Proposal for a Council Decision on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Lithuania
Date: 2001-11-13
Institutions: European Commission
Subjects: European Union, Lithuania, accession to the European Union, aid system, cooperation policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.11.2001
COM(2001) 657 final

Proposal for a

COUNCIL DECISION

on the principles, priorities, intermediate objectives and conditions contained in the
Accession Partnership with Lithuania

(presented by the Commission)

EXPLANATORY MEMORANDUM

At its meeting in Luxembourg in December 1997, the European Council decided that the
Accession Partnership would be the key feature of the enhanced pre-accession strategy,
In
mobilising all forms of assistance to the candidate countries within a single framework.
this manner,
the Community targets its assistance towards the specific needs of each
candidate so as to provide support for overcoming particular problems with a view to
accession.

The first Accession Partnership for Lithuania was decided in March 1998.
In line with the
provisions laid down in Regulation (EC) No. 622/981 (article 2), the Partnership was updated
a first time in December 1999, taking into account further developments in Lithuania. Based
on the analysis of the Commission's 2001 Regular Report on progress made by Lithuania
towards accession, the Commission considers that the time has come for a further revision of
the priorities and intermediate objectives identified in the Accession Partnership. The present
proposal for such a revision draws on the findings of the Commission's 2001 Regular Report
on progress made by Lithuania towards accession.

The attached decision does not have financial implications.

In view of the above, the Commission invites the Council to adopt the attached decision.

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OJ L 85, 20.3.1998, p. 1

2

Proposal for a

COUNCIL DECISION

on the principles, priorities, intermediate objectives and conditions contained in the
Accession Partnership with Lithuania

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

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

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

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 622/98 sets out that the Council is to decide, by a qualified
majority and following a proposal from the Commission, on the principles, priorities,
intermediate objectives and conditions contained in the individual Accession
Partnerships, as they are submitted to each applicant State, as well as on subsequent
significant adjustments applicable to them;

Community assistance is conditional on the fulfilment of essential elements, and in
particular on the respect of the commitments contained in the Europe Agreements and
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 assistance;

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

The 2001 Commission's Regular Report presents an objective analysis on Lithuania's
preparations for membership and identifies a number of priority areas for further work;

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

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OJ L 85, 20.3.1998, p. 1

3

(7)

Lithuania needs to ensure that the appropriate legal and administrative structures
needed for the programming, co-ordination, management, control and evaluation of
EC pre-accession funds are in place;

HAS DECIDED AS FOLLOWS:

Article 1

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

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

Article 2

Article 3

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

Done at Brussels,

For the Council
The President

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ANNEX

1.

INTRODUCTION

At its meeting in Luxembourg in December 1997, the European Council decided that the
Accession Partnership would be the key feature of the enhanced pre-accession strategy,
mobilising al forms of assistance to the candidate countries within a single framework. In this
manner, the Community targets its assistance towards the specific needs of each candidate so
as to provide support for overcoming particular problems with a view to accession.

The first Accession Partnership for Lithuania was decided in March 1998. As provided for in
Regulation (EC) No. 622/98 (article 2), the Accession Partnership was updated a first time in
December 1999, taking into account further developments in Lithuania. The present revision
is based on a proposal by the Commission following consultation with Lithuania, and draws
on the analysis of the Commission's 2001 Regular Report on progress made by Lithuania
towards accession.

2.

OBJECTIVES

The purpose of the Accession Partnership is to set out in a single framework the priority areas
for further work identified in the Commission’s 2001 Regular Reports on the progress made
the financial means available to help
by Lithuania towards membership of the Union,
Lithuania implement these priorities and the conditions which will apply to that assistance.
The Accession Partnership provides the basis for a number of policy instruments which will
be used to help the candidate States in their preparations for membership. These include inter
alia the updated National Programme for the Adoption of the Acquis prepared by Lithuania,
the pre-accession fiscal surveillance procedure, the Pre-accession Economic Programme, the
Pre-accession pact on organised crime as well as the National Development Plans, the Rural
Developments Plans, a national employment strategy in line with the European Employment
Strategy, and sectoral plans necessary for the participation in the Structural Funds after
membership and for the implementation of ISPA and SAPARD before accession. Each of
these instruments is different in nature and is prepared and implemented according to specific
procedures and may be supported by pre-accession aid. They are not an integral part of this
Partnership but the priorities they contain will be compatible with it.

