Communication from the Commission on the Action Plans for administrative and judicial capacity, and the monitoring of commitments made by the negotiating countries in the accession negotiations
Date: 2002-06-05
Institutions: European Commission
Subjects: Central and Eastern Europe, Community acquis, accession to the European Union, enlargement of the Union, legal system, public administration

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 5.6.2002
COM(2002) 256 final

COMMUNICATION FROM THE COMMISSION

on the Action Plans for administrative and judicial capacity, and the monitoring of
commitments made by the negotiating countries in the accession negotiations

COMMUNICATION FROM THE COMMISSION

on the Action Plans for administrative and judicial capacity, and the monitoring of
commitments made by the negotiating1 countries in the accession negotiations

FOREWORD

The ongoing enlargement process is entering its decisive stage. At its meeting in Laeken in
December 2001, the European Council confirmed its determination to bring the accession
negotiations with the candidate countries that are ready to a successful conclusion by the end
of 2002, so that these countries can take part in the European Parliament elections in 2004.
Bringing this historic process to a successful conclusion is one of the Union's highest
priorities for the period ahead.

Since the European Council
in Nice, which endorsed the roadmap for the accession
negotiations as a central element of the enlargement strategy, very considerable progress has
been made in the negotiations. The roadmap, which covered the period of the Swedish,
Belgian and Spanish presidencies, has fully served its purpose. It has proven highly useful in
moving the negotiations forward by ensuring that all parties stick to a realistic timetable, and
has been implemented according to schedule. The European Union has defined Common
Positions in accordance with the roadmap,
leading to provisional closure for a very
considerable number of chapters.

For the period under the Spanish presidency, the roadmap foresaw that the European Union
would define Common positions on four negotiating chapters: agriculture, regional policy,
financial and budgetary provisions, and institutions, with a view to provisional closure. This
objective is being achieved, bearing in mind that the concrete financial aspects related to these
chapters will be dealt with at a later stage of the negotiations. Furthermore, in line with the
objectives set by the Laeken European Council, under the Spanish presidency, all remaining
negotiating chapters have been opened with Bulgaria, and a further seven chapters with
Romania. The objectives set for the period under Spanish presidency are therefore in the
process of being fulfilled.

The European Council has emphasised that progress in the negotiations must go hand in hand
with incorporating the acquis into legislation and actually implementing and enforcing it.
Provisional closure of a negotiating chapter is in most cases based on commitments by the
negotiating country concerned. The Commission considers it essential to ensure that these
commitments are actually implemented, and closely monitors progress in this regard. Bearing
in mind that negotiating countries have often committed themselves to completing specific
measures by the time of accession, the Commission assures monitoring on a continuous basis,
in order to assess the relevant preparatory processes and to identify those issues on which
remedial action is required. Member States are being regularly informed of developments in
this regard, whereby the Commission draws attention to any problems that may have arisen.
The Commission will continue the monitoring process up until the actual accession of the new
the Association
inter alia through the structures established under
Member States,

1 This report focuses on the negotiating countries. It does not concern Turkey.

2

Agreements. This report provides an overview of the main findings of the monitoring exercise
to date.

A core element in negotiating countries' preparations for accession, and a central factor for the
is the development of adequate administrative and
success of this enlargement process,
judicial capacity to implement and enforce the acquis as of accession. The European Council
emphasised the importance of this aspect at its meeting in Madrid in 1995 and on a number of
subsequent occasions, most recently at Laeken in December 2001.

The Commission attaches the greatest importance to ensuring that the candidate countries
reach an adequate level of administrative and judicial capacity by the time of accession.
Starting from its 1997 Opinions and subsequently in the Regular Reports, the Commission has
In addition, as set out
carefully monitored the progress made by each country in this area.
above,
related
the Commission is systematically monitoring the implementation of
commitments that negotiating countries have taken in the framework of the accession
negotiations. Finally, to help the candidate countries in their efforts, institution building and
related investment have been one of the focal points of Community assistance under the Phare
programme since the early 1990s, and constitute to date up to two thirds of national Phare
programmes.

In 2001, the Commission decided that at this advanced stage of the enlargement process, more
decisive action was needed, building on the various ongoing activities. With this purpose, in
its 2001 Enlargement Strategy Paper, Making a success of enlargement, the Commission
announced that it would launch for each of the negotiating countries an Action Plan to
reinforce administrative and judicial capacity. The Commission further indicated that it
would mobilise special financial assistance of up to
250 mn in 2002 to accompany these
efforts, over and above the yearly budgetary allocation for each of the Phare countries,
bringing the Community's total effort to strengthen the administrative and judicial capacity of
the negotiating countries in 2002 to around
1 billion. The Commission undertook to report
on the Action Plans by the time of the Seville European Council in June 2002.

€

€

On the basis of extensive preparatory work in late 2001 and early 2002, the Commission
services have completed the individual Action Plans jointly with each negotiating country
concerned, and have reached with each of them a common understanding on the Plans.
Implementation of the agreed Action Plans is underway. An overview of key actions in this
context is included in this report. The Commission is confident that on that basis, and
provided each country continues and steps up its efforts, the negotiating countries will be able
to make convincing progress in the months to come. The Commission encourages each
negotiating country to make full use of the opportunities offered by the Action Plan, and is
committed to ensuring that this exercise bears fruit.

As work progresses, an assessment of the way in which each of the individual Action Plans is
being implemented will take place in various contexts. In line with the approach taken in the
past, progress in implementing relevant Accession Partnership priorities, including through
the Action Plans, will continue to be reviewed in the framework of the structures existing
under the Europe and Association Agreements. A detailed assessment of the effective
progress achieved by each country in strengthening its administrative and judicial capacity,
including through the implementation of tasks contained in the Action Plans, will be provided
in the 2002 Regular Reports, which are scheduled to be adopted on 16 October 2002, with a
view to the Brussels European Council. As set out in the Commission's 2001 Enlargement
Strategy paper, the Commission should be able on the basis of the 2002 Regular Reports to
make recommendations on those candidate countries ready for accession.

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While administrative and judicial capacity is a key factor for accession, building up
including horizontal
administrative structures and strengthening administrative capacity,
administrative capacity,
that will need to be continued also after
accession. With this in mind, the Commission has proposed to make available funds for a
transition facility for this purpose covering actions not eligible to the Structural Funds,
amounting to a total of

is a long-term effort

380 million.

€

Overall, since the Nice European Council, when the roadmap for the negotiations was
launched, very considerable progress has been made in the accession process, both in terms of
the negotiations and as regards the candidate countries' preparations for accession, which are
being accelerated. The Commission is strongly committed to ensuring that this momentum
can be maintained, so that the objectives set by the Gothenburg and Laeken European
Councils can be achieved.

In the meantime, the Union, as well as the candidate countries, must continue to prepare itself
"mentally" for enlargement. As the first accessions draw closer, public dialogue about
enlargement must continue and be intensified, so as to make the risks and benefits clear,
address misconceptions where they exist, and let the people know that their concerns are
being taken seriously. The Commission's Enlargement Communication Strategy, which is the
subject of a separate report, is a key instrument in this regard. Enlargement can only succeed
if it has democratic support.

