Communication from the Commission to the Council and the European Parliament - Recommendation of the European Commission on Turkey’s progress towards accession
Date: 2004-10-06
Institutions: European Commission
Subjects: Community acquis, Türkiye, accession to the European Union, democratisation, economic situation, human rights, political situation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.10.2004 
COM(2004) 656 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Recommendation of the European Commission on Turkey’s progress towards accession 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Recommendation of the European Commission on Turkey’s progress towards accession 

1. 

INTRODUCTION 

EU-Turkey relations have a long history. In 1963 Turkey and the EEC entered into 
an Association Agreement containing a membership perspective. In 1995, a customs 
union was formed and, in Helsinki in December 1999, the European Council decided 
that  Turkey  is  a  candidate  for  accession  to  the  EU.  The  Copenhagen  European 
Council  in  December  2002  concluded  that  “if  the  European  Council  in  December 
2004, on the basis of a report and a recommendation from the Commission, decides 
that Turkey fulfils the Copenhagen political criteria, the European Union will open 
accession  negotiations  with  Turkey  without  delay”.  These  conclusions  were 
reaffirmed by the European Council in Brussels in June 2004.  

For  major  periods  of  European  history,  Turkey  has  been  an  important  factor  of 
European politics. Turkey is member of all important other European organisations 
and has since the Second World War played an important role in contributing to the 
shaping of European policies.  

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limits  of 

in  Copenhagen 

the  mandate  received 

Within 
this 
Communication  contains  the  recommendation  from  the  Commission  and,  in  annex, 
the  conclusions  of  the  Regular  Report  on  Turkey.  The  Regular  Report  records 
Turkey’s progress towards accession over the past twelve months. It also examines 
Turkey’s track record in respect of the political and economic criteria for accession 
since the decision by the Helsinki European Council in 1999. The recommendation 
and the accompanying documents will provide a basis for a decision of the European 
Council of general political importance for the future of the European Union.  

in  2002, 

Furthermore,  the  Commission  services  have  also  prepared  an  assessment  of  issues 
arising  from  Turkey’s  membership  perspective.  Its  findings  are  presented  in  this 
Communication. 

On  this  basis,  a  strategy  consisting  of  three  pillars  is  presented.  The  first  pillar 
concerns  cooperation  to  reinforce  and  support  the  reform  process  in  Turkey  in 
particular in relation to the continued fulfilment of the Copenhagen political criteria. 
This  will  be  based  on  a  revised  Accession  Partnership,  setting  out  priorities  in 
particular  for  the  reform  process,  and  an  upgraded  pre-accession  strategy.  In  the 
second pillar, the specific conditions for the conduct of accession negotiations with 
Turkey  are  proposed.  A  number  of  preliminary  indications  are  provided  for  the 
preparation  of  accession  negotiations,  if  such  a  decision  is  taken  by  the  European 
Council in December. The third pillar suggests a substantially strengthened political 
and cultural dialogue bringing people together from EU Member States and Turkey. 
Turkey’s  accession  would  need  to  be  thoroughly  prepared  in  order  to  allow  for  a 
smooth  integration  which  enhances  the  achievements  of  fifty  years  of  European 
integration.  This  is  an  open-ended  process  whose  outcome  cannot  be  guaranteed 

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beforehand.  Regardless  of  the  outcome  of  the  negotiations  or  the  subsequent 
ratification  process,  the  relations  between  the  EU  and  Turkey  must  ensure  that 
Turkey remains fully anchored in European structures. 

2. 

ASSESSMENT OF THE POLITICAL CRITERIA 

Following  decades  of  sporadic  progress,  there  has  been  substantial  legislative  and 
institutional  convergence  in  Turkey  towards  European  standards,  in  particular  after 
the  2002  elections.  The  political  reforms  are  mainly  contained  in  two  major 
constitutional  reforms  in  2001  and  2004  and  eight  legislative  packages  adopted  by 
Parliament  between  February  2002  and  July  2004.  Civil-military  relations  are 
evolving  towards  European  standards.  Important  changes  have  been  made  to  the 
judicial  system,  including  the  abolition  of  the  State  Security  Courts.  Public 
administration reform is underway. As regards human rights, Turkey recognises the 
primacy of international and European law. It has aligned itself to a large extent with 
international  conventions  and  rulings,  such  as  the  complete  abolition  of  the  death 
penalty  and  the  release  of  people  sentenced  for  expressing  non-violent  opinion. 
Although  some  practical  restrictions  still  exist,  the  scope  of  fundamental  freedoms 
enjoyed by Turkish citizens, such as freedom of expression and assembly, has been 
substantially  extended.  Civil  society  has  grown  stronger.  Cultural  rights  for  the 
Kurds  have  started  to  be  recognised.  The  state  of  emergency  has  been  lifted 
everywhere; although the situation is still difficult, the process of normalisation has 
begun in the Southeast. Finally, on the enhanced political dialogue, Turkish foreign 
policy is contributing positively to regional stability.  

Turkey  has  substantially  progressed  in  its  political  reform  process,  in  particular  by 
means  of  far  reaching  constitutional  and  legislative  changes  adopted  over  the  last 
years, in line with the priorities set out in the Accession Partnership. However, the 
Law  on  Associations,  the  new  Penal  Code  and  the  Law  on  Intermediate  Courts  of 
Appeal  have  not  yet  entered  into  force.  Moreover,  the  decision  on  the  Code  of 
Criminal  Procedure,  the  legislation  establishing  the  judicial  police  and  the  law  on 
execution of punishments and measures are still to be adopted. 

Turkey  is  undertaking  strong  efforts  to  ensure  proper  implementation  of  these 
reforms.  Despite  this,  implementation  needs  to  be  further  consolidated  and 
broadened. This applies specifically to the zero tolerance policy in the fight against 
torture  and  ill-treatment,  and  the  strengthening  and  implementation  of  provisions 
relating to freedom of expression, freedom of religion, women’s rights, trade union 
rights and minority rights. 

In view of the overall progress of reforms, and provided that Turkey brings into force 
the outstanding legislation mentioned above, the Commission considers that Turkey 
sufficiently  fulfils  the  political  criteria  and  recommends  that  accession  negotiations 
be opened.  

The irreversibility of the reform process, its implementation, in particular with regard 
to  fundamental  freedoms,  will  need  to  be  confirmed  over  a  longer  period  of  time. 
Moreover, the acquis related to the political criteria is developing, in particular as a 
result of the Constitution for Europe. Turkey should closely follow this evolution.  

