Council Decision on the principles, priorities and conditions contained in the European Partnership with Croatia
Date: 2004-04-20
Institutions: European Commission
Subjects: Croatia, European integration, accession criteria, accession to the European Union

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.4.2004 
COM(2004) 275 final/2 

CORRIGENDUM 
Titre 
Concerne FR/DE/EN 

Proposal for a 

COUNCIL DECISION 

on the principles, priorities and conditions contained in the European Partnership with 
Croatia 

(presented by the Commission) 

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  this  year’s  Annual  Reports  on  the  Stabilisation  and  Association  process 
(SAp).  

The European Partnership for Croatia is based on the provisions of Council Regulation (EC) 
No. 533/2004. It lists short- and medium term priorities for Croatia’s preparations for further 
integration  with  the  European  Union  identified  in  the  Commission’s  Opinion  on  Croatia’s 
application for membership and serves as a checklist against which to measure progress. The 
European Partnership for Croatia reflects its current stage of preparation and is tailored to its 
needs. Croatia is expected to respond to the European Partnership by preparing a plan with a 
timetable  and  details  in  terms  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 
Croatia 

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  Commission's  Opinion  on  Croatia’s  application  for  membership  presents  an 
analysis of Croatia’s preparations for further integration with the European Union and 
identifies a number of priority areas for further work. 

In  order  to  prepare  for  further  integration  with  the  European  Union,  Croatia  should 
develop  a  plan  with  a  timetable  and  details  to  address  the  priorities  of  the  European 
Partnership. 

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  Croatia  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 framework of 
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 for the Western Balkans identifies ways and means of intensifying 
the  Stabilisation  and  Association  process,  inter  alia  through  the  introduction  of  European 
Partnerships. 

Based on the Commission’s Opinion on Croatia’s application for membership, the purpose of 
the  European  Partnership  for  Croatia  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 Croatia’s specific needs and stage of preparation and will be updated as necessary. 
The European Partnership also provides guidance for financial assistance to Croatia. 

It is expected that Croatia will adopt a plan including a timetable and details in terms of how 
it intends 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 and 
the measures on integrated border management presented at the JHA ministerial meeting held 
in Brussels on 28 November 2003 in the framework of the EU-Western Balkans Forum. 

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 Croatia relate to its capacity to meet the criteria set by the 
Copenhagen  European  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  European  Partnership  indicates  the  main  priority  areas  for  Croatia’s  preparations  for 
further  integration  with  the  European  Union,  based  on  the  analysis  in  the  Commission’s 
Opinion  on  Croatia’s  application  for  membership.  The  priorities  listed  in  this  European 
Partnership  have  been  selected  on  the  basis  that  it  is  realistic  to  expect  that  Croatia  can 
complete  them  or  take  them  substantially  forward  over  the  next  few  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. 

It should be recalled that where legislative approximation 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 PRIORITIES 

POLITICAL CRITERIA 

5 

 
 
  
 
DEMOCRACY AND RULE OF LAW 

• 
Strengthen the judicial system. Develop and implement a comprehensive strategy for 
judicial reform in consultation with interested bodies, including the adoption of necessary new 
legislation and the establishment of a career management system which also includes an open, 
fair and transparent system for recruitment, evaluation and mobility. Enhance professionalism 
in the judiciary by ensuring adequate state funding for the training institutions for judges and 
other judicial officials, allowing it to develop high quality training for judges, prosecutors and 
administrative staff. Provide for adequate initial and vocational training schemes. Address the 
problem  of  backlog  in  courts.  Take  measures  to  ensure  proper  and  full  execution  of  court 
rulings. 

is 

tackling  corruption 

implemented  and  enforced.  In  particular  strengthen 

Improve the fight against corruption. Take steps to ensure that the legal framework 
• 
for 
the 
administrative  and  operational  capacity  of  the Office  for  the  Suppression  of  Corruption  and 
Organised Crime (USKOK). Further develop a national strategy for preventing and combating 
corruption,  and  provide  for  the  required  co-ordination  among  the  relevant  government 
departments  and  bodies  as  regards  the  implementation  of  action.  Introduce  codes  of 
conduct/ethics  for  officials  and  elected  representatives.  Take  concrete  actions  to  raise 
awareness of corruption as a serious criminal offence. 