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INTRODUCTION

As indicated in the Commission's 2001 Enlargement strategy paper, the aim of this note is
twofold. Firstly, it aims to report on progress to date in developing Action plans aimed at
reinforcing negotiating countries' administrative and judicial capacity. Secondly, it seeks to
update on negotiating countries' progress in implementing commitments they have made in
the context of the accession negotiations, drawing attention to the main problems that have
arisen and on which remedial action is required.

In its first part, this report provides a thematic overview of key actions that have been
included in the finalised Action Plans. The second part of this report is devoted to an
overview, chapter by chapter, of negotiating countries' fulfilment of commitments made in the
accession negotiations, based on the enhanced monitoring process.

1.

THE ACTION
FOR
ADMINISTRATIVE AND JUDICIAL CAPACITY: PROGRESS TO DATE

REINFORCING

PLANS

NEGOTIATING

COUNTRIES'

The Commission attaches the greatest importance to ensuring that the negotiating countries
reach an adequate level of administrative and judicial capacity by the time of accession.
Clearly, the need to have in place an effective administrative and judicial capacity is not a
requirement limited to the candidate countries yet is a matter for all Member States, existing
or new. This was clearly stated in the Commission's White Paper on European Governance of
July 2001.

The main instrument in helping the negotiating countries to achieve this goal are the Action
Plans for reinforcing administrative and judicial capacity that the Commission has launched
with each of them in the first quarter of 2002.

The purpose of the Action Plans is to identify with each country the next steps that are
required to achieve an adequate level of administrative and judicial capacity by the time of
accession, and to jointly ensure that all necessary measures in this regard are taken, providing
candidate countries with targeted assistance in areas that are essential for the functioning of an
enlarged Union. As such, the Action Plans are a key tool towards meeting the common
objective of the EU and negotiating countries, i.e. to ensure that each country's preparations
for accession take place as effectively as possible within the envisaged timeframe.

Developing adequate administrative and judicial capacity for EU membership is a demanding
and wide-ranging task, which requires detailed preparations in each and every domain
covered by the Union's policies and legislation.
In preparing individual Action Plans, the
Commission has taken a comprehensive approach. The revised Accession Partnerships that
the Council adopted for each negotiating country on 28 January 2002, based on the
Commission's proposals, have served as the point of departure for this exercise. All priorities
from the revised Accession Partnerships that are related to the development of administrative
and judicial capacity have been included in the Action Plans. On that basis, the Action Plans
cover not only the Accession Partnership priorities related to the administrative and judicial
capacity to implement and enforce the acquis, but also any relevant priorities under the
political and economic criteria. Each of these priorities is being given prominence in the
Action Plans, through the definition of specific measures, which need to be implemented.

5

Jointly with each country, the Commission has made a detailed analysis of each country's
approach to implement the Accession Partnership priorities concerned, of its intentions to
reinforce efforts for institution building, and of the concrete measures that remain to be taken
to achieve adequate administrative capacity in each area. Any remaining gaps in terms of
assistance and monitoring have also been identified.

This process has resulted in comprehensive Action Plans by country, that bring together for
each priority:

•
•
•

•

€

the relevant commitments made in the negotiations;
implementing measures envisaged by each country as discussed with the Commission;2
the Community assistance that is already underway or planned to support the country in
its efforts, and any supplementary assistance that will be provided for this purpose under
250 mn supplementary institution building facility under the Phare programme;3
the
the additional monitoring activities, including peer reviews4, that are required to assess
each country's preparation, over and above the Regular Reports and the usual monitoring
of the negotiations.

A summary of the issues dealt with in the Action Plans is provided below. It follows the
structure of the Copenhagen accession criteria.

1.1.

Political criteria

The political Copenhagen criteria require that the candidate country has achieved stability of
institutions guaranteeing democracy, the rule of law, human rights, and the respect of and
protection of minorities.

In order to strengthen the public administration and remedy specific weaknesses that have
been identified in Bulgaria, the Czech Republic, Latvia, Lithuania, Romania, Slovakia and
Slovenia, the Action Plans foresee a range of measures in each individual case. Depending on
the situation in the country in question,
these concern such issues as the adoption of
outstanding basic legislation, the establishment of a civil service office, the development of a
civil service code of ethics, the training of staff, the strengthening of human resources
management departments, and the development of impact assessment or quality control
capacity. Supplementary assistance in this area includes assistance for the implementation of
civil service reform, twinning in the area of strategic policy making and co-ordination, and
assistance for reinforcing human resources management capacity.

2 Depending on the nature of the priority in question, and the specific weaknesses that have been identified for
each country, these may include: adopting missing legislation; designating, establishing, or reinforcing
relevant management structures and authorities; creating or reinforcing command and co-ordination
systems, as well as evaluation, monitoring and arbitration mechanisms; developing and implementing
strategic and management plans; training officials, judges, prosecutors, and the business community;
setting up public awareness campaigns; and developing or upgrading relevant IT systems and databases
and their inter-connection with EC systems.

3 The Phare programme covers the ten candidate countries of Central and Eastern Europe. Cyprus and Malta
benefit from pre-accession assistance under Council Regulation (EC) No 555/2000. Supplementary
assistance to Romania under the Phare supplementary institution building facility is still in the process
of being programmed.

4 For a definition of the term "peer review" in this context see below, under point 2.2.

6

the judiciary,

the independence of

While work has progressed on the reform of the judicial system in most negotiating countries,
in Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania,
Slovakia and Slovenia the strengthening of
the
improvement of remuneration and working conditions as well as the training of judges still
need to be further pursued. To tackle these weaknesses, the Action Plans include such
measures as the implementation of a judicial reform strategy, the adoption of outstanding
basic legislation, measures to guarantee the adequate financing of the judicial system, the
simplification of court procedures, the development of probation and mediation services, the
development of training facilities and the training of judges in good judicial practices and EC
law, the creation of judicial information networks, and the reinforcement of systems for legal
aid and related public awareness campaigns. Supplementary assistance in this area is foreseen
for Bulgaria, Hungary, Poland and Slovakia, focusing on the implementation of judicial
reform strategy, strengthening the independence of the judiciary through support to the
judicial council, training of judges on good judicial practices and EC legislation, and twinning
focusing on professional ethics.

Developing an effective anti-corruption capacity is another field that is given close attention
in the Action Plans for Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland,
Romania and Slovakia. Specific measures cover such issues as the further development and
implementation of national anti-corruption strategies; the reinforcement of corruption fighting
bodies, including through training of staff; the improvement of co-operation among them; and
the development of measures to prevent corruption within the public administration, including
within law enforcement and public safety services. To help implementing these measures,
supplementary assistance is envisaged for Bulgaria and Slovakia, covering in particular the
implementation of anti-corruption strategies and awareness raising.

