Communication from the Commission to the Council and the European Parliament - Roadmaps for Bulgaria and Romania
Date: 2002-11-13
Institutions: European Commission
Subjects: Bulgaria, Community acquis, Romania, accession criteria, accession to the European Union, pre-accession strategy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.11.2002
COM(2002) 624 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT

Roadmaps for Bulgaria and Romania

COMMUNICATION FROM THE COMMISSIONTO THE COUNCIL AND
EUROPEAN PARLIAMENT

Roadmaps for Bulgaria and Romania

1. 

INTRODUCTION

In  the  Strategy  Paper  ‘Towards  the  Enlarged  Union1’,  of  9  October  2002,  the  Commission
announced  that  it  would  propose,  on  the  basis  of  the  analysis  in  the  2002  Regular  Reports,
detailed roadmaps for Bulgaria and Romania before the Copenhagen European Council.

In  the  Conclusions  of  the  Brussels  European  Council  of  24-25  October  2002,  the  Union
agreed with the Commission’s evaluation of the progress achieved by Bulgaria and Romania.
In the light of the inclusive and irreversible nature of the enlargement process and based upon
the Commission’s Strategy Paper, the Council and the Commission were invited to prepare, in
close  consultations  with  Bulgaria  and  Romania,  the  necessary  decisions  at  the  European
Council  in  Copenhagen  concerning  first  of  all  detailed  roadmaps,  including  timetables,  and
increased  pre-accession  assistance  in  order  to  advance  the  accession  process  with  these
countries.  The  European  Council  expressed  its  support  for  Bulgaria  and  Romania  in  their
efforts to achieve the objective of membership in 2007.

The roadmaps for Bulgaria and Romania cover the period up to accession. Their purpose is to
indicate the main steps that they need to take to be ready for membership. They are based on
the  commitments  made  in  the  negotiations  and  on  what  needs  to  be  done  to  fulfil  the
Copenhagen  and  Madrid  criteria  for  membership.  They  also  follow  the  principles  that  have
guided  the  accession  process  from  the  outset,  notably  that  all  candidates  participate  on  an
equal footing and all are expected to join the European Union on the basis of the same criteria
and depending on their individual progress.

The  roadmaps  aim  to  support  the  two  countries’  efforts  to  meet  the  remaining  criteria  for
membership  by  identifying  the  tasks  ahead  and  providing  increased  financial  assistance.
There is particular emphasis on administrative  and judicial capacity necessary to implement
the acquis and on economic reform.

For  the  acquis  chapters,  the  roadmaps  provide  benchmarks  against  which  Bulgaria  and
Romania’s  progress  can  be  monitored.  These  cover  both  alignment  of  legislation  and
development of administrative capacity. A detailed assessment of the remaining challenges is
contained  in  the  Overall  Assessment  and  Conclusions  of  the  2002  Regular  Reports  on
Bulgaria2 and on Romania3. Short and medium term issues are identified in the roadmaps and
will be further developed in the revised Accession Partnerships to be presented next year.

The  roadmaps  are  based  on  the  principle  that  progress  in  the  negotiations  is  largely
determined by progress in putting into place and implementing the necessary reforms. Hence
the  roadmaps  identify  the  measures  which  the  countries  need  to  adopt  in  order  to  move

1 (COM(2002) 700 final)
2 (COM(2002) 700 final)
3 (COM(2002) 700 final)

2

                                                
forward towards the conclusion of the accession negotiations. The roadmaps do not entail any
new  conditions  or  practices  in  accession  negotiations.  The  closure  of  negotiating  chapters
with Bulgaria and Romania will continue to take place according to the established practices
of the accession negotiations.

For the chapters  where negotiations have been provisionally closed, the challenge now is to
ensure that commitments are met on time. For that reason, for chapters provisionally closed,
the  commitments  taken  in  negotiations  and  accepted  in  the  Accession  Conference  form  the
basis of the roadmap. The roadmaps do not replace negotiation documents, submitted to the
Accession Conference.

In chapters where negotiations are still under way, the roadmaps identify key issues that will
need  to  be  tackled  in  order  for  progress  to  be  made  in  negotiations.  The  roadmaps  will  be
updated periodically in view of developments in the countries and progress in negotiations.

2. 

ADMINISTRATIVE AND JUDICIAL CAPACITY

While  alignment  of  legislation  is  essential,  this  needs  to  be  accompanied  by  appropriate
judicial  and  administrative  capacity  to  implement  and  enforce  the  acquis.  This  has  been
stressed at the European Council in Madrid in 1995 and on a number of subsequent occasions.
As  regards  Bulgaria  and  Romania,  the  Gothenburg  European  Council  in  2001  stated  that
candidate  countries  must  make  “continued  progress  […]  in  transposing,  implementing  and
enforcing the acquis. They  will have to pay particular attention to putting in place  adequate
administrative  structures,  to  reforming  judicial  systems  and  the  civil  service,  […].  Special
efforts will be devoted to assisting Bulgaria and Romania.”

The  process  of  administrative  and  judicial  reform  is  underway,  but  preparations  for
membership in all areas of the acquis will benefit from accelerated progress on these issues.

To strengthen support in this area, the Commission will pay special attention to these areas in
the  programming  of  future  Phare  financial  assistance.  Phare  support  should  also  be  used  to
assess the implementation and enforcement of the acquis in key areas.

The Commission will continue to support institution building relevant to the implementation
of the  acquis and management  of  EC  funds.  Consideration  will  be  given  to  further  projects
that address public administration and judicial reform.

3. 

FINANCIAL ASSISTANCE

As  indicated  in  the  Strategy  Paper,  the  Commission  proposes  that  financial  assistance  to
Bulgaria  and  Romania  should  be  increased  considerably  from  the  date  of  the  first  round  of
accessions,  linked  to  progress  in  implementing  the  roadmaps  and  their  absorptive  capacity.
This  increase  is  intended  to  support  Bulgaria  and  Romania  in  taking  the  remaining  steps
necessary to meet the criteria for membership.

The  Accession  Partnerships  will  continue  to  be  the  basis  for  programming  pre-accession
assistance, but priorities for assistance will also be drawn from the roadmaps, Regular Reports
and  revised  National  Development  Plans  to  be  prepared  by  each  country  in  line  with
Structural Funds requirements.

3

3.1. 

Needs

The  analyses  in  the  2002  Regular  Reports  lead  to  the  conclusion  that,  whilst  Bulgaria  and
Romania are making progress the countries have a high level of need, in terms of:

– 

– 

– 

– 

agricultural and rural development,

transport and environment infrastructure,

economic and social cohesion,

investment and institution building related to the implementation of the acquis.

The  three  existing  instruments,  Phare,  ISPA  and  SAPARD,  can  support  programmes  in  the
areas  required  so  no  change  in  the  instruments  available  is  proposed.  Additional  assistance
will also help Bulgaria and Romania prepare for participation in the Structural Funds.

3.2. 

Increased funding

While the needs are clear, Bulgaria and Romania should improve significantly their capacity
to manage and use funds effectively.

Additional  assistance  will  therefore  be  conditional  on  making  progress  in  line  with  the
roadmaps and to improving significantly capacity to manage and use funds effectively. In this
light, the implementation of extended decentralisation (EDIS) for Phare and ISPA by the end
of 2004 should be strongly encouraged.

Bulgaria and Romania have  already  begun  work on  extending  decentralised implementation
systems  for  both  Phare  and  ISPA,  but  if  required,  further  support  will  be  provided  to
accelerate this. SAPARD is already fully decentralised.

Thus  Bulgaria  and  Romania  have  begun  to  develop  capacities  to  make  improved  use  of
existing funds. If preparations are continued  and  intensified they should be ready to receive
and use additional funds effectively from 2004 onwards.

In the light of the above, the Commission proposes that assistance for Bulgaria and Romania
should  increase  progressively  to  reach  the  level  of  an  additional  40%  in  2006.4  The
distribution between the three pre-accession instruments should be determined by the specific
needs and absorption capacities of each of the countries.

4. 

OBSERVER STATUS

Bulgaria  and  Romania  already  participate  in  a  number  of  Community  committees  and
agencies5. The Strategy Paper stated that after the signature of the Accession Treaty, acceding
States  should  be  given  the  possibility  to  further  participate,  wherever  legally  possible,  as
observers in all committees set up by the comitology procedure and all other committees. The
Commission  also  considered  that  acceding  States  should  be  able  to  participate  at  least  as

4 This increase will take as its base line the average assistance under Phare/ISPA/SAPARD for the two countries

in the period 2001 to 2003.

5  See  Commission  communication  of  20.12.99  on  “Participation  of  candidate  countries  in  Community

programmes, agencies and committees”, COM (1999) 710 final

4

                                                
observers  in  the  relevant  structures  of  all  Community  agencies.  It  went  on  to  state  that  the
general principles and details of this participation would be defined at a later stage.

These provisions also apply to Bulgaria and Romania.

5. 

MONITORING

Bulgaria and Romania have provisionally closed many chapters on the basis of the indicative
date for membership of 1 January 2007. It is particularly important for the candidate countries
and the EU to monitor closely the implementation of these commitments as well as progress
in economic reforms.

The  Europe  Agreement  structures,  which  are  used  to  review  progress  on  all  Accession
Partnership priorities and on the Action Plans on administrative and judicial capacity, should
be used systematically for this purpose. The sub-committees provide the possibility to review
implementation  of  the  Accession  Partnership  priorities  as  well  as  progress  as  regards  legal
approximation,  implementation  and  enforcement.  The  Europe  Agreement  structures  remain
separate from the negotiation process.

Peer reviews have proved a useful mechanism in some areas and could be further developed.

The  Commission  will  continue  to  issue  Regular  Reports,  until  Bulgaria  and  Romania  have
fulfilled the criteria for accession. Future Regular Reports will include an  assessment  of the
implementation of the roadmaps.

6. 

REVISED ACCESSION PARTNERSHIP

The  Commission  will  propose  revised  Accession  Partnerships  for  Bulgaria  and  Romania  in
the  light  of  the  findings  of  the  2002  Regular  Reports  and  roadmaps.  The  Accession
Partnerships will continue to identify the priority areas for further work, based on the analyses
in the Regular Reports. They will complement the roadmaps and taken together, will be the
main tools guiding Bulgaria and Romania’s work on preparation for accession to the EU.

7. 

THE WAY FORWARD

The roadmaps, developed in this document,  and the methodology outlined  above,  provide  a
guide  which  will  permit  Bulgaria  and  Romania  to  complete  their  preparations  for  EU
membership  and  bring  the  accession  negotiations  to  a  successful  conclusion.  The  roadmaps
demonstrate  the  commitment  of  the  European  Union  to  work  with  Bulgaria  and  Romania,
with  additional  means  of  support,  to  achieve  our  shared  objective  of  accession  to  the
European  Union.  Bulgaria  and  Romania  have  set  the  year  2007  as  their  indicative  date  for
accession and this has been endorsed by the Brussels European Council. On the basis of the
principles which have guided the accession negotiations from the outset, the Commission will
strongly support Bulgaria and Romania’s efforts to achieve this objective.

5

ROADMAP FOR BULGARIA

INTRODUCTION

1. 
The analysis in the 2002 Regular Report6 on Bulgaria’s progress towards meeting the criteria
for  membership  is  that  Bulgaria  has  made  good  further  progress  towards  meeting  the
Copenhagen criteria:

– 

– 

– 

Bulgaria  continues to  fulfil  the  political criteria.  Accordingly,  while  efforts  need  to
be sustained in a number of areas, the roadmap does not address issues related to this
criterion.

Bulgaria  partly  meets  the  economic  criteria  in  that  it  is  a  functioning  market
economy,  however  it  is  not  yet  able  to  cope  with  competitive  pressure  and  market
forces within the Union. For this reason, the roadmap focuses on the remaining steps
Bulgaria needs to take in order to meet this criterion.

Bulgaria  does  not  yet  fully  meet  the  acquis  criteria.  In  order  to  complete  its
preparations  successfully,  Bulgaria  needs  to  continue  its  efforts  to  transpose,
implement  and  enforce  the  acquis.  It  also  needs  to  continue  the  reform  of  public
administration  and  the  judiciary  in  order  to  have  the  necessary  administrative  and
judicial capacity for this.

This  roadmap  aims  to  support  Bulgaria’s  efforts  to  meet  the  remaining  requirements  for
membership  by  identifying  the  tasks  ahead.  There  is  particular  emphasis  on  administrative
and judicial capacity necessary to implement the acquis and on economic reform.

