Communication from the Commission - Further indicative guidelines for the candidate countries
Date: 2003-03-12
Institutions: European Commission
Subjects: Cohesion Fund, EU regional policy, accession to the European Union, operation of the Institutions, pre-accession strategy, structural policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 12.3.2003
COM(2003) 110 final

COMMUNICATION FROM THE COMMISSION

FURTHER INDICATIVE GUIDELINES
FOR THE CANDIDATE COUNTRIES

1. 

THE  GENERAL  BACKGROUND  AND  SPECIFIC  CONTEXT  FOR  THE  FIRST
PROGRAMMING IN THE NEW MEMBER STATES

Pursuant  to  Article  10(3)  of  Council  Regulation  (EC)  No  1260/1999  laying  down
general  provisions  on  the  Structural  Funds,  on  1  September  1999  the  Commission
published ‘Guidelines  for  programmes  in the period  2000  to  2006’.  This  document
sought  “to  help  national  and  regional  authorities  to prepare  their  programming
strategy for each of the Objectives 1, 2 and 3 of the Structural Funds and their links
with  the  Cohesion  Fund”  so  as  to  make  the  best  possible  use  of  Community
assistance.

The 10 accession countries should become members of the European Union during
the  current  programming  period  and  in  line  with  the  common  European  Union
position on the negotiation of chapter 21 on  « Regional policy and  co-ordination of
structural instruments ». Given the particular situation faced by the  regions in these
ten  countries,  the  Commission  has  decided  to  publish  a  « Complement  to  the
indicative guidelines ».

This  new  document  does  not  replace  the  1999  Communication,  which  remains  the
reference document, but constitutes a useful  supplement  to it by proposing specific
further  guidelines  which  take  account  both  of  the  particular  situations  of  these
countries and the institutional framework specific to this enlargement.

1.1.  More aid during the pre-accession period

Three  financial  instruments  provide  support  for  the  candidate  countries  as  they
prepare for accession:

– 

– 

– 

ISPA offers preparation for the Cohesion Fund;

SAPARD assists the adaptation of the agricultural sector and rural areas1;

a  significant  part of  PHARE  (economic  and  social  cohesion  and  cross-border
cooperation) is a precursor to the Structural Funds’ programmes.

The  Commission  supplements  this  aid  through  technical  assistance  and  greater
administrative  cooperation:  twinning,  seminars,  road  maps  to  prepare  for  the
Structural Funds2 and support for the preparation of programming documents.

1

2

While  Cyprus  and  Malta  do  not  benefit  from  ISPA  and  SAPARD,  they  receive  special  financial
support, mainly for institutional support.
The Commission has proposed to the candidate countries a road map to prepare for the Structural Funds
based on the following three stages:
- Candidate countries were invited to designate their managing and paying authorities at CSF, OP and
SPD level within the meaning of Article 9(n) and (o) of Regulation (EC) No 1260/1999 by the end of
2001, in order to permit the necessary administrative capacity to be built up and the structures required
for  implementation  to  be  established.  This  was  also  made  a  requirement  for  provisional  closure  of
Chapter 21.
- The provisional closure of Chapter 21 was agreed upon on the basis of a commitment by the candidate
country concerned to submit its development plan, draft SPD(s) and operational programmes containing
all the elements listed in Articles 17, 18 and 19 of Regulation (EC) No 1260/1999 by the signature of
the Accession Treaty.

2

                                                
Furthermore, loans from the EIB are already providing support for vital investment
in the candidate countries, often supplementing grants from ISPA.

1.2. 

A realistic and pragmatic approach to implementing the Structural Funds and
the Cohesion Fund

The first programming period for the new members will be very short because it will
cover the  years 2004-06 at most instead of the  seven  years  for the  current  Member
States. Thus, as a first stage  of a medium to  long-term  development  strategy, these
countries should not aim  to  tackle  and  solve  all  their  difficulties  within  these  three
years but should establish clear  priorities  designed to  concentrate the impact of  the
Funds on their most crucial needs.