Ensuring respect for human rights and respect for and the protection of minorities is a further
area where administrative and judicial capacity needs reinforcement in Bulgaria, the Czech
Republic, Estonia, Hungary, Latvia, Romania and Slovakia.
. Depending on specific
weaknesses identified, the Action Plans address such issues as pre-trial detention and the
creation of an effective system to redress cases of police misconduct. In countries with
sizeable Roma communities, measures to strengthen the bodies involved with implementing
existing Roma action programmes and strategies are included in the Action Plans. For
Estonia and Latvia, the Action Plans foresee measures to strengthen the capacity of bodies
dealing with integration and language policy, in line with relevant international standards.
Furthermore, the Action Plans for all countries include measures towards the development of
structures for the implementation of the anti-discrimination acquis. Supplementary assistance
is foreseen to strengthen the bodies involved with minority questions, and for twinning in the
anti-discrimination field.

1.2.

Economic criteria

The economic Copenhagen criteria require the presence of a functioning market economy
with the capacity to withstand competitive pressures and market forces within the Union.

In terms of administrative and judicial capacity, the Action Plans cover weaknesses that have
been identified with regard to the development of a functioning land market and land and
property registers in Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, and Slovenia, and
on the implementation and enforcement of bankruptcy legislation in Bulgaria, the Czech
Republic and Lithuania. Other issues dealt with for Bulgaria, the Czech Republic, Hungary,
Poland, Romania and Slovakia are the development of a favourable business environment,
the reform and strengthening of the financial sector, and the reform of the public finance

7

management system. To tackle these issues, the Action Plans include such measures as the
adoption of missing basic legislation; the strengthening of relevant structures, including
through the training of staff; and specialised training for judges and bankruptcy trustees.
In
addition to the assistance that is already ongoing or planned in this area, no supplementary
assistance is foreseen.

1.3.

Other obligations of membership

The Copenhagen accession criteria further stipulate that membership requires the ability to
take on the obligations of membership. This involves the adoption, implementation and
enforcement of the acquis. The major challenges in terms of administrative capacity have
been highlighted in the Commission's 2001 Enlargement Strategy Paper. They concern the
administrative capacity to ensure a smooth functioning of the internal market, sustainable
living conditions in the European Union, the overall protection of the European Union's
citizens, and the proper management of Community funds.5

Ensuring a smooth functioning of the internal market

Ensuring a smooth functioning of the internal market requires the presence of appropriate and
effective regulatory authorities, horizontal administrative structures in a range of areas,
supervisory and enforcement bodies, and in certain cases the implementation of appropriate
information technology (IT) systems for the exchange of data.

In the field of the internal market, targeted actions are envisaged for all countries to establish
or reinforce regulatory authorities, horizontal administrative structures, and supervisory and
enforcement bodies. Depending on the specific weaknesses identified for each country, areas
concerned include standardisation, accreditation, certification, conformity assessment, market
surveillance, mutual recognition of professional qualifications, and the co-ordination of social
security systems; monitoring of legislation in the non-harmonised area as far as free
movement of goods and the freedom to provide services is concerned; the independent
supervision of data protection; the supervision of financial services; the implementation of
public procurement rules, and the enforcement of industrial and intellectual property rights
and of food legislation. The Action Plans foresee such measures as the adoption of
outstanding legislation; the reinforcement of relevant authorities, including through budget
judges and prosecutors; and the
and staff increases; specialised training for officials,
development of awareness campaigns. Supplementary assistance is being provided for
Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, and Slovenia,
including assistance to strengthen the national conformity assessment system and enforce the
implementation of public procurement rules and of food legislation, reinforce capacity on the
co-ordination of social security systems and on the mutual recognition of professional
qualifications, strengthen insurance as well as banking and securities supervision, and ensure
the enforcement of intellectual property rights.

In the domain of competition, the Action Plans for all countries foresee actions to strengthen
the enforcement capacity for state aid rules and anti-trust provisions. Besides measures
targeting directly the state aid and anti-trust authorities, this includes measures to increase
awareness of EC competition rules among aid grantors, the business community and the
Supplementary
public at

large, and to increase specialised training for the judiciary.

5 A number of negotiating chapters combine aspects related to more than one of these thematic areas. These

have been dealt with under the heading allowing for the broadest coverage.

8

assistance is envisaged for Bulgaria, the Czech Republic, Estonia, Hungary, Poland and
Slovenia, including twinning on the enforcement of the competition acquis and on awareness-
raising, and training of judges.

The functioning of the internal market for transport and/or energy is another area that is
covered for all countries. Depending on individual weaknesses identified, the Action Plans
include actions aimed at establishing or reinforcing relevant structures in the area of road
transport, the regulatory body in the rail transport sector, and the energy sector regulator.
the designation or
Concrete measures include the adoption of outstanding legislation;
reinforcement of regulatory and licensing authorities, including through staff and budget
increases; training; the development of quality assurance systems; and information campaigns
for industry. For the Czech Republic and Estonia, supplementary assistance is being provided
in this area, focusing on the area of rail transport.

Concrete measures include the adoption of outstanding legislation;

In the domains of telecommunications, postal services, and audio-visual policy, the Action
Plans for Bulgaria, Cyprus, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania,
Slovakia and Slovenia include actions to develop or strengthen independent regulatory
structures.
the
reinforcement of the relevant authorities through budget and staff increases; training; and the
development of appropriate administrative procedures, quality measurement systems, and IT
systems. Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Slovakia and
Slovenia will benefit from supplementary assistance through twinning, training courses and
expert missions on various aspects of the telecommunications acquis. Implementing the new
regulatory framework for telecommunications adopted recently by the EU represents an
exceptionally heavy task.

As regards customs and taxation, the Action Plans for all countries foresee actions aimed at
reinforcing the capacity of tax and customs administrations to control and enforce the
implementation of Community legislation, including through external border controls; and at
developing or upgrading IT systems for the exchange of electronic data with the Community
and its Member States. Depending on specific weaknesses in each country, the Action Plans
include such measures as the development of customs and taxation strategies and business
management plans; the reorganisation of administrative structures; staff reinforcement and
training;
the development of ethics codes, control
procedures, appeal structures and structures for contact with the public; and the development
and adaptation of IT systems. Supplementary assistance is foreseen for the Czech Republic,
Latvia and Lithuania, covering such issues as the development of IT strategies and the
exchange of electronic data, as well as the modernisation of the taxation system.

the simplification of procedures;

Ensuring sustainable living conditions in the European Union

things, by guaranteeing the application of
This needs to be ensured, among other
environmental and health and safety standards, including at the work place; ensuring a high
level of nuclear safety, and improving transport safety. The proper implementation of the
common agricultural and fisheries policies and the Communities’ regional and structural
policies are also of great importance in this context.

In the field of agriculture, the Action Plans for all countries foresee actions aimed at
strengthening the administrative structures for the management of the common agricultural
policy, in particular the Integrated Administration and Control System (IACS) and the Paying
Agency, as well market information systems and mechanisms to implement and enforce the
veterinary and phyto-sanitary acquis (on these latter two aspects see below, under “Ensuring

9

the overall protection of Europe's citizens”). Specific measures include the adoption of
outstanding legislation; the establishment or reinforcement of relevant structures, including
through reorganisation and budget and staff increases; training; the acquisition of equipment;
and the development of relevant IT systems and databases and their inter-connection with EC
Insofar as detailed implementation plans for any of these areas
systems where appropriate.
have already been submitted by individual negotiating countries and discussed in the context
of the accession negotiations, these have served as the point of departure in developing
envisaged measures.
Supplementary assistance is foreseen in this area for the Czech
Republic, Estonia, Hungary, Lithuania, Poland and Slovakia, covering such issues as the
application of EC quality standards, the management of rural development programmes and
market information systems, and the development or reinforcement of IACS and the Paying
Agency.

