral, national allocations and through regional
programmes. This includes appropriate forms of technical assistance for adapting the legal
and regulatory regimes.

• The Euro-Mediterranean Committee of the 27 partners which oversees all aspects of the
process, together with regular meetings of senior officials on political and security matters

• A future Charter for Peace and Stability, guidelines for which were agreed at the Stuttgart

Foreign Ministers Conference in 1999

The institutional framework in which these instruments are applied needs to be reviewed and
adapted to the ‘re-invigoration’ process.

This Communication examines some of the main issues which arise in relation to the
application of these policy instruments, each of which serves in different ways to underpin the
three themes of the Barcelona process.

a)

Association Agreements

* * *

(i) Completing the Association Agreement Framework – the need to
accelerate negotiation, signature and ratification : Four Association
Agreements are outstanding. Negotiations with Egypt were concluded in June
1999 but the Egyptian Government is not yet ready to sign. Negotiations with
Lebanon, Syria and Algeria are making very slow progress. As experience with
Tunisia, Morocco, Israel and the Palestinian Authority shows, the entry into
force of the Association Agreements brings important benefits. Moreover, the
aim of Euro-Mediterranean free trade cannot be realised until all of the

5

Agreements have entered into force. Therefore, it is important to speed up the
conclusion of the remaining agreements.

The Commission calls on Egypt to sign the Association Agreement and on
Lebanon, Syria and Algeria to work with the Union to accelerate
negotiations with a view to concluding them by June 2001 at the latest while
being aware that this will require major efforts on all sides.

Experience has shown that ratification by Member States can also be a slow
process (rarely less than four years, at present).

The Commission calls on Member States to take steps to accelerate
ratification of the Agreement with Jordan and to ensure that subsequent
Agreements are ratified within two years of signature.

(ii) Trade

One of the repeated requests from the Mediterranean partners is for greater
market access for their agricultural products, driven both by the economic and
social importance of agriculture in these countries and by their perception of
having a comparative advantage in certain agricultural products. The
Association Agreements which have already been concluded provide for a
review of their provisions on trade in agriculture. Since the Association
Agreements are free trade Agreements which include provisions for furthering
the progressive and reciprocal liberalisation of trade in agriculture and since all
parties are bound by WTO rules it
is appropriate to carry out a detailed
examination of the obstacles to be overcome in order to ensure that the FTAs
are fully GATT compatible at the end of the transitional period. This review
should be carried out in the context of the partners’ broader agricultural support
policies and the implications for water, the environment and social issues.

is in force,

For each country for which an Association Agreement
the
Commission will carry out a detailed examination of the further steps
needed in order to reach, by the end of the transition period, a GATT
compatible Free Trade Agreement, covering all sectors including greater
liberalisation of reciprocal trade in agriculture. This examination will be
carried out by the end of 2000, subject to work already underway, and on the
basis of that analysis and if necessary, the Commission will make further
proposals for trade liberalisation in accordance with the Barcelona
Declaration. As far as possible consistency should be pursued in any further
preferences granted to partners.

.

In relation to trade in services, there are significant barriers to market access in
many – if not all – of the Mediterranean partners. This prevents service suppliers
from taking full advantage of the opportunities available and also reduces the
ability of the partners to attract foreign investment and promote their own
economic development. Liberalisation of market access and improved regulation
of trade in services will form an important dimension of the economic
development of the Mediterranean partners. Those which are members of the
WTO should therefore be encouraged to, play a full part in the current GATS
2000 negotiations.

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b)

(i)

Other economic and trade issues

South-South trade : Enhanced regional and sub-regional trade and economic
cooperation are a prerequisite for attaining the objectives set out
in the
Barcelona Declaration. At present intra-regional trade accounts for less than 6%
of the total trade flows of the Union’s Mediterranean partners. Development of
South-South trade would bring considerable economic gains, not only in terms
of trade but also in terms of inward investment since investors would be
attracted by the possibility of serving regional rather than purely national
markets. The completion of the Euro-Mediterranean free trade area depends on
implementation of
themselves. The
agreements between the partners
implementation of sub-regional free trade areas, in accordance with WTO rules,
is a useful vehicle for accelerating the wider Euro-Mediterranean free trade area
which is meant to be in place by 2010. Making a reality of free trade in the
Maghreb and in the Mashraq, together with the agreements which Turkey and
Cyprus are already establishing with these partners, would bring an early harvest
of some of the benefits foreseen in the Barcelona process. The further
development of South-South trade is both a political and a technical matter. The
countries in the region need to decide for themselves to open their economies to
doing business with their neighbours but the Commission can facilitate the
process by providing technical assistance on what is needed in order to make
South-South trade work (for example, by advising on rules of origin, on tariff
reductions and on fiscal reform which will be necessary in order to offset the
loss of revenue resulting from tariff reduction)

(ii) Cumulation of Origin2: this is an important issue in this context since it helps
to make better use of complementarities, division of labour and economies of
scale. Cumulation of origin is also an important factor in establishing a large
South-South market and thus attracting inward investment.
to
encourage this process of sub-regional co-operation among the partners
concerned the Commission calls on the Mediterranean partners to adopt the
harmonised protocol on rules of origin (as already accepted with Jordan and the
PLO) which is the basic condition for the functioning of a system of diagonal
cumulation between all partners.. Once this is achieved full cumulation can be
reached once it has been demonstrated that all partners are correctly
implementing the rules for diagonal cumulation.

In order

(iii) Single Market – harmonisation/integration : The section on free trade in the
Barcelona Declaration goes beyond tariff dismantling and deals with broader
economic issues. The European experience of establishing a Single Market
should be used to identify an appropriate regulatory framework for a Euro-
Mediterranean Free Trade Area. The Commission has issued a Communication3
on the Euro-Mediterranean Partnership and the Single Market and the Euro-
Mediterranean industrial co-operation working group is discussing further co-
operation on customs, public procurement, norms and standards, competition
financial services, data
policy,

intellectual property protection,

taxation,

2

3

“Cumulation” permits the use, in one partner, of material originating from one or more other partners,
with the final product being regarded as originating from the first partner.
COM (1998) 538 final of 23.9.98.

7

protection, accounting and auditing. A regional action programme focussed on
awareness raising and training, is to be launched towards the end of 2000.