Furthermore,  despite  substantial  progress,  the  candidate  countries  still  have  only
limited  capacity  as  regards  administration,  programming,  management  and
monitoring.  Compliance  with  Community  rules,  particularly  as  regards  public
contracts and the environment, still poses enormous difficulties.

Virtually all the regions of the ten candidate countries are on the list of the 25% of
regions with the lowest per  capita GDP. The main challenge is thus to promote the
growth-enhancing  conditions  and  factors 
to  substantial  real
convergence  of  all  regions3,  and  to  ensure  that  the  strategy  focuses  on  the
development  of  those  investments  likely  to  increase  competitiveness  while  paving
the way for greater job creation and sustainable development.

that  will 

lead 

As a result, meeting the challenge of implementing the first programming in 2004-06
in the new Member States rests on three vital conditions:

(1)

(2)

anticipation:  wherever  possible,  preparing  and  negotiating,  the  programming
documents  with  the  Commission  before  accession  so  that  the  implementing
period can be as long as possible;

a  quest  for  simplification,  which  has  led  the  Commission  and  the  Member
States  to  suggest  that  these  countries  should  adopt  a  realistic  and  pragmatic
approach  to  implementing  the  Funds  during  this  first  programming  period.

This  approach  both  complies  with  the  acquis  and,  most  important,  seeks  to
limit the number of items of assistance and Community Initiatives:

– 

– 

six  of  the  ten  candidate  countries  have  chosen  the  single  programming
document (SPD) as the form of assistance;

four  will  submit  a  development  plan  and  a  limited  number  of  sectoral
operational  programmes  plus  a  single  regional  operational  programme
for all the regions eligible under Objective 1;

- The Commission intends to use the ratification period before accession to start discussions  with  the
future  Member  States  on  the  programming  documents,  the  draft  operational  programmes  should  be
submitted in due time, and the Commission strongly recommends submission of the draft programme
complement together with the draft SPD or operational programmes.
Growth performance has been uneven among countries with stronger convergence, in Slovenia, Estonia
and Hungary. At regional level, higher income regions have on average had a better performance than
low income ones (1995-98).

3

3

                                                                                                                                                        
– 

– 

– 

– 

only  two  programmes  under  the  Interreg  and  Equal  Community
Initiatives will be implemented in these ten countries between 2004 and
2006;

measures of  the  Leader+ and  Urban type may  be  included  in  the  single
programming documents or the operational programmes;

the SPDs or OPs for Objectives 1 or 2 may,  where appropriate, support
the Interreg III A cross-border cooperation programmes;

innovative  actions  will  not  be  implemented  in  the  new  Member  States
during this programming period;

(3)

a limit on the number of items of assistance, priorities and measures, through
genuine choices to target the work of the Structural Funds on the needs which
have greatest priority.

This approach should facilitate the financial management of future programmes and
allow  a  more  flexible  response  to  problems  of  absorption  which  may  affect  the
implementation of certain measures.

However,  the  development  strategy  adopted  under  the  Community  support
framework  (CSF)  or  SPD  should  pay  particular  attention  to  coherence  among  the
various items of assistance and priorities involved. It should also take account of the
actual  capacity  for  absorption  assessed  in  terms  of  the  capacity  to  prepare  projects
and  the  existence  of  management  structures  which  are  adequate  for  the  various
priorities and measures contemplated.

With  regard  to  compliance  with  State  aid  rules,  and  in  accordance  with  the
mechanism  set  out  in  the  common  positions  on  competition  policy,  the  candidate
countries are expected to draw up a list of those existing aid measures that they wish
to  continue  after  the  date  of  accession,  and  which  the  relevant  State  aid  authority
considers as compatible with the acquis. Only aid measures that are included in the
list and to which the Commission has not objected, or that were otherwise notified to
and approved by the Commission upon accession, can be eligible for part-financing
Funds.
from 

Structural 

the 

4

2. 

