2002/84/EC: Council Decision of 28 January 2002 on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Cyprus
Date: 2002-01-28
Institutions: Council of the European Union
Subjects: Cyprus, EU aid, accession to the European Union, cooperation policy, enlargement of the Union

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COUNCIL DECISION

of 28 January 2002

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

(2002/84/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

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

Having regard to the proposal from the Commission,

Whereas:

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

stated that

Regulation (EC) No 555/2000 complements Regulation
(EC) No 622/98 (2) which 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.

contained

commitments

Community assistance is conditional on the fulfilment of
essential elements, and in particular on the respect of
the
the Association
Agreement and on progress towards fulfilment of the
is
Copenhagen criteria. Where an essential element
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.

in

report presents an
regular
The 2001 Commission’s
objective
for
on Cyprus’s
membership and identifies a number of priority areas
for further work.

preparations

analysis

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Cyprus needs to ensure that the appropriate legal and
administrative structures needed for the programming,
coordination, management, control and evaluation of
Community pre-accession funds are in place.

The European Council at Helsinki underlined that a
political settlement will facilitate the accession of Cyprus
to the European Union.
If no settlement has been
reached by the completion of accession negotiations, the
Council’s Decision on accession will be made without
the above being a precondition. In this the Council will
take into account all relevant factors,

HAS DECIDED AS FOLLOWS:

Article 1

the principles, priorities,

In accordance with Article 1(2) of Regulation (EC) No
555/2000,
intermediate objectives
and conditions in the Accession Partnership for Cyprus are set
out in the Annex hereto, which forms an integral part of this
Decision.

Article 2

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

Article 3

This Decision shall take effect on the third day following that
of
the European
Communities.

its publication in the Official

Journal of

Done at Brussels, 28 January 2002.

In order to prepare for membership, Cyprus 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.

For the Council

The President

J. PIQU(cid:201) I CAMPS

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

in the framework of

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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 all 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 Cyprus was decided in March 2000. The present revision is based on a proposal
by the Commission following consultation with Cyprus, and draws on the analysis of the Commission’s 2001
regular report on progress made by Cyprus 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 by Cyprus towards membership of the
Union, the financial means available to help Cyprus implement these priorities and the conditions which will apply
to that assistance. This Accession Partnership provides the basis for a number of policy instruments which will be
used to help the candidate States in their preparations for membership. These include,
inter alia, the updated
national programme for the adoption of the acquis prepared by Cyprus, the pre-accession fiscal surveillance
procedure,
the pre-accession pact on organised crime, a national
employment strategy in line with the european employment strategy, and sectoral plans necessary for the
participation in the Structural Funds after membership. 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.

the pre-accession economic programme,

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:

(cid:151) that the candidate State has achieved stability of institutions guaranteeing democracy, the rule of law, human

rights and respect for and protection of minorities,

(cid:151) the existence of a functioning market economy, as well as the capacity to cope with competitive pressure and

market forces within the Union,

(cid:151) the ability to take on the obligations of membership, including adherence to the aims of political, economic

and monetary union.

At its meeting in Madrid 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

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and the progress of the negotiations under way with Cyprus. The priorities listed in the revised Accession
Partnership have been selected on the basis that it is realistic to expect that Cyprus can complete or take them
substantially forward over the next two years (2002 to 2003). Within this list, issues that require particularly
urgent action have been highlighted as such. The progress made in meeting the priorities of the 2000 Accession
Partnership is assessed in the 2001 regular report. This assessment has been used in formulating the priorities for
the current Partnership.

Cyprus submitted an updated version of
in
September 2000. The NPAA sets out a timetable for achieving priorities and intermediate objectives, based on the
2000 Accession Partnership, as well as necessary administrative structures and financial resources.

its national programme for the adoption of

the acquis (NPAA)

the priority areas

The Accession Partnership indicates
for Cyprus’ membership preparations. Cyprus will
nevertheless have to address all issues identified in the 2001 regular report. It is also important that Cyprus fulfils
the commitments of
legislative approximation and the implementation of the acquis in accordance with the
commitments made under the Association 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 2001 regular report, the following priorities and intermediate
objectives have been identified for Cyprus. These priorities are presented in accordance with the structure of the
regular report (1).

Efforts for a political settlement

(cid:151) continue efforts to support a settlement under the auspices of the UN.

