Communication from the Commission - European Neighbourhood Policy - Strategy paper {SEC(2004) 564, 565, 566, 567, 568, 569, 570}
Date: 2004-05-12
Institutions: European Commission
Subjects: common foreign and security policy, cooperation policy, enlargement of the Union, foreign policy, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.5.2004 
COM(2004) 373 final 

COMMUNICATION FROM THE COMMISSION 

European Neighbourhood Policy 

STRATEGY PAPER 

{SEC(2004) 564, 565, 566, 567, 568, 569, 570} 

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INTRODUCTION AND SUMMARY 

With  its  historic  enlargement  earlier  this  month,  the  European  Union  has  taken  a  big  step 
forward in promoting security and prosperity on the European continent. EU enlargement also 
means  that  the  external  borders  of  the  Union  have  changed.  We  have  acquired  new 
neighbours  and  have  come  closer  to  old  ones.  These  circumstances  have  created  both 
opportunities and challenges. The European Neighbourhood Policy is a response to this new 
situation.  It  will  also  support  efforts  to  realise  the  objectives  of  the  European  Security 
Strategy. 

the  Commission  presented 

In  March  2003 
its  Communication  “Wider  Europe  – 
Neighbourhood: A new Framework for relations with our Eastern and Southern Neighbours”1, 
following  a  joint  letter  to  the  Council  by  the  High  Representative  Mr  Javier  Solana  and 
Commissioner Patten in August 2002. 

In June 2003 the Council welcomed this Communication as a good basis for developing a new 
range of policies towards these countries, defined overall goals and principles and identified 
possible  incentives.  The  Thessaloniki  European  Council  in  June  2003  endorsed  the  Council 
conclusions and looked forward to the work to be undertaken by the Council and Commission 
in putting together the various elements of these policies. 

In  July  2003  the  Commission  tabled  a  Communication  “Paving  the  Way  for  a  New 
Neighbourhood Instrument”2 and established a Wider Europe Task Force and a Wider Europe 
Inter-Service  Group.  In  October  2003,  the  Council  “invited  the  Commission  with  the 
contribution,  where  appropriate,  of  the  High  Representative  to  present  in  the  light  of  the 
conclusions of June detailed proposals for the relevant action plans early in 2004 in order to 
take this matter forward by June 2004.”. The Council also welcomed the communication on 
the  new  neighbourhood  instrument.  The  European  Council  of  October  2003  welcomed  the 
progress made on this initiative and urged the Council and the Commission to take it forward, 
with a view to ensuring a comprehensive, balanced and proportionate approach, including a 
financial instrument.  

On  this  basis  the  Commission  has  made  a  detailed  analysis  of  the  elements  which  could  be 
included in this initiative, both with respect to substance and procedure. The Commission has 
made  two  oral  progress  reports  to  the  Council,  in  October  2003  and  February  2004,  and 
contributed  to  detailed  discussions  in  the  Permanent  Representatives  Committee  and  the 
relevant  Council  working  groups,  concerning  the  possible  elements  to  be  included  in 
European Neighbourhood Policy (ENP) Actions Plans with a number of countries in Eastern 
Europe  and  the  Mediterranean  region.  The  parts  of  these  Action  Plans  related  to  enhanced 
political co-operation and the Common Foreign and Security Policy have been worked on and 
agreed jointly by the services of the Commission and the High Representative 

The Commission has held exploratory talks with partners in Eastern Europe and the Southern 
Mediterranean3  which  have  Partnership  and  Cooperation  Agreements  or  Association 
Agreements in force. These talks have confirmed their interest in ENP and ascertained their 

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COM(2003) 104 final, 11.3.2003. 
COM(2003) 393 final, 1.7.2003. 
Israel, Jordan, Moldova, Morocco, Palestinian Authority, Tunisia and Ukraine. 

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views  on  the  priorities  to  be  addressed  in  Action  Plans.  The  intention  is  progressively  to 
extend the process to other countries, which are at present within the scope of this initiative, 
as their agreements advance from the signature to the ratification stage.  

At  the  same  time  the  Commission  has  made  an  evaluation  of  the  present  situation  in  these 
countries, with respect to their political and economic systems and their co-operation with the 
European Union. The present Communication is designed to convey, to the Council and the 
European  Parliament,  the  results  of  this  work  and  to  map  out  the  next  steps  in  carrying 
forward the European Neighbourhood Policy. 

Since  this  policy  was  launched,  the  EU  has  emphasised  that  it  offers  a  means  to  reinforce 
relations  between  the  EU  and  partner  countries,  which  is  distinct  from  the  possibilities 
available  to  European  countries  under  Article  49  of  the  Treaty  on  European  Union.  The 
objective of the ENP is to share the benefits of the EU’s 2004 enlargement with neighbouring 
countries in strengthening stability, security and well-being for all concerned. It is designed to 
prevent the emergence of new dividing lines between the enlarged EU and its neighbours and 
to  offer  them  the  chance  to  participate  in  various  EU  activities,  through  greater  political, 
security, economic and cultural co-operation.  

The method proposed is, together with partner countries, to define a set of priorities, whose 
fulfilment will bring them closer to the European Union. These priorities will be incorporated 
in  jointly  agreed  Action  Plans,  covering  a  number  of  key  areas  for  specific  action:  political 
dialogue and reform; trade and measures preparing partners for gradually obtaining a stake in 
the  EU’s  Internal  Market;  justice  and  home  affairs;  energy,  transport,  information  society, 
environment and research and innovation; and social policy and people-to-people contacts.  

The  privileged  relationship  with  neighbours  will  build  on  mutual  commitment  to  common 
values principally within the fields of the rule of law, good governance, the respect for human 
rights,  including  minority  rights,  the  promotion  of  good  neighbourly  relations,  and  the 
principles of market economy and sustainable development. Commitments will also be sought 
to  certain  essential  aspects  of  the  EU’s  external  action,  including,  in  particular,  the  fight 
against terrorism and the proliferation of weapons of mass destruction, as well as abidance by 
international law and efforts to achieve conflict resolution.  

The  Action  Plans  will  draw  on  a  common  set  of  principles  but  will  be  differentiated, 
reflecting the existing state of relations with each country, its needs and capacities, as well as 
common  interests.  The  level  of  ambition  of  the  EU’s  relationships  with  its  neighbours  will 
take into account the extent to which these values are effectively shared.  

Progress  in  meeting  the  agreed  priorities  will  be  monitored  in  the  bodies  established  by  the 
Partnership  and  Cooperation  Agreements  or  Association  Agreements.  The  Commission  will 
report periodically on progress accomplished. On the basis of this evaluation, the EU, together 
with  partner  countries,  will  review  the  content  of  the  Action  Plans  and  decide  on  their 
adaptation  and  renewal.  Decisions  may  also  be  taken,  on  this  basis,  on  the  next  step  in  the 
development  of  bilateral  relations,  including  the  possibility  of  new  contractual  links.  These 
could take the form of European Neighbourhood Agreements whose scope would be defined 
in the light of progress in meeting the priorities set out in the Action Plans. 

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The Action Plans will be put forward by the Commission, with the contribution of the High 
Representative on issues related to political co-operation and the CFSP, following exploratory 
talks  with  the  countries  concerned.  It  is  suggested  that  they  be  approved  by  the  respective 
Cooperation or Association Councils. If any of the Actions proposed imply the need for legal 
acts  or  formal  negotiations,  the  Commission  will  put  forward  the  necessary  proposals  or 
recommendations. 

The Action Plans will provide a point of reference for the programming of assistance to the 
countries concerned. Assistance from existing sources will be complemented in the future by 
support  from  the  European  Neighbourhood  Instrument.  The  present  communication  puts 
forward  for  discussion  an  outline  of  this  instrument,  building  on  the  Commission’s 
communication  of  July  2003.  Meanwhile  Neighbourhood  Programmes  are  being  developed 
through existing support mechanisms. The Commission seeks to offer neighbouring countries 
additional  support  through  instruments  such  as  technical  assistance  and  twinning.  It  is  also 
conducting a survey of EU programmes and agencies where the participation of neighbouring 
countries may be in the interests of the enlarged EU and of neighbouring countries. 

Russia is a key partner of the EU in its immediate neighbourhood. Together, Russia and the 
EU  have  decided  to  develop  further  their  strategic  partnership  through  the  creation  of  four 
common spaces, as defined at the St Petersburg summit in May 2003.  

Belarus and the EU will be able to develop contractual links when Belarus has established a 
democratic form of government, following free and fair elections. It will then be possible to 
extend the full benefits of the European Neighbourhood Policy to Belarus. Meanwhile the EU 
will consider ways of strengthening support to civil society in ways described below.  

The EU looks forward to Libya’s entry into the Barcelona process on the basis of Libya’s full 
acceptance of the Barcelona acquis and of the resolution of outstanding bilateral issues. This 
will pave the way to the establishment of normal relations so that Libya will be able to benefit 
from the European Neighbourhood Policy.  

The  present  Communication  contains  recommendations  concerning  the  inclusion  of  the 
countries of the Southern Caucasus in the European Neighbourhood Policy. 

The  European  Neighbourhood  Policy  will  reinforce  existing  forms  of  regional  and  sub-
regional  cooperation  and  provide  a  framework  for  their  further  development.  The  ENP  will 
reinforce stability and security and contribute to efforts at conflict resolution. This document 
contains recommendations on the development of regional cooperation and integration, as a 
means  to  address  certain  issues  arising  at  the  enlarged  EU’s  external  borders.  By  further 
developing  various  forms  of  cross-border  co-operation,  involving  local  and  regional 
authorities, as well as non-governmental actors, the EU and its partners can work together to 
ensure that border regions benefit from the EU’s 2004 enlargement. In the south, the ENP will 
also encourage the participants to reap the full benefits of the Euro-Mediterranean Partnership 
(the Barcelona process), to promote infrastructure interconnections and networks, in particular 
energy,  and  to  develop  new  forms  of  cooperation  with  their  neighbours.  The  ENP  will 
contribute to develop further regional integration, building on the achievements of the Euro-
Mediterranean  partnership,  notably  in  the  area  of  trade.  It  will  reinforce  efforts  to  meet  the 
objectives of the European security strategy in the Mediterranean and the Middle East. 

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The  European  Neighbourhood  Policy's  vision  involves  a  ring  of  countries,  sharing  the  EU's 
fundamental  values  and  objectives,  drawn  into  an  increasingly  close  relationship,  going 
beyond  co-operation  to  involve  a  significant  measure  of  economic  and  political  integration. 
This  will  bring  enormous  gains  to  all  involved  in  terms  of  increased  stability,  security  and 
well being. The Action Plans, which are to be developed on the basis of the principles set out 
in this Communication, constitute a first major step towards realising this vision. The Action 
Plans will define the way ahead over the next three to five years. The next step could consist 
in the negotiation of European Neighbourhood Agreements, to replace the present generation 
of bilateral agreements, when Action Plan priorities are met. Progress made in this way will 
enable the EU and its partners to agree on longer term goals for the further development of 
relations in the years ahead.  

The  Commission  invites  the  Council  to  consider  the  approach  outlined  in  the  present 
Communication  and  to  draw  up  conclusions  on  the  way  to  carry  this  initiative  forward, 
addressing the substance of potential Action Plans and the countries with which they should 
be  drawn  up,  bearing  in  mind  the  commitment  to  shared  values.  On  this  basis,  the 
Commission,  with  the  participation  of  representatives  of  the  Presidency  and  the  High 
Representative,  is  ready  to  complete  exploratory  talks  with  the  countries  identified  and  to 
present draft Action Plans. It suggests that these Action Plans be approved by the respective 
Cooperation or Association Councils. It is also ready to begin preparations with certain other 
countries, referred to in this Communication, to which this initiative applies.  