INSTITUTIONAL  NEEDS  COMMON  TO  ALL  COUNTRIES: 

THE 
INSTITUTIONAL AND ADMINISTRATIVE CAPACITY

INCREASING

In  the  first  progress  report  on  economic  and  social  cohesion4,  as  in  its
‘Communication  on 
the  accession
negotiations’,  the  Commission  refers  to  the  need  to  continue  improving  the
institutional capacity of the candidate countries.

the  common 

framework 

financial 

for 

On the basis of the experience acquired during implementation of the pre-accession
instruments, the aims of the period 2004-06 should seek to ensure:

– 

– 

– 

the  setting  up  of  efficient  “project  pipelines”,  a  sine  qua  non  for  the  new
Member States to have available an adequate number of well-prepared projects
allowing them to fully absorb Community assistance;

the setting up of mechanisms ensuring the transparency of investments through
the  monitoring  of  public  tender  procedures  and  exchange/cross-checking  of
information between the authorities involved at national and regional level;

the  development  of  effective  delivery  systems,  in  particular  for  education,
training and employment.

This would best be done through focusing on the following priorities:

– 

– 

– 

– 

increasing the capacity and resources of the programming units;

improving or establishing adequate implementing bodies;

initial and continuous training of staff and the development of human resources
as a key element in supporting structural changes and promoting economic and
social cohesion;

improving  the  professional  skills  of  the  public  administration  in  information
and communications technologies (ITC).

At  a  more  general  level,  strengthening  the  capacity  of  crime  prevention  authorities
(law enforcement and judicial authorities) both in terms of equipment and training of
human resources is important5.

4

5

COM (2002) 46 final, 30 January 2002.
In the current programming period, the Community is already supporting economic and social cohesion
initiatives which indirectly contribute to crime prevention: the Objective 1 programme in Italy includes
measures  concerning  public  safety  in  the  Mezzogiorno,  a  special  case  reflecting  structural  problems
affecting  society  and  conditioning  the  regions’  economic  and  social  development.  Interreg  allows  for
more targeted assistance on internal  and  external  borders,  as  well  as  cross-border  areas  in  the  Union,
particularly  in  relation  to  urban  development,  social  inclusion  and  judicial  and  administrative
cooperation.

5

                                                
3. 

SECTORAL NEEDS AND PRIORITIES IN THE CURRENT CANDIDATE COUNTRIES

3.1. 

Substantial needs in infrastructure and equipment

Ensuring efficient connections to EU and other markets and reducing local obstacles
to  business  and  labour  mobility  are  of  key  importance  if  the  future  Member  States
are to catch up economically.

These countries have very substantial needs as regards infrastructure and equipment
both  in  the  fields  of  transport,  energy  and  the  environment  and  in  those  of  the
information  society,  research,  education  and  health,  which  can  also  be  financed
under the Structural Funds.

The TINA6 study put at about €90 billion the total cost of constructing the transport
infrastructure  required  in  the  CEECs  to  achieve  the  goals  and  criteria  of  the
Community guidelines on the development of the trans-European transport network7
which  apply  to  the  present  Member  States.  Other  studies  put  the  cost  of  applying
Community  environmental  standards  at  €50  to  €100  billion,  or  €15  to  20  billion  a
year over the next ten years for these two sectors alone.

The work of part-financing major infrastructure projects will have to be shouldered
primarily  by  the  Cohesion  Fund.  The  Commission  has  therefore  proposed  that  the
new  Member  States’  share  of  the  Cohesion  Fund  should  be  about  one  third  of  the
total  for  the  structural  instruments  as  compared  with  18%  for  the  present  cohesion
countries.  The  development  strategy  in  the  plan  (or  SPD)  should  ensure  synergy
between  the  sectoral  strategies  in  transport  and  the  environment  defined  for  the
Cohesion  Fund  and  those  underlying  the  assistance  provided  under  the  Structural
Funds.  Loans from the EIB can usefully be employed to supplement part-financing
from the Structural Funds or the Cohesion Fund.

