Proposal for a Council Decision on the principles, priorities, and conditions contained in the European Partnership with the former Yugoslav Republic of Macedonia {SEC(2004) 373}
Date: 2004-03-30
Institutions: European Commission
Subjects: EU relations, European integration, North Macedonia, cooperation policy, financial aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.3.2004 
COM(2004) 204 final 

Proposal for a 

COUNCIL DECISION 

on the principles, priorities, and conditions contained in the European Partnership with 
the former Yugoslav Republic of Macedonia 

. 

(presented by the Commission) 

{SEC(2004) 373} 

EN 

   EN 

 
 
 
  
 
 
EXPLANATORY MEMORANDUM 

The  Thessaloniki  European  Council  of  19  and  20  June  2003  reiterated  its  determination  to 
fully  and  effectively  support  the  European  perspective  of  the  Western  Balkan  countries  and 
stated that “the Western Balkans countries will become an integral part of the EU, once they 
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the 
Western  Balkans  including  the  annex  “The  Thessaloniki  Agenda  for  the  Western  Balkans: 
moving towards European integration”, which aims at further intensifying relations between 
the  European  Union  and  the  Western  Balkans,  building  also  on  practices  used  in  the 
enlargement  process,  inter  alia  through  the  introduction  of  European  Partnerships.  The 
Commission has been invited to submit the first set of European Partnerships to the Council 
for approval with the next Annual Reports on the Stabilisation and Association process (SAp) 
due end of March 2004.  

The  European  Partnership  for  the  former  Yugoslav  Republic  of  Macedonia  is  based  on  the 
provisions  of  Council  Regulation  (EC)  No.  533/2004.  It  lists  short-  and  medium  term 
priorities for the former Yugoslav Republic of Macedonia preparations for further integration 
with the European Union identified in the Commission’s 2004 Annual Report and serves as a 
checklist  against  which  to  measure  progress.  The  European  Partnership  for  the  former 
Yugoslav Republic of Macedonia reflects its current stage of preparation and is tailored to its 
needs. The former Yugoslav Republic of Macedonia is expected to respond to the European 
Partnership by preparing a plan with a timetable and details of how it intends to address the 
European  Partnership’s  priorities.  The  progress  in  implementing  the  priorities  will  be 
monitored regularly by the Commission, notably in the SAp Annual Reports and through the 
structures set up under the SAp.  

The  European  Partnership  priorities  should  form  the  basis  for  programming  of  the  financial 
resources making up Community assistance, which will continue to be the assistance provided 
for  under  existing  financial  instrument(s),  in  particular  Council  Regulation  (EC)  No 
2666/2000 of 5 December 2000 (CARDS). 

The proposed Council Decision has no financial implications. 

In view of the above, the Commission invites the Council to adopt the attached decision. 

2 

 
 
  
 
Proposal for a 

COUNCIL DECISION 

on the principles, priorities, and conditions contained in the European Partnership with 
the former Yugoslav Republic of Macedonia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  533/2004  on  the  establishment  of  European 
Partnerships in the framework of the Stabilisation and Association process1 and in particular 
to Article 2 thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Thessaloniki  European  Council  of  19  and  20  June  2003  endorsed  the 
“Thessaloniki  Agenda  for 
towards  European 
integration”  where  the  drawing-up  of  European  Partnerships  is  mentioned  as  one  of 
the means to intensify the Stabilisation and Association process; 

the  Western  Balkans:  moving 

Council  Regulation  (EC)  No  533/2004  sets  out  that  the  Council  is  to  decide,  by  a 
qualified majority and following a proposal from the Commission, on the principles, 
priorities and conditions to be contained in the European Partnerships, as well as any 
subsequent adjustments; 

Council Regulation (EC) No 533/2004 states that the follow up of the implementation 
of  the  European  Partnerships  will  be  ensured  through  the  mechanisms  established 
under the Stabilisation and Association process, notably the Annual Reports; 

The  2004  Commission's  Annual  Report  presents  an  analysis  of  the  former  Yugoslav 
Republic of Macedonia’s preparations for further integration into the European Union 
and identifies a number of priority areas for further work; 

In  order  to  prepare  for  further  integration  into  the  European  Union,  the  former 
Yugoslav Republic of Macedonia should develop a plan with a timetable and details in 
terms of measures the former Yugoslav Republic of Macedonia intends to take to this 
end. 