• 
Improve  the  functioning  of  the  public  administration  –  Take  initial  steps  to  ensure 
the  use  of  transparent  procedures  for  recruitment  and  promotion  and  to  improve  human 
resource  management  in  all  bodies  of  the  public  administration  in  order  to  ensure 
accountability, openness and transparency of the public service. 

HUMAN RIGHTS AND PROTECTION OF MINORITIES 

• 
Improve respect for minority rights. Ensure implementation of the Constitutional Law 
on National Minorities. In particular ensure proportional representation of minorities in local 
and  regional  self  government  units,  in  the  state  administration  and  judicial  bodies,  and  in 
bodies  of  the  public  administration  as  regulated  by  the  Law.  Provide  the  necessary  means, 
including  adequate  funding,  to  ensure  proper  functioning  of  elected  Minority  Councils. 
Implement the new strategy for the protection and integration of Roma. 

• 
Speed  up  refugee  return.  Complete  the  processing  of  requests  for  housing 
reconstruction already submitted, by April 2004; reconstruct all houses for which there is a 
positive decision by April 2005; ensure an adequate public awareness campaign for potential 
beneficiaries,  following  the  re-opening  of  the  deadline  for  submission  of  requests  for 
reconstruction from 1 April to 30 September 2004. Complete the repossession of houses by 
June  2004.  Implement  legislation  for  compensation  of  lost  tenancy/occupancy  rights  inside 
and  outside  the  areas  of  special  State  concern.  Create  social  and  economic  conditions  to 
improve the climate for returnees and the acceptance of returnees by receiving communities. 
Enhance regional co-operation for accelerating the process of refugee return. 

Enhance  the  freedom  of  expression  and  ensure  democratic  functioning  of  the 
• 
media. Review the media legislation in line with the recommendations formulated in February 
2004 by the joint expertise mission of the Council of Europe, the European Commission and 
the OSCE. In particular, review the Electronic Media Act in order to establish a transparent, 
predictable and effective regulatory framework (including progressive alignment with the EU 
acquis  through  the  full  implementation  of  the  already  ratified  Convention  of  the  Council  of 
Europe  on  Transfrontier  Television);  ensure  political  and  financial  independence  of  the 

6 

 
 
  
 
Council for Electronic Media; ensure that Croatian Radio and Television and its Programme 
Council work independently and remain stable while the Croatian Radio and Television Act is 
reviewed;  ensure  that  the  review  of  the  Media  Act  and  legislation  concerning  defamation 
reflects European standards as defined in Article 10 of the European Convention on Human 
Rights and the jurisprudence of the European Court of Human Rights. 

Improve  cooperation  with  the  Ombudsman  taking  fully  into  consideration  the 

• 
findings expressed in his recommendations and annual report. 

REGIONAL CO-OPERATION 

• 

Ensure full co-operation with the ICTY. 

• 
Enhance regional co-operation. Work to find definitive solutions to pending bilateral 
issues,  in  particular  border  issues  with  Slovenia,  Serbia  and  Montenegro  and  Bosnia  and 
Herzegovina.  Ensure  implementation  of  all  regional  free  trade  agreements.  Conclude  and 
implement  a  set  of  agreements  with  neighbouring  countries  in  the  fields  of  fight  against 
organised  crime,  border  management  and  readmission.  Start  implementing  the  MoU  on  the 
Development  of  the  South  East  Europe  Core  Regional  Transport  Network  and  in  particular 
take  measures  to  set  up  the  cooperation  mechanisms,  i.a.  the  Steering  Committee  and  the 
South East Europe Transport Observatory (SEETO). Make progress in meeting commitments 
under the 2002 and 2003 Memoranda of the Athens process on the Regional Energy Market in 
South East Europe. 