3.

PRINCIPLES

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

•

•

•

that the candidate State has achieved stability of institutions guaranteeing democracy, the
rule of law, human rights and respect for and protection of minorities;

the existence of a functioning market economy, as well as the capacity to cope with
competitive pressure and market forces within the Union;

the ability to take on the obligations of membership, including adherence to the aims of
political, economic and monetary union.

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At its meeting in Madrid in 1995, the European Council stressed the need for the candidate
States to adjust their administrative structures to ensure harmonious operation of Community
policies after accession and at Luxembourg, in 1997, 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. The Feira and Gothenburg European Councils in 2000 and 2001
respectively confirmed the vital importance of the applicant countries’ capacity to implement
and enforce the acquis, and added that this required important efforts by the applicants in
strengthening and reforming their administrative and judicial structures.

4.

PRIORITIES AND INTERMEDIATE OBJECTIVES

The Commission’s Regular Reports have highlighted, besides the progress already made, the
extent of the efforts which still have to be made in certain areas by candidate States to prepare
for accession. This situation requires the definition of intermediate stages in terms of
priorities, each to be accompanied by precise objectives to be set in collaboration with the
states concerned, the achievement of which will condition the degree of assistance granted
and the progress of the negotiations under way with Lithuania. The priorities listed in the
revised Accession Partnership have been selected on the basis that it is realistic to expect that
Lithuania can complete or take them substantially forward over the next two years (2002 –
2003). Within this list, issues that require particularly urgent action have been highlighted as
such. The progress made in meeting the priorities of the 1999 Accession Partnership is
assessed in the 2001 Regular Report. This assessment has been used in formulating the
priorities for the current Partnership.

Lithuania submitted an updated version of its National programme for the Adoption of the
Acquis (NPAA) in June 2001. The NPAA sets out a timetable for achieving priorities and
intermediate objectives, based on the 1999 Accession Partnership, as well as necessary
administrative structures and financial resources.

for Lithuania’s membership
The Accession Partnership indicates the priority areas
preparations. Lithuania will nevertheless have to address all issues identified in the 2001
Regular Report.
It is also important that Lithuania fulfils the commitments of legislative
approximation and the implementation of the acquis in accordance with the commitments
made under the Europe Agreement, and in the context of the negotiation process. It should be
recalled that incorporation of the acquis into legislation is not in itself sufficient; it will also
be necessary to ensure that it is actually applied to the same standards as those which apply
within the Union. In all of the areas listed below there is a need for credible and effective
implementation and enforcement of the acquis.

Drawing on the analysis of the Commission’s Regular Report, the following priorities and
intermediate objectives have been identified for Lithuania. These priorities are presented in
accordance with the structure of the Regular Report.3

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The order of presentation is that used as from the 2000 Regular Reports.

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Political criteria

Democracy and the rule of law

– Consolidate a modern, independent, professional and efficient civil service, notably by
inter-

training, an appropriate level of

remuneration and greater

ensuring further
departmental co-ordination.

– Complete judicial reform in particular through the adoption of the new Law on Courts;
duly implement the Civil Code and the Law on Administrative Court Proceedings; adopt
the new Code of Criminal Procedures and ensure its due implementation as well as that of
the Criminal Code; continue training of specialised judges and prosecutors including in
improve working conditions at courts (computerisation and
acquis related matters;
infrastructure), in particular as regards Administrative Courts and Regional Courts; ensure
due implementation of the law on legal aid so as to widen the availability of legal aid.

