Communication from the Commission to the Council and to the European Parliament - Strategy Paper of the European Commission on progress in the enlargement process {SEC(2004) 1199, 1200}
Date: 2004-10-06
Institutions: European Commission
Subjects: Bulgaria, Croatia, Romania, Türkiye, accession criteria, accession negotiations, enlargement of the Union

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.10.2004 
COM(2004) 657 final 

COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT 

Strategy Paper of the European Commission on progress in the enlargement process 

{SEC(2004) 1199, 1200}

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COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT 

Strategy Paper of the European Commission on progress in the enlargement process 

1. 

INTRODUCTION 

The  enlargement  of  the  EU  to  ten  new  Member  States  on  1  May  2004  has  further 
strengthened  the  unity  of  the  European  continent.  The  historical  and  political  arguments  in 
favour of this enlargement are compelling: it enhances peace, prosperity, stability and security 
and has also produced substantial economic benefits. 

Bulgaria and Romania are an integral part of this enlargement process which was launched in 
1997.  Both  countries  are  close  to  completing  the  negotiations.  The  EU’s  objective  is  to 
welcome both countries in January 2007 as members, if they are ready.  

The Commission’s assessment in this year’s Regular Reports confirms that the Union’s pre-
accession strategy with Bulgaria ad Romania has been a success. The transformation process 
in both countries has been accelerated by the prospect of enlargement. The Commission will 
make every effort in order to meet the European Council’s objective to bring the negotiations 
with  Bulgaria  and  Romania  to  a  successful  conclusion  in  2004,  on  the  basis  of  own  merits, 
with a view to signing the Accession Treaty as early as possible in 2005. 

The European Council in June 2004 concluded that accession negotiations with Croatia shall 
begin in early 2005. The Commission sets out below suggestions for a framework for these 
negotiations  building  on  the  experiences  from  the  current  enlargement  process.  It  also 
presents the content of a pre-accession strategy for Croatia including financial instruments.  

In line with the European Council conclusions of December 2002, the Commission assesses 
in a separate document whether Turkey fulfils the Copenhagen political criteria and whether 
accession negotiations should be opened.1 All Western Balkans countries have a perspective 
to  become  candidate  countries.  Already,  the  former  Yugoslav  Republic  of  Macedonia  has 
applied for membership, and upon Council’s request, the Commission is preparing an Opinion 
on that application. 

2. 

BULGARIA AND ROMANIA 

2.1. 

Progress in meeting the membership criteria 

In  the  Regular  Reports,  progress  made  by  Bulgaria  and  Romania  towards  meeting  the 
membership  criteria  is  assessed,  in  terms  of  legislation  and  measures  actually  adopted  or 
implemented.  

1 

Recommendation  of  the  European  Commission  on  Turkey’s  progress  towards  accession,  COM(2004) 
656. 

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This year’s Regular Reports’ assess Bulgaria and Romania’s ability to assume all obligations 
of membership by accession. They evaluate progress made over the last year and also look at 
progress  achieved  by  each  country  since  the  1997  Opinions  and  their  track  record  in 
implementing the commitments made in the negotiations. 

Bulgaria and Romania continue to fulfil the Copenhagen political criteria. Improvements need 
to be made in particular in the reform of their public administration, the functioning of their 
judicial system, and the fight against corruption. 

Bulgaria  and  Romania  fulfil  the  criterion  of  being  a  functioning  market  economy.  The 
continuation  of  Bulgaria’s  reform  path  and  the  vigorous  implementation  of  Romania’s 
structural  reform  programme  should  enable  them  to  cope  with  competitive  pressure  and 
market forces within the Union 

Bulgaria and Romania have continued to make good progress in adopting the acquis and have 
generally fulfilled their commitments made in the negotiations. They are on track to complete 
the required legislative transposition by accession provided that the current pace of progress is 
maintained.  They  need  to  continue  their  efforts  to  develop  sufficient  administrative  and 
judicial capacity to implement and enforce the acquis.  

The conclusions of the Regular Reports on Bulgaria and Romania can be found in Annex 1. 
The Regular Reports point to a number of areas where further improvements need to be made 
in  the  context  of  the  political  and  economic  criteria  and  in  relation  to  the  adoption, 
implementation and enforcement of the acquis. These should be vigorously pursued in order 
to remedy before accession the shortcomings identified.  

2.2. 

Completing the accession process 

The  accession  negotiations  are  well  advanced.  A  framework  to  finance  the  accession  of 
Bulgaria and Romania was defined in spring 2004. This allowed the provisional closure of all 
chapters  with  Bulgaria  in  June  2004.  For  Romania,  three  chapters  remain  to  be  negotiated 
(competition,  environment,  and  justice  and  home  affairs)  as  well  as  parts  of  Chapter  31 
(Other). Additional efforts are needed in particular in the competition chapter as regards state 
aid and in the justice and home affairs chapter as regards judicial co-operation, fight against 
corruption and organised crime, border management.  

In  line  with  the  practice  followed  in  previous  enlargements,  it  will  not  be  possible  to  go 
beyond a certain point in time when considering new acquis in the negotiations. In view of the 
very advanced state of the negotiations and the prospect of signing the Accession Treaty as 
early  as  possible  in  2005,  the  Commission  considers  that  the  negotiations  should  cover  all 
acquis  adopted  and  published  by  1  October  2004.  Bulgaria  and  Romania  should  therefore 
transmit  their  positions  on  all  new  acquis  adopted  until  that  date.  This  would  allow  to  deal 
with any transitional arrangements before the end of the negotiations. 

The results of the accession negotiations in terms of agreed transitional arrangements and the 
technical  adaptations  to  the  acquis  as  a  result  of  enlargement  will  be  embodied  in  an 
Accession Treaty. Work on the drafting of this Treaty started in July 2004.  