For  the  acquis  chapters,  the  roadmap  provides  benchmarks  against  which  Bulgaria’s
commitments can be monitored.

2. 

ADMINISTRATIVE AND JUDICIAL CAPACITY

The 2002 Regular Report on Bulgaria concludes that it does not fully meet the acquis criteria.
It  states  that  “Bulgaria  still  needs  to  make  sustained  efforts  to  develop  sufficient
administrative  and  judicial  capacity  to  implement  and  enforce  the  acquis.  As  well  as
continuing  horizontal  reform  of  the  public  administration,  it  needs  to  focus  in  particular  on
developing the capacity to be part of the internal market and to apply the acquis in areas such
as agriculture, environment and regional policy. Further efforts are also required to establish
the  necessary  administrative  capacity  to  ensure  the  sound  and  efficient  management  of  EC
funds”.  Progress  in  these  areas  is  also  crucial  to  meeting  fully  the  economic  criteria  for
membership.

2.1. 

Administrative capacity

The  Regular  Report  2002  acknowledges  that  Bulgaria  has  made  further  progress  on
development  of  administrative  capacity  but  that  much  remains  to  be  done.  Bulgaria  has
adopted a Strategy for Modernisation of the State Administration and there has been progress
with revisions to the legislative framework but serious efforts are now required to develop and
implement reforms to ensure an efficient, transparent and accountable public administration.

6 (COM(2002) 700 final)

6

                                                
Transparent  procedures  need  to  be  applied  e.g.  for  recruitment  and  promotion,  providing
qualified staff to ensure sustainability of reforms, improving human resource management in
the  state  administration,  simplifying  and  clarifying  the  legal  framework  for  administrative
decision-making,  and  ensuring  legal  certainty.  Substantial  strengthening  of  administrative
structures  to  ensure  that  Bulgaria  has  the  capacity  for  fully  effective  use  of  EC  funds,
including  the  reinforcement  of  its  anti-fraud  structures,  is  also  necessary.  More  attention
needs  to  be  given  when  the  EC  acquis  is  transposed,  to  how  this  can  be  adapted  to  the
situation  in  Bulgaria  and  to  implementation  and  enforcement  capacity  at  national,  regional
and local levels.

A first step will be to encourage Bulgaria to prepare a fully comprehensive reform strategy,
including an action plan, in 2003. Once this is finalised, Phare projects will be developed to
implement specific reforms.

2.2. 

Judicial capacity

The Regular Report acknowledges that Bulgaria has made significant progress on the judicial
reform strategy with the adoption of an Action Plan and major amendments to the Law on the
Judicial System. However the judicial system remains weak and there has been little concrete
change in its functioning. In order for the Bulgarian judicial system to be able to play its role
in the further development of the economy and future enforcement of the acquis, the reforms
already agreed on in the National Reform Strategy for the Bulgarian Judicial System need to
be  fully  implemented  and  work  on  remaining  necessary  reforms  pursued.  Special  attention
should  also  be  given  to  reforms  to  the  structure  of  the  Bulgarian  judiciary.  In  particular
attention needs to be paid to how investigations are carried out. Also, the issue of immunity
needs to be addressed.

The  Commission  will  support  further  reform  efforts,  in  particular  with  a  view  to
implementation of the Strategy and Action Plan for Reform of the Judiciary. Projects in this
field will be financed from Phare in 2003 and subsequent years.

3. 

ECONOMIC REFORM

This year’s Regular Report has concluded that Bulgaria is a functioning market economy and
that it should be able to cope with competitive pressure and market forces within the Union in
the medium term, provided  that it  continues  implementing its reform  programme  to remove
remaining difficulties.

Bulgaria has achieved a high degree of macroeconomic stability and market mechanisms are
now working sufficiently to allow for a better allocation of resources. Good progress has been
made  in  structural  reforms,  especially  as  regards  procedures  for  market  entry,  the
restructuring of the financial sector and privatisation, thus setting the microeconomic basis for
a process of sustained growth.

However,  further  efforts  are  needed  to  improve  the  flexibility  of  markets.  In  particular,  the
efficiency of the administrative and judicial  system has to  be  reinforced, to  allow economic
agents  to  make  decisions  in  a  climate  of  stability  and  predictability.  Administrative
procedures  affecting  the  enterprise  sector,  including  bankruptcy  procedures,  must  be
streamlined. The  level of financial intermediation continues  to be  low.  Specific  deficiencies
remaining in the land market affect the performance of this market and of  related economic
sectors.  An  implementation  of  these  reform  measures  should  contribute  to  higher  levels  of
private and public investment which are key requirements for sustained growth and sufficient
competitiveness within the Union.

7

As  benchmarks  for  achieving  these  improvements,  the  Commission  will,  in  particular,  look
for positive developments in the following areas:

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Progress in the privatisation programme

Development  of  small  and  medium-sized  enterprises,  in  particular  the  number  of
start-ups

Implementation of the programme to reduce and simplify licensing procedures

Reform of customs and tax administrations

Efficiency of bankruptcy procedures

Development of financial intermediation and the non-banking financial sector

Enforcement of property rights

Number of transactions and prices of agricultural land

Volume  and  quality  of  public  investment,  including  infrastructure,  education
environment and health.

Reduction of State Aid, in particular in the energy and transport sectors.

4. 

THE CHAPTERS OF THE ACQUIS

Chapter 1: Free movement of goods

Bulgaria  should  focus  further  efforts  on  in  particular  the  development  of  a  national
conformity assessment system. In the field of public procurement, attention should be focused
on  the  establishment  of  an  Agency  as  scheduled  and  in  line  with  the  commitment  made  by
Bulgaria,  as  well  as  on  ensuring  effective  remedies  and  abolition  of  the  national  preference
scheme. Negotiations on this chapter are provisionally closed. Attention needs to be given to
ensuring commitments made in that process are respected. Key steps include:

Short term

Establish a state agency on public procurement.

Continue  transposition  of  harmonised  standards  in  the  field  of  new  approach  Directives.
Complete progressive alignment on the acquis on food safety.

Ensure that the transposition of New Approach Directives is completed and that the texts fully
are in line with EC legislation.

Medium term

Transpose 80% of European standards, transposition of the acquis on chemical and wood, by
end 2004.

Complete alignment with the acquis  for  sector  specific  legislation  for  areas  covered  by  Old
Approach Directives.

Develop administrative capacity on foodstuffs.

In non-harmonised areas, integrate the principle of mutual recognition into relevant Bulgarian
legislation on goods and eliminate provisions in breach of Articles 28 -30 of the EC Treaty.

Strengthen  administrative  capacity  in  the  field  of  standardisation  and  develop  conformity
assessment bodies and laboratories.

By accession

8

Ensure all European harmonised standards are transposed into Bulgarian standards.

Chapter 2: Free movement of persons

Bulgaria should focus further efforts in particular on ensuring that the curricula and training
of health professionals covered by the sectoral Directives are in line with the acquis. It will
also need to prepare, in  good time,  to meet  the  financial  and  administrative obligations  that
result  from  the  application  of  the  rules  on  co-ordination  of  social  security.  Negotiations  on
this  chapter  are  provisionally  closed.  Attention  needs  to  be  given  to  ensuring  that
commitments made in that process are respected. Key steps include:

Medium term

Complete legislative work on mutual recognition of qualifications and ensure administrative
structures are in place.

Revise the Bulgarian Constitution to ensure compliance with the acquis on the right to vote,
including special legislation on elections of the European Parliament

On co-ordination of social security systems, make preparations to ensure the required level of
budgetary  and  administrative  capacity  to  carry  out  the  required  financial  transfers  by
accession.

Chapter 3: Freedom to provide services

Bulgaria  should  focus  further  efforts  on  the  field  of  insurance  and  securities.  Bulgaria  has
made some  progress as  regards  discrimination in the areas  of  freedom  of  establishment  and
freedom  to  provide  services,  but  further  efforts  are  still  required  to  identify  and  implement
measures  that  will  ensure  full  non-discrimination.  Negotiations  on  this  chapter  are
provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected. Key steps include:

Short term

Fully align Data Protection Act with the acquis.

Further amendment to the Law on foreigners to remove incompatibilities with the acquis.

Medium term

Full compliance with the insurance acquis and capital adequacy acquis by end 2005.

Align legislation with the securities acquis.

Ensure administrative capacity is in place to implement and enforce Data Protection Act.

By accession

Identify and eliminate legal provisions and administrative practices incompatible with the EC
Treaty provisions on right of establishment and freedom to provide services.

For pension funds, strengthen capacity of the supervising authority and corporate governance
of pension funds.

Chapter 4: Free movement of capital

Bulgaria should focus further efforts on completing alignment and eliminating all remaining
restrictions,  completing  the  administrative  structures  necessary  to  properly  implement  the
acquis in this area, and reinforcing administrative capacity, paying particular attention to the
bodies  involved  in  the  fight  against  money  laundering.  Negotiations  on  this  chapter  are

9

provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected. Key steps include:

Short term

Finalise alignment on capital movements, except where transition periods have been granted.

Medium term

Complete alignment of legislation on payment systems

Complete alignment of legislation on money laundering. Reinforce administrative capacity of
Bureau of Financial Intelligence. Develop programmes in financial institutions against money
laundering.

Chapter 5: Company law

Bulgaria should focus further efforts on full alignment with the acquis, intensifying measures
to  combat  piracy  and  counterfeiting  in  particular  through  strengthening  border  controls  and
improving  co-ordination  between  the  customs,  police  and  judiciary  on  enforcement  of
intellectual  and  industrial  property  rights.  Negotiations  on  this  chapter  are  provisionally
closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that  process  are
respected. Key steps include:

Medium term

Complete  alignment  on  company  law  acquis,  especially  on  acquisitions,  mergers  and
divisions of companies. Complete alignment on accounting.

Improve  enforcement  of  intellectual  and  industrial  property  rights,  (in  particular  border
controls and training of law enforcement bodies and the judiciary).

Chapter 6: Competition policy

Bulgaria should focus further efforts in particular on improving the enforcement of State Aid
rules  and  developing  administrative  capacity  in  order  to  develop  a  credible  State  Aid
enforcement record. Negotiations on this chapter are underway. Attention needs to be given to
ensuring commitments made in that process are respected. Key steps include:

Short term

Complete the legislative framework in relation to substantive implementing rules for state aid.
Upgrade  expertise  and  improve  the  quality  of  state  aid  decisions,  as  well  as  state  aid
transparency.

Improve state aid enforcement record. In particular, assess existing schemes in Bulgaria under
which  State  Aid  is  being  granted  to  bring  them  into  line  with  the  acquis  and  ensure  that
through  the  ex-ante  control  of  all  new  aid  measures,  full  compatibility  with  the  acquis  is
assured.

Complete the legal antitrust framework, pursue training efforts and further develop record of
effective implementation and enforcement of anti-trust rules.

Prepare an overall restructuring plan, along with individual plans, for the steel sector.

Medium term

Increase awareness of the rules, in particular among aid grantors, the business community and
the judiciary.

10

Chapter 7: Agriculture

Bulgaria  needs  to  focus  further  efforts  on  enforcement  of  legislation,  in  particular  in  the
veterinary sector  and ensure appropriate controls. Particular attention  should also be paid to
developing  the  administrative  capacity  necessary  to  administer  and  enforce  the  acquis,
including preparations for the setting up of the Paying Agency, Integrated Administration and
Control  System  and  the  Farm  Accountancy  Data  Network  (FADN).  Bulgaria  also  needs  to
ensure the functioning of markets.  In the dairy sector in particular, further efforts  should  be
made  to  ensure  organisation  of  production  and  processing.  With  regard  to  BSE,  Bulgaria
needs  to  take  action  to  guarantee  full  conformity  with  EC  requirements  in  the  field  of
epidemiological  surveillance,  animal  waste  treatment  and  rendering  activities.  Negotiations
on this chapter are underway. Attention needs to be given to ensuring commitments made in
that process are respected. Key steps include:

Short term

Provide detailed plans on development of Common Market Organisations.

Introduce EC legal requirements on animal movements.

Medium term

Establish a Paying Agency fully compliant with the acquis.

Prepare for establishment of an Integrated Administration and Control System.

Develop the Farm Accountancy Data Network (FADN).

Implement programme to upgrade agri-food establishments to EC standards.

Develop inter-branch organisations.

Develop Common Market Organisations.

Implement quality policy.

Complete the vineyard register.