– Adopt and start implementing the anti-corruption strategy; adopt and start implementing a
new Law on Corruption Prevention, complete and start implementing the Code of Ethics
for Civil Servants; ratify the relevant international anti-corruption conventions.

Economic criteria

- Take measures to reduce unemployment, in particular long-term unemployment, notably
by promoting adequate re-training and improving the business environment with a view to
attract green-field investments and enhance the creation of new enterprises.

- Complete the large-scale privatisation process, including the remaining state-owned bank

and the energy utilities.

– Ensure implementation and enforcement of the enterprise restructuring law and the
legislation on bankruptcy, in particular by continuing training efforts in the fields of
enterprise risk assessment and evaluation of enterprise restructuring plans.

– Implement the strategies adopted for the development of industries and SMEs and continue

improvement of business support infrastructure.

- Complete the remaining part of land titling and registration and further support land market

development; consolidate small land tenures.

- Continue with the social security reform in a sustainable way for public finances.

Ability to assume the obligations of membership

Free movements of goods

– Complete the process of the transposition and effective implementation of all New
Approach directives and traditional sectoral legislation, in particular abolish pre-marketing
authorisation on detergents and foodstuffs, and gradually replace the old market
authorisations on pharmaceuticals by the new ones complying with the transposed EC
legislation.

– Proceed with the establishment of a Standards association and promote a stronger
reinforce national
industry in the standards preparation process;

involvement of

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accreditation system; reinforce the State Metrology Service and improve operational
capacities and know-how of the accredited calibration laboratories; strengthen co-operation
between the institutions involved in market surveillance activities.

– Complete adoption of EN standards.

– Complete alignment of the public procurement

legislation and ensure its effective
implementation, in particular by further strengthening the Public Procurement Agency, and
establishing an information system for the monitoring of procurements.

Proceed with screening of legislation in the non-harmonised area to ensure that it is in
compliance with Articles 28-30 of
the EC Treaty and complete administrative
arrangements for the future monitoring in this area.

Free movement of persons

- Complete alignment of mutual recognition of professional qualifications and diplomas and
further develop required administrative structures, education and training programmes.

- With respect

to professional qualifications obtained before harmonisation, Lithuania
should give priority to introducing measures to ensure that all its professionals can, from
accession, meet the requirements laid down by the directives.

Reinforce the administrative structures for the co-ordination of social security.

Freedom to provide services

– Reinforce supervision of financial services.

– Implement Law on Third Party Motor Liability Insurance.

– Complete the process of alignment in the field of data protection; complete reorganisation
of the State Data Protection Inspectorate, ensure its full independence; strengthen the
administrative capacity, in particular through the provision of training.

Free movement of capital

– Abolish the restrictions on cross-border transfer of means of payment and on investment

rules for pension funds and insurance companies.

– Adopt the constitutional amendments on access to farmland ownership as planned.

– Strengthen and improve co-ordination of the institutions responsible for the enforcement of

the prevention of money laundering.

– Ensure compliance with the Recommendations of the Financial Action Task Force.

Company law

– Establish and ensure the efficient functioning of the Central Register of Legal Entities.

– Establish the Board of Accounting, improve qualifications of specialists.

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-
– Complete the process of alignment with the acquis on patents; continue training of the
State Patent Bureau staff in the field of trademark protection; ensure adequate enforcement
of the Law on Trademarks; implement the Strategy on the Enforcement of Copyright and
Related Rights; further strengthen administrative capacity of collective administration
regards the
associations and the Division of Copyright and Related Rights as
implementation of international conventions.

– In need of particular urgent action: strengthen administrative capacity of enforcement
bodies of Intellectual and industrial property rights and increase efforts to fight against
piracy and counterfeiting. Improve co-operation among enforcement bodies notably the
Police, Customs and the Judiciary. Strengthen administrative capacity at the border and
ensure proper enforcement of border legislation. Intensify training for enforcement bodies
including judges and prosecutors.