Once the text of the Treaty has been agreed by all parties, in accordance with Article 49 of the 
EU Treaty, the Commission will issue its Opinion. The European Parliament will be asked to 
give  its  assent,  followed  by  a  decision  of  the  Council  on  the  admission  of  Bulgaria  and 

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Romania. The objective is to sign the Accession Treaty as early as possible in 2005 in order 
for it to enter into force on 1 January 2007. After the signature, the Treaty will be submitted 
for ratification by the present and future Member States. 

The  Commission  considers  that  the  decision  making  procedures  concerning  requests  from 
Bulgaria or Romania for transitional arrangements on acts of the institutions adopted between 
1 October 2004 and the date of accession should be streamlined to ensure a smooth transition 
from  pre-  to  post-accession  decision  making.  In  addition,  active  observer  status  in  the 
Council,  in  committees  presided  over  by  the  Commission  as  well  as  in  other  institutions  as 
appropriate would be granted as from the signature of the Treaty. 

The  Commission  is  closely  monitoring  how  Bulgaria  and  Romania  are  meeting  their 
commitments  made  in  the  negotiations.  It  is  highly  important  that  these  commitments  are 
implemented  as  foreseen.  The  Commission  will  therefore  continue  its  intensive  monitoring 
after the conclusion of the negotiations.  

Building  on  the  analysis  in  Regular  Reports,  the  Commission  will  monitor  progress  by 
making  intensive  use  of  the  Association  Agreements  structures,  and  all  other  monitoring 
instruments  including  peer  reviews.  As  from  November  2005,  the  Commission  will  issue 
yearly comprehensive monitoring reports, covering all acquis chapters, public administration, 
judiciary and fight against corruption as well as the track record in economic reforms. 

Any  delays  or  problems  in  economic  reform  or  in  the  fulfilment  of  commitments  will  be 
signalled  by  the  Commission,  in  particular  through  early  warning  letters  at  a  political  level 
and  reported  to  the  Council  on  the  basis  of  current  procedures.  For  cases  of  serious 
shortcomings,  the  Accession  treaty  will  contain  three  safeguard  clauses  as  a  last  resort 
mechanism (general economic, internal market and justice and home affairs).  

Moreover,  as  the  period  between  the  end  of  the  negotiations  and  Bulgaria  and  Romania’s 
expected date of accession is likely to be long, and given the large number of commitments 
that still need to be fulfilled, the Commission considers that the Accession Treaty should as a 
precautionary  measure  contain  a  specific  safeguard.  This  safeguard,  already  agreed  in  the 
negotiations  with  Bulgaria,  should  be  extended  to  Romania  as  well.  It  would  allow  the 
Commission  to  recommend  to  the  Council  at  any  time  before  the  entry  into  force  of  the 
Accession Treaty to postpone the envisaged date of accession of Bulgaria or Romania by one 
year  to  January  2008  if  there  is  clear  evidence  that  there  is  a  serious  risk  that  Bulgaria  or 
Romania will be manifestly unprepared to meet the requirements of membership by 1 January 
2007 in a number of important areas.  

Up  until  accession,  the  Union  will  continue  to  help  Bulgaria  and  Romania  in  their 
preparations  for  membership  through  the  pre-accession  strategy.  This  includes  significant 
financial assistance to support both countries in taking the remaining steps necessary to fully 
meet the accession criteria.  

2.3. 

After joining the Union 

The  process  of  considerably  reinforcing  administrative  and  judicial  capacity  will  need  to 
continue after Bulgaria and Romania join the Union. Therefore the Commission proposes to 
make  available  a  special  transition  facility  for  institution  building.  In  this  context,  certain 
Community financed instruments which have proven their usefulness, such as twinning, will 
continue to be used. 

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In accordance with the EU Treaty, Bulgaria and Romania will not immediately adopt the euro 
upon  accession.  Similarly,  as  regards  the  application  of  the  Schengen  acquis,  the  lifting  of 
internal border controls will only occur some time after accession and will be decided for each 
new Member State separately once they fulfil the Schengen acquis. 

Bulgaria  and  Romania  will  need  to  apply  to  join  the  European  Economic  Area  (EEA)  and 
their accession to the EEA should take place at the same time as their accession to the EU. 
Other international agreements will have to be adjusted as a result of enlargement as soon as 
the Accession Treaty is signed. 

2.4. 

Conclusions 

This year’s Regular Reports show that Bulgaria and Romania have made further progress in 
implementing  the  Copenhagen  criteria.  Bulgaria  and  Romania  fulfil  the  political  criteria. 
Bearing  in  mind  the  progress  achieved  by  both  countries,  the  track  record  in  implementing 
their  commitments,  and  taking  into  account  their  preparatory  work  in  progress,  the 
Commission expects these countries to fulfil the economic and acquis criteria and to be ready 
for membership by 1 January 2007.  

The Commission will make every effort in order to meet the European Council’s objective to 
bring the negotiations with Bulgaria and Romania to a successful conclusion in 2004, on the 
basis of own merits, with a view to signing the Accession Treaty as early as possible in 2005. 

3. 

CROATIA 

3.1. 

Pre-accession strategy 

The  Brussels  European  Council  in  June  2004  concluded  that  Croatia  is  a  candidate  country 
with which accession negotiations will start in early 2005 and requested the Commission to 
prepare  a  pre-accession  strategy  for  Croatia.  The  Commission  considers  that  the  reinforced 
pre-accession  strategy  for  candidate  countries  decided  by  the  European  Council  in 
Luxembourg in December 1997 should be extended to Croatia. The elements of this strategy 
are outlined below. 

The review procedure aimed at assessing candidate countries’ progress towards membership 
will start to be applied to Croatia as of 2005. This will mean that the Commission will start 
issuing Regular Reports on Croatia as from autumn 2005. In the context of the Stabilisation 
and Association Process, the Commission has already proposed a European Partnership, based 
on the findings of its Opinion on Croatia’s application for membership. This document will 
guide Croatia’s accession preparations. 

