Communication from the Commission - Comprehensive monitoring Report on the state of preparedness for EU membership of Bulgaria and Romania {SEC(2005) 1352, SEC(2005) 1353 SEC(2005) 1354 }
Date: 2005-10-25
Institutions: European Commission
Subjects: Bulgaria, Romania, accession criteria, accession to the European Union, economic situation, enlargement of the Union, political situation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.10.2005 
COM (2005) 534 final 

COMMUNICATION FROM THE COMMISSION 

Comprehensive monitoring report  
on the state of preparedness for EU membership of  
Bulgaria and Romania 

{SEC(2005) 1352, SEC(2005) 1353 SEC(2005) 1354 } 

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1. 

INTRODUCTION 

The  accession  negotiations  with  Bulgaria  and  Romania  were  concluded 
in 
December 2004  and  a  Treaty  of  Accession  was  signed  in  April  2005  with  a  view  to 
welcoming  both  countries  as  members  as  from  January  2007.  This  Treaty  is  currently 
being ratified. 

The  accession  of  Bulgaria  and  Romania  will  complete  the  fifth  enlargement  of  the  EU 
which  started  in  May  2004  with  the  accession  of  ten  new  Member  States  mostly  from 
central  Europe.  It  will  bring  these  countries  which  had  been  artificially  separated  from 
Europe  in  recent  history  back  into  the  European  family  and  will  benefit  all  Member 
States  in  the  enlarged  EU  by  further  extending  peace,  democracy  and  prosperity 
throughout Europe.  

In its Strategy Paper and Reports published in October 2004, the Commission noted the 
progress  made  by  both  countries  in  their  preparations  for  accession.  The  Commission 
also identified a number of areas where further improvements needed to be made in order 
to  fully  meet  all  membership  requirements  and  facilitate  successful  membership.  The 
Commission decided to enhance its monitoring of the countries’ preparations.  

The European Council of December 2004 concluded that Romania and Bulgaria will be 
able  to  assume  all  the  obligations  of  membership  at  the  envisaged  time  of  accession 
provided  they  continue  their  efforts  and  complete  the  necessary  reforms  in  all  acquis 
areas,  with  specific  attention  for  the  area  of  Justice  and  home  affairs  and  for  Romania 
also  Competition  policy  and  Environment.  The  EU  would  continue  to  closely  monitor 
preparations.  The  European  Council  recalled  that  safeguard  clauses  will  provide  for 
measures  to  address  serious  problems  that  may  arise  before  accession  or  in  the  three 
years after accession, in particular in the above-mentioned areas. 

In  presenting  this  Report  the  Commission  fulfils  the  commitment  made  in  its  2004 
Strategy  Paper  and  responds  to  a  request  expressed  by  the  European  Council  in 
December 2004 to continue to submit annual reports on Bulgaria and Romania’s progress 
towards accession, together with recommendations if appropriate.  

The  Commission  also  wishes  to  contribute  to  helping  Bulgaria  and  Romania  in  their 
further preparations so as to ensure a successful accession. Based on individual country 
reports,  the  conclusions  of  which  are  annexed,  this  Report  assesses  the  countries’ 
preparedness  for  membership,  identifies  remaining  gaps  and  presents  steps  to  be  taken 
for dealing with these gaps. It reflects the situation at the end of September 2005.  

2. 

COMPREHENSIVE MONITORING REPORTS 

2.1.  Method 

Bulgaria’s and Romania’s progress towards accession has been continuously monitored 
by  the  Commission  over  a  number  of  years.  This  year’s  reports  evaluate  Bulgaria  and 
Romania’s  state  of preparedness for accession in 2007 on the basis of the political  and 
economic criteria for membership and of the requirement to adopt and implement the EU 

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legal order known as the ‘acquis communautaire’, as laid down by the European Council 
in 1993 in Copenhagen.  

As regards the political and economic membership requirements, the reports examine the 
extent to which progress has been made in the areas highlighted in the conclusions of last 
year’s  reports  as  requiring  further  improvements.  They  indicate  the  issues  requiring 
further  efforts  and  give  an  overall  assessment  of  whether  the  countries  fulfil  these 
criteria.  

As regards the adoption and implementation of the acquis, the reference framework for 
this year’s monitoring is the Treaty of Accession which contains rights and obligations of 
the  future  Member  States  and  concrete  commitments  on 
their  adoption  and 
implementation  of  the  entire  acquis.  The  basic  commitment,  and  a  central  Treaty 
obligation, is to apply all the EU rules and legislation from the first day of membership, 
with the exception of those areas where transitional arrangements have been agreed in the 
negotiations.  As  in  previous  reports,  the  acquis  has  been  divided  into  the  29  chapters 
used for the purpose of the negotiations. The analysis is further broken down into specific 
areas  of  acquis  (around  140  in  total),  within  which  possible  problematic  issues  are 
identified. 

As a rule, only legislation actually adopted and measures actually implemented are taken 
into  account.  Issues  requiring  further  efforts  as  well  as  delays  in  preparations  are 
signalled. In the conclusion of each chapter, its areas are grouped in three categories. 

The first category embraces those areas where a country is ready or where preparations 
are  ongoing  and  which  should  be  resolved  by  accession  if  the  current  pace  of 
preparations  is  maintained.  The  second  category  includes  remaining  areas  requiring 
increased efforts and faster progress in order to be resolved by the time of accession. The 
third  category  addresses  areas  of  serious  concern.  Such  areas  contain  important  issues 
where immediate and decisive action needs to be taken for the country to be ready by the 
date of accession.  

