Communication from the Commission to the Council and the European Parliament - Tenth Anniversary of the Euro-Mediterranean Partnership: A work programme to meet the challenges of the next five years {SEC(2005) 482} {SEC(2005) 483}
Date: 2005-04-12
Institutions: European Commission
Subjects: EU programme, Mediterranean third countries, cooperation policy, economic growth, education, human rights

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.4.2005 
COM(2005) 139 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

TENTH ANNIVERSARY OF THE EURO-MEDITERRANEAN PARTNERSHIP:  

A work programme to meet the challenges of the next five years 

{SEC(2005) 482} 
{SEC(2005) 483} 

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1. 

INTRODUCTION:  THE  EU  IS  FULLY  COMMITTED  TO  THE  EURO-MEDITERRANEAN 
PARTNERSHIP 

The  meeting  of  Euro-Mediterranean  Foreign  Ministers  in  Barcelona  on  27-28 
November 1995 marked a turning-point in relations between the European Union and 
its neighbours on the southern and eastern shores of the Mediterranean. A partnership 
was  launched  which  is  comprehensive,  both in  its  geographical  coverage  and  in  its 
sectoral scope, and forward-looking in its political, economic and social ambitions.  

The  Barcelona  Process  has  developed  a  strong  partnership  on  a  basis  of  joint 
ownership,  dialogue  and  cooperation.  It  has  been  successful  in  creating  long-term 
political and institutional links between Europe and Mediterranean Partners;, and in 
engaging  Mediterranean  Partners  in  the  path  of  reforms.  More  importantly,  the 
partnership has been driven by a common political will to build together a space of 
dialogue, peace, security and shared prosperity. For the EU the Partnership has also 
reinforced what are historically and strategically strong links and solid relations with 
Mediterranean partners. 

Today,  in  an  increasingly  globalised  world,  the  EU  remains  the  main  partner  of 
Mediterranean countries both in trade of goods and services. More than 50% of the 
trade  of  the  region  is  with  the  EU,  and  for  some  countries  the  EU  represents  the 
destination  of  more  than  70%  of  their  exports.  Europe  is  the  largest  direct  foreign 
investor (36% of  total  foreign  direct investment) and the  EU  is  the  region’s largest 
provider of financial assistance and funding, with nearly € 3 billion per year in loans 
and  grants.  The  EU  is  also  the  main  source  of  tourism  and  the  first  destination  for 
migrants. 

Association  agreements  have  now  been  put  in  place  between  the  EU  and  the 
Mediterranean partners1 but the process of creating a truly regional market remains 
hampered,  notably  by  slow  integration  of  the  Mediterranean  countries  among 
themselves.  The  enduring  fragmentation  of  Southern  Mediterranean  markets  is 
holding back significant investment, both domestic and foreign. Intra-regional trade 
in the southern Mediterranean, below 15% of the total, is the lowest in the world for 
any  region  of  this  size.  So,  even  if  the  EU  is  the  region’s  largest  partner,  the 
partnership has not yet realised its full potential. 

The  regional  dimension  of  the  Partnership  has  also  grown  considerably  with  the 
establishment  in  2003  of  the  FEMIP  (The  Euro-Mediterranean  Investment  Facility 
for  the  Mediterranean,  in  the  framework  of  the  European  Investment  Bank);  the 
creation in 2004 of the Euro-Mediterranean Parliamentary Assembly; the setting up 
in 2005, after the decision taken by Ministers in 2004, of the Anna Lindh Foundation 
for  the  Dialogue  between  Cultures  in  Alexandria;  and  the  signature  of  the  Agadir 
Agreement2 in 2004. 

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2 

Agreements are in force with Morocco, Tunisia, Egypt, Jordan, Israel, Palestinian Authority, Lebanon. 
With Algeria the agreement has been signed and is awaiting ratification. With Syria an agreement has 
been initialled.  
The  Agadir  Agreement  for  a  south-south  free  trade  zone  was  concluded  between  Morocco,  Tunisia, 
Egypt and Jordan. 

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What  the  10th  Anniversary  Conference  presents  us  with  is  an  opportunity  to  take 
stock  of  what  the  Barcelona  Process  has  achieved  so  far,  and  to  look  at  where  the 
obstacles  to  progress  lie  and  how  we  might  approach  some  of  the  more  difficult 
issues afresh to ensure that our common goals are met. 

It  will  also  be  an  opportunity  to  look  at  how  the  European  Neighbourhood  Policy 
(ENP)  through  Action  Plans  agreed  with  Partner  Countries,  and  the  Barcelona 
Process can bring about a qualitative change in Euro-Mediterranean relations. One of 
the  main  goals  of  the  ENP  is  to  support  and  promote  domestic  reforms.  Thus,  the 
bilateral  Action  Plans  set  out  an  ambitious  agenda  for  regulatory  convergence  with 
the  EU.  In  this  way  the  ENP  and  the  Barcelona  Process  will  work  in  a 
complementary and mutually reinforcing way. 

European  Neighbourhood  Policy  offers  Partners  the  possibility  of  stake  in  the  EU 
internal market and the chance to participate in EU programmes and policies (on the 
basis  of  the  fulfilment  of  agreed  priorities,  reflecting  shared  values  and  policy 
objectives).  But  it  also  helps  to  strengthen  cooperation  between  countries  in  the 
Barcelona  process  and  further  promote  regional  and  sub-regional  cooperation.  The 
European  Neighbourhood  and  Partnership  Instrument  (ENPI)  will  provide  financial 
support  for  cross-border  and  trans-national  cooperation,  in  addition  to  current 
bilateral and regional cooperation. 