Croatia  as  a  candidate  country  should  benefit  from  all  three  pre-accession  financial 
instruments:  Phare  for  institution-building  and  economic  and  social  cohesion,  ISPA  for 
environment  and  transport,  and  SAPARD  for  rural  development.  The  Commission  will 
propose amendments to the regulations for these three pre-accession instruments in order to 
extend  their  scope  to  Croatia  as  of  1  January  2005.  Taking  into  account  the  needs  for  an 
adequate preparation of Croatia for accession, the Commission recommends that €105 million 
(€80 million for Phare and €25 million for ISPA) are allocated to Croatia in 2005 and €140 
million in 2006 (€80 million for Phare, €35 million for ISPA, and €25 million for SAPARD). 
These amounts will be financed out of the pre-accession funds available under heading 7 of 

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the current financial perspectives. The Commission has proposed to Council to create a new 
pre-accession  instrument  (IPA),  from  which  Croatia  would  benefit  from  2007  onwards, 
building on the present pre-accession instruments Phare, ISPA and SAPARD. The amounts to 
be allocated to Croatia from 2007 onwards will be decided in the context of the next financial 
perspective. 

The Stabilisation and Association Agreement (SAA) signed with Croatia in October 2001 has 
now  been  ratified.  In  order  to  implement  the  trade-related  aspects  of  the  SAA,  an  Interim 
Agreement  entered  into  force  in  March  2002.  A  Stabilisation  and  Association  Council, 
Committee and Sub-Committees will be set up. The Commission proposes that the structures 
of the SAA be used not only to cover issues related to the implementation of the agreement, 
but  also  to  serve  as  forums  for  the  explanation  of  the  acquis  and  review  progress  made  by 
Croatia in the alignment of the acquis in line with commitments taken in the negotiations. 

The  framework  agreement  allowing  Croatia’s  participation  in  Community  programmes  and 
agencies  should  come  into  force  in  the  first  half  of  2005,  after  ratification  by  the  EU 
institutions  and  Croatia.  Croatia’s  financial  contribution  to  each  programme  can  be  partly 
funded by Phare. 

In  addition  to  the  above  mentioned  elements  for  a  reinforced  pre-accession  strategy,  the 
Commission  considers  that  an  enhanced  political  dialogue  with  Croatia  should  continue  in 
order to tackle the issues highlighted in the Opinion. Such issues include the relations with the 
International Criminal Tribunal for the former Yugoslavia, minority rights, return of refugees, 
judiciary reform, regional co-operation and the fight against corruption. In particular, Croatia 
needs to remain committed to regional cooperation within the framework of the Stabilisation 
and Association Process for the Western Balkans. The Commission will closely monitor these 
issues in regular meetings with the Croatian authorities and will keep the Council informed. 

3.2. 

The negotiating framework 

The  Brussels  European  Council  in  June  2004  decided  that  “in  advance  of  negotiations  with 
Croatia,  the  Council  will  agree  a  general  negotiating  framework,  taking  full  account  of  the 
experience  of  the  fifth  enlargement  process”.  The  Commission  suggests  that  the  framework 
should build on the following principles: 

•  The negotiations with Croatia should be guided by the conditions for accession as defined 
at  the  Copenhagen  European  Council  in  1993.  These  conditions  are  adequate  tools  for 
measuring a candidate country’s preparedness for meeting the obligations of membership, 
and provide for clear guidance in the reform process.  

•  Progress  in  the  negotiations  will  be  fully  dependent  on  the  sustainability  of  political 
reforms and Croatia’s fulfilment of its obligations in respect of regional cooperation with 
the other countries of former Yugoslavia and other related international obligations such as 
cooperation with ICTY.  

•  In  line  with  the  Treaty  on  European  Union  and  the  Constitution  for  Europe,  the 
Commission  will  recommend  the  suspension  of  negotiations  in  the  case  of  a  serious  and 
persistent  breach  of  the  principles  of  liberty,  democracy,  respect  for  human  rights  and 
fundamental  freedoms  and  the  rule  of  law  on  which  the  Union  is  founded.  The  Council 
should  be  able  to  decide  on  such  recommendation  by  a  qualified  majority  of  Member 
States. 

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•  The  negotiations  will  be  conducted  on  the  principle  of  own  merits.  Any  transitional 
arrangements  should  be  limited  in  scope  and  time  and  not  have  significant  impact  on 
competition or the functioning of the internal market.  

•  Immediately  after  the  formal  opening  of  the  accession  negotiations  with  Croatia,  the 
Commission will organise a formal process of examination of the acquis, called screening, 
in order to explain it to the Croatian authorities and to obtain preliminary indications of the 
issues that will most likely come up in the negotiations.  

•  Once a chapter has been screened, the Commission will, building on its recent Opinion on 
Croatia, recommend opening it for negotiations provided Croatia is sufficiently prepared.  

•  Croatia’s  correct  transposition  and  implementation  of  the  acquis  including  effective  and 
efficient  application  through  appropriate  administrative  and  judicial  structures  will 
determine the pace of negotiations.  

•  The  Commission  will  propose  to  the  Council  benchmarks  for  each  chapter’s  provisional 
closure ahead of the opening of negotiations under that chapter. These benchmarks could 
refer  to  legislative  alignment  or  to  a  satisfactory  track  record  in  implementation.  This 
approach has proved to be successful notably in the competition chapter.  

•  Progress in the negotiations will be dependent on Croatia’s fulfilment of its commitments 
under  the  Stabilisation  and  Association  Agreement,  in  particular  those  that  mirror 
requirements  under  the  acquis  for  example  in  the  field  of  competition.  Any  such 
commitment needs to be fully met before a chapter can be provisionally closed. 

•  The Commission will carefully monitor Croatia’s progress towards accession making use 

of all available instruments. 

4. 

CONCLUSIONS AND RECOMMENDATIONS 

In  the  light  of  the  above,  the  Commission’s  conclusions  and  recommendations  are  the 
following:  

(1) 

(2) 

This  year’s  Regular  Reports  show  that  Bulgaria  and  Romania  have  made  further 
progress over the last year in implementing the accession criteria. 

Bulgaria  and  Romania  fulfil  the  political  criteria.  Bearing  in  mind  the  progress 
achieved by these countries, the track record in implementing their commitments, and 
taking into account their preparatory work in progress, the Commission expects these 
countries to fulfil the economic and acquis criteria and to be ready for membership by 
January 2007.   