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

ECONOMIC CRITERIA 

Sustain  prudent,  stability-oriented  macro-economic  policies, 

• 
the 
development of market-based monetary instruments to enhance the effectiveness of monetary 
policy. 

including 

Accelerate enterprise restructuring and privatisation. Remove uncertainties through 
• 
the swift adoption of pending legislation. Accelerate enterprise restructuring and privatisation 
of  socially-owned  enterprises.  Develop  and  adopt  strategies  for  the  restructuring  and 
privatisation  or  liquidation  of  large  public  enterprises,  particularly  in  manufacturing, 
agriculture,  transport,  tourism  and  public  utilities.  Adopt  and  start  implementing  a 
restructuring programme in the steel sector in line with EU requirements. 

• 
Reduce  barriers  to  market  entry  and  exit.  Simplify  the  rules  for  market  entry  and 
market  exit  of  enterprises.  In  particular,  speed  up  registration  procedures  and  improve  the 
implementation of bankruptcy rules. 

Accelerate land reform, and in particular registration and privatisation of agricultural 
• 
land,  through  the  establishment  of  a  modern  and  efficient  cadastre  and  land  registry  to 
eliminate the current obstacles to the development of land and housing markets. 

Adopt  a  medium-term  fiscal  framework  reflecting  continued  fiscal  adjustment  and 

• 
consolidation. 

7 

 
 
  
 
Continue structural reforms in public finance, particularly in the area of expenditure 

• 
management. Establish a transparent and efficient debt management capacity. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

INTERNAL MARKET AND TRADE 

• 
Free movement of goods – Restructure the existing institutional framework in order to 
complete the necessary separation between the regulatory, accreditation, standardisation and 
product certification functions. Continue work on the transposition of old approach and new 
approach directives. 
Abolish  remaining  measures  having  equivalent  effect  to  quantitative  restrictions  on  imports 
from the EU. 
Establish  the  necessary  administrative  structures  to  ensure  a  comprehensive  approach  to 
enhance food safety throughout the entire food chain. 
Ensure that an effective and transparent public procurement regime becomes fully operational 
and adopt the necessary implementing regulations. 

• 
Freedom  to  provide  services  –  Strengthen  the  regulatory  and  administrative 
framework for the supervision of financial services and in particular of the insurance market, 
investment services and securities markets. 
Establish an independent supervisory authority in the area of personal data protection. 

Free movement of capital – Improve anti-money laundering legislation and complete 

• 
the establishment of an effective anti-money laundering system. 

• 
Company  law  –  Continue  legislative  alignment  in  order  to  guarantee  a  level  of 
protection of intellectual, industrial and commercial property rights similar to that existing in 
the Community and strengthen administrative capacity in order to provide effective means of 
enforcing such rights. 

Competition  –  Continue  alignment  with  the  acquis,  enforce  anti-trust  and  State  aid 
• 
legislation  and  adopt  relevant  implementing  regulations.  Strengthen  the  administrative 
capacity and the independence of the Agency for the Protection of Market Competition, both 
in  the  fields  of  State  aid  and  anti-trust.  Improve  transparency  in  the  field  of  State  aid, inter 
alia  by  providing  to  the  European  Community  a  regular  annual  report,  and  establish  a 
comprehensive inventory of State aid schemes. 

Taxation  –  Start  reviewing  the  present  tax  legislation  and  the  administrative 

• 
procedures in order to ensure effective enforcement of tax legislation. 
Strengthen  the  capacity  of  the  tax  and  customs  administrations,  particularly  regarding 
collection  and  control  functions;  create  a  functioning  and  adequately  staffed  excise  duty 
service; simplify procedures to effectively prosecute tax fraud. 
Start developing the necessary IT systems so as to allow for the exchange of electronic data 
with the Community and its Member States. 

• 
Customs  union  –  Strengthen  the  administrative  and  operational  capacity  of  customs 
services, in particular with regard to the control of preferential rules of origin, and continue 
alignment with the EU Customs Code. 
Further  enhance  administrative  co-operation  in  the  customs  sector  in  accordance  with  the 
Interim Agreement. 

8 

 
 
  
 
 
 
External  relations  –  Complete  negotiations  on  the  adaptation  of  the  SAA/Interim 

• 
Agreement to the EU enlargement on 1 May 2004 and properly implement these changes. 