Actions to encourage the decompartimentalisation of markets will be of
particular importance, especially in regulated sectors such as energy and
telecoms.

The entry into force of the Euro also provides a substantive element of influence
for the economic relation between the EU and the Mediterranean Partners, in
terms of minimization of risk for potential investors in the Mediterranean.

(iv)

Integration into the world economy: A number of the partners are not yet
WTO members. Those who have not yet applied should do so as soon as
possible. Those who have applied but not completed the accession process
should take steps to accelerate the procedure.

The Commission proposes that :

• Those partners which have not yet applied to the WTO should do so by the end of 2000,
and those which have applied should complete the process of accession as quickly as
possible with a view to conclude by the end of 2002.

•

•

•

at the latest within five years of signature, each country which signs an Association
Agreement with the EU should sign free trade agreements with all other Association
Agreement signatories

diagonal cumulation should be introduced immediately between all
establishing free trade among themselves and applying identical rules of origin.

the partners

the forthcoming “euro-market” regional
building on the expected outcome of
programme, a time-table should be defined by 2002 for
type
harmonisation measures of certain priority sectors such as rules of origin, customs
matters, norms and standards, and intellectual property protection. The implementation
of this harmonisation programme, which would cover both convergence with the EU
and intra-Mediterranean harmonisation, would take place as of 2004.

single-market

b)

The MEDA programme –bilateral and regional financial co-operation

(i) Country programmes

The MEDA programme provides financial assistance in support of the aims of
the EU’s Mediterranean policy as set out in the Barcelona Declaration. Since
1995 MEDA has concentrated on supporting economic transition and on
helping partners meet
the socio-economic challenges which come with
transition, in line with the objectives of the Association Agreements. Although
the MEDA programme has a good record on commitments, disbursements have
only reached 26% of the amount committed. Although it is natural that, in the
early years of a programme, disbursement should be slow there is a clear need

8

to improve the performance of the programme, both in the EU and in the
partner countries.

Performances in terms of disbursements have shown substantial variations,
ranging from very low levels up to 42-48%. Factors behind these variations are
multiple : the Commission has to go through an important internal reform in aid
delivery ; the Council and the Parliament need to equip the EU with a more
effective Meda Regulation, but also, Mediterranean Partners have to play their
in the programming dialogue and the
part
presentation of credible and mature project proposals.

through greater commitment

In the light of five years’ experience the Commission has concluded that the
programming and implementation of assistance must be improved in order to
enhance its strategic content, to sharpen its focus and increase its impact. In the
context of the revision of the MEDA Regulation the Commission has proposed
to draw up a Country Strategy paper for each country which will set the context
for triennial national
indicative programmes and the annual programming
proposals. This process will help place MEDA’s priorities in the context of each
country’s own national development objectives and take account of the
activities of other donors including bilateral Member State programmes and the
international financial institutions. In future the emphasis will be on a small
number of strategic programmes and isolated or small projects which do not fit
into this approach will no longer be funded.

Since the purpose of providing financial assistance is to support the objectives
of the Association Agreements, future programming will be more focussed and
concentrated on a smaller number of priorities, directly linked to the
Agreements and will take greater account of the readiness of partners to
demonstrate by their actions their commitment to enhance regional trade and
economic cooperation as well as to the necessary measures of economic reform,
notably in the financial sector, in order to complete the process of economic and
political transition, including where appropriate, their willingness to conclude
the Association Agreement negotiations.

In view of the importance of the regional dimension of the Barcelona process
increased attention needs to be paid to the transfer of results from regional
programmes to country- specific MEDA programmes. As the regional
programmes begin to generate results, for example on regulatory frameworks or
possible harmonisation measures based on the EU Single Market, these should
be implemented through the national programmes
has
recently taken important decisions on the implementation of its external aid
policy with a view to accelerating delivery. These will benefit MEDA where
implementation also needs to be simplified and streamlined. This objective can
be combined with that of increasing the strategic influence and impact of
MEDA by increasing the emphasis given in the programme to structural and
sectoral adjustment, taking account of the activities of the international financial
institutions. This will encourage the development of support programmes with
conditions linked to specific sectors and the objectives of the Association
Agreements. Deconcentration of implementation of the programme to the
Commission’s Delegations in the partner countries will help to bring the

Commission

The

9

programmes closer to the beneficiaries, speed up the handling of projects and
allow for closer monitoring.

The Commission is determined to reduce the length of time taken to implement
MEDA programmes through more focused programming, only financing mature
projects and limiting the widespread practice of extending programme duration.
The Commission therefore proposed on 26 July 2000 (proposal to recast the
financial regulation COM(2000) 461 that contracts which implement financing
memoranda need to be concluded at the latest on the 31 December of the third
year following the budgetary commitment. It may also be necessary for partner
countries to make changes in the way they implement MEDA projects.

in line with agreed priorities,

the
In order to ensure greater impact
Commission proposes that funding under MEDA be more explicitly linked to
progress in the implementation of the Association Agreements. Future
financial allocations should also reflect the willingness of partners to pursue
the objectives of the Agreements, notably as regards the acceleration of
economic reforms and to raise their absorption capacity in presenting fully
mature projects. At the same time, increased efforts should be made to
transfer the results of regional programmes into national action programmes

(ii) Regional co-operation

The emphasis on regional co-operation is one of the key features of the
Barcelona process. However,
to
overcome the political and technical obstacles to co-operation. Regional
industry, water, energy,
cooperation focuses on the following key areas:
environment, transport and the information society. Cooperation in research and
development within these sectors is also encouraged.

in the early stages it has been difficult

While it is important to maintain the principle that all regional programmes are
open to all partners it also makes sense to provide for smaller groups of partners
to move ahead together without waiting until all are ready to participate. Thus
certain regional co-operation projects could be developed on a sub-regional
basis such as bilateral or trilateral projects within the Maghreb, the Mashraq or
any other trans-Mediterranean composition. This would mean making greater
use of the “cluster” approach already used in MEDA regional programmes
where programmes open to all partners are made up of individual projects
involving smaller number of partners.

The Commission proposes to make greater use of the plurilateral nature of
regional co-operation programmes, developing projects with smaller
numbers of Member States and Mediterranean partners in configurations
which can vary from one project to another.