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PRINCIPLES AND SCOPE 

A Neighbourhood Policy for a European Union acting coherently and efficiently in the 
world 

A  comprehensive  neighbourhood  policy,  integrating  related  components  from  all  three 
‘pillars’  of  the  Union’s  present  structure,  will  enable  neighbouring  countries  to  share  the 
benefits  of  EU  enlargement  in  terms  of  stability,  security  and  well-being.  This  has  been 
reflected  in  the  preparatory  work  for  the  adoption  of  the  European  Union’s  Constitutional 
Treaty.  The  importance  of  a  neighbourhood  policy  is  also  highlighted  in  the  European 
Security Strategy, endorsed at the European Council of December 2003, which states that the 
EU’s  task  is  to  "make  a  particular  contribution  to  stability  and  good  governance  in  our 
immediate neighbourhood [and] to promote a ring of well governed countries to the East of 
the European Union and on the borders of the Mediterranean with whom we can enjoy close 
and cooperative relations".  

The ENP is designed to give new impetus to cooperation with the EU’s neighbours following 
enlargement. Relations with partner countries will be enriched drawing as appropriate on the 
experience  gained  in  supporting  the  process  of  political  and  economic  transition,  as  well  as 
economic development and modernisation in the new Member States and candidate countries. 

The  ENP  should  reinforce  the  EU’s  contribution  to  promoting  the  settlement  of  regional 
conflicts.  The  ENP  can  also  help  the  Union’s  objectives  in  the  area  of  Justice  and  Home 
Affairs,  in  particular  in  the  fight  against  organised  crime  and  corruption,  money  laundering 
and  all  forms  of  trafficking,  as  well  as  with  regard  to  issues  related  to  migration.  It  is 
important  for  the  EU  and  its  partners  to  aim  for  the  highest  degree  of  complementarity  and 
synergy in the different areas of their cooperation. 

The EU and Russia have decided to develop their strategic partnership through the creation of 
four  common  spaces  as  agreed  at  the  St  Petersburg  Summit  in  May  20034.  Russia  and  the 
enlarged  European  Union  form  part  of  each  other’s  neighbourhood.  It  is  in  our  common 
interest to draw on elements of the ENP to enrich work on the common spaces, notably in the 
areas  of  cross-border  and  sub-regional  co-operation.  The  EU  and  Russia  need  to  work 
together, as neighbours, on common concerns. The Commission recommends that Russia be 
offered support for implementing relevant parts of the strategic partnership from the proposed 
European Neighbourhood Instrument, in addition to existing forms of support.  

As  far  as  the  Mediterranean  countries  are  concerned,  the  ENP  will  contribute  to  the 
achievement  of  the  objectives  of  the  Strategic  Partnership  for  the  Mediterranean  and  the 
Middle East. The implementation of the Strategic Partnership for the Mediterranean countries 
should draw on the implementation of the ENP. The ENP, itself, will be implemented through 
the Barcelona process and the Association Agreements with each partner country. 

In  the  implementation  of  the  ENP  it  is  of  the  utmost  importance  that  the  Institutions  and 
Member States act in a consistent and coherent way. 

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These  are:  Common  economic  space,  (including  and  with  specific  reference  to  environment  and 
energy),  a  common  space  of  freedom,  security  and  justice,  a  space  of  co-operation  in  the  field  of 
external security, as well as a space of research and education, including cultural aspect. The EU-Russia 
energy dialogue is a key element of the overall relationship. 

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Geographic coverage 

The ENP is addressed to the EU’s existing neighbours and to those that have drawn closer to 
the  EU  as  a  result  of  enlargement.  In  Europe  this  applies  to  Russia,  Ukraine,  Belarus  and 
Moldova.  The  EU  and  Russia  have  decided  to  develop  their  strategic  partnership  further 
through the creation of four common spaces, as defined at the 2003 St. Petersburg summit5. In 
the  Mediterranean  region,  the  ENP  applies  to  all  the  non-EU  participants  in  the  Euro-
Mediterranean  Partnership  (the  Barcelona  process)  with  the  exception  of  Turkey6,  which  is 
pursuing  its  relations  with  the  EU  in  a  pre-accession  framework.  The  Commission  also 
recommends the inclusion of Armenia, Azerbaijan and Georgia within the scope of the ENP7. 

Exploratory talks to identify elements for inclusion in possible Action Plans have begun with 
partners  having  Partnership  and  Cooperation  Agreements  or  Association  Agreements  in 
force8. Reports on the current situation in these countries and their cooperation with the EU 
are attached to this communication.  

The  development  of  Action  Plans  with  other  neighbours  should  begin,  once  those  currently 
under preparation have been presented. The Commission suggests that it begin to explore in 
the  second  half  of  2004  the  possibility  of  drawing  up  Action  Plans  with  countries  in  the 
Mediterranean,  which  have  themselves  ratified  Association  Agreements,  that  is,  Egypt  and 
Lebanon.  Exploratory  talks  could  begin  with  other  countries  in  this  region,  once  their 
prospective contractual links with the EU have reached a  similar stage. The Presidency and 
the Secretariat will be fully involved in this process and the Member States consulted on the 
timing and the contents of possible additional Action Plans. 

ENP and Existing Instruments 

Relations  between  the  EU  and  most  countries  participating  in  the  ENP  are  already  highly 
developed. In Eastern Europe, the Partnership and Cooperation Agreements provide the basis 
for  contractual  relations.  In  the  Mediterranean,  the  Euro-Mediterranean  Partnership  (the 
“Barcelona Process”) provides a regional framework for co-operation which is complemented 
by a network of Association Agreements.  

These agreements allow for the development of cooperation and economic integration across 
a wide range of fields. The full potential of these agreements has not yet been realised. The 
ENP  points  the  way  to  enhanced  cooperation  in  a  number  of  well-defined  fields,  in  order, 
initially, to enable the EU and its partners to attain the full benefit of the structures which are 
in place. To this end, the Action Plans will establish key priorities to be addressed in the years 
ahead. Progress will be carefully monitored in the committees and sub-committees established 
under  the  agreements,  and  in  the  appropriate  dialogue  structures.  The  definition  and 
attainment  of  these  priorities  will  be  an  important  first  step  towards  the  ambitious  goals  set 
out in the Commission communication of March 2003. 

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Cf.  the  recent  Commission  Communication  on  relations  with  Russia,  COM(2004)  106,  9  February 
2004, as well as the Council Conclusions of 24 February 2004. 
Algeria,  Egypt,  Israel,  Jordan,  Lebanon,  Libya,  Morocco,  Syria,  Tunisia,  as  well  as  the  Palestinian 
Authority. 
See section (3) below. 
Israel, Jordan, Moldova, Morocco, Palestinian Authority, Tunisia and Ukraine. 

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Joint Ownership 

The  ENP  is  an  offer  made  by  the  EU  to  its  partners  to  which  they  have  responded  with 
considerable interest and engagement. Joint ownership of the process, based on the awareness 
of shared values and common interests, is essential. The EU does not seek to impose priorities 
or  conditions  on  its  partners.  The  Action  Plans  depend,  for  their  success,  on  the  clear 
recognition of mutual interests in addressing a set of priority issues. There can be no question 
of  asking  partners  to  accept  a  pre-determined  set  of  priorities.  These  will  be  defined  by 
common consent and will thus vary from country to country. The endorsement of these plans 
by  the  highest  instance  of  the  agreements  in  place  will  give  added  weight  to  the  agreed 
priorities for action. 

The ambition and the pace of development of the EU’s relationship with each partner country 
will depend on its degree of commitment to common values, as well as its will and capacity to 
implement agreed priorities. 

Differentiation 

The point of departure for the Action Plans is a common set of issues, which correspond with 
the ENP’s objectives. These are outlined in section (4) below. However the drawing up of an 
Action  Plan  and  the  priorities  agreed  with  each  partner  will  depend  on  its  particular 
circumstances.  These  differ  with  respect  to  geographic  location,  the  political  and  economic 
situation,  relations  with  the  European  Union  and  with  neighbouring  countries,  reform 
programmes,  where  applicable,  needs  and  capacities,  as  well  as  perceived  interests  in  the 
context of the ENP. Thus the Action Plans with each partner will be differentiated. 

Differentiation should at the same time be based on a clear commitment to shared values and 
be  compatible  with  a  coherent  regional  approach,  especially  where  further  regional  co-
operation can bring clear benefits. 

Added value 

The  ENP  brings  added  value,  going  beyond  existing  cooperation,  both  to  partner  countries 
and to the EU. This added value takes a number of forms:  

1. 

2. 

The ENP offers a means for an enhanced and more focused policy approach of the 
EU  towards  its  neighbourhood,  bringing  together  the  principal  instruments  at  the 
disposal of the Union and its Member States. It will contribute to further advancing 
and supporting the EU’s foreign policy objectives. 

The  implementation  of  the  ENP  itself  brings  with  it  the  perspective  of  moving 
beyond  cooperation  to  a  significant  degree  of  integration,  as  set  out  in  the  March 
2003  communication,  including  through  a  stake  for  partner  countries  in  the  EU’s 
Internal  Market.  It  will  also  avoid  any  sense  of  exclusion  which  might  otherwise 
have arisen from enlargement and provide an opportunity to share in its benefits. It 
will set out the ways and means by which partner countries participate progressively 
in key aspects of EU policies and programmes. 

3. 

The  ENP  will  upgrade  the  scope  and  intensity of political cooperation with partner 
countries and make it more effective. 

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4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

The ENP will encourage reforms that will bring benefits in terms of economic and 
social development. The convergence of economic legislation, the opening of partner 
economies to each other, and the continued reduction of trade barriers will stimulate 
investment and growth and reduce unemployment. 

The ENP will provide incentives for resolving outstanding issues which have arisen 
in bilateral relations. The issues concerned vary from country to country. 

The Action Plans will define priorities and provide focus for the implementation of 
existing  agreements.  They  will  include  “deliverables”  of  importance  to  the  EU  and 
the country concerned in various fields covered by the agreements. 

The Commission will propose the introduction in 2007 of a new financial instrument, 
the  European  Neighbourhood  Instrument,  which  will  address  specific  areas  of 
cooperation,  in  particular  cross-border  co-operation,  in  addition  to  the  areas 
addressed by existing instruments or their successors. All partners in the ENP will be 
eligible  for  support  under  this  instrument.  Meanwhile,  for  the  period  2004-2006, 
Neighbourhood  Programmes  will  add  value  to  cross-border,  transnational  and 
regional co-operation. 

The  Commission  has  proposed  that  existing  funds  or  their  successors  be  increased 
significantly under the new financial perspectives, in keeping with the priority given 
by the EU to the ENP.  

The  Commission  is  examining  the  possibilities  of  gradual  opening  of  certain 
Community  programmes,  promoting  cultural,  educational,  environmental,  technical 
and scientific links. 

The  ENP  will  provide  support  including  technical  assistance  and  twinning  for 
partners that wish to meet EU norms and standards.  

New contractual links, in the form of European Neighbourhood Agreements, whose 
scope will be defined in the light of an evaluation by the Commission of progress in 
meeting the priorities set out in the Action Plans. 

Taken together, these incentives provide considerable added value to participating countries. 
When  the  monitoring  process  demonstrates  significant  progress  in  attaining  the  priorities 
which  have  been  set,  these  incentives  can  be  reviewed,  with  a  view  to  taking  further  steps 
along the path to greater integration with the internal market and other key EU policies. The 
process is a dynamic one, with the Action Plans constituting an important first step. 