Complete the national cadastre and property register. Continue work on consolidation of land.

Concerning animal welfare, ensure further training for official vets and control of inspectors.
Inform producers’ associations of the need to apply animal welfare rules and on enforcement
methods.

Extend EUROVET system to cover the whole country and complete loading of data to enable
improved  surveillance  and  allow  unrestricted  trade  of  livestock  and  animal  products  to
recommence with the EC. Complete identification of ruminants by double plastic ear-tagging.

Continue work to upgrade slaughterhouses and agri food establishments.

Improve  the  situation  regarding  animal  waste  in  particular  in  rendering  plants.  Ensure  feed
ban  on  processed  animal  proteins  is  in  line  with  EC  requirements  to  avoid  cross
contamination of ruminant feed with animal proteins for ruminants and cross feeding.

Complete upgrading of the 8 long-term Veterinary Border Inspection Posts

Improve  investigation  of  BSE  epidemiology  and  use  of  approved  diagnostic  methods.
Remove discrepancies in the field of TSE controls compared to the EC system.

Ensure the National Service for Plant Protection has adequate resources to implement acquis
in the phytosanitary sector.

On food safety, implement and enforce legislation.

11

On  control  of  animal  food  stuffs,  ensure  that  sufficient  resources  are  allocated  to  the  chief
directorate for food stuff control in order achieve full implementation of the acquis.

Chapter 8: Fisheries

Bulgaria should focus further efforts on developing an adequate marketing infrastructure, and
on measures to ensure full compliance with EC hygiene and health requirements and to ensure
sufficient financing. Negotiations on this chapter are provisionally closed. Attention needs to
be given to ensuring commitments made in that process are respected. Key steps include:

Medium term

On  market  policy,  adopt  implementing  legislation  and  create  market  and  wholesale
infrastructure.

Finalise the Fishing Vessel Register.

Develop  administrative  capacity  to  implement  fisheries  market  policy,  market  infrastructure
and market standards ready.

Complete alignment with acquis including adoption of necessary secondary legislation.

Implement  a  control  system  capable  of  operating  the  acquis.  Ensure  National  Agency  for
Fisheries and Aquaculture has adequate administrative capacity and equipment.

Take further steps to bring veterinary cover up to appropriate level.

By accession

Ensure  State  Fund  for  Agriculture  has  necessary  capacity  to  perform  such  functions  in
compliance with EC structural action requirements.

Chapter 9: Transport policy

Bulgaria  should  focus  further  efforts  on  investment,  on  the  implementation  of  the
social/technical  acquis  in  the  road  sector,  on  the  further  liberalisation  of  rail  and  road
transport  and  on  the  transposition  and  implementation  of  the  acquis  in  the  aviation  and
maritime  sector.  Particular  attention  will  need  to  be  paid  to  improvement  of  the  maritime
safety  record,  and  to  further  strengthening  the  maritime  safety  authorities  and  guaranteeing
their independence. Further efforts will be needed on the reinforcement and strengthening of
the  newly-established  administrative  structures  in  order  to  ensure  adequate  administrative
capacity  for  enforcement  of  the  acquis  and  implementation  of  the  investment  plans.  This
chapter is still under negotiation. Attention needs  to be  given to  ensuring that commitments
made in that process are respected. Key steps include:

Short-term

Ensure necessary administrative capacity to prepare for the significant investments needed in
rail and road infrastructure.

Improve  maritime  safety,  in  particular  improve  the  performance  of  maritime  safety
administrative institutions, firstly as a Flag State, and then as a Port State. Further align with
EU maritime acquis in areas of safety through the Merchant Shipping Code and implementing
legislation. Strengthen Bulgarian Maritime Administration.

Medium-term

Align  vehicle  taxes  and  road  charges  with  acquis.  Ensure  administrative  capacity  in  road
sector. Take steps to prepare national road transport operators and vehicle fleet to meet acquis
requirements.

12

On air transport, complete legislative alignment with the acquis and continue with the gradual
implementation of the Joint Aviation Requirements and Third Package Regulations.

Strengthen the railway administration, ensure independence of railway managers, implement
a  rail  infrastructure  charging  scheme  and  implement  business  plans  focusing  on  financial
stabilisation of the railways.

Chapter 10: Taxation

Bulgaria  should  focus  further  efforts  on  completing  alignment  –  except  where  transitional
arrangements have been agreed - with the acquis in the areas of direct and indirect taxation,
including  intra-Community  transactions,  and  strengthening  its  administrative  capacity,  in
particular  through  pursuit  of  measures  to  modernise  and  reinforce  the  tax  administration.
Negotiations on this chapter are provisionally closed. Attention needs to be given to ensuring
commitments made in that process are respected. Key steps include:

Short term

Develop  an  updated  business  strategy  for  the  tax  administration  and  approve  other  linked
strategies, such as audit strategies and the creation of a unified National Revenue Agency.

Continue alignment of tax legislation in VAT and excise duties.

Medium term

Strengthen the tax administration.

Complete  alignment  of  tax  legislation,  except  where  transitional  arrangements  were  agreed,
and transpose all provisions of VAT transitional regime one year ahead of accession.

Start  to  take  steps  to  ensure  the  computerised  tax  information  system  is  fully  operational,
including  links  to  the  customs  information  system  and  interconnectivity  with  EC  systems
ahead of accession.

Ensure compliance with Code of Conduct for Business Taxation.

Chapter 11: Economic and Monetary Union

Bulgaria  should  focus  further  efforts  on  completing  alignment  of  its  legislation  with  the
acquis  in  this  area.  Negotiations  on  this  chapter  have  been  provisionally  closed.  Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

Medium term

Align legislation with the provisions of the acquis regarding central bank independence, the
prohibition  of  privileged  access  of  public  sector  authorities  to  financial  institutions,  and  the
prohibition of direct financing of the public sector.

Fully harmonise government finance statistics with ESA 95 requirements.

Chapter 12: Statistics

Bulgaria  should  focus  further  efforts  on  strengthening  administrative  capacity  and  on
upgrading  methodology  and  improving  the  quality  and  completeness  of  data  in  general.
Negotiations on this chapter are provisionally closed. Attention needs to be given to ensuring
commitments made in that process are respected. Key steps include:

Short term

Carry out agriculture census as planned in 2003.

13

Medium term

Strengthen  administrative  capacity,  through  particular  attention  to  further  staff  development
in  the  statistics  administration  and  information  technology  capacity,  notably  in  regional
offices.

Further improve regional statistics, the quality and coverage of national accounts, short-term
statistics and the quality and coverage of the business register.

Establish a farm register based on the data from the census.

Carry out preparatory work for the introduction of Intrastat.

Chapter 13: Social policy and employment

Bulgaria should focus further efforts on continuing transposition, particularly in the areas of
anti-discrimination, equal opportunities, labour law and occupational safety and health where
considerable work remains with regard to transposition of the acquis. Furthermore, Bulgaria’s
efforts need to focus on effective implementation of the acquis in these areas. Social dialogue
in line with EC practice needs to  be fostered. Negotiations on  this chapter  are provisionally
closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that  process  are
respected. Key steps include:

Short term

Undertake an assessment of financial impact of implementing health and safety Directives.

Transpose acquis on combating discrimination.

Transpose acquis in the area of equal opportunities for women and men.

Implement  the  priorities  and  commitments  in  the  Joint  Assessment  of  Employment  Policy
Priorities.

Transpose and implement the acquis on tobacco control.

Medium term

Complete  transposition  of  acquis  on  health  and  safety  at  work  and  labour  law.  Improve
implementation and enforcement capacity, in particular of the Labour Inspectorates.

Ensure  appropriate  capacity  for  management  of  European  Social  Fund  type  projects  in
preparation for Structural Funds.

Set up a system for surveillance and control of communicable diseases in line with the acquis.

Ensure the development of a health information system which meets Community standards.

Develop a national integrated strategy on promoting social inclusion.

Strengthen  the  administrative  capacity  of  the  social  partners  with  particular  regard  to  new
policy areas including employment and social inclusion.

Promote autonomous social dialogue, especially at the enterprise and sectoral level, in order
to improve its coverage.

Chapter 14: Energy

Bulgaria should now focus its further efforts on further implementing and refining its overall
energy  policy,  as  a  first  step  to  full  and  timely  implementation  of  legislation,  in  particular
with  regard  to  the  internal  energy  market.  Bulgaria  should  set  clear  timetables  for
restructuring the energy sector, including  the  alleviation  of  related social  consequences, and
prepare  for  the  closure  and  decommissioning  of  certain  units  of  Kozloduy  Nuclear  Power

14

to 

improve  energy  efficiency,  and  strengthening  of 

Plant.  Concrete  measures 
the
administrative capacity of the newly-established bodies, in particular the energy regulator, the
body  responsible  for  managing  oil  stocks  and  the  nuclear  safety  authority,  are  needed.
Bulgaria also needs to make arrangements to ensure the progressive building up of oil stocks
as required by the acquis. Negotiations on this chapter are underway. Attention will need to
be given to ensuring commitments made in that process are respected. Key steps include:

Short term

Adopt a framework law for alignment with the acquis on oil stocks.

Ensure  all  recommendations  contained  in  the  Council  Report  on  Nuclear  Safety  in  the
Context  of  Enlargement  of  June  2001,  and  in  its  subsequent  Peer  Review  Status  Report  of
June 2002, are implemented with due regard to the priorities therein, and in accordance with
time schedules indicated by Bulgaria.

Close down definitely Units 1 and 2 of Kozloduy Nuclear Power Plant before the year 2003.

Further  reinforce  administrative  capacity  and 
independence, of the State Energy Regulatory Commission.

the 

independence, 

including  financial

Strengthen capacity and independence of the Nuclear Regulatory Authority.

Adopt  new  framework  legislation  for  stepping  up  liberalisation  of  the  energy  sector,  and
opening energy markets and legislative alignment with the gas and electricity markets.

Promote further use of renewable energies; align with energy efficiency acquis and develop a
pro-active policy to reduce the energy intensity of the Bulgarian economy through promoting
energy efficiency at all stages of the energy cycle.

Medium term

Implement Action Plan for restructuring of the solid fuel sector.

Increase  gradually  oil  stocks  according  to  schedule  and  set  up  the  necessary  administrative
capacity to manage these.

Meet closure commitments on Units 3 and 4 of the Kozloduy nuclear power plant.

Ensure full alignment with electricity and gas Directives and continue the gradual opening of
the electricity and gas markets.

Ensure compliance with Euratom requirements and procedures.

Pursue  implementation  of  an  energy  efficiency  policy  which  aims  reducing  the  energy
intensity of the Bulgarian economy, including promoting the use of renewable energies.

Chapter 15: Industrial policy

Bulgaria  should  focus  further  efforts  on  the  speedy  completion  of  privatisation,  the
restructuring process of some remaining important industrial sectors, such as steel, further co-
ordinating its currently rather fragmented administrative structures and further enhancing the
business  environment  and  competitiveness  in  the  enterprise  sector  so  as  to  achieve  full
integration  into  the  Single  Market.  Domestic  and  inward  investment  should  be  stimulated.
Great care will have to be taken that the policy of restructuring is implemented in a manner
which conforms to the competition and State Aid acquis so as to create efficient competitive
firms.  Negotiations  on  this  chapter  are  provisionally  closed.  Attention  needs  to  be  given  to
ensuring commitments made in that process are respected.

15

Chapter 16: Small and medium-sized enterprises

taxation  areas, 

Bulgaria should focus further efforts on resolving the remaining uncertainties, notably in the
legislative  and 
for  promoting
entrepreneurship  to  make  them  fully  operational,  and  ensuring  appropriate  co-ordination
between  the  various  bodies  concerned,  including  at  local  level,  on  implementation  and
enforcement  of  legislation.  The  European  Charter  for  Small  Enterprises  should  be
implemented.  Negotiations  on  this  chapter  are  provisionally  closed.  Attention  needs  to  be
given to ensuring commitments made in that process are respected.

reinforcing  delivery  mechanisms 

Chapter 17: Science and research

Bulgaria  should  focus  further  efforts  on  reinforcing  research-related  administrative  capacity
and  infrastructure,  in  order  to  increase  the  benefits  from  association  with  the  relevant
Community Framework Programmes, including the 6th Framework Programme (2002-2006),
for  which  it  has  already  signed  the  association  agreement.  Negotiations  on  this  chapter  are
provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected.