Competition policy

– Complete the legislative framework, strengthen the administrative capacity of

the
Competition Council (in particular as regards state aid control); ensure enforcement of the
rules in anti-trust and state aid; maintain the state aid inventory and prepare the annual
reports; increase awareness of the rules among all market participants and aid grantors;
intensify the training of the judiciary in the competition field.

Agriculture

– Up-grade the capacity of agricultural administration, in particular of the Market Regulation
Agency for Agriculture and Food Products, and complete preparations for the enforcement
and practical application of the management mechanisms of the Common Agricultural
Policy, in particular the Integrated Administration and Control System and the Paying
Agency for the handling of Common Agricultural Policy expenditure.

– Reinforce

the

implementation,
structures needed for
management, monitoring, control and evaluation of EC funded rural development
programmes.

administrative

the design,

– Continue alignment of veterinary and phytosanitary legislation and upgrade inspection
arrangements, particularly at future external borders. The identification and registration of
animals needs to be completed.

– Reinforce the technical capacity of testing laboratories in order to ensure their accreditation

in order to implement the Hazard Analysis Critical Contact Point requirements.

– Continue the restructuring of food processing establishments including meat, canned fruit
and vegetables and their upgrading so that they are in a position to respect EC food safety
standards.

– Implement the food safety strategy.

Fisheries

Complete the establishment of adequate administrative structures and equipment at central
and regional level that can ensure the implementation of the common Fisheries Policy,
the
including management of resources,

inspection and control of fishing activities,

9

-
market policy, structural programmes co-financed by the Financial Instrument
for
Fisheries Guidance, a fishing vessel register and a management plan for the fleet capacity
in accordance with available resources.

Transport policy

– Continue legal alignment and strengthen administrative capacity in road transport
(particularly on social legislation, fiscal harmonisation and technical and safety standards),
railway transport (with a view to the implementation of the revised railway acquis) and air
transport.

– Continue to align and implement maritime transport legislation, with particular emphasis
on completing the institutional structure and strengthening the administrative capacity in
order to improve the Flag State performance in the field of maritime safety.

Taxation

– Complete legislative alignment with particular attention to the VAT (including the
transitional VAT regime) and excise legislation, especially as regards VAT exemptions
and levels of excise duties.

– Ensure that existing and future legislation complies with the principles of

the Code of

Conduct for Business Taxation.

– Strengthen the administrative capacity and control procedures, and improve the
administrative co-operation and mutual assistance in order to be able to implement the
acquis.

– Develop IT systems so as to allow for the exchange of computerised data with the

Community and its Member States.

Statistics

– Further improve quality and coverage of statistics; ensure that adequate resources are

available to further strengthen statistical capacities, including at regional level.

Employment and social policy

– Complete transposition of the social acquis, notably through the adoption of the new
Labour Code, and ensure its proper implementation through the appropriate enforcement
structures, including the labour inspectorates, according to agreed timetable. Complete
alignment in the field of equal treatment for men and women. Adopt legislation against
discrimination and develop a timetable for its implementation.

– Continue to support social partners’ capacity building efforts in particular with a view to
their future in the elaboration and implementation of the EU employment and social policy,
including the European Social Fund, notably through autonomous social dialogue.

– Adopt the law on Public Health and continue the implementation of the public health care
reform, and in particular develop further the health monitoring system; finalise the
development of measures in the area of surveillance and control of communicable diseases.

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– Continue preparations for a national strategy, including data collection, with a view to

future participation in the European strategy on social inclusion.

Energy

– Implement the recommendations contained in the Council report on “Nuclear Safety in the

Context of Enlargement” with due regard to the priorities assigned in the report.