1 OJ L 

3 

 
 
  
 
                                                 
HAS DECIDED AS FOLLOWS:  

Article 1 

In  accordance  with  Article  1  of  Council  Regulation  (EC)  No  533/2004,  the  principles, 
priorities  and  conditions  in  the  European  Partnership  for  the  former  Yugoslav  Republic  of 
Macedonia are set out in the annex hereto, which forms an integral part of this Decision 

The implementation of the European Partnership shall be examined through the mechanisms 
established under the Stabilisation and Association process. 

Article 2 

Article 3 

This  Decision  shall  take  effect  on  the  third  day  following  its  publication  in  the  Official 
Journal of the European Communities. 

Done at Brussels,  

For the Council 
The President 

4 

 
 
  
 
 
 
 
 
ANNEX  

1. 

INTRODUCTION 

The Thessaloniki Agenda identifies ways and means of intensifying the Stabilisation 
and  Association  process, 
introduction  of  European 
Partnerships. 

inter  alia 

through 

the 

Based on the Commission’s Annual Report, the purpose of the European Partnership 
for the former Yugoslav Republic of Macedonia is to identify priorities for action in 
order  to  support  efforts  to  move  closer  to  the  European  Union  within  a  coherent 
framework.  The  priorities  are  adapted  to  the  former  Yugoslav  Republic  of 
Macedonia’s  specific  needs  and  stage  of  preparation  and  will  be  updated  as 
necessary. The European Partnership also provides guidance for financial assistance 
to the former Yugoslav Republic of Macedonia. 

It  is  expected  that  the  former  Yugoslav  Republic  of  Macedonia  will  adopt  a  plan 
including a timetable and details in terms of how they intend to address the European 
Partnership priorities. The plan should also indicate ways to pursue the Thessaloniki 
agenda,  the  priorities  on  fighting  organised  crime  and  corruption  identified  at  the 
2002  London  Conference  and  at  the  Ministerial  meeting  held  in  Brussels  on  28 
November  2003  in  the  framework  of  the  EU-Western  Balkans  Forum  and  the 
measures  presented  by  each  of  the  Western  Balkan  countries  at  the  meeting  of  5 
November  2003  in  Belgrade  as  a  follow-up  to  the  Ohrid  Conference  on  integrated 
border management. 

2. 

PRINCIPLES 

The  Stabilisation  and  Association  process remains  the  framework  for  the  European 
course of the Western Balkan countries, all the way to their future accession. 

The main priorities identified for the former Yugoslav Republic of Macedonia relate 
to  its  capacity  to  meet  the  criteria  set  by  the  Copenhagen  Council  of  1993  and  the 
conditions  set  for  the  Stabilisation  and  Association  process,  notably  the  conditions 
defined by the Council in its Conclusions of 29 April 1997 and 21-22 June 1999, the 
content of the final declaration of the Zagreb Summit of 24 November 2000 and the 
Thessaloniki agenda. 

3. 

PRIORITIES 

The Commission’s Annual Report assesses progress made and notes areas where the 
country needs to increase its efforts. The priorities listed in this European Partnership 
have been selected on the basis that it is realistic to expect that the former Yugoslav 
Republic of Macedonia can complete them or take them substantially  forward  over 
the  next  years.  A  distinction  is  made  between  short-term  priorities,  which  are 
expected  to  be  accomplished  within  one  to  two  years,  and  medium-term  priorities, 
which are expected to be accomplished within three to four years. 

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The European Partnership indicates the main priority areas for the former Yugoslav 
Republic  of  Macedonia’s  preparations  for  further  integration  into  the  European 
Union,  based  on  the  analysis  in  the  2004  Annual  Report.  It  should  be  recalled  that 
where legislation is concerned, incorporation of the acquis into legislation is not in 
itself sufficient; it will also be necessary to prepare for its full implementation. 

3.1. 

Short Term 

POLITICAL SITUATION 

DEMOCRACY AND RULE OF LAW 

•  Ensure the functioning of State institutions in all the territory. 

•  Implement the Ohrid Framework Agreement - Implement the legislation already 
adopted  to  implement  the  Framework  Agreement  (FA).  Adopt  remaining 
legislation required by the FA, in particular adopt and implement the Laws on the 
Territorial Organization, Municipal Finance and the City of Skopje. Achieve rapid 
progress  in  the  implementation  of  the  decentralisation  process  to  allow  proper 
local  elections  as  scheduled,  in  particular  strengthening  the  municipalities’ 
capacity  in  financial  management  and  management  of  transferred  competences 
and assets through training, consultancy and provision of equipment. In parallel, 
strengthen administrative capacities to supervise and facilitate the decentralisation 
process,  including  at  central  level,  in  particular  of  the  Ministry  of  Local  Self-
Government and of the Ministry of Finance in relation to fiscal decentralization as 
well  as  the  line  ministries  in  their  own  areas  of  competence.  Ensure  that 
appropriate budgetary resources are allocated in order to ensure a smooth transfer 
of competencies. Adopt a medium term strategic plan for equitable representation 
of  minorities, 
including  adequate  budgetary  means,  and  ensure  speedy 
implementation.  Take  further  measures  to  ensure  the  implementation  of  the  FA 
provisions  on  the  Use  of  Language  and  on  community  symbols.  Improve  the 
monitoring and evaluation capacity of the central government. Enhance efforts to 
revitalize former crisis areas.  