MEDA regional co-operation programmes aim to promote the exchange of
experience and best practice, raise awareness and to develop ways of dealing
with issues which can then be implemented nationally. A number of innovations
could be proposed in existing programmes and a limited number of new
programmes should be introduced in order to further promote this kind of
regional co-operation:

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•

•

•

investment and business : investment, both foreign and domestic, is
crucial for economic development and successful transition. It is clear that
the main effort
to modernise their economies, create legal and
administrative transparency and certainty, create a business friendly, pro-
competition environment, promote good governance and develop sub-
regional co-operation must come from the countries
themselves.
However, drawing on its own experience and with financial assistance
from MEDA the EU can support this process. In this context a regional
risk capital
envelope is being developed within MEDA to support
financing. A network of investment promotion agencies is being launched
and the Commission will update the investor’s guides to the region which
have already proved very successful. Member States should also consider
carrying out information campaigns with their own business communities
so as to inform potential investors of developments and opportunities.
The recent creation of
the UNIMED BN network of employers
federations will create a useful focal point for understanding the needs and
concerns of
investors. A new regional programme on innovation,
technology and quality will also help business to compete in the global
economy. The regional EUMEDIS programme is designed to promote the
information society. In particular the results of its activities on e-
commerce will be further developed as an instrument of economic
modernisation in the region.

environment : Environmental protection is a prime example of an issue
which must be tackled through regional co-operation. In 1997 Euro-
Mediterranean Ministers agreed on a series of priority areas for action to
protect the environment (Short and Medium Term Priority Environmental
Action Programme – SMAP). The first series of regional co-operation
projects in the five priority areas4 identified by Ministers is now being
launched. These regional projects aim to address, among others, water,
waste, coastal zones, biodiversity and desertification. To reflect
the
increasing importance of environmental protection the financial resources
allocated for the SMAP are being increased.

More generally, attention must be paid to the integration of environmental
concerns and the objectives of sustainable development into all activities
undertaken within the Partnership

infrastructure : Beyond the legislative and administrative framework for
economic modernisation, it is clear that the necessary infrastructure must
in large
also be in place. In the Mediterranean context,
infrastructure projects such as road, ports,
telecoms etc. should be
financed either by the private sector or through loans. The use of grant
feasibility studies and
money should be limited to the funding of
preparatory actions. MEDA funds should be used to develop concepts
and feasibility studies for regional infrastructure networks which aims to
to Trans
connect national systems to each other (South-South) or

investment

4

Integrated water management, waste management, hot spots (polluted areas and threats to bio-
diversity), integrated coastal zone management and combating desertification.

11

•

•

•

•

•

European Networks (trans Mediterranean). The profile of major regional
projects could be raised by giving them a “Euro-Mediterranean
Partnership” label.

social dimension : The need to take account of the social impact of
economic transition is repeatedly stressed in all studies on transition. The
national indicative programmes under MEDA already include measures to
support the social consequences of transition but there is also room for
action at the regional level

The Commission also intends to develop a new regional social
programme during 2001 which will concentrate on :

implementing best practice on linking training policies with
employment needs

enhancing the role of women in economic development

designing social safety nets and modern social security systems as well
as methods of co-operating on health matters

The Commission proposes to carry out a sustainability impact
assessment of the future Euro-Mediterranean free trade area and on
this basis will make recommendations for future action.

justice and home affairs: given the importance of justice and home
affairs issues, the Commission suggests to favour cooperation initiatives in
this field. Such an approach has also been endorsed by the report on the
external dimension of JHA adopted by the European Council in Feira
which identified the Mediterranean as one of the priority areas for
cooperation.

The Common Strategy on the Mediterranean region adopted at the Feira
European Council also indicated that greater attention should be paid to
this sector. The Commission therefore proposes, in addition to action
taken in the country specific programmes, to develop a regional justice
and home affairs programme during 2001. It will focus on : activities
concerning the right of asylum and in favour of refugees; co-operation
in the fight against illegal immigration, in particular trafficking in
human beings; addressing questions relating to migration including
the social inclusion of migrants lawfully resident in a Member State
and co-development with their countries of origin; conformity of
judicial systems including on family and inheritance law; co-operation
in the fight against organised crime through training of judicial and
policy officials.

c)

Political dialogue and civil society

The Barcelona process involves regular meetings of Ministers and senior officials to discuss
political and foreign policy matters. Issues such as human rights, democracy, good governance
and the rule of law should be regularly raised by the EU side and should acquire greater

12

prominence in the partnership. The emphasis should be on a structural approach, addressing
the fundamental questions underlying policy choices and on encouraging an evolutionary
approach. All instruments available must be used to this end. Positive actions, including
support for NGOs, should be funded under the MEDA national programmes as well as through
the MEDA Democracy programme. MEDA country allocations should be more dependent
on substantial progress in these areas.

In parallel these issues should also be discussed regularly with partners in the Association
Councils and Committees, Troikas etc) so that a direct policy dialogue can be engaged on
measures which governments need to take to ensure satisfactory evolution of the situation.
This could lead to the establishment of joint working groups on human rights at officials
level; these groups would aim to agree on a number of concrete benchmarks and objective
criteria to be reviewed within the various Association Councils.

Where they have not already done so, Mediterranean partners should be encouraged to
accede to the relevant international instruments, conventions etc on human rights.

A free and flourishing civil society is a basic prerequisite for the success of the partnership in
all its aspects. Organisations outside government which act within the law have a valuable
contribution to make in many areas of the partnership. Co-operation on human rights, good
governance and the rule of law should have as one of its main objectives the creation of a
climate where NGOs can work productively. In the long run this is the most useful way in
which the EU can support them.

d)

A Charter for Peace and Stability

their meeting in Stuttgart

in 1999 Euro-Mediterranean Foreign Ministers agreed the
At
guidelines for a Charter for Peace and Stability. The text of the Charter should be agreed at the
next ministerial meeting in November 2000 and the Charter would be applicable whenever
sufficient progress has been made in the Middle East peace process.

The Charter should be a politically binding document aimed at preventing tensions and crises
and maintaining peace and stability by means of co-operative security. It would not replace nor
supersede the Barcelona Declaration, but serve as an instrument for the implementation of the
Barcelona Declaration where issues of peace and stability are concerned, while recognising that
all aspects of the Barcelona Process have their part to play in reinforcing peace and stability.