Priorities for action 

Action Plans will cover two broad areas: first, commitments to specific actions which confirm 
or  reinforce  adherence  to  shared  values  and  to  certain  objectives  in  the  area  of  foreign  and 
security policy; secondly, commitments to actions which will bring partner countries closer to 
the EU in a number of priority fields. These priorities for action will be as precise as possible, 
depending on the issue at stake, and thus will constitute benchmarks which can be monitored 
and assessed. Partners can, for example, move towards the free circulation of goods by taking 
action to remove specific technical obstacles, identified in the Action Plans. 

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The  Action  Plans  will  identify  key  actions  in  a  limited  number  of  fields  which  need  to  be 
addressed  as  a  particularly  high  priority,  as  well  as  actions  in  a  wider  range  of  fields, 
corresponding to the scope of the bilateral agreements in force. A clear time horizon will be 
given for addressing these different priorities. 

Monitoring 

Monitoring  will  take  place  within  the  bodies  set  up  under  the  Partnership  and  Cooperation 
Agreements  or  Association  Agreements.  These  have  the  advantage  of  bringing  together 
representatives  of  partner  countries,  member  states,  the  European  Commission  and  the 
Council  Secretariat.  Monitoring  in  this  setting  should  reinforce  joint  ownership.  Partner 
countries  will  be  asked  to  provide  detailed  information  as  a  basis  for  this  joint  monitoring 
exercise.  The  sub-committees,  with  their  focus  on  specific  issues,  as  well  as  the  economic 
dialogues, will be particularly useful for monitoring.  

The  Commission  will  draw  up  periodic  reports  on  progress  and  on  areas  requiring  further 
efforts,  taking  into  account  assessments  made  by  the  authorities  of  the  partner  country.  The 
Action Plans will be reviewed and may be adapted in the light of progress towards meeting 
the  priorities  for  action.  It  is  suggested  that  a  “mid-term”  report  be  prepared  by  the 
Commission,  with  the  contribution  of  the  High  Representative  on  issues  related  to  political 
co-operation and the CFSP, within two years of the approval of an action plan and a further 
report within three years. These reports can serve as a basis for the Council to decide the next 
step  in  contractual  links  with  each  partner  country.  These  could  take  the  form  of  European 
Neighbourhood Agreements whose scope will be defined in the light of progress in meeting 
the priorities set out in the Action Plans. 

THE PARTICIPATION OF OTHER NEIGHBOURING COUNTRIES 

In this section the Commission reviews the situation regarding certain other countries within 
the proximity of the enlarged EU. 

Southern Caucasus 

The  European  Union  has  a  strong  interest  in  the  stability  and  development  of  the  Southern 
Caucasus.  The  European  Security  Strategy,  adopted  by  the  European  Council  in  December 
2003, clearly identifies the South Caucasus as one of the regions, in which the EU should take 
a “stronger and more active interest”.  

The European Commission, in consultation with the High Representative and taking account 
of  the  proposals  of  the  EU  Special  Representative  as  well  as  the  view  expressed  by  the 
European  Parliament9,  recommends  that  a  decision  be  taken  by  the  Council  to  include 
Armenia,  Azerbaijan  and  Georgia  in  the  European  Neighbourhood  Policy.  Each  country 
should be given an equal opportunity to develop its links with the EU within this framework. 
The EU should consider the possibility of developing Action Plans with these countries in the 
future on the basis of their individual merits. With this in view, the Commission will report to 
the  Council  on  progress  made  by  each  country  with  respect  to  the  strengthening  of 
democracy, the rule of law and respect for human rights. 

9 

Cf. Parliament resolution of 26 February 2004 on “EU Policy towards the South Caucasus”. 

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The EU wishes to see reinforced, credible and sustained commitment towards democracy, the 
rule  of  law,  respect  for  human  rights,  and  progress  towards  the  development  of  a  market 
economy.  These  common  values  also  underlie  the  membership  of  Armenia,  Azerbaijan  and 
Georgia in the Council of Europe and OSCE. Increased efforts to promote the settlement of 
the  conflicts  in  the  region  and  to  develop  good  neighbourly  relations  are  needed.  Concrete 
steps  forward  need  to  be  made  by  each  of  the  three  countries  to  make  further  progress  in 
implementing  their  respective  Partnership  and  Cooperation  Agreements,  in  particular  to 
strengthen the rule of law, and to promote conflict settlement. The ENP should reinforce the 
EU’s contribution to promote these objectives. 

To help Armenia, Azerbaijan and Georgia prepare for further reinforced cooperation with the 
EU,  the  EU  stands  ready  to  support  credible,  concrete  and  sustained  reform  efforts,  in 
particular  in  the  above  mentioned  priority  areas,  by  additional  means  of  assistance.  Co-
operation  should  also  be  developed  in  the  area  of  energy,  as  the  Southern  Caucasus  is  an 
important region both for the production (the Caspian basin) and the transit of energy.  

Belarus 

The Commission’s March 2003 Communication on Wider Europe notes that “the EU should 
aim to engage Belarus in a measurable step-by-step process focused on creating the conditions 
for free and fair elections and, once achieved, the integration of Belarus into neighbourhood 
policy, without compromising the EU commitment to common and democratic values”. 

The EU’s long-term goal is for Belarus to be a democratic, stable, reliable, and increasingly 
prosperous partner with which the enlarged EU will share not only common borders, but also 
a common agenda driven by shared values.  

Through  the  ENP,  the  EU  will  reinforce  its  lasting  commitments  to  supporting  democratic 
development in Belarus. When fundamental political and economic reforms take place, it will 
be possible for Belarus to make full use of the ENP. 

Currently however, an authoritarian system is in place in Belarus. Elections since 1996 have 
failed to meet international democratic standards and democratic structures are lacking. Under 
these circumstances, it is not yet possible to offer the full benefits of the ENP to Belarus. 

The  EU  will  support  democratic  parliamentary  elections  in  the  autumn,  working  in 
coordination with the OSCE and the Council of Europe, as well as raising awareness of EU 
policies and assistance benefiting Belarusian citizens. It will also confirm the perspective of 
closer relations, including in the framework of the  ENP, provided  that fundamental reforms 
are  carried  out.  This  will  give  a  visible  signal  to  the  population  of  Belarus,  setting  out  the 
benefits  available  to  support  civil  society  and  democratization,  regional  and  humanitarian 
cooperation, neighbourhood programmes and travel facilitation in border regions.  

If  significant  positive  developments  take  place  in  democratisation  in  Belarus,  there  is  scope 
for  more  active  engagement  with  the  Belarusian  authorities  at  political  level.  Contacts 
between officials at technical level could be intensified and meetings at senior level, such as 
the  Regional  Directors’  Troika  resumed.  Travel  facilitation  for  Belarusian  citizens  could  be 
considered along with support for people-to-people contacts through EU assistance schemes. 

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The  Commission  also  proposes  that  EU  assistance  to  Belarus  be  strengthened  with  a  clear 
focus  on  civil  society.  More  can  be  done  in  the  areas  confirmed  in  Council  Conclusions  in 
1997,  in  particular  to  support  civil  society,  democratisation,  independent  media,  the 
alleviation  of  problems  in  the  areas  affected  by  the  Chernobyl  disaster,  humanitarian 
assistance as well as regional cooperation.  

Belarus  is  already  eligible  to  participate  in  three  of  the  Neighbourhood  Programmes  (Baltic 
Sea  Programme,  Latvia-Lithuania-Belarus,  Poland-Ukraine-Belarus).  Belarus  will  also  be 
eligible under the new European Neighbourhood Instrument (ENI). 

Libya 

The  Commission’s  Communication  of  March  2003  stated  that  the  EU  should  give 
consideration  to  how  it  could  incorporate  Libya  into  the  neighbourhood  policy.  The  EU 
currently has no contractual relations with Libya10. In April 1999, following the suspension of 
UN  sanctions,  Libya  acquired  observer  status  in  the  Barcelona  Process  and  was  invited  to 
become a full member as soon as the UN Security Council sanctions have been definitively 
lifted and once Libya has accepted the full Barcelona 'acquis'.  

Libya has recently announced its readiness to move towards full membership of the Barcelona 
process.  This  positive  move  needs  to  be  confirmed  formally  by  Libya  and  followed  up  by 
steps  towards  acceptance  of  the  Barcelona  acquis.  Progress  towards  full  membership  of  the 
Barcelona process will not be able to proceed beyond the exploratory stage without resolution 
of outstanding bilateral issues with EU member states.  

Full integration into the Barcelona process is the first step towards new relations with the EU, 
which include the negotiation of an Association Agreement. If it is achieved and once there 
are  contractual  arrangements  with  the  EU,  participation  in  ENP  will  allow  further 
development  of  the  EU’  relationship  with  Libya  as  for  all  other  countries  in  the  Barcelona 
process.  

ACTION PLANS 

Commitment to shared values 

The  Union  is  founded  on  the  values  of  respect  for  human  dignity,  liberty,  democracy, 
equality,  the  rule  of  law  and  respect  for  human  rights.  These  values  are  common  to  the 
Member States in a society of pluralism, tolerance, justice, solidarity and non-discrimination. 
The  Union's  aim  is  to  promote  peace,  its  values  and  the  well-being  of  its  peoples.  In  its 
relations with the wider world, it aims at upholding and promoting these values. 

The Union’s neighbours have pledged adherence to fundamental human rights and freedoms, 
through their adherence to a number of multilateral treaties as well as through their bilateral 
agreements  with  the  EU.  All  the  EU’s  neighbours  are  signatories  of  UN  human  rights 
conventions. Some are members of the Council of Europe11 and OSCE and have ratified the 
European  Convention  for  the  Protection  of  Human  Rights  and  Fundamental  Freedoms  and 

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11 

A mandate for negotiations on a Fisheries agreement between EU and Libya is presently discussed in 
the Council. 
Moldova, Russia and Ukraine. 

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committed themselves to adhere to relevant conventions and bodies setting high democratic 
and  human  rights  standards  as  well  as  to  accept  strong  and  legally  binding  mechanisms  to 
ensure  that  they  comply  with  human  rights  obligations.  Signatories  to  the  Barcelona 
declaration have accepted inter alia a declaration of principles to act in accordance with the 
United Nations Charter and the Universal Declaration of Human Rights, and to develop the 
rule of law and democracy in their political systems, respect human  rights and fundamental 
freedoms and guarantee the effective legitimate exercise of such rights and freedoms.  

Partner  countries  are  committed  to  respecting  core  labour  standards  and  to  promoting 
fundamental social rights, as parties to relevant ILO conventions; they are also committed to 
the  pursuit  of  a  sustainable  mode  of  development,  as  defined  at  the  Johannesburg  world 
summit. 

The  European  Neighbourhood  policy  seeks  to  promote  commitment  to  shared  values.  The 
extent to which neighbouring countries implement commitments in practice varies and there 
is considerable scope for improvement. Effective implementation of such commitments is an 
essential element in the EU’s relations with partners.  

The level of  the EU’s  ambition  in  developing links with  each partner through the ENP will 
take into account the extent to which common values are effectively shared. The Action Plans 
will contain a number of priorities intended to strengthen commitment to these values. These 
include strengthening democracy and the rule of law, the reform of the judiciary and the fight 
against corruption and organised crime; respect of human rights  and  fundamental  freedoms, 
including freedom of media and expression, rights of minorities and children, gender equality, 
trade union rights and other core labour standards, and fight against the practice of torture and 
prevention  of  ill-treatment;  support  for  the  development  of  civil  society;  and  co-operation 
with the International Criminal  Court. Commitments  will  also  be  sought  to  certain  essential 
aspects of the EU’s external action, including, in particular, the fight against terrorism and the 
proliferation  of  weapons  of  mass  destruction,  as  well  as  abidance  by  international  law  and 
efforts to achieve conflict resolution. 