•  Improve the functioning of the public administration - Implement fully the Law 
on  Civil  Servants.  Further  develop  the  Agency  for  Civil  Servants.  Develop 
appropriate strategic planning and related allocation of resources in all Ministries 
and  at  Governmental  level.  Implement  the  Strategic  Development  Plan  of  the 
General  Secretariat.  Complete  ongoing  functional  analyses  in  all  public  bodies 
and  take  measures  to  implement  their  recommendations,  taking  into  account  the 
decentralisation process. Improve administrative transparency and adopt a law on 
public  access  to  information.  Reform  the  Administrative  Procedures  and 
Administrative Disputes laws in order to strengthen the enforcement of citizens’ 
rights.  Implement  fully  the  2003  Law  on  the  Ombudsman  and  complete  the 
reform  of 
the  Ombudsman’s 
recommendations  are  followed  up.  Encourage  the  development  of  civil  society 
including  social  partners’  organisations  and  their  active  participation  in  the 
decision making processes. 

the  Ombudsman’s  office.  Ensure 

that 

•  Strengthen the judicial system - Prepare a comprehensive reform of the Judiciary. 
Review the current system of selection, appointment and promotion of judges and 
prosecutors  with  a  view  to  ensuring  political  independence,  irremovability  of 

6 

 
 
  
 
judges and career development based upon merit. Prepare necessary constitutional 
and legislative amendments to guarantee the independence of the body in charge 
of their selection and career development. Simplify court procedures. Improve the 
enforcement  of  the  courts’  decisions.  Introduce  alternative  dispute  resolution 
mechanisms  including  arbitration  and  mediation  in  criminal  matters.  Ensure  the 
appropriate  enforcement  of  property  rights  and  court  rulings  in  the  area  of  civil 
law.  Strengthen  the  institutional  capacity  to  train  judges  and  prosecutors  and 
prepare the setting-up of a National School for Magistrates. Provide for adequate 
initial and vocational training schemes. 

•  Improve  the  fight  against  corruption  -  Implement  the  strategy  for  the  fight 
against  corruption.  Increase  institutional  capacity  to  investigate  and  prosecute 
corruption.  Improve  coordination  and  ensure  cooperation  between  the  law 
enforcement agencies and the State Commission on the Prevention of Corruption. 
Improve exchange of intelligence on corruption-related cases between the services 
in  charge  of  identifying,  investigating  and  prosecuting  established  cases. 
Strengthen  and  implement  the  rules  applying  to  officials’  declaration  of  assets, 
conflict of interest, transparency in public procurement and internal and external 
control  of  the  administration.  Adopt  appropriate  legislation  on  financing  of 
political parties.  

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

•  Improve  the  respect  of  human  rights  by  law  enforcement  bodies  -  Ensure  full 
compliance with the European Convention on Human Rights, the Convention for 
the Prevention of Torture and Inhuman and Degrading Treatment or Punishment 
and  other  relevant  international  conventions.  Implement  the  Code  of  Ethics  and 
ensure  that  irregularities  are  prosecuted.  Deal  with  previous  mistreatment  cases 
through  appropriate  prosecutions.  Upgrade  internal  controls  and  enforcement  of 
professional  standards  in  all  law  enforcement  agencies  and  judiciary  and  prison 
administrations.  Respect  pre-trial  detention  rules.  Promote  police,  judges, 
prosecutors  and  other  law  enforcement  bodies  awareness  of  their  obligations  in 
terms of human rights, and ensure that they implement them in accordance with 
international requirements.  

•  Promote  freedom  of  expression  and  media  -  Review  the  legal  framework  for 
broadcasting  to  prevent  political  interference.  Take  concrete  steps  to  ensure  the 
independence of media regulatory bodies. Review the legislation on defamation to 
reflect European standards and the jurisprudence of the European Court of Human 
Rights.  