A measure of agreement has already been reached on questions of principle. The time has now
come to draft a text. The Charter’s main purpose should be to institutionalise the existing
political dialogue and set up concrete mechanisms to address security and stability questions
relevant to the region. The existing ad hoc meetings of Senior Officials should be converted
into an institutional forum for dialogue on political and security issues and mechanisms
should be established for operational joint action on terrorism as well as on conflict
prevention and crisis management.

Partnership building measures should be implemented in a flexible way so that these
questions could be addressed by a smaller number of partners wishing to advance more
quickly, without prejudice to the principle that all Barcelona partners have the right to
participate if they so wish. The Charter should confirm this principle of flexibility.

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e)

Institutional arrangements

The Barcelona Process and the individual Association Agreements already provide for regular
contacts between the partners through a number of instances and institutions. However, as the
process intensifies there will be a need for more effective co-ordination and the Euro-
Mediterranean Committee for the Barcelona Process needs to be given the opportunity to play
a more strategic role as a steering committee, particularly on multilateral activities. The
Committee should be asked to agree on proposals which go in this direction, by November
2000. Decisions on this aspect will need to take account of whatever institutional body may be
set up under the Charter for Peace and Stability.

f)

Information and Communication

The Barcelona process will only fulfil its real potential when there is a widespread sense of
“ownership” of the process in the region. More could be done to explain the objectives and
benefits of the process and to make it an active and vibrant partnership.

The Commission will prepare an information and communication programme designed to
raise awareness both in EU Member States and in partner countries. In order to give
increased visibility to projects supported under the partnership a “Euro-Mediterranean
partnership” label will be used on all projects.

Conclusion

Five years after the launch of the Barcelona process it is time to take stock of its achievements
and of the difficulties encountered. In the light of this experience there are several steps which
should now be taken in order to reinvigorate the process and enhance its ability to deliver its
full potential. The proposals set out in this Communication are designed to stimulate discussion
among partners in the run up to the Ministerial Conference (meeting of Euro-Mediterranean
Heads of Government) in Marseilles in November 2000 and to help pave the way for
agreement on a programme to reinvigorate the Barcelona process be adopted at that meeting.

The Commission makes the following recommendations:

– Association Agreements: to call on Egypt

to sign the Association Agreement, on
Lebanon, Syria and Algeria to work with the Union to accelerate negotiations with a view
to concluding them by June 2001 at the latest while being aware that this will require major
efforts on all sides and on Member States to take steps to accelerate ratification of the
Agreement with Jordan and to ensure that subsequent Agreements are ratified within two
years of signature.

– Trade: for each country for which an Association Agreement is in force, to carry out a
detailed examination of the steps which need to be taken in order to reach greater
liberalisation of reciprocal trade in agriculture by the end of the transitional period in
accordance with relevant GATT/WTO provisions. This examination will be carried out by
the end of 2000, subject to work already underway, and on the basis of that analysis and if
necessary, the Commission will make further proposals for trade liberalisation. As far as
possible consistency should be pursued in any further preferences granted to
in GATS 2000
partners. Partners members of the WTO should play a full part
negotiations. At the latest within five years of signature, each country which signs an
Association Agreement with the EU should sign free trade agreements with all other

14

Association Agreement signatories. Diagonal cumulation should apply immediately to
partners establishing free trade among themselves and applying identical rules of origin.
Building on the expected outcome of the forthcoming “euro-market” regional programme, a
time-table should be defined by 2002 for single-market type harmonisation measures of
certain priority sectors such as rules of origin, customs matters, norms and standards, and
intellectual property protection. The implementation of this harmonisation programme,
which would cover both convergence with the EU and intra-Mediterranean harmonisation,
would take place as of 2004.

– MEDA : in order to ensure greater impact, the link between the implementation of the
Association Agreements and funding under MEDA should be made more explicit and future
financial allocations should reflect the willingness of partners to pursue the economic
transition objectives of the Agreements. Similarly, increased efforts should be made to
transfer the results of regional programmes into national action and this process should also
be reflected appropriately in annual financial allocations. The plurilateral nature of regional
co-operation programmes should be confirmed, but projects should be open to smaller
numbers of Member States and Mediterranean partners in configurations which can vary
from one project
to another. A sustainability impact assessment of the future Euro-
Mediterranean free trade area will be carried out and on this the Commission will make
recommendations for future action. During 2001 new regional programmes will be drawn
up on social issues and on justice and home affairs.

– Political and security co-operation: the Euro-Mediterranean Charter for Peace and
Stability should agreed at the forthcoming Euro-Mediterranean meeting in Marseille in
November 2000

– Co-operation on respect for human rights and democracy, good governance and the
rule of law should be enhanced. The EU should raise these issues through a structural
approach and MEDA allocations should become more dependent on progress on these
issues

–

Information and communication, a new programme designed to raise awareness both in
EU Member States and in partner countries will be launched. In order to give increased
visibility to projects supported under the partnership a “Euro-Mediterranean partnership”
label will be introduced.

– This Communication is transmitted to the Council and the European Parliament in order to
prepare the EU’s position in the run-up to the Euro-Mediterranean meeting of Foreign
Ministers in November 2000.

15

ANNEX

BALANCE SHEET OF ACTIVITIES

GENERAL

1. Barcelona is the only forum where Ministerial meetings take place involving Israel, Syria
and Lebanon. This was of particular importance during the three years of blockage in the
Middle East Peace Process. Foreign Ministers of the 27 partners have met regularly since
the Barcelona Conference (1995): Malta (1997), Palermo (1998,
informal), Stuttgart
(1999), Lisbon (2000, informal). In addition there have been 12 meetings of Ministers with
sectoral responsibilities.

2. The Euro-Mediterranean Committee for the Barcelona Process (senior Foreign Ministry
officials of the 27 plus the Commission) meets regularly, at least 4 times a year, to act as a
steering committee of the process and discuss guidelines for and implementation of
regional cooperation.

3. Guidelines for the Charter for Peace and Stability were agreed at the Stuttgart Foreign
Ministers meeting and further progress has been made by Senior Officials since then (cf.
Lisbon Report of the Presidency).