A more effective political dialogue  

Through  the  ENP,  the  parties  will  strengthen  their  political  dialogue  and  make  it  more 
effective.  This  encompasses  foreign  and  security  policy  issues  including  regional  and 
international issues, conflict prevention and crisis management and common security threats 
(e.g.  terrorism  and  its  root  causes,  proliferation  of  weapons  of  mass  destruction  and  illegal 
arms exports).  

Areas for enhanced dialogue with each country will be identified in Action Plans. The EU and 
partner  countries  should  also  work  together  on  effective  multilateralism,  so  as  to  reinforce 
global governance, strengthen coordination in combating security threats and address related 
development issues. Improved co-ordination within the established political dialogue formats 
should  be  explored,  as  well  as  the  possible  involvement  of  partner  countries  in  aspects  of 
CFSP and ESDP, conflict prevention, crisis management, the exchange of information, joint 
training  and  exercises  and  possible  participation  in  EU-led  crisis  management  operations. 
Another important priority will be the further development of a shared responsibility between 
the EU and partners for security and stability in the neighbourhood region. 

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Economic and social development policy 

The  approach  proposed  by  the  ENP  has  important  economic  implications,  as  it  envisages 
enhanced preferential trade relations and increased financial and technical assistance. It also 
offers  neighbouring  countries  the  prospect  of  a  stake  in  the  EU  Internal  Market  based  on 
legislative  and  regulatory  approximation,  the  participation  in  a  number  of  EU  programmes 
and improved interconnection and physical links with the EU.  

The  economic  benefits  from  this  process  are  expected  to  be  substantial  and  to  accrue  both 
directly and indirectly. Directly, the reduction of tariff and non-tariff barriers to trade should 
bring about efficiency gains and improve welfare through increased market integration. The 
indirect  effects,  particularly  on  partner  countries,  are  even  larger.  By  bringing  the 
neighbouring  countries  closer  to  the  EU  economic  model,  also  through  the  adoption  of 
international  best  practices,  the  ENP  and  particularly  the  proposed  extension  of  the  internal 
market,  will  improve  the  investment  climate  in  partner  countries.  It  will  provide  a  more 
transparent, stable and enabling environment for private sector-led growth. A positive impact 
on  foreign  direct  investment  inflows  is  expected  as  a  result  of  a  more  favourable  policy 
environment,  falling  trade  and  transaction  costs,  attractive  relative  labour  costs  and  reduced 
risk.  

The ENP has a potential to improve economic and social conditions in the EU neighbourhood. 
However, the actual delivery of these benefits requires effective implementation of the agreed 
measures  and  appropriate  accompanying  policies.  Increased  economic  integration  with  the 
EU,  notably  with  respect  to  capital  movements  liberalisation,  may  increase  macroeconomic 
and financial volatility in specific contexts. The implementation of the ENP will thus have to 
be properly sequenced, tailored to each country’s specific circumstances and accompanied by 
sound macroeconomic, social and structural policies.  

The  extent  to  which  the  ENP  is  perceived  as  beneficial  depends  on  its  effects  on  living 
standards.  Participation  in  the  ENP  project  should  be  accompanied  by  active  policies  to 
address poverty and inequality.  

The  Action  Plans’  economic  and  social  component  needs  to  be  consistent  with  partner 
countries’  own  strategies.  Strengthened  dialogue  is  needed  through  the  relevant  sub-
committees  and  economic  dialogues.  It  will  also  be  important  to  ensure  appropriate  co-
ordination with the International Financial Institutions. These have valuable contributions to 
make both in terms of policy advice and financing.  

Enhanced  dialogue  and  co-operation  on  the  social  dimension  will  cover  in  particular  socio-
economic  development,  employment,  social  policy  and  structural  reforms.  The  EU  will 
encourage  partner  governments’  efforts  aiming  at  reducing  poverty,  creating  employment, 
promoting core labour standards and social dialogue, reducing regional disparities, improving 
working  conditions,  enhancing  the  effectiveness  of  social  assistance  and  reforming  national 
welfare systems. The idea is to engage in a dialogue on employment and social policy with a 
view to develop an analysis and assessment of the situation, to identify key challenges and to 
promote policy responses. 

Issues related to the movement of workers, in particular as regards equal treatment or living 
and  working  conditions  of  migrant  workers,  and  on  co-ordination  of  social  security  will 
continue  to  be  addressed  within  the  framework  of  the  association  and  co-operation 
agreements. 

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Trade and internal market 

The  Action  Plans  will  set  out  ways  and  means  to  ensure  that  both  the  EU  and  its  partners 
derive  the  full  benefits  of  the  provisions  on  trade  contained  in  the  existing  Partnership  and 
Cooperation  or  Association  Agreements.  Due  account  will  also  be  taken  of  initiatives  at 
regional level. 

Legislative  and  regulatory  approximation  will  be  pursued  on  the  basis  of  commonly  agreed 
priorities,  focusing  on  the  most  relevant  elements  of  the  acquis  for  stimulation  of  trade  and 
economic integration, taking into account the economic structure of the partner country, and 
the current level of harmonisation with EU legislation. Both Partnership and Co-operation and 
Association Agreements contain provisions on legislative approximation over a broad area. 

The ENP also foresees greater market opening in accordance with the principles of the WTO. 
In  the  context  of  the  Barcelona  Process,  a  free  trade  area  for  goods  has  been  agreed,  and 
asymmetric liberalisation has begun. The ENP will provide ways and means to deepen trade 
liberalisation  and  regional  integration  in  coherence  with  the  Euromed  partnership.  For  the 
Eastern neighbours, the priority remains fuller implementation of the trade-related provisions 
of  the  PCA,  accession  to  the  WTO  (in  the  case  of  Ukraine)  or  full  implementation  of  the 
WTO accession agreement (in the case of Moldova), along with continued economic reform. 
Deeper  integration  of  trade  and  economic  relations,  as  foreseen  in  the  PCAs,  will  then  be 
considered.  

The Action Plans will set out concrete steps to exploit to the full the opportunities provided in 
these frameworks. These steps will depend on each partner’s needs, capacities and economic 
policy  priorities.  The  measures  discussed  below  will  be  introduced  progressively,  as 
appropriate to each partner. 

Regarding  goods,  steps  should  be  taken  to  improve  administrative  co-operation,  and  ensure 
the  gradual  elimination  of  non-tariff  barriers  to  trade  and  the  development  of  appropriate 
infrastructures. The movement of industrial products can be facilitated through convergence 
with  the  Union’s  laws  and  regulatory  structures.  This  could  be  supplemented  by  the 
conclusion of Agreements on Conformity Assessment and Acceptance of Industrial Products 
(ACAAs)  between  the  Community  and  individual  partners,  building  on  experience  with  the 
current initiative towards neighbouring Mediterranean countries. Legislative approximation in 
the  area  of  customs,  along  with  capacity-building  and  modernisation, 
including 
computerisation,  will  also  contribute  to  trade  facilitation.  For  Mediterranean  partners,  these 
actions are in line with the Palermo recommendations. Actions to combat fraud in the customs 
area and to establish risk-based customs control as well as measures to ensure the security and 
safety of goods will also be included in the Action Plans.  

For  agricultural  products,  convergence  with  EU  standards  for  sanitary  and  phyto-sanitary 
controls  will  greatly  enhance  reciprocal  trade  between  the  partner  countries  and  the  EU. 
Exchanging information and close co-operation in international organisations responsible for 
the  control  of  animal  and  plant  diseases  and  improved  sanitary  conditions  to  protect 
consumers  are  priorities.  Most  countries  also  need  to  improve  administrative  capacity  to 
ensure levels of food safety to enable them to access EU markets.  

The goal of free trade in services with and among partner countries will also require further 
legislative  approximation  in  fields  such  as  company  law,  accounting  and  auditing  rules.  A 
comprehensive  prudential  regulatory  framework,  combined  with  efficient  and  independent 

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supervisory bodies, is particularly important for the financial services area. It will be key to 
the  creation  of  business  and  the  promotion  of  investments  that  these  countries  ensure  that 
companies  are  able  to  operate  on  a  level  playing  field.  In  combination  with  the  above 
measures,  access  to  European  financial  markets  should,  over  time,  add  to  the  stability  of 
partners’ financial markets and help enhance their overall economic performance. The further 
liberalising of capital movements will provide new opportunities.  

The  objective  of  improving  the  investment  climate,  including  by  ensuring  transparency, 
predictability,  and  simplification  of  these  countries’  regulatory  framework  will  help  to 
facilitate and increase two-way investments. Non-discriminatory treatment of investors is an 
essential  element  in  this  process.  Actions  enhancing  a  systematic  dialogue  covering  all 
investment-related  issues  and  consultation  with  stakeholders  will  be  key  to  improving  the 
bilateral investment environment, and reducing administrative barriers to the development of 
business.  Strengthening  of  the  functioning  of  the  judicial  system  will  also  contribute  to  a 
better investment climate. 

Regulatory convergence in key trade-related disciplines will bring economic benefits, both in 
terms  of  reforms  in  partner  countries,  and  in  terms  of  enhanced  investment  climate.  In 
particular, increased levels of effective protection of intellectual and industrial property rights 
as  well  as  effective  enforcement  of  such  rights,  along  with  regulatory  convergence  and 
improved market access in the area of public procurement are likely to have significant effects 
on economic development and on investment levels. Actions could also be taken to increase 
harmonisation and the sustainability of the statistical systems. 

In  addition,  partners  should  be  encouraged  to  enforce  competition  discipline  through 
independent  competition  authorities  with  adequate  powers  and  resources  as  well  as  proper 
legislative 
training.  Convergence 
approximation  on  anti-trust  as  well  as  State  aid  regulations,  will  eventually  be  needed  for 
partners  to  advance  towards  convergence  with  the  Internal  Market.  Such  steps  will  also 
benefit domestic markets as well as facilitating trade.  

towards  comparable  approaches  and  definitions, 

Actions  to  modernise  and  increase  transparency  in  the  tax  system,  including  through 
convergence with the Code of Conduct for Business Taxation of the European Union, in line 
with WTO requirements, adoption of conventions for the avoidance of double taxation would 
improve  the  business  climate.  The  strengthening  of  tax  administrations  and  improved  co-
operation between them would also promote the functioning of market economies. 

Justice and Home Affairs 

The ENP aims to avoid new dividing lines at the borders of the enlarged Union. Improving 
the  effective  functioning  of  public  institutions,  with  a  view  to  ensuring  high  standards  of 
administrative  efficiency,  is  a  shared  interest  between  the  EU  and  the  partner  countries. 
Partners  are  facing  increased  challenges  in  the  field  of  Justice  and  Home  Affairs,  such  as 
migration pressure from third countries, trafficking in human beings and terrorism. Working 
together on these matters is a common interest. The identification of priorities in each Action 
Plan will depend on the particular issues which are most salient for the partner in question and 
for the EU. 

Border  management  is  likely  to  be  a  priority in  most  Action  Plans  as  it  is  only  by  working 
together that the EU and its neighbours can manage common borders more efficiently in order 
to facilitate legitimate movements. The Action Plans should thus include measures to improve 

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the efficiency of border management, such as support for the creation and training of corps of 
professional non-military border guards and measures to make travel documents more secure. 
The goal should be to facilitate movement of persons, whilst maintaining or improving a high 
level of security. 

Moreover,  a  Commission  proposal  for  Regulations  on  the  establishment  of  a  local  border 
traffic  regime  is  currently  under  consideration  by  the  Council  and  will,  if  adopted,  make  it 
possible  for  border  area  populations  to  maintain  traditional  contacts  without  encountering 
excessive  administrative  obstacles.  The  European  Union  may  also  consider  possibilities  for 
visa facilitation. Facilitation by one side will need to be matched by effective actions by the 
other. 