•  Ensure respect of minority rights - Ensure that the process of establishing a third 
State  University  in  Tetovo  is  completed  in  a  way  that  creates  synergy  with  the 
South East European University and provides for academic standards in line with 
the Bologna declaration. 

REGIONAL COOPERATION AND INTERNATIONAL COOPERATION 

•  Promote  regional  cooperation  -  Comply  with  the  Stabilisation  and  Association 
process  requirements  and  Thessaloniki  commitments  in  terms  of  regional 
cooperation. Ensure implementation of all regional free trade agreements. Pursue 
the  conclusion  of  agreements  with  neighbouring  countries,  including  on  cross 

7 

 
 
  
 
border  cooperation  as  regards  the  fight  against  organised  crime,  trafficking  and 
smuggling,  judicial  co-operation,  border  management,  environment  and  energy, 
and ensure their effective implementation.  

•  Ensure proper implementation of the Stabilisation and Association Agreement 
in the field of regional co-operation - Conclude negotiations with Croatia on the 
bilateral convention on regional cooperation. 

•  Adopt  an  appropriate  legal  framework  on  cooperation  with  the  International 

Criminal Tribunal for the former Yugoslavia. 

•  Implement  international  agreements  concluded  by  the  former  Yugoslav 
Republic  of  Macedonia  -  Guarantee  the  respect  of  commitments  undertaken  by 
the former Yugoslav Republic of Macedonia in the framework of its relations with 
the EU. 

ECONOMIC SITUATION 

FREE MARKET ECONOMY AND STRUCTURAL REFORMS 

•  Sustain macroeconomic stability - Maintain a stable macroeconomic framework 
in  the  context  of  the  International  Monetary  Fund  programme.  Conclude  an 
agreement on a follow-up programme. 

•  Pursue  economic  reforms  -  Introduce  comprehensive  market-oriented  reforms 
aimed  at  reducing  the  role  of  the  State  in  the  economy,  and  establish  a  level 
playing  field  for  all  economic  actors  allowing  them  to  operate  in  a  stable  and 
predictable  environment.  Clarify  and  enforce  property  rights,  including  in  the 
context of privatisation. 

•  Improve  the  business  environment  -  Adopt  and  implement  an  improved  legal 
framework  on  company  law.  Upgrade  the  efficiency  of  the  administrative  and 
judicial system and streamline the efficiency of bankruptcy procedures. Develop a 
programme  to  simplify  and  reduce  licensing  procedures  and  improve  the 
transparency of all administrative procedures impacting on enterprises .  

•  Employment  policy  -  Develop  and  implement  a  comprehensive  strategy  to 
promote  employment  and  reduce  unemployment,  in  particular  with  regard  to 
vocational  training  and  labour  market  reforms,  involving  all  relevant  actors. 
Respect  core  labour  standards  and  ensure  their  effective  enforcement  (including 
freedom  of  association  and  right  to  collective  bargaining,  non-discrimination  in 
employment and occupation).  

MANAGEMENT OF PUBLIC FINANCES 

•  Improve  public  finance  management  -  Implement  fiscal  decentralisation. 
Implement  the  wage  decompression  of  civil  service  salary  structure.  Strengthen 
internal control and audit capacity in the Ministry of Finance and broaden controls 
applied to the public administration as a whole. Review the Law on State Audit to 
align it to EU standards and strengthen the State Audit Office as an independent 
State institution with an independent budget. Exert greater control and supervision 

8 

 
 
  
 
of expenditure of extra-budgetary funds. Establish an effective Treasury Bill and 
Bond market. 

EUROPEAN STANDARDS  

INTERNAL MARKET AND TRADE 

•  Complete negotiations with the EU on a Protocol to the SAA to adapt it to the 

upcoming EU enlargement before 1 May 2004. 

•  Movement  of  goods  -  Make  further  progress  on  adopting  European  technical 
norms  and  standards.  Implement  the  2002  legislation  on  standards  certification, 
metrology  and  conformity  assessment,  including  the  adoption  of  secondary 
legislation and the strengthening of administrative capacity to ensure enforcement. 
Progress with regard to the utilisation of the Combined Nomenclature. 

•  Financial services - Improve prudential regulatory framework and supervision of 

this sector. 

•  Personal data protection - Amend the legislation on protection of personal data in 
line  with  EU  standards  and  set  up  an  independent  authority  charged  with  the 
supervision of its implementation. 