ASSOCIATION AGREEMENTS

(see table attached)

4. Progress has been made as follows:

Agreements are in force with Tunisia, Morocco, Israel and the Palestinian Authority

(interim agreement).

The Agreement with Jordan has been signed and ratification procedures are under

way.

Negotiations with Egypt have been concluded and signature awaits completion of

Egyptian internal procedures.

Negotiations are still under way with Lebanon, Syria and Algeria.

Cyprus, Malta and Turkey are covered by pre-existing Association Agreements

providing inter-alia for customs unions with the EC.

FINANCIAL COOPERATION

5.

Implementation of financial cooperation can be summarised as follows:

Total commitments for EC aid to the Mediterranean region 1995-1999:

Of which

- MEDA

- Peace Process

16

€

€

€

4 422 M

3 435 M

424 M

Total payments for EC aid to the Mediterranean region 1995-1999:

(aid to the Palestinians)

Of which

- MEDA

- Peace Process

(aid to the Palestinians)

Total EIB loans to the Mediterranean region 1995-1999 :

€

€

€

€

1 615 M

890 M

256 M

4 672 M

MEDA Commitments 1995-1999

Total commitments under MEDA I were

€

3435 M with the following annual distribution:

TABLE 1

€

M

Commitment appropriations available

Commitment appropriations used

Implementation rate of commitment
appropriations

1995

1996

1997

1998

1999

Total

173

173

403

403

981

981

943

941

937

937

3.437

3.435

100% 100% 100% 99,8% 100% 99,9%

The commitments thus exceeded the financial reference amount of
MEDA Regulation.

€

3424.5 fixed in the

The following table indicates the distribution of commitments by partner/programme for the
period 1995-1999:

TABLE 2

€

M

MEDA

1995

1996

1997

1998

1999

1995-1999

Bilateral

Morocco

Algeria

Tunisia

Egypt

Jordan

Lebanon

Syria

West Bank/Gaza

Turkey

Total bilateral

Regional

30

20

7

3

60

113

235

41

138

203

10

86

42

41

70

866

93

120

75

100

10

13

20

33

370

33

17

219

95

19

397

8

5

132

875

46

172

28

131

11

129

86

44

42

140

783

133

656

164

428

686

254

182

99

111

375

2.954

418

Technical assistance

GRAND TOTAL

173

403

22

981

20

941

21

937

63

3.435

Payments 1995-1999

Total payments under MEDA I were

€

890 M with the following annual distribution:
€

TABLE 3

M

1995

1996

1997

1998

1999

Total

Payment credits available

Payment credits used

91

50

202

155

315

211

285

231

256

1.149

243

890

Implementation rate of payment credits

55%

77%

67%

81%

95%

77%

2545 M.
At the end of 1999 the cumulative gap between commitments and payments was
Thus over the period 1995-1999 payments represented 26% of commitments, as indicated in
the table below:

€

Commitments

Payments

TABLE 4

€

M

1995

1996

1997

1998

1999

Total

173

50

403

155

981

211

941

231

937

3.435

243

890

Ratio of payments to commitments

29%

38%

21%

24%

26%

26%

The following table shows the distribution of commitments/payments by partner:

Commitments

Payments

TABLE 5

€

M

Implementation rate
%

Morocco

Algeria

Tunisia

Egypt

Jordan

Lebanon

Syria

Turkey

West Bank/Gaza

127

30

168

157

108

1

0

15

54

656

154

428

686

254

182

99

375

111

18

19.4

18.2

39.3

22.9

42.5

0.5

0.0

4.0

48.6

Regional (incl TA)

TOTAL

480

3,435

230

890

48.0

26

The main activities supported under the MEDA national indicative programmes were the
following :

***

Structural adjustment direct budgetary support accompanying the effective
implementation of programmes generally coordinated with the Bretton
Woods institutions; a total of
600 M or 20% of MEDA commitments
for 1995-1999. The partners concerned were Morocco, Algeria, Tunisia,
Jordan and Lebanon.

€

Economic cooperation support for the creation of an environment favourable
to the development of the private sector including risk capital operations
managed by the EIB; a total of
1,035 M or 30% of MEDA
commitments
for 1995-1999.The partners mainly concerned were
Morocco, Tunisia, Jordan, Egypt, Turkey and the Palestinian Authority.

€

Social sector activities in the social sector in the widest sense (health, education
…) aim to support the socio-economic balance in the partners and to
mitigate the short-term negative effects of economic transition. They
mainly take the form of social funds and, more recently, a sectoral
1,000 M or
adjustment facility (health insurance in Tunisia); a total of
29% of MEDA commitments for 1995-1999.

€

Environment activities have been supported in Morocco and Jordan;

in
addition all partners except Syria have benefited from interest rate
235 or 7%
subsidies on EIB loans for environmental projects; a total of
of MEDA commitments for 1995-1999.

€

Rural development programmes have been agreed for Morocco, Tunisia and

Syria; a total of

155.5 or 4.5% of MEDA commitments for 1995-1999.

€

Under the regional indicative programme priority has been given to industrial cooperation,
environment, water, energy, transport and the information society, with the emphasis on
policy dialogue, networking, the interconnection of infrastructure and reforming the legal and
administrative framework to encourage pro-competitive regulation. Under the third heading of
the Barcelona Process the main activities have been in the fields of cultural heritage, audio-
visual cooperation and youth exchanges. Most of the regional cooperation programmes are
36 M for the period concerned).
open to civil society as is the Meda-Democracy programme (

€

***

MEDA BILATERAL PROGRAMMES

Algeria

19

Commitments were initially slow due to the political situation and the low absorptive capacity
of the Algerian administration. However, since the end of 1998, cooperation has regained a
certain dynamic.

€

The economic transition and reform process has been supported by a structural adjustment
facility of
125 M committed in 1997. This programme covers essential reforms in the fields of
external trade liberalisation, privatisation, social safety net and housing. Complementary to
these reforms, technical assistance projects to strengthen private sector development have been
€
57 M) were
launched. A privatisation project (
€
committed at
23 M) was
committed in December 1999. In addition,
the Commission supports industrial pollution
abatement by an interest rate subsidy for an EIB loan (

38 M) and a SME support programme (
the end of 1998. A financial sector modernisation project (

10,75 M).