Action  Plan  priorities  could  furthermore  include  co-operation  on  migration,  asylum,  visa 
policies, measures to combat terrorism, organised crime, trafficking in drugs and arms, money 
laundering  and  financial  and  economic  crime.  Action  Plans  will  identify  concrete  steps  to 
strengthen the judiciary and to increase police and judicial co-operation, including in the area 
of  family  law  as  well  as  co-operation  with  European  Union  bodies  such  as  EUROPOL  and 
EUROJUST. Relevant international conventions need to be ratified and implemented. Action 
Plans should also reflect the Union’s interest in concluding readmission agreements with the 
partner countries. 

Connecting the neighbourhood 

Energy 

Enhancing our strategic energy partnership with neighbouring countries is a major element of 
the  European  Neighbourhood  Policy.  This  includes  security  of  energy  supply  and  energy 
safety and security. The European Union is the world’s largest energy (oil and gas) importer 
and the second largest consumer and is surrounded by the world’s most important reserves of 
oil  and  natural  gas  (Russia,  the  Caspian  basin,  the  Middle  East  and  North  Africa).  It  will 
increasingly  depend  on  imports,  from  its  current  level  of  50%  to  70%  by  2030,  on  present 
projections.  Neighbouring  countries  play  a  vital  role  in  the  security  of  the  EU’s  energy 
supply. Many countries seek improved access to the EU energy market, either as current or 
future suppliers (for instance, Russia, Algeria, Egypt, Libya) or as transit countries (Ukraine, 
Belarus,  Morocco,  Tunisia).  The  Southern  Caucasus  countries  are  also  important  in  this 
respect in terms of new energy supplies to the EU from the Caspian region and Central Asia. 
Improving energy network connections between the EU and its partners, as well as legal and 
regulatory  convergence,  are  thus  strong  mutual  interests.  Moreover,  increased  energy  co-
operation  provides  mutual  business  opportunities  and  can  also  contribute  to  socio-economic 
development and improvement to the environment.  

Action Plans will contain concrete steps to increase energy dialogue and co-operation, and to 
foster  further  gradual  convergence  of  energy  policies  and  the  legal  and  regulatory 
environment.  This  will  include  policies  to  promote  increased  energy  efficiency  and  energy 
savings, as well as the use of renewable energy and co-operation in energy technologies, such 
as clean coal. Possibilities for partners to participate in the Intelligent Energy Programme and 
for  their  gradual  involvement  in  European  Union  regulatory  practices  and  bodies  (e.g.,  the 
European Gas and Electricity Regulatory fora) will be explored.  

Reinforcing  networks  and  interconnections  will  be  necessary  for  ensuring  the  security  and 
safety  of  energy  supplies  and  for  extending  the  internal  energy  market  to  partner  countries. 

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The Action Plans will build on existing bilateral or regional initiatives, such as the EU-Russia 
Energy  Dialogue,  the  Tacis-funded  Inogate  programme  dealing  with  the  Caspian  basin  (oil 
and  gas  pipeline  systems);  energy  co-operation  in  the  context  of  the  Euro-Mediterranean 
partnership (in particular the creation of a Euro-Maghreb electricity market, which could be 
complemented  with  a  gas  market,  and  the  agreed  Euro-Mediterranean  energy  networks); 
enhanced energy co-operation between Israel and the Palestinian Authority; increased gas co-
operation in the Mashrek region (all in the Euro-Mediterranean context), as well as Moldova’s 
observer status in the South East Europe Regional Energy Market initiative. 

Transport 

Generating more trade and tourism between the Union and its neighbours, requires efficient, 
multimodal  and  sustainable  transport  systems.  Only  if  the  transport  sectors  of  partner 
countries  are  able  to  handle  today’s  complex  transport  flows  will  they  be  able  to  take  full 
advantage of closer relations and improved market access.  

Operational  changes  to  the  way  the  transport  sector  is  structured  (e.g.,  introduction  of 
competition in port services and air transport, modern regulatory frameworks, more efficient 
road haulage operations, inter-operability of railway systems etc.) can have a major impact on 
the efficiency of transport. Another important task is to step up aviation relations with partner 
countries with the aim to open up markets and to co-operate on safety and security issues. The 
Action Plans will contain specific provisions to address these issues.  

It  is  essential  to  improve  the  physical  transport  networks  connecting  the  Union  with 
neighbouring countries. In view of the costs involved, it will be crucial to co-ordinate closely 
in  drawing  up  investment  plans  for  these  networks.  Existing  initiatives  such  as  the  Pan-
European  Transport  Network  Concept,  various Pan-European  Transport  Conferences,  or  the 
Commission’s proposals of June 2003 for a Euro-Mediterranean transport network provide a 
sound basis to move forward. Project funding by the EIB will be important, on the basis of 
mainly medium-term actions agreed in the Action Plans. Concrete needs will be explored on a 
case-by-case basis. 

The Action Plans will also contain specific provisions to address the vulnerability of transport 
networks and services vis-à-vis terrorist attacks. The highest attention will be paid to enhance 
the security of air and maritime transport. 

Environment 

Environmental pollution does not respect borders and can therefore be best addressed through 
a  mix  of  international,  regional  and  national  action.  Enhanced  environment  protection  will 
bring benefits to citizens and businesses both in the Union and in partner countries. It can help 
to  avoid  conflicts  over  scarce  resources,  such  as  water.  Whilst  the  benefits  of  improved 
environmental  management  are  clear,  the  fact  that  it  often  represents  a  major  short-  and 
medium-term financial burden for both public and private actors is an issue which needs to be 
taken into account in planning and funding.  

Action  Plans  will  promote  good  environmental  governance  in  partner  countries  to  prevent 
environmental degradation and pollution, protect human health, and achieve a more rational 
use of natural resources. Priorities will be identified in key areas such as water quality, waste 
management,  air  pollution  and  the  fight  against  desertification.  Regional  co-operation 

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between 
implementation of international agreements promoted.  

the  partner  countries  needs 

to  be  further  enhanced  and  ratification  and 

Information society  

Information and communications technology is of particular significance for the development 
of modern economies and societies. It is vital therefore to support partners in their efforts to 
take advantage of the Information Society, and thus avoid a technology gap. In a number of 
Southern  Mediterranean  partner  countries  the  Information  Society  is  already  emerging,  in 
particular where the liberalisation of the market for mobile telephony is in an advanced stage.  

Recognising  the  link  between  successful  policy  reform  and  sector-specific  performance,  the 
Action Plans will promote policy measures such as the institutional separation of regulatory 
from  operational  functions,  by  encouraging  the  establishment  of  independent  regulatory 
authorities.  The  policy  will  also  set  out  to  support  governments  willing  to  promote  the 
commercialisation of incumbent operators. In the context of sector reform, steps such as the 
opening of the market for fixed telephony and for advanced services such as Internet, as well 
as  the  tendering  of  additional  GSM  licences  and  liberalising  value-added  services  are 
important for the development of the Information Society. Action Plans will identify steps to 
promote  new  technologies  and  electronic  communication  services  for  the  use  of  business, 
public bodies and citizens. 

Research and Innovation 

The  opening  of  the  European  Research  Area  to  partner  countries  is  a  challenge  of  the  6th 
Framework Programme for RTD and a factor of integration of the scientific communities of 
neighbouring countries. These countries already participate in priorities such as life sciences, 
energy,  transport,  environment,  IST,  food  safety  or  societal  issues  in  a  knowledge  based 
society, as well as in the specific measures for international cooperation focused on the needs 
and potential of these countries at a regional level. 

In  order  to  increase  the  participation  of  these  countries  in  the  Community’s  RTD  activities 
and to improve their national research systems’  contribution  to  economic  growth  and  social 
welfare,  structural  and  institutional  capacity  building  activities  need  to  be  supported.  These 
activities will be identified and implemented through the Action Plans. 

People-to-people, programmes and agencies 

An  effective  means  to  achieve  the  ENP’s  main  objectives  is  to  connect  the  peoples  of  the 
Union and its neighbours, to enhance mutual understanding of each others’ cultures, history, 
attitudes  and  values,  and  to  eliminate  distorted  perceptions.  Thus,  in  addition  to  contacts 
between  public  bodies  or  businesses,  the  ENP  will  promote  cultural,  educational  and  more 
general societal links between the Union and its neighbourhood.  

Human resource development is an essential component to reach objectives such as increased 
competitiveness, social inclusion and active citizenship. The deficit in the knowledge society 
needs  to  be  tackled  urgently  in  order  to  address  development  challenges  in  certain  partner 
countries, especially in the Mediterranean area, as highlighted by the conclusions of the Arab 
Human Development Report 2003. 

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The ENP also seeks to promote actions in the field of public health in order to improve the 
general  health  status  of  the  population  and  tackle  certain  specific  issues,  such  as 
communicable diseases.  

The  European  Neighbourhood  Policy  envisages  the  gradual  opening  of  certain  Community 
programmes, based on mutual interests and available resources. Areas to be explored include 
education, training and youth, research, environment, as well as culture and audio-visual. The 
YOUTH  programme,  which  already  promotes  people-to-people  contacts  and  co-operation 
between civil society actors in the youth field, should be further enhanced. The Tempus and 
Erasmus Mundus programmes offer possibilities to strengthen contacts between students and 
teachers.  The  Action  Plans  will  identify  concrete  opportunities  for  partners  to  participate  in 
such programmes. 

As participation in programmes designed for Member States can pose practical difficulties to 
third countries, the creation of dedicated programmes geared specifically to meeting partner 
countries’  needs  should  also  be  explored.  For  instance,  the  Commission  has  proposed  to 
create “Tempus Plus”, a dedicated programme addressing the education and training needs of 
the countries covered by  the ENP12.  The  reform  and  modernisation of learning systems is a 
sine qua non condition for the economic competitiveness and the social and political stability 
of partner countries and Tempus Plus could play a crucial role in this respect. 

Several  partners  have  shown  interest  in  participating,  possibly  as  observers,  in  certain  co-
operative or rule-making Community fora. The Action Plans will identify possibilities taking 
into account the legal and administrative situation. 

REGIONAL COOPERATION 

As  outlined  above,  the  ENP  will  be  differentiated  in  its  application  to  different  partner 
countries.  Nevertheless,  it  is  important  to  foster  closer  cooperation  both  across  the  EU’s 
external  borders  and  among  the  EU’s  neighbours  themselves  –  especially  among  those  that 
are  geographically  close  to  each  other.  In  doing  so  it  should  be  kept  in  mind  that  specific 
circumstances in various parts of the EU’s neighbourhood vary, and so does the history of our 
relations.  

EU  support  for  regional  cooperation  in  the  East  and  South,  and  for  concrete  projects 
implemented in these regions, will come from existing EU programmes (Tacis, Meda, Phare) 
or  their  successors,  as  well  as  from  Neighbourhood  Programmes  and,  in  the  future,  the 
European Neighbourhood Instrument.  

Regional cooperation on the EU eastern borders 

Greater  regional  co-operation  in  Eastern  Europe  will  bring  substantial  benefits.  The 
participation  of  the  Russian  Federation  as  a  partner  in  regional  cooperation,  on  the  basis  of 
mutual interest and common will, should be encouraged. 

12 

Communication on the new Generation of Community Education and Training Programmes, after 2006, 
COM(2004) 156 final of 9 March 2004. 

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Initiatives  should  focus  on  issues  of  common  concern,  which  would  benefit  from  a 
multilateral approach. As shown by the experience in other geographical contexts (including 
the Northern Dimension area), regional fora could in many cases offer substantial added value 
to bilateral efforts. Priority cooperation sectors include: 

–  Reinforced  cooperation  on  economy,  business,  employment  and  social  policy,  trade  and 
infrastructure,  including  the  adoption  of  European  and  international  standards,  effective 
implementation of WTO norms and rules and support to SMEs in order to encourage the 
sustainable socio-economic development of the countries in the region, including poverty 
reduction and the fight against social exclusion. Joint infrastructure and security projects of 
regional  relevance  in  the  sectors  of  energy  and  transport  (including  border-crossings) 
should also be considered as highly relevant priorities. 