Chapter 18: Education and training

Bulgaria  should  focus  further  efforts  on  improvement  of  the  financial  management  of  its
participation  in  the  Community  programmes,  better  co-ordination  between  all  the  bodies
involved,  effective  implementation  of  the  Directive  concerning  education  of  children  of
migrant  workers  and  on  a  comprehensive  reform  of  the  vocational  education  and  training
system to ensure that it is flexible and can adapt in line with the needs of the labour market.
Negotiations on this chapter are provisionally closed. Attention needs to be given to ensuring
commitments made in that process are respected.

Chapter 19: Telecommunications and information technologies

Bulgaria  should  focus  further  efforts  on  completing  transposition  of  the  acquis  and  on  its
effective  implementation  in  time  for  market  opening  on  January  2003.  Particular  attention
should  be  paid  to  the  definition  of  operators  with  SMP,  application  of  the  principle  of  cost
orientation,  publication  of  the  Reference  Interconnection  Offer  and  unbundled  access  to  the
local loop. Negotiations on this chapter are provisionally closed. Attention needs to be given
to ensuring commitments made in that process are respected. Key steps include:

Short term

Enhance  the  capacity  of  the  regulator.  Improve  its  financial  independence  and  reinforce
administrative capacity.

Strengthen  the  regulatory  framework  for  postal  services.  Adopt  further  implementing
legislation to achieve full compatibility with the acquis (including universal service provision
and quality of service).

Medium term

Accelerate work on network modernisation and price rebalancing.

Make necessary investments to meet spectrum monitoring needs across the country.

Chapter 20: Culture and audio-visual policy

Bulgaria should focus further efforts on the strengthening of the administrative capacity of the
national  regulatory  body  in  the  field  of  broadcasting.  Negotiations  on  this  chapter  are

16

provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected.

Chapter 21: Regional policy and co-ordination of structural instruments

Bulgaria should focus further efforts on strengthening the capacity for future implementation
of structural funds assistance in key ministries, including appropriate control, monitoring and
evaluation mechanisms. Bulgaria needs to prepare a coherent development plan as required by
the  Structural  Funds  regulations  and  integrate  it  into  the  national  budgetary  and  policy-
making  framework.  Negotiations  on  this  chapter  are  underway.  Attention  will  need  to  be
given to ensuring commitments made in that process are respected. Key steps include:

Medium term

Implement the Bulgarian National Strategy for preparation on Structural and Cohesion Funds.

Adopt the framework legislation needed to implement the acquis under this chapter. The legal
framework for the future participation in Structural Funds should be established and adopted
as a matter of priority, including provisions for management, monitoring, evaluation, financial
and  budgetary  management  and  control  in  relation  to  the  practical  implementation  of  the
Structural Funds.

Create  necessary  institutional  structures  for  the  implementation  of  the  Structural  Funds  and
the  Cohesion  Fund.  The  administrative  structures  and  procedures,  the  distribution  of
responsibilities  between  the  different  bodies  involved  at  national  and  regional  level  and  in
particular inter-ministerial co-ordination, will require particular attention.

Bring administrative capacity of the units within the ministries designated or to be designated
as  future  managing  or  paying  authorities  up  to  the  level  required  for  efficient  and  correct
implementation of Structural Funds assistance.

Improve the quality of the National Development Plan. Bulgaria needs to put serious efforts
in  strengthening  its  strategic  capability  and  operational  capacity  to  improve  and  implement
the  National  Development  Plan,  in  order  to  transform  it  into  a  comprehensive  national
planning tool.

Develop capacity to discuss and clarify development priorities at national and regional level
and  to  identify  proper  projects.  Inter-ministerial  co-operation  and  partnership  needs  to  be
made  more  effective  and  comprehensive,  both  at  national  and  regional  level.  Genuine
partnership structures at regional level, including the regional and local authorities and other
competent public authorities, the economic and social partners and any other relevant bodies
must  be  established,  and  a  strong  input  of  the  regions  into  the  programming  process  taking
place at national level needs to be ensured.

Improve capacity at the level of the technical preparation of projects to be co-financed by the
Structural and Cohesion Funds

Prepare  to  ensure  compliance  with  acquis  requirements  for  monitoring  and  evaluation,  in
particular  as  regards  the  ex-ante  evaluation  of  the  development  plan  and  the  collection  and
processing  of  the  relevant  statistical  information  and  indicators.  The  timely  availability  and
functioning of an effective monitoring and evaluation system will be of crucial importance for
the effective and efficient implementation of the Structural Funds programmes.

Establish  appropriate  systems  and  procedures  for  financial  management  and  control,  in
particular in relation to the structure of the managing and paying authorities, in order to fulfil

17

the specific requirements of the Structural Funds regulations. Specific attention is to be given
to an adequate separation of functions within the whole implementation structure.

Improve  regional  statistics  to  the  level  required  for  regional  policy  planning  and
programming, in particular ex-ante evaluation.

Chapter 22: Environment

Bulgaria should now focus its efforts in particular on environmental impact assessment, waste
management,  nature  protection,  industrial  pollution  and  risk  management,  chemicals  and
genetically modified organisms, and nuclear safety and radiation protection. Implementation
and  enforcement  of  the  acquis  in  this  area  continue  to  constitute  a  major  challenge  for  the
future,  in  particular  because  of  the  need  to  increase  administrative  capacity,  especially  at
regional and local level. In addition, the fact that environmental considerations are not often
thoroughly  considered  in  the  context  of  other  economic  issues  is  a  cause  for  concern.
Relevant  investments  in  the  environment  sector  have  produced  some  positive  results,  but
much  still  remains  to  be  done.  Bulgaria  needs  to  focus  on  investments,  and  on  reinforcing
administrative capacity and implementation within all environment sectors, while continuing
progress with transposition. Negotiations on this chapter are underway. Attention will need to
be given to ensuring commitments made in that process are respected. Key steps include:

Short term

Update the overall assessment of the situation in the environment sector in order to identify
gaps to be filled in.

Develop implementation plans together with financing strategies, to outline the steps needed
to ensure full implementation in  the  medium  and  longer  term.  These  plans  should  take  into
account available resources and institutional strengthening, and further elaborate mechanisms
to monitor effective implementation.

Focus  on  planning,  identification  and  availability  of  financial  resources  in  view  of  the
significant investments needed to ensure the implementation of the acquis.

Improve  administrative  capacity  to  implement  the  acquis,  in  particular  through  further
strengthening of regional inspectorates and municipalities. Reinforce staffing of the Ministry
and other public bodies. Ensure adequate training and staff development plans.

Adopt secondary legislation to ensure full transposition of environmental impact assessment
and access to information Directives.

Ensure  that  the  environmental  acquis,  particularly  the  Environmental  Impact  Assessment
Directive, is properly implemented in preparing large-scale infrastructure projects.

Continue transposition of legislation in all remaining areas, in particular waste management,
nature  protection,  industrial  pollution  and  risk  management,  chemicals  and  genetically
modified organisms, and nuclear safety and radiation protection. Ensure full consultation with
all relevant stakeholders (other ministries, economic operators, NGOs)

integrating  environmental  protection  requirements 

Continue 
the  definition  and
implementation  of  all  other  sectoral  policies  so  as  to  promote  sustainable  development,
including  in  the  energy  sector.  Improve  inter-ministerial  co-ordination  on  environmental
issues.

into 

18

Medium term

Close  attention  needs  to  be  paid  to  progressive  implementation  of  the  acquis  in  all  sectors,
particularly  as  regards  waste  management,  water  quality,  industrial  pollution  and  risk
management,  chemicals  and  genetically  modified  organisms  and  nature  protection.  Pursue
transposition further.

Enhance the administrative structures necessary for the  full implementation  of  the acquis in
all sectors, particularly as regards waste management, water quality, industrial pollution and
risk management, chemicals and genetically modified organisms and nature protection.

By accession

Ensure  full  transposition  of  the  environment  acquis  and  implementation  in  line  with
negotiations commitments with the EU.

Chapter 23: Consumers and health protection

Bulgaria should focus further efforts on continuing alignment of legislation in particular in the
field of sales of consumer goods and associated guarantees, injunctions for the protection of
consumer  interests,  timeshare,  consumer  credit,  distance  contracts,  comparative  advertising,
general  product  safety  and  product  liability  and  ensuring  effective  implementation  of
legislation, in particular through an efficient market surveillance mechanism. Bulgaria should
further integrate consumer concerns into other policy areas. Negotiations on this chapter are
provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected. Key steps include:

Medium term

Complete the legislative framework in the area of consumer protection, particularly on sales
of  consumer  goods  and  associated  guarantees,  injunctions  for  the  protection  of  consumer
interests,  timeshare,  consumer  credit,  distance  contracts,  comparative  advertising,  general
product safety and product liability.

Reinforce  capacity  of  administration  responsible  for  implementing  and  enforcing  consumer
protection legislation at all levels.

Ensure an effective level of protection of the economic and legal rights of consumers.

Further develop  market  surveillance  activities.  Make  further  progress  on  effective  access  of
consumers to justice and out-of-court dispute settlement.

Further  promote  the  capacity  of  consumer  organisations  to  play  an  active  role  in  consumer
protection.

Chapter 24: Co-operation in the field of justice and home affairs

Bulgaria  should  focus  further  efforts  on  substantially  strengthening  the  capacity  of  its
judiciary  and  law  enforcement  agencies  and  improving  co-operation  between  the  different
agencies.  Particular  attention  should  be  given  to  the  bodies  in  charge  of  the  fight  against
fraud,  corruption,  money  laundering,  Schengen,  co-ordination  of  police  activities  and  anti-
drugs  policy.  Work  on  legislative  alignment  (visa  policy,  migration,  money  laundering)
should continue. Negotiations on this chapter are underway. Attention will need to be given to
ensuring commitments made in that process are respected. Key steps include:

Short term

19

Adopt and implement the new Border Security Act and the secondary legislation as well as an
integrated  border  management  strategy  covering  all  borders  of  Bulgaria,  with  particular
attention  for  the  gradual  modernisation  of  the  border  infrastructure  and  equipment,  the
necessary  training  for  professional  border  guards  and  customs  officers  and  for  the  co-
ordination and practical co-operation between authorities.

Update on a regular basis the Schengen Action Plan.

Adopt new legislation on migration. Develop a comprehensive migration policy including on
the establishment of a national body for its implementation.

Continue to implement the National Anti-Corruption Strategy.

Fully  align  with  the  EU  acquis  in  the  field  of  criminal  law  protection  of  the  Communities'
financial interests.

Implement the strategy on the fight against crime, with special attention for various forms of
transborder and organised crime such as trafficking in drugs, human beings, etc…, and for the
co-ordination and practical co-operation between law enforcement bodies.

Adopt an action plan to implement the National Drugs Strategy. Strengthen the administrative
capacity of the National Drugs Council.

Improve the capacity of the Bureau of Financial Intelligence to enforce the existing legislation
and  improve  its  co-operation  with  other  law  enforcement  agencies  active  in  the  area  of
combating money laundering.

Medium term

Fully align visa policy with EU lists of countries whose nationals are under visa obligations
and  of  those  whose  nationals  are  exempt  from  that  requirement.  Continue  equipping  all
diplomatic and consular missions with devices to detect forged or falsified documents.

Continue major efforts to establish a Schengen-type border security system based on the full
implementation of the Schengen Action Plan.

Increase  the  capacity  of  the  reception  centres  for  refugees  and  asylum  seekers,  improve  the
conditions  for  integration  of  refugees,  accelerate  screening  procedures  and  strengthen  the
administrative capacity of the State Agency for Refugees.

Ensure full compliance with the acquis and other international standards on the fight against
the misuse of the financial system and the financing of terrorism.

Take further measures to ensure implementation of the Community instruments in the area of
judicial co-operation in civil matters, notably as regards mutual recognition and enforcement
of judicial decisions.

Make  legislative  amendments  necessary  in  order  to  accede  to  and  implement  the  EU
Convention on Mutual Assistance in Criminal Matters.

Take  steps  to  remedy  the  complexity  of  the  penal  procedure  by  making  the  investigation
phase shorter, more efficient and in line with EU practices.

Take the necessary steps to prepare for full implementation upon accession of the instrument
applying the principle of mutual recognition and in particular the Framework Decision on the
European  arrest  warrant  and  the  Framework  Decision  on  the  execution  of  orders  freezing
property or evidence.