€

€

To support the socio-economic equilibrium, a programme on institutional support to NGOs
€
(
5 M) has been committed in 1999 to strengthen decentralised, anti-poverty oriented
development activities, mainly for poor target groups. A comprehensive assistance programme
€
to the Algerian social fund (
60 M) is presently under preparation. The latter will mainly
promote employment creation and community development activities.

Egypt

The main objectives of measures financed in Egypt through the MEDA programme are to
achieve economic transition and a better socio-economic balance. Both tracks should back-up
Egypt in its medium-term objective of a sustained economic growth beyond 5.5% per annum.

The MEDA Programme supports economic transition in Egypt with the Industrial
€
250 M) : this is conceived as a shared vision between
Modernisation Programme (IMP) (
the Egyptian Government, private sector and the European Union to help Egypt compete
successfully in both the domestic and international markets. As Egypt further integrates into
the world economy and trading system, the performance of the industrial sector will become a
crucial factor of the country’s future income and employment generation.

The objectives of the IMP will work at three levels. First at the policy/enabling environment
level, second at the sectoral level, and third at the individual enterprise level. Assistance will be
given to the Ministry of Industry to help it continue to facilitate the growth of the private
business sector and produce a more business-friendly policy environment. Assistance will also
be given to businessmen’s associations and to other related organisations to address the needs
of the business sector. At the enterprise level, some 5,000 enterprises have been targeted for
assistance to improve their competitiveness.

As far as support for socio-economic balance is concerned, EU-Egypt co-operation has
progressively evolved from population planning initiatives, decentralised co-operation, NGO
support and substantial contribution to the Social fund for Development, where the EU was
among the first major donors. Under MEDA, EU–Egypt co-operation in the social sector
focuses on policies favouring the development of human capital, promoting programmes in
support of acceptable demographic restraints, creating job and business opportunities within
micro and small enterprises located in rural sectors and other deprived areas.

Acknowledging the challenges that lie ahead, the Government of Egypt has embarked on a
100 M) and has
major effort to improve the quality of basic education (EU contribution
defined a long-term policy. It emphasises three areas: (1) increasing access to compulsory

€

20

education, particularly for girls and under-privileged children; (2) improving the quality of
education through reducing wastage and ensuring the attainment of basic skills to a grade nine
level; and (3)
improving system efficiency by enhancing resource use, planning and
management and accountability of teachers and system managers.
€

the Government has also set

In health (EU contribution
the goals of a
comprehensive 10-15 years health reform framework, whose ultimate objective is to improve
the health status of the Egyptian population through universal access to high-quality and cost
effective services in the context of a fiscally sustainable and efficient system. Much of the first
five-year efforts will focus on primary care, while taking into account the issues of overall
health manpower and system capacity for which policies will be developed and implemented
progressively.

110 M),

Ongoing support
contribution to Egypt's efforts to mitigate the adverse effects of economic transition.
have been committed to the second phase of this operation to increase employment.

to the Social Fund for development constitutes another considerable
155 M

€

Jordan

Most of the funds have been used to support economic transition including reforms :
180
M were allocated to two structural adjustment operations (1996, 1999). The support
concentrated on economic and social reforms, such as improved budgetary management and
transparency of economic statistics, trade liberalisation, modernisation of the tax system,
privatisation and public sector reform,
the social safety net and investments in social
infrastructure. Moreover, both operations contributed to easing the balance of payments
7 M) and
constraints.
40 M), including risk capital recources managed by EIB in support
industrial modernisation (
€
of SMEs (

62 M have been dedicated to programmes in favour of SME (

15 M).

€

€

€

€

Poverty reduction measures in order to ensure the socio-economic equilibrium despite
Jordan’s high indebtedness and budgetary constraints focussed on the water sector (
17,3 M,
mainly for Greater Amman), protection of the environment (
2,6 M interest subsidies for EIB
loan) and tourism development (

3,9 M).

€

€

€

Other commitments in 1996-99 concerned contributions to UNRWA, ECHO operations and
food security.

Lebanon

For the period 1995-1999 the principal objectives of EU assistance have been to assist
Lebanon’s post-war institutional and economic reconstruction :

- rehabilitation of public institutions and industrial modernisation

- economic transition and fiscal reform

- balanced social development.

Rehabilitation of public administration is designed to strengthen Lebanon’s planning and
operational capacity of ministries, state agencies and institutions in carrying out social sector
38 M). An investment planning programme provides management support to state
activities (

€

21

€

institutions responsible for infrastructure and utilities, i.e. energy, water, transport, waste,
environment, industry (
25 M). The private sector is also to benefit from strengthening of
norms and certification capabilities (
6 M), and an industrial modernisation project is under
way to help private sector manufacturing at SME level to compete more effectively in local
and export markets (
11 M). Two EIB interest subsidies for environment sector loans were
€
provided (

30 M).

€

€

€

A
50 M structural adjustment facility in 1999 was approved to underpin Lebanon’s economic
transition, coupled with assistance for the introduction of VAT (crucial to pave the way for
renewed negotiations on the Association Agreement).

€

A
25 M Social and Economic Development Fund has been agreed to improve social
development needs of Lebanon’s more vulnerable communities at risk in an economy in
transition. This provides micro credit lines and assistance to NGOs, municipalities and other
agencies concerned with rural and urban social welfare and economic needs. Lebanon has also
benefited from humanitarian and rehabilitation programmes directed principally to displaced
persons affected by civil war.

Morocco

The capacity for absorption of MEDA funds by Morocco has been very satisfactory. Total
commitments for the period reached approximately

650 M.

€

In terms of economic reform, a structural adjustment facility has been put in place with the
cooperation of the World Bank (
120 M). A new government came into power in March
1998. As a result of the political reorientation which followed, Morocco experienced a delay in
the disbursement of funds, the last of which was paid in December 1999.