SECTORAL POLICIES 

Agriculture  –  Start  setting  up  a  proper  land  parcel  identification  system  and  animal 
• 
identification  system  in  line  with  the  acquis.  Reinforce  the  collection  and  processing  of 
agricultural statistics in line with EU standards and methodology. 
Develop  a  strategy  to  establish  effective  and  financially  sound  paying  bodies  for  the 
management and control of agricultural funds, in line with EU requirements and international 
auditing standards. 
Reinforce the administrative structures needed to establish a rural development strategy and 
policy  instruments  for  the  design,  implementation,  management,  monitoring,  control  and 
evaluation of rural development programmes. 
Continue  alignment  with  the  acquis  in  the  veterinary  and  phytosanitary  sector,  upgrade 
inspection arrangements, modernise meat and dairy plants in order to meet EU hygiene and 
public  health  standards.  Align  the  import  regime  for  live  animals  and  animal  products  with 
international sanitary and phytosanitary (SPS) obligations and the EU acquis. 

Fisheries – Start establishing adequate administrative and inspection structures for the 
• 
fisheries  policy.  Evaluate  with  the  European  Commission  and  interested  neighbouring 
countries,  in  particular  Slovenia  and  Italy,  the  consequences  of  fishing  activities  in  the 
"Ecological and Fishing Zone", unilaterally declared by Croatia in October 2003, with a view 
to elaborating appropriate solutions to ensure the continuity of Community fishing activities 
in Croatian fishing waters. 

• 
Transport – Continue legislative alignment and strengthen administrative capacity in 
the  aviation  sector.  Negotiate  with  the  Community  on  a  comprehensive  aviation  agreement 
providing reciprocal aviation market access. 

Statistics – Strengthen the administrative capacity of the Croatian Bureau of Statistics 
• 
and improve coordination with other producers of official statistics in Croatia. Submit to the 
Commission a new proposal for statistical regions, in line with EU requirements. 

Telecommunications and information technologies – Strengthen the capacity of the 
• 
national  regulatory  authorities  in  the  fields  of  telecommunications  and  postal  services  and 
ensure their independence. 

Environment  –  Develop  horizontal  legislation,  including  on  environmental  impact 

• 
assessment and public participation. 
Strengthen  the  administrative  capacity  at  national  and  regional  level  to  ensure  planning, 
including preparation of financial strategies. 
Strengthen  the  capacity  of  national  and  regional  inspection  services  and  enable  them  to 
effectively enforce environmental legislation. 
Adopt and start implementing a waste management plan. 

• 
Financial  control  –  Develop  a  policy  for  the  establishment  of  a  Public  Internal 
Financial  Control  (PIFC)  system.  Establish  or  reinforce  public  internal  control  functions 
through  provision  of  adequate  staff,  training  and  equipment,  including  functionally 
independent internal audit units. 
Establish  effective  procedures  for  the  detection,  treatment  and  financial,  administrative  and 
judicial follow-up of irregularities affecting the Communities’ financial interests. 

9 

 
 
  
 
CO-OPERATION IN JUSTICE AND HOME AFFAIRS 

• 
Border  management  –  Strengthen  border  management  reinforcing  in  particular  the 
surveillance  of  the  sea  borders;  adopt  and  implement  an  integrated  border  management 
strategy;  increase  investments  in  technical  equipment  and  infrastructure;  strengthen 
specialised training for border officers. 
In co-ordination with all relevant agencies, implement the measures which were adopted by 
the Government and presented at the meeting of JHA ministers in the framework of the EU-
Western Balkans Forum on 28 November 2003. 

• 
Organised  crime,  drugs,  corruption  and  terrorism  –  Implement  the  action-oriented 
measures  which  were  adopted  by  the  Government  and  presented  at  the  meeting  of  JHA 
ministers in the framework of the EU-Western Balkans Forum on 28 November 2003. 
Improve  co-ordination  between  law  enforcement  bodies  and  the  judiciary,  particularly  in 
connection  with  economic  crime,  organised  crime,  fraud,  money  laundering  and  corruption; 
reinforce the fight against drug trafficking and strengthen drug prevention and drug demand 
reduction;  strengthen  the  administrative  capacity  of  the  Office  for  the  Prevention  of 
Corruption and Organised Crime (USKOK). 
Continue to prepare for the conclusion of a co-operation agreement with Europol. 
Increase  international  co-operation  and  full  implementation  of  the  relevant  international 
conventions relating to terrorism; improve co-operation and exchange of information between 
police  and  intelligence  services  within  the  State  and  with  other  States;  reinforce  the 
prevention of financing of and preparation of acts of terrorism. 