To avoid dispersal of Community contributions, the measures in these  areas should
concentrate on projects which can demonstrate:

– 

a  contribution  to  the  structural  adjustment  of  the  eligible  area  or  region
concerned;

– 

that the final beneficiaries have the capacity to prepare and implement them.

3.2. 

Transport

Some  19  000  km  of  roads,  21  000  km  of  railways,  4  000  km  of  waterways,  40
airports  and  20  seaports  will  have  to  be  built  or  rebuilt  (since  the  design  of  this
infrastructure is so obsolete).

Five priorities supplement the 1999 guidelines:

(1) modernising the networks through major investment to:

6

7

Transport Infrastructure Needs Assessment.
Decision  No  1692/96/EC  of  the  European  Parliament  and  of  the  Council  of  23  July  1996  on
Community  guidelines  for  the  development  of  the  trans-European  transport  network  (OJ  L  228,
9.9.1996).

6

                                                
– 

– 

– 

develop motorway networks (sometimes very underdeveloped);

bring existing road networks up to Community standards,8 particularly as
regards the weight and dimensions of vehicles9;

modernise aging rail networks which are suffering from underinvestment
dating back many years;

(2)

improving urban transport infrastructure which is now unable to cope with the
sharp increase in traffic;

(3) meeting  the  goals  of  the  White  Paper  on  European  transport  policy10,  as
regards bottlenecks and safety11 and the development of short-distance sea and
river transport, including links to ports, particularly on the Danube ;

(4)

improving road safety;

(5) modernising the rail system with the deliberate aim of moving 35% of freight
by rail by 201012, by rebalancing this mode of transport and intermodality and
restructuring the rail companies.

This means that there will be three levels of assistance:

– 

– 

the  pan-European  corridors  and  areas  defined  by  the  Crete  and  Helsinki
ministerial conferences;

the  future  trans-European  network  negotiated  as  part  of  the  technical
adjustment of Decision 1692/96/EC on the Community guidelines;

– 

networks at regional and urban level.

In  accordance  with  the  Regulation,  the  Cohesion  Fund  will  contribute  solely  to
infrastructure  for  projects  located  on  the  trans-European  network.  The  job  of  the
Structural  Funds  will  be  to  supplement  this  instrument  for  regional  infrastructure
providing  access  to  the  trans-European  network,  urban  infrastructure  and  measures
not  linked  to  infrastructure  (e.g.  staff  training).  Assistance  in  urban  areas  will
concern mainly policies on mobility favouring public transport13.

8

9

10

11

12

13

Directive 96/53/EC.
It is estimated that 70% of the road network in the CEECs does not meet the standard of 11.5 tonnes per
axle.
COM (2001) 370.
Because of the need to promote road safety, a prior analysis of the impact on safety of road projects will
be encouraged.
The candidate countries which have a dense rail network carry almost 40% of freight in this way (8% in
the EU). The obsolete infrastructure and shortcomings of the rail companies mean that the dominance
of  road  transport  will  have  an  impact  in  terms  of  congestion,  environmental  problems  and  declining
road safety. Present trends suggest that the share of freight carried by rail could fall to 10% by 2010 if
pro-active policies are not pursued.
Community assistance for the trans-European networks is limited to 10% of the total cost of a project
(Regulation (EEC) No 2236/95) and the new Member States will be eligible as soon as they join. This
instrument  must  therefore  be  coordinated  with  the  Cohesion  Fund  and  the  Structural  Funds  (in
accordance with the rules on the non-cumulation of aid). The Commission has proposed an amendment

7

                                                
3.3. 

Environment

Structural measures should support the environment through:

– 

– 

direct funding  of environmental investments helping  with  the  implementation
of the environmental acquis (drinking water, waste water, waste management);

supporting  integration  of  the  environment  into  other  policies,  thus  promoting
development along a more sustainable path14.

Water15:

While  90%  of  the  population  of  the  EU  is  connected  to  water  distribution  systems
and  70%  to  mains  drainage,  in  the  candidate  countries  60%  of  the  population  is
connected  to  a  mains  water  supply  and  only  42%  of  waste  water  is  treated,  well
below the figure required by Community standards.