As regards fisheries, the Action Plans for maritime countries include actions to establish or
reinforce administrative structures in one or more of
resource
management, inspection and control of fishing activities, the implementation of the market
policy, and the management of structural actions,
including fleet registration. Concrete
measures include the adoption of outstanding legislation; the establishment or reinforcement
of relevant structures, including through budget and staff increases; training; the acquisition
of equipment; the development and upgrading of databases and IT systems; and improving
the collection of statistics. Estonia and Poland will benefit from supplementary assistance,
including twinning on the implementation of market and structural policies, and assistance for
establishing a management authority in the field of structural actions.

the following areas:

The implementation of the Communities’ regional and structural policy is another issue that
figures in the Action Plans for all countries. The Plans foresee inter alia actions to define and
to develop appropriate bodies in charge of the implementation of the Structural Funds and the
Cohesion Fund, in particular managing and paying authorities, and to ensure a clear division
of responsibilities and effective co-ordination between them;
to develop the technical
preparation of projects eligible for future co-financing under the Funds; to establish adequate
systems for the collection and processing of statistical data, and to comply with the relevant
financial management and control provisions. Specific measures include the adoption of
outstanding legislation; the designation or reinforcement of relevant structures, including
through reorganisation and budget and staff
the creation of co-ordination,
the preparation and implementation of human
arbitration and monitoring mechanisms;
resources development plans; training; and the development of databases of projects eligible
for future co-financing. The implementation of all the above measures is a precondition for
the Commission to approve Community funding under structural programmes, as stated in the
relevant regulations. Supplementary assistance is foreseen for the Czech Republic, Estonia,
Poland, Slovakia and Slovenia in this domain, including for the establishment of managing
and paying authorities in all areas, the development of a comprehensive monitoring system,
and the technical preparation of a pipeline of projects for future co-financing.

increases;

With regard to the environment, the Action Plans foresee for all countries actions to further
strengthen administrative, monitoring and enforcement capacity, in particular in the fields of
waste, water, air, chemicals and nature protection. Depending on individual weaknesses,
specific measures include the creation or reinforcement of administrative and supervisory
bodies and monitoring systems, including through budget and staff increases; the training of
inspectors and other staff, including at regional and local level, as well as training for the
private sector. Supplementary assistance is provided for the Czech Republic, Estonia, Latvia,
Lithuania, and Poland, including for the development of monitoring systems, designated and

10

management of protected areas, and training for environmental administrations at regional
and local level.

The area of social policy and employment is also given close attention in the Action Plans for
all countries. These include actions aimed at ensuring the enforcement of occupational health
and safety rules and strengthening labour inspectorates, enforcing the acquis on equal
opportunities and anti-discrimination (for this latter aspect see above under the political
criteria), setting up or reinforcing monitoring and information capacity for epidemiological
surveillance and control of communicable diseases, developing and implementing a national
employment strategy, and preparing for future participation in the European strategy on social
inclusion. Actions are also foreseen to support social partners’ capacity-building efforts in
most countries, and to develop or reinforce the necessary structures for the implementation of
the European Social Fund. Depending on the specific needs of each country, concrete
measures include the adoption of outstanding legislation; the establishment or reinforcement
of institutions, including through budget and staff increases; the creation of inter-ministerial
working groups; the upgrading of data-collection and IT systems; the training of officials,
experts and social partners; and the establishment of information centres and other awareness-
raising activities. The Czech Republic, Estonia, Hungary, Poland and Slovakia will benefit
from supplementary assistance in this area, including assistance to enhance inter-ministerial
and inter-agency co-ordination in the employment field, to strengthen the capacity of the
public health administration, and to implement the equal treatment and anti-discrimination
acquis.

include for all countries actions to establish or strengthen
The Action Plans further
appropriate regulatory structures and inspection arrangements to secure transport safety (in
particular road and maritime safety), ensure a high level of nuclear safety (in accordance with
the recommendations contained in the Council "Report on Nuclear Safety in the Context of
Enlargement"), and optimise energy efficiency and the use of renewable energy. Concrete
measures include the adoption of outstanding legislation; the establishment or reinforcement
of relevant authorities, including through restructuring, budget and staff increases, and the
strengthening of their independence where appropriate; training; the introduction or upgrading
of IT systems; and the purchase of equipment and the development of quality assurance
systems. Bearing in mind the extensive assistance already ongoing or planned in this area, the
Action Plans do not foresee any supplementary assistance.

Ensuring the overall protection of the European Union's citizens

This needs to be ensured, among other things, by securing borders for a variety of purposes,
guaranteeing sufficient
levels of food safety, ensuring adequate market surveillance for
consumer protection, and through co-operation in the field of justice and home affairs. These
measures require various inspection and law enforcement arrangements.

In the field of justice and home affairs, as indicated, the Action Plans include a range of
actions aimed at strengthening the judicial system and developing adequate anti-corruption
capacity (see above under the political criteria). Further, the Plans foresee for all countries
also actions aimed at strengthening border management, in particular at future EU borders,
including through the implementation of a Schengen Action Plan; developing the relevant
capacity to implement the acquis and European practice on visas, migration and asylum;
preparing for the participation in the Schengen information system; ensuring due co-operation
between all actors in the fight against organised crime; guaranteeing proper data protection;
and preparing for the implementation of community instruments on judicial co-operation.

11

Concrete measures include the adoption of outstanding legislation; the establishment or
including through reorganisation, budget and staff
reinforcement of relevant structures,
increases, and investment for equipment; the training of officials, police officers, judges and
public prosecutors; the development of procedures, operational guidelines and manuals, as
well as of databases and IT systems; and the establishment and reinforcement of command,
control and co-ordination centres in the fight against organised crime. The Action Plans
foresee supplementary assistance for
the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Slovakia and Slovenia in this area, focusing on such issues as border
protection, the management of migration and asylum issues, the implementation of visa policy
and the development and strengthening of consular facilities, reinforcing data protection
authorities, and the development of information systems and databases.

With a view to guaranteeing food safety throughout the food chain, the Action Plans for all
countries foresee actions to upgrade food processing establishments and inspection
arrangements to enforce the veterinary and phyto-sanitary acquis, as well as the food safety
acquis covering the free movement of goods. Specific measures include the adoption of
outstanding legislation; the strengthening of relevant structures, including through budget and
staff increases; the establishment of inter-ministerial co-ordination groups and scientific
committees; the establishment or upgrading of laboratories, border inspection posts (BIPs),
and a Rapid Alert System for Foods (RASFF); the development of Hazard Analysis and
Critical Contact Point (HACCP) auditing; the development or upgrading of databases and
computerised networks; and the creation of training structures for inspectors, for laboratory
staff as well as for food operators, including the training of veterinarians and slaughterhouse
personnel on TSE. Supplementary assistance is foreseen for the Czech Republic, Hungary,
Latvia, Poland, Slovakia and Slovenia, including twinning on TSE control and on market
surveillance in the food chain, and assistance for the creation and upgrading of BIPs.