Migration  and  asylum  –  Implement  the  new  asylum  legislation,  including  the 

• 
establishment of a temporary reception centre. 

3.2.  MEDIUM-TERM PRIORITIES 

POLITICAL CRITERIA 

DEMOCRACY AND RULE OF LAW 

Further strengthen the judicial system. Continue implementation of judiciary reform 
• 
and  take  measures  further  to  reduce  the  backlog  of  cases  in  all  courts;  rationalise  the 
organisation of courts including the development of modern information technology systems 
and an adequate level of administrative staff; ensure the regular and effective enforcement of 
court decisions; ensure access to justice and legal aid and make available the corresponding 
budgetary resources; enhance training in EU legislation. 

• 
Further enhance the fight against corruption. Foster further progress in the field of 
the  fight  against  corruption  and  implement  related  legislation.  In  particular,  establish 
specialist  units  for  combating  corruption  within  the  appropriate  services  and  provide  them 
with  adequate  training  and  resources.  Ensure  that  the  standards  set  by  international 
instruments  will  be  met,  by  putting  in  place  the  appropriate  legislative  and  administrative 
measures. 

• 
Further improve the functioning of the public administration. Continue the process 
of  institution  building  directly  relevant  to  the  acquis  and  introduce  reforms  to  improve  the 
effectiveness of the public administration generally. Complete the denationalisation process. 

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

10 

 
 
  
 
• 
Ensure continued respect for minority rights. Continue improving the situation of the 
Roma through strengthened implementation of the relevant strategy, including the provision 
of  the  necessary  financial  support  at  national  and  local  levels,  anti-discrimination  measures 
aimed  at  fostering  employment  opportunities,  increasing  access  to  education  and  improving 
housing conditions. 

• 
Complete the process of refugee return through proper and timely implementation of 
the  relevant  legislation.  Ensure  economic  and  social  reintegration  of  returnees  through 
regional development programmes in affected areas. 

REGIONAL CO-OPERATION 

Further  enhance  regional  co-operation.  With  regard  to  the  Athens  process  on  the 
• 
Regional Energy Market in South East Europe, prepare for the establishment of an integrated 
regional energy market in 2005. 

ECONOMIC CRITERIA 

• 
Further improve conditions for private enterprises. Make substantial progress in the 
privatisation  process  and  continue  efforts  to  improve  the  conditions  for  the  creation  and 
development of private enterprises. Make substantial progress in the area of large enterprise 
restructuring. 

Complete land reform, with particular emphasis on the registration and privatisation 

• 
of agricultural land. 

Continue  labour  market  reform.  Continue  efforts  to  improve  labour  market 

• 
responsiveness and increase labour force participation. 

• 
Continue implementation of a sustainable medium-term fiscal framework through a 
continuous reduction of overall public spending as a share of GDP. Prioritise public spending 
to  free  resources  for  acquis-related  expenditure,  including  reform  of  the  health  care  and 
pension system. Continue to reduce subsidies to large loss-making enterprises. On this basis, 
further reduce the general government deficit and the public sector debt burden. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

INTERNAL MARKET AND TRADE 

Free movement of goods – Make substantial progress in the transposition of old and 

• 
new approach directives and in the adoption of European standards. 
Continue  alignment  of  Croatian  foodstuff 
implementing structures. 
Implement a public procurement regime disposing of all relevant administrative structures and 
make substantial progress in the work towards complete alignment with the acquis. 

legislation  and  strengthen 

the  necessary 

Free  movement  of  persons  –  Continue  alignment  with  the  acquis  on  mutual 
• 
recognition  of  professional  qualifications  and  diplomas,  including  education  and  training 
provisions, further develop the required administrative structures. 
Abolish any discriminatory measures towards EU migrant workers and EU citizens; reinforce 
administrative structures for co-ordination of social security schemes. 