–  Environment, nuclear safety and natural resources. Trans-boundary by their nature, many 
environmental problems can best be addressed at a regional level. Water and air pollution, 
the  management  of  spent  nuclear  fuel,  the  gradual  harmonisation  of  environmental 
standards and legislation are only some of the selected areas regional cooperation should 
focus on in the short and medium-term. 

–  Justice  and  Home  Affairs,  and  in  particular  regional  cooperation  on  border  management, 
migration  and  asylum,  the  fight  against  organised  crime,  trafficking  of  human  beings, 
illegal immigration, terrorism, money laundering and drugs as well as police and judicial 
co-operation.  Regional  cooperation  and  networking  on  such  issues  could  build  on  the 
experience  gained,  inter  alia,  in  the  framework  of  the  “Söderköping  Process”,  which 
includes  Belarus,  Moldova  and  Ukraine  and,  on  the  EU  side,  Estonia,  Hungary,  Latvia, 
Lithuania, Poland, Romania, Slovakia and Sweden.  

–  People-to-people  issues,  including  civil  society  development,  activities  in  the  fields  of 
media  and  journalists’  exchanges,  promotion  of  good  governance  and  respect  for  human 
rights,  professional,  academic  and  youth  exchanges,  visit  schemes,  cooperation  in  the 
sectors  of  education,  training,  science  and  culture,  twinning  between  local  and  regional 
administrations  as  well  as  civil  society  organisations.  Due  attention  should  be  paid  to 
public health issues and to tackling effectively the spread of communicable diseases such 
as HIV/AIDS and TB.  

The  Council  of  Europe,  the  Baltic  Sea  Council,  the  Central  European  Initiative  (CEI),  the 
Black  Sea  Economic  Cooperation  (BSEC)  and  the  Stability  Pact  have  an  important  part  to 
play, together with Euroregions and cross-border cooperation at the local level.  

Euroregions involve concrete cooperation between regional and local authorities on both sides 
of  the  border,  which  can  in  time  lead  to  substantial  and  effective  links  across  the  borders. 
They can promote common interests and thus strengthen civil society and local democracy as 
well as having beneficial effects on the local economy. 

The  European  Union  is  not  seeking  to  establish  new  bodies  or  organisations,  but  rather  to 
support  existing  entities  and  encourage  their  further  development;  the  importance  of  local 
ownership  is  one  of  the  most  pertinent  lessons  that  can  be  drawn  from  the  Northern 
Dimension. 

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Mediterranean  

Regional and sub-regional co-operation in the Mediterranean, in the context of the European 
Neighbourhood  Policy,  will  build  on  the  ‘acquis’  of  the  Euro-Mediterranean  Partnership  by 
fully integrating a tailor-made approach adapted to each country or group of countries.  

The  Euro-Mediterranean  Partnership  comprises  two  complementary  tracks,  the  bilateral  and 
the regional agenda. 

The  regional  agenda,  fed  by  the  orientations  and  conclusions  of  the  Euro-Mediterranean 
Conferences  of  Foreign  Affairs  Ministers  as  well  as  of  sectoral  Ministerial  Conferences  in 
areas such as Trade, Economy and Finances, Energy, Industry, Environment. It is supported 
by  MEDA  through  the  national  indicative  programmes  for  each  partner  and  the  regional 
indicative programme.  

in 

the  Mediterranean  should  be:  South-South 

The  Commission  will  continue  to  promote  the  regional  dimension  of  the  partnership  with 
significant  financial  support.  In  line  with  the  political  orientations  established  in  the  Euro-
Med  Valencia  and  Naples  Ministerial  Conferences,  the  strategic  priorities  of  regional 
cooperation 
integration;  sub-regional 
cooperation  and  the  harmonisation  of  the  regulatory  and  legislative  environment.  Possible 
areas  for  further  sub-regional  co-operation  will  be  identified  in  the  bilateral  action  plans, 
building also on the Euro-Mediterranean Ministerial Conferences and may include reform of 
the  judiciary,  independence  of  the  media  and  freedom  of  expression  or  promotion  of  equal 
opportunities for women. Proposals for such co-operation would be drawn up on the basis of 
common objectives defined in the action plans and could be presented either by two or more 
neighbouring  countries  or  by  a  group  of  countries  that  would  like  to  further  advance  in  a 
certain policy area.  

Regional and sub regional cooperation will be guided by bilateral action plans, building also 
on the results of Euro-Med ministerial meetings. Activities could be carried out on a regional 
level,  but  also  cross-border  cooperation  between  two  or  more  neighbouring  countries,  and 
even  cooperation  between  countries  that  are  not  sharing  a  common  border  which  pursue 
common interest. Cooperation could include the following priorities areas: 

Infrastructure interconnection projects: Assistance could be given in the planning of networks 
in order to facilitate trade and access to the EU market. Possibilities include new gas networks 
and  connection  projects  between  North  Africa  and  Europe,  as  well  as  electricity 
interconnections and cooperation between Morocco, Algeria, and Tunisia; a gas pipeline from 
Egypt  through  Jordan,  Lebanon,  Syria  to  Turkey  and  the  EU;  electricity  interconnections 
between Israel and Palestinian territories; development  of  a  blueprint  for  sub-regional  inter-
modal  transport  networks  in  the  Maghreb  and  in  the  Near  East,  including  rail  and  road 
infrastructure interconnections and maritime transport; improvements at border crossings and 
ports-hinterland connections. Furthermore, assistance for promoting security projects could be 
provided. 

Environment: Cooperation could be pursued on environmental policy issues and action taken 
to address specific problems where they are better dealt with at regional or sub-regional level, 
such  as  maritime  pollution,  management  of  water  resources  and  waste  prevention,  or 
desertification.  

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Justice and Home Affairs: It is important to improve border management, including short sea-
crossings;  cooperation  between  enforcement  bodies  and  agencies;  cooperation  in  the  fight 
against organised crime and cross-border crime and in civil and commercial judicial matters; 
cooperation in the fight against illegal immigration, and management of legal migration and 
implementation  of  migration  plans  (for  example  with  the  three  central  Maghreb  countries, 
Libya and Egypt); cooperation in the fight against drug trafficking, reduction of drug supply 
and  implementation  of  national  strategies  against  drugs;  cooperation  between  neighbouring 
countries in the effective control of borders by specialised and trained personnel; judicial and 
police cooperation. 

Trade,  regulatory  convergence  and  socio-economic  development:  Cooperation  should 
promote regional economic integration between neighbouring countries or between countries 
willing to co-operate more closely on economic issues in view of the completion of the Euro-
Mediterranean  free  trade  area  and  the  progressive  participation  of  the  more  advanced 
countries  in  the  EU  internal  market.  Regional  trade  and  investment  should  be  encouraged 
through common rules of origin, liberalisation of services, regulatory approximation and trade 
facilitation  instruments,  as  well  as  further  support  to  the  Agadir  process.  The  Action  Plans 
should  also  encourage  the  negotiation  of  Free  Trade  Agreements  in  goods  as  well  as  in  the 
service  sector  between  the  Mediterranean  countries  themselves.  Regulatory  convergence 
between  the  partner  countries  should  also  be  promoted  in  this  context.  Sustainable 
development methodologies and environmental legislation and policy development should be 
included. Dialogue on employment and social policy with a view to identify key challenges 
and  to  promote  policy  responses  should  be  enhanced.  There  could  be  cooperation  on 
standards, veterinary issues, public health, and food safety in order to prepare the ground for 
future agriculture liberalisation negotiations; relevant aspects, such as dealing with infectious 
diseases, would be tackled on a sub-regional basis. 

People-to-people projects will be encouraged, aiming at promoting civil society initiatives in 
support of human rights and democratisation, supporting youth organisations, and promoting 
intercultural  dialogue  through  educational  and  youth  exchanges,  as  well  as  human  resource 
mobility and transparency of qualifications.  

SUPPORTING THE EUROPEAN NEIGHBOURHOOD POLICY 

Existing financial support to ENP Countries 

In recent years, the EU has provided substantial financial support to the countries covered by 
the  European  Neighbourhood  Policy.  Grant  assistance  to  Russia  and  the  WNIS  is  mostly 
provided through the Tacis programme and in the Mediterranean countries through the MEDA 
programme.  Assistance  channelled  through  these  instruments  over  the  period  2000-2003 
amounted to €3716.1 million (A country-by-country overview is provided as an Annex). The 
European Initiative for Democracy and Human Rights (EIDHR), which aims at promoting the 
principles  of  liberty,  democracy,  respect  for  human  rights  and  the  rule  of  law  in  third 
countries,  provides  funding  for  these  activities  primarily  in  partnership  with  NGOs  and 
international  organisations.  Between  2000  and  2003  €19.3  million  have  been  allocated  to 
projects  in  Russia  and  the  Western  NIS  and  €41.4  million  to  projects  in  the  Mediterranean 
countries.  

The  European  Investment  Bank  (EIB)  has  been  providing  loans  to  the  Mediterranean 
countries (€3445 million for the period 2000-2003). Since 2002 lending operations have been 

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extended, with financial support from the EU, to include a private-sector oriented Facility for 
Euro-Mediterranean  Partnership  (FEMIP).  Lending  to  Russia  has  been  open  since  2001 
within  a  specific  mandate,  with  an  overall  ceiling  of  €100  million,  in  the  context  of  the 
Northern Dimension to cover environment projects in North-West Russia.  

Macro  Financial  Assistance  (MFA)  has  been  provided  to  third  countries  facing  exceptional 
balance  of  payments  financing  needs.  Among  the  countries  covered  by  the  European 
Neighbourhood  Policy,  operations  were  approved  in  2002  for  Ukraine  (€110  million)  and 
Moldova (€15 million), but not yet disbursed.  

In the period 2000-2003, the European Union has also provided €277 million of humanitarian 
assistance  to  assist  ENP  countries  confronted  with  emergencies  and  €103.5  million  in  food 
aid.  

Linking the existing instruments to the policy  

The ambitions of the European Neighbourhood Policy must be matched by adequate financial 
and  technical  support.  This  is  reflected  in  the  Commission’s  proposal  for  the  next  financial 
perspectives13,  which  gives  this  policy  high  priority.  The  Commission  has  proposed  that  a 
new set of harmonised instruments will support assistance to third countries, including those 
presently  covered  by  Tacis  and  MEDA.  These  instruments  will  be  designed  in  a  way  to 
support  implementation  of  ENP  and  adequate  financial  resources  will  be  allocated  to  that 
effect. 

A European Neighbourhood Instrument was first envisaged in the Commission’s March 2003 
Communication and further developed in the July 2003 Communication “Paving the Way for 
a New Neighbourhood Instrument”14. In view of the number of legal and budgetary questions 
to be resolved, the Communication set out a two-phase approach. Under this approach, for the 
period  2004-2006,  Neighbourhood  Programmes  based  on  enhanced  co-ordination  among 
existing instruments have been introduced, while after 2006 a new neighbourhood instrument 
will be established. 

Following the July 2003 Communication, resources within existing financial instruments were 
identified  for  the  Neighbourhood  Programmes.  The  total  level  of  funding  for  the  period 
2004-06  under  external  assistance  instruments  is  €255  million  (€  75  million  for  Tacis,  €  90 
million for Phare, € 45 million for CARDS and €45 million for MEDA). Approximately €700 
million  will  be  provided  for  the  corresponding  EU  internal  borders  under  the  Interreg 
programme.  

