Opinion of the Economic and Social Committee on "EU/Russia strategic partnership: What are the next steps?"
Date: 2002-03-20
Institutions: European Economic and Social Committee
Subjects: EU Member State, Russia, aid programme, cooperation agreement (EU), economic cooperation, foreign policy, political cooperation, social assistance

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Official Journal of the European Communities

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5.8.
The realisation of the Commission initiative on State
compensation for crime victims will form a crucial step in
meeting the needs of citizens, and a visible and exemplary step
by the Member States in the construction of a true European

justice area, based on a culture of solidarity — in the sense of
real sharing of responsibility — and on the universal basic
right of all human beings not to be left alone in the face of
aggression, danger or crime.

Brussels, 20 March 2002.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on ‘EU/Russia strategic partnership: What are
the next steps?’

(2002/C 125/10)

On 28 February and 1 March 2001 the Economic and Social Committee, acting under the third paragraph
of Rule 23 of its Rules of Procedure, decided to draw up an opinion on ‘EU/Russia strategic partnership:
What are the next steps?’

The Section for External Relations, which was responsible for preparing the Committee’s work on the
subject, adopted its opinion on 28 February 2002. The rapporteur was Mr Filip Hamro-Drotz.

At its 389th Plenary Session of 20 and 21 March 2002 (meeting of 20 March), the Economic and Social
Committee adopted the following opinion by 86 votes with two abstentions.

1.

Introduction

1.3.
The intention of this opinion is to table conclusions
that an
and recommendations, which indicate above all
engagement of organised economic and social actors in the
EU-Russia cooperation, as well as raising public awareness of
this cooperation, would facilitate a successful outcome of the
efforts to improve the EU-Russia partnership.

The EU-Russia relations have advanced substantially in
1.1.
recent years. The cooperation covers widely all
important
policy fields of mutual interest. A good relationship between
the EU and Russia is a core element for a prosperous future of
Europe.

2.

Important elements in the institutional framework

1.2.
The EU should promote transparent and open neigh-
bourly relations with Russia both at the bilateral and multilat-
eral
level. The forthcoming enlargement of the European
Union stresses even more the need for good relations and
public understanding of a solid partnership between the EU
and Russia. This concerns the EU, its Member States and Russia
but also the candidate countries, the EEA countries and other
European countries.

2.1.
The Partnership and Cooperation Agreement (PCA)
was signed in 1994 and entered into force in 1997. It covers
political, economic and social cooperation at a broad range,
i.a. trade, education and training, environment and energy, the
transition to market economy. The cooperation mechanism is
described in the PCA: the partners meet twice a year at
Summits; the Cooperation Council, which meets once a year,
is the main forum, the Cooperation Committee is responsible
at the operative level and many sub-committees (dialogues)

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have been established. An EU-Russia Parliamentarian Cooper-
ation Committee has also been established. Article 93 states
that ‘the Cooperation Council may decide to set up any other
special committee or body that can assist it in carrying out its
duties (...)’. The initial duration of the PCA is ten years,
renewable by tacit agreement.

2.2.
The Common Strategy of the European Union on
Russia was agreed by the Member States in 1999 (1). The
strategy outlines the principles and means of the EU and the
Member States to take actions based on the PCA. Strengthening
the rule of law and public institutions, consolidating economic
reforms in Russia, strengthening civil society, as well as
security and stability are main fields for action. The Common
Strategy is in force until June 2003.

The establishment of a ‘Common European Economic
is indicated both in the PCA and in the Common

2.3.
Space’
Strategy.

The EU has,

2.7.
together with the partner countries
concerned, developed in recent years the Northern Dimension
of the EU. The cooperation between the EU and Russia is a
core element in the action plan for multilateral cooperation in
the region for 2000-2003. The Northern Dimension Minis-
terial Meeting in Helsinki in November 1999 laid down the
basis of the Northern Dimension. The Ministerial Meeting in
Luxembourg in April 2001, as well as the European Council
Summit in Gothenburg in June 2001 launched the action plan
The ESC influenced the conclusions of the Ministerial meeting
in Luxembourg and of the EU Summit in Gothenburg as
regards the action plan for the EU’s Northern dimension. The
level
Northern dimension will be dealt with at Ministerial
during the Danish EU-Presidency in the second half of 2002.

2.8.
Since 1999, Tacis has been the leading technical
assistance programme supporting the transition process in
Russia. Key EU and Russian institutions are jointly working in
the programme. To date, more than
the framework of
2,4 billion EUR has been earmarked to over 1 500 projects
directed to a broad range of policy fields.

Article 1 of the PCA states:

2.4.
‘(The objectives of this
partnership are) … to provide an appropriate framework for
the gradual integration between Russia and a wider area of
cooperation in Europe’.