For the period 2004-06, the 1999 priorities thus apply in full.

Waste Management:

While all the candidate countries have established large-scale systems for recycling
waste,  almost  all  are  finding  it  difficult  to  meet  the  targets  set  in  the  Community
Directive16.  Existing  plants  have  not  been  modernised  and,  if  no  public  money  is
forthcoming, some will have to be closed. This situation will deteriorate because the
economic growth expected in these countries in the next few years will undoubtedly
have  a  significant  impact  on  the  amount  of  waste  produced.  Support  from  the
structural  instruments  in  this  field  will  therefore  be  of  prime  importance  for
sustainable  development  in  the  enlarged  Union,  even  though  most  countries  will
have transitional periods for implementing the main heavy-investment directives.

While  making  sure  they  properly  implement  the  commitments  given  during
negotiations,  the  new  Member  States  should  apply  the  1999  recommendations
concerning  the  management  and  disposal  of  solid,  urban,  industrial  and  hazardous
waste according to Community policy and legislation; waste recycling and recovery
and the landfills directive17 (see page 17 of the 1999 document).

Moreover, the new Member States should focus on the three following priorities:

– 

implementation  of  the  integrated  pollution  prevention  and  control  (IPPC)
Directive18;

14

15

16

17

18

to  the  Regulation  to  allow  part-financing  at  a  rate  of  20%  for  cross-border  sections  of  transport
infrastructure linking the Union to the candidate countries.
The  Sustainable  Development  Strategy,  endorsed  by  the  Göteborg  European  Council  in  June  2001,
provides an important framework for the period 2004-06 and beyond.
Programmes/projects should take into account the requirements of the Framework Directive on Water.
50% of waste recycled in 2001 in the current Member States.
Council Directive 1999/31/EC on the landfill of waste, OJ L 182, p. 1, 16.7.1999.
This Directive is the main environmental challenge for industry in the candidate countries as more than
6  000  industrial  installations  will  require  major  investment  to  comply  with  this  legislation  by  2007.
Where permitted under State aid rules, Structural Fund support through national or regional aid schemes
could contribute to this objective.

8

                                                                                                                                                        
– 

– 

the provision of infrastructure to prevent natural hazards;

the protection of regions with long-term natural handicaps.

3.4. 

Energy

The priorities in this sector should concentrate on measures to:

– 

– 

– 

improve energy networks and their connections with those in western Europe;

make  up  the  extent  to  which  these  countries  are  lagging  behind  in  terms  of
energy efficiency19;

achieve the goal of doubling the share of renewable energy which applies to all
Member States20.

In  addition,  without  changing  the  basic  texts  governing  the  Cohesion  Fund,
flexibility would allow some assistance to be taken into consideration:

– 

– 

– 

measures to clean up pollution in conventional power stations (dust filters, SOx
scrubbers);

measures to make substantial improvements in energy efficiency;

measures to encourage the production of renewable or non-polluting energy.

The ERDF is the instrument for supporting investments in the networks and, where
necessary, energy production.

Community  aid  will  be  conditional  on  the  introductions  of  structural  reforms
allowing application of the directives in the gas and electricity sectors (separation of
distributors  and  producers,  establishment  of  a  regulator,  setting  of  tariffs).  These
reforms will require technical assistance supported by the Structural Funds.

3.5. 

Fisheries

Production  in  the  fisheries  sector  of  those  candidate  countries  with  a  coastline  has
fallen  sharply  because  of  the  over-exploitation  of  resources  and  the  collapse  of
markets.  Despite  drastic  reductions,  fishing  fleets  are  still  comparatively  old  and
uncompetitive  and  the  fishing  industry  is  based  on  out-dated  infrastructure  which
will require a substantial effort to bring it up to European standards.

The  priorities  should  be  identified  in  line  with  the  reform  of  the  common  fisheries
policy which was adopted by the Council at the end of 2002.