The Phare-CBC regulation was amended in October 2003 to include the external borders of 
Romania and Bulgaria. The Tacis CBC indicative programme, covering the borders between 
the enlarged EU and Russia, Ukraine, Belarus and Moldova was adopted by the Commission 
in  November  2003.  Work  on  harmonisation  of  procedures  will  be  completed  shortly. 
Programming is well advanced on all borders covered and should be completed by June 2004. 
Joint management structures have been set up. The first calls for proposals will be launched in 
July 2004. 

13 

14 

COM(2004) 101  11  February  2004  “Building  our  Common  Future:  Policy  Challenges  and  Budgetary 
Means of the Enlarged Union 2007-2013”. 
COM(2003) 393, 1 July 2003. 

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Until  2007,  Tacis  and  MEDA  will  remain  the  main  financial  assistance  instruments  for 
partner countries. They will provide support for the European Neighbourhood Policy and in 
particular  for  the  implementation  of  the  Action  Plans.  The  relevant  National  Indicative 
Programmes for 2005-6 are being adapted to reflect ENP priorities. Particular attention will 
be devoted to institution building. Twinning and technical assistance along the lines provided 
by the EU’s Technical Assistance Information Exchange Office (TAIEX) will be extended to 
partner countries.  

Regional  and  cross  border  co-operation  will  continue  to  receive  targeted  Community 
assistance.  The  Regional  Indicative  programmes  of  Meda  and  Tacis  for  2005-2006  provide 
support for the regional dimension of ENP.  

Starting  from  2007,  the  new  European  Neighbourhood  Instrument  will  support  cross  border 
co-operation as well as regional co-operation projects involving both EU member states and 
partner  countries.  In  addition,  the  Economic  Co-operation  and  Development  instrument 
proposed in the Commission’s Communication on the next Financial Perspective will address 
both regional and cross-border co-operation among partner countries. 

EIB  lending  capacity  has  also  been  reinforced.  In  November  2003,  in  the  context  of  the 
mid-term review of the EIB external lending mandate, the Council agreed to the Commission 
proposal to increase the lending ceiling for the Mediterranean countries by € 2,180 million. In 
addition, it was decided to provide for a conditional extension of the EIB lending mandate to 
cover Russia and the Western NIS. The extension will allow the EIB to conclude loans up to 
€500  million  until  the  end  of  2006  without  sectoral  limitation.  The  legal  base  for 
implementing the decision is under preparation. Consultations are ongoing with EIB to ensure 
that  the  need  to  support  ENP  countries  is  adequately  reflected  in  the  next  generation  of 
lending mandates.  

The  European  Neighbourhood  Policy  in  general  and  the  Action  Plans  in  particular  will 
provide  a  guiding  framework  for  other  financial  assistance  instruments.  Whenever  future 
macro  financial  assistance  operations  and  other  operations  pursuing  macro-economic 
objectives are negotiated with the ENP partner countries, the Commission considers that the 
conditionality  element  should  draw  on  the  economic  priorities  and  measures  of  the  Action 
Plans,  ensuring  that  this  type  of  assistance  is  an  additional  incentive  to  pursue  political  and 
economic reform.  

EIDHR  programming  will  also  be  consistent  with  the  policy  goals  while  supporting  civil 
society  in  areas  such  as  democracy,  rule  of  law,  human  rights  and  fundamental  freedoms. 
Work is underway to look into possible support on a regional basis from 2005.  

Consultations  are  also  underway  with  the  European  Bank  for  Reconstruction  and 
Development and other IFIs to ensure better co-ordination of programmes. 

The European Neighbourhood Instrument 

In  its  proposal  for  the  financial  perspective  2007-2013,  the  Commission  includes  the  new 
European Neighbourhood Instrument (ENI) as one of the six financial instruments that should 
operate in the area of external relations after 2006. 

The  European  Neighbourhood  Instrument  will  complement  assistance  provided  under  the 
existing financial instruments or their successors, and will focus specifically on cross-border 

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cooperation  and  related  activities.  The  Commission  intends  to  come  forward  with  a  draft 
regulation as part of its package of proposals for financial instruments which will operate in 
the next financial perspective. 

The  July  2003  Communication  sets  out  three  alternatives  to  be  considered  for  the 
development of the new Neighbourhood Instrument:  

A 

B 

C 

Expanding  the  content  and  geographical  scope  of  an  existing  co-operation 
instrument;  

Creating  a  single  new  Regulation  to  govern  a  Neighbourhood  Instrument  to  fund 
activities both inside and outside the Union; 

Focusing further on co-ordination between already existing instruments.  

Having reviewed the options, the Commission has concluded that option A would not be fully 
in  line  with  the  objective  of  having  a  financial  instrument  combining  external  policy 
objectives  and  economic  and  social  cohesion.  It  also  concluded  that  there  are  limits  to  the 
level of co-ordination that can be achieved among different financial instruments (option C).  

Option B is therefore the option that best responds to the nature of the proposed instrument 
and would allow for efficient implementation overcoming existing co-ordination problems. In 
addition,  although  the  ENI  covers  both  internal  and  external  actions,  the  Commission 
proposes  to  use  a  single  budget  chapter,  drawing  from  the  cohesion  and  external  policies 
headings  of  the  proposed  new  Financial  Perspectives  for  the  full  amount  of  the  instrument. 
The instrument will operate through a single management mechanism and with a single set of 
procedures. 

The legal basis 

There are no relevant legal precedents for an instrument, with a dual nature covering external 
policy and economic and social cohesion within the EU and with the ambition of operating on 
an  equal  footing  on  the  two  sides  of  the  EU’s  external  border.  In  the  Commission’s  view, 
Article  181a  TEC  would  be  the  appropriate  legal  basis  for  the  new  Neighbourhood 
Instrument,  since  it  will  be  an  important  tool  of  EU  policy  towards  the  neighbouring 
countries. As this article concerns co-operation with third countries, it should allow funding of 
actions that are joint in nature and involve beneficiaries from both Member States and partner 
countries.  The  benefits  from  the  results  of  the  actions  will  take  place  in  the  eligible  areas, 
regardless of whether they are situated within or outside the Union's borders. The instrument 
will build on the principles of existing cross-border programmes such as partnership, multi-
annual programming and co-financing.  

Geographical Coverage  

Building  on  the  July  2003  Communication,  the  ENI  will  cover  all  the  borders  between  EU 
Member States on one side, and countries covered by the European Neighbourhood Policy on 
the  other  side.  It  will  also  support  trans-national  co-operation  involving  beneficiaries  in  at 
least  one  Member  State  and  one  partner  country  and  replace  existing  internal  and  external 
cross-border programmes in Member States and partner country regions adjacent to the future 
EU external border.  

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In view of the fact that the ENI will be an instrument particularly adapted to respond to the 
specificity of cooperation across external EU borders, the extension of its geographical scope 
to candidate countries and pre-candidate countries may be considered at the time of drawing 
up the regulation concerned. 

The main elements of the new Neighbourhood Instrument 

The ENI will build on the experience gained in establishing the Neighbourhood Programmes 
for the period 2004-2006. It will focus on the four key objectives identified in the July 2003 
Communication: 

–  Promoting sustainable development in regions on both sides of common borders; 

–  Working  together  through  joint  actions  to  address  common  challenges,  in  fields 
such  as  environment,  public  heath,  and  the  prevention  of  and  fight  against 
organised crime; 

–  Ensuring efficient and secure common borders through joint actions; 

–  Promoting local cross-border "people-to-people" type actions 

Within  this  framework,  it  is  important  to  ensure  that  the  priorities  of  partner  countries  are 
sufficiently taken into account in a spirit of partnership. This is particularly relevant  for the 
Mediterranean Region where priority setting should take into account the strategic framework 
established in the context of the Association Agreements and through the Euro-Mediterranean 
ministerial conferences which are part of the Barcelona process.  

To these ends, the European Neighbourhood Instrument will finance joint projects proposed 
by and for the benefit of partners from both the EU Member States and partner countries. As 
such it will complement external and internal funding instruments able to operate only on one 
side of the Union’s borders.  

The ENI will operate through two separate funding windows: 

Window One will support cross border co-operation. Eligibility will extend to all concerned 
land  and  maritime  borders15.  Programmes  will  primarily  be  bilateral  although  multi-lateral 
programmes  may  be  established  in  particular  over  those  maritime  crossings  where  distance 
and other factors do not allow for efficient bilateral cross-border co-operation. Multi-annual 
programmes will be established for single borders or groups of borders, and will be designed 
by the relevant partners in beneficiary countries on both sides of the border. Management will 
be  delegated  by  the  Commission  to  a  management  body  operating  through  shared 
management or other suitable arrangements. Project selection and programme implementation 
will be carried out through joint structures involving national, regional and local authorities of 
EU Members States and partner countries.  

Window  Two  will  provide  more  flexible  support  for  wider  trans-national  co-operation 
involving  actors  and  beneficiaries  from  both  EU  Member  States  and  partner  countries. 
Co-operation will be mostly focussed on specific themes to be defined in the regulation based 

15 

Co-operation  under  window  one  will  normally  take  place  at  NUTS  III  level  except  for  multilateral 
maritime programmes where co-operation at NUTS II level will be allowed. 

EN 

27 

   EN 

 
                                                 
on  identified  common  challenges  in  fields  such  as  environment,  integration  into  energy, 
telecommunication  and  transport  networks,  public  health  and  the  prevention  of  and  fight 
against organised crime. The Commission will also have the possibility to identify, select and 
propose projects  of  particular  technical and political importance for funding.  Eligibility  will 
cover all the territory of EU Member States and the relevant parts of the territory of partner 
countries. Programming will be centralised in the Commission. Implementation will also be 
centralised,  although  indirect  management  through  delegation  to  external  bodies  such  as 
executive agencies may be considered.  

Budget 

The  Commission  intends  to  propose  a  substantial  increase  in  the  annual  amounts  to  be 
allocated  to  the  instrument  compared  to  those  allocated  during  the  period  2004-2006  to  the 
Neighbourhood Programmes.  

The split in funding between the two Windows will be determined at a later stage, taking into 
account the relative importance of the two types of co-operation, the specific characteristics of 
the  different  borders,  the  desirability  of  having  an  appropriate  balance  in  the  distribution  of 
funding  among  the  geographical  areas  covered  and  the  need  to  limit  direct  Commission 
involvement in implementation and management. In order to eliminate obstacles to absorption 
of funds and reward good performance, provisions will be made to allow for reallocation of 
funds between windows, and within windows, among programmes and projects. 

Financial  allocations  within  Window  One  will  be  determined  by  programme,  covering  a 
single border or a group of borders, on the basis of objective criteria. These allocations will 
also take into account the specific characteristics of the borders, and the potential absorption 
capacity. 

CONCLUSIONS 

The  Commission  invites  the  Council  to  approve  the  orientations  contained  in  the  present 
Communication  and  to  draw  up  conclusions  on  the  way  to  carry  this  initiative  forward, 
addressing the substance of potential action plans and the countries with which they should be 
drawn up, bearing in mind the commitment to shared values. 

On  this  basis,  the  Commission,  with  the  Presidency  and  the  High  Representative,  will  take 
contact with the partner countries concerned, with a view to completing Actions Plans with 
them  before  the  end  of  July  2004.  Member  States  will  be  kept  fully  informed  of  the 
development of these consultations. 

The  Commissions  recommends  that  the  relevant  Association  and  Cooperation  Councils  be 
invited to endorse the Actions Plans. 

Monitoring  the  fulfilment  of  the  Action  Plans  will  take  place  within  the  institutions  of  the 
relevant Association or Partnership and Cooperation Agreements. 