While  the  Barcelona  Declaration  and  its  overall  approach  remain  valid,  there  is  no 
room  for  complacency.  The  UNDP  Arab  Human  Development  Reports  and  the 
declarations of Sana’a and Alexandria and the Arab League Summit in Tunis in 2004 
have all stressed the need to move forward in areas such as political and economic 
reform,  women’s  rights  and  education  if  the  region  is  not  to  lag  behind.  Progress 
towards a number of the goals set out in the Barcelona Declaration has been slow, , 
partly  because  Partners  have  at  times  not  appeared  wholly  committed  to 
implementing the principles to which they have signed up, partly also because of the 
difficulties caused by the continuing conflicts in the region, and because the search 
for  consensus  has  sometimes  acted  as  a  brake  on  those  wishing  to  move  forward 
more rapidly. In addition, developments such as increasing globalisation and political 
and  economic 
joint 
examination  of  the  Partnership.In  the  economic  sphere,  a  lack  of  assertiveness  in 
pursuing  economic  reforms  and  addressing  the  challenges  of  economic  and  trade 
liberalisation  have  prevented  a  quantum  leap  in  the  level  of  economic  wealth 
generated by economic integration. It is necessary to redouble efforts to reduce the 
wealth  gap  between  the  north  and  the  south.The  Annex  to  this  Communication 
contains a detailed analysis of the achievements and shortcomings of the Barcelona 
Process  since  its  inception  in  1995  on  the  three  chapters  (political,  economic  and 
social) of the Partnership. It should be stressed that  the Communication focuses on 
proposals  to  strengthen  and  deepen  the  partnership  in  the  future.  This  list  of 
proposals  is  not  exhaustive  and  it  is  intended  to  complement  the  various  initiatives 
and programmes currently ongoing.  

interdependence  between  countries  requires  a  renewed 

During 2005 Foreign Ministers of the Partnership will meet in Luxembourg on 30-31 
May (‘Barcelona VII’) and an Extraordinary Conference will be held in Barcelona at 
the  end  of  November.  The  present  Communication  is  intended  to  serve  as  a 
preparation  for  both  meetings.  It  contains  proposals  to  make  concrete  progress  on 
some  critical  areas  for  the  future  of  the  region  and  for  EU  relations  with  our 

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Mediterranean  Partners.  Once  agreed,  these  initiatives  will  help  to  address  certain 
specific short and medium-term challenges faced by our Partners over the next five 
years: 

(1)  Human Rights and Democracy 

The  aim  is  to  advance  political  reforms  towards  human  rights,  democracy, 
peace and security and engage more decisively in the process of strengthening 
governance and participatory democracy. 

(2)  Sustainable Economic Growth and Reform 

The modernisation of Euro-Mediterranean Partners’ economies is necessary so 
they can benefit from the opportunities offered by globalisation, and free trade 
with  Europe.  Deepening  economic  integration  between  the  EU  and  the 
Mediterranean countries – together with south–south regional integration - will 
be  one  of  the  key  objectives  for  the  coming  years.  This  will  be  achieved 
through  trade  and  services  liberalisation,  enhanced  investment  and  regulatory 
convergence. In addition, the continuation of structural reforms aimed at lifting 
obstacles to growth, investment and job creation will be essential for a healthy 
macroeconomic environment. The economic benefits for the region in terms of 
employment and growth will help the Mediterranean Partner countries to create 
the  5  million  jobs  a  year  they  need  to  offer  better  economic  prospects  to  the 
new entrants to their labour markets while ensuring the pursuit of sustainable 
development  

(3)  Education 

Increasing the quality of education and providing education for all is critical for 
the social and human development of Mediterranean Partners. One third of the 
population  of  Mediterranean  partners  is  under  the  age  of  15.  Education 
policies,  knowledge  acquisition  and  dissemination  are  major  factors  for  a 
sustainable, future-oriented human development of the region. 

Discussion should however not be limited to these areas and the initiatives proposed 
in this Communication include proposals on areas such as social reforms, migration, 
weapons  of  mass  destruction  and  counter-terrorism,  also  aimed  to  address  the 
challenges that we will face over the next five years. 

This work programme is to be developed through the institutional framework of the 
Barcelona  Process  as  well  as  the  Neighbourhood  Policy  and,  in  particular  its  key 
instrument,  the  national  action  plans.  The  time-line  for  this  work  programme  is 
summarised  in  section  3  of  the  Communication.  A  substantial  reinforcement  of 
financial  resources  under  the  2007-2013  Perspectives  will  be  needed  andthe 
Commission  has  already  put 
the  new  European 
Neighbourhood and Partnership Instrument.  

forward  proposals 

for 

Successive Ministerial meetings have underlined the need for increased visibility of 
the Partnership in both the EU and in partner countries. The tenth anniversary and the 
celebration of 2005 as the Year of the Mediterranean provide a major opportunity to 

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address  this  situation  by  a  sustained  strategy  of  activities  and  events  to  raise 
awareness. 

Raising visibility requires a number of jointly agreed, clear and consistent messages 
to be addressed to the man and woman in the street using the most effective means of 
communication  and  dissemination.  The  role  of  the  mass  media  is  essential  to  this 
pursuit. 

The  Commission  has  already  presented  Partners  with  a  detailed  list  of  information 
and communication actions planned on a regional and national basis. These include 
satellite television programmes on a regional basis; bilateral activities with national 
television  and  radio  networks;  initiatives  with  the  national  and  regional  press;  pro-
active  organisation  of  events  and  exchange  opportunities  for  journalists  and 
dedicated activities targeting the civil society and youth sectors. In this context, the 
fight against racist audiovisual content should also be raised. 

As  agreed  at  the  last  Foreign  Ministers  meeting  in  The  Hague  effective 
communication depends on the convergence of messages transmitted by all Partners. 
The  Commission  urges  Partners  to  mobilise  governmental  and  non-governmental 
channels to achieve this. 

2. 

A WORK PROGRAMME FOR THE NEXT 5 YEARS 

2.1. 

Advancing Human Rights and Democracy 

Advancing political reform towards human rights and democracy is key to achieving 
sustainable  security  and  stability.  Based  on  the  Commission’s  Communication  of 
May  20033  on  human  rights  and  democratisation  greater  emphasis  has  been  placed 
on cooperation in these areas. Partners should consider how to pursue this, including 
developing policies to promote gender equality, fundamental and social rights, and to 
associate  and  engage  social  partners  and  civil  society,  as  well  as  encourage  its 
development.  An  important  issue  in  this  respect  is  to  strive  towards  common 
perceptions  of  the  challenges  of  democratisation,  including  the  role  of  democratic 
Islamic political movements in national politics. The Sana’a Conference in January 
2004  proved  to  be  a  constructive,  well  publicised  event  with  800  participants  from 
civil society, governments and international organisations from the Arab world. The 
Conference  Declaration  agreed  on  10  points  including  the  protection  of  human 
rights, the empowerment of women, the strengthening of democracy, pluralism, and 
independent judiciaries. Some of these conclusions could be usefully discussed in the 
framework  of  the  Euro-Mediterranean  Partnership.  More  recently,  the  UNDP  Arab 
Human Development report (issued on 5 April 2005) “Towards Freedom in the Arab 
World”  provides  a  thorough  examination  of  the  deficit  of  freedom  and  good 
governance and focuses on the state of freedoms and economic and social rights in 
the Arab countries and how far they are enjoyed in practice.  