The  reports  are  based  on  information  provided  by  the  governments  of  Bulgaria  and 
Romania,  by  the  international  (financial)  institutions  and  by  several  national  and 
international  NGOs.  The  Commission  compared  this  information  with  its  own  findings 
and  insights  gathered  through  the  Commission’s  delegations,  field  visits,  peer  reviews, 
and discussions with Bulgarian and Romanian counterparts.  

2.2. 

Summary of the findings 

2.2.1.  Political criteria 

The  Commission  concluded  last  year  that  both  countries  fulfilled  the  political  criteria. 
This assessment remains valid. 

In  2004  the  Commission  suggested  a  number  of  areas  for  each  country  where  further 
improvements could still be made. The 2005 reports show that progress has been made in 
some  of  these  areas,  such  as  freedom  of  expression  in  both  countries,  the  fight  against 
petty  corruption  in  Bulgaria,  and  the  reform  of  the  justice  system,  the  integration  of 
minorities, child protection and property restitution in Romania. 

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However, further improvements are still needed in a number of areas. These concern, for 
both  countries,  the  public  administration  reform,  the  functioning  of  the  justice  system, 
the prosecution of high-level corruption, the fight against trafficking in human beings, ill-
treatment  in  custody,  the  mental  healthcare  system  and  the  integration  of  the  Roma 
minority. 

The  existence  of  efficient  public  administrations  and  justice  systems,  and  the  fight 
against  corruption  are  essential  for  the  effective  implementation  of  the  acquis.  Both 
countries need to vigorously pursue their current efforts in these areas. They still need to 
reinforce their public administrations at all levels, including regional and local levels, in 
terms  of  improving  their  accountability,  reliability,  coordination  among  and  within 
institutions,  staffing  and  financial  resources.  The  reforms  aimed  at  modernising  both 
countries’ justice systems should continue, so as to ensure the effective enforcement of 
the  acquis.  This  concerns  in  particular  the  pre-trial  phase  and  the  need  to  improve  the 
accountability of the justice system in Bulgaria. In Romania, justice reform is broadly on 
track  but  implementation  will  need  to  continue  in  strict  accordance  with  the  deadlines 
laid down in the action plan.  

In  both  countries  corruption  is  still  a  problem  which  affects  confidence  in  the  public 
administration and the judiciary, thereby also affecting the proper implementation of the 
acquis.  The  fight  against  corruption  should  therefore  continue  to  be  high  priority.  The 
countries’  authorities  should  not  spare  efforts  to  enforce  anti-corruption  legislation,  to 
investigate  and  prosecute  high-level  corruption  cases,  and  to  take  preventive  measures. 
The Commission will also pay particular attention in the coming years to protecting EU 
funds  from  being  diverted  from  their  rightful  beneficiaries  as  a  result  of  fraud  and 
corruption. 

2.2.2.  Economic criteria 

The Commission  concluded  last year that  both  countries complied  with  the  criterion  of 
being a functioning market economy. As regards compliance with the criterion of being 
able to cope with competitive pressure and market forces within the Union, it concluded 
that,  for  Bulgaria,  ‘the  continuation  of  its  current  reform  path’  and  that,  for  Romania, 
‘vigorous  implementation  of  its  structural  reform  programme’  should  allow  them  to  do 
so. This assessment remains valid.  

Both  countries  continued  to  show  relatively  favourable  economic  developments.  Real 
GDP growth, 5.6% for Bulgaria and 8.3% for Romania, was strong in 2004 and this trend 
broadly continued in the first half of 2005. Inflation remained fairly low in Bulgaria and 
fell further in Romania. Employment has also started to rise, leading to slight reductions 
in unemployment rates in both the countries. Financial intermediation deepened further, 
driven by the strong growth in domestic lending in both countries. Despite being uneven 
across  the  various  areas,  structural  reforms  continued  in  both  countries,  thereby 
strengthening the medium-term competitiveness of their economies. 

In 2004 the Commission suggested a number of areas where further improvements could 
particularly  still  be  made.  The  2005  reports  show  that  considerable  progress  has  been 
made  in  several  of  these  areas,  such  as  privatisation  of  state-owned  enterprises  or  the 

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liberalisation of telecommunications in Bulgaria, and the restructuring of key sectors and 
the improvement of financial discipline in Romania.  

However, in a number of areas progress has clearly been less pronounced. In particular, 
in  Bulgaria  the  current  account  deficit  has  further  widened  and  labour  market  reforms 
have  been  very  limited.  In  Romania,  the  expansionary  policy  mix  has  widened 
macroeconomic  imbalances.  Privatisation  has  continued  but  at  a  slower  pace  than 
envisaged in the Government’s programme. These issues call for continued attention. 

2.2.3.  Legislative and administrative preparations 

Last year the Commission expected both countries to fulfil the acquis criteria and to be 
ready for membership by January 2007, bearing in mind the progress achieved, the track 
record  in  implementing  their  commitments,  and  taking  into  account  their  preparatory 
work in progress. This Report shows that both countries have, since then, made further 
progress in adopting and implementing the acquis.  

However,  developments  have  been  insufficient  in  a  number  of  areas.  Overall,  it  is 
important that the acquis is not only adopted, but also implemented on the ground. Both 
countries  need  to  step  up  their  efforts  to  complete  preparations  and  in  particular  to 
develop  a  sufficient  administrative  and  judicial  capacity  to  implement  and  enforce  the 
acquis. 