As regards consumer protection, the Action Plans foresee for Bulgaria, the Czech Republic,
Estonia, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia actions to ensure
the effectiveness of administrative structures,
those involved in market
surveillance. Concrete measures include the strengthening of relevant structures, including
through budget and staff increases; the creation of regional networks of market surveillance
offices and conciliation courts; training for staff and judges; the development of periodical
surveillance programmes and monitoring and audit procedures; and public awareness
campaigns. Supplementary assistance through twinning is foreseen in this area.

in particular

Ensuring the proper management of Community funds.

This requires the presence of appropriate structures at central, regional and local level to fulfil
such tasks as the application of public procurement rules, financial control, audit, and the
fight against fraud and corruption. Furthermore, as set out above, there is also a need for
adequate administrative capacity for the programming, management and control of structural
instruments.

In the area of financial control, which is of central importance in this regard, the Action Plans
for all countries include actions aimed at strengthening the relevant structures for public
internal financial control (PIFC), external audit, and the fight against fraud, including an anti-
fraud structure that is in charge of co-ordinating all legislative, administrative and operational
asepcts related to the protection of the EC financial interests, and can serve as a contact point
for OLAF; and at ensuring the correct use, control, monitoring and evaluation of EC pre-
accession funds, as a key indicator of each country’s capacity in this area. Specific measures

12

include the adoption of outstanding legislation; the establishment or reinforcement of relevant
structures, including through budget and staff increases, covering also regional and local
levels; the training of staff and the creation of sustainable institutional training facilities; the
development of procedures and techniques; the establishment or upgrading of an IT strategy
and IT systems; and the setting up of inter-ministerial financial control committees.
Supplementary assistance is being provided for the Czech Republic, Estonia, Lithuania,
Poland and Slovenia,
including assistance for the development of PIFC mechanisms,
strengthening the operational capacity and the independence of the Court of Audit, and the
development of sustainable training facilities for financial controllers and internal auditors.

The availability of reliable statistics is another key element for the implementation of
Community policies in many areas. The Action Plans for Bulgaria, Cyprus, the Czech
Republic, Estonia, Latvia, Lithuania, Malta, Poland, Romania and Slovakia include actions
aimed at further strengthening statistical capacities, including at regional level. Concrete
measures include the strengthening of relevant structures, including through budget and staff
increases; training; the upgrading of infrastructure, including the development and upgrading
of IT systems; and the upgrading of survey methodology. Supplementary assistance for this
purpose is foreseen for the Czech Republic, Lithuania and Slovakia,
in particular to
strengthen statistical capacities at regional level.

2.

ENHANCED MONITORING PROCESS

The Commission monitors systematically and on a continuous basis the implementation of
commitments negotiating countries have made in the negotiations, drawing attention to any
problems that may have arisen, so that appropriate remedial action may be taken.

The enhanced monitoring process is based on country monitoring reports, which are now
being complemented by the monitoring actions identified through the Action Plans for
reinforcing administrative and judicial capacity.

The country monitoring reports give an overview both globally and chapter by chapter of
where each negotiating country stands in implementing commitments made in the accession
negotiations. These commitments reflect the results of the accession negotiations, and, in
accordance with the principle of differentiation underlying the negotiation process, may differ
between countries. Where negotiating countries have committed themselves to completing
specific measures by the time of accession, the Commission assesses the relevant preparatory
processes. Each country report
includes an assessment of progress in adopting and
implementing the acquis in accordance with the commitments made by each country, and
highlights issues that require close attention. These reports also provide an overview of
positions taken by the negotiating countries during the negotiations, such as requests for
transitional measures or reservations, and where appropriate, of positions taken by the EU.

The Action Plans for reinforcing administrative and judicial capacity constitute an additional
instrument to monitor the implementation of commitments related to the development of each
country's administrative and judicial capacity. Furthermore, as set out below, in a number of
areas the process of developing the Action Plans has revealed a need for additional
monitoring to accurately assess each country's preparations. In these areas, peer reviews and
other additional monitoring actions are being organised, to further enhance the monitoring
process.

13

The enhanced monitoring process shows that most of the commitments made by the candidate
countries are up till now being met in accordance with the agreed timetables, although further
efforts are needed in a number of areas. An overview of the findings for each chapter,
drawing attention to specific areas where further efforts are required, is provided below.

2.1.

Chapter-by-chapter overview

Free movement of goods (Chapter 1)

The Chapter has been provisionally closed with all countries, except Bulgaria and Romania.

The EU has only accepted a very small number of transitional periods in this chapter. These
transitional periods concern the renewal of marketing authorisations for pharmaceuticals in
five negotiating countries (Cyprus, Lithuania, Malta, Poland and Slovenia) and the expiration
of the validity of certificates for medical devices in Poland and Cyprus.

the implementation of commitments made by negotiating countries during the
Overall,
negotiations is proceeding without major delays in most cases, yet needs to be further
accelerated. Particular attention should be paid to the areas of public procurement, where
legislative transposition (especially the questions relating to the scope, procedures and
remedies) needs to be completed and enforcement structures reinforced, food safety, where
additional efforts as regards the administrative capacity are necessary, and the non-
harmonised area, where the process of legislative screening needs to be completed and its
results implemented. Concerning harmonised product legislation, particular attention should
be focussed on the reinforcement of administrative capacity, especially in areas such as
market surveillance, and standards.

Free movement of persons (Chapter 2)

The Chapter has been provisionally closed with all countries, except Bulgaria and Romania
with whom negotiations are ongoing.

The key issue in this chapter is that of free movement of workers. The EU has proposed a
transitional arrangement of up to seven years for access to labour markets, except in the case
of Malta and Cyprus. Eight countries have been able to accept this arrangement, subject to
reciprocity. A specific arrangement has been granted to Malta.

Overall action is being undertaken by the countries to respect the deadlines necessary for
implementation of the acquis. However, attention should be paid to the area of mutual
recognition of professional qualifications, where all necessary administrative bodies should be
operational well before accession, and where, for the professions subject
to mimimal
education and training requirements, particularly in the health sector, legislative alignment
should be ensured and training adapted, so as to ensure the application of the relevant acquis
as of accession. Moreover, in the area of co-ordination of social security, reinforcement of
administrative capacity needs to continue.

Free movement of services (Chapter 3)

The Chapter has been provisionally closed with all countries except Romania, with whom
negotiations are not yet open.

For Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia, transitional periods
up to five years have been agreed for reaching minimum levels of guarantees for banking

14

deposits or investor protection. Cyprus, Hungary, Latvia, Lithuania, Poland and Slovenia
have been accorded, in line with existing Member States, exemption or transitional periods
from the banking acquis for very small or specific credit institutions.

Overall, a substantial amount of alignment has been achieved in most countries, and the
schedules of commitments have largely been respected. Nevertheless, important work remains
to be done which will require further close monitoring. Particular attention should be paid in
certain countries to completing harmonisation in banking,
investment services and the
securities market, and the protection of personal data, as well as to the removal of
discrimination in the provision of services.

Free movement of capital (Chapter 4)

The Chapter has been provisionally closed with all countries except Hungary and Romania,
with whom negotiations are ongoing.