In  line  with  the  Commission’s  Communication  of  May  2003,  the  Commission 
proposes  to  hold  a  Euro-Mediterranean  Conference  in  2006,  prepared  at  sub-

3 

Reinvigorating  EU  actions  on  Human  Rights  and  Democratisation  with  Mediterranean  Partners  -
COM(2003) 294. 

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regional  level,  on  Human  Rights  and  democratisation.  The  Conference  should 
constitute  a  focal  point  and  opportunity  to  push  forward  regional  efforts  to 
reinvigorate democracy and pluralism, publicise joint efforts in the framework 
of  the  Neighbourhood  Policy,  allow  for  exchanges  of  good  practice  and 
encourage  the  involvement  of  Arab  civil  society.  Actions  to  promote  civic 
awareness  and  human  rights  education  will  be  supported  at  regional  and 
national  levels.  This  conference  should  come  up  with  concrete  ideas  for  the 
future  with  results  to  be  made  operational  through  the  Neighbourhood  Policy 
and the financing instruments. 

Building on the activities undertaken by the Commission in the field of human rights 
and democratisation, the Commission will propose a Democracy Facility that will 
serve  to  promote,  support  and  reward  those  Partners  that  also  show  a  clear 
commitment  to  common  values  and  to  agreed  political  reform  priorities.  This 
facility,  within  the  European  Neighbourhood  and  Partnership  Instrument 
(ENPI),  would  go  beyond  the  specific  support  that  may  be  mobilised  under 
regional or national action plans. The Facility should enter into force in 2007. It 
will also allow for the further mainstreaming of good governance, promotion of and 
respect for human rights and democratic principles. 

2.2. 

Helping  to  create  jobs  and  sustainable  economic  growth  through  trade 
liberalisation and regional integration 

The  review  of  the  Barcelona  process  shows  that  the  partnership  has  been  very 
successful in achieving the objective of free trade in industrial goods between the EU 
and  each  of  the  Mediterranean  partners.  Partners  should  now  take  the  necessary 
measures  to  expand  the  scope  of  this  core  free  trade  area,  in  deepening  trade 
liberalisation in agriculture and fish products and in further opening markets to new 
areas such as  services and establishment. It  is estimated  that two-thirds  of  the total 
value added are generated in the service sector and agriculture. The picture is more 
mixed regarding the overall goal of creating a truly regional market that will boost 
investment and growth in the South and reducing the wealth gap between Europe and 
its neighbours. In view of the high rates of population growth in the Mediterranean, 
injecting  a  new  dynamism  into  market  integration,  with  a  view  to  generating  more 
investment,  higher  growth  rates  and  job  creation  must  be  a  priority  for  the 
relationship during the next five years. How this could be done is set out below. 

a)  Liberalising  Trade  in  Services  and  establishment  on  a  regional  basis  between 
willing partners 

The  liberalisation  of  trade  in  services  and  establishment  is  an  objective  that  is 
provided  for  by  the  Association  Agreements  with  all  the  EU’s  Mediterranean 
partners. It constitutes a key priority for achieving a genuine free trade area around 
the Mediterranean, which goes beyond free circulation of goods. This could become 
a powerful policy vehicle for trade-driven growth in the Mediterranean region with 
knock-on effects on other economic areas. 

Services account for some 60% of GDP in the Mediterranean countries. World Bank 
studies show that the liberalisation of trade in services generates substantial welfare 
gains (according to certain estimates, up to three times the benefits expected from the 

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liberalisation of trade in goods). Services liberalisation, in requiring comprehensive 
domestic reforms, also contributes to domestic economic adjustment and reform. 

Foreign investment to the region remains insufficient and has been identified as one 
of  the  major  shortcomings  of  the  economic  partnership.  To  address  this  pressing 
issue, the Mediterranean partners should facilitate establishment in their region. This 
should  not  be  limited  to  improving  the  regulatory  environment  for  foreign  and 
domestic  investments  –  where  progress  has  already  been  made  –  but  should  also 
include  a  review  of  the  wider  institutional  environment  with  a  view  to  eliminating 
remaining  bottlenecks  such  as  transaction  costs,  security  and  enforcement  of 
contracts and weak IPR protection among others. 

By  fostering  trade  and  investment  between  the  EU  and  its  Mediterranean  partners, 
the liberalisation of trade in services and establishment will contribute to closing the 
economic  gap  between  the  North  and  South  of  the  Partnership.  This  liberalisation 
process should be flanked by a strong component of regulatory convergence between 
EU single market rules and those in the partner countries. 

Against  this  background,  the  EU  should  be  prepared  to  invite  its  Mediterranean 
partners to embark on a new chapter of integration by engaging negotiations not on 
the traditional (‘hub and spoke’) model that has been followed since 1995, but in a 
way  that  would  combine  North-South  and  South-South  trade  integration.  The 
principle  of  voluntary  participation  must  be  clearly  inscribed  and  fully  respected. 
This new approach would consist of opening up on a regional basis negotiations for 
those countries who so wish.  

This approach mirrors that of the Framework Protocol on Services that was adopted 
by Trade Ministers in Istanbul in July 2004, and which will serve as a template in the 
forthcoming negotiations. Participating countries will continue to negotiate with each 
other  bilaterally,  but  the  result  of  these  talks  will  be  amalgamated  and  extended  to 
others on the basis of the principle of non-discrimination embedded in the so-called 
“regional  Most  Favoured  Nation  clause”.  This  clause  will  ensure  that  all 
Mediterranean partners are guaranteed to get the best offer made by the EU in any 
sector to any country. In return the participating countries will open their sectors to 
each other as well as to the EU. 