The  Commission  will  make  every  effort  in  order  to  meet  the  European  Council’s 
objective  to  bring  the  negotiations  with  Bulgaria  and  Romania  to  a  successful 
conclusion in 2004, on the basis of own merits, with a view to signing the Accession 
Treaty as early as possible in 2005. 

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(3) 

(4) 

(5) 

The Regular Reports point to a number of areas where further improvements need to 
be made in the context of the political and economic criteria and in relationship to the 
adoption, implementation and enforcement of the acquis. These should be vigorously 
pursued in order to remedy before accession the  shortcomings identified.  In  order to 
analyse progress and to facilitate successful membership of the European  Union,  the 
Commission will conduct an enhanced monitoring and regularly report to the Council. 
The Commission will issue as from November 2005 yearly comprehensive monitoring 
reports for the Council and the Parliament. The Commission considers that a specific 
safeguard  needs  to  be  introduced  in  the  Accession  Treaty  which  would  allow  the 
Commission to recommend to the Council to postpone the date of accession of either 
Bulgaria or Romania by one year to January 2008 if there is clear evidence that there 
is a serious risk that Bulgaria or Romania will be manifestly unprepared to meet the 
requirements of membership by 1 January 2007 in a number of important areas.  

The  Commission  recommends  extending  to  Croatia  the  reinforced  pre-accession 
strategy  for  candidate  countries  decided  by  the  European  Council  in  Luxembourg  in 
December 1997, as outlined above. 

The Commission recalls that the European Council has decided to begin negotiations 
with  Croatia  early  in  2005  and  suggests  that  the  negotiating  framework  for  Croatia, 
building on the principles outlined in this paper, is finalised to that end. 

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ANNEX: CONCLUSIONS OF THE REGULAR REPORTS ON BULGARIA AND ROMANIA 

Bulgaria 

Since  the  Commission  concluded  in  its  1997  Opinion  that  Bulgaria  fulfilled  the  political 
criteria,  the  country  has  further  consolidated  and  deepened  the  stability  of  its  institutions 
guaranteeing  democracy,  the  rule  of  law,  human  rights  and  respect  for  and  protection  of 
minorities. This trend has been confirmed over the past year. Bulgaria continues to fulfil the 
political criteria. 

Tangible  progress  was  made  in  public  administration  reform  with  the  adoption  of 
amendments  to  the  Civil  service  law.  The  specific  structures  for  co-ordinating  European 
integration  continue  to  function  well,  and  in  view  of  Bulgaria’s  aim  of  building  a  qualified 
and efficient  civil service  by the time of accession this progress needs to spread throughout 
the  public  administration.  Also,  interdepartmental  coordination  should  improve.  Attention 
should be given to the legal framework for local and regional administration, which will play 
an important role in the implementation of the acquis. 

Building  on  important  reforms  of  the  judiciary  system  achieved  in  recent  years,  there  have 
been positive  developments  with regard to the recruitment and appointment of judges. Still, 
certain  key  parts  of  the  reform  of  the  judiciary  remain  to  be  adopted.  The  complexity  and 
efficiency of the penal structures, in particular in the pre-trial phase, is a matter of concern. 
Strong efforts will be necessary to foster Bulgaria’s capacity to prosecute organised crime and 
corruption, which involves further reforms in the structures of the judiciary and of the police.  

Bulgaria  has  implemented  several  measures  in  the  fight  against  corruption,  but  it  remains  a 
problem. Renewed efforts are needed, including tackling high level corruption.  

Bulgaria  continues  to  respect  human  rights  and  fundamental  freedoms.  Further  progress 
should  be  pursued  in  specific  areas  to  improve  their  implementation  in  practice. 
Comprehensive  legislation  on  anti-discrimination  was  adopted  but  the  independent  body 
required  by  the  law  has  not  yet  been  established.  The  freedom  of  expression  is  ensured  by 
law. However, the legal framework regarding libel and defamation by journalists needs to be 
revised. Efforts to address inadequate living conditions in certain prisons and problems of ill-
treatment in custody need to be sustained. Trafficking in human beings is a serious problem 
and  needs  to  be  addressed.  A  new  law  on  public  health  should  address  most  of  the  issues 
related  to  the  placement  of  mentally  disabled  people.  The  structures  responsible  for  child 
welfare and their co-ordination with the relevant ministries need to be reinforced. 

Efforts have been made in the past years to develop a framework to tackle the problems faced 
by  minorities,  but  the  situation  on  the  ground  has  not  evolved  much.  Sustained  efforts 
including  allocation  of  appropriate  financial  resources  will  be  necessary  to  effectively 
implement the intentions and to combat in particular anti-Roma prejudice.  

The  1997  Opinion  already  acknowledged  the  substantial  reform  efforts  undertaken  by  the 
Bulgarian authorities to transform their economy. Since the Opinion economic structure and 
performance  have  significantly  improved.  Macroeconomic  stability  has  been  achieved  soon 
after  the  Opinion,  profound  economic  reforms  have  been  carried  out  over  the  entire  period 
while the Bulgarian authorities’ commitment to the economic requirements of EU accession 
has been sustained.  

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Hence, it is concluded that Bulgaria is a functioning market economy. The continuation of its 
current  reform  path  should  enable  Bulgaria  to  cope  with  competitive  pressure  and  market 
forces within the Union.  

Improvements can be made in sustaining macroeconomic stability and in deepening structural 
reforms.  The  current  account  deficit  has  widened  substantially  in  2003  and  could,  if 
continuing,  warrant  a  further  policy  response.  The  business  environment,  in  particular  the 
efficiency of the administrative and judicial system as well as regulatory procedures, should 
be further improved to increase Bulgaria’s attractiveness for investment. In spite of significant 
achievements, privatisation still needs to be completed. While the legal framework is largely 
in place, the actual restructuring and liberalisation of the network industries need to progress 
further  in  order  to  enhance  competition  and  efficiency.  The  ongoing  reduction  in 
unemployment should be further supported by reducing rigidities in labour market regulation. 