19

20

Their economies are much more energy-intensive than those of the current Member States, which has
an adverse effect on the environment.
Solar heating technologies are widely used in the Mediterranean Member States and Cyprus.

9

                                                
3.6. 

Agriculture and rural development21

In  most  candidate  countries,  despite  efforts  and  successful  developments,
restructuring  of  the  agriculture  and  food  industries  is  still  far  from  complete.  The
competitiveness of their agriculture and agri-food chain is generally much lower than
the EU average.

The unfavourable farm structure, and  in particular the  large  number of  small farms
and the existence of durable semi-subsistence farming combined with the presence of
an  emerging  commercial  farming  sector,  poses  a  range  of  administrative  and
economic dilemmas for the common agricultural policy. This dualism of structures is
likely to exacerbate political tensions during the restructuring process, when not only
farm  structures,  but  up  and  downstream  infrastructure,  services,  and  off-farm
employment opportunities will require expansion.

As regards the rural areas, most candidate countries have already gained experience
in the design and implementation of a policy part-financed through the pre-accession
instrument SAPARD22. Given the short programming period, the new Member States
should build on  the experience  of the  implementing  bodies set  up  under SAPARD,
be selective in their choice of measures, and concentrate funding on the main needs
for the period23.

3.7. 

Justice and home affairs24

A  safe  society  and  an  established  rule  of  law  are  fundamental  conditions  for
economic  and  social  development.  As  a  consequence,  the  fight  against  organised
criminal networks needs to be addressed.

The programmes for the period 2004-06 should help in the following way:

– 

– 

– 

ensuring the availability of institutional capacities for collecting, spending and
monitoring the use of public funds;

promoting and supporting rule of law through public awareness;

promoting  a  culture  of  “crime  prevention”,  in  particular  by  bringing  together
all  parties  involved  in  the  prevention  of  crime  at  local  or  regional  level
(national judicial and law enforcement authorities, entrepreneurs, trade unions,
NGOs, representatives of EU Institutions etc);

21

22

23

24

The  Commission’s  view  on  “Enlargement  and  Agriculture:  successfully  integrating  the  new  Member
States into the CAP” was presented in its issues paper SEC(2002) 95 final of 30 January 2002.
Council Regulation (EC) No 1268/1999.
A large part of the rural development measures of most new Member States will be integrated into their
Objective 1 programme, part-financed by the EAGGF Guidance Section.
In  the  current  programming  period,  the  Community  already  supports  economic  and  social  cohesion
initiatives  which  indirectly  contribute  to  crime  prevention:  in  Italy,  the  Objective  1  programme,
includes  actions  concerning  public  safety  in  the  Mezzogiorno,  a  special  case  reflecting  structural
problems  affecting  society  and  conditioning  the  regions’  economic  and  social  development.  Interreg
allows for more targeted assistance on internal and external borders, as well as cross-border areas in the
Union,  particularly  in  relation  to  urban  development,  social  inclusion  and  judicial  and  administrative
cooperation.

10

                                                
– 

strengthening the capacity of the crime prevention authorities (law enforcement
and  judicial  authorities),  in  particular,  through  enhanced  training  of  human
resources.

3.8. 

Employment and human resources

The Lisbon agenda stresses the need for enhancing investment in human capital. This
is particularly crucial in the case of the candidate countries, where employment rates
have decreased and unemployment has increased significantly, mainly because of the
restructuring  of  their  economies  and  labour  markets.  Six  out  of  the  ten  candidate
countries  have  exceedingly  high  unemployment  rates  above  the  EU  average.
Regional disparities remain high and often reflect the difference between the region
around the capital and those elsewhere. Women’s employment has often fallen less
than that of men because most job losses have occurred in industry and activity in the
services sector has grown.