Progress made in adopting and implementing the acquis 

In most areas of the acquis, preparations for membership are quite well advanced in both 
countries.  Relatively  few  problems  still  exist  in  the  acquis  chapters  relating  to  capital 
movements,  company  law,  transport,  energy,  statistics,  economic  and  monetary  union, 
industrial  policy,  small  and  medium-sized  enterprises,  science  and  research,  education 
and  training,  external  relations,  common  foreign  and  security  policy  and  EU  budgetary 
provisions.  In  addition,  in  Bulgaria,  competition  rules  and  the  acquis  on  culture  and 
audiovisual  policy  are  well  respected.  In  the  case  of  Romania,  the  situation  is 
encouraging  in  relation  to  most  areas  concerning  the  free  movement  of  persons, 
telecommunications and consumer protection. In all these chapters, if the current pace of 
progress is maintained, Bulgaria and Romania should be able to integrate smoothly into 
the EU. 

Issues requiring increased efforts 

Bulgaria  and  Romania  have  thus  reached  a  considerable  degree  of  alignment  with  the 
acquis  by  the  cut-off  date  of  30  September  2005,  which  is  15  months  away  from  the 
envisaged  date  of  accession.  Nevertheless,  at  this  stage  the  Commission  has  also 
identified a number of areas where increased efforts are required. 

In both countries the fight against money laundering must be given more attention. In 
the  area  of  agriculture,  Bulgaria  and  Romania  need  to  speed  up  preparations  for  their 
integration  into  the  Common  Market  Organisations  and  for  putting  in  place  the 
mechanisms  for  external  trade.  Both  countries  must  give  greater  priority  to  the 
completion  of  preparations  in  fisheries.  The  horizontal  environmental  legislation  is  not 
yet  completed  in  either  country  and  increased  efforts  are  needed.  In  the  social  policy 

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field, both acceding countries must step up efforts in the areas of labour law and social 
dialogue  and  must  improve  public  health,  social  inclusion  and  conditions  in  care 
institutions and to combat discrimination. Increased efforts are required in both Bulgaria 
and  Romania  to  prepare  for  the  implementation  of  the  Structural  and  Cohesion  Funds, 
including timely accreditation for Extended Decentralisation (EDIS) in the context of the 
pre-accession  funds.  The  legislative  framework  is  not  yet  complete  and  work  on 
preparing the pipeline, with adequate co-financing mechanisms, needs to continue. In the 
field of justice and home affairs, Bulgaria and Romania must accelerate preparations to 
apply EU visa and anti-drugs policies and the judicial cooperation mechanisms between 
Member  States.  Important  weaknesses  still  exist  in  the  area  of  financial control,  which 
may  affect  the  countries’  ability  to  implement  EU-funded  programmes  in  a  sound  and 
efficient way.  

In  addition,  in  Bulgaria,  particular  efforts  will  still  be  required  in  the  field  of  public 
procurement; financial services; minimum training requirements and mutual recognition 
rules  for  a  number  of  professions;  freedom  to  provide  non-financial  services;  and  the 
principle of mutual recognition of product specifications, although in general much has 
been done as regards the internal market acquis. Increased efforts are needed to ensure 
adherence to the national restructuring programme for the steel industry, in particular the 
commitment not to grant restructuring aid to the steel sector after 2005. Among the other 
sectoral policies, Bulgaria needs to accelerate efforts in relation to transport by air and 
over  sea  and  in  relation  to  energy  and  telecommunications  market  liberalisation.  In  the 
area of social policy, increased efforts are needed as regards anti-discrimination policy. 
In  relation  to  taxation,  Bulgaria  needs  to  accelerate  alignment  with  both  indirect  and 
direct  taxation  rules  and  to  rapidly  complete  the  setting  up  of  implementing  structures. 
Shortcomings  still  exist  in  Bulgaria  in  the  environmental  policy  fields  of  integrated 
pollution  prevention  and  control,  implementation  of  waste  management  legislation  and 
nuclear  safety,  and  in  relation  to  all  aspects  of  the  consumer  protection  acquis.  In 
Bulgaria, the implementation of the acquis on asylum needs to be speeded up. In the field 
of  customs,  efforts  will  be  required  to  ensure  the  computerisation  and  interconnectivity 
with EU customs IT systems. 

Romania  has  also  achieved  a  good  level  of  alignment  in  many  areas  related  to  the 
internal  market,  but  increased  efforts  are  needed  in  the  field  of  industrial  product 
requirements,  the  freedom  to  establish  companies,  and  the  protection  of  personal  data. 
Although  good  progress  has  been  made  in  state  aid  control,  efforts  are  still  needed  to 
attain  a  satisfactory  enforcement  record.  Romania  needs  to  increase  efforts  in  the 
audiovisual sector and in relation to the implementation of the customs union acquis. The 
fight against organised crime must be stepped up in Romania.  

Corrective  action  is  at  this  moment  feasible  and  expected  in  all  these  areas,  but  both 
countries are warned that greater efforts are required to solve them in time for accession. 
If such efforts are not undertaken as expected, there is a real risk of delays in transposing 
and applying the acquis by accession. For example, there is a serious risk that Bulgaria 
and Romania will not have the enforcement capacity to implement rules on the protection 
of personal data unless efforts are speeded up. Also, Romania must reduce the proportion 
of motor vehicles which are uninsured against third party liability with a view to joining 
and implementing the ‘green card’ Multilateral Guarantee Agreement before accession.. 
If  such  cases  are  not  resolved  in  time,  they  would  be  subject  to  remedial  action  by  the 
Union as described in Point 3.2 below.  

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Areas of serious concern 

The  Commission  has  identified  a  number  of  gaps  in  the  preparation  for  membership 
which are of serious concern and where, unless immediate and decisive action is taken, 
the  country  in  question  will  not  be  in  a  position  to  implement  the  acquis  or  to  benefit 
from EU funds by accession in 2007.  