The key issue in the negotiations in this chapter is the investment in real estate (agricultural
land and forests, as well as secondary residences). A 7-year transitional period for
agricultural land and forests has been agreed with Bulgaria, the Czech Republic, Hungary,
Slovakia and Poland (12 year in the case of Poland), and a 5-year transitional period for
secondary residences has been agreed with Bulgaria, Cyprus, the Czech Republic, Hungary
and Poland. A specific arrangement has been found for Malta.

In most cases commitments have been met, with many countries having progressed well with
the liberalisation of capital movements. However, in the area of direct investments, and in
particular the investment in agricultural land, several countries have to ensure that their
legislation is in line with the acquis. Special attention must be given to the proper
implementation of the money laundering directives.

Company law (Chapter 5)

The Chapter has been provisionally closed with all countries. The Union has proposed a
specific mechanism in the field of pharmaceutical products and Community trademark, which
has been accepted by all negotiating countries.

Overall, negotiating countries are fulfilling the commitments made in the negotiations. A key
area within this chapter relates to the enforcement of intellectual and industrial property
rights, and in particular the fight against piracy and counterfeiting. While the transposition of
the Intellectual and industrial property rights advances at a satisfactory pace, the level of
enforcement of the legislation in the negotiating countries needs to be closely monitored.
Efforts to improve enforcement in this field will have to address a number of issues, in
training
fines,
particular concerning border controls,
enforcement officials
co-ordination among
enforcement bodies, mainly police, judiciary and customs.

increase of the level of

judiciary) and further

(customs, police,

regular

Competition (Chapter 6)

The Chapter has been opened with all countries, and provisionally closed with Estonia,
Slovenia, Latvia and Lithuania.

15

Cyprus, Malta, Slovakia and Poland have requested a number of different transitional periods
investment as well as for key or
in relation to state aids for foreign and individual
restructuring industries. In addition, Hungary has requested a six-month adaptation period
with regard to the application of a number of Community anti-trust regulations. The EU
considers this a technical adaptation, which will be taken up in the Accession Treaty, subject
to the legal framework in force at the time. All of these requests are under negotiation. The
remaining countries have not requested any transitional periods.

A key problem of this chapter continues to be the granting of State aid which is not
compatible with the acquis, mainly in the form of fiscal incentives typically granted to foreign
investors, which needs to be converted into compatible (regional investment) aid, and aid to
support ailing industries. In addition, a number of countries still need to take important steps,
including the implementation of restructuring plans, in order to resolve all issues related to the
granting of aid to certain sectors (steel, shipbuilding). By contrast, compliance with the acquis
on anti-trust legislation is generally well advanced, but continuous attention has to be devoted
to the enforcement of the rules.

Agriculture (Chapter 7)

The Chapter has been opened with all countries except Romania.
provisionally closed with any country.

It has not been

For Estonia, Hungary and Slovenia, all veterinary and phytosanitary issues have been
clarified. In this context, transitional periods have been agreed with Hungary and Slovenia for
animal welfare (laying hens in battery cages) and with Hungary for public health in
establishments. Most veterinary issues have been clarified with Cyprus. The overall principle
for the negotiations in this field is that the high level of food safety in the existing Union will
be maintained by ensuring that internal market control systems are effectively implemented.
A number of requests, including on market-related issues, are still under negotiation. Malta is
reluctant to accept the principles of internal market rules in the veterinary field.

In the veterinary and phytosanitary fields, transposition of the acquis into national legislation
is ongoing, and will need to be in place well in advance of accession. For many candidate
countries a reinforced effort will be needed to meet the ambitious programme they have set
out for themselves in this domain, in particular regarding upgrading Establishments, TSE
measures and adequate Border Inspection Posts capacity.

Important progress has also been made in setting up the administrative structures for the
Common Agricultural Policy. Further efforts are however necessary, in particular as regards
the establishment of the Paying Agency and Integrated Administrative Control System
(IACS) and the setting up of structures for rural development.

Fisheries (Chapter 8)

The Chapter has been opened and provisionally closed with all countries except Poland and
Malta.

The EU has agreed a transitional arrangement with Latvia concerning a specific management
regime for the entire Gulf of Riga. Malta has requested specific arrangements, which are still
under discussion.

16

Progress in the fulfilment of commitments is generally satisfactory. However, particular
including marketing standards,
attention should be paid to the areas of market policy,
legislative alignment in resources management; and implementation of Community structural
actions legislation, in particular the fishing vessel register.

Transport (Chapter 9)

The Chapter has been opened with all countries. It had been provisionally closed with all
countries except the Czech Republic, Poland, Bulgaria, and Romania.

A significant number of transitional periods have been requested by the negotiating countries.
In the road, rail and aviation transport sectors, a number of requests for limited transitional
periods have been accepted in the case of Cyprus, Hungary, Latvia, Lithuania, and Malta.

The EU has proposed a transitional arrangement requiring that access of non-resident hauliers
to the national road transport market of other Member States should, in certain cases, be
phased in gradually. The proposal is to reciprocally restrict the access to the national transport
markets between current and certain new Member States up to a maximum period of five
years in progressive stages. All negotiating countries concerned except the Czech Republic
have agreed to this proposal.

Fulfilment of commitments undertaken in the negotiations is generally satisfactory. However,
particular attention should be paid to the areas of road transport, where most negotiating
countries need to complete harmonisation of vehicle tax rates, and maritime transport, where
a number of countries need to reinforce their maritime safety authorities.

Taxation (Chapter 10)

The Chapter has been opened with all countries and provisionally closed with Cyprus, the
Czech Republic, Lithuania, Poland, Slovenia and Slovakia.

All negotiating countries have requested transitional periods and,
in the case of Malta,
specific arrangements in the field of indirect taxation, i.e. VAT and excise duties. In most
cases, requests aim at maintaining the levels of VAT and excise duties on specific goods or
services at a lower level than required by the acquis. Some transitional periods were accepted
by the EU for Cyprus,
the Czech Republic, Hungary, Lithuania, Poland, Slovakia and
Slovenia.

Countries are generally meeting their commitments. Overall, legislative alignment on indirect
taxation is progressing smoothly and in line with agreed timetables. Negotiating countries
have declared that they accept and will apply the principles of the Code of Conduct for
business taxation. The Commission is in the process of analysing the relevant legislation in
negotiating countries, with a view to identifying potentially harmful practices not in line with
the Code of Conduct.

Economic and monetary union (Chapter 11)

The Chapter has been provisionally closed with all countries except Romania, with whom it is
not yet open. No transitional periods have been requested.

17

Countries are generally meeting their commitments, although there are delays in the detailed
schedule of implementation. However, legislation regarding the independence of the central
banks and legislation prohibiting privileged access of the public authorities to financial
institutions and prohibiting direct financing of the public sector should be further aligned.

Statistics (Chapter 12)

The Chapter has been provisionally closed with all countries. No transitional periods have
been requested.

For all countries commitments are largely being implemented as foreseen and there are no
major problems. However, attention should be paid to sustaining and reinforcing
administrative structures and to improving the availability of regional statistics.