20

Chapter 25: Customs union

Bulgaria  should  focus  further  efforts  on  continued  implementation  of  the  business  strategy,
which  is  of  great  importance  with  a  view  to  ensuring  the  necessary  administrative  and
operational capacity to implement the acquis. Bulgaria needs in particular to focus on further
alignment  with  the  Community  customs  procedures,,  strengthening  information  technology
and  human  resource  policy,  as  well  as  on  completing  major  projects  on  revenue  collection,
transit  control  and  risk  analysis.  Moreover,  in  order  to  complete  customs  reform,  Bulgaria
needs  to  improve  human  resource  management  in  customs  and  ensure  it  has  a  stable  and
professional body of staff and management. The percentage of staff with civil servant status
should  increase  to  align  the  Customs  Agency  with  best  practice  in  EU  Member  States.
Bulgaria  also  needs  to  prepare  for  the  application  of  measures  and  provisions  that  will  be
introduced only at the time of accession. Negotiations on this chapter are provisionally closed.
Attention needs to be given to ensuring commitments made in that process are respected. Key
steps include:

Short term

Enhance post clearance control.

Medium term

Strengthen  operational  and  administrative  capacity  of  customs  administration  and  ensure  a
satisfactory level of IT capacity.

Further  strengthening  of  co-operation  with  customs  authorities  of  neighbouring  countries  is
required.

Chapter 26: External relations

Bulgaria should focus further efforts on finishing the process of legislative alignment, and in
particular  on  ensuring  that  the  capacity  exists  to  fully  implement  and  enforce  the  acquis  in
this  field  upon  accession,  and  on  taking  decisive  steps,  as  a  matter  of  urgency,  towards  the
renegotiation or abrogation of its bilateral investment treaties in full conformity with its EU
membership  obligations.  Negotiations  on  this  chapter  are  provisionally  closed.  Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

Medium term

Bring bilateral investment treaties into conformity with the Treaty obligations.

Ensure full alignment with the acquis where medium and long-term export credits are granted

Develop progressively a development co-operation policy along EC lines.

Chapter 27: Common foreign and security policy

Bulgaria should focus its further efforts on ensuring that its foreign policy orientation remains
in  line  with  the  Union's  developing  foreign  and  security  policy,  that  draft  legislation  is
adopted and implemented and that the development of the necessary administrative structures
is  finalised.  In  particular,  Bulgaria  should  ensure  that  its  national  policies  and  practice
conform  to  the  EU's  common  positions,  should  defend  these  positions  in  international  fora
and  should  ensure  that  all  sanctions  and  restrictive  measures  can  be  duly  implemented.
Negotiations on this chapter are provisionally closed. Attention needs to be given to ensuring
commitments made in that process are respected.

21

Chapter 28: Financial control

Bulgaria  should  focus  its  further  efforts  in  particular  on  the  continuing  amendment  of  the
legal  framework  and  completion  and  strengthening  of  the  required  institutional  structures,
including in the area of the protection of the EC financial interests where ongoing substantial
efforts are still required. Negotiations on this chapter are provisionally closed. Attention needs
to be given to ensuring commitments made in that process are respected. Key steps include:

Short term

In the field of external audit, finalise audit manual.

As regards the protection of the Communities' financial interests, take a definite decision on
the designation  of  an operationally  independent  anti-fraud co-ordinating  service  or  structure
responsible  for  the  co-ordination  of  all  legislative,  administrative  and  operational  activities
related  to  the  protection  of  the  EC  financial  interests.  Start  co-operating  effectively  with
OLAF through this structure or service.

Continue to strengthen the capacity of the National Fund, the Central Finance and Contracting
Unit  (CFCU)  and  other  implementing  agencies  dealing  with  pre-accession  funds  in
preparation for the extended decentralisation of Phare and ISPA implementation.

Ensure  the  professional  criteria  for  and  functional  independence  of  the  Public  Internal
Financial Control (PIFC) Agency leadership in compliance with commitments.

Medium term

Fully  implement  Public  Internal  Financial  Control  Law  and  make  further  amendments  to
implement  the  Strategy  Paper  and  the  Operational  Plan  for  the  PIFC  Agency.  Strengthen
further the administrative capacity of the PIFC institutions.

Upgrade  external  audit  functions,  especially  in  terms  of  systems-based  and  performance
audits, and enhancing training efforts.

Further  develop  legislative  framework  and  administrative  capacity  for  the  protection  of  the
Communities' financial interests against fraud and irregularities.

Chapter 29: Financial and budgetary provisions

Bulgaria should focus further efforts on the legal framework for budgetary management and
for the transparency and efficiency of financial flows to and from the EC budget, which is in
the  process  of  being  created.  Bulgaria’s  efforts  need  to  focus  in  particular  on  improving
administrative structures and the administrative preparations for the application of the acquis
on own resources. Negotiations on this chapter are underway. Attention will need to be given
to ensuring commitments made in that process are respected. Key steps include:

Short term

Further develop the Treasury Single Account, the Financial Management Information System
and  the  System  for  Electronic  Budgetary  Payments,  and  continued  strengthening  of  the
drafting  procedure  for  the  annual  state  budget.  Further  develop  an  adequately  staffed  and
equipped co-ordinating body in the area of own resources.

Medium term

Continue  efforts  to  bring  the  budgetary  principles  and  rules  into  line  with  those  standards
generally applicable in the Community.

Improve  compliance  of  national  account  statistics  with  ESA  95  standard  and  enhance  their
exhaustiveness.

22

Build  up  technical  and  administrative  capacity  as  regards  operational  management  of  own
resources and to collect and transfer future EC all own resources to the Community budget in
a timely manner.

Further strengthen efforts to set up effective instruments to combat fraud relating to VAT and
customs duties.

23

ROADMAP FOR ROMANIA

1. 

INTRODUCTION

The analysis in the 2002 Regular Report on Romania’s progress towards meeting the criteria
for  membership  is  that  Romania  has  made  good  further  progress  towards  meeting  the
Copenhagen criteria:

– 

– 

– 

Romania continues to fulfil the political criteria. Accordingly, while  efforts need to
be sustained in a number of areas, the roadmap does not address issues related to this
criterion.

Although  Romania  has  continued  to  make  progress  towards  being  a  functioning
market  economy,  it  does  not  yet  meet  the  Copenhagen  economic  criteria.  For  this
reason, the roadmap focuses on the remaining steps Romania needs to take in order
to meet this criterion.

Romania  does  not  yet  fully  meet  the  acquis  criteria.  In  order  to  complete  its
preparations  successfully,  Romania  needs  to  continue  its  efforts  to  transpose,
implement and enforce the acquis.

Romania needs to continue public administration and judiciary reform in order to achieve the
necessary  level  for  administrative  and  judicial  capacity.  The  roadmap  aims  to  support
Romania’s  efforts  to  meet  the  remaining  criteria  for  membership  by  identifying  the  tasks
ahead.  There  is  particular  emphasis  on  administrative  and  judicial  capacity  necessary  to
implement the acquis and on economic reform.

2. 

ADMINISTRATIVE AND JUDICIAL CAPACITY

2.1. 

Administrative capacity

The  2002  Regular  Report  on  Romania  concludes  that  while  “Romania  has  made  steady
progress with the adoption of the acquis … in many areas, there has been an increasing gap
between progress in legal transposition and the limited ability of the Romanian administration
to  implement  and  enforce  the  newly  adopted  legislation.  The  overall  capacity  of  the  public
administration to implement the acquis remains limited and represents a major constraint on
Romania’s accession preparations. These concerns extend beyond adoption of the acquis and
also apply to the management of EC financial assistance.”

At  the  same  time,  the  2002  Regular  Report  recognises  that  important  developments  have
taken place with regard to launching a reform of the Romanian public administration. These
initiatives,  if  sustained  and  supported  by  a  clear  strategy,  could  contribute  significantly  to
improving the quality of Romania’s public administration.

The 2002 Regular Report and the 2001 Accession Partnership identify several key areas that
should be considered as a priority for reform:

– 

develop the policy framework set by the 1999 Law on Civil Servants by introducing
and implementing necessary secondary legislation;

24

– 

– 

– 

– 

– 

– 

– 

ensuring  that  civil  service  legislation  is  actually  applied  in  practice  by  designing
implementation mechanisms;

devising mechanisms to ensure the political independence and accountability of civil
servants;

improving provisions for both initial and in-service training;

developing a career structure based on transparent promotion and assessment;

introducing elements of modern human resource management; and

strengthening  of  administrative  structures  in  order  to  ensure  that  Romania  has  the
capacity for fully effective use of EC funds.

Further develop its legislative framework and administrative capacity to  protect  the
Communities' financial interests against fraud and irregularities.

The 2002 Regular Report also noted that measures should be taken to improve the legislative
process and that in particular, limits should be placed on legislating through  ordinances  and
emergency ordinances.

Additional Phare support for public administration reform will be provided to assist with the
implementation of the specific reforms identified above.

2.2. 

Judicial capacity

While the 2002 Regular Report noted progress in some areas related to the functioning of the
judiciary it expressed several serious concerns and identified priority areas for reform:

– 

– 

– 

measures are needed to guarantee the effective independence of the judiciary;

the system of extraordinary appeals against final judicial decisions should be revised
in line with the European Convention of Human Rights and in order to re-enforce the
principle of legal certainty;

a  comprehensive  strategy  to  improve  the  functioning  of  the  judiciary  should  be
drawn up (key elements of the strategy should be practical measures to guarantee the
full  independence,  enhance  the  ethics,  training,  and  professionalism  of  judges,
prosecutors and legal professions and improve the inner organisation of Courts and
make  co-ordination  more  efficient  between  State  agencies  in  charge  of  Judicial
matters.

Once  a  comprehensive  reform  strategy,  including  an  action  plan,  has  been  developed  and
finalised, Phare projects will be developed to implement specific reforms.

3. 

ECONOMIC REFORM

The  2002  Regular  Report  concluded  that  Romania  has  continued  to  make  progress  towards
being a functioning market economy, for which the prospects have improved. Sustained and
full implementation of planned measures together with the completion of the reform agenda

25

should allow Romania to be able to cope with competitive pressure and market forces within
the Union in the medium term.

Some  significant  gains  on  macroeconomic  stabilisation  have  been  achieved  over  the  last
years. A more appropriate policy-mix is decreasing inflation, while growth has resumed and
the  external  position  remains  sustainable.  Considerable  progress  has  been  made  on  the
creation of the necessary market institutions. The ongoing overhaul of the banking sector, the
successive  improvements  in  the  supervisory  and  regulatory  framework  for  the  financial
markets  and  the  advances  in  privatisation  have  progressively  tightened  enterprises  financial
discipline.  Price  and  trade  liberalisation  coupled,  over  the  last  year,  with  a  significant
adjustment of energy tariffs and important reforms of the tax system have set the stage for a
more efficient allocation of resources. Restructuring is advancing in a number of sectors.

To  allow  the  authorities  to  build  upon  this  progress,  the  Regular  Report  identified  a  set  of
specific  priorities.  In  particular,  the  authorities  were  urged  to  establish  a  track  record  on
macroeconomic stabilisation grounded on further disinflation, by maintaining an appropriate
policy mix and underpinning it with the enforcement of company financial discipline. In this
respect,  commitments  to  restrict  the  total  wage  bill  in  the  public  sector  should  be  respected
and  the  recent  sharp  growth  in  money  supply  and  credit  calls  for  careful  monitoring  and  a
readiness to take prompt actions. Establishing company financial discipline requires improved
tax administration and compliance, a consistent and transparent implementation of the latest
measures  to  reduce  the  arrears  of  energy  users,  a  determined  and  transparent  use  of  the
recently approved legal provisions for accelerating privatisation, and a readiness to liquidate
loss-making enterprises. Completing privatisation in the banking sector, continuing the reform
of  public  expenditures  and  budgetary  procedures,  and  ensuring  the  implementation  of
improved  regulatory  and  legal  frameworks  would  also  support  the  establishment  of  a
functioning  market  economy  and  the  development  of  Romania’s  capacity  to  cope  with
competitive pressure and market forces within the Union.

As  benchmarks  for  achieving  these  improvements,  the  Commission  will,  in  particular,  look
for positive developments in the following areas:

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Rate of inflation;

Development of inter-enterprises arrears;

Wage bill in the public sector;

Bill collection rates in the energy sector and the adaptation of regulated prices in line
with cost developments;

Reform of tax regulations and of tax administration;

Reform of budgetary procedures and public expenditures;

Efficiency of bankruptcy procedures;

Development of financial intermediation and the non-banking financial sector;

Enforcement of property rights;

Number of transactions and prices of agricultural land;

26

– 

– 

– 

– 

Progress in public enterprise reform, including the completion of restructuring plans,
the privatisation of viable entities and the liquidation of unviable ones;

Completion of privatisation in the banking sector;

Volume  and  quality  of  public  investment,  including  infrastructure,  education
environment and health;

Reduction of direct and indirect state aid.