Both countries suffer from high levels of piracy and counterfeiting. Enforcement must 
be  strengthened,  especially  border  control  and  the  effective  prosecution  of  intellectual 
property violations.  

Bulgaria  and  Romania  must  reinforce  efforts  to  set  up  the  necessary  institutions  and 
administrative  capacity  to  apply  direct  support  schemes  for  farmers,  to  realise  market-
related  expenditure  and  to  disburse  rural  development  funds  in  the  context  of  the 
Common  Agricultural  Policy.  There  are  serious  concerns  that  the  paying  agencies  and 
the  integrated  administration  and  control  system  will  not  be  fully  functional  by 
accession.  Unless  this  situation  is  remedied,  new  Member  States  run  the  risk  that  their 
farmers will not have access to payments under the Common Agriculture Policy.  

The  adoption  and  implementation  of  the  necessary  veterinary  legislation  is  urgently 
required  in  both  countries.  Problems  in  this  area  compromise  the  integration  of  both 
countries’  animal  sector  into  the  internal  market  because  if  they  are  unresolved  they 
would  undermine  the  veterinary  system  and  the  safety  of  the  food  chain  in  the  EU. 
Insufficient progress has been made to date notably in organising the identification and 
registration of animals and checks on third country imports within the framework of the 
overall  veterinary  control  system.  The  implementation  of  the  acquis  in  respect  of 
transmissible  spongiform  encephalopathies  (TSEs)  such  as  BSE  is  a  cause  of  serious 
concern for both countries. Animal disease control is flawed in Bulgaria and Romania as 
serious diseases appear to be endemic. Measures may be needed to protect the rest of the 
EU  from  disease.  In  both  countries,  the  current  pace  of  upgrading  their  agri-food 
establishments will not permit all of them to meet the obligations agreed in the accession 
negotiations. In the interest of public health, specific measures will be taken to deal with 
non-compliant  producers,  for  example  by  imposing  restrictions  on  the  production  and 
marketing of their products. 

Bulgaria and Romania do not possess sufficient border infrastructure and lack sufficient 
numbers  of  well-trained  staff  to  ensure  full  compliance  with  EU  external  border 
requirements  and  procedures.  Specific  restrictive  measures  may  need  to  be  imposed  to 
prevent the internal security of the EU from being compromised.  

Corruption  remains  a  serious  problem  in  both  Bulgaria  and  Romania.  If  it  remains  at 
current  levels,  corruption  threatens  the  internal  market,  the  proper  functioning  of  EU 
policies  and  EU-funded  programmes.  Urgent  and  forceful  action  is  needed  to 
demonstrate the ability of Bulgaria and Romania to combat corruption effectively and to 
set  in  motion  an  irreversible  decline  in  the  levels  of  corruption.  The  unambiguous 
enforcement  of  the  rule  of  law  is  a  precondition  for  any  country  aspiring  to  EU 
membership. 

Both Bulgaria and Romania face substantial difficulties with regard to the administrative 
capacity of the institutional framework and in ensuring adequate financial management 

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and  control  for  the  implementation  of  EU-funded  Structural  Funds  programmes  and 
Cohesion Fund measures. If the required bodies are not in place or if their administrative 
capacity  remains  weak,  Bulgaria  and  Romania  will  not  be  in  a  position  to  absorb  all 
funding allocated to them. 

In addition, serious concerns remain regarding the enforcement by Bulgaria of the rules 
on  motor  vehicle  insurance,  with  high  levels  of  vehicles  uninsured  against  third  party 
liability. If Bulgaria does not join and implement the ‘green card’ Multilateral Guarantee 
Agreement border controls may need to be maintained for compulsory insurance against 
third party liability after accession. In the field  of agriculture, Bulgaria is insufficiently 
advanced  in  setting  up  the  milk  market  organisation,  which  will  impede  EU  market 
interventions in that sector if not remedied in time. In the field of veterinary control, the 
capacity to treat animal waste is insufficient in Bulgaria. Bulgaria has also not transposed 
the acquis on trade in live animals and animal products and the enforcement of animal 
welfare rules at farm level, during transport and at slaughter is deficient. In the field of 
justice  and  home  affairs,  in  addition  to  the  problems  mentioned  above,  Bulgaria  has 
failed to curb organised crime. Here too, the rule of law must be made to prevail. 

In  addition,  Romania  has  not  completed  alignment  with  EU  public  procurement  rules, 
and the implementation and enforcement of these are seriously flawed. If not corrected, 
this  would  create  unfair  conditions  for  operators  from  other  Member  States  and  affect 
Romania’s ability to implement EU-funded programmes in a sound way. Disbursement 
of EU funds, notably under the Structural and Cohesion Funds, may not be possible as 
long  as  this  situation  persists.  There  are  serious  delays  in  Romania  in  computerisation 
and interconnectivity with EU tax IT systems. Unless immediate and sustained efforts are 
made, appropriate remedial measures will be required to safeguard the smooth operation 
of  EU  taxation  systems.  In  the  environmental  field,  Romania  does  not  have  sufficient 
administrative  capacity  to  complete  the  issuing  of  permits  to  industrial  operators  in 
compliance  with  the  EU  rules  on  integrated  pollution  prevention  and  control  and  to 
ensure  rules  are  enforced.  This  would  have  adverse  cross-border  environmental  effects 
and  would  create  unfair  operating  conditions  for  industries.  Remedial  measures  might 
need to be imposed as long as this situation persists.  