Economic criteria

(cid:151) accelerate liberalisation of a number of protected sectors of the economy, including telecommunications, air

transport, and energy,

(cid:151) improve conditions for enterprise and development, with particular attention to sectoral diversification and

small and medium-sized enterprises (SMEs).

Ability to assume the obligations of membership

F r e e m o v e m e n t o f g o o d s

(cid:151) in need of particularly urgent action: adopt framework legislation for the implementation of the new and

global approach principles,

(cid:151) pursue implementation of

alignment of remaining traditional sectoral
veterinary use, cosmetics and foodstuffs,

(cid:145)New approach(cid:146) Directives on the basis of
legislation,

this framework legislation; pursue
in particular in the field of pharmaceuticals for

(cid:151) reinforce horizontal administrative infrastructure and implementing capacity in the sectors covered by product

specific legislation,

(cid:151) develop and implement a market surveillance strategy,

(cid:151) align legislation on public procurement with the acquis concerning coverage and the review system,

(cid:151) proceed with screening of legislation in the non-harmonised area to ensure that it is in compliance with
Articles 28 to 30 of the Treaty and complete administrative arrangements for the future monitoring in this
area.

(1) The order of presentation is that used as from the 2000 regular reports.

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F r e e m o v e m e n t o f p e r s o n s

(cid:151) complete alignment of mutual recognition of professional qualifications and diplomas and further develop

required administrative structures, education and training programmes,

(cid:151) with respect to professional qualifications obtained before harmonisation, Cyprus should give priority to
introducing measures to ensure that all its professionals can, from accession, meet the requirements laid down
by the directives,

(cid:151) reinforce the administrative structures for the coordination of social security.

F r e e d o m t o p r o v i d e s e r v i c e s

(cid:151) in need of particularly urgent action: reinforce supervision of financial services,

(cid:151) proceed with bringing the cooperative and credit societies sector in line with the acquis.

F r e e m o v e m e n t o f c a p i t a l

(cid:151) continue to align rules on medium and long-term capital operations and prepare the way for subsequent

liberalisation of short-term operations,

(cid:151) liberalise foreign participation in financial services and tourism,

(cid:151) ensure compliance with the recommendations of the financial action task force,

(cid:151) complete alignment of legislation with second Directive against money laundering.

C o m p a n y l a w

(cid:151) align and enforce trade mark, copyright and neighbouring rights legislation; reinforce administrative capacity
especially by strengthening border controls. Maintain sustained efforts on enforcement of intellectual property
rights in particular on the fight against piracy and counterfeiting. Improve cooperation among enforcement
bodies; intensify training for enforcement bodies including judges and prosecutors.

C o m p e t i t i o n

(cid:151) in need of particularly urgent action: complete the legislative framework; bring State aid to international
business enterprises (offshore) in line with the acquis; further reinforce the administrative capacity (both with
respect to antitrust and State aid control); ensure enforcement of the rules in antitrust and State aid; maintain a
comprehensive State aid inventory and annual report; bring the existing aid schemes in line with the acquis
well before accession; increase awareness of the rules among all market participants and aid grantors; intensify
the training of the judiciary in the specific fields of antitrust and State aid.

A g r i c u l t u r e

(cid:151) set up the administrative structures needed for the design, implementation, management, monitoring, control

and evaluation of Community funded rural development programmes,

(cid:151) 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, as well as for the implementation and enforcement of veterinary and phytosanitary and food safety
legislation; bring the status and operation of the current monopolies in line with the acquis,

(cid:151) continue alignment of veterinary and phytosanitary legislation and upgrade inspection arrangements,

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(cid:151) complete transposition of legislation on transmissible spongiform encephalopathies, plant passports, maximum
including testing of animal

residue levels, animal nutrition and ensure implementation and enforcement,
diseases, in particular transmissible spongiform encephalopathies, in accordance with the acquis.

F i s h e r i e s

(cid:151) complete the establishment of adequate administrative structures and equipment at central and regional level
that can ensure the implementation of the common fisheries policy, including the market policy, structural
programmes co-financed by the Financial Instrument for Fisheries Guidance, and a fishing vessel register,

(cid:151) reduce the number of fishing vessels operating outside the Mediterranean Sea in accordance with agreed

objectives and timetable.