– Continue the implementation of the National Energy Strategy; start and complete, as a
matter of urgency, a revision of the National Energy Strategy allowing for a decision on
the closure date of Unit 2 of the Ignalina Nuclear Power Plant in a manner compatible with
Lithuania's timetable for accession.

– Advance the legal, technical, economic and social preparation for the definitive closure

(before 2005) and decommissioning of Unit 1 of the Ignalina Nuclear Power Plant.

– Strengthen the resources and capacities of the national regulatory authority for nuclear

energy.

– Maintain a high level of nuclear safety throughout the decommissioning phases of the

Ignalina Nuclear Power Plant.

– Continue the alignment process on oil stocks; make progress in ensuring the actual
of stocks, including the necessary investments, towards the level of 90

constitution
days;develop the necessary administrative capacity.

– Complete the alignment process with regard to internal energy market (electricity and gas);
establish an independent transmission system operator (electricity); eliminate remaining
price distortions; strengthen the regulator (National Control Commission for Prices and
Energy).

– Continue the refurbishment of conventional power plants in line with the environmental

acquis.

– Step up the improvement of energy efficiency and the use of renewable energy sources and

strengthen the relevant institutions in this area.

Telecommunications and information technologies

– Ensure the effective functioning of the Communications Regulatory Authority, including
the structure in charge of postal services once it is established, by qualified staff for its new
tasks and appropriate financing.

– Ensure compliance with the telecommunications acquis,

in particular as

regards

interconnections procedures.

Culture and audio-visual policy

– Continue to strengthen administrative capacity of the relevant authorities.

Regional policy and co-ordination of structural instruments

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– Complete the legal and administrative framework which allows for the implementation of

the acquis in this area, in particular with regard to financial management and control.

– Ensure effective inter-ministerial co-ordination and appropriate partnership with a view to

both programming and implementation.

– Prepare a Single Programming Document in line with the Structural Funds regulations,

including an ex-ante evaluation.

– Ensure that the designated managing authority and paying authorities will progressively
build up their capacity in order to be able, upon accession, to fulfil their responsibilities
and deliver the tasks assigned to each of them according to the Structural Funds
Regulations.

– Set up evaluation and monitoring systems.

– Develop the technical preparation of projects eligible for Structural and Cohesion Funds

assistance (project pipeline).

Environment

– Complete transposition of the acquis.

– Continue implementation of the acquis, in particular as regards sulphur content in liquid
fuels, volatile organic compounds emissions resulting from storage and distribution of
petrol, waste management (in particular waste oils, landfills and packaging and packaging
waste), urban waste water treatment, drinking water (in particular by solving the problem
of fluoride exceedance), dangerous substances discharged into the aquatic environment (by
establishing inventories and pollution reduction programmes) and nature protection
(including the preparation of a list of sites of Community importance and designating
special protection areas).

– Continue strengthening the administrative and monitoring capacity, both at central and

local level, in particular for chemicals and GMOs.

– Continue integration of environmental protection requirements into the definition and
implementation of all other sectoral policies with a view to promoting sustainable
development.

Consumer protection and health

– Further strengthen the market supervision institutions, strengthen the National Consumer

Rights Protection Council.

Co-operation in the field of justice and home affairs

– Ensure the implementation of the Schengen Action Plan.

– Complete border demarcation with Belarus and Russia (border with Kaliningrad) and .
strengthen border control, including maritime border; continue training for border guards,
improve infrastructure and equipment.

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– Complete alignment with acquis on visa policy, asylum and migration,
administrative capacity of competent bodies and improve the appeals system.

reinforce

– Complete reorganisation and modernisation of police service and further develop the
professional training system for the police; establish a network of police liaison officers;
reinforce bilateral co-operation with other EU countries; strengthen co-operation among all
bodies (including the judiciary) in the fight against organised crime; ensure effective
implementation of anti-money laundering measures.