The EU and the Mediterranean countries should therefore agree to negotiate on 
the liberalisation and integration of trade in services and establishment, in line 
with the commitments taken at regional level and in the Neighbourhood Action 
Plans. This negotiation shall be open to all the Mediterranean partners willing 
to enter into such a regional agreement (with the exception of Turkey given its 
status  of  candidate  country).  The  Commission  will  submit  a  proposal  for 
negotiating  guidelines  to  the  Council  with  a  view  to  starting  negotiations  with 
partner countries during the 2nd half of 2005. Partners should agree to conclude 
negotiations  on  the  liberalisation  of  trade  in  services  and  establishment  with  a 
strong regional dimension, with the view to aligning this process with the 2010 
Free Trade Area objective. 

These  efforts  should  aim  at  combining  social  development  with  economic 
development.  In  this  respect,  and  in  order  to  guarantee  the  respect  for  fundamental 
social and economic rights, the ongoing Sustainability Impact Assessment of the free 

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trade  area  should  make  an  important  contribution  and  its  recommendations  help 
guide future policy. 

b) Trade liberalisation and cooperation in agricultural and fishery products 

On  the  basis  of  the  work  done  by  the  sectoral  Senior  Officials  meetings  on 
agriculture, a road map should be agreed for trade liberalisation in agricultural, 
processed agricultural products and fisheries with a regional mandate providing 
for a high degree of liberalisation with a very limited number of exceptions and 
a timetable for implementation consistent with the provisions and objectives of the 
Association  Agreements.  This  would  be  accompanied  by  a  commitment  to  the 
launching  of  a  regional  cooperation  programme  on  rural  development  and 
optimisation  of  quality  production  from  2007,  consistent  with  the  objectives  of  the 
Neighbourhood  Policy.  Following  the  expected  results  of  the  Euro-Mediterranean 
Conference  in  Luxembourg  in  May,  the  Commission  will  submit  a  proposal  for 
negotiating guidelines on trade liberalisation in agriculture and fisheries for approval 
by  the  Council  with  the  objective  to  start  negotiations  in  the  2nd  half  of  2005. 
Negotiations  should  be  concluded  within  a  year  with  a  view  to  aligning  the 
liberalisation  of  trade  in  agriculture  and  fisheries  with  2010  Free  Trade  Area 
objectives. 

c) Ensuring convergence of technical legislation with a view to facilitating trade 

Approximation  of  technical  legislation  in  the  area  of  standards  and  conformity 
assessment  bears  an  important  potential  in  terms  of  trade  creation,  investment 
attraction and, eventually, integration of the economies. The objective is to promote 
trade  by  aligning  standards  and  technical  requirements,  reducing  costs  related  to 
duplicative  testing  and  certification  and  thus  facilitate  market  access.  Workto 
harmonize  economic  legislation  has  already  started  on  the  basis  of  the  work 
programme adopted at the Euromed Trade Ministerial Conference of Palermo (July 
2003)  and  a  number  of  important  steps  towards  eventual  harmonisation  and/or 
mutual  recognition  of  trade-related  standards  across  the  Euromed  region  have  been 
achieved.  In  particular,  legislative  priorities  have  been  identified  with  each  partner 
for  the  sake  of  the  alignment  effort.  The  way  ahead  is  joint  work,  within  the 
European  Neighbourhood  Policy,  on  actual  approximation,  regulatory  and 
infrastructure upgrading, with the support of required assistance. Once the alignment 
effort  is  accomplished  and  equivalent  legislation  set  in  place,  Agreements  on 
Conformity  Assessment  and  Acceptance  (ACAAs)  of  industrial  products  can  be 
negotiated  wherever  possible,  thus  establishing  regulatory  ‘trade  corridors’  to  the 
benefit of economic integration and growth. 

d) South-South economic integration 

The  Euromed  process  is  not  only  about  building  preferential  and  reciprocal  trade 
relations between the EU and individual Med countries. An indispensable component 
of the Barcelona Process is to strengthen trade ties between Mediterranean countries 
themselves.  Only  thus  can  the  regional  free  trade  area  envisaged  in  the  Barcelona 
Declaration assume its full character. the expansion of South-South trade links in the 
region is of vital economic interest for the Mediterranean countries. Studies indicate 
vast untapped economic benefits in terms of potential foreign investments in opening 
up  trade  between  Med  countries  (South-South  trade).  The  benefits  would  be  felt 

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especially  in  terms  of  economic  diversity  and  employment,  two  of  the  major 
challenges  facing  the  region.  South-South  regional  integration,  in  partnership  with 
consolidated  North-South  links,  is  key  to  achieving  dynamic  and  diversified 
economies in Mediterranean countries. One of the most recent developments was the 
signing  in  February  2004  of  the  Agadir  Free  Trade  Agreement  between  Egypt, 
Jordan,  Morocco  and  Tunisia.  Other  FTAs  have  been  concluded  in  2004,  notably 
between  Turkey  and  Morocco,  Turkey  and  Tunisia,  Turkey  and  Palestinian 
Authority,  all  of  which  bear  witness  to  progress  on  regional  integration  in  the 
Mediterranean region. 

However, to achieve a fully fledged free trade area in the Euromed area by the agreed 
deadline  of  2010  many  more  agreements  need  to  be  concluded  and  existing  ones 
upgraded  into  genuine  FTAs.  The  Mediterranean  countries  should  therefore 
accelerate the conclusion of genuine Free Trade Agreements between themselves, in 
order to achieve the objective of a wide Euro Mediterranean free trade area by 2010, 
on which a Sustainable Impact Assessment is currently ongoing. 

Furthermore,  these  FTAs  will  also  enable  the  implementation  of  the  Pan  euro  med 
cumulation of origin. This system of cumulation of origin presupposes in effect the 
existence  of  preferential  relations  between  the  partners  involved  (by  definition, 
preferential  rules  of  origin  are  linked  to  preferential  arrangements).  The  pan  euro 
med  cumulation  of  origin  is  expected  to  bring  substantial  benefit  to  the  economic 
operators,  in  particular  easier  access  to  the  preference  as  well  as  enlarged  sourcing 
choice for industrials. 

As  regards  the  liberalisation  of  trade  in  services  and  establishment,  the  regional 
approach  as  embodied  in  the  regional  Most-Favoured-Nation  principle  of  the 
Framework  Protocol  on  trade  in  services  will  ensure  a  strong  South–South 
integration. 