3. Links to be strengthened

The chapter on ‘Principal Objectives’ of

the EU’s
2.5.
Common Strategy states in para. 2 the outlines for the
‘integration of Russia into a common European economic and
social area’. Preparation of a Russian WTO-membership,
institutional building and meeting the social aspects of the
transition to a market economy are important subjects in this
context.

The EU-Russia Summit

2.6.
in Moscow in May 2001
decided that the parties would jointly study the possibility of
establishing a Common European Economic Space. The Sum-
mit in October 2001 in Brussels agreed on the terms of
reference of a High-Level Working Group, which was entrusted
with the task of drawing up the concept of a Common
European Economic Space and the measures needed to realise
it. The High Level Group, which began its work in December
2001, should report to the EU-Russia Summit no later than
2003. The parties will, as a first step, consider the structure
and substance of the Common European Economic Space,
which would partially be based on enhancing compatibility
between Russian and EU legislation with the view to their
alignment.

(1) (1999/414/CFSP), OJ L 157, 24.6.1999, p. 1.

The EU recognises generally the necessity of

3.1.
the
participation of economic and social actors in its efforts to
achieve overall goals in the establishment and the improve-
ment of its third country relations. This is the case in all
relevant dimensions of external relations: the Euro-Mediter-
ranean Summits of Economic and social councils and similar
institutions; the meetings of civil society representatives from
the EU, Latin America and the Caribbean; the bilateral Joint
Consultative Committees with the candidate countries; the
business, trade union, consumers dialogues in the Trans-
Atlantic cooperation with the United States; the business
dialogue in the relations with Asia; the India-EU Round-Table;
the EEA Consultative Committee; the Cotonou Agreement and
regional seminars in the relations with the ACP countries; the
report from the European Council in June 2001 expressing i.a.
the desire to establish a dialogue and multilateral cooperation
between the actors in the Northern dimension; the promotion
of social and civil dialogues in the Stability Pact for South East
Europe. In many of the above cases the relationship has been
institutionalised through the involvement of the ESC.

3.2.
The EU-Russia cooperation is conducted by the EU
institutions and the Russian government. The EU-Russia
Industrialists’ Round Table is recognised as a useful advisory
body, but economic and social representatives of civil society
have, however, been only marginally involved in the cooper-
ation. Both the PCA and the Common Strategy stress, however,
the necessity for the parties to cooperate in strengthening civil
society and in bringing both societies closer together.

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3.3.
The main Russian economic and social interest groups
have in recent years strengthened their organisation and
capacity to act as independent and credible interest groups.
This is the case above all with business/employers and the
trade unions, but also other civil society organisations, for
instance the consumers are improving their role and official
networking. The contacts with sister organisations in the EU
are, however, in many cases still limited. The above mentioned
EU-Russia Industrialists’ Round Table has been accompanied
by recent European cooperation among the trade unions
(ETUC-FNPR) and also among other actors, both at bi- and
multilateral
level. European companies have established in
Moscow the European Business Club (EBC). Russian actors do
participate, though with different intensity, in international
cooperation: the main organisations of Russian employers
and employees participate in the work of ILO; the Russian
Chambers of Commerce have a role in the international
network of the Chambers; the main Russian trade union
organisations are members of the International Confederation
of Free Trade Unions (ICFTU); Russian actors participate in
the Baltic Sea cooperation. The main Russian civil society
organisations have expressed their interest in establishing and
improving contacts and cooperation with the actors in the EU.

3.4.
Public awareness about the partnership is weak both
in Russia and in the EU Member States. There is little public
interest in, or debate about, the EU-Russian emerging relations
and their future. Media has a central role for stimulating public
opinion. Fragile anchoring of
the EU-Russian integration
process in society has a negative consequence on the alignment
of Russian legislation on that of the EU, which is needed for a
closer coexistence.

3.5.
In both the economic and social field there exist
institutionalised relations between the Russian government
and the actors. Tripartite commissions and working groups
have been established at least by the Ministry of Labour and
the Ministry of Economic Development and Trade. An example
is the Russian Tripartite Commission on the Regulation of
Social and Labour Relations. Ten representatives of each main
partners (employers-trade unions-government) meet monthly.
It has set up seven permanent working groups. Examples on
topics at the agenda are the ratification and implementation of
the Council of Europe’s Social Charter, the implementation of
the new Labour Code, the reform of the pension system. The
actors consider their contribution to be valid and appropriately
taken on board by the government. The system works best at
the federal level and in main regions.