€

€

€

5 M), the Creation of Guarantee Funds (
€

To complement the Structural Adjustment Facility, several technical assistance programmes
are contributing to an improved economic environment in the private sector. Priority areas
30 M), Standardisation and
include Privatisation (
15.5 M), Support for the National Agency for the Regulation of
the Management of Quality (
Telecommunications (
38 M),
700.000) Support
Support for Professional Associations (
for the National Plan for Geological Mapping (
5 M) in addition to an information centre for
SMEs, Euro-Maroc Enterprise (EME), which was started with MEDA funds in 1995. In
addition to these projects, risk capital administered by the EIB has been granted in view of the
€
new competitiveness visible in Moroccan firms (

5 M), a Support Programme for Professional Training (

5 M) a Micro-Credit Pilot Project (

45 M).

€

€

€

€

€

€

Support for the socio-economic balance is mostly concerned with the reduction of inequalities
in the living conditions of rural populations, especially in the North of the country: Water
purification in rural areas (
30 M), Integrated Rural
€
20 M), Integrated Development of Forest
Development (
€
Zones (
80 M),
€
29 M), Support for
Support for coastal fishing (
€
Development NGOs (

4 M) Support for the Social Development Ministry (

21 M), Hydro-Agricultural Land Reform (

40 M), Mediterranean Coastal Road (

24 M), Support for Basic Education (

40 M), Rural Paths and Roads (

28 M), Support for Basic Health (

2 M).

€

€

€

€

€

€

Other projects are directed specifically towards the improvement of living standards in towns:
Aid for Young People and Sport (
8 M,
13 M,
supplemented by the EIB), the Sanitary Systems for Meknès, Settat and Agadir (

6 M), Sanitary Systems for Major Towns (
€

€

€

22

supplemented by the EIB), Public Housing in Tangiers (
€
(

3 M), Cultural institutions (

5 M).

€

€

7 M), Aid to Employment creation

Syria

Implementation of cooperation with Syria under MEDA was frozen pending ratification by
Syria of the Framework Financing Convention. The following projects have been agreed.

A number of programmes have been agreed to support economic transition. The programme
€
for Modernisation of the Ministry of Finance (
10.5 M) aims to modernise legislation and
regulation concerning fiscal policy, budgetary reform, customs tariffs and practices; provide
assistance in the reorganisation of the administration to ensure the implementation of reform
policies.

€

The Business Sector Support Programme II (
10 M) focuses on improving the performance of
local businesses while increasing output, quality, exports and employment to develop EU-
Syrian business co-operation; developing capacities in consultancy and advisory services;
improving the business environment with a view to developing local businesses.
€

The Business Administration School (
Syrian enterprises by promoting state-of-the-art management, education and training.

14 M) will contribute to an improved management of

the Syrian
The Institutional and Sector Modernisation Facility (
administration in formulating and implementing comprehensive economic modernisation;
establish a high-level discussion forum on economic policy and strategy, and create an
atmosphere of change through upgrading administrative capacities and services provided by
the Syrian public sector, complementing the other economic support and modernisation
programmes financed by the EU.

21 M) will assist

€

The Municipal Administration Modernisation Programme (
in the delivery of services by selected municipalities to their inhabitants.

18 M) is aimed at an improvement

€

Other programmes concern support for socio-economic balance. The Telecommunications
10 M) aims to modernise the telecom sector and its
Sector Support Programme (
organisation, strengthen its institutional,
financial and managerial competence; deliver
improved, sustainable services to the public; upgrade technical, managerial and operational
procedures and skills.

€

11 M) aims to improve the efficiency of generation,
The Power Sector Action Programme (
transmission and distribution of electrical energy, improving the financial and managerial
efficiency, autonomy and self-reliability of electrical utilities, promoting the application of tarifs
for the provision of electrical energy services, reflecting the actual cost of supply.

€

Other programmes cover the forestry sector, cultural tourism and archaeological training.

Tunisia

The Association Agreement with Tunisia was the first to enter into force, and Tunisia has even
anticipated its tariff dismantlement by 2 years. The same applies to the restructuring of its
economy. Even before the signature of the Association Agreement, programmes were set up to
prepare Tunisian industry for future competition from Europe.

23

The economic transition and reform process has been supported by two structural
180 M) covering reforms essentially in the social field, privatisation of
adjustment facilities (
public companies and financial sector modernisation.

€

technical assistance projects have been launched to strengthen private sector
Several
development: a project in support of the Tunisian privatisation programme (
10 M), a project
4 M), a project to support the upgrading of the
in favour of external direct investment (
€
vocational training sector (
10 M).
Two risk capital operations have been prepared by the EIB in support of privatisation and
upgrading of SMEs.

45 M) and a project to enhance the Tunisian economy (

€

€

€

The socio-economic balance has been supported by two technical assistance projects
€
concerning rural development (
€

50 M) and job creation (

A sectoral adjustment facility (
reform. EIB environment operations have benefited from interest rate subsidies (

40 M) has been financed in support of health insurance sector

29,8 M).

9,6 M).

€

€

Turkey

The overall objectives of the activities financed under the MEDA programme in Turkey were
to support economic development and transition in the light of the EC-Turkey Customs Union
and at promoting a better socio-economic equilibrium in Turkey.

€

376 M was committed during the period 1996-1999. 55 co-
For these goals a budget of
operation projects were financed. Due to supplementary restrictions for Turkey imposed by the
EP in 1996, the project identification only picked up speed as of 1998. The absence of a signed
Framework Agreement (signed only on 19.3.1999) further delayed the actual implementation
of projects.

The projects focus on the following priority areas:

42
Modernisation and promotion of the private sector. The 10 projects financed (in total
M) support Small and Medium Sized Enterprises (SMEs), the development of the productive
infrastructure, institutional co-operation and assistance for privatisation. In this respect the
creation of Business Centres in Izmit, Izmir and Gazientep and a project on the effective
enforcement of intellectual property rights were supported. Furthermore, risk capital for SMEs
was provided through the EIB.

€

Public health. The 5 projects identified under this priority (in total
on the improvement of
prediagnosis for women and a rehabilitation project of two districts in Istanbul.

95 M) include a project
the reproductive health services, on food inspection, cancer

€

Education. The 6 projects supported (in total
182 M) will help to improve and reform in
particular the system of basic and vocational education and increase the quality of the
education provided.

€

Environment. The 5 projects identified (in total
waste water treatment.