Translation of the acquis 

The two countries must also ensure the acquis is translated into Bulgarian and Romanian 
respectively. Of the nearly 90 000 pages of acquis, Bulgaria has already translated more 
than  95%.  However,  around  60%  of  these  have  still  to  be  revised  by  the  national 
authorities  before  they  can  be  submitted  to  the  EU  institutions.  Romania  has  translated 
almost 60% but more than 50% of this volume still has to be revised. 

The translation and revision capacity in both countries has not yet reached the necessary 
throughput  level  of  some  6 000  pages  per  month,  largely  due  to  difficulties  with 
recruiting  and  retaining  staff.  The  Bulgarian  and  Romanian  governments  have  been 
urged to give this matter the necessary attention. 

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3. 

NEXT STEPS  

3.1. 

Actions to be taken by Bulgaria and Romania 

It is the responsibility of the authorities of both countries to take all necessary corrective 
measures to address the shortcomings identified in this Report, so as to ensure that they 
will  be  fully  prepared  for  membership  in  2007.  All  energy  and  efforts  should  now  be 
geared towards that goal.  

This  will  involve,  at  all  government  levels,  precise  activity  planning,  setting  priorities, 
adopting  measures  and  ensuring  an  adequate  allocation  of  the  necessary  financial  and 
human  resources.  Both  countries  will  need  to  pay  attention  to  reinforcing  their 
administrative  and  judicial  capacity  in  order  to  adequately  implement  and  enforce  the 
required legislation. Vigorous steps will need to be taken in the fight against corruption 
and in the reforms of the justice system and the public administration in order to ensure 
the proper functioning of the rule of law.  

3.2.  Monitoring and safeguards 

In view of the shortcomings that still need to be addressed, the Commission will continue 
its  intensive  monitoring  of  the  countries’  preparations,  focusing  on  the  findings  of  this 
Report. Monitoring will be aimed at guiding Bulgaria and Romania in completing their 
preparations  for  membership,  and  at  keeping  the  Council  and  the  Parliament  duly 
informed of the progress made by both countries. It will also serve as a basis for deciding 
on  any  measures  that  may  be  required  to  prevent  or  to  remedy  possible  problems  that 
could affect the functioning of the EU if the countries were insufficiently prepared.  

The Commission will continue its various monitoring activities until accession. It intends 
to  make  full  use  of  all  available  instruments,  such  as  warning  letters,  peer  reviews, 
monitoring  missions  carried  out  by  the  Commission  services  and  the  structures  of  the 
association agreements.  

Immediately  after  the  adoption  of  this  Report,  the  Commission  will  send  substantiated 
warning letters at a political level to the Bulgarian and Romanian authorities, drawing 
their  attention  to  the  main  shortcomings  identified  and  inviting  them  to  undertake  the 
necessary remedial action. 

The Commission will then launch a series of peer reviews covering the most problematic 
issues  identified  in  this  Report.  These  reviews,  carried  out  by  Member  States’  and 
Commission  experts,  will  aim  to  assist  both  countries  and  assess  real  progress  on  the 
ground  in  the  various  areas  concerned.  The  Commission  intends  to  have  these  reviews 
completed before spring 2006. In March/April 2006 the Commission will then organise 
high level meetings with each country focusing on the outstanding issues.  

The results of these follow-up meetings and all information gathered until then will feed 
into a monitoring report which the Commission intends to present to the Council  and 
Parliament  in  April/May  2006.  On  the  basis  and  in  the  context  of  this  report,  the 
Commission  may  recommend  that  the  Council  postpone  the  accession  of  one  or  both 
countries until 1 January 2008, if the conditions for such a postponement set out in the 
Treaty of Accession are met. In accordance with the Treaty, the Council may decide to 

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postpone the accession of one or both countries by one year if there is a serious risk of 
any of those states being manifestly unprepared to meet the requirements of membership 
by January 2007 in a number of important areas or, in the case of Romania, if specific 
requirements in the areas of competition policy and justice and home affairs are not met.1 
The  Commission  expects  Bulgaria  and  Romania  to  take  all  necessary  corrective  action 
until then so as to avoid having to issue such a recommendation. 

In the event of a Commission recommendation to postpone accession, the Council would 
have  to  decide  on  postponing  the  accession  of  any  of  the  two  countries  until  1 January 
2008.  Immediately  thereafter,  the  Commission  would  propose  to  the  Council  the 
necessary  adjustments  to  the  Treaty  of  Accession,  in  particular  regarding  the 
institutional  and  budgetary  provisions.  The  budgetary  adjustments  would  have  to  fit 
within the process for deciding on the EU budget for 2007. 

Independently  of  whether  a  postponement  decision  has  been  taken  or  not,  in  autumn 
2006  the  Commission  will  present  a  second  series  of  comprehensive  monitoring 
reports  on  Bulgaria  and  Romania’s  preparedness  for  membership  to  the  Council  and 
Parliament.  For  accession  in  2007,  these  reports  will  serve  as  a  basis  to  decide  on  any 
possible remedial measure to be taken by the Commission in its role as guardian of the 
Treaties.  Such  measures  include  safeguards,  infringement  proceedings  or  financial 
management measures. The Commission will not hesitate to take them when required. 