3.6.
The new Labour Code came in force on 1 February
2002. It is considered to bring far reaching improvements to
the labour market and as regards labour rights. It institutional-
ises the role of the social partners and has a separate article on

social dialogue. Agreements between the partners concerned
will be the main basis in the future for actions in the labour
market. The implementation of the Labour Code at all levels
will be a demanding task for the partners in the years to come.
A new code on the rights and obligations of unions and
employers is under preparation.

3.7.
The establishment of the tripartite ‘Centre for Social
Partnership’ and the ‘Model Labour Arbitration Court’ would
become important elements for the labour market. They were
established in September 2001. The establishment of both
institutions was financed by Tacis. They are expected to have
an important impact on the implementation of the new Labour
Code.

There is an emerging recognition by the Russian
3.8.
government of the role of civil society organisations. Efforts
are made to establish a dialogue with and between major
organisations. The Russian President has recently met Russian
civil society organisations at a broad front and new forms for
contacts with the emerging network of these organisations are
under way. Also the recent initiative by a member of the
Duma, to establish a committee for ‘an international Russia in
an integrating Europe’ is a positive sign.

3.9.
The institutional building and the implementation of
new legislation in Russia need, however, further improvement.
The same goes with the further development of social and civil
dialogue as well as improvements in labour market relations
between the social partners in Russia. The Russian civil society
organisations and social partners have, on their part, the
challenge to contribute to a positive development by raising
their preparedness to involve themselves in constructive
dialogue, in consultations and negotiation procedures.

3.10.
The Tacis programme to Russia, both the national
and the horizontal programme is extensive. The major part of
the projects are directed to support the modernisation of the
economy and the strengthening of the rule of law, democracy
and the social sector. There is a country strategy paper for
2002-2006 and a national indicative programme for 2002-
2003. Tacis seems to be pragmatically focused on the most
important topics. The decentralisation of Tacis administration
to the Commission’s delegation in Moscow seems to have
improved the efficiency of the programme. Russian partners
express, however, their criticism about the bureaucracy and
time demanding preparatory procedures. The coordination of
projects between different programmes (for instance Interreg
IIIA and Tacis small Projects) would also need improvement. In
the practical implementation of Northern Dimension projects,
difficulties often arise in connection with coordination of
funding received from different programmes (Tacis, Phare,
etc.). The Commission’s coordination of the Northern Dimen-
sion management should also be improved.

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4. Conclusions and recommendations

4.1.
The ESC expresses its strong support for all efforts to
improve the EU-Russia partnership. The partnership should
encourage European integration, bearing in mind above all
economic and social transformation in Russia, trade and a
Russian membership in the WTO, economic co-operation
improved well-being and living
and growth, employment,
standards, environment, working infrastructures and border
relations, investments and co-operation between both business
and citizens.

in addition to economy,

The ESC supports the EU’s view, as described in the
4.2.
Common Strategy that a Common European Economic Space
should include both economic and social aspects. Attention
should,
technology cooperation,
trade, the conditions for companies to operate etc. be given
also to topics, such as employment, education and exchange
between universities, social security, working and living con-
ditions, fight against corruption, public health, the role of
independent media. The ESC is considering to express its
detailed opinion in this matter.

4.3.
Innovative and mutually beneficial solutions should be
reached in negotiations on the main issues of interest. The
prerequisites for Russia’s WTO-membership include i.a. the
abolishment of barriers to trade and investments. The liberalis-
ation of Russian banking,
insurance, services and energy
markets should be addressed open-mindedly. Issues, which are
related to the impact of the EU enlargement on EU-Russia
relations, among them Kaliningrad — the movement of
persons and goods, should be clarified as far as possible by the
partners prior to the enlargement.

4.4.
As regards the ensurance of the security of the citizens
and the observance of basic human rights in Russia, the
Committee’s opinion is that they should be promoted in
particular in regions in crisis. The EU’s support programmes,
above all the ‘European Initiative for Democracy and Human
Rights’ (EIDHR) and the ‘Core Tacis Action Programme’ should
be purposefully implemented. The Committee supports also
the efforts to deal with these topics in the framework of the
Organisation of Security and Cooperation in Europe (OSCE)
and the UN. The Committee will follow the developments in
including Chechnya. It may address
various crisis regions,
them at a later stage taking its own responsibilities and
expertise as the point of departure.

4.5.
The development in Russia has reached a stage when
it would be advantageous to engage main civil society actors
in the joint efforts to improve the EU-Russia partnership and
to establish regular dialogue between Russian and EU actors as
an element of the cooperation. The economic and social
interest groups would contribute with their experience and
knowledge in economic and social policy covered by the PCA.