Since  the  Opinion,  Bulgaria  has  made  good  progress  in  adopting  the  acquis  and  more 
recently,  has  also  made  progress  in  gradually  building  up  the  administrative  capacity  to 
implement and effectively enforce the acquis. 

Over the past year, Bulgaria has made further progress in the vast majority of the chapters of 
the acquis and is on track to complete the required legislative transposition before the planned 
date of accession if the current pace of progress is maintained. 

Overall, Bulgaria has now achieved a reasonable degree of alignment with the acquis in the 
large majority of areas. It is also on track in developing adequate administrative capacity to 
implement the acquis in a considerable number of fields. Bulgaria has established most of the 
necessary institutional structures. Nevertheless, in some sectors, further efforts and resources 
are  required  to  strengthen  the  capacities  of  these  institutions  and  to  ensure  their  effective 
functioning. In order to cover the remaining gaps, due attention should be given to the full and 
timely  implementation  of  the  strategies  and  action  plans  for  the  reinforcement  of 
administrative capacity already approved in these areas.  

In  the  field  of  internal  market,  Bulgaria  has  continued  to  make  progress  in  most  areas  as 
regards  the  free  movement  of  goods  in  terms  of  transposition  of  the  acquis  and  the 
development of the administrative capacity. However, further efforts are required to develop 
the  administrative  capacity  to  implement  the  acquis  on  industrial  products  and  as  regards 
foodstuff  and  food  safety.  Mutual  recognition  clauses  are  still  to  be  introduced  into  the 
Bulgarian legislation falling under the non-harmonised areas. Alignment of the legislation on 
public  procurement  needs  to  be  completed.  As  regards  free  movement  of  persons,  some 
progress was made in the field of mutual recognition of professional qualifications but work is 
still needed on the framework legislation for mutual recognition and with regard to the future 
co-ordination of social security systems. As regard the right for establishment and the freedom 
to provide services, efforts are required to unequivocally eliminate the remaining restrictions 
and  discriminatory  measures  on  foreigners  despite  some  corrective  actions.  As  regard 
financial services, major parts of the acquis on insurance remain to be transposed. In the area 
of free movement of capital, Bulgaria still has to adopt legislation on capital movements and 
payment  systems.  Efforts  to  improve  the  framework  in  the  fight  against  money  laundering 
should be maintained.  

As regards company law, particular attention should be paid to the effective enforcement of 
industrial and intellectual property rights, in particular through strengthening border controls 
and improving co-ordination between the law enforcement bodies. In the area of competition, 

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Bulgarian  has  further  updated  its  legislative  framework  and  further  strengthened  its 
administrative  capacity.  Sustained  efforts  are  required  in  order  to  continue  to  improve  the 
quality of its State aid enforcement. 

Regarding  agriculture,  Bulgaria  has  continued  to  make  good  progress  in  the  transposition 
process.  Further  strengthening  of  administrative  structures  has  been  noted.  However, 
significant  work  is  still  needed  in  the  veterinary  field  and  in  the  setting  up  of  the  paying 
agency  and  IACS.  With  regard  to  fisheries,  legal  alignment  has  taken  place  according  to 
schedule.  However,  further  progress  has  to  be  made  regarding  the  administrative  and 
technical capacity for inspection and control.  

As  regard  transport,  Bulgaria  has  made  steady  progress  in  transposing  the  acquis  in  most 
sectors,  however  administrative  capacity  should  be  further  strengthened.  Further  efforts  are 
needed  to  align  the  inland  waterway  legislation.  Particular  attention  should  be  devoted  to 
improving  the  maritime  safety  record  and  to  the  building  up  and  reinforcement  of  the 
necessary capacities and structures for Port State and Flag State control.  

In the area of taxation, Bulgaria’s indirect legislation is to a significant extent aligned with the 
acquis, notably as far as VAT is concerned. Further transposition is required as regards excise 
duties  and  direct  taxation.  Efforts  should  continue  as  concerns  specifically  interconnectivity 
with EU systems.  

On  social  policy  and  employment,  progress  has  continued  in  alignment  with  the  acquis. 
Further  efforts  for  the  effective  implementation  of  the  transposed  legislation  need  to  be 
undertaken  in  particular  in  the  areas  of  labour  law,  occupational  safety  and  health,  public 
health, anti-discrimination as well as equal opportunities for women and men. Administrative 
capacity  needs  to  be  strengthened,  inter  alia  with  regard  to  ESF  management  and 
implementation.  

Regarding  energy,  Bulgaria  is  making  good  progress  in  its  legislative  alignment  and  in  its 
preparation  to  the  internal  energy  market.  The  restructuring  and  privatisation  of  the  energy 
sector is progressing well but particular efforts are still needed to improve energy efficiency 
and  the  use  of  renewable  energy.  Bulgaria  must  continue  to  respect  its  commitments  on 
nuclear  safety,  notably  as  regards  closure  commitments  for  certain  units  of  the  Kozloduy 
nuclear power plant, and to ensure a high level of nuclear safety in its installations. 

Although a reasonable degree of alignment with acquis in the telecommunications has been 
reached,  Bulgaria  needs  to  adopt  further  implementing  legislation  and  ensure  that  the 
regulatory body is strengthened.  

Concerning  regional  policy  and  co-ordination  of  structural  instruments,  Bulgaria  has  made 
progress notably with regard to establishing the legal framework and designating institutional 
structures.  However,  considerable  efforts  are  still  needed  to  improve  the  administrative 
capacity  in  key  Ministries  and  improving  the  capacity  of  other  relevant  bodies,  such  as  the 
intermediate  bodies,  and  other  relevant  players  both  at  central  and  regional  level.  Priority 
must  also  be  given  to  the  setting  up  of  efficient  and  integrated  monitoring  and  evaluation 
systems  as  well  as  to  further  improving  the  financial  management  and  control  systems. 
Attention  must  be  paid  to  observance  of  an  ambitious  planning  schedule  for  the  National 
Development  Plan  and  to  the  full  involvement  of  relevant  partner  organisations  in  this 
process. 