Social Policy (Chapter 13)

The Chapter has been provisionally closed with all countries.

In recognition of the objective difficulties encountered in implementing certain elements of
the health and safety acquis ,as well as that on public health and labour law, a number of
transitional arrangements have been granted up until the end of 2005 for Latvia, Malta,
Poland, Slovenia and Hungary, and until 2010 for Bulgaria, on issues including public health
(tobacco legislation) and workplace-related issues

In general, negotiating countries have provided detailed timetables for adoption and
implementation of all measures, and are thus meeting their commitments. However, some
legislative work remains for all countries, particularly in health and safety and equal
treatment, and social dialogue needs to be reinforced.

Energy (Chapter 14)

The Chapter has been provisionally closed with all countries, except Bulgaria, Estonia,
Lithuania and Romania with whom negotiations are ongoing.

Transitional periods on oil stocks have been agreed up until the end of 2009 for Cyprus,
Czech Republic, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. One transitional
period on the Gas Directive until the end of 2004 has been agreed for the Czech Republic.
Estonia has requested a special arrangement as regards oil shale.

Most countries are meeting their commitments. Attention should be paid to the areas of oil
stocks, where some countries need to continue efforts on building up emergency stocks, and
the internal energy market, where negotiating countries need to open up their electricity and
gas markets. Concerning nuclear safety and closure commitments for non-upgradable units of
certain nuclear plant must be provided and respected, and therefore duly included in the
Accession Treaty. In Slovakia, this concerns the closure of Bohunice V-1 NPP unit 1 in 2006
and unit 2 in 2008.
In Bulgaria it concerns the closure of units 1-4 of Kozloduy NPP.
Commitments have been undertaken for the closure of units 1 and 2 before 2003. In Lithuania
it concerns the closure of units 1and 2 of Ignalina NPP. Commitments have been undertaken
for the closure of units 1 before 2005.
It is recalled that the EU requests the closure of unit 2 of Ignalina NPP in Lithuania by 2009.
With regard to units 3 and 4 of Kozloduy NPP, the EU expects closure not later than 2006.

18

Industry (Chapter 15)

The Chapter has been provisionally closed with all countries except Romania, with whom
negotiations are not yet open. No transitional periods have been requested.

In all countries that have opened the chapter, industrial policy is in line with the concepts and
principles of EU Industrial policy. However, further progress needs to be made in the area of
restructuring, in particular in the steel sector for some countries.

Small and medium enterprises (Chapter 16)

The Chapter has been provisionally closed with all countries. No transitional periods have
been requested.

Negotiating countries’ policy on SMEs is broadly in line with the principles and objectives of
EU enterprise policy. Further efforts for promoting competitiveness are required.

Science and research (Chapter 17)

The Chapter has been provisionally closed with all countries. No transitional periods have
been requested.

No problems are expected in this chapter. All negotiating countries participate in the Research
Framework Programme.

Education and training (Chapter 18)

The Chapter has been provisionally closed with all countries. No transitional periods have
been requested.

No particular problems are expected in this chapter. However, some countries should make
further efforts to align their legislation with the acquis on the education of children of migrant
workers.

Telecommunication (Chapter 19)

The Chapter has been provisionally closed with all countries except Romania, with whom
negotiations are ongoing. A two-year transitional period has been agreed for Bulgaria for the
implementation of legislation on operator number portability.

Countries have generally met their commitments. However, in the coming 18 months most
countries will face market opening at the same time as implementing the present acquis, while
the new regulatory framework for
ensuring the transposition and implementation of
telecommunications that has just been adopted by the EU. For the postal sector, considerable
efforts are needed in most countries to adopt the acquis and lay the basis for the liberalisation
of the market through the separation of former state postal monopolies and new national
regulatory authorities.

Culture and audiovisual (Chapter 20)

19

The Chapter has been provisionally closed with all countries except Hungary and Romania,
with whom negotiations are ongoing. No transitional periods have been agreed and there are
no requests outstanding.

Negotiations in this chapter have focused upon alignment with and implementation of the
Television Without Frontiers Directive. The countries with which the chapter has been closed
to date have introduced legislation providing for a high degree of alignment, even if in some
cases further adjustments or secondary legislation are still needed to achieve full alignment.

Regional policy and co-ordination of structural instruments (Chapter 21)

The Chapter has been opened with all countries and has been provisionally closed with
Cyprus and the Czech Republic. No transitional periods have been requested.

The acquis under Chapter 21 does not require transposition into national legislation, however
all countries do need to have the appropriate legal framework for the implementation of the
specific provisions in this area in place.

Overall, with some exceptions, good progress has been made. Specific areas that require
attention include the final implementation structures, the division of responsibilities between
the different bodies involved, the development of their human resources and, for some
countries, the designation of managing and paying authorities for Structural and Cohesion
Funds and the adoption of legislation allowing for multiannual budgeting. Specific attention is
also required for the establishment of reliable financial management and control procedures
and development of monitoring systems.

Environment (Chapter 22)

The Chapter has been provisionally closed with all countries except Bulgaria, Malta and
Romania, with whom negotiations are still ongoing.

Limited transitional periods have been granted in various specific areas, for Cyprus, the
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.
Transitional measures have only been agreed on the basis of detailed implementation plans,
including financing strategies and intermediate targets. These intermediate targets will need
to be inserted in the Acts of Accession.

legislation is progressing well

Most of the commitments made within the negotiations have been met without major delays
especially as regards framework and horizontal legislation. In most cases implementation of
sectoral
in accordance with the timetables established.
However, particular attention should be paid to the areas of water quality, where pollution
reduction programmes need to be established, nature protection, where designation of
protection areas needs to be completed, waste management, where plans need to be finalised
and collection systems upgraded, and chemicals and GMOs where the necessary
administrative structures will need to be in place by accession.

Consumers and health protection (Chapter 23)

The Chapter has been provisionally closed with all countries. No transitional periods have
been agreed in this chapter.

20

In all negotiating countries, preparations have progressed and key framework legislation as
well as implementing measures have been adopted. Nevertheless, further efforts are needed in
all countries to complete alignment and to develop an adequate administrative capacity for
enforcing the consumers and health protection acquis by accession.

Justice and home affairs (Chapter 24)

The Chapter has been provisionally closed with Cyprus,
the Czech Republic, Estonia,
Hungary, Lithuania, Malta and Slovenia while negotiations are ongoing with all other
countries.

This is not a chapter where the negotiations focus on transition periods, and neither the
negotiating countries nor the EU have any requests for these on the table. In essence, it will
rather be necessary to find ways to build confidence, among Member States,
in the
negotiating countries’ capacity to implement the acquis in this area.

So far,
few delays have been observed in meeting commitments undertaken in the
negotiations. Monitoring focuses on the need to ensure that the negotiating countries are
equipped to meet adequate and acceptable standards of implementation on issues such as
border control, illegal migration, asylum, money-laundering, organised crime, and police and
judicial co-operation. A key issue to verify is the implementation of the Schengen Action
Plans submitted by each country; these plans cover not only the period until EU accession, but
up to the moment - some years after accession - when internal border controls can be lifted.
The establishment of an independent, reliable and efficient judiciary and police organisation
are also of paramount importance.