– Implement the national drugs strategy and strengthen administrative capacity of and co-
ordination among all relevant bodies (ensuring a clear division or responsibilities);
complete the legal framework for international co-operation, prepare for participation in
the work of the European Information Network on drugs and drug addiction.

– Take the necessary steps in order to ensure the implementation of the Community

instruments in the area of judicial co-operation in civil matters.

– Ensure that the pre-requirements for the conclusion of a co-operation agreement with

Europol are met.

– Continue preparation for future participation in the Schengen Information System, by

developing various national databases and registers.

– Take the necessary steps to align the legislation with the Convention on protection of the

Communities' Financial Interests and its Protocols.

Customs union

– Complete the process of alignment with the acquis; complete the process of restructuring

of regional customs offices.

– In need of particularly urgent action: accelerate the implementation of the IT strategy of
the Lithuanian customs administration. Develop IT systems so as to allow for the exchange
of computerised data between the EC and Lithuania.

– Reinforce customs activities at the border, and co-operation with other services at the
border (Border Guards, veterinary and phytosanitary services). Implement the customs
ethics policy.

External relations

– Take the necessary measures to ensure that any international treaties or agreements
including bilateral investment treaties incompatible with the acquis are renegotiated or
terminated by accession.

Financial control

Implement the methodology for financial management and control and for internal audit
throughout the government in a harmonised way.

Train human resources in the area of Public Internal Financial Control, the National Fund
included.

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-
– Adopt and implement external and internal audit standards in line with internationally
approved and EC compliant standards, adopt control and audit manuals, prepare audit trails
and methods for reporting, monitoring and accounting of national and EC funds.

– Complete the legislative framework of the State Control Office including the enhancement

of its independent status.

Designate a contact point for the protection of the Communities' financial interests and
start co-operating effectively with OLAF through this contact point.

Strengthen the fight against fraud.

– Continue efforts to ensure the correct use, control, monitoring and evaluation of EC pre-
accession funding as a key indicator of Lithuania's ability to implement the financial
control acquis.

5.

PROGRAMMING

For the period 2000-2006, in addition to Phare, financial assistance to Lithuania comprises
support for pre-accession measures for agriculture and rural development through the pre-
accession instrument SAPARD (Council Regulation (EC) No 1268/99, OJ L 161, 26.6.1999,
p.87); and support for infrastructure projects in the fields of environment and transport
through the structural instrument ISPA (Council Regulation (EC) No 1267/99, OJ L 161,
26.6.1999, p. 73), which gives priority to measures similar to the cohesion fund in the pre-
accession period. Under these national allocations, Lithuania can also fund part of its
participation in community programmes
including the Research and Technological
Development Framework Programmes and programmes in the areas of Education and
Enterprise.
In addition Lithuania will have access to funding from multi-country and
horizontal programmes directly related to the acquis. Joint financing by the applicant States
is systematically required for all investment projects. Since 1998 the Commission has worked
with the European Investment Bank and the International Financial Institutions, in particular
the European Bank for Reconstruction and Development and the World Bank, with a view to
facilitating the co-financing of projects relating to pre-accession priorities.

6.

CONDITIONALITY

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

7.

MONITORING

The implementation of the Accession Partnership is monitored in the framework of the
Europe Agreement. As underlined by the European Council in Luxembourg, it is important
that the institutions of the Europe Agreement continue to be the framework within which the
adoption and implementation of the acquis can be examined. The relevant sections of the
Accession Partnership are discussed in the appropriate sub-committee. The Association

14

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-
Committee discusses overall developments, progress and problems
in meeting the
Partnership’s priorities and intermediate objectives as well as more specific issues referred to
it from the sub-committees.

The PHARE Management Committee ensures that actions financed under all three pre-
accession instruments, PHARE, ISPA, and SAPARD, are compatible with each other as well
as with the Accession Partnerships as laid down in the Co-ordinating Regulation (Council
Regulation (EC) No 1266/99, OJ L 161, 26.6.1999, p. 68).

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

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