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With regard to the environment, Bulgaria has achieved a reasonable degree of alignment with 
the  acquis  and  the  necessary  administrative  structures  are  in  place.  However,  further 
strengthening of the enforcement authorities notably at regional and local level is required as 
well as the provision of adequate financial resources for State and private sector investment.  

In  the  area  of  consumer  and  health  protection,  a  reasonable  degree  of  alignment  with  the 
acquis has been reached in the area of safety related measures. However, further alignment is 
particularly needed with regard to the non-safety related measures and Bulgaria should ensure 
that  the  administrative  structures  in  place  can  effectively  enforce  legislation  and  carry  out 
market surveillance activities.  

In the area of justice  and  home affairs, further  good progress could be noted  as  regards the 
management of the future external borders. However, significant further efforts are needed to 
strengthen the law enforcement capacity and policy formulation in order to step up the fight 
against organised crime and corruption. Bulgaria needs to press ahead and dedicate adequate 
resources to fundamental reforms of the police and of the judiciary, including the reform of 
the pre-trial phase and the implementation of the strategies against crime. Overall, the full and 
timely implementation of the main strategies and action plans in the area of justice and home 
affairs, together with the entry into force of the planned amendments to the legislation on the 
penal procedure, legal aid, asylum, mediation and forfeiture of criminal assets should address 
the bulk of the issues covered in this chapter. 

Regarding  customs,  Bulgaria  has  achieved  a  high  degree  of  legislative  alignment  and  has 
improved  its  administrative  capacity.  Efforts  should  continue  in  the  IT  area  as  well  as  to 
further improve revenue-collection and controls.  

Further progress has been made in strengthening financial control in Bulgaria. More effort is 
needed  to  ensure  the  protection  of  the  EC  financial  interests  and  of  the  euro  against 
counterfeiting, as to well as to further strengthening the administrative capacity to implement 
sound financial control systems. 

Overall, the capacity of the law enforcement and regulatory bodies to ensure a level playing 
field  within  the  internal  market  through  effective  implementation  and  enforcement  of  the 
acquis  must  be  enhanced.  The  continued  reinforcement  of  the  judicial  system  and 
administrative  structures  in  certain  areas  will  require  particular  attention,  notably  as  regards 
public procurement,  competition and  justice and home affairs. Bulgaria should  devote  more 
efforts and financial resources to make the necessary investments to apply the acquis, notably 
in  agriculture  (in  particular  in  the  veterinary  field),  transport  and  environment.  Continued 
efforts are required to establish the necessary administrative capacity to ensure the sound and 
efficient management of EU funds, notably the Structural Funds. 

In  the  accession  negotiations,  all  31  chapters  have  been  provisionally  closed.  The 
commitments  made  in  the  negotiations  are  with  a  view  to  accession  in  2007.  Bulgaria  is 
generally meeting the commitments that it has made during the negotiations although delays 
have been noted in specific areas. 

Bearing  in  mind  the  progress  achieved  since  the  Opinion,  the  level  of  alignment  and 
administrative capacity that Bulgaria has achieved at this point in time and its track record in 
implementing the commitments that it has made in the negotiations, and taking into account 
their  preparatory  work  in  progress,  the  Commission  expects  Bulgaria  to  assume  the 

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obligations of membership in accordance with the envisaged timeframe. In the period leading 
up to accession, Bulgaria needs to continue its preparations, in line with the commitments it 
has made in the accession negotiations. 

Romania 

Since  the  Commission  concluded  in  its  1997  Opinion  that  Romania  fulfilled  the  political 
criteria,  the  country  has  further  consolidated  and  deepened  the  stability  of  its  institutions 
guaranteeing  democracy,  the  rule  of  law,  human  rights  and  respect  for  and  protection  of 
minorities.  This  trend  has  accelerated  over  the  past  year.  Romania  continues  to  fulfil  the 
political criteria. 

Progress  was  made  to  address  the  need  for  administrative  and  judicial  reforms.  A  public 
administration reform strategy was launched in May 2004, covering the area of civil service 
reform,  decentralisation  and  deconcentration,  and  policy  co-ordination.  A  positive  start  was 
made  to  the  reform  of  the  civil  service.  The  establishment  of  the  Chancellery  of  the  Prime 
Minister should help to improve policy coordination and consistency. The use of emergency 
ordinances  was  restricted  to  “extraordinary  circumstances”,  but  this  has  not  yet  led  to  a 
decrease  of  their  use.  The  laws  on  the  freedom  of  information  and  transparency  in  the 
legislative  process  should  still  be  fully  implemented.  The  revision  of  the  Constitution  in 
October 2003 contributed to streamlining the parliamentary process by giving both chambers 
primary responsibility for different types of legislation. Efforts to improve the policy-making 
and legislative process should continue. Further efforts are also needed to strengthen local and 
regional  governance  with  a  view  to  ensuring  proper  implementation  of  the  acquis  at  those 
levels. 

The  management  of  court  cases  and  the  quality  of  judgments  needs  to  improve.  Official 
surveys  confirm  the  possibility  for  the  executive  to  influence  the  outcome  of  judicial 
proceedings.  However,  organisational  and  legislative  changes  introduced  in  Romania’s 
judicial system should help to make it more independent and efficient. Their implementation 
on the ground is a matter of priority.  

Corruption  in  Romania  continues  to  be  serious  and  widespread.  Romania’s  anti-corruption 
legislation  is  generally  well  developed,  but  its  ability  to  curb  corruption  will  depend  on  the 
effective implementation of the law. In particular, additional efforts are required to ensure the 
independence,  effectiveness  and  accountability  of  the  National  Anti-Corruption  Prosecution 
Office. It should concentrate its resources on investigating high-level corruption. 