The  priorities  for  human  resources  development  derive  from  the  priorities  and
conclusions  pervading  the  Joint  Assessment  Papers  (JAPs)  agreed  jointly  by  the
Commission and each candidate country25. They aim at providing a good basis for:

– 

– 

– 

– 

Promoting  and  improving  active  labour  market  policies  (ALMPs),  which
requires  examination,  evaluation  and  careful  monitoring  of  existing
programmes to improve their efficiency, as well as their expansion as part of a
comprehensive  implementation  strategy  which  should  also  address  regional
imbalances.

Improving  public  employment  services  and  labour  market  institutions,  which
are the main instrument for the delivery of active labour  market policies, and
implementing  preventive  strategies,  through  three  functions:  placement,
matching  and  guidance.  Support  should  focus  upon  the  extension  of  public
employment  service  coverage,  particularly  in  the  less  advantaged  areas;  the
training of public employment service staff and the setting up of computerised
job search systems.

Expanding  and  improving  the  quality  of  education  and  training  systems,
particularly  in  the  field  of  secondary  and  tertiary  education,  and  improving
systems of education and training which are able to identify and anticipate the
changing  training  needs  of  the  various  sectors  in  the  economy  and  be
responsive to those demands.

Tackling  and  preventing  gender  gaps  and  segregation  in  the  labour  market,
particularly  when  promoting  greater  skills  in  the  ITC  field  and  other  service
sectors. An important element is the provision of good quality care services for
children  and  other  dependants  and  the  development  of  family-friendly
arrangements.

– 

Promoting social inclusion by providing integrated socio-economic support to
their
the  members  of  socially  disadvantaged  communities, 

increasing 

25

The  JAPs  present  an  analysis  of  the  main  problems  and  challenges  facing  each  of  the  candidate
countries  in  preparing  themselves  to  be  able  to  fully  implement  the  EES  (European  Employment
Strategy).

11

                                                
participation in basic and secondary education and expanding the range of re-
training  programmes  to  improve  their  labour  market  situation.  Combating
discrimination  against  ethnic  or  language  minorities  (especially  the  Roma)
through anti-discrimination measures in both the public and private sector.

To implement these priorities, it is essential to ensure the right kind of incentives at
all levels.

3.9. 

Research and development

The  accession  of  the  candidate  countries  to  the  EU  will  coincide  with  the  first
developments  in  the  European  Research  Area  (ERA)26  intended  to  create  the  most
favourable  possible  European  environment  for  developing  research  and  promoting
innovation.  Along  with  this  challenge  goes  a  quantified  objective  for  Europe’s
research policy  fixed at  the  Barcelona  European  Council  in  March  2002:  to  devote
3% of the Union’s GDP to work on research and innovation by 2010.

Enlargement  offers  favourable  prospects  for  the  construction  of  the  ERA  by
facilitating  exchanges  and  the  mobility  of  research  workers  and  increasing
cooperation between research teams in the candidate countries in the main scientific
fields, particularly by associating them with the RTD framework programmes.

However,  despite  their  long  scientific  and  university  tradition,  a  comparison  of  the
research systems in the candidate countries with those in the present Member States
may  pose  risks  of  several  kinds:  movements  of  research  workers  away  from  those
countries  and  the  disappearance  or  weakening  of  large  areas  of  science  because  of
the lack of infrastructure which is appropriate of meets international standards.

The  resources  allocated  to  research  in  most  of  the  candidate  countries  have  fallen
over the last ten years and, with human potential being reduced by successive waves
of the ‘brain drain’, the gap between the most advanced countries in the EU 15 and
most of the candidate countries has grown in terms of the main features of research
capacity such as human potential, the level of public and private investment and so
on. Several factors limit the dynamic of innovation and competitiveness there:

– 

– 

the weakness of technological, legal and financial services at international level
offered to firms;

the lack of capital directed to innovation or the establishment of firms engaged
in technology;

– 

the difficulty of accessing this finance experienced by the smallest firms.

Three priorities for assistance are advocated:

(1)

to support and expand human resources for research:

– 

– 

improved training for research workers;

helping the work of young researchers at the beginning of their careers;

26

Adopted by the Lisbon European Council in March 2000.