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Turkey has and continues actively to support efforts to resolve the Cyprus problem; 
in particular, Turkey agreed to the solution put forward in the peace plan of the UN 
Secretary General. The European Council of June 2004 invited Turkey to conclude 
negotiations with the  Commission on  behalf of  the Community and its 25  Member 
States on the adaptation of the Ankara Agreement to take account of the accession of 
the  new  Member  States.  The  Commission  expects  a  positive  reply  from  Turkey  to 
the draft protocol on the necessary adaptations transmitted in July 2004. Moreover, it 
should  be  noted  that  any  accession  negotiations  are  held  in  the  framework  of  an 
Intergovernmental Conference consisting of all Member States of the EU. 

The  full  conclusions  of  the  Regular  Report,  covering  also  the  progress  made  by 
Turkey  in  meeting  the  other  criteria  for  membership,  can  be  found  in  the  Annex: 
Conclusions of the Regular Report on Turkey. 

3. 

ASSESSING THE ISSUES ARISING FROM TURKEY’S MEMBERSHIP PERSPECTIVE 

Accession of Turkey to the Union will be challenging both for the EU and Turkey. If 
well managed, it would offer important opportunities for both. As the assessment on 
the  issues  arising  from  Turkey’s  membership  perspective  shows,  the  necessary 
preparations  for  accession  will  last  well  into  the  next  decade.  The  EU  will  evolve 
over  this  period,  and  Turkey  should  change  even  more  radically.  The  acquis  will 
develop  further  and  respond  to  the  needs  of  an  EU  at  27  or  more.  Its  development 
may also anticipate the challenges and opportunities of Turkey’s accession.  

Based  on  current  EU  policies  and  knowledge,  the  Commission  has  identified  the 
following main issues for further reflection and analysis over the coming years: 

•  Turkey’s accession would be different from previous enlargements because of the 
combined  impact  of  Turkey’s  population,  size,  geographical  location,  economic, 
security  and  military  potential.  These  factors  give  Turkey  the  capacity  to 
contribute to regional and international stability. The prospect of accession should 
lead  to  improving  bilateral  relations  between  Turkey  and  its  neighbours  in  line 
with  principle  of  reconciliation  on  which  the  European  Union  is  founded. 
Expectations  regarding  EU  policies  towards  these  regions  will  grow  as  well, 
taking  into  account  Turkey’s  existing  political  and  economic  links  to  its 
neighbours. Much will depend on how the EU itself will take on the challenge to 
become  a  fully  fledged  foreign  policy  player  in  the  medium  term  in  regions 
traditionally  characterised  by  instability  and  tensions,  including  the  Middle  East 
and the Caucasus.  

•  Turkey is at present going through a process of radical change, including a rapid 
evolution of mentalities. It is in the interest of all that the current transformation 
process  continues.  Turkey  would  be  an  important  model  of  a  country  with  a 
majority  Muslim  population  adhering  to  such  fundamental  principles  as  liberty, 
democracy,  respect  for  human  rights  and  fundamental  freedoms,  and  the  rule  of 
law.  

•  The  economic  impact  of  Turkey’s  accession  on  the  EU  would  be  positive  but 
relatively  small,  both  due  to  the  modest  size  of  the  Turkish  economy  and  to  the 
degree  of  economic  integration  already  existing  before  accession.  Much  will 

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depend  on  future  economic  developments  in  Turkey.  The  launch  of  accession 
negotiations should help the continued efforts of Turkey to ensure macroeconomic 
stability  and  promote  investment,  growth  and  social  development.  Under  these 
conditions, Turkey’s GDP is expected to grow more rapidly than the EU average.  

•  Accession  of  Turkey,  a  lower  middle  income  country,  would  increase  regional 
economic  disparities  in  the  enlarged  EU  in  a  way  similar  to  the  most  recent 
enlargement, and would represent a major challenge for cohesion policy. Turkey 
would qualify for significant support from the structural and cohesion funds over 
a long period of time. A number of regions in present Member States benefiting 
from  structural  funds  support  could  lose  their  eligibility  on  the  basis  of  present 
rules. 

•  The  integration  of  Turkey  into  the  internal  market  would  be  beneficial.  This 
depends,  however,  not  only  on  the  fulfilment  of  present  obligations  under  the 
customs  union  but  also  on  more  horizontal  reforms,  such  as  strengthening 
corporate  governance  and  regulatory  frameworks,  intensifying  the  fight  against 
corruption, and significantly improving the functioning of the judiciary.  

•  With over three million, Turks constitute by far the largest group of third-country 
nationals legally residing in today’s EU. Available studies give varying estimates 
of  expected  additional  migration  following  Turkey’s  accession.  Long  transition 
periods  and  a  permanent  safeguard  clause  can  be  considered  to  avoid  serious 
disturbances  on  the  EU  labour  market.  However,  the  population  dynamics  of 
Turkey could make a contribution to offsetting the ageing of EU societies. In this 
context, the EU also has a strong interest in that reforms and investments should 
be made in education and training in Turkey over the next decade. 

•  Agriculture  is  one  of  the  most  important  economic  and  social  sectors  in  Turkey 
and  would  need  special  attention.  Continuous  rural  development  efforts  and  an 
upgrading of administrative capacity would be required from Turkey to create as 
favourable  conditions  as  possible  to  participate  successfully  in  the  common 
agricultural  policy.  Turkey  would  need  considerable  time  to  make  a  number  of 
agricultural sectors more competitive in order to avoid substantial income losses 
for  Turkish  farmers.  Under  present  policies  Turkey  would  be  eligible  for 
substantial support. In the veterinary area, major efforts would have to be made to 
improve the animal health situation and controls at the eastern borders in order to 
avoid serious problems upon accession.  

•  Turkey’s accession would help to secure better energy supply routes for the EU. It 
would probably necessitate a development of EU policies for the management of 
water  resources  and  the  related  infrastructure.  Because  of  their  sometimes 
considerable trans-boundary effects, good implementation by Turkey of other EU 
policies  in  the  fields  of  environment,  transport,  energy  and  consumer  protection 
would also have considerable positive effects for EU citizens elsewhere. 

•  The  management  of  the  EU’s  long  new  external  borders  would  constitute  an 
important  policy  challenge  and  require  significant 
investment.  Managing 
migration and asylum as well as fighting organised crime, terrorism, trafficking of 
human beings, drugs and arms smuggling would all be facilitated through closer 
cooperation both before and after accession.  

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•  The  budgetary  impact  of  Turkish  membership  to  the  EU  can  only  be  fully 
assessed once the parameters for the financial negotiations with Turkey have been 
defined in the context of the financial perspectives from 2014 onwards. The nature 
and amount of transfers to Turkey would depend on a number of changing factors, 
such as the EU’s policies and any special arrangements agreed with Turkey in the 
negotiations as well as the budgetary provisions in place at that time, in particular 
the overall budgetary ceiling. However, it is clear that the budgetary impact on the 
basis of present policies would be substantial. 