4.6.
The ESC focuses in this opinion on the following
recommendations to achieve a functioning partnership: taking
advantage of the experience of organised actors of civil society
by engaging them in EU-Russian cooperation; anchoring the
partnership in society by promoting public information and
debate; supporting Russia’s efforts to further improve insti-
tutional framework and dialogue, as well as the Russian civil
society organisations’ efforts to strengthen their contribution.

(a) The ESC supports the decision to study the establishment
of an EU-Russia Common European Economic Space. It
is recommended, with reference to paragraph 4.2, that
the High-Level Group with the task to prepare a report to
the Summit in 2003, should arrange hearings or similar
events to give main actors from both the EU and Russia
the opportunity to express their views about the Common
European Economic Space.

(b) The Cooperation Council should, based on the experi-
ences from the abovementioned hearings, establish a
permanent consultative forum which is composed of the
main components of organised civil society. The task of
this forum would be to advise the cooperation bodies at
different levels, as appropriate (Summits, the Cooperation
Council and Committee, sub-committees). Establishment
of this consultative forum would be based on Article 93
in the PCA (1). Involvement of organised civil society
should be recognised also in the Common Strategy. The
ESC has also in its previous opinions recommended the
creation of a consultative forum (2).

(1) See paragraph 2.1.
(2) Opinion on ‘Relations between the European Union and Russia,
Ukraine and Belarus’OJ C 102, 24.4.1995, p. 40; Opinion on
‘Relations between the European Union and the countries bor-
dering the Baltic Sea’OJ C 73, 9.3.1998, p. 57.; Opinion on
‘Northern Dimension: Action Plan for the Northern Dimension in
the external and cross-borders policies of the European Union
2000-2003’OJ C 139, 11.5.2001, p. 42-50.

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(c) The EU should initiate actions to enforce public infor-
mation about and visibility of the EU-Russia partnership.
Anchoring the partnership in society would strengthen
the basis for alignment of legislation. Public awareness,
understanding and debate should be promoted and
stimulated at all levels in society in Russia, in the EU
Member States and in the candidate countries, as well as
in other European countries. Publications, seminars and
information campaigns should be initiated. The Member
States, the European Parliament, the EU delegations,
media and civil society organisations should be engaged
in these efforts.

The EU should also improve transparency within the EU,
as regards ongoing activities in the EU-Russia cooper-
ation. Information and progress reports from the Sum-
mits and the different dialogues should be improved, as
well as reports about the programmes and the results of
the EU Presidency.

(d) The ESC welcomes the efforts by Russian authorities to
promote dialogue with the civil society organisations and
to engage main actors in the preparation, implementation
and enforcement of new legislation. Tacis projects should
be tailored to support the implementation of the Labour
Code,
including the improvement of mechanisms for
relations locally, sectorally and regionally (both among
the actors and between them and the authorities con-
cerned). Further efforts should be made to smoothen
Tacis management and the best expertise should be used.

Also Russian civil society organisations should be encour-
aged, as appropriate, to improve their preparedness to be
involved as credible partners. This activity should cover
the Russian Federation. The
the different regions of

Brussels, 20 March 2002.

economic and social actors in the EU and the Member
States should be encouraged to assist in this endeavour.

(e) The Northern dimension of the EU should be purposefully
implemented and further developed in the years to come,
as it is a useful tool also to improve the EU-Russia
relations. The ESC recommends that, in 2002, the EU
prepares a follow-up action plan and takes steps to ensure
that both the financing and management of the Northern
Dimension are better focused and coordinated so that
in future the action plan can be implemented more
effectively.
The ESC welcomes the recommendation that a high level
forum with broad participation from all parts of society
should be regularly arranged. Such a forum would ideally
be arranged in 2002, as preparation for the Ministerial
meeting during the Danish EU-Presidency, as indicated in
the conclusions of the European Council in June 2001.
The recommendation that appropriate actions to establish
regular multilateral contacts between the economic and
social actors in the countries concerned is also relevant.
The ESC arranged in February 2001 in Umeå a multilat-
eral meeting, in line with the recommendation of the
Northern dimension Ministerial meeting in November
1999. A resolution was launched to the Ministerial
meeting in Luxembourg. A multilateral meeting would
now, ideally, be put into practice in the context of the
above-mentioned high-level forum and in co-operation
with the Council of Baltic Sea States. The EU may rely on
the ESC’s contribution in such actions.
The ESC expresses its preparedness to participate and
assist in forthcoming EU actions to achieve a dynamic
EU-Russia partnership. Relations between Russian and
European civil society organisations should be improved.
The ESC would therefore penetrate appropriate ways to
create and encourage regular contacts and dialogue with
main actors of Russian organised civil society.

(f)

The President

of the Economic and Social Committee

Göke FRERICHS