•  Customs  –  Achieve  significant  results  in  the  fight  against  fraud,  smuggling  and 
trafficking  Further  strengthen  the  customs  administration  and  ensure  its  proper 
functioning in order to reach EU standards. Carry forward the reform process and 
ensure the proper implementation of the Strategic Plan 2004-2008. In particular, 
ensure the proper operation of the new Professional Standards Unit and prosecute 
corruption  cases  within 
the  customs  Service.  Strengthen  administrative 
cooperation  in  the  customs  sector.  Strengthen  the  services  involved  in  the 
implementation of trade agreements and in particular with regard to the control of 
preferential rules of origin. 

•  Taxation  –  Start  reviewing  the  present  tax  legislation  and  the  administrative 
procedures in order to ensure effective and non-discriminatory enforcement of tax 
legislation. Eliminate the present different excise duty rates for tobacco products 
based on the origin of the goods (domestic or imported). Proceed with the ongoing 
reform of the tax administration, and in particular strengthen its capacity at local 
level  for  collection  and  control  of  the  tax  due.  Address  the  problem  of  the 
increasing level of VAT refund arrears. Commit to the principles of the Code of 
Conduct for business taxation and ensure that new tax measures are in conformity 
with these principles. 

•  Competition  and  state  aids  -  Adopt  legislation  against  the  restriction  of 
competition.  Entrust  the  competition  authority  with  efficient  means  to  directly 
enforce  the  law  and  impose  sanctions.  Promote  transparency  and  basic 
enforcement of the State aid principles. Promote competition policy by fostering 
liberalisation, improving public procurement practices, ensuring a pro-competitive 
approach to privatisation. Adopt secondary legislation on state aids and strengthen 
the administrative capacity to implement the legal framework. 

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•  Public  procurement  -  Improve 

legal  framework  on  public 
procurement  in  line  with  the  EC  acquis  and  set  up  an  Agency  for  Public 
Procurement able to ensure the implementation of the legal framework. 

the  current 

•  Intellectual,  Industrial  and  Commercial  Property  rights  -  Adopt  secondary 
legislation  relating  to  the  Law  on  Industrial  Property  and  implement  the  law. 
Continue improvement of legislation Copyright and Related Rights. 

SECTORAL POLICIES 

•  Industry and SMEs - Adopt the restructuring and conversion programme for the 
steel industry in line with the competition related EC acquis to create efficient and 
competitive  firms.  Implement  the  principles  of  the  European  Charter  for  Small 
Enterprises  and  implement  targets  set  for  2004.  Improve  access  of  Small  and 
Medium  sized  Enterprises  to  financial  and  non-financial  services.  Continue 
preparation of a national guarantee fund. 

•  Energy – Develop the newly-established Energy Regulatory Commission in order 
to meet EU guidelines and avoid a monopolistic situation emerging in the energy 
sector.  Amend  the  Energy  Law  establishing  the  Transmission  System  Operator 
and addressing the Public Service Obligations.  

•  Telecommunication  –  Ensure  that  the  electronic  communications  sector  is 
liberalised  effectively  including  the  strengthening  of  regulatory  bodies  and  the 
adoption of suitable laws and policies for the sector.  

•  Environment  -  Adopt  Laws  on  environment,  waste  management,  water 
management,  protection  of  natural  resources  and  air  quality  in  line  with  EU 
standards. 

COOPERATION IN JUSTICE AND HOME AFFAIRS 

•  Border management - As a follow-up to the Ohrid regional Conference on border 
security and management in May 2003, implement the short term measures which 
were adopted by the Government and presented at the meeting of JHA ministers 
within the framework of the EU-Western Balkans Forum on 28 November 2003. 
Implement the Integrated Border Management strategy adopted in December 2003 
in  cooperation  between  the  agencies  concerned.  Strengthen  the  coordination 
between  the  Ministry  of  Interior  and  the  Ministry  of  Defence  to  facilitate  the 
transfer  of  competences  on  border  control  to  the  border  police,  and  ensure  the 
institutional development of border police service.  

•  Migration and asylum policies - Implement the 2003 Law on Asylum. Establish 
an  independent  and  transparent  appeal  and  review  panel  for  asylum  seekers. 
Adopt appropriate by-laws for the implementation and development of reception 
policies  and  facilities.  Revise  the  migration  legislation,  in  particular  review  the 
legislation  related  to  legal  and  illegal  immigration  and  trafficking  in  human 
beings.  Establish  a  common  strategy  to  fight  illegal  immigration  and  the 
trafficking of human beings, integrating the regional dimension. Adopt a new Law 
on Foreigners. 