•  As  to  the  institutions,  Turkey’s  accession,  assessed  on  the  basis  of  the 
Constitution  for  Europe,  would  significantly  affect  the  allocation  of  European 
Parliament  seats  of  current  Member  States,  in  particular  the  medium  sized  and 
large  countries.  In  the  Council,  Turkey  would  have  an  important  voice  in  the 
decision making process in view of its population share which would be reflected 
in the Council voting system. The impact in terms of the Commission would be 
less  important  given  the  planned  reduction  of  the  members  of  the  Commission 
from 2014 onwards. 

4. 

REINFORCING AND SUPPORTING THE REFORM PROCESS WITH TURKEY  

Overall,  implementation  of  reforms  needs  to  be  vigorously  pursued.  More 
specifically,  the  policy  of  zero  tolerance  towards  torture  should  be  implemented 
through  determined  efforts  on  all  levels  of the  Turkish  state  to  eradicate  remaining 
instances  of  torture.  Further  development  of  civil  society  is  important.  The  need  to 
consolidate  and  broaden  political  reform  also  applies  to  the  normalisation  and 
development  of  the  situation  in  the  Southeast,  including  measures  to  improve  the 
socio-economic situation, initiatives to facilitate the return of displaced people, and 
to  allow  for  full  enjoyment  of  rights  and  freedoms  by  the  Kurds.  The  specific 
problems  of  non-Muslim  religious  communities  and  trade  union  rights  also  need 
further action. 

In  order  to  guarantee  the  sustainability  and  irreversibility  of  the  political  reform 
process, the EU should continue to monitor progress of the political reforms closely, 
on the basis of an Accession Partnership setting out priorities for the reform process. 
The Commission will, following the analysis in the Regular Report, propose to revise 
the Accession Partnership in spring 2005. On this basis, a general review of the way 
in which political reforms are consolidated and broadened will take place on a yearly 
basis starting from end 2005. To this end, the Commission will present a first report 
to the European Council in December 2005. The pace of the reforms will determine 
the progress in negotiations. 

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.  

The enhanced political dialogue and the regular monitoring need to continue after the 
opening  of  accession  negotiations.  As  in  the  past,  it  will  go  hand  in  hand  with  the 

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expert assistance undertaken by the Commission. The dialogue in the economic field 
will also need to be pursued, with a clear reference to the acquis and in particular the 
methods of economic policy coordination applied within the EU.  

Building  on  the  instruments  developed  over  the  past  years,  such  as  twinning,  peer 
reviews  and  TAIEX,  the  EU  should  continue  to  assist  Turkey  to  achieve  the 
necessary legal and real convergence. The pre-accession strategy for Turkey should 
be  upgraded  in  order  to  focus  on  the  priorities  outlined  in  the  revised  Accession 
Partnership  which  will  be  based  on  the  Regular  Report  and  the  assessment  of  the 
issues  raised  by  Turkey’s  prospective  accession.  Concrete  initiatives  need  to  be 
developed to address the socio-economic development in the Southeast, also through 
the mobilisation of a substantial part of the Community assistance to Turkey. 

Until  2006,  EU  financial  and  technical  assistance  to  Turkey’s  preparations  will 
continue to be based on the dedicated pre-accession instrument  for  Turkey adopted 
by  the  Council  in  December  2001.  The  Commission  has  proposed  to  Council  to 
create a new pre-accession instrument (IPA), from which Turkey would benefit from 
2007  onwards,  building  on  the  present  pre-accession  instruments  Phare,  ISPA  and 
SAPARD.  In  the  context  of  the  next  financial  perspective,  the  Commission  will 
propose an increase in the amounts to be allocated to Turkey.  

5. 

INDICATIONS FOR THE CONDUCT OF ACCESSION NEGOTIATIONS 

The  assessment  summarised  above  has  borne  out  the  fact  that  both  the  EU  and 
Turkey  will  need  a  considerable  amount  of  time  to  create  the  conditions  that  will 
ensure a smooth integration of Turkey into the EU. Not only is it necessary to protect 
the  cohesion  and  effectiveness  of  the  Union,  it  would  also  protect  Turkey  from 
having to apply policies that may be unsuited for its level of development.  

Accession  negotiations  will  take  place  in  the  framework  of  an  Intergovernmental 
Conference where decisions require unanimity. The framework for negotiations will 
need  to  reflect  the  specific  challenges  related  to  Turkey’s  accession.  The  precise 
parameters  for  the  conduct  of  negotiations  will  be  elaborated  once  the  decision  is 
taken to open negotiations, drawing on the broad indications given below.  

Immediately after the formal opening of the accession negotiations, the Commission 
will  organise  a  comprehensive  process  of  examination  of  the  acquis,  called 
screening,  in  order  to  explain  it  and  to  obtain  preliminary  indications  of  the  issues 
that may arise during the negotiations. The negotiations will be complex and reflect 
on  the  one  hand  difficulties  encountered  by  Turkey  to  apply  the  acquis  and  on  the 
other hand the need for provisions facilitating the harmonious integration of Turkey 
into  the  EU.  The  application  in  Turkey  of  the  common  agricultural  policy  and  the 
cohesion policy are two examples. The rules regarding the free movement of persons 
are a third. It is likely that there will be, as in previous enlargement rounds, a need 
for substantial and specific arrangements and in some areas long transition periods. 
In  the  case  of  free  movement  of  persons  permanent  safeguards  can  be  considered. 
The  Commission  will  refine  its  analysis  in  the  course  of  negotiations  before 
presenting a concrete approach for each of these issues.  

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The  substance  of  the  negotiations  will  be  broken  down  into  a  number  of  chapters, 
each  covering  a  specific  policy  area.  The  Commission  will  recommend  to  the 
Council to open negotiations on each specific chapter once it considers Turkey to be 
sufficiently  prepared.  As  regards  certain  chapters  with  an  economic  dimension,  the 
existence  of  a  functioning  market  economy  should  be  a  prerequisite  for  opening 
negotiations. 

Benchmarks  for  the  provisional  closure  of  each  chapter  and,  where  appropriate  for 
the opening of chapters, will need to be defined ahead of the opening of negotiations 
for  each  chapter.  These  benchmarks  could  refer  to  legislative  alignment  and  a 
satisfactory  track  record  in  implementation.  In  addition,  existing  legal  obligations 
resulting from the Association Agreement and the customs union, in particular those 
mirroring the acquis, should be fulfilled before the opening of negotiations on related 
chapters.  