11 

 
 
  
 
 
Freedom  to  provide  services  –  Abolish  the  remaining  barriers  to  establishment  and 

• 
provision of cross-border services by natural or legal persons from the EU.  
Continue alignment of data protection legislation; strengthen and ensure the independence of 
the supervisory authority. 

• 
Free movement of capital – Work towards removing remaining restrictions on capital 
movements;  continue  alignment  of  legislation  on  payment  systems  and  ensure  effective 
implementation. 
Strengthen  the  administrative  capacity  of  the  financial  intelligence  unit  and  improve  its  co-
operation with other institutions involved in the fight against money laundering. 

Company law – Complete alignment in the field of intellectual and industrial property 

• 
rights and strengthen enforcement in the fight against piracy and counterfeiting. 

• 
Competition – Reinforce the anti-trust and State aid authority and build up a credible 
enforcement  record.  Substantially  improve  transparency  in  the  field  of  State  aid.  Develop 
training on competition law and policy at all levels of the administration and the judiciary. 

• 
Taxation  –  Continue  work  towards  completing  alignment  with  the  tax  acquis  as 
regards  VAT  and  excise  duties,  with  particular  attention  to  including  the  free  zones  in  the 
territorial application of VAT and to abolishing the existing VAT zero rates and the sales tax. 
Commit to the principles of the Code of Conduct for business taxation and ensure that new 
tax measures are in conformity with these principles. 
Continue strengthening the tax administration – including the IT sector – and ensure its proper 
functioning  in  order  to  reach  EU  standards  and  IT  systems  interconnectivity.  Develop  and 
implement a Code of Ethics. 

Customs  union  –  Strengthen  and  consolidate  the  administrative  and  operational 
• 
capacity of customs services. Expand training of all staff and increase the use of information 
technologies, the design and use of which should be compatible with EU systems in order to 
secure  interconnectivity.  Develop  and  implement  a  Code  of  Ethics  for  the  customs  service. 
Strengthen auditing and the use of risk assessment and selectivity. 
Pursue  alignment  in  the  areas  of  free  zones, transit,  fees,  tariff  ceilings  and  the  Generalised 
System of Preferences (GSP). 

SECTORAL POLICIES 

• 
Agriculture  –  Strengthen  the  administrative  structures  needed  to  implement  market 
and  rural  development  policies;  establish  a  vineyard  register  in  line  with  EU  standards. 
Continue preparations for the establishment of a fully-functioning administration and control 
system and a paying agency in line with EU requirements.   
Continue  and  substantially  improve  alignment  with  the  acquis  in  the  veterinary  and 
phytosanitary  sectors,  including  a  system  for  animal  identification,  animal  waste  treatment, 
modernisation  of  meat  and  dairy  plants,  animal  disease  control  programmes  and  plant 
protection; significantly upgrade inspection structures. 

• 
Fisheries  –  Continue  the  establishment  of  adequate  administrative  structures  and 
equipment to ensure effective implementation of the fisheries policy, including management 
of  resources,  inspection  and  control  of  fishing  activities,  market  policy,  structural 
programmes,  a  fishing  vessel  register  and  a  management  plan  for  the  fleet  capacity  in 
accordance with available fish resources. 

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• 
Transport – Continue alignment with the acquis and develop adequate administrative 
capacity in the areas of road transport (social, technical and fiscal provisions), rail transport 
(in  particular  interoperability  provisions  and  the  independent  allocation  of  capacity)  and 
maritime transport (in particular in the area of maritime safety). Reach full alignment with the 
acquis in the field of aviation, in the framework of an agreement on Croatian participation in 
the European common aviation market. 

• 
Economic and monetary union – Continue alignment of the legislation governing the 
central  bank.  Improve  monetary  policies  to  expand  the  use  and  effectiveness  of  market-
oriented monetary instruments. 