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•  Police  -  Ensure  that  the  police  services,  in  particular  the  special  police  forces, 
behave  according  to  international  standards  and  practices.  Clarify  the  respective 
roles of the Ministry of Interior and the Ministry of Defence in crisis management 
situations  in  line  with  European  practices.  Adopt  and  implement  an  Action  Plan 
for the reform of the police, taking into consideration equitable representation at 
all  levels,  and  plan  the  necessary  resources  for  its  implementation.  Take  urgent 
measures to reform human resources management. Improve co-operation with the 
Judiciary.  Enhance  training  capacities  and  ensure  the  proper  functioning  of  the 
Police Academy, including the proper allocation of budgetary resources. Reduce 
corruption and irregular behaviour within police ranks. Promote cooperation with 
Interpol  and  other  international  law  enforcement  organisation,  in  particular 
through improved consultation of their databases.  

•  Organised  crime,  trafficking,  drugs,  money  laundering  and  terrorism  - 
Implement  the  action-oriented  measures  that  have  been  adopted  by  the 
Government  and  presented  at  the  EU-WB  JHA  ministerial  meeting  of  28 
November  2003.  Complete  the  ratification  of  the  2002  UN  Convention  on 
Organised  Crime  and  its  related  protocols  on  small  arms,  trafficking  in  human 
beings  and  smuggling  of  migrants,  and  ensure  implementation.  Enhance  co-
ordination between law-enforcement bodies involved in fighting organised crime. 
Enhance  intelligence  and  risk  analysis  and  set  up  a  central  criminal  intelligence 
unit,  working  in  cooperation  with  all  law  enforcement  agencies.  Adopt  the 
legislative  changes  needed  to  allow  for  the  use  of  special  investigative  means. 
Develop  witness  protection  programmes.  Increase  capacity  to  fight  against  drug 
trafficking. Develop a national drugs strategy in line with the EU Drugs Strategy 
and Action Plan on Drugs. Clarify the respective roles of the Directorate against 
Money Laundering (DML) and of the Financial Police and upgrade the DML to 
the level of a financial intelligence unit in line with European standards. Take the 
necessary  steps  to  prepare  for  the  conclusion  of  an  agreement  with  Europol. 
Increase 
international 
conventions  on  terrorism.  Improve  cooperation  and  exchange  of  information 
between  police  and  intelligence  services  within  the  State  and  with  other  states. 
Prevent the financing and preparation of acts of terrorism.  

international  cooperation  and 

implement 

relevant 

3.2.  Medium Term 

POLITICAL SITUATION  

DEMOCRACY AND THE RULE OF LAW 

•  Implement the Ohrid Framework Agreement - Implement the strategic plan for 
equitable  representation  of  minorities.  Ensure  the  proper  functioning  of  the 
decentralised  levels  of  government.  Sustain  efforts  in  revitalizing  former  crisis 
areas.  

•  Further  improve  the  functioning  of  the  administration  -  Further  promote 
independence  of  the  administration,  transparency  in  recruitment  procedures  and 
career development based on merit, professionalism and equitable representation 
of all communities. Pursue the reform of the public administration, in particular in 
view of the outcome of the “functional” analysis. Further develop the capacity of 
Ministries  to  perform  a  range  of  common  functions  needed  to  support  the 
coordinating  role  for  the  General  Secretariat  and  other  central  agencies  (policy 

11 

 
 
  
 
development,  strategic  planning,  financial  management,  personnel  management, 
information technology). Ensure that the sectors in the Administration responsible 
for the implementation of the SAA provisions are duly equipped to carry out their 
duties.  Further  encourage  the  development  of  civil  society  including  social 
partners organisations and their participation in the decision making process.  

•  Further  strengthen  the  judicial  system  -  Implement  a  comprehensive  reform  of 
the judicial system, including the necessary changes in the Constitution and in the 
legal  framework,  and  strengthen  the  overall  capacity  of  the  judicial  system. 
Ensure the effective functioning of the National School for Magistrates. Enhance 
training  on  EU  legislation,  cross-border  cooperation  in  criminal  matters  and 
practices.  Decrease  the  backlog  of  cases  in  all  courts.  Ensure  provision  of 
appropriate  equipment  and  well-trained  and  specialised  administrative  staff  with 
the  appropriate  status.  Ensure  sufficient  budgetary  resources  to  guarantee  access 
to justice and legal aid. Increase salaries.  

•  Further  improve  the  fight  against  corruption  -  Achieve  significant,  tangible 
results  in  the  fight  against  corruption,  at  all  levels,  through  adequate  legislation 
and the proper implementation of the national programme against corruption. 