Progress in the negotiations will depend not only on Turkey’s convergence with the 
EU. The EU will need to prepare itself because, as stated by the European Council of 
June  1993,  the  Union’s  capacity  to  absorb  new  members,  while  maintaining  the 
momentum of European integration, is also an important consideration in the general 
interest of both the Union and the candidate countries. The analysis conducted so far 
of Turkey’s accession does not  suggest that major adjustments would be needed in 
policies related to the internal market. The negotiations will be based, as always, on 
the  existing  acquis.  However,  the  need  for  adaptations  to  the  acquis  before  its 
accession  may  still  arise.  In  any  event,  the  EU  will  need  to  define  its  financial 
perspective  for  the  period  from  2014  before  the  financial  implications  of  certain 
negotiating  chapters  can  be  tackled.  Arrangements  reflecting  Turkey’s  specific 
circumstances  may  be  necessary.  Finally,  the  EU  will  need  to  reflect  on 
strengthening  policies  in  critical  fields  identified  in  the  assessment  on  the  issues 
arising from Turkey’s membership perspective, such as external borders and foreign 
policy.  

It is primarily by demonstrating determined implementation of continued reform that 
Turkey  would  be  able  to  ensure  a  successful  conclusion  of  the  whole  accession 
process. The conduct of negotiations and the prospect of accession should contribute 
to  further  political,  social,  cultural  and  economic  reform  in  Turkey.  The  final 
outcome  will  require  endorsement  by  the  European  Parliament  and  by  the  EU 
countries and Turkey.  

6. 

STRENGTHENING THE DIALOGUE BETWEEN THE EUROPEAN UNION AND TURKEY 

There is a clear need to strengthen the dialogue on a number of issues relating to EU-
Turkey relations. Several pertinent questions, which do not immediately relate to the 
EU  as  such,  need  to  be  addressed.  A  number  of  fora  should  be  created,  bringing 
people  together  from  Member  States  and  Turkey,  where  concerns  and  perceptions 
can be discussed in a frank and open manner. This includes a dialogue on difference 
of  cultures,  religion,  issues  relating  to  migration,  concerns  on  minority  rights  and 
terrorism. Civil society should play the most important role in this dialogue, which 
should be facilitated by the EU. The Commission will present proposals on how to 
support such a dialogue in future. 

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7. 

CONCLUSIONS AND RECOMMENDATIONS 

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

(1) 

(2) 

(3) 

(4) 

(5) 

Turkey  has  substantially  progressed  in  its  political  reform  process,  in 
particular  by  means  of  far  reaching  constitutional  and  legislative  changes 
adopted over the last years, in line with the priorities set out in the Accession 
Partnership. However, the Law on Associations, the new Penal Code and the 
Law  on  Intermediate  Courts  of  Appeal  have  not  yet  entered  into  force. 
Moreover,  the  Code  on  Criminal  Procedure,  the  legislation  establishing  the 
judicial police and the law on execution of punishments and measures are still 
to be adopted. 

Turkey is undertaking strong efforts to ensure proper implementation of these 
reforms.  Despite  this,  legislation  and  implementation  measures  need  to  be 
further  consolidated  and  broadened.  This  applies  specifically  to  the  zero 
tolerance  policy  in  the  fight  against  torture  and  ill-treatment  and  the 
implementation  of  provisions  relating  to  freedom  of  expression,  freedom  of 
religion,  women’s  rights,  ILO  standards  including  trade  union  rights,  and 
minority rights. 

In view of the overall progress of reforms attained and provided that Turkey 
brings  into  force  the  outstanding  legislation  mentioned  in  paragraph  1,  the 
Commission considers that Turkey sufficiently fulfils the political criteria and 
recommends that accession negotiations be opened. The irreversibility of the 
reform  process,  its  implementation  in  particular  with  regard  to  fundamental 
freedoms, will need to be confirmed over a longer period of time. 

A  strategy  consisting  of  three  pillars  should  be  followed.  The  first  pillar 
concerns cooperation to reinforce and support the reform process in Turkey, 
in  particular  in  relation  to  the  continued  fulfilment  of  the  Copenhagen 
political criteria. In order to guarantee the sustainability and irreversibility of 
this  process,  the  EU  should  continue  to  monitor  progress  of  the  political 
reforms  closely.  This  will  be  done  on  the  basis  of  a  revised  Accession 
Partnership  setting  out  priorities  for  further  reforms.  A  general  review  of 
progress of the political reforms will take place on a yearly basis starting from 
end  2005.  To  this  end,  the  Commission  will  present  a  first  report  to  the 
European Council in December 2005. The pace of the reforms will determine 
the progress in negotiations.  

In line with the Treaty on European Union and the Constitution for Europe, 
the  Commission  will  recommend  the  suspension  of  the  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  would  decide  on  such  a 
recommendation with a qualified majority. 

(6) 

The  second  pillar  concerns  the  specific  way  of  approaching  accession 
negotiations  with  Turkey.  Accession  negotiations  will  take  place  in  the 
framework  of  an  Intergovernmental  Conference  where  decisions  require 

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unanimity  and  with  full  participation  of  all  EU  Members.  The  negotiations 
will be complex. For each chapter of the negotiations, the Council should lay 
down benchmarks for the provisional closure and, where appropriate, for the 
opening  of  negotiations,  including  legislative  alignment  and  a  satisfactory 
track  record  of  implementation  of  the  acquis.  Existing  legal  obligations  in 
line  with  the  acquis  must  be  fulfilled  before  the  opening  of  negotiations  on 
related  chapters.  Long  transition  periods  may  be  required.  In  addition,  in 
some areas, such as structural policies and agriculture specific arrangements 
may be needed and, for the free movement of workers, permanent safeguards 
can  be  considered.  The  financial  and  institutional  impact  of  Turkey’s 
accession  will  be  important.  The  EU  will  need  to  define  its  financial 
perspective  for  the  period  from  2014  before  negotiations  can  be  concluded. 
Furthermore,  the  Commission  shall  monitor  during  the  negotiations  the 
ability of the Union to absorb new members and to deepen integration taking 
fully  into  account  Treaty  objectives  as  regards  common  policies  and 
solidarity. 

(7) 

(8) 

The  third  pillar  entails  a  substantially  strengthened  political  and  cultural 
dialogue bringing people together from EU Member States and Turkey. Civil 
society should play the most important role in this dialogue, which should be 
facilitated  by  the  EU.  The  Commission  will  present  proposals  on  how  to 
support such a dialogue. 