€

42 M) focus mainly on the improvement of

Human rights, strengthening of democracy and civil society. Under this priority 29
projects have been supported (in total
14 M). Amongst the subjects covered by the projects

€

24

are community empowerment, consumer protection, child protection, human rights, women´s
rights and development, press and EU-Turkish relations. Except for a project aimed at the
€
development of the civil society in Turkey (
8 M) and a community empowerment project
€
(
1 M for information & education
activities, training, awareness campaigns, etc.

1.3 M) all projects had an EU contribution below

€

25

West Bank and Gaza Strip

The Palestinian Authority participated in the Barcelona Conference in November 1995 and the
Palestinians continue as full and equal partners in the Barcelona process and are eligible for
MEDA funding. In addition, it was considered that due to the particular conditions in the West
Bank and Gaza Strip (WBGS), a specific instrument, established following the signature of the
Declaration of Principles in 1993, should be retained.

Assistance to the Palestinians for the period 1995-1999 amounts to approximately
88 M per
year in grants. The priority areas for co-operation are infrastructure, institution building
and private sector development; The development assistance in these areas, both directly and
indirectly, aim at reaching the overall objectives of the Barcelona process.

€

€

The EC has set up and is implementing the Municipal Support Programme (phase 1-3)
amounting to
45 M; the programme aims at upgrading infrastructure through small-scale
projects (water supply, sewerage, road rehabilitation) in the municipalities of the WBGS; in
addition, the EC has committed
21 M to the Local Rural Development Programme; the
project's overall objective is the improvement of living standards of people living in selected
rural areas. In late 1999, the EC committed itself to the construction of the Cargo Facility at
the Gaza Airport (
25 M) - the prerequisite for any independent Palestinian trade with third
parties from the airport.

€

€

In the area of private sector development, the Palestinian Development Fund (PDF) is a
development agency established to promote the growth of Palestinian small and medium-sized
enterprises. The PDF provides medium-term loans and associated financial and investment
20 M to the PDF that, despite a
services. As from 1995 the EC has committed around
difficult economic environment, aims at supporting the establishment of a more stable
economic structure and to reduce dependence on the Israeli economy.

€

MEDA REGIONAL PROGRAMME

Political

Senior (Foreign Ministry) Officials have pursued the dialogue on political and security matters
meeting regularly, at least 4 times a year. In particular they have agreed on a number of
partnership building measures and have made considerable progress on the Charter on
Peace and Stability.

The guidelines for the Charter on Peace and Stability were agreed at Stuttgart (April 1999) and
Foreign Ministers made a commitment to have the text ready by Barcelona IV while formal
adoption will take place as soon as political conditions allow.

The following partnership building measures have been agreed :

–

–

–

–

training seminars for diplomats,

network of foreign policy institutes (EuroMeSCo)

cooperation among civil protection services on natural and man-made disasters

register of bilateral agreements

26

–

exchange of information on international conventions on human rights, disarmament,
humanitarian rights.

MEDA finances the civil protection project, EuroMeSCo and the training seminars for
diplomats (c

3 M).

€

Three ad hoc senior officials meetings have been held to discuss cooperation in the fight
against terrorism.

Economic and Financial

industrial cooperation,

Regional fora have been set up covering the priority sectors agreed by Ministers for regional
cooperation:
transport and
information society. In each case sectoral experts from the 27 meet to agree the guidelines for
regional cooperation programmes, subject
to endorsement by the Euro-Mediterranean
Committee. The emphasis in regional cooperation is on policy dialogue, networking,
promoting the interconnection of
infrastructure and reforming the legal and
administrative framework to encourage pro-competitive regulation.

environment, water,

energy,

Industrial cooperation: four main axes have been identified –investment, innovation, single
market measures and SMEs. Cooperation projects have already been formulated, notably a
network of investment promotion agencies (
4 M), or are in the course of formulation, such as
5-10 M) and a programme on quality and innovation for
a single market action programme (
10-15 M), both to be launched in 2000. MEDA has so far financed the MEDSTAT
SMEs (
20 M), a number of economic networks
programme of cooperation among statistical offices (
6 M) and a network of
(chambers of commerce, SME organisations, industrial federations c
2 M).
economic institutes FEMISE (

€

€

€

€

€

€

Environment: a Short and Medium Term Priority Action Programme (SMAP) has been
€
7 M). The second series is to be launched in
agreed and a first series of projects launched (
2000 (

20 M).

€

Water: the general lines of an action programme have been agreed and a first series of projects
is to be launched in 2000 (

20 M).

€

Energy : projects have been launched on legal and administrative framework ; dialogue on
policy,
solar energy
applications ; training network ; and joining up electricity grids (total c

interconnection and analysis ; energy and urban environment ;
10 M).

€

Transport : a first series of maritime transport projects was launched in 1997 (
integrated transport project should be launched in 2000 (?

10 M).

€

€

9 M) ; an

3 M) and
Information society: a project has been launched on the regulatory framework (
the major EUMEDIS programme (networking, interconnection and pilot projects on specific
applications of information technology) is operational (

45 M).

€

€

Social, Cultural and Human

Culture: priorities for action have been agreed at two meetings of Culture Ministers. The
Euro-Med Heritage programme of cooperation on the cultural heritage is operational (
17 M)
and Euro-Med Heritage II is to be launched in 2000 (

20 M).

€

€

27

Audio-visual: the Euro-Med Audio-visual programme on cooperation in the field of radio,
television and cinema is operational (

20 M).

€

Youth: the Euro-Med Youth programme for youth exchanges is operational (

€

6 M).

PROGRESS OF NEGOTIATIONS ON
EURO-MEDITERRANEAN ASSOCIATION AGREEMENTS

PARTNER

CONCLUSION OF
NEGOTIATIONS

SIGNATURE
OF
AGREEMENT

ENTRY INTO
FORCE

Tunisia

Israel

Morocco

PLO for the benefit of
the Palestinian
Authority

June 1995

July 1995

March 1998

September 1995

November 1995

June 2000

November 1995

February 1996

March 2000

December 1996

February 1997

July 1997

Jordan

Egypt

Lebanon

Algeria

Syria

-

-

-

-

-

April 1997

November 1997

-

-

-

-

Negotiations conclu-
ded in June 1999

Negotiations
progress

Negotiations
progress

Negotiations
progress

in

in

in

28