Failure to implement parts of the acquis after accession would affect not only the citizens 
and companies of the country concerned, but also of other Member States. Therefore, the 
Commission  may,  in  certain  cases,  need  to  take  measures  to  prevent  or  remedy  such 
negative cross-border effects. The basis for such action is found in a number of specific 
provisions  of  the  Treaty  of  Accession.  These  include  three  safeguard  clauses  which 
allow measures to be taken by the Commission until three years after accession1:  

•  a  general  economic  safeguard  to  remedy  serious  and  persisting  difficulties  in  one  or 

other economic sector in present or new Member States;  

to  competition,  energy, 

•  an internal market safeguard to prevent or deal with serious breaches by Bulgaria or 
Romania of the functioning of the internal market. They relate to the four freedoms, 
telecommunication, 
but  also 
agriculture and consumer and health protection (e.g. food safety) insofar as they have 
cross-border effects. Safeguard measures may result in temporarily excluding the new 
Member  State  or  its  citizens  and  companies  from  the  benefits  of  membership  in 
specific  areas  in  order  to  protect  the  integrity  of  the  internal  market  and  prevent 
damage to others; 

transport,  environment, 

•  a justice and home affairs safeguard to deal with serious shortcomings in the field of 
cooperation in civil and criminal matters, in particular to temporarily suspend related 
rights and obligations under the EU acquis.  

1 

The  precise  details  of  the  postponement  clause  and  of  the  safeguard  clauses  can  be  found  in 
Articles 36-39 of the Protocol and Act of Accession, as published in OJ L 157, 21.6.2005. 

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In addition to these three safeguards, specific safeguards existing in the acquis (e.g. to 
prevent  the  sale  of  unsafe  food)  and  other  procedures  (notably  infringements  and 
decisions on competition matters) will become applicable as from accession in order to 
deal with shortcomings in Bulgaria and Romania.  

Shortcomings  may  also  automatically  incur  penalties,  such  as  when  the  Commission  is 
not able to disburse EU funds. The Commission, in its capacity to execute the budget, 
will not release funds from the EU budget if, for example, a new Member State does not 
offer  the  necessary  guarantees  on  proper  spending  of  EU  funds  as  required  under  the 
Common Agricultural Policy or under the Structural Funds.  

Although the safeguard or management measures which are taken must be proportional 
to the extent of the problem and must be designed to cause the least disruption, in most 
cases their inevitable effect will be temporarily to deny the new Member States and their 
citizens the full benefits of membership. It is therefore in the interest of all parties to do 
their  utmost  to  avoid  such  a  situation  by  tackling  the  remaining  gaps  quickly  and 
effectively. 

3.3. 

EU support measures 

The EU is providing a substantial financial assistance to both countries in order to help 
them  prepare  for  membership.  In  2006  approximately  EUR 1 155 million  will  be 
reserved for Romania and approximately EUR 545 million for Bulgaria. 

The  Commission  intends  to  support  both  countries  in  their  efforts  by  focusing  this 
assistance  on  measures  to  tackle  the  remaining  gaps.  Depending  on  the  nature  of  the 
problem,  EU  support  could  take  the  form  of  peer  assistance,  training  seminars,  advice 
missions,  twinning  (light)  projects  or  similar  instruments,  which  can  be  mobilised 
quickly  and  can  be  focused  on  well-targeted  issues.  Equally,  a  number  of  existing  EU 
programmes  (such  as  Customs  2007,  Fiscalis,  and  other  programmes)  can  be  used  to 
address gaps in both countries.  

Such  specific  support  measures  may  help  to  improve  or  accelerate  alignment  and 
implementation of the acquis. The Commission will actively pursue this task. Much will 
depend, however, on the capacity of both countries to absorb and make good use of the 
EU funds. Further efforts to improve the management and control capacity are needed in 
particular to ensure the move to Extended Decentralisation (EDIS) in 2006.  

4. 

CONCLUSIONS 

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

•  The Commission confirms its earlier assessment that Bulgaria and Romania meet the 
political criteria for membership. Nevertheless, further efforts are needed in particular 
to  strengthen  the  rule  of  law,  by  improving  public  administration  and  the  justice 
system  and  by  fighting  corruption  effectively.  As  regards  the  economic  criteria, 
Bulgaria and Romania fulfil the requirement of being a functioning market economy. 
Bulgaria’s continuation of the current pace of its reform path and Romania’s vigorous 

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implementation  of  its  structural  reform  programme  should  enable  them  to  withstand 
competitive pressure and market forces within the Union. 

•  Both  Bulgaria  and  Romania  have  continued  to  make  progress  in  adopting  and 
implementing  EU  legislation  and  have  reached  a  considerable  degree  of  alignment 
15 months  before  their  envisaged  accession  on  1  January  2007.  At  this  stage  the 
Commission  has  also  identified  a  number  of  areas  where  increased  efforts  are 
required. The authorities in both countries should vigorously pursue their preparations 
in  order  to  ensure  the  full  benefit  of  membership  for  their  citizens  and  economic 
operators.  They  need  in  particular  to  step  up  their  efforts  to  develop  a  sufficient 
administrative  and  judicial  capacity  to  implement  and  enforce  the  acquis.  The 
Commission will continue to monitor progress intensively up to accession. Particular 
attention should be paid to actual implementation and enforcement of the legislation. 

•  There are a limited number of specific gaps in both countries’ preparations which give 
cause for serious concern. Without immediate action Bulgaria and Romania will most 
likely not be able to fulfil their obligations in those specific areas by 1 January 2007. 
Bulgaria and Romania hold the key to their accession on time; even more than in the 
past years, they need to take firm and decisive steps to tackle these issues. 

•  The  main  remaining  problems  will  be  followed  up  in  warning  letters.  On-site  peer 
reviews and specific consultations will be held to ascertain the steps taken by Bulgaria 
and Romania; where needed, the Union will rapidly mobilise targeted assistance. The 
results  of  this  follow-up  will  feed  into  a  monitoring  report  which  the  Commission 
intends to present to the Council and Parliament in April/May 2006. At that moment, 
the Commission may recommend that the Council postpone the accession of Bulgaria 
or Romania until 1 January 2008 if there is a serious risk of any of those states being 
manifestly unprepared to meet the requirements of membership by January 2007 in a 
number of important areas. The Commission expects Bulgaria and Romania to take all 
necessary  corrective  actions  until  then  so  as  to  avoid  having  to  issue  such  a 
recommendation. 