4. 

THE CHAPTERS OF THE ACQUIS

Chapter 1: Free movement of goods

Romania should focus further efforts on intensifying the process of alignment. Administrative
capacity  still  needs  reinforcement  and  in  some  areas  the  required  structures  still  need  to  be
completed. Negotiations on this chapter continue. Key benchmarks will include:

Short term

Ensure that the transposition of all New Approach Directives is completed and that the texts
are  fully  in  line  with  EC  legislation.  Ensure  that  the  Romanian  standardisation  system  is  in
line with the European standardisation system and that all European harmonised standards are
transposed into Romanian standards.

Conduct  a  full  screening  of  all  legislation  in  the  non-harmonised  area  to  check  conformity
with Articles 28-30 of the EC Treaty.

Prepare both the administration and the food operators to the principles underpinning the EC
food safety system.

Medium term

Complete alignment with the acquis for sector specific legislation  for  areas  covered  by  Old
Approach Directives.

Improve the overall administrative capacity to implement the acquis on industrial products.

Food safety: Develop institutional capacity of conformity assessment bodies and laboratories.
Re-structure the food control system. Abolish the pre-market approval system for foodstuffs.
Allocate  increased  resources  (both  in  terms  of  equipment  and  of  staff),  to  improve  control
services.

Reinforce administrative capacity as regards conformity assessment infrastructure.

By accession

Amend legislation in the non-harmonised area to ensure conformity with Articles 28-30 of the
EC Treaty.

Integrate a clause on mutual recognition into each piece of relevant Romanian legislation on
goods.

27

Adopt implementing legislation in the area of public procurement.

Chapter 2: Free Movement of Persons

Romania  should  focus  further  efforts  on  addressing  shortcomings  identified  in  the  area  of
mutual  recognition,  in  particular  with  respect  to  curricula  and  training.  Romania  is  in  the
process of establishing the required administrative structures and these efforts will need to be
maintained. It will also need to prepare, in good time, to meet the financial and administrative
obligations, which will result from application of the rules on co-ordination of social security.
Negotiations on this chapter continue. Key benchmarks will include:

Short term

Legislation  on  professional  mutual  recognition  (in  general)  and  pertaining  in  particular  to
nurses,  doctors,  dentists,  midwives  and  pharmacists  needs  further  revision  to  overcome
identified shortcomings.

Medium Term

Ensure  that  legislation  is  aligned  with  Community  rules,  in  particular  with  respect  to
nationality, residence and language.

The law on aliens’ status should be amended in compliance with the acquis.

Align with the acquis in the field of equal treatment and work permits.

Strengthen  public  employment  services  with  a  view  to  participate  in  the  EURES  network.
Emphasis should be put on language training for staff.

Develop administrative structures in the field of social security systems.

Chapter 3: Freedom to provide services

Romania  should  focus  further  efforts  on  completing  legislative  alignment,  strengthening
administrative  capacity,  and  establishing  a  track  record  of  efficient  supervision.  Further
improvements  in  the  institutional  framework  of  financial  supervision  are  still  needed,
particularly in the area of securities and insurance. The process of screening Romanian law in
the  area  of  non-financial  services  should  begin  as  soon  as  possible.  Negotiations  on  this
chapter have not yet been opened with Romania.

Medium Term

In the insurance sector, further restructuring and the completion of the legislative framework
will be required (in particular regarding motor vehicle insurance).

Make  adequate  human  resources  available  to  implement  new  legislation  in  the  area  of  the
securities market.

Fully  align  the  data  protection  act  with  the  acquis,  with  special  attention  paid  to
implementation of the act.

28

Chapter 4: Free Movement of Capital

Romania should focus further efforts on the alignment of legislation. The revision of the legal
framework  in  the  area  of  money  laundering  needs  to  be  continued.  Negotiations  on  this
chapter continue. Key benchmarks will include:

Short Term

Abolish  restrictions  on  inward  direct  investment  concerning  discriminatory  provisions  in
sector specific legislation.

Implement customer identification when opening accounts at credit institutions.

Adopt legislation governing the organisation and operation of the payments system.

Medium Term

Enforce the European Convention on Laundering, Search, Seizure and Confiscation.

Remove  all  constraints  on  the  development  of  free  movement  of  capital  in  a  competitive
market.

Chapter 5: Company Law

Romania  should  focus  further  efforts  on  reducing  the  level  of  piracy  and  counterfeiting.
Further transposition of the acquis is necessary as concerns Economic Interest Groupings, as
well as for provisions on the jurisdiction and enforcement of foreign judgements in civil and
commercial  matters.  Negotiations  on  this  chapter  have  been  provisionally  closed.  Attention
needs to be given to ensuring that commitments made in that process are respected. Key steps
include:

Medium Term

Further alignment should be pursued in order  to  transpose  the  Directive  on copyright  in  the
information society and the Directive on resale rights.

Improvements in staffing and budgets and improved statistical reporting are necessary for the
Copyright Office and the Office for Inventions and Trademarks.

To intercept counterfeit goods, further progress is needed with implementing border controls
and enhancing co-operation between the different law enforcement agencies.

Strengthen  the  inter-institutional  network  to  make  progress  in  the  fight  against  piracy  and
counterfeiting.

Chapter 6: Competition Policy

Romania should focus further efforts on continued institutional strengthening and on training
staff  in  both  the  Competition  Council  and  the  Competition  Office.  It  should  address  the
questions  of  the  alignment  of  incompatible  state-aid  schemes  and  the  enforcement  of
competition rules in respect of non-notified aid schemes and existing aid. Negotiations on this
chapter are ongoing. Key benchmarks will include:

Short Term

29

Improve the co-operation between the Competition Council and the Competition Office and
strengthen the responsibilities of these two authorities in relation to Romanian Ministries and
other relevant authorities.

Competition  legislation  should  take  precedence  over  any  anti-competitive  legislation.  In
particular  the  competition  authorities  need  to  be  given  the  right  to  oppose  legislation  under
which State aid is awarded.

In the  field of anti-trust, abolish the  individual notification  requirement and  focus  resources
on  cases  representing  the  most  serious  distortions  of  competition.  Pursue  a  more  pro-active
approach including own-initiative investigations and a deterrent sanctions policy.

Complete  the  legislative  framework  in  relation  to  substantive  implementing  rules  for  State
aid.  Upgrade  expertise  and  improve  the  quality  of  state  aid  decisions,  as  well  as  State  aid
transparency.

Improve  State  aid  enforcement  record.  Take  a  firmer  and  a  more  pro-active  approach  and
ensure the effective application and enforcement of State aid rules, including non-notified aid
and  the  alignment  of  existing  aid  and  legislation  under  which  authorities  at  various  levels
grant aid. In particular align incompatible fiscal aid schemes and convert existing benefits into
compatible aid.

Increase  transparency  as  for  State  aid  granted  in  the  steel  sector.  As  for  aid  granted  in  the
form of tax exemptions/reductions fix a cap on aid.

Raise  awareness  among  administrations  granting  state  aid  of  the  policy  and  legislative
provisions in this area.

Medium Term

Pursue training efforts, in particular with regard to the judiciary.

Raise awareness of the rules, in particular  among  aid  grantors,  the  business  community and
the judiciary.

Chapter 7: Agriculture

Romania should focus further efforts on reinforcing the administrative capacity to implement
and  enforce  the  acquis,  in  particular  in  the  veterinary  and  phytosanitary  fields,  and
accelerating  the  structural  reform  of  the  agricultural  and  agri-food  sectors.  Considerable
investments are required to complete cadastre reform and the registration of property titles in
the land book offices. Negotiations on this chapter have been opened with Romania but only
as regards phytosanitary and veterinary issues. Key benchmarks will include:

Medium Term

The new state support policy should be more targeted at the development of a market oriented
agricultural policy and should give more consideration to rural development.

Increase staff and other resources so as to be able to fully implement the recently transposed
agricultural acquis.

Regarding horizontal issues, further efforts are needed in areas such as land registration, inter-
branch  organisations,  quality  policy,  the  Farm  Accountancy  Data  Network  (FADN)  and  for

30

the  setting  up  of  Integrated  Administration  and  Control  System  (in  particular  the  land
identification parcel system).

Elaborate  enforcement  measures  for  the  new  wine  law  need  to  be  elaborated,  (in  particular
regarding the vineyard register).

The National Sanitary Veterinary Agency  requires additional human and  financial resources
to complement the legal adoption of the veterinary acquis.

Chapter 8 – Fisheries

Further efforts should focus on  implementing  the  recently  adopted  legislation  governing  the
functioning  of  the  main  administrative  structures.  Negotiations  on  this  chapter  have  been
provisionally closed. Attention needs to be given to ensuring that commitments made in that
process are respected. Key steps include:

Short term

Clarify administrative responsibilities between the Ministry of Agriculture, Food and Forestry
and the Ministry of Waters and Environmental Protection.

Medium term

Recruit additional staff for the Fisheries Department within the Ministry of Agriculture, Food
and Forestry (MAFF).

Strengthen  control  activities  by  putting  more  emphasis  on  training  fisheries  inspectors,
providing appropriate equipment, and increasing the number of inspectors for controlling sea
fisheries.

Transpose regulations concerning resources management and control.

Transpose  Community  regulations  on  structural  funds  management  and  set  up  a  Structural
Funds Office in the MAFF.

Transpose  Community  legislation  for  fish  market  organisation  and  establish  a  Payment
Agency.

Chapter 9: Transport policy

Romania  should  focus  further  efforts  on  developing  institutions  able  to  enforce  the  new
legislation, and securing the necessary funding to make the heavy investments required by the
acquis. Further efforts will also be needed to implement the fiscal and social/technical acquis
in the road sector, to transpose and implement the acquis in the aviation and maritime sectors,
to considerably improve the maritime safety record, to restructure the inland waterways fleet
to meet EC standards, and to strengthen the maritime safety authority while also guaranteeing
its independence. Negotiations on this chapter continue. Key benchmarks will include:

Short term

Ensure  that  the  roadside  inspection  of  vehicles  does  not  give  rise  to  any  de  facto
discrimination between Romanian and EC hauliers and/or vehicles.

31

Strengthen the maritime safety authority while also guaranteeing its independence.

By accession

Complete restructuring of the national air carrier.

Open the main road network to international traffic complying with the acquis on weight and
dimensions, before its complete upgrading (even where this would entail the use of secondary
non-upgraded road sections for the purposes of loading and unloading) and without imposing
prohibitive charges for access to non-upgraded roads.

Ensure adaptation of the Romanian transport fleets to the EU acquis through restructuring the
inland waterways fleet to EU technical norms, strict application of the maritime safety acquis
(and improving the safety record of the Romanians flag), and implementing the road transport
technical, social, safety and environmental acquis.

Chapter 10: Taxation

Romania  should  focus  further  efforts  on  addressing  outstanding  legislation  to  complete
transposition  of  the  acquis,  as  well  as  on  reinforcing  its  capacity  for  implementation  and
enforcement.  Administrative  reforms  should  focus  on  improving  the  revenue  collection  and
the refund systems as  well  as  reducing  fraud  on  VAT  refunds.  Negotiations  on  this  chapter
continue. Key benchmarks will include:

Short Term

Continue  the  transposition  of  the  VAT  legislation,  giving  particular  importance  to  reducing
the scope of the exemptions and to introducing the special VAT schemes.

A major effort in the alignment of legislation concerning excise duties is required.

Adopt the duty suspension regime (in particular the provisions on tax warehouses).

Develop and adopt a Code of Ethics.

Medium Term

Ensure compliance with the Code of Conduct for Business Taxation.

Administrative capacity in the Tax administration must be increased.

Chapter 11: Economic and Monetary Union

Romania  should  focus  further  efforts  on  pursuing  the  alignment  of  its  legislation  with  the
acquis  in  this  area.  Negotiations  on  this  chapter  have  been  provisionally  closed.  Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

Medium Term

Align legislation with the provisions of the acquis regarding central bank independence,  the
prohibition  of  privileged  access  of  public  sector  authorities  to  financial  institutions  and  the
prohibition of direct financing of the public sector.