A  road-map  should  be  agreed  for  the  creation  of  a  Free  Trade  Area  by  2010, 
including  free  trade  in  services  and  establishment,  and  liberalisation  of 
agriculture  and  fisheries  products,  building  on  existing  bilateral  and  regional 
free  trade  agreements,  including  the  Agadir  agreement,  as  well  as  on  the  pan 
Euro-Med protocol of origin.  

e) A sound macroeconomic environment 

A  healthy  macroeconomic  environment,  through  appropriate  fiscal  and  monetary 
polices,  needs  to  be  maintained  and  accompanied  by  structural  reforms  aimed  at 
lifting  obstacles  to  growth,  investment  and  job  creation.  Particular  attention  should 
be  paid,  in  this  context,  to  creating  an  enabling  environment  for  businesses, 
improving  governance  and  redefining  the  role  of  the  state  in  the  economy.  In  this 
context,  Mediterranean  Partners  are  encouraged  to  make  full  use  of  the  Economic 
Dialogues  provided  for  in  the  Association  Agreement  in  order  to  consolidate 
progress in macroeconomic stabilisation and growth policies, as indicated in the ENP 
Action Plans. These issues will be raised at the Ministerial Conference that will 
take place in Rabat in June 2005. 

f) AEuro-Mediterranean Development Bank. 

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Mediterranean partners have recently underlined the importance of creating a Euro-
Mediterranean Development Bank. In this context it is important to note that major 
progress  has  been  made  by  the  EIB  through  the  Facility  for  Euro-Mediterranean 
Investment and Partnership (FEMIP) which is now lending to Mediterranean partners 
at  the  rate  of  €  2  billion  per  year.  Progress  made  by  FEMIP  in  supporting  the 
activities  of  the  private  sector  should  be  assessed.  The  ECOFIN  Council  agreed  in 
November  2003  to  review  the  FEMIP  mandate  before  the  end  of  2006.  The 
possibility  of  establishing  a  Euro-Mediterranean  Development  Bank  should  be 
carefully  re-considered  in  the  light  of  the  FEMIP  experience,  the  experience 
with previous reviews of this idea and taking into account the overall review of 
the  EIB’s  External  Mandates.  The  Commission  will  submit  an  assessment  in 
2006 in this respect in consultation with the EIB. 

g) Transport 

Developing a Euro-Mediterranean transport network based on good interconnections 
(between  the  EU  and  the  Mediterranean  Partners,  and  among  the  Mediterranean 
Partners  themselves)  and  shared  policy  objectives  is  an  essential  precondition  to 
make the FTA work effectively. Necessary regulatory reform and opening of markets 
should  also  be  accompanied  by  significant  infrastructure  investment.  Important 
resources  for 
investment  are  available  in  FEMIP.  A  Euro-Mediterranean 
Transport Ministerial in 2005 with the participation of the EIB should endorse 
a regional transport infrastructure network with a list of priority projects, and 
adopt  a  set  of  recommendations  in  order  to  boost  Euro-Mediterranean 
transport  cooperation  and  transport  sector  reform  in  the  Mediterranean 
Partners. 

h) Energy  

The  gradual  establishment  of  a  Euro-Mediterranean  energy  market  plays  a  central 
role  in  achieving  the  objectives  of  the  Barcelona  Declaration  and  overall  economic 
and  social  development  in  the  region.  With  a  view  to  developing  such  a  market, 
important sub-regional projects are being pursued, such as the progressive integration 
of  Maghreb  countries’  electricity  markets  with  the  EU  electricity  market,  the 
integration of gas markets in the Mashreq region, energy projects of common interest 
to Israel and the Palestinian Authority and the construction of Medgaz and Arab Gas 
Pipeline. 

A  Euro-Mediterranean  Energy  Ministerial  should  be  held  in  2006  view  of 
progressing sub-regional integration of energy markets and infrastructures. 

i) Environment and sustainability 

The 10th Anniversary of the  EMP, is  an appropriate time to launch a major, highly 
visible and ambitious initiative designed to improve the quality of life of the average 
citizen, by the de-pollution of the Mediterranean Sea by 2020. The goal should be to 
tackle  all  the  major  sources  of  pollution  including  industrial  emissions,  municipal 
waste,  and  particularly  urban  wastewater.  This  initiative  would  improve  the 
prospects for the development of  tourism, contribute towards stemming the  decline 
in local fishery stocks as well as providing safe drinking water to millions of citizens.  

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A  clear  political  backing  and  substantial  financial  investment  will  be  required  to 
deliver  the  necessary  capacity  building  and  support  at  the  local  level  (including 
support for sustainable urban management and mobilization of local actors), transfer 
of  best  practices  (including  in  Integrated  Coastal  Zone  Management),  as  well  as 
major  investments  in  environmental  infrastructure.  With  a  clear  commitment  to 
concentrating financial assistance towards meeting this aim, its realization should be 
feasible. 

The  Commission  proposes  that  a  precise  timetable  should  be  agreed  with 
Mediterranean Partners on the adoption of measures leading to a thorough de-
pollution of the Mediterranean Sea by 2020. This timetable should be adopted in 
2006. 

2.3. 

Contributing to a better education for all 

a) Education and vocational training 

The  Arab  Human  Development  Reports  have  stressed  the  need  for  substantial 
improvements  in  education.  This  issue  has  most  recently  been  highlighted  at  the 
Forum for the Future Ministerial meeting in Rabat on 11 December 2004. It will also 
be  the  subject  of  the  Forum  for  the  Future  Education  Ministerial  due  to  be  held  in 
Jordan in May 2005. 

The  Commission  acknowledges  the  paramount  importance  of  the  development  of 
human  resources  for  the  economic  and  social  development  of  the  Mediterranean 
countries.  For  this  purpose,  the  Commission  has  €  704  million  in  ongoing  support 
programmes  to  education  and  vocational  training  in  the  Mediterranean  Partners 
under the current MEDA programme for 2000-2006. 