5. 

ANNEX:  CONCLUSIONS  OF  THE  COMPREHENSIVE  MONITORING  REPORTS  ON 
BULGARIA AND ROMANIA 

Bulgaria 

Bulgaria, as in previous years, continues to fulfil the political criteria for membership. 
Overall,  it  has  reached  a  satisfactory  level  of  compliance  with  EU  requirements. 
Nevertheless,  further  action  is  needed  in  a  number  of  important  areas  which  were 
highlighted in the 2004 Report as requiring further efforts.  

As regards public administration reform, Bulgaria still needs to complete the legislative 
framework  guaranteeing  the  principles  of  legality,  accountability,  reliability  and 
predictability  in  the  workings  of  the  public  administration.  Also,  further  efforts  are 
needed to strengthen local and regional administration in the context of decentralisation. 
The White Paper on the Modernisation of the Administration adopted by the Government 
in April 2004 now needs to be put into practice.  

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Important  legislative  steps  have  been  taken  in  relation  to  the  judiciary.  However, 
progress  in  the  reform  of  the  pre-trial  phase  remains  limited  and  the  justice  system 
continues  to  suffer  from  a  lack  of  accountability.  The  procedures  for  administering 
justice remain cumbersome and slow.  

The  main  problem  in  combating  corruption  effectively  remains  the  weak  results  in  the 
investigation  and  prosecution  of  high-level  corruption  cases.  While  efforts  to  combat 
corruption have had a certain impact, notably in relation to petty corruption, generally the 
perception remains that corruption continues to be a cause for concern.  

In the area of human rights and the protection of minorities, more effort needs to be made 
to  combat  efficiently  the  trafficking  of  human  beings  and  to  improve  conditions  in  a 
number of state institutions for children and people with disabilities. Further progress is 
needed in the process of de-institutionalisation and in improving the management of the 
mental  health  care  system.  Sustained  efforts  are  required  to  realise  the  effective 
integration  of  the  Roma  minority.  The  Framework  Programme  for  Equal  Integration  of 
Roma into the Bulgarian Society should be implemented as planned. 

As regards the economic criteria for accession, Bulgaria continues to be  a functioning 
market economy. The continuation of the current pace of its reform path should enable 
Bulgaria to cope with competitive pressure and market forces within the Union. Bulgaria 
has  broadly  maintained  macroeconomic  stability,  even  if  external  deficits  have  further 
risen.  It  continued  implementing  its  structural  reform  programme,  albeit  not  equally 
vigorously in all fields.  

Progress has been made in most areas where improvements were suggested in last year’s 
report, but a number of challenges remain. After narrowing in 2004, the trade and current 
account  deficit  widened  considerably  again  in  the  first  half  of  2005.  Further  measures 
have been taken to curb bank credit growth, but the continuation of prudent fiscal policy 
and moderate wage increases remains critical to containing potential risks for the external 
balance  and  the  situation  needs  to  be  closely  monitored.  Further  reforms  are  needed  to 
improve the business environment, and in particular the functioning of the administrative 
and judicial system. The streamlining of business registration has started but remains to 
be  completed.  While  already  well  advanced,  the  momentum  in  completing  the 
privatisation  programme  should  be  maintained.  Little  progress  has  been  made  in 
improving labour market flexibility, which, together with a comprehensive reform of the 
education system, would be crucial for dealing with skills mismatches and improving the 
adaptability of the Bulgarian economy. 

Bulgaria has reached a considerable level of alignment with the acquis in most policy 
areas. Efforts to strengthen overall administrative capacity should continue with a view to 
properly implementing the adopted legislation. 

It  is  expected  to  be  in  a  position  to  implement  the  acquis  as  required  in  the  following 
areas  by  the  envisaged  date  of  accession:  horizontal  and  procedural  measures  and  new 
and  old  approach  sectoral  legislation  in  the  free  movement  of  goods  chapter;  the  free 
movement of workers, the coordination of social security systems and citizens’ rights as 
regards free movement of persons; capital movements and payment systems in the field 
of free movement of capital; company law, accounting and the Regulation replacing the 
Brussels Convention and the Rome Convention in the company law chapter; competition 

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policy. In relation to the agriculture chapter, by the envisaged date of accession Bulgaria 
is expected to be in a position to implement the acquis as in the areas of quality policy, 
organic  farming,  the  Farm  Accounting  Data  Network,  state  aid,  rural  development, 
zootechnics,  animal  nutrition  and  the  phytosanitary  sector  as  well  as  in  relation  to 
international fisheries agreements and state aid in the fisheries chapter. 

By  the  envisaged  date  of  accession  Bulgaria  is  also  expected  to  be  in  a  position  to 
implement  the  acquis  in  the  areas  of  trans-European  networks,  inland  waterways,  road 
transport and rail transport in the field of transport policy; VAT in the area of taxation; 
the chapters on economic and monetary union as well as statistics; with regard to equal 
treatment  of  women  and  men,  health  and  safety  at  work,  social  protection  and 
employment policy in the area of social policy and employment; with regard to security 
of  supply  measures,  energy  efficiency  and  renewable  energy  and  nuclear  energy  in  the 
area of energy; industrial strategy in the area of industrial policy; the chapters on small 
and medium-sized enterprises, science and research, education and training and culture 
and  audio-visual  policy;  territorial  organisation  in  the  area  of  regional  policy;  nature 
protection and air quality in the field of the environment; the areas of migration, the fight 
against terrorism, customs cooperation and human rights legal instruments in the justice 
and  home  affairs  chapter;  customs  union  legislation,  external  relations  and  common 
foreign  and  security  policy;  the  areas  of  public  internal  financial  control  and  external 
audit  in  the  field  of  financial  control;  and  with  regard  to  financial  and  budgetary 
provisions. 