12

                                                
– 

– 

– 

encouraging younger people to enter scientific branches of education;

developing  information  networks,  especially  those  based  on  the  ‘Grid’
concept;

encouraging  work  to  promote  the  mobility  of  researchers:  development
and transfer  of  skills  to  and  from  the  candidate  countries  and  improved
career opportunities for research workers;

– 

help to scientists from the candidate countries who wish to return there.

(2)

(3)

to improve  existing infrastructure  and  develop  new  infrastructure  in line with
the needs and economic and social environment of the candidate countries27;

to  promote  interaction  between  education,  vocational  training,  development
economic,  research,  access  to  risk  capital  and  services  for  the  creation  or
development of firms, etc.

The  ‘networking  and  industrial  cooperation’  priority  in  the  1999  guidelines  is  of
particular importance for the present candidate countries.

3.10.  Enterprise and innovation policy

Small and medium-sized firms (SMEs), which have a key role to play in expanding
the economy and increasing employment in the candidate countries, help create jobs
and wealth and increase productivity, particularly in the field of services. However,
such firms still encounter difficulties, mainly as regards access to finance but also as
regards  the  development  of  innovation,  the  transfer  of  technologies,  access  to
information  and  management.  This  means  that  a  culture  more  favourable  to
enterprise and innovation must be developed.

Existing  innovation  policies  are  recent  or  still  lack  dynamism.  In  addition,  strict
budgetary constraints often restrict the scope of measures taken by governments.

This sector requires the development in particular of:

– 

– 

– 

– 

– 

the recommendations of the European Charter for small enterprises28;

measures to provide access to finance (credit guarantees and risk capital);

the protection of intellectual property rights and the restructuring of the patent
offices;

technology transfers and the dissemination of research results;

cooperation  between  research  centres  and  firms  and  associations  of  firms,
banking sectors, educational systems, professional organisations and networks
of firms;

27

28

Priority  must  be  given  to  infrastructure  likely  to  constitute  a  critical  mass  of  resources,  whatever  the
scientific sector concerned, and allow transnational access to those resources.
http://europa.eu.int/comm/enterprise/enterprise_policy/charter/charter_en.pdf

13

                                                
– 

– 

initiatives to improve the environment for firms;

the  simplification  of  administrative  procedures  and  the  reduction  of  costs  for
firms, particularly those which are young and growing quickly;

– 

support services for small firms.

3.11.  The information society

In  the  candidate  countries,  disparities  between  telecommunications  infrastructures
are  substantial  both  as  compared  with  the  EU  average  and  among  the  countries
themselves.  While  the  process  of  modernising  public  networks  for  advanced
communications infrastructure, such as broad-band access, has begun, there are still
great differences in the degrees of modernisation achieved.

Most of these countries will therefore have to make a substantial investment effort to
reach  the  level  of  the  acquis,  which  requires  basic  services  (fixed  lines,  fax  and
narrow-band Internet access) to be available everywhere at a reasonable price.

The  lower purchasing  power  of the  local  economies  and  the  difficulty  of  obtaining
the  investment  required  from  commercial  sources  (unattractive  investments  in  the
short-term) constitute serious risks for the eEurope 2005 action plan.

In this context, structural actions should support:

– 

– 

the development of national and regional Information Society strategies;

investments  aiming  at 

the 
communication services;

the 

implementation  of 

the  acquis 

in 

the

– 

the implementation of the eEurope 2005 Action Plan in these countries .

Assistance in this field will be decided on in the light of the results of a full analysis
and  a  comparative  evaluation  of  national  and  regional  needs.  To  achieve  these
targets,  global 
(infrastructure  and  content
development)  that  will  take  into  consideration  the  European,  national  and  regional
priorities and their appropriate integration into other EU policies will be needed.

Information  Society 

strategies 

Finally, Community aid will be subject to the development of structural reforms that
will  permit  the  application  of  the  directives  in  the  communication  services  sector.
These reforms will need technical assistance.

14