The Commission is convinced that the negotiation process will be essential in 
guiding  further  reforms  in  Turkey.  By  its  very  nature,  it  is  an  open-ended 
process whose outcome cannot be guaranteed beforehand. Regardless of the 
outcome  of  the  negotiations  or  the  subsequent  ratification  process,  the 
relations between the EU and Turkey must ensure that Turkey remains fully 
anchored  in  European  structures.  Turkey’s  accession  would  need  to  be 
thoroughly  prepared  in  order  to  allow  for  a  smooth  integration  which 
enhances the achievements of fifty years of European integration.  

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Annex: Conclusions of the Regular Report on Turkey 

When  the  European  Council  of  December  1999  decided  that  Turkey  is  a  candidate  for 
accession, Turkey was considered to have the basic features of a democratic system while at 
the  same  time  displaying  serious  shortcomings  in  terms  of  human  rights  and  protection  of 
minorities.  In  2002,  the  Commission  noted  in  its  Regular  Report  that  the  decision  on  the 
candidate status of Turkey had encouraged the country to make noticeable progress with the 
adoption of a series of fundamental, but still limited, reforms. At that time, it was clear that 
most  of  those  measures  had  yet  to  be  implemented  and  that  many  other  issues  required  to 
meet the Copenhagen  political  criteria  had  yet to be addressed. On that basis, the European 
Council decided in December 2002 to re-examine Turkey’s fulfilment of the political criteria 
at the end of 2004.  

Political reforms, in line with the priorities in the Accession Partnership, have been introduced 
by means of a series of constitutional and legislative changes adopted over a period of three 
years (2001-2004). There have been two major constitutional reforms in 2001 and 2004 and 
eight legislative packages were adopted by Parliament between February 2002 and July 2004. 
New  codes  have  been  adopted,  including  a  Civil  Code  and  a  Penal  Code.  Numerous  other 
laws, regulations, decrees and circulars outlining the application of these reforms were issued. 
The government undertook major steps to achieve better implementation of the reforms. The 
Reform  Monitoring  Group,  a  body  set  up  under  the  chairmanship  of  the  deputy  Prime 
Minister  responsible  for  Human  Rights,  was  established  to  supervise  the  reforms  across  the 
board  and  to  solve  practical  problems.  Significant  progress  took  place  also  on  the  ground; 
however, the implementation of reforms remains uneven.  

On  civil-military  relations,  the  government  has  increasingly  asserted  its  control  over  the 
military.  In  order  to  enhance  budgetary  transparency  the  Court  of  Auditors  was  granted 
permission  to  audit  military  and  defence  expenditures.  Extra-budgetary  funds  have  been 
included  in  the  general  budget,  allowing  for  full  parliamentary  control.  In  August  2004,  for 
the first time a civilian was appointed Secretary General of the National Security Council. The 
process of fully aligning civil-military relations with EU practice is underway; nevertheless, 
the  armed  forces  in  Turkey  continue  to  exercise  influence  through  a  series  of  informal 
mechanisms.  

The  independence  and  efficiency  of  the  judiciary  were  strengthened,  State  Security  Courts 
were abolished and some of their competencies were transferred to the newly-created Serious 
Felony  Courts.  The  legislation  to  establish  Intermediate  Courts  of  Appeal  was  recently 
adopted, but the draft new Code of Criminal Procedure, the draft Laws on the Establishment 
of the Judicial Police and on the Execution of Punishments still await adoption.  

Since 1 January 2004, Turkey has been a member of the Council of Europe’s Group of States 
Against Corruption (GRECO). A number of anti-corruption measures have been adopted, in 
particular by establishing ethical rules for public servants. However, despite these legislative 
developments, corruption remains a serious problem in almost all areas of the economy and 
public affairs.  

Concerning  the  general  framework  for  the  respect  of  human  rights  and  the  exercise  of 
fundamental  freedoms,  Turkey  has  acceded  to  most  relevant  international  and  European 
conventions  and  the  principle  of  the  supremacy  of  these  international  human  rights 
conventions  over  domestic  law  was  enshrined  in  the  Constitution.  Since  2002  Turkey  has 

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increased  its  efforts  to  execute  decisions  of  the  European  Court  of  Human  Rights.  Higher 
judicial bodies such as the Court of Cassation have issued a number of judgments interpreting 
the reforms in accordance with the standards of the European Court, including in cases related 
to  the  use  of  the  Kurdish  language,  torture  and  freedom  of  expression.  Retrials  have  taken 
place,  leading  to  a  number  of  acquittals.  Leyla  Zana  and  her  former  colleagues,  who  were 
released  from  prison  in  June  2004,  are  to  face  a  further  retrial,  following  a  decision  by  the 
Court of Cassation.  

The  death  penalty  was  abolished  in  all  circumstances  according  to  Protocol No  13  to  the 
European  Convention  on  Human  Rights,  which  Turkey  signed  in  January  2004.  Remaining 
references to the death penalty in existing legislation were removed. Further efforts have been 
made to strengthen the fight against torture and ill-treatment, including provisions in the new 
Penal  Code.  Pre-trial  detention  procedures  have  been  aligned  with  European  standards, 
although detainees are not always made aware of their rights by law enforcement officers. The 
authorities have adopted a zero tolerance policy towards torture and a number of perpetrators 
of  torture  have  been  punished.  Torture  is  no  longer  systematic,  but  numerous  cases  of  ill-
treatment  including  torture  still  continue  to  occur  and  further  efforts  will  be  required  to 
eradicate such practices.  

As  regards  freedom  of  expression,  the  situation  has  improved  significantly,  but  several 
problems remain. The situation of individuals sentenced for non-violent expression of opinion 
is  now  being  addressed  and  several  persons  sentenced  under  the  old  provisions  were  either 
acquitted  or  released.  Constitutional  amendments  and  a  new  press  law  have  increased  press 
freedoms. The new law abrogates sanctions such as the closure of publications, the halting of 
distribution  and  the  confiscation  of  printing  machines.  However,  in  a  number  of  cases 
journalists and other citizens  expressing non-violent opinion continue to be  prosecuted. The 
new Penal Code provides only limited progress as regards freedom of expression. 

If adopted, the new Law on Associations, initially passed in July 2004 and then vetoed by the 
President,  will  be  significant  in  terms  of  reducing  the  possibility  of  state  interference  in  the 
activities  of  associations  and  will  contribute  towards  the  strengthening  of  civil  society. 
Despite measures taken to ease restrictions on demonstrations, there are still reports of the use 
of disproportionate force against demonstrators.  