On  the  basis  of  its  assessment  of  the  results  of  this  monitoring  process  and  of  information 
provided  by  partners,  the  Commission,  with  the  contribution  of  the  High  Representative  on 
issues  related  to  political  co-operation  and  the  CFSP,  will  present  a  mid-term  review  of 
progress  achieved  within  two  years  and  a  further  review  within  three  years  of  the  formal 
approval of each Action Plan.  

EN 

28 

   EN 

 
The  Commission  recommends  that  any  decision  concerning  the  further  development  of  the 
EU’s contractual links with each partner be taken in the light of these reviews. 

The Commission will make the necessary proposal to the Council for the establishment of the 
European Neighbourhood Instrument, referred to in this Communication. In the period before 
the  entry  into  force  of  this  instrument,  the  EU  will  continue  to  develop  Neighbourhood 
Programmes with partner countries, in the framework of existing financial instruments. 

The  Commission  will  promote  regional  and  sub-regional  cooperation  involving  partner 
countries, on the basis of the orientations contained in this Communication.  

EN 

29 

   EN 

 
Annex 

MEDA and Tacis Assistance to ENP Partner countries in the period 2000-2003 

Country 

Amount 2000-2003 

Countries covered by Tacis  

Russia 

Ukraine 

Moldova 

Belarus 

Multi-country Programmes 

Total Tacis 

Countries Covered by Meda 

Algeria 

Egypt 

Jordan 

Lebanon 

Morocco 

Syria 

Tunisia 

West bank and Gaza strip 

Regional Programmes 

Total Meda 

Total ENP partner countries 

EN 

M€ 

599.6 

435.6 

46 

10 

241 

1332.2 

181.8 

194.5 

169.4 

55.7 

525.3 

82.7 

306.6 

277.8 

590.1 

2383.9 

3716.1 

30 

   EN 

 
 
 
Main economic indicators 2002  
based on World Bank statistics 

Population (m) 

9.9  

4.3 

48.7 

144.1 

31.3 

66.4 

6.6 

5.2 

4.4 

5.4 

29.6 

17.0 

9.8 

5.2 

3.1 

8.2 

Surface area (in th. of sq. km) 

207.6 

33.9 

603.7 

17075 

2382 

1002 

21.1 

89.2 

10.4 

1760 

446.6 

185.2 

163.6 

69.7 

29.8 

86.6 

Belarus  Moldova 

Ukraine 

Russia 

Algeria 

Egypt 

Israel 

Jordan 

Lebanon 

Libya 

Morocco 

Syria 

Tunisia 

Georgia* 

Armenia* 

Azerbaijan* 

GNI (current US$ in bn) 

13.5  

1.7  

37.9  

306.6  

53.8  

97.6 

105.2 

9.1 

17.7  

GNI (per capita in PPP in intl. m $)  

5500 

1600 

4800 

8080  

5530 

3940  19000 

4180 

4600 

GDP growth (annual %) 

CPI inflation annual average (%) 

4.7 

42.6 

7.2 

5.2 

4.8 

4.7 

4.1 

3.0 

-0.8 

4.9 

0.8 

15.7 

1.4 

2.7 

0.7 

3.5 

1.0 

1.8 

.. 

.. 

-0.2 

-9.8 

34.7  

19.1  

19.5  

3.4 

2.4  

5.8 

3730 

3470 

6440 

2270 

3230 

3010 

3.2 

2.8 

2.7 

1.7 

3 

3.1 

5.6 

5.7 

1.2 

12.9 

10.6 

Central  government  balance,  excl  grants  
(% of GDP) 

0,4 

-0.916 

0.2 

1.417 

0.2 

-7.0 

-6.4 

-10.2 

-13.6 

3.9 

-4.5 

-2.8 

-3.5 

-2.0 

-0.5 

2.8 

-0.5 

Current account balance (% of GDP) 

-2.6 

-6.1 

7.7 

8.6 

7.7 

0.0 

-2.1 

4.9 

-14.5 

-1.2 

2.9 

7 

-3.5 

-6.0 

-6.6 

-12.6 

Trade volume with EU (m €) 

2372 

666 

9722 

78193 

22377 

9586  22002 

2254 

3162 

12607 

13992 

6153 

13629 

500 

401 

1640 

EU Trade Balance with country (m €) 

-646 

137 

1332 

-17264 

-6201 

3097 

4908 

1665 

2792 

-6345 

1402 

-1959 

1539 

78 

82 

-633 

Foreign  direct  investment,  net  inflows  in 
reporting country (current US$, m)  

45318  

117 

693  

4819  

1100 

647  

1600  

55.9  

257  

.. 

428  

225  

794.8 

165 

111 

1400 

Source: World Bank data, in: www.worldbank.org/data/countrydata/countrydata.html, except where indicated otherwise 

∗ The data for CPI, current account balance and general government balance is based on EBRD, 2002 
IMF estimates for Libya 

16 
17 
18 
19 

EBRD general govt balance. 
general govt balance. 
EBRD TRU 2004. 
EBRD. 

EN 

31 
EN 

 
 
 
 
                                                 
KEY INTERNATIONAL CONVENTIONS: STATE OF RATIFICATION 

Belarus  

Moldova 

Ukraine 

Russia 

Algeria 

Egypt 

Israel 

Jordan 

Lebanon 

Libya  Morocco 

Syria 

Tunisia 

Armenia 

Azerbaijan 

Georgia 

United Nations Core Human Rights Conventions 

International 
on 
Economic,  Social  and  Cultural 
Rights  

Covenant 

International  Covenant  on  Civil 
and Political Rights  

Optional 
the 
Protocol 
International  Covenant  on  Civil 
and Political Rights  

to 

Second  Optional  Protocol  to  the 
International  Covenant  on  Civil 
and Political Rights  

International  Convention  on  the 
Elimination  of  All  Forms  of 
Racial Discrimination  

Convention on the Elimination of 
All  Forms  of  Discrimination 
Against Women  

to 

the 
Protocol 
Optional 
Convention on the Elimination of 
All  Forms  of  Discrimination 
Against Women  

1976 

1993 

1976 

1976 

1989 

1982 

1992 

1976 

1976 

1979 

1976 

1976 

1993 

1992 

1994 

1976 

1993 

1976 

1976 

1989 

1982 

1992 

1976 

1976 

1979 

1976 

1976 

1993 

1992 

1994 

1992 

1991 

1992 

1989 

1993 

2002 

1994 

1999 

1999 

1969 

1993 

1969 

1969 

1972 

1969 

1979 

1974 

1971 

1971 

1969 

1969 

1993 

1996 

1999 

1981 

1994 

1981 

1981 

1996 

1981 

1991 

1992 

1997 

1993 

2003 

1985 

1993 

1995 

1994 

s2002 

s2000 

s2001 

2001 

2002 

Convention  Against  Torture  and 
or 
Other  Cruel, 
Degrading 
or 
Punishment  

Treatment 

Inhuman 

1987 

1995 

1987 

1987 

1989 

1987 

1991 

1991 

2000 

1993 

1988 

1993 

1996 

1994 

EN 

32 
EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Belarus  

Moldova 

Ukraine 

Russia 

Algeria 

Egypt 

Israel 

Jordan 

Lebanon 

Libya  Morocco 

Syria 

Tunisia 

Armenia 

Azerbaijan 

Georgia 

to 

Optional 
the 
Protocol 
Convention  Against  Torture  and 
or 
Other  Cruel, 
Degrading 
or 
Punishment  

Treatment 

Inhuman 

Convention  on  the  Rights  of  the 
Child  

to 

Optional 
the 
Protocol 
Convention  on  the  Rights  of  the 
Child  on 
involvement  of 
the 
children in armed conflict  

1990 

1993 

1991 

1990 

1993 

1990 

1991 

1991 

1991 

1993 

1993 

1992 

1993 

1992 

1994 

s2002 

s2000 

s2001 

s2001 

s2000 

s2002 

2002 

2003 

s2003 

2002 

to 

Optional 
the 
Protocol 
Convention  on  the  Rights  of  the 
Child  on  the  sale  of  children, 
child  prostitution 
child 
pornography 

and 

2002 

s2002 

2003 

2002 

s2001 

s2000 

s2001 

2002 

2003 

2002 

s2003 

2002 

1951  Convention  relating  to  the 
Status of Refugees  

1967  Protocol  to  the  Convention 
relating to the Status of Refugees  

S: signed but not ratified 

2001 

2002 

1993 

1963 

1981 

1954 

2001 

2002 

1993 

1967 

1981 

1968 

1956 

1971 

1957 

1993 

1993 

1999 

1968 

1993 

1993 

1999 

Fundamental ILO Conventions on Core Labour Standards: 

Nr 87: Freedom of Association 
and Protection of the Right to 
Organise (1947) 

EN 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

33 
EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Belarus  

Moldova 

Ukraine 

Russia 

Algeria 

Egypt 

Israel 

Jordan 

Lebanon 

Libya  Morocco 

Syria 

Tunisia 

Armenia 

Azerbaijan 

Georgia 

Nr 98: Right to Organise and 
Collective Bargaining (1949)  

Nr 29: Forced Labour (1930)  

Nr 105: Abolition of Forced 
Labour (1957) 

Nr 138: Minimum Age (1973)  

Nr  182:  Worst  Forms  of  Child 
Labour (1999) 

Nr  100:  Equal 
(1951) 

remuneration 

111: 

Nr 
Discrimination 
(Employment  and  Occupation) 
(1958) 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

Council of Europe “Core” Conventions on Human Rights  

European  Convention 
the 
Protection  of  Human  Rights  and 
Fundamental Freedoms 

for 

Protocol  No.6 
ECHR 
concerning  the  abolition  of  the 
death penalty  

to 

the 
European  Convention 
prevention 
and 
inhumane  or  degrading  treatment 
or punishment  

torture 

for 

of 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

S 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

EN 

34 
EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Belarus  

Moldova 

Ukraine 

Russia 

Algeria 

Egypt 

Israel 

Jordan 

Lebanon 

Libya  Morocco 

Syria 

Tunisia 

Armenia 

Azerbaijan 

Georgia 

Framework  Convention  for  the 
Protection of National Minorities  

ECHR 
Protocol  No.13 
concerning  the  abolition  of  the 
death penalty in all circumstances  

to 

R 

S 

R 

R 

R 

NS 

R: Ratified, S: Signed but not ratified, NS: Not signed 

Rome Statute of International Criminal Court 

R 

R 

NS 

NS 

S 

R 

Signed  

Ratified 

08/09/00 

20/01/00 

13/09/00 

28/12/00 

26/12/00 

31/12/00 

07/10/98 

08/09/00 

29/11/00 

01/10/99 

11/04/02 

UN Framework Convention on Climate Change 

Convention 

R 

Kyoto Protocol 

R 

R 

R 

R 

R 

S 

R 

R 

S 

R 

R 

R 

R 

R 

R 

Barcelona Convention for protection of the marine environment and the coastal region of the Mediterranean 

Convention20 

Protocols21 

na: not applicable 

na 

na 

na 

na 

na 

na 

na 

na 

R 

R 

R 

R 

R 

R 

na 

na 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

na 

na 

R 

R 

na 

na 

18/07/99 

05/09/03 

R 

R 

na 

na 

20 
21 

Algeria, Israel, Lebanon, Libya, Morocco, Syria except the 1995 amendments to the Convention. 
Algeria, Israel, Lebanon, Libya, Syria except the Protocol on specially protected areas, except new Emergency Protocol, except amendments to Dumping Protocol, except 
amendments to Land-Based Sources Protocol. 
Egypt except the Protocol on specially protected areas, except amendments to Land-Based Sources Protocol. 
Morocco except the Protocol on specially protected areas, except new Emergency Protocol. 
Tunisia except new Emergency Protocol. 

EN 

35 
EN