• 
Social policy and employment – Continue alignment with EU legislation in the fields 
of occupational health and safety, labour law, equal treatment for women and men and anti-
discrimination;  strengthen  related  administrative  structures  and  those  required  for  the  co-
ordination of social security. 
Develop  and  implement  a  comprehensive  employment  strategy  involving  all  relevant  actors 
with  a  view  to  later  participation  in  the  European  Employment  Strategy,  matched  by 
appropriate capacity building for analysis, implementation and assessment. 
Further  develop  the  capacity  of  the  social  partners,  notably  in  bipartite  social  dialogue,  to 
develop and implement the acquis. 
Continue alignment of public health legislation and increase investment in health care. 

• 
Energy  –  Continue  alignment  with  the  acquis  on  the  internal  energy  market 
(electricity and gas), improve energy efficiency, promote renewable energy sources, build up 
oil  stocks  to  ensure  adequate  security  of  supply,  ensure  nuclear  safety  and  radiation 
protection; strengthen administrative capacity in all these areas. 

Small  and  medium-sized  enterprises  –  Continue  implementation  of  the  European 

• 
Charter for Small Enterprises. Further simplify company registration procedures. 

Science and research – Strengthen research and technological development capacity 

• 
in order to ensure successful participation in the Community Framework Programmes. 

Education and training – Step up efforts to create a modern vocational education and 

• 
training system. 

• 
Telecommunications  and  information  technologies  –  Adopt  the  necessary  primary 
and secondary legislation to complete the regulatory framework and introduce competition in 
all fields. Adopt a coherent strategy for the promotion of a knowledge-based economy. 

• 
Regional  policy  and  co-ordination  of  structural  instruments  –  Ensure  a  clear 
distribution of responsibilities and effective inter-ministerial co-ordination in order to develop 
a  comprehensive  and  coherent  strategy  in  the  field  of  regional  development.  Set  up 
partnership  structures  ensuring  close  co-operation  between  relevant  stakeholders  at  national 
and regional level. 
Ensure that the designated managing and paying authorities will progressively build up their 
capacity; design and implement regional  development plans;  enhance financial management 
and control procedures; set up proper monitoring and evaluation systems. 

Environment – Ensure the integration of environmental protection requirements into 
• 
the  definition  and  implementation  of  other  sectoral  policies  with  a  view  to  promoting 
sustainable development; implement horizontal legislation. 

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Continue  work  on  the  transposition  of  the  acquis,  with  particular  emphasis  on  waste 
management, water quality, air quality, nature protection and integrated pollution prevention 
and control. Develop an environmental investment strategy based on estimations of the costs 
of alignment. Increase investments in environmental infrastructure, with particular emphasis 
on waste water collection and treatment, drinking water supply and waste management. 

• 
Consumer  and  Health  Protection  –  Continue  alignment  with  the  acquis  on  safety-
related  measures  and  strengthen  the  administrative  capacity  needed  for  effective  market 
surveillance. 

Financial  control  –  Develop  a  coherent  legislative  framework  and  efficient 

• 
mechanisms for monitoring, controlling and auditing public income and expenditure. 
Develop  effective  mechanisms  for  the  communication  of  irregularities  affecting  the 
Communities’ financial interests to the Commission and establish the necessary co-ordination 
methods. 

CO-OPERATION IN JUSTICE AND HOME AFFAIRS 

Border  management  –  Strengthen  border  control,  develop  national  databases  and 

• 
registers and ensure co-ordination between the relevant services. 

• 
Organised  crime  and  corruption  –  Improve  the  equipment  and  infrastructure  of  the 
police,  including  the  establishment  of  a  computer-based  investigation  system;  strengthen 
cooperation  between  the  police  and  other  law  enforcement  agencies;  reinforce  the  fight 
against  drug  trafficking,  organised  crime, economic  crime  (including  money-laundering  and 
counterfeiting of currencies), fraud and corruption; improve alignment of the related national 
legislation with the acquis in these sectors. 

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  Croatia  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.  

2 OJ L 306, 7.12.2000, p. 1. 

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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  mechanisms  established 
under  the  Stabilisation  and  Association  process  and  notably  the  Annual  Reports  on  the 
Stabilisation and Association process. 

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