Although  freedom  of  religious  belief  is  guaranteed  by  the  Constitution,  and  freedom  to 
worship  is  largely  unhampered,  non-Muslim  religious  communities  continue  to  experience 
difficulties  connected  with  legal  personality,  property  rights,  training  of  clergy,  schools  and 
internal management. Appropriate legislation could remedy these difficulties. Alevis are still 
not recognised as a Muslim minority. 

As regards economic and social rights, the principle of gender equality has been strengthened 
in  the  Civil  Code  and  the  Constitution.  Under the  new  Penal  Code,  perpetrators  of  “honour 
killings” should be sentenced to life imprisonment, virginity tests will be prohibited without a 
court order and sexual assault in marriage will qualify as a criminal offence. The situation of 
women is still unsatisfactory; discrimination and violence against women, including “honour 
killings”,  remain  a  major  problem.  Children’s  rights  were  strengthened,  but  child  labour 
remains an issue of serious concern. Trade union rights still fall short of ILO standards. 

As  far  as  the  protection  of  minorities  and  the  exercise  of  cultural  rights  are  concerned,  the 
Constitution was amended to lift the ban on the use of Kurdish and other languages. Several 
Kurdish  language  schools  recently  opened  in  the  Southeast  of  Turkey.  Broadcasting  in 

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Kurdish  and  other  languages  and  dialects  is  now  permitted  and  broadcasts  have  started, 
although on a restricted scale. There has been greater tolerance for the expression of Kurdish 
culture  in  its  different  forms.  The  measures  adopted  in  the  area  of  cultural  rights  represent 
only  a  starting  point.  There  are  still  considerable  restrictions,  in  particular  in  the  area  of 
broadcasting and education in minority languages. 

The  state  of  emergency,  which  had  been  in  force  for  15  years  in  some  provinces  of  the 
Southeast, was completely lifted in 2002. Provisions used to restrict pre-trial detention rights 
under emergency rule were amended. Turkey began a dialogue with a number of international 
organisations, including the Commission, on the question of internally  displaced persons. A 
Law on Compensation of Losses Resulting from Terrorist Acts was approved. Although work 
is underway to define a more systematic approach towards the region, no integrated strategy 
with a view to reducing regional disparities and addressing the economic, social and cultural 
needs of the local population has yet been adopted. The return of internally displaced persons 
in the Southeast has been limited and hampered by the village guard system and by a lack of 
material support. Future measures should address specifically the recommendations of the UN 
Secretary General’s Special Representative for Displaced Persons.  

In  conclusion,  Turkey  has  achieved  significant  legislative  progress  in  many  areas,  through 
further reform packages, constitutional changes and the adoption of a new Penal Code, and in 
particular  in  those  identified  as  priorities  in  last  year’s  report  and  in  the  Accession 
Partnership.  Important  progress  was  made  in  the  implementation  of  political  reforms,  but 
these need to be further consolidated and broadened. This applies to the strengthening and full 
implementation of provisions related to the respect of fundamental freedoms and protection of 
human  rights,  including  women’s  rights,  trade  union  rights,  minority  rights  and  problems 
faced  by  non-Muslim  religious  communities.  Civilian  control  over  the  military  needs  to  be 
asserted, and law enforcement and judicial practice aligned with the spirit of the reforms. The 
fight  against  corruption  should  be  pursued.  The  policy  of  zero  tolerance  towards  torture 
should  be  reinforced  through  determined  efforts  at  all  levels  of  the  Turkish  state.  The 
normalisation  of  the  situation  in  the  Southeast  should  be  pursued  through  the  return  of 
displaced  persons,  a  strategy  for  socio-economic  development  and  the  establishment  of 
conditions for the full enjoyment of rights and freedoms by the Kurds. 

The changes to the Turkish political and legal system over the past years are part of a longer 
process and it will take time before the spirit of the reforms is fully reflected in the attitudes of 
executive and judicial bodies, at all levels and throughout the country. A steady determination 
will be required in order to tackle outstanding challenges and overcome bureaucratic hurdles. 
Political reform will continue to be closely monitored. 

As  regards  the  enhanced  political  dialogue,  relations  with  Greece  developed  positively.  A 
series of bilateral agreements were signed and several confidence building measures adopted. 
A  process  of  exploratory  talks  has  continued.  On  Cyprus,  over  the  last  year  Turkey  has 
supported  and  continues  to  support  the  efforts  of  the  UN  Secretary  General  to  achieve  a 
comprehensive settlement of the Cyprus problem. The European Council of June 2004 invited 
Turkey to conclude negotiations with the Commission on behalf of the Community and its 25 
Member States on the adaptation of the Ankara Agreement to take account of the accession of 
the new Member States. The Commission expects a positive reply to the draft protocol on the 
necessary adaptations transmitted to Turkey in July 2004. 

Turkey has made further considerable progress towards being a functioning market economy, 
in particular by reducing its macroeconomic imbalances. Turkey should also be able to cope 

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with  competitive  pressure  and  market  forces  within  the  Union,  provided  that  it  firmly 
maintains its stabilisation policy and takes further decisive steps towards structural reforms. 

Economic  stability  and  predictability  have  been  substantially  improved  since  the  2001 
economic  crisis.  Previously  high  inflation  has  come  down  to  historic  lows,  political 
interference  has  been  reduced  and  the  institutional  and  regulatory  framework  has  been 
brought closer to international standards. Thus, an important change towards a stable and rule-
based  economy  has  taken  place.  Key  economic  vulnerabilities,  such  as  financial  sector 
imbalances,  have  been  tackled.  Financial  sector  supervision  has  been  strengthened.  As  a 
result,  the  shock  resilience  of  the  Turkish  economy  has  significantly  increased.  Important 
progress  has  been  achieved  in  increasing  the  transparency  and  efficiency  of  public 
administration,  including  public  finances.  Furthermore,  important  steps  have  been  taken  in 
facilitating the inflow of FDI and in improving the legal framework for privatisation.  

In order to transform the current positive dynamics into sustained growth and stability, it is of 
crucial  importance  to  continue  the  ongoing  reform  process.  Maintaining  a  stability-oriented 
economic policy is a key element in this respect. In particular, fiscal imbalances have to be 
reduced  and  the  disinflation  process  has  to  be  maintained.  The  business  climate  would  be 
improved  by  streamlining  administrative  procedures  and  strengthening  the  rule  of  law. 
Improving  the  efficiency  of  the  commercial  judiciary  is  of  particular  importance  in  this 
context. The banking sector’s surveillance and prudential rules should continue to be aligned 
with international standards. The privatisation of state-owned banks and enterprises should be 
accelerated.  Sufficient  public  and  private  investment  and  devoting  particular  attention  to 
education  are  important  to  increase  the  competitiveness  and  the  growth  potential  of  the 
economy.  The  inflow  of  foreign  direct  investment  has  to  be  encouraged  by  removing 
remaining barriers.  