T r a n s p o r t p o l i c y

(cid:151) in need of particularly urgent action: complete alignment and implementation of maritime transport
legislation, taking into account its latest developments, in particular enforce maritime safety standards and
further strengthen the administrative capacity of the Department of Merchant Shipping, in accordance with the
Department’s 2000 to 2002 action plan in order to improve the flag State performance of the Cypriot fleet,

(cid:151) continue alignment and strengthen administrative capacity in road transport,

in particular transport of

dangerous goods, and in aviation (particularly air safety).

T a x a t i o n

(cid:151) ensure due alignment of the tax acquis, with particular attention to alignment of the VAT and excise duty
regimes, including the transitional VAT regime. In need of particular urgent action: proceed with alignment of
VAT and excise duty rates to that of the Community acquis and elimination of discriminatory measures against
imports from the Community,

(cid:151) ensure that existing and future tax legislation complies with the principles of the code of conduct for business

taxation,

(cid:151) strengthen administrative capacity including control and enforcement procedures, and administrative

cooperation and mutual assistance,

(cid:151) in need of particularly urgent action: develop IT systems so as to allow for the exchange of electronic data

with the Community and its Member States.

S t a t i s t i c s

(cid:151) further improve quality and coverage of statistics; ensure adequate resources are available to further strengthen

statistical capacities.

S o c i a l p o l i c y a n d e m p l o y m e n t

(cid:151) continue to support social partners’ capacity building efforts, in particular with a view to their future role in
the development and implementation of Community employment and social policy, including the European
Social Fund, notably through autonomous social dialogue. Strengthen administrative capacity in the fields of
labour law and equal opportunities,

(cid:151) complete alignment and ensure proper implementation of Community legislation in particular in the field of
equal
for women and men. Strengthen the related administrative and enforcement structures,
including the labour inspectorates and establish an independent guarantee fund for employees in the case of
employer’s insolvency. Adopt legislation against discrimination and develop a timetable for its implementation,

treatment

(cid:151) complete alignment and implement Community legislation on public health, and adapt the national structures

for surveillance and control of communicable diseases and health monitoring and information,

(cid:151) prepare a national strategy, including data collection, with a view to future participation in the European

strategy on social inclusion.

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E n e r g y

(cid:151) continue alignment of oil stocks requirements; make progress in ensuring the actual constitution of the stocks,
the level of 90 days; develop the

in storage capacity,

towards

including the necessary investments
administrative structure,

(cid:151) prepare for participation in the international energy market, notably concerning the electricity Directive;
eliminate remaining price distortions; establish a regulator and a common system operator for both
transmission and distribution,

(cid:151) improve energy efficiency: enhance the use of renewable energy, and strengthen the relevant institutions in this

area,

(cid:151) 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.

T e l e c o m m u n i c a t i o n s a n d i n f o r m a t i o n t e c h n o l o g i e s

(cid:151) adopt new law on telecommunications and postal services and introduce a comprehensive regulatory
interconnection, universal service, numbering and data

in particular in the fields of licensing,

framework,
protection; terminate monopoly for mobile voice telephony.

R e g i o n a l p o l i c y a n d c o o r d i n a t i o n o f s t r u c t u r a l i n s t r u m e n t s

(cid:151) in need of particularly urgent action: establish a territorial organisation allowing for

the effective

implementation of the Structural Funds Regulations,

(cid:151) prepare a coherent development plan as

the final plan; define the managing and paying authorities;

required by the Structural Funds Regulations; define the
improve the

implementation structures of
administrative capacity, in particular in terms of recruitment and training,

(cid:151) set up the required monitoring and evaluation systems for Structural Funds, in particular for ex-ante evaluation

and for the collection and processing of the relevant statistical information and indicators,

(cid:151) align with the specific financial management and control procedures for future Structural and Cohesion Funds

under the relevant Community Regulations,

(cid:151) develop the technical preparation of projects eligible for Structural and Cohesion Funds assistance (project

pipeline).

E n v i r o n m e n t

(cid:151) complete transposition of the acquis, with special emphasis on waste management,

(cid:151) continue implementation of the acquis, with special emphasis on urban waste water treatment and packaging

waste; develop an implementation plan for the water framework Directive,

(cid:151) continue strengthening the administrative and enforcement capacity, with special emphasis on nature

protection legislation,

(cid:151) continue integration of environmental protection requirements into the definition and implementation of all

other sectoral policies with a view to promoting sustainable development.