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES  

•  Ensure the respect of human rights by law enforcement bodies - Ensure that the 
police,  judges,  prosecutors  and  other  law  enforcement  bodies  are  fully  aware  of 
their  obligations  and  that  they  are  implemented.  Ensure  that  human  dignity  is 
respected in detention centres and prisons.  

•  Further promote freedom of expression and media - Ensure that the laws in the 
media  sector  are  in  line  with  the  European  standards  and  are  properly 
implemented.  

•  Further promote the principle of non-discrimination and equal representation -
Foster employment opportunities for all ethnic communities and facilitate access 
to  education.  Promote  higher  education  for  minorities  and  ensure  that  higher 
education  in  Albanian  respects  European  standards  as  defined  in  the  Bologna 
declaration. 

REGIONAL AND INTERNATIONAL CO-OPERATION 

•  Further  promote  regional  cooperation  -  Maintain  a  constructive  and  balanced 
regional  policy  which  promotes  dialogue,  stability,  good  neighbourhood  and  co-
operation.  Implement  the  Memorandum  of  Understanding  of  the  South  East 
Europe  (SEE)  Core  Regional  Transport  Network.  Implement  the  commitments 
undertaken in the framework of the 2003 Athens Memorandum of Understanding 
on the Regional Energy Market in SEE, and prepare for the establishment of the 
Integrated Regional Energy Market. 

•  Implement  international  agreements  concluded  by  the  former  Yugoslav 
Republic  of  Macedonia  -  Fully  implement  international  agreements  and 
conventions ratified by the former Yugoslav Republic of Macedonia, in particular 
conventions in the fields of Justice and Home Affairs, human and minority rights 
and trade. 

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ECONOMIC SITUATION 

FREE MARKET ECONOMY AND STRUCTURAL REFORMS 

•  Ensure sustainability of economic reforms  

•  Further improve the business environment – Ensure effective implementation of 
main  international  and  EC  standards  on  company  law,  accounting  and  auditing. 
Further  upgrade  the  efficiency  of  the  administrative  and  judicial  system,  fully 
implement the programme to simplify and reduce licensing procedures and further 
improve 
impacting  on 
transparency  of  all  administrative  procedures 
enterprises. Ensure the enforcement of creditors’ rights within a transparent legal 
framework and through reforming the cadastre. Promote the implementation of a 
code on corporate governance. 

the 

•  Employment  and  social  policy  -  Develop  a  social  policy  to  promote  social 
cohesion,  effective  social  protection  systems,  improve  social  standards  and 
address  poverty  and  social  exclusion.  Further  develop  an  employment  policy, 
involving all relevant actors.  

MANAGEMENT OF PUBLIC FINANCES 

•  Further  improve  public  finances  and  their  management  -  Enhance  public 
internal  and  external  financial  control.  Remove  the  main  obstacles  for  the 
development of the second pillar of the pension system, in particular the financing 
of the transition from a solidarity system to a mandatory accumulation system.  

•  Fraud - Establish effective procedures for the detection, treatment and follow-up 
of  cases  of  (suspected)  fraud  and  other  irregularities  affecting  national  and 
international funds. 

EUROPEAN STANDARDS  

INTERNAL MARKET AND TRADE 

•  Movement  of  goods  -  Reinforce  the  Government’s  capacity  to  implement  the 
SAA,  in  particular  through  developing  internal  expertise  to  assess  whether  draft 
legislation is in line with the EC acquis.  

•  Financial  services  –  Ensure  effective  implementation  of  independent  and  well-
trained  supervisory  authorities  in  accordance  with  internationally  recognised 
standards 

•  Personal  data  protection  -  Continue  institutional  strengthening  of  the  data 

protection authority in line with EU standards and practices. 

•  Customs  -  Further  strengthen  the  Customs  Administration  and  ensure  its  proper 
functioning  in  order  to  reach  EU  standards.  Implement  the  Strategic  Plan  2004-
2008. .  

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•  Taxation  –  Continue  strengthening  the  tax  administration,  in  particular  tax 
collection  and  control,  and  ensure  its  proper  functioning  in  order  to  reach  EU 
standards. Develop an audit strategy and adequate IT systems. 

•  Competition  and  state  aid  -  Implement  the  legislation  against  the  restriction  of 
competition. Further strengthen the competition authority by giving the power to 
enforce  the  law  and  pronounce  sanctions.  Further  promote  transparency  in  State 
aid.  

•  Public  procurement  -  Achieve  fully  operational  public  procurement  structures 
which  ensure  the  conduct  of  public  procurement  procedures  in  full  accordance 
with the law and SAA principles.  