Customs union (Chapter 25)

The Chapter has been provisionally closed with all countries except Bulgaria, Malta and
Romania, with whom negotiations are ongoing.

The EU has agreed to a three-year transitional arrangement for Hungary on the import of
aluminium.

Overall, commitments are being met. Specific areas that require close attention are ensuring
connectivity with EC customs computerised systems and, for some countries, ensuring full
compliance of their customs code with the acquis and its proper implementation.

External relations (Chapter 26)

The Chapter has been provisionally closed with all countries. No transitional periods have
been agreed (several requests were made, but none were accepted).

No particular difficulties are expected with the negotiating countries’ adherence to
implementation. However,
Community legislation in this field, or with its practical
negotiating countries need to ensure that
international agreements incompatible with
membership are renegotiated or renounced by the date of accession, in order to ensure full
compatibility with the EC’s international obligations by accession.

21

Common foreign and security policy (Chapter 27)

The Chapter has been provisionally closed with all countries. No transitional periods have
been requested.

The foreign and security policy pursued by all the negotiating countries is generally in
conformity with the CFSP. Hungary will however need to amend its law on Hungarians
living in neighbouring countries, as foreseen by the law in question, to align with the acquis at
the latest upon accession.

Financial control (Chapter 28)

The Chapter has been provisionally closed with all countries except Bulgaria and Romania.
Negotiations are ongoing with Bulgaria whilst the Chapter is yet to be opened with Romania.
No transitional periods have been requested.

The main issues at stake in the negotiations on this chapter include the adoption and
implementation of the necessary legislation in the area of Public Internal Financial Control. In
addition, the negotiating countries should confirm the independence of their external control
bodies. Furthermore, it is important that negotiating countries closely co-operate with OLAF
and ensure proper use of and control over EC pre-accession and future funding.

All countries with whom the chapter has been provisionally closed have reached a high
degree of legislative alignment. However, all countries still need to continue efforts to
properly implement
their commitments in the
negotiations.

the legislation in order

to fully meet

Financial and budgetary provisions (Chapter 29)

The Chapter has been opened with all countries except Romania. No country has yet
provisionally closed the Chapter. All negotiating countries that have opened the chapter have
requested transitional arrangements concerning their contribution to the EC budget (Own
Resources).

The acquis consists mainly of Community legislation which is directly binding on the
Member States and does not require transposition into national law. The key requirement
under this chapter is the creation of appropriate administrative capacity to adequately co-
ordinate the calculation, collection, payment and control of own resources. All countries have
made progress in this regard as they prepare for full application of the Own Resources rules
by putting in place measures to co-ordinate the various actors involved such as customs and
taxation authorities, national statistical offices and financial control bodies.

2.2.

Peer reviews and other additional monitoring actions

The process of developing the Action Plans has revealed a number of areas where there is a
need for additional monitoring to properly assess each country's preparations. This includes
areas where the Commission does not have all relevant expertise to judge the readiness of the
candidate countries' administration, since implementation is largely up to Member States, and
where the necessary information cannot be obtained through existing channels such as
technical meetings.
In such areas, the Commission draws on the expertise from Member
States by organising peer reviews. Peer reviews are evaluation exercises in which experts
from Member States and the Commission in charge of implementing and enforcing the acquis

22

in a certain domain, evaluate the level of preparation of, and formulate advice for, their
counterparts in the negotiating countries. Similar peer review mechanisms also exist among
EU Member States. The Commission's 2001 Enlargement Strategy paper indicated that peer
reviews could very usefully complement other monitoring tools to deepen the assessment of
the implementation of commitments made by the negotiating countries in the accession
negotiations, and to identify weaknesses in administrative systems and capacity as well as
potential solutions.

In addition to the ongoing peer reviews in the areas of financial services, mutual recognition
of qualifications, nuclear safety (under the auspices of the Council), Justice and Home
Affairs, payment systems (under the auspices of the European Central Bank) and customs, on
the basis of the analysis in the context of the Action Plans, peer reviews are now being
organised in a range of further areas. These concern in particular the following issues: Rapid
Alert Systems for Foods (RAFSS); NFoods (including GMOs); data protection; food
processing establishments, border inspection posts and bovine databases; various issues
the
related to the implementation of the common agricultural policy,
functioning of labour inspectorates (through the Senior Labour Inspectors Committee);
epidemiological surveillance and the control of communicable diseases; postal services; a
range of
safety; and the
in the environmental domain; general product
implementation of the dual use goods regulation.

including IACS;

subjects

Besides these various peer reviews, the analysis of the Action Plans has led to, or confirmed a
number of other, monitoring actions. Thus,
the Commission services are undertaking
assessments of negotiating countries' implementation and enforcement capacity in the non-
harmonised area related to the free movement of goods and the freedom to provide services;
on intellectual property rights; anti-trust and state aid; maritime safety, road and railway
transport; taxation; statistics; the internal energy market; and public internal financial control.
The Commission services are also organising the monitoring of the telecommunications
services market in the negotiating countries, as well as IT assessments for taxation and
customs, and are ensuring follow-up to the Joint Assessment of Employment Policy Priorities.
Further, the Commission's Food and Veterinary Office is undertaking a range of assessment
missions,
including on TSE and establishments, and bilateral contacts are taking place
between the Commission services and each negotiating country on the elaboration of the
development plan for the implementation of the Structural Funds. Monitoring of the
including the Extended Decentralised
implementation of pre-accession instruments,
Implementation System (EDIS), continues.

The results of these additional monitoring actions will be an important source, not only in the
monitoring of the negotiations, but also for the preparation of the Commission's 2002 Regular
Reports.

3.

CONCLUSIONS

As shown above, negotiations are progressing satisfactorily and negotiating countries are
generally meeting their commitments in the negotiations up till now, in accordance with the
agreed timetables. Some areas requiring particular attention, such as, inter alia, food safety
and the management of Community funds have been identified under the various chapters.
These are related both to the adoption and implementation of the acquis. It is important that
negotiating countries take all necessary corrective measures to remedy these problems, and
ensure that they meet all the commitments in due time. The Commission will continue to
closely examine these issues.

23

The Commission will provide a detailed assessment of each country's effective progress
the
towards meeting all accession criteria in its 2002 Regular Reports.
Commission will continue the monitoring process up until the actual accession of the new
Member States.

Furthermore,

After accession, as indicated in the Commission's 2001 Enlargement strategy paper, "the
Commission will check, in its role as guardian of the Treaties, how the acquis is implemented
by the new Member States, using the same mechanisms applied to existing Member States."

Meanwhile,
the process of developing comprehensive Action Plans with each of the
negotiating countries has allowed to identify jointly with each country concerned the next
steps to be taken for achieving the necessary administrative and judicial capacity by the time
is important that candidate
of accession, and to set out detailed work programmes.
countries make full use of the opportunities offered by the Action Plans, and speed up their
efforts along these lines.

It

All Member States are expected to adjust regularly their administrative capacity to the
evolving needs of the acquis. Building up an adequate administrative capacity is a process
that will not end with accession, but will need to continue beyond. This demonstrates the
importance of the Commission's proposal to give further support for this purpose to the new
Member States after accession, through a special transition facility.

24