Turkey’s  alignment  has  progressed  in  many  areas  but  remains  at  an  early  stage  for  most 
chapters. Further work is required in all areas, new legislation should not move away from the 
acquis,  and  discrimination  against  non-Turkish  service  providers,  or  products  should  be 
discontinued.  Administrative  capacity  needs  to  be  reinforced.  Moreover  no  Member  State 
should be excluded from the mutual benefits deriving from the alignment with the acquis. 

On the free movement of goods, overall transposition of the acquis is advancing steadily, but 
is not complete, while implementation remains uneven. There has been progress in the area of 
horizontal  and  procedural  measures,  and  sector  specific  legislation,  in  particular  in  new 
approach areas, where substantial progress has taken place concerning conformity assessment 
and  market  surveillance.  The  public  procurement  Law  still  contains  discrepancies  with  the 
acquis.  Turkey  should  speed  up  the  efforts  to  remove  technical  barriers  to  trade,  and  to 
increase  compliance  with  the  Decision  1/95  of  the  Association  Council  establishing  the 
Customs Union, and to take the necessary steps to implement free circulation of products in 
the non-harmonised areas.  

No progress has taken place concerning the free movement of persons, and overall legislative 
alignment is still at a very early stage. The administrative capacity needs thorough upgrading. 
Concerning  the  freedom  to  provide  services,  some  progress  could  be  recorded  for  financial 
services,  except  for  insurance,  but  no  development  took  place  in  the  area  of  non-financial 
services.  Market  access  restrictions  are  in  place  in  particular  in  the  area  of  non-financial 
services. In the field of professional services, no progress has been made since the previous 
Report. The alignment with the acquis on personal data protection needs to be achieved. An 
authority dealing with personal data protection should be established and the independence of 

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the existing financial services supervisory authorities should be safeguarded. Limitations for 
foreigners  should  also  be  lifted.  Alignment  remains  limited  with  the  acquis  on  the  free 
movement  of  capital.  The  priority  should  be  the  adoption  of  anti-money  laundering 
provisions, and the removal of restrictions to investment by foreigners. Improvements in this 
area would contribute to facilitate inflow of foreign direct investment. 

In  the  area  of  company  law,  the  alignment  with  the  acquis  remains  very  limited.  However, 
important efforts have been undertaken to fight piracy with regards protection of intellectual 
and  industrial  property  rights,  but  insufficient  administrative  capacity  prevents  remains  a 
constraint.  Concerning  competition  policy,  the  alignment  with  the  acquis  on  anti-trust 
legislation  is  significant  and  progress  continues  in  a  satisfactory  manner.  On  the  contrary, 
alignment with state aid acquis is very limited, in spite of its inclusion in the Customs Union. 
The adoption of the state aid Law and the establishment of the state aid monitoring authority 
are  crucial  issues.  Further  efforts  are  also  necessary  to  prepare  an  acceptable  restructuring 
programme for the steel sector.  

Little  progress  can  be  recorded  since  the  previous  Report  in  the  area  of  agriculture,  and 
overall  alignment  with  the  acquis  remains  limited.  Progress  has  taken  place  concerning  in 
particular veterinary, phytosanitary and food, but transposition and administrative capacity are 
still insufficient to ensure effective implementation. Rural development, eradication of animal 
diseases  and  upgrading  of  the  Administrations  concerned  should  be  regarded  as  priorities. 
Progress  has  been  very  limited  concerning  fisheries.  It  is  necessary  to  increase  the  efforts 
concerning  resources  management,  as  well  as  to  reinforce  the  inspection  and  control 
capacities. 

Some  progress  could  be  recorded  in  all  transport  modes,  excepted  air  transport,  but  overall 
alignment remains limited and all modes present problematic issues. Concerning in particular 
maritime transport, the detention rate remains much higher than the EU average, and Turkey 
remains in the black list of the secretariat of the Paris Memorandum of Understanding on Port 
State  controls.  Cypriot  vessels  or  vessels  having  landed  in  Cyprus  are  still  not  allowed  in 
Turkish  ports.  Transposition  of  the  acquis  should  take  place  in  parallel  with  adherence  to 
international  agreements.  The  staff  and  capacity  of  the  Ministry  of  Transport  needs  to  be 
strengthened substantially. 

As regards taxation, there has been limited progress in the area of indirect taxation, while no 
progress  could  be  reported  on  direct  taxation,  or  administrative  co-operation.  Overall,  the 
Turkish  fiscal  regime  remains  partly  aligned  with  the  acquis,  and  important  efforts  remain 
necessary  on  all  areas  under  this  chapter.  Alignment  is  necessary  in  particular  concerning 
VAT,  the  scope  of  exemptions  and  applied  rates.  With  regards  to  indirect  taxation,  excise 
duties  should  not  penalise  imported  products.  Also,  administrative  capacity  requires  a 
substantial strengthening, in particular to improve tax collection. 

No  progress  can  be  recorded  concerning  economic  and  monetary  union  since  the  previous 
Report,  and  the  overall  level  of  alignment  is  limited.  The  most  important  issues  to  be 
addressed  are  the  independence  of  the  central  bank  and  the  remaining  possibilities  of 
privileged access to the financial sector to finance the budget. 

In the area of statistics, there has been steady progress, but the alignment remains still limited. 
Therefore substantial efforts are still needed concerning statistical development. To this end, 
the new Statistical Law should be given priority. On social policy and employment, progress 
has  been  made  since  the  last  report,  in  particular  as  concerns  health  and  safety  at  work. 

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Nevertheless,  the  main  problematic  areas  remain  gender  equality,  labour  law,  anti 
discrimination,  and  social  dialogue.  Enforcement  and  full  implementation  of  the  legislation 
also appear as major challenges. 

Turkey has made some progress in the energy chapter, while the degree of alignment remains 
limited and uneven across the different areas covered by the acquis. Effective implementation 
of  the  acquis  requires  a  reinforcement  of  the  administrative  capacity.  Sector  restructuring 
including privatisation and the elimination of price distortions should continue. 