In  order  to  guarantee  that  the  Mediterranean  Partners  can  participate  in  and  profit 
from the knowledge society, there should be agreement to increase resources devoted 
to educational and vocational training programmes based on a partnership approach 
and  focussing  on  promoting  and  supporting  the  tailor-made  reforms  that  these 
countries require. This should result in a substantial increase in the percentage of EU 
funding  devoted  to  these  sectors.  The  Commission  proposes  to  engage  in  a 
dialogue  with  partner  countries  and  Member  States  in  order  to  substantially 
increase bilateral cooperation to the sector of education and vocational training. 
The  goal  would  be  to  increase  by  at  least  50%  the  proportion  of  financial 
cooperation devoted to education from 2007, in parallel with renewed efforts by 
national governments to invest in the sector.  

The size of these challenges calls not only for an increase in EU funding but also for 
more and better coordination and involvement of other donors such as the EIB, the 
World  Bank  and  the  UNDP.  It  should  crucially  also  involve  an  undertaking  by 
Mediterranean  Partners  themselves  to  devote  a  substantial  percentage  of  national 
expenditure to education and the eradication of illiteracy and to put in place measures 
to improve the efficiency of this expenditure. 

The guiding principle of the EU strategy is the ownership of the partner government 
and the need to ensure a balanced approach, which will guarantee the sustainability 
of  the  reforms  in  the  long  term.  The  Commission  will  continue  promoting  the 

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principle  of  equality,  which  implies  a  special  emphasis  on  underprivileged  groups 
and  local  populations:  illiterate  populations,  girl-students  and  populations  in  rural 
and suburban areas. The Commission will also support the efforts of modernisation 
of  the  systems  and  the  extension  of  access  to  information  and  communications 
technology.  The  latter  issue  should  be  among  those  addressed  by  the  Euro-
Mediterranean  Ministerial  meeting  on  the  Information  Society  due  to  be  held  in 
Ireland in April. 

The  aim  of  the  Partnership  should  be  to  improve  the  quality,  relevance  and 
consistency of education and vocational training regarding the socio-economic needs 
of  the  region  as  well  as  an  increase  in  access  and  retention  rates  particularly  for 
populations at risk of exclusion. In line with the Millennium Development Goals 
and through a combination of support to different policies, the EU and partner 
countries  should  focus  on  achieving  three  key  goals  by  2015 :  eradication  of 
illiteracy  in  the  region;  all  girls  and  boys  enrolled  in  primary  school;  and the 
elimination of gender disparity at all levels of education, requiring a particular 
effort to ensure the participation of women in education at all levels.  

b) Mobility in Higher Education 

Since 2002, the Euro-Mediterranean Partnership has adopted a number of initiatives 
in  the  area  of  mobility  and  academic  contacts  in  order  to  improve  mutual 
understanding  and  awareness  at  the  formative  stage.  In  2002,  at  the  Valencia 
Ministerial Conference, the Commission proposed, and the Council later agreed, the 
extension of the Tempus programme to Mediterranean Partners and the enhancement 
of cooperation under the Euro-Mediterranean Youth programme. These activities are 
complementary  to  the  support  to  systemic  reforms.  In  the  framework  of  the 
Neighbourhood Policy, Partners have agreed to pursue socio-cultural and educational 
exchanges. These activities are complementary to the support to systemic reforms. In 
2006  the  Commission  intends  to  strengthen  the  existing  mobility  programmes 
by  launching  a  substantial  scheme  of  scholarships  for  university  students  co-
funded  by  the  Commission  and  host  countries  within  the  Euro-Mediterranean 
region.  This  scholarship  scheme  would  be  implemented  within  the  existing 
instruments, i.e. through a specific window under the Erasmus Mundus programme 
(2004-2008) or by reinforcing student mobility inside the Tempus scheme. A certain 
percentage  of  this  scheme  will  be  reserved  for  women.  The  Commission  would 
also  propose  that  partners  consider  offering  children  approaching  the  end  of  their 
schooling  the  chance  to  spend  either  a  full  academic  year  or  a  summer  course  in  a 
school  in  another  partner  country.  The  promotion  of  intercultural  dialogue  among 
young  people  through  youth  exchanges,  voluntary  service  and  other  non  formal 
education activities should continue. 

To  facilitate  exchange  of  people  between  the  EU  and  partner  countries,  we  should 
work  together  to  develop  a  system  of  recognition  of  both  academic  and  vocational 
qualifications.  In  order  to  achieve  this,  partner  countries  should  consider  a  generic 
university  qualification  across  the  region  that  would  be  recognised  in  the  EU  and 
internationally.  

Given  the  emphasis  and  objectives  of  the  Neighbourhood  Policy,  Mediterranean 
partners have an interest in deepening knowledge of European integration. Partners 

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should therefore agree to encourage the pursuit of European studies in Mediterranean 
partners’ academic institutions 

2.4 

Justice, security and freedom, including migration and social integration 

Cooperation should be enhanced to develop common actions on Justice, freedom and 
security  areas  in  the  Mediterranean.  Partnership  in  fighting  security  threats  like 
organised crime, trafficking and terrorism, as well as the revitalisation of the process 
of government and development of democracy, human rights and the rule of law will 
help bring the Med partners closer to the EU. 

The  adoption  in  Valencia  of  the  regional  framework  document  and  the  subsequent 
implementation  of  the  regional  “JLS”  programme  have  represented  a  real  step 
forward, which also encouraged cooperation at bilateral level 

New  programmes  and  actions  aiming  at  encouraging  reform  of  and  co-operation 
between  judicial  systems,  combating  organised  crime,  drugs  and  terrorism,  and 
ensuring  a  joint  approach  to  the  management  of  migratory  flows  should  now  be 
realised. 

The Commission considers that the role played by the Association Agreements and 
Neighbourhood  Action  Plans,  notably  thanks  to  the  institutional  dialogue  taking 
place  in  the  “justice  and  security”  subcommittee  and  “migration  and  social  affairs” 
working group, is particularly important. 

Twinning between the EU and Mediterranean partners’ administrations prove to be 
particularly useful in this specific area and should be further promoted. Pilot projects 
can be supported under the Neighbourhood Action Plans and the new ENPI. 