Romania continues to respect human rights and fundamental freedoms and has made further 
progress in several areas. The introduction of national standards for child protection services 
and  of  strict  rules  on  inter-country  adoption,  which  appear  to  be  in  line  with  the  UN 
Convention  on  the  rights  of  the  child,  should  further  improve  the  protection  of  children’s 
rights. As regards freedom of expression, the legal situation of journalists has improved but 
the  economic  situation  of  many  mass  media  organisations  remains  precarious  and  further 
efforts  are  necessary  to  guarantee  media  independence.  Although  the  restitution  of 
agricultural  land  is  almost  completed,  a  more  speedy  and  transparent  approach  is  needed  to 
further the restitution of buildings and religious property. Efforts to address the problems of 
ill-treatment  in  custody,  trafficking  in  human  beings  and  prison  overcrowding  should  be 
sustained. 

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The  Roma  Strategy,  which  is  explicitly  aimed  at  addressing  discrimination,  is  being 
implemented but de facto discrimination against the Roma minority remains widespread. The 
support  for  an  inclusive  approach  to  education  is  a  positive  development.  The  same 
encouraging trend has been noted in health care and employment. 

The  1997  Opinion  already  acknowledged  the  substantial  reform  efforts  undertaken  by  the 
Romanian authorities to transform their economy. Since the Opinion economic structure and 
performance  have  significantly  improved.  Macroeconomic  stability  has  been  achieved, 
profound  economic  reforms  have  been  carried  out  while  the  Romanian  authorities’ 
commitment to the economic requirements of EU accession has been sustained.  

Hence, it is concluded that Romania complies with the criterion of being a functioning market 
economy.  Vigorous  implementation  of  its  structural  reform  programme  should  enable 
Romania to cope with competitive pressure and market forces within the Union. 

Improvements can be made in sustaining macroeconomic stability and in deepening structural 
reforms. Priority should be given to preserve the momentum in disinflation and safeguard the 
sustainability  of  the  external  position  by  maintaining  a  prudent  policy  mix  and  by  further 
reducing the deficit of the broader public sector. To achieve this, significant improvements in 
enforcing financial discipline, continuous adjustments of energy prices towards cost recovery 
levels and improved financial performance of public enterprises are vital. Fiscal sustainability 
needs  to  be  strengthened  by  advancing  expenditure  reform  and  further  improving  tax 
compliance. The privatisation process should be accomplished, post-privatisation disputes be 
settled  and  non-viable  enterprises  more  actively  dismantled.  In  key  sectors,  such  as  energy, 
mining  and  transport,  perseverance  in  restructuring  and  a  more  manifest  strive  for 
privatisation should go hand in hand. Substantial progress in the functioning of the judiciary 
and  the  public  administration,  including  an  even  and  predictable  application  of  law,  is 
required to create an enabling business environment with a level playing field. 

Since  the  opinion,  Romania  has  made  good  progress  in  adopting  the  acquis  and  more 
recently,  has  also  made  progress  in  gradually  building  up  the  administrative  capacity  to 
implement and effectively enforce the acquis. 

Over the past year, Romania has made further progress in the vast majority of the chapters of 
the acquis and is on track to complete the required legislative transposition before the planned 
date of accession if the current pace of progress is maintained.  

Overall, alignment with the acquis has reached a fair level in the large majority of areas. The 
administrative capacity has been strengthened in the majority of areas but there is still room 
for improvement since not all the necessary institutions are yet in place. In order to cover the 
remaining  gaps,  due  attention  should  be  given  to  the  full  and  timely  implementation  of  the 
strategies and action plans for the reinforcement of administrative capacity already approved 
in these areas. 

In the area of internal market, Romania has continued to make progress with the transposition 
of legislation in the field of the free movement of goods. However, transposition of the public 
procurement  legislation  must  be  completed.  In  addition,  practices  which  put  Romania’s 
commitment  to  open  and  transparent  procurement  procedures  into  question  should  be 
discontinued. Legislation has been further aligned in the area of free movement of persons, in 
particular as regards mutual recognition of professional qualifications and free movement of 
workers. Alignment needs to be completed as regards citizens’ rights and administrative and 

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training  capacities  should  be  enhanced  in  general.  In  particular  in  the  field  of  financial 
services,  Romania  achieved  substantial  progress  in  freedom  to  provide  services.  Romania 
should  continue  to  pay  attention  to  the  removal  of  identified  barriers  against  the  right  of 
establishment  and  the  freedom  to  provide  services  and  to  the  development  of  the  insurance 
and financial securities markets. While alignment with the acquis on free movement of capital 
has further improved, outstanding restrictions to capital movements and payments should be 
removed and the enforcement record of the National Office for the Prevention and Control of 
Money Laundering needs to be improved. 

Romania has continued to make progress in transposing the company law acquis as such and 
the  acquis  concerning  the  protection  of  intellectual  and  industrial  property  rights.  However, 
the  level  of  enforcement  of  such  rights  has  not  kept  pace  with  this.  Romania’s  legislative 
alignment on accounting and auditing should be completed. While the Romanian competition 
legislation  is  broadly  in  line  with  EC  anti-trust  rules,  current  proposals  needed  to  complete 
alignment  of  the  state  aid  legislation  are  being  prepared.  The  enforcement  record  of  the 
Romanian competition authority still needs to be considerably improved in state aid matters. 
Recent  efforts  in  this  respect  need  to  be  stepped  up.  Romania  needs  to  ensure  that 
restructuring aid given to steel companies is in line with the Europe Agreement. 

Romania  made  significant  progress  to  further  transpose  the  agricultural,  veterinary  and 
phytosanitary  acquis  and  has  strengthened  its  administrative  capacity.  However,  overall 
administrative  and  enforcement  capacities  should  be  further  enhanced.  Particular  attention 
should be paid to reinforcing the SAPARD Agency and to establishing the necessary elements 
of  a  functioning  IACS.  Upgrading  plans  for  non-complaint  establishments  in  the  veterinary 
sector  should  be  introduced  with  no  delay.  Steady  progress  has  taken  place  in  the  fisheries 
sector  in  terms  of  alignment  and  administrative  capacity.  However,  sustained  efforts  are 
needed  to  recruit  sufficient  staff  in  the  Fisheries  Inspectorate  and  provide  it  with  adequate 
inspection tools. The fishing database should be established. 