In the area of industrial policy, there is a large alignment with the EC principles of industrial 
policy.  Turkey  has  adopted  an  industrial  strategy,  but  privatisation  and  restructuring  are  not 
progressing  as  planned.  Steel  sector  and  state  owned  banks  in  particular  needs  to  be 
restructured. Despite progress in the framework legislation, foreign direct investment remains 
low. Concerning small and medium sided enterprises, access to finance has improved, and the 
Turkish policy is broadly in line with the EU enterprise policy. Nevertheless, further efforts 
remain  necessary  to  improve  SMEs’  access  to  finance,  and  the  business  environment.  In 
particular, a more effective treatment of the commercial court cases should be ensured. The 
definition  of  SME  used  by  Turkey  is  not  in  line  with  the  relevant  Commission 
recommendations. 

Some  progress  has  been  made  in  the  area  of  science  and  research.  The  framework  for  co-
operation  is  established,  and  representatives  of  Turkey  participate  as  observers  in  the 
Committees  preparing  the  6th  Framework  Programme.  To  achieve  full  and  effective 
participation to the Framework Programme requires that Turkey further upgrades its research-
related  administrative  capacity.  Similarly,  some  progress  has  been  achieved  concerning 
education and training, especially concerning the enrolment of girls in less favoured regions. 
The participation of Turkey to the EC programmes is satisfactory, but the investment remains 
below the EU average. Reforms and reinforcement of the training and education policies and 
institutions should continue, including the role of the High Education Board (YÖK), and the 
links between the labour market and the education should be improved.  

In the telecommunications sector, fixed telephony services has been fully liberalised in 2004, 
and competition in internet services market has increased. There is overall a certain level of 
alignment  with  the  acquis,  but  since  the  previous  Report,  very  limited  further  progress  has 
been  made.  Further  efforts  are  in  particular  necessary  to  complete  the  legal  framework  and 
effectively  implement  the  rules,  including  an  adequate  empowerment  of  the  Telecom 
Authority, and to ensure an adequate level of competition in all telecommunication services. 

Turkey’s  alignment  with  the  acquis  in  culture  and  audiovisual  policy  remains  limited,  but 
some  progress  has  been  made  through  adoption  of  the  regulation  concerning  radio  and 
television  broadcasts  in  languages  and  dialects  used  traditionally  by  Turkish  citizens.  The 
regulation has started to be implemented and broadcasts in Kurdish and other languages have 
started on national and regional basis. However, the conditions attached the regulation are still 
restrictive  and  substantial  efforts  continue  to  be  necessary  to  achieve  alignment  with  the 
acquis. 

The  acquis  concerning  regional  policy  is  relevant  for  the  implementation  of  Structural  and 
Cohesion Funds. Very limited development has been made and the overall level of alignment 
with  the  acquis  is  limited.  Substantial  efforts  would  therefore  be  necessary  to  make 
appropriate use of the EU’s structural instruments. Necessary institutions need to be created 
and administrative capacity to be reinforced. 

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Some  progress  has  taken  place  concerning  the environment,  and  the  administrative  capacity 
has  been  reinforced.  However,  the  overall  transposition  of  the  environment  acquis  remains 
low. Administrative capacity needs further reinforcement and improved co-ordination among 
the  administrations  involved.  The  most  intense  efforts  are  needed  for  horizontal  legislation, 
air  and  water  quality,  waste  management,  nature  protection,  industrial  pollution  and  risk 
management. 

In  the  area  of  consumers  and  health  protection,  efforts  to  align  with  the  acquis  have 
continued,  in  particular  concerning  market  surveillance.  Overall  alignment  is  uneven 
throughout  the  different  components  of  consumers  protection,  and  is  more  advanced 
concerning non-safety related measures. The efforts to ensure an effective transposition and 
implementation  of  the  acquis  on  product  liability  and  to  improve  administrative  capacity 
should be pursued. 

Turkey has continued to make efforts to align with the acquis in the area of justice and home 
affairs.  Nevertheless,  progress  is  required  in  important  areas  such  as  the  reform  of  the 
judiciary  and  the  fight  against  corruption.  Co-operation  both  at  national  level  among  all 
relevant administrative bodies and with the EU should be improved on issues such as illegal 
migration and trafficking, including through the negotiation of a readmission agreement. The 
geographic limitation to the Geneva Convention on refugees should be lifted and co-operation 
among the relevant institutions should be improved. 

Concerning the acquis in the area of customs union, there has been some progress since the 
previous  Regular  Report,  the  administrative  capacity  has  been  further  strengthened  and  the 
overall  level  alignment  is  high,  with  exceptions  in  specific  areas.  The  alignment  of  non-
customs provisions applied in free zones continues to diverge from the acquis and need to be 
corrected.  The  overall  level  of  alignment  concerning  external  relations  is  already  high,  and 
some further progress has taken place. The adoption of most of the EC Generalised System of 
Preferences  in  particular  is  a  welcome  development.  Certain  discrepancies  with  the  acquis 
still  exist,  concerning  special  regimes  under  the  GSP,  and  other  derive  from  the  difficulties 
met  in  the  negotiations  with  certain  third  Countries.  Turkey  is  encouraged  to  continue  its 
efforts in this area. As regards, common foreign and security policy, Turkey’s foreign policy 
continues  to  be  broadly  in  line  with  that  of  the  EU,  though  less  so  when  Turkey’s 
neighbouring countries are concerned. Turkey’s track record could be improved by ensuring a 
higher alignment with EU positions in international fora, and by ensuring the applicability of 
the sanctions or restrictive measured agreed. 

Some  progress  can  be  reported  since  last  year’s  Report  regarding  financial  control.  In 
particular,  the  adoption  of  the  Public  Financial  Management  and  Control  Law  constitutes  a 
significant step but the law will only be entirely implemented as from 2008.  Turkey should 
further reinforce its administration and the capacity to protect the financial interests of the EC. 
In addition, significant progress has taken place concerning national budget formulation and 
execution,  in  the  area  of  financial  and  budgetary  provisions.  However,  there  has  been  no 
improvement in the application of provisions on own resources. Further efforts are therefore 
necessary concerning the adoption of the necessary legislation and its implementation. 

Implementation  of  legislation  formally  aligned  with  the  acquis  continues  to  be  insufficient. 
Administrative  capacity  in  most  areas  needs  to  be  strengthened  to  ensure  that  the  acquis  is 
implemented and enforced effectively. In some cases, administrative reform should entail the 
establishment  of  new  structures,  for  example  in  the  field  of  state  aid  and  regional 
development.  Where  regulatory  bodies  have  been  set  up,  they  should  be  adequately 

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empowered  to  perform  their  tasks,  including  adequate  staffing  and  resources,  and  to  ensure 
that  their  decisions  are  enforced.  To  this  end,  their  autonomy  should  be  safeguarded. 
Improved co-operation between the Commission and the Turkish administration in areas such 
as conformity assessment should be extended to other areas. 

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