32

Fully harmonise government finance statistics with the ESA 95 requirements.

Chapter 12: Statistics

Romania  should  focus  further  efforts  on  upgrading  statistical  methodologies  and  improving
the quality and completeness of data. Further efforts are also needed to develop the capacity
of staff within the statistics administration and care should be taken that levels of staffing are
not further decreased. Negotiations on this chapter have been provisionally closed. Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

Short Term

Develop the quality and coverage of statistics in the field of macro-economics.

Further streamlining of the tasks and responsibilities of the eight lead regional offices should
be ensured.

Medium Term

Introduce the Intrastat system.

Define a long-term strategy for statistical development.

Information Technology capacity should be continuously renewed and developed.

Further training for central and regional staff is required in order to make effective use of the
equipment and the software applications.

Chapter 13: Social Policy and Employment

Romania  should  focus  further  efforts  on  the  adoption  of  a  new  labour  code,  continued
transposition and implementation of the health and safety at work acquis, further promotion
of  social  inclusion,  fully  aligning  anti-discrimination  legislation  with  the  acquis,  protecting
the rights of pregnant women, and providing free access to night work. Further work is also
needed with regard to inter-institutional co-operation, decentralising social responsibilities to
the  local  level,  budgetary  organisation,  ensuring  adequate  staff  numbers,  and  effective
training of personnel. Negotiations on this chapter have been provisionally closed. Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

Short Term

Adopt a revised Labour Code.

Clarify the distribution of responsibilities at local level and between local and national levels
with  regard  to  the  implementation  of  legislation  relating  to  social  assistance  and  social
protection.

Transpose and implement the new EC Directive on tobacco.

Implement the priorities and commitments contained in the Joint Assessment on Employment
Policy Priorities (JAP).

33

Medium Term

Complete  transposition  of  acquis  on  health  and  safety  at  work  and  labour  law.  Improve
implementation and enforcement capacity, in particular of the Labour Inspectorates.

Regarding  equal  treatment  for  women  and  men,  align  legislation  with  the  acquis  regarding
burden of proof, protection of the rights of pregnant women and free access to night work.

Complete  transposition  of  anti-discrimination  acquis,  in  particular  with  regard  to  indirect
discrimination and the burden of proof.

Strengthen  the  administrative  capacity  of  the  social  partners  with  particular  regard  to  new
policy areas including employment and social inclusion.

Promote autonomous social dialogue, especially at the sectoral level and in small and medium
sized enterprises, in order to improve its coverage.

Ensure  appropriate  capacity  for  management  of  European  Social  Fund  type  projects  in
preparation for Structural Funds.

Develop  a  common  national  approach  to  social  inclusion,  in  line  with  EU  guidelines.  A
particular  priority  should  be  given  to  developing  social  statistics  on  poverty  and  social
exclusion.

Reorganise the national surveillance and control system of communicable diseases in order to
comply with the acquis and intensify staff training.

Ensure the development of a health information system which meets Community standards.

Chapter 14: Energy

Romania should focus further efforts on addressing the structural problems that are facing the
sector:  non-payment  of  energy  bills,  restructuring  of  Termoelectrica,  and  improving  the
efficiency  of  its  energy  networks.  It  should  also  move  away  from  its  current  energy
production-oriented  policy,  and  towards  a  policy  based  on  energy  saving.  Romania  should
take the necessary measures to ensure the full and timely implementation of legislation in the
energy  sector  as  well  as  strengthening  the  administrative  capacity  of  the  newly  established
bodies (in particular the energy regulators, the energy efficiency body and the nuclear safety
authority).  Romania  should  ensure  compliance  with  Euratom  requirements  and  procedures
and take measures for the progressive building up of oil stocks. Negotiations on this chapter
continue. Key benchmarks will include:

Short term

Address  the  issue  of  low  salaries  at  the  Nuclear  Safety  Regulatory  Authority  that  lead  to  a
steady turnover of personnel.

Address issues of spent nuclear fuel and nuclear waste.

Improve the level  of energy  bill collection, as well  as  collecting arrears owed  to  the  energy
utilities.

34

Pursue a policy of introducing transparency and removing distortions in energy prices so that
all energy prices cover costs.

Promote further use of renewable energies; align with energy efficiency acquis and develop a
pro-active policy to reduce the energy intensity of the Romanian economy through promoting
energy efficiency at all stages of the energy cycle.

Medium term

Continue restructuring efforts in the solid fuel sector.

Ensure compliance with the acquis in the hard coal sector.

In  the  nuclear  sector,  continue  the  national  safety  improvement  programmes,  paying
particular attention to the 2002 Status Report’s recommendations.

Build up levels of stocks of oil products according to a progressive timetable.

Pursue  implementation  of  an  energy  efficiency  policy  which  aims  reducing  the  energy
intensity of the Romanian economy, including promoting the use of renewable energies.

Chapter 15: Industrial Policy

Romania  should  focus  its  further  efforts  on  finalising  the  privatisation  process  in  a  fully
transparent  manner,  attracting  investment  by  simplifying  and  stabilising  the  business
environment,  and  developing  the  administrative  capacity  and  structures  necessary  to
implement its  Industrial Policy  Strategy.  Great care  will  have  to  be  taken  that  the  policy  of
restructuring is implemented in a manner conforms to the competition and State Aid acquis so
as to create efficient competitive firms. Negotiations on this chapter have been provisionally
closed.

Chapter 16: Small and Medium Sized Enterprises

Romania  should  focus  future  efforts  on  fully  implementing  the  Action  Plan  for  Removing
Barriers to SMEs, and on  addressing improvements  required in  the  legal  and  administrative
environment. The European Charter for Small Enterprises should be implemented. Measures
should also be taken to ensure that there is effective co-ordination between the many different
agencies involved in the sector. Negotiations on this chapter have been provisionally closed.
Attention needs to be given to ensuring that commitments made in that process are respected.

Chapter 17: Science and Research

Romania should focus further efforts  on  reinforcing research-related  administrative capacity
and  infrastructure,  in  order  to  increase  the  benefits  from  association  with  the  relevant
Community Framework Programmes including the 6th Framework Programme  (2002-2006),
for  which  it  has  already  signed  the  association  agreement.  Negotiations  on  this  chapter  are
provisionally  closed.  Attention  needs  to  be  given  to  ensuring  commitments  made  in  that
process are respected.

Chapter 18: Education and training

Romania  should  focus  future  efforts  on  completing  alignment  with  the  acquis  and  ensuring
that  reform  initiatives  are  supported  by  adequate  levels  of  funding.  Negotiations  on  this

35

chapter are provisionally closed. Attention needs to be given to ensuring commitments made
in that process are respected. Key steps include:

Short term

Clarify  some  aspects  of  the  secondary  legislation  approved  in  October  2001  to  ensure  full
alignment  with  the  Directive  on  education  of  children  of  migrant  workers  (definition  of
beneficiaries, free teaching of Romanian).

Medium term

Extend compulsory school education from 8 to 9 years.

Develop an overall plan to reform the education system.

Develop a structured vocational training system, in particular for continuing training.

Chapter 19: Telecommunications and information technologies

Romania should focus further  efforts on developing  an  efficient  and  independent  regulatory
administration and on adopting implementing legislation. It should continue to transpose the
updated telecommunications acquis and complete the implementation procedures as  soon as
possible. Negotiations on this chapter are provisionally closed. Attention needs to be given to
ensuring commitments made in that process are respected :

Short term

Make institution building efforts in order to ensure that the regulatory authority can assume its
functions in time for the liberalisation of the fixed-line telephony market.

Increase training and financial investment to ensure adequate administrative capacity for the
regulatory authority.

Chapter 20: Culture and Audio-Visual

Romania should focus further efforts on making the final legislative adjustments and should
continue to  reinforce  its  administrative  capacity.  Negotiations  on  this  chapter continue.  Key
benchmarks will include:

Short Term

Ensure that the restructuring made in the Ministry of Culture and Religious Affairs relating to
audiovisual  affairs  will  not  affect  Romania’s  institutional  capacity  to  secure  effective
legislative alignment and the sound implementation of the Phare project. Develop the capacity
of the National Audio-visual Council to enforce the new Audiovisual Law.

Conduct specialised training courses for National Audio-visual Council staff.

Medium Term

Establish and enhance regulatory mechanisms with a view to the  full  implementation of the
audiovisual acquis from the time of accession. .

36

Chapter 21: Regional Policy and Co-ordination of Structural Instruments

Romania  should  focus  further  efforts  on  designing  the  management  and  implementation
system for the Structural Funds. Particular attention should be given to clarifying the role of
the regional levels and strengthening inter-ministerial co-operation and partnership.. Systems
and  procedures  for  effective  monitoring,  financial  management  and  control  should  be
established.  Administrative  capacity  needs  to  be  significantly  improved  with  regard  to
programming,  including  identification  and  preparation  of  projects.  Negotiations  on  this
chapter continue. Key benchmarks will include:

Medium Term

Continue efforts to establish a clear and consolidated cohesion policy.

With regard to programming, develop the capacity to select, discuss and clarify development
priorities at both national and regional levels.

Improve  co-ordination  and  co-operation  between  ministries,  as  well  as  between  relevant
agencies and social and economic partners.

The  National  Development  Plan  should  be  further  co-ordinated  with  the  national  budgetary
and policy-making processes, including multi-annual programming and budgeting.

Address both legislative and administrative aspects relating to EC requirements on  financial
management and control (control and audit functions, mobilisation and circulation of financial
flows, national co-financing).

Intensify efforts to meet Structural Funds requirements for monitoring and evaluation.

Improve project preparation.

Chapter 22: Environment

Romania  should  focus  further  efforts  on  developing  implementation  capacities  and  should
ensure  that  laws  include  realistic  deadlines  and  cost  assessments,  and  are  only  proposed
following  sufficient  consultation.  At  the  local  level,  significant  resources  are  needed  to
improve the status of existing staff, to  recruit  new inspectors,  and  to  train  them  adequately.
Co-ordination between ministries on environmental issues needs to be improved and Romania
should integrate environment protection requirements into the definition and implementation
of all other sectoral policies so as to promote sustainable development. Negotiations on this
chapter continue. Key benchmarks will include:

Short Term

Complete an overall assessment of the situation in the environment sector in order to identify
gaps to be filled.

Develop implementation plans together with financing strategies, to outline the steps needed
to ensure full implementation in  the  medium  and  longer  term.  These  plans  should  take  into
account available resources and institutional strengthening, and further elaborate mechanisms
to monitor effective implementation.

Improve  administrative  capacity  to  implement  the  acquis,  through  reinforcement  of  staffing
both in the Ministry and in other relevant bodies, including at local and regional levels.

37

Improve  the  manner  in  which  legislation  is  prepared  by  allowing  for  full  consultation  with
stakeholders  (including  other  Ministries,  economic  operators  and  NGOs),  and  giving  full
consideration  to  the  implementation  requirements,  including  a  thorough  assessment  of  the
implementation costs.

Adopt secondary legislation on environmental impact assessment and access to information.

Reinforce  structures  and  mechanisms  to  ensure  integration  of  environmental  protection
requirements  into  the  definition  and  implementation  of  all  other  sectoral  policies  so  as  to
promote sustainable development.

Medium term

Continue with the complete transposition of legislation in all remaining areas.

Ensure progress with the implementation of the transposed acquis, including through securing
the necessary financial resources.

Enhance  the  administrative  structures  necessary  for  full  implementation  of  the  acquis,
following commitments made during the negotiations.

Chapter 23: Consumers and Health Protection

Romania should focus further efforts on  completing transposition  of  EC  legislation  in  areas
such  as  consumer  credit,  time-share,  injunctions,  sales  of  consumer  goods  and  associated
guarantees.  Romania  should  place  particular  emphasis  on 
implementation  and
enforcement  of  existing  legislation,  which  means  ensuring  that  the  administrative  structures
are  able  to  operate  effectively.  This  is  particularly  important  with  regard  to  market
surveillance, and increasing consumers’ and producers’ awareness of the new regulations. The
role  of  consumer  associations  in  developing  and  implementing  consumer  policy  should  be
further  promoted.  Negotiations  on  this  chapter  have  been  provisionally  closed.  Attention
needs  to  be  given  to  ensuring  commitments  made  in  that  process  are  respected.  Key  steps
include:

the 

Medium Term

Complete  the  legislative  framework  in  the  area  of  consumer  protection  particularly  on
advertising,  general  product  safety,  consumer  credit,  time-share,  injunctions,  sales  of
consumer goods and associated guarantees.