•  Intellectual  Property  Rights  -  Ensure  the  implementation  of  the  legislation  on 

intellectual and industrial property. 

SECTORAL POLICIES 

•  Industry and SMEs - Implement the restructuring and conversion programme for 
the  steel  industry.  Complete  the  implementation  of  the  strategy  for  the 
implementation  of  the  European  Charter  for  Small  Enterprises.  Promote  SMEs’ 
access  to  credit  facilities.  Further  develop  experience  of  non-financial  SME 
support  mechanisms  (i.e.  clusters  and  technology  parks).  Implement  the  FIAS 
action plan on reduction of barriers to investment. 

•  Telecommunication  –  Transpose  and  implement    the  new  EU  framework  for 

electronic communications.  

•  Agriculture - Adopt and implement structural reforms in the field of agriculture. 
Adopt  and  implement  comprehensive  reform  including  border  and  internal 
inspection  services  and  practices  regarding  plant  and  animal  health,  policy 
analysis, sector information systems and statistics and co-ordination functions for 
existing public- and private-sector institutions and services.  

•  Environment  –  Further  approximate  legislation  with  European  standards. 
Implement the legislation adopted. Improve environmental monitoring and further 
build  administrative  capacity.  Integrate  environmental  concerns  in  various 
policies,  in  particular  through  developing  Environmental  Impact  Assessments  in 
line with European standards. 

CO-OPERATION IN JUSTICE AND HOME AFFAIRS 

•  Border  management  -  Complete  the  implementation  of  the  Integrated  Border 

Management strategy in cooperation between the competent agencies.  

•  Migration and Asylum policies - Strengthen the development of national asylum 
structures  in  line  with  international  and  European  standards  to  enable  them  to 
provide  appropriate  protection  and  assistance  to  asylum  seekers  and  refugees. 
Implement  the  strategy  to  fight  illegal  immigration  and  trafficking  of  human 
beings. 

14 

 
 
  
 
•  Police  -  Complete  the  implementation  of  the  reform  of  the  police.  Enhance 
training  to  fight  new  forms  of  criminality,  including  computer  and  trans-border 
crime. Further improve police information systems. 

•  Organised crime, trafficking, drugs, and money laundering - Achieve significant 
results in the fight against organised criminality. Ensure the implementation of the 
UN instruments against organised crime. Further improve the State’s capacity to 
prevent  and  combat  crime,  through  coordination  between  law  enforcement 
agencies and with the judiciary, increased analytical capacity to deal with criminal 
intelligence and further training in new forms of criminality. Decrease the number 
of illicit small arms and light weapons. Ensure the full operation of the financial 
intelligence  unit  in  line  with  European  standards.  Implement  the  national  drugs 
strategy.  Reinforce  the  fight  against  economic  and  financial  crime  (including 
money-laundering and counterfeiting of currencies) and fraud as well as improve 
the related national legislation. 

4. 

PROGRAMMING 

Community assistance under the Stabilisation and Association process to the Western Balkan 
countries will be provided by the relevant financial instruments, and in particular by Council 
Regulation  (EC)  No  2666/20002;  accordingly,  this  Decision  will  have  no  financial 
implications.  In  addition  the  former  Yugoslav  Republic  of  Macedonia  will  have  access  to 
funding from multi-country and horizontal programmes. The Commission is working with the 
European  Investment  Bank  and  the  International  Financial  Institutions,  in  particular  the 
European  Bank  for  Reconstruction  and  Development  and  the  World  Bank,  with  a  view  to 
facilitate the co-financing of projects relating to the Stabilisation and Association process. 

5. 

CONDITIONALITY 

Community assistance under the Stabilisation and Association process to the Western Balkan 
countries is conditional on further progress in satisfying the Copenhagen political criteria and 
in particular progress in meeting the specific priorities of this European Partnership. Failure to 
respect  these  general  conditions  could  lead  the Council  to  take  appropriate  measures  on  the 
basis of Article 5 of Council Regulation (EC) No 2666/2000.  

Community  assistance  shall  also  be  subject  to  the  conditions  defined  by  the  Council  in  its 
Conclusions  of  29  April  1997  and  21-22  June  1999,  in  particular  as  regards  the  recipients’ 
undertaking to carry out democratic, economic and institutional reforms. 

6. 

MONITORING 

The  follow  up  of  the  European  Partnership  is  ensured  through  the  framework  of  the 
mechanisms established under the Stabilisation and Association process, notably the Annual 
Report on the Stabilisation and Association process. 

2 OJ L 306, 7.12.2000, p.1. 

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