Migration and social integration of migrants is a particularly sensitive issue. Nearly 5 
million citizens originating from the Mediterranean partners are now legally resident 
in the EU. Most of them are of Moroccan, Algerian and Turkish origin4. However, 
the demographic situation in the EU is leading to the need for new migrants to join 
the  work  force5.  Rather  than  focussing  on  reducing  migratory  pressurespartners 
should  agree  on  a  more  strategic  approach  that  aims  to  optimise  the  benefits  of 
migration  for  all  Partners.  Such  an  approach  would  include  intensified  cooperation 
aimed at preventing human tragedies that take place in the Mediterranean as a result 
of attempts to enter the EU illegally. Preventing further loss of life needs to be a clear 
priority in the framework of the partnership. 

Association  Agreements  and  Neighbourhood  Action  Plans  will  help  in  promoting 
joint management of the movement of people (including visa facilitation) as well as 
the  integration  of  migrants.  Some  of  the Association  Agreements  facilitated  certain 
progress  towards  equal  treatment  for  migrant  workers.  Efforts  need  to  continue  to 

4 

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an 

from 

report 

annual 

asylum 

Data 
online 
http://europa.eu.int/comm/justice_home/doc_centre/asylum/statistical/doc_annual_report_2001_en.htm. 
It must be noted that this figure relates only to holders of a third country citizenship and that it does not 
include former third country nationals from the Mediterranean countries who have been naturalised and 
have received the citizenship of the host country 
Green Paper on an EU approach to managing economic migration – COM(2004) 811 final 

and  migration 

available 

(2001), 

13 

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foster  integration  within  the  host  country,  including  through  intensifying  the  fight 
against discrimination and social exclusion. The new ENPI can be used to promote a 
comprehensive approach including cross-border cooperation among the partners and 
between them and their neighbours, and possibilities for the creation of a Euromed 
Centre of  Studies of Migration could be explored.  All aspects  should be taken into 
account, including requests made by Arab partners to discuss the fight against racism 
and xenophobia as well as a study of the labour markets in the EU and in partners. 

After  careful  preparation  at  senior  official  level,  Euro-Mediterranean  Social 
Affairs  and  Justice  and  Home  Affairs  Ministers  should  meet,  at  the  latest  in 
2007,  to  agree  on  a  series  of  further  actions  to  promote  cooperation  in  these 
fields. The role of local authorities and civil society in dealing with these issues 
should also be borne in mind. 

2.5 

Terrorism 

Since  1995  threats  to  the  security  of  the  partnership  have  increased  significantly. 
Nowhere is this more evident than in the fight against terrorism. Progress has been 
made  in  strengthening  cooperation  among  police,  judicial  and  other  authorities  and 
this will be further developed under the second phase of the regional programme; but 
there  remains  much  to  be  done  to  build  the  confidence  necessary  to  step  up 
exchanges of information on the threat from organisations and individuals. Bilateral 
state-to-state  cooperation  has  proved  insufficient  in  tackling  the  global  threat  of 
terrorism. Since 2001 serious terrorist attacks have hit Euro-Mediterranean countries 
but  regional  dialogue  on  dealing  with  this  has  too  often  foundered  over 
disagreements on definitions. 

Partners should agree to pursue the parallel tracks of greater practical cooperation in 
the fight against terrorism in full respect of human rights and political dialogue on its 
root  causes.  In  addition,  the  Commission  proposes  that  Euro-Mediterranean 
partners  should  start  discussions  on  a  Code  of  Conduct  on  measures  to  fight 
terrorism,  including  its  financing  aspects  as  proposed  by  Arab  partners,  with 
the objective to reach an agreement before the end of 2007.  

Cooperation at bilateral level should be reinforced and the ENP action plans chapter 
related  to  this  domain  fully  implemented.  A  broaden  geographical  approach, 
including  sub-Saharan  countries  in  the  cooperation  perspective,  is  also  important. 
Initiatives  such  as  the  creation  of  a  regional  counter-terrorism  centre  in  Alger  are 
therefore welcomed. 

2.6 

Weapons of Mass Destruction and ESDP 

The EU is working with Mediterranean partners to attain the objectives enshrined in 
the  Barcelona  Declaration  of  a  Mediterranean  region  free  of  weapons  of  mass 
destruction and that all countries of the region fully comply with and implement their 
international  obligations  in  this  area.  These  objectives  are  contained  in  the 
Association Agreement initialled with Syria and in the Neighbourhood Action Plans. 

The  Commission  welcomes  the  initiative  taken  by  the  Secretary  General  High 
Representative to organise a workshop on this subject. This Workshop will take 
place  in  2005.  Partners  should  agree  to  ensure  effective  cooperation  to  implement 

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their  commitments  in  particular  as  regards  export,  transit  and  end-use  controls  and 
enforcement  procedures.  The  Commission  is  prepared  to  examine  appropriate 
technical assistance in this field. 

Cooperation in the framework of the European Security and Defence Policy (ESDP) 
should be further developed on a regional, sub-regional or bilateral basis with a view 
to improving awareness of opportunities for working together in conflict prevention 
and crisis management activities. The forthcoming seminar due to be held in Athens 
in June offers such an opportunity. 

2.7 

The Middle East Peace Process 

The  review  shows  that  continuing  conflicts  are  an  obstacle  to  progress  in  the 
partnership. This is particularly true of the Middle East Peace Process. The paper6 by 
Arab partners places particular emphasis on this point. Following the recent meeting 
between  the  Israeli  Prime  Minister  and  the  President  of  the  Palestinian  Authority 
there  are  encouraging  signs  of  progress.  The  Barcelona  Process  can  make  a 
contribution to promoting this, even if this is not the forum in which a settlement will 
be reached. Partners should call for the strengthening of the efforts of the Quartet and 
facilitate  the  implementation  of  the  Road  Map  objectives  of  the  creation  of  a 
democratic  Palestinian  state  living  in  peace  and  security  with  Israel  as  the  guiding 
framework  for  the  peace  process  on  the  Israeli-Palestinian  track.  The  Euro-
Mediterranean Partnership should provide continued support for cooperation among 
the  parties,  particularly  in  the  industrial  and  economic  sectors,  to  complement  the 
political process. In the context of a settlement it should provide the instruments for 
Europe  to  help  maintain  the  peace  once  it  is  achieved  through  a  Charter  for  Peace 
and  Stability  and  the  closest  possible  integration  of  all  partners  into  the  European 
space through the Neighbourhood Policy. 