Ensure an effective level of protection of the economic and legal rights of consumers.

Specific  training  should  be  organised  for  staff  of  the  National  Authority  for  Consumer
Protection as well as for personnel from other relevant institutions such as the police, customs
and the magistracy.

With  respect  to  market  surveillance  activities,  greater  attention  should  be  given  to  safety
aspects of non-food consumer products and more resources need to be devoted to laboratory
testing.  Co-operation  between  the  relevant  actors  in  this  area  and  a  clarification  of  their
respective roles and tasks should be enhanced.

Further  promotion  of  the  capacity  of  consumer  organisations  to  play  an  active  role  in
consumer protection should be envisaged.

38

Chapter 24: Justice and Home Affairs

Romania  should  focus  further  efforts  on  legal  approximation  in  areas  such  as  migration,
Schengen,  co-operation  in  the  field  of  drugs,  and  judicial  co-operation.  Romania  should
continue efforts to increase the administrative capacity and inter-agency co-operation of law
enforcement  bodies.  Particular  attention  should  be  given  to  bodies  in  charge  of  combating
fraud  and  corruption.  Finally,  major  efforts  are  required  to  reinforce  the  capacity  of  the
judiciary  and  to  ensure  its  full  independence.  Negotiations  on  this  chapter  continue.  Key
benchmarks will include:

Short Term

Implement  the  National  Anti-Corruption  Strategy  and  strengthen  the  autonomy  of  the
Prosecutor's Office.

Amend and update on a regular basis the Schengen Action Plan.

Implement the integration programmes for asylum seekers and refugees.

Adopt  an  integrated  border  management  strategy  covering  all  borders  of  Romania,  with
particular attention for the gradual modernisation of the border infrastructure and equipment,
the  necessary  training  for  the  (newly  recruited)  professional  border  guards  and  customs
officers  and  for  the  co-ordination  between  authorities.  Begin  recruiting  additional  border
police officers.

Enhance the administrative capacity of the central authority for issuing visas.

Adopt  new  legislation  for  full  alignment  with  the  EU  acquis  in  the  field  of  criminal  law
protection of the Communities' financial interests.

Amend  the  Alien  Law  and  other  relevant  legislation  on  migration  and  bring  it  fully  in  line
with the acquis. Continue to conclude and implement readmission agreements.

Implement the newly adopted legislation on the reform of the police forces.

Adopt  and  implement  a  national  strategy  to  combat  various  types  of  organised  crime
especially  those  with  a  transborder  character  such  as  trafficking  in  drugs,  human  beings,
stolen  or  counterfeited  goods,  arms,  nuclear  materials  etc…,  and  pay  special  attention  to
increasing  the  co-ordination  between  law  enforcement  bodies  based  in  the  principles  of  the
Pre-Accession Pact on Organised Crime.

Adopt and implement a national drugs strategy in line with the EU Drugs Strategy 2000-2004
and continue to take steps to prepare for participation in the Reitox network.

Further  strengthen  the  institutional  network  with  competencies  in  the  area  of  money
laundering  with  special  attention  to  national  inter-agency  co-operation  and  international  co-
operation.

Medium Term

Fully  align  visa  policy  with  the  EU  lists  of  third  countries  whose  nationals  are  under  visa
obligation  and  of  those  whose  nationals  are  exempt  from  that  requirement.  Continue
equipping  diplomatic  and  consular  missions  with  devices  to  detect  forged  or  falsified

39

documents. Continue to implement a coherent anti-corruption policy with sufficient attention
for prevention.

Continue  major  efforts  to  establish  a  Schengen-type  border  security  system  via  the  full
implementation of the Schengen Action Plan.

Continue to implement the integrated border management strategy and the modernisation of
the border infrastructure, equipment and continuous training in order to allow upon accession
for  a  high  level  of  border  control,  especially  at  the  future  external  borders  of  the  EU.
Complete filling all vacancies in the border police.

Continue  efforts  to  establish  an  accountable  and  fully  co-ordinated  professional  police
organisation able to efficiently combat ordinary as well as various forms of organised  crime
such as trafficking in drugs, people, etc… Ensure full compliance with the acquis and other
international  standards  on  the  fight  against  the  misuse  of  the  financial  system  and  the
financing of terrorism.

Prepare  for  full  implementation  upon  accession  of  the  third  pillar  customs  co-operation
Conventions.

Take further measures to ensure implementation of the Community instruments in the area of
judicial co-operation in civil matters, notably as regards mutual recognition and enforcement
of judicial decisions.

Make  legislative  amendments  necessary  in  order  to  accede  to  and  implement  the  EU
Convention on Mutual Assistance in Criminal Matters upon accession.

Take the necessary steps to prepare for full implementation upon accession of the instrument
applying the principle of mutual recognition and in particular the European arrest warrant and
the Framework Decision on the execution of orders freezing property or evidence.

Chapter 25: Customs Union

Romania  should  now  focus  further  efforts  on  completing  the  approximation  of  the  customs
legislation, in particular with regard to rules of origin, the status of free zones, and dual-use
goods and precursors. Additional efforts are also needed to reduce levels of corruption within
the customs administration and to prepare in advance for the application of measures that will
be introduced at the time of accession. Negotiations on this chapter are provisionally closed.
Attention needs to be given to ensuring commitments made in that process are respected.

Short Term

Improve co-operation between customs services and other enforcement bodies.

Combat  irregularities  by  increasing  the  use  of  risk  analysis  methods  and  strengthening  the
intelligence function within the customs administration.

Combat corruption within the customs service.

Medium Term

Strengthen  operational  and  administrative  capacity  of  customs  administration  including  IT
capacity.

40

Chapter 26: External Relations

Romania should focus further efforts on ensuring that the capacity exists to fully implement
and  enforce  the  EC  acquis  in  this  field  upon  accession  and  on  taking  decisive  steps,  as  a
matter of urgency, towards the re-negotiation or abrogation of its bilateral investment treaties
in  full  conformity  with  its  EU  membership  obligations.  A  mechanism  should  also  be
established  to  thoroughly  screen  all  trade-related  legislation  in  order  to  ensure  that  it  is
compatible with Romania’s international obligations. Negotiations on this chapter have been
provisionally closed. Attention needs to be given to ensuring that commitments made in that
process are respected. Key steps include:

Medium term

Bring bilateral investment treaties into conformity with the Treaty obligations.

Complete alignment of Romania with the EC regulation on dual use goods.

Develop progressively a development co-operation policy along EC lines.

Chapter 27: Common Foreign Security Policy

Romania should focus further efforts on ensuring that its foreign policy orientation remains in
line  with  the  Union's  developing  foreign  and  security  policy,  adopting  the  legislation  on
economic sanctions, and finalising the development of administrative structures. In particular,
Romania should ensure that its national policies conform to the EU's common positions, and
should defend these positions in international fora. In this context, particular attention should
be given to the bilateral agreement which Romania signed with the USA in August 2002 on
the  non-surrender  of  each  others’  nationals  to  the  International  Criminal  Court  and  which
does not comply with the guiding principles laid down by the Council on 30 September 2002.
Negotiations  on this  chapter  have  been  provisionally  closed.  Attention  needs  to  be  given  to
ensuring that commitments made in that process are respected.

Chapter 28: Financial Control

Romania  should  focus  further  efforts  on  implementing  sound  financial  control  systems  by
completing  alignment,  further  developing  its  legislative  framework  and  administrative
capacity to protect the Communities’ financial interests, and completing and strengthening the
required institutional structures. Negotiations on this chapter continue. Key benchmarks will
include:

Short Term

Complete  the  establishment  of  functionally  independent  internal  audit  units  in  all  budget-
spending centres, focusing on systems-based procedures and performance-audit functions.

Define  appropriate  working  methods  for  the  Central  Harmonising  Unit  at  the  Ministry  of
Finance.

Develop  appropriate  human  resources  and  training  policies  for  both  the  internal  audit  units
and the Central Harmonising Unit.

Adopt the draft Internal Audit Law and the draft Preventive Financial Control Act.

Develop manuals for financial management and control systems and internal audit.

41

Put in place effective co-operation with OLAF through the anti-fraud co-ordinating service.

Medium Term

Decentralise ex ante financial control to resident financial controllers in spending units.

Reinforce the independence of members of the Court of Accounts through an amendment to
the relevant article of the Constitution.

Develop  a  comprehensive  set  of  standards  for  external  audit,  conforming  to  internationally
accepted external audit standards and in line with the EC acquis.

Enhance  parliamentary  scrutiny  of  the  Court  of  Accounts’  audit  findings  and  improve  the
dissemination of the Court of Accounts’ reports.

As  regards  the  control  of  structural  action  expenditure,  strengthen  national  public  internal
financial control systems and external audit services.

Further  develop  an  effective  co-ordination  structure  and  legislative  framework  for  the
protection  of  EC  financial  interests  and  strengthen  mechanisms  for  administrative  enquiries
and for the judicial follow-up of anti-fraud investigations.

Chapter 29: Financial and budgetary provisions

Romania  should  focus  further  efforts  on  preparations  for  application  of  the  acquis  on  own
resources,  and  on  creating  a  framework  for  transparent  and  efficient  financial  flows  to  and
from the EC budget. Romania should continue  implementation of the ESA-95  concepts and
pay particular attention to quality and methodology improvements in the calculation of GNP
and  the  national  accounts,  including  enhancing  their  exhaustiveness.  Romania  should  also
work to improve the calculation of the VAT base. Negotiations on this chapter have not  yet
been opened.

Short term

Create the capacity to effectively implement the multi-annual budgetary mechanisms defined
in  the  Public  Finance  Law,  particularly  with  a  view  to  ensuring  co-financing  of  EC  pre-
accession instruments.

Strengthen the co-ordination unit on own resources in the Ministry of Public Finance.

Medium term

Continue  efforts  to  bring  the  budgetary  principles  and  rules  into  line  with  those  standards
generally applicable in the Community.

Improve compliance of national accounts statistics with ESA 95 standard.

Ensure adequate administrative capacity to collect and transfer future EC all own resources to
the Community budget in a timely manner.

Further strengthen efforts to set up effective instruments to combat fraud relating to VAT and
duties.
customs 

42

ANNEX

FINANCIAL STATEMENT

DATE: 11/11/2002

1.

2.

3.

4.

BUDGET HEADING:
PHARE: B7-03
ISPA: B7-02
SAPARD

B7-01

TITLE: Roadmaps for Bulgaria and Romania

LEGAL BASIS:
Phare programme (Council Regulation 3906/89, ISPA, (Council Regulation 1267/99) and
Sapard (Council Regulation 1268/99), Co-ordination aid to the applicant countries in the
framework of the preaccession strategy (Council Regulation 1266/99)
AIMS:
The overall aim of increased financial assistance is to support Bulgaria and Romania in taking
the remaining steps necessary to meet criteria for membership.
The three existing instruments, Phare, ISPA and Sapard, can support programmes in the areas
required on the basis of the analysis in the Commission’s 2002 Regular Reports and linked to
the absorptive capacity of these countries. Assistance will be conditional on making progress in
line with the roadmaps and to improving significantly capacity to manage and use funds
effectively.

5.

FINANCIAL IMPLICATIONS

2004
(EUR million)

2005
(EUR million)

2006
(EUR million)

5.0

CHARGED TO THE EC BUDGET

EXPENDITURE
-
Bulgaria
Romania

1228
368
860

1330
399
931

1432
430
1002

5.2 METHOD OF CALCULATION:

The proposal entails a percentage increase over the present baseline of: 2004 – 20%; 2005 –
30%; 2006 – 40%. The baseline for PHARE/ ISPA/ SAPARD for Bulgaria and Romania
combined is the average of 2001-2003 allocations (1023 EUR millions) recalculated in 1999
prices consistent with the framework established by the Berlin European Council. The
calculation for Phare includes the envelopes for the National programmes (Phare and CBC) and
the share of the multicountry programmes. Nevertheless, the figures do not allow for additional
assistance to Bulgaria for nuclear decommissioning in the period 2004-2006. As it is impossible
to say at this stage of negotiations whether, and if so how much and when, additional EC funds
will be offered for this purpose, a separate reserve will need to be established within the ceiling
under Heading 7. The division of allocations between Romania and Bulgaria is established at a
ratio 70/30.
CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE
CURRENT BUDGET?

 NO

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS: Appropriations within the Heading 7 of the financial perspectives 2000-2006.

 NO
NO
YES

6.0

6.1

43