Romania  has  continued  to  make  progress  with  the  transposition  of  the transport  acquis  and 
building  up  the  administrative  structures  in  the  areas  of  road,  rail  and  aviation  transport. 
Alignment  is  fairly  advanced  in  the  maritime  sector.  The  technical  state  of  the  inland 
waterway fleet should be improved. 

Romania  has  made  some  progress  in  aligning  with  the  acquis  on  taxation  and  particular 
attention  should  now  be  paid  to  completing  alignment  and  strengthening  administrative 
capacity. Transposition of the acquis on social policy and employment has continued. Future 
efforts  should  focus  on  completing  legislative  alignment  in  the  area  of  labour  law  and  on 
strengthening the Labour Inspectorate to ensure proper implementation in the area of health 
and safety at work. Due attention should be paid to the promotion of social dialogue and to 
the improvement of the health status of the population, which is well below the EU average. 
Administrative capacity with regards to ESF management should be strengthened as a matter 
of  priority.  Legislative  progress  in  the  energy  sector  should  be  matched  by  full 
implementation and increased administrative capacity, in particular with regard to the internal 
energy market structures. The restructuring of energy markets process needs to be completed.  

Romania has performed steady progress as far as industrial policy is concerned, but the key 
challenge  is  its  implementation  as  structural  weaknesses  limit  the  capacity  for  enforcement. 
Transparency of the privatisation process should be fully ensured. Progress has continued in 
the  area  of  telecommunications  with  liberalising  the  telecommunications  market  and 
completing the transposition of the acquis. 

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As  regards  regional  policy  and  co-ordination  of  structural  instruments,  progress  has  been 
made  in  preparing  for  the  implementation  of  structural  policies  with  the  designation  of  the 
Managing and Paying Authorities and establishing their tasks and adoption of the 2004-2006 
National Development Plan. Efforts need to be continued to bring the administrative capacity 
up to the level required in order for Romania to reap full benefits of the structural instruments. 
Environment  is  an  area  where  Romania  has  achieved  a  good  level  of  alignment  with  the 
acquis  in  most  of  the  sectors,  whereas  implementation  is,  in  general,  still  lagging  behind. 
Further  transposition  should  concentrate  on  completing  the  alignment  in  the  areas  of 
horizontal  legislation,  air  quality,  waste  management,  water  quality,  nature  protection  and  a 
number  of  other  sectors.  Implementation  of  the  transposed  acquis  remains  a  key  challenge 
and,  therefore,  requires  enhanced  efforts.  It  is  of  utmost  importance  that  the  environmental 
administration  at  all  levels  obtains  sufficient  resources  in  order  to  cope  with  the  increasing 
recruitment,  training  and  equipment  needs.  Strategic  planning,  adequate  investment  and 
financing  plans  also  have  to  remain  in  the  focus  of  the  public  services  in  the  field  of 
environment. 

Legislative  alignment  on  consumer  and  health  protection  is  well  on  track  and  Romania  has 
made  good  progress  as  regards  improvement  of  administrative  capacity  and  the  general  co-
ordination of market surveillance activities. These efforts should be maintained and consumer 
movement should be strengthened.  

Legislative progress has been made in many areas of justice and home affairs and especially 
so  in  migration,  asylum  and  judicial  co-operation  in  civil  and  criminal  matters.  However, 
implementation  capacity  should  be  significantly  strengthened  in  almost  all  areas,  as  should 
inter-agency  co-operation.  Many  agencies  and  institutions  involved  in  law  enforcement  are 
still  affected  by  staff  shortages,  which  will  also  require  enhanced  training  capacity.  The 
independence  of  the  judiciary  must  be  ensured  on  the  ground.  As  regards  the  fight  against 
corruption, implementation capacity should also be significantly strengthened and the existing 
legislation should be rigorously enforced. Romania should implement its current plans to fully 
address  the  above  issues  of  concern  and  in  particular  increase  its  administrative  capacity  in 
the  relevant  institutions,  implement  an  effective  reform  of  the  judicial  system,  recruits  and 
train the necessary staff and take measures that have a significant impact on corruption. 

Limited  progress  has  been  made  in  the  area  of  customs  and  legislative  alignment  should  be 
completed.  Internal  co-ordination  improved.  Furthermore,  any  customs  duties  and  charges 
having  equivalent  effect  with  regard  to  export  and  import  to  and  from  the  Community  will 
have to be abolished. Romania has pursued its efforts in the financial control area. However, 
the legislative framework should be completed in the area of external audit and protection of 
the  Communities’  financial  interests.  Administrative  capacity  should  be  strengthened  to 
implement sound financial system.  

In  a  number  of  important  sectors,  the  overall  capacity  of  the  public  administration  to 
implement  and  enforce  the  newly  adopted  legislation  should  be  enhanced.  Romania  has 
started  to  address  this  issue  through  the  comprehensive  reform  of  its  public  administration. 
These concerns extend beyond the adoption of the acquis and also apply to the management 
of EU financial assistance. Furthermore, there are a number of areas where further efforts will 
be  needed  to  complete  the  work,  in  particular  as  regards  company  law,  competition  policy, 
environment and justice and home affairs, customs and financial control. 

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In  the  accession  negotiations,  27  chapters  have  been  provisionally  closed.  Romania  is 
generally meeting the commitments that it has made during the negotiations, although delays 
have been noted in specific areas. 

Bearing  in  mind  the  progress  achieved  since  the  Opinion,  the  level  of  alignment  and 
administrative capacity that Romania has achieved at this point in time and its track record in 
implementing the commitments that it has made in the negotiations, and taking into account 
their  preparatory  work  in  progress,  the  Commission  expects  Romania  to  assume  the 
obligations of membership in accordance with the envisaged timeframe. In the period leading 
up to accession, Romania needs to continue its preparations, in line with the commitments it 
has made in the accession negotiations. 

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