2.8 

Contribution to the resolution of other conflicts 

In addition, the EU should show its willingness to help resolve other conflicts in the 
region, such as that in the Western Sahara, thus eliminating a significant obstacle to 
developing  the  further  integration  process  within  the  Arab  Maghreb  Union.  In  this 
context  EU  support  for  regional  integration  in  the  Maghreb  already  plays  an 
important role. 

2.9 

Civil society 

In  this  context  with  support  from  the  existing  regional  programmes  and  the  Anna 
Lindh Foundation, virtual networks of universities in the Euro-Mediterranean region 
could be set up. The Foundation should be used to promote the role of civil society in 
the process, to overcome stereotypes and hostilities based on ignorance and help to 
achieve a genuine partnership among peoples. In line with an idea already included 
in  the  Barcelona  Declaration,  a  regional  strategy  “against  racism,  xenophobia  and 
intolerance”  should  be  designed  in  the  framework  of  the  partnership  instruments, 
including the Anna Lindh Foundation. 

6 

On 31 January, the Arab partners of the Barcelona Process issued a paper on « Elements of the Arab 
contribution to the evaluation and enhancement of the Barcelona Process ». 

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15 

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Concerning the role of civil society and social partners, agreement should be reached 
on  mechanisms  to  strengthen  their  presence  in  the  partnership.  These  could  be 
developed  by  promoting  the  participation  of  civil  society  groups  at  regional  and 
national levels for general or sector-specific consultations, in order to give them the 
opportunity to express their views on all matters related to the partnership in a more 
comprehensive and effective way. As regards the implementation of the Association 
Agreements and European Neighbourhood Policy, it could be agreed to hold regular 
preparatory  meetings  with  civil  society  organisations  before,  as  well  as  after,  each 
sub-committee on Human Rights and democratisation. 

Equality  of  opportunity  among  men  and  women  is  a  cross-cutting  issue  which 
impacts on human and economic development. 

A  Euro-Mediterranean  conference  of  government  representatives  and  civil 
society could usefully be organised to raise awareness of the importance of the 
issue  and  take  practical  steps  towards  the  improvement  of  the  situation.This 
conference  should  take  place  in  2006  and  should  propose  concrete  ideas  for  the 
future with results to be made operational through the Neighbourhood Policy and its 
financing instrument. 

2005 is also the 10th anniversary of the Beijing Declaration and Platform for Action 
on  women’s  rights,  and  both  Euromed  meetings  should  strongly  reflect  the 
importance  that  the  Barcelona  Process  places  on  empowering  women.  The 
Commission is fully engaged with the Arab International Women’s Forum in its 
efforts  to  make  progress  on  this  area,  and  proposes  to  set  up  a  Network  of 
Women  Leaders  from  business,  the  arts,  politics  and  civil  society  across  the 
region. 

3. 

TIMELINE FOR KEY INITIATIVES 

Following  from  the  above,  the  Commission  recommends  that  at  the  Ministerial 
meetings  in  Luxembourg  and  Barcelona  this  year  agreement  should  be  reached  on 
the following initiatives for the future of the partnership: 

2005  –  The Euro-Med  partners should  launch regional negotiations,  on  a voluntary basis, 
on  the  liberalisation  of  services  and  establishment.  The  Commission  will  submit 
negotiating guidelines for approval by the Council to this effect. 

–  Euro-Mediterranean partners should agree a road map for agricultural liberalisation, 
including  processed  agricultural  products  and  fisheries.  The  Commission  will 
submit negotiating guidelines for approval by the Council to start negotiations with 
partner countries. 

–  The  Pan-Euro-Med  Protocol  of  Origin  will  be  progressively  implemented 

throughout the Euromed, from 2005. 

–  Organise a workshop on Weapons of Mass Destruction 2005. 

–  A Euro-Mediterranean Transport Ministerial should take place before the end of the 
year with the participation of the EIB, to endorse a regional transport infrastructure 

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network interconnected to the Trans-European Transport Network, and agree on the 
priorities of the Euro-Mediterranean Transport cooperation for the next few years. 

–  A Ministerial Conference on economic and financial affairs will take place in 

Rabat. 

2006  –  A Euro-Mediterranean Conference will be held, prepared at sub-regional level, on 

human rights and democratisation.  

–  Approximation work in the field of technical legislation, standards and certification 
procedures  should  have  intensified  so  as  to  pave  the  way  for  negotiations  on 
conformity assessment agreements (ACAAs). 

–  A  Euro-Mediterranean  Conference  on  gender  equality  with  the  participation  of 
government representatives and civil society and social partners should take place. 
The Conference should concentrate on the comparison of best practices within the 
region  to  raise  the  role  of  women  in  society  and  their  contribution  to  human 
development.  

–  Adoption  of  a  timetable  with  concrete  measures  with  the  objective  of  a  thorough 

de-pollution of the Mediterranean by 2020. 

–  In  the  light  of  the  FEMIP  experience,  and  following  consultations  with  partner 
countries, the Commission will assess before the end of the year the possibility of 
establishing a Euro-Mediterranean Development Bank.  

–  The  Commission  will  launch  a  Scholarship  scheme  for  university  students  either 
within  the  existing  Erasmus  Mundus  programme  or  by  reinforcing  mobility 
activities inside the Tempus scheme. 

–  A Euro–Mediterranean Energy Ministerial should take place in view of progressing 

sub-regional energy integration markets and infrastructures 

2007  –  Euro-Mediterranean Partners should reach agreement before the end of the year on 

a code of conduct on measures to fight terrorism.  

–  A Euro-Mediterranean conference of Justice and Home Affairs Ministers, with the 
participation  of  local  authorities,  should  be  held  to  discuss  management  of 
migratory flows and social integration.  

–  A regional programme on rural development and optimisation of quality production 

should be identified for implementation.  

–  After  consultation  with  partner  countries,  the  percentage  devoted  to  bilateral 
cooperation in the education sector should be increased by 50% of the national and 
regional indicative programmes. 

–  The Democracy Facility will enter into force.  

2010  –  All  South-South  free  trade  agreements  should  be  concluded  and  implemented  by 

the end of the year, including for services and establishment as well as agriculture. 

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–  Completion  of  Euro-Mediterranean  electricity  and  gas  markets  and  infrastructure 

interconnections 

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