C o o p e r a t i o n i n t h e f i e l d o f J u s t i c e a n d H o m e A f f a i r s

(cid:151) continue efforts aiming at a fair and effective application of the law on asylum, in particular the provision for
manifestly unfounded claims. Ensure that an independent authority examines the asylum applications in
appeal; ensure that implementing rules and regulations are drafted in accordance with international and
European standards; enhance administrative capacities in the domain and improve overall conditions in
reception centres; establish a system for the integration of refugees,

(cid:151) complete alignment with common visa policy,

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(cid:151) ensure due implementation of the Schengen action plan, and continue preparation for future participation in

the Schengen information system by developing national databases and registers,

(cid:151) ensure due implementation of immigration legislation, in particular the proper application of immigration

procedures,

(cid:151) review the readmission agreements with neighbouring countries and their implementation in conformity with
the principle of (cid:145)non-refoulement(cid:146). Continue efforts to reinforce the technical equipment for border control,

(cid:151) maintain sustained efforts in the fight against money laundering, ensuring sufficient human resources and
qualified staff as well as training. Implement the national drugs strategy and improve the fight against drug
trafficking,

(cid:151) continue efforts to implement the data protection legislation,

(cid:151) improve the internal cooperation within the police and with other law enforcement agencies and with the

judiciary in particular to strengthen capacities to fight organised crime,

(cid:151) take the necessary steps in order to ensure the implementation of the Community instruments in the area of

judicial cooperation in civil matters,

(cid:151) ensure that the prerequirements to the conclusion of a cooperation agreement with Europol are met,

(cid:151) take the necessary steps to align the legislation with the Convention on the Protection of the Communities’

Financial Interests and its Protocols.

C u s t o m s u n i o n

(cid:151) accelerate legislative harmonisation including as regards the introduction of all customs regimes with economic
Implement the

impact and simplified procedures; strengthen the institutional and administrative capacity.
reform and modernisation programme of the customs department,

(cid:151) in need of particularly urgent action: continue the implementation of the IT strategy of the Cypriot customs
administration. Develop IT systems so as to allow for the exchange of computerised data between the
Community and Cyprus.

E x t e r n a l r e l a t i o n s

(cid:151) take the necessary measures to ensure that any international treaty or agreement incompatible with the acquis

is renegotiated or terminated by accession.

F i n a n c i a l c o n t r o l

(cid:151) further develop functional

independence for internal controllers/auditors at both central and decentralised

levels; complete work on an audit manual and on developing audit trails for the control of Community funds,

(cid:151) strengthen public financial control functions through the provision of adequate staff, training and equipment,

(cid:151) confirm a suitable contact point for OLAF for the protection of the Communities’ financial interests, and start

cooperation with OLAF through this contact point,

(cid:151) strengthen the fight against fraud,

(cid:151) continue efforts to ensure the correct use, control, monitoring and evaluation of EC pre-accession funding as a

key indicator of Cyprus’ ability to implement the financial control acquis.

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5. Programming

After the expiry on 31 December 1999 of
the fourth Financial Protocol concluded with Cyprus, Council
Regulation (EC) No 555/2000 replaced the financial protocols from 2000 onwards for a period of five years. The
total budget allocated to Cyprus for the period 2000 to 2004 adds up to EUR 57 million, of which one third of
each annual allocation is to be used for financing the (cid:145)bi-communal(cid:146) projects. The programming exercise for each
year has to be submitted for opinion to the PHARE Management Committee.

Activities financed under this new Regulation will focus assistance on priority operations to prepare for accession
as defined within this and the previous accession partnership with Cyprus, as well as the participation in certain
Community programmes and agencies including research and technological development framework programmes.

The 2000 budget (EUR 9 million) has been programmed to support activities in the following sectors: internal
market (taxation and customs); Justice and Home Affairs; administrative cooperation; participation in Community
programmes in the sector of education (Leonardo, Socrates, Youth); and bi-communal activities (Nicosia master
plan).

Cyprus is still participating in the multicountry activities of the MEDA programme, and also receives EIB support.

6. Conditionality

Community assistance for financing projects is conditional on respect by Cyprus of its commitments under the
Association Agreement, further steps towards satisfying the Copenhagen criteria and in particular progress in
meeting the specific priorities of this 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 Association Agreement and
in particular in the Association Committee.

Council Regulation (EC) No 555/2000 stipulates that (cid:145)the Commission shall be assisted by the Committee provided
for in Article 9(1) of Council Regulation (EEC) No 3906/89(cid:146). This means that the Management Committee that
shall supervise the pre-accession programmes with Cyprus is the same as for the PHARE programme.

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