Secondly, Bulgaria needs to make increased efforts in certain areas in order to complete 
its preparations for accession. 

This  includes  the  non-harmonised  area  and  public  procurement  in  the  chapter  of  free 
movement of goods; mutual recognition of professional qualifications in the field of free 
movement  of  persons;  the  right  of  establishment,  the  areas  of  banking,  investment 
services  and  securities  markets,  information  society  regulations  and  protection  of 
personal data in the chapter on freedom to provide services; money laundering in the area 
of  the  free  movement  of  capital;  most  common  market  organisations  and  the  external 
trade  mechanismsin  the  field  of  agriculture,  as  well  as  common  measures  in  the 
veterinary field; fleet management, inspection and control, structural actions and market 
policy in relation to fisheries policy. 

This also includes the fields of: air transport and maritime transport in transport policy; 
excise  duties,  direct  taxation,  administrative  cooperation  and  mutual  assistance  in  the 
field  of  taxation;  the  areas  of  labour  law,  social  dialogue,  public  health,  the  European 
Social  Fund  (except  the  operational  programme  for  strengthening  the  institutional 
capacity and the efficiency of public administration, for which a serious concern exists), 
anti-discrimination and social inclusion in the chapter on social policy and employment; 
competitiveness  and  the  internal  energy  market  in  the  area  of  energy;  privatisation  and 
restructuring  measures  in  the  area  of  industrial  policy,  and  in  particular  of  the  steel 
industry;  telecommunications  and  information  technologies;  the  legislative  framework 
and  the  areas  of  programming  and  monitoring  and  evaluation  in  the  field  of  regional 
policy; horizontal legislation, and the areas of water quality, industrial pollution and risk 
management,  chemicals  and  GMOs,  nuclear  safety  and  radiation  protection  and  waste 
management  with  regard  to  the  environment;  the  chapter  on  consumers  and  health 
protection;  visa  policy,  the  area  of  asylum,  judicial  cooperation  in  civil  and  criminal 

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matters, the fight against drugs and money laundering, and data protection in the field of 
justice and home affairs; administrative and operational capacities to apply the customs 
union rules; and the control over structural action expenditure and the protection of the 
EU financial interests in the financial control chapter. 

Thirdly, Bulgaria  must  take  immediate and decisive action to address issues of serious 
concern if it is to be ready by the envisaged date of accession. 

This  covers  the  protection  of  intellectual  and  industrial  property  rights  in  the  company 
law  field  and  motor  vehicle  insurance  in  the  services  chapter.  It  concerns  the  paying 
agency  and  the  integrated  administration  and  control  system  as  well  as  the  common 
market  organisation  on  milk,  transmissible  spongiforme  encephalopathies  (TSEs)  and 
animal  by-products  (in  particular  the  construction  of  a  second  rendering  plant  and  the 
introduction of a feed ban), the veterinary control system (identification and registration 
of animals, the establishment of border inspection posts) and animal diseases control, the 
trade in live animals and animal products, veterinary public health and animal welfare in 
the chapter on agriculture; institutional structures and financial management and control 
in  the  area  of  regional  policy,  including  in  relation  to  the  above-mentioned  operational 
programme under the European Social Fund. Finally, urgent action is required in the field 
of  justice  and  home  affairs,  in  particular  as  regards  preparations  for  applying  the 
Schengen  acquis  and  for  the  management  of  the  future  EU  external  border  as  well  as 
police  cooperation  and  the  fight  against  organised  crime  and  fraud  and  corruption,  if 
Bulgaria is to be ready for membership by the envisaged date. 

Romania 

Romania, as in previous years, continues to fulfil the political criteria for membership. 
Overall,  it  has  reached  a  satisfactory  level  of  compliance  with  EU  requirements.  In 
addition,  Romania  has  taken  significant  steps  to  address  some  of  the  issues  within  the 
political  criteria  which  were  highlighted  in  the  2004  report  as  requiring  further 
improvements,  such  as  the  reform  and  independence  of  the  judiciary,  ensuring  greater 
media  freedom,  new  legislation  on  property  restitution,  an  overall  improvement  of  the 
situation of minorities and child protection.  

However, further efforts are still needed to continue to reform the public administration, 
in particular the further professionalisation of the civil service and the adequate staffing 
and  funding  of  the  administrations  required  to  apply  and  enforce  EU  rules.  Reforms  in 
the  justice  system  are  broadly  on  track  but  should  be  effectively  implemented  in 
accordance with the timetable in the adopted strategy and action plan.  

The  fight  against  corruption  should  receive  high  priority.  Efforts  should  focus  on  the 
effective enforcement of anti-corruption legislation and on preventive measures, fighting 
high-level corruption and corruption within law enforcement bodies.  

In the area of human rights and the protection of minorities further efforts are needed to 
combat  ill-treatment  in  custody,  strengthen  the  administrative  capacity  of  the  national 
office  for  preventing  trafficking  in  human  beings,  continue  efforts  to  improve  the 
situation  of  disabled  and  mentally  ill  people,  raise  awareness  on  new  legislation  on 
children's rights, and ensure the effective integration of the Roma minority in particular 
as regards access to housing, social services and the labour market. 

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In  terms  of  the  economic  criteria,  Romania  continues  to  comply  with  the  criterion  of 
being  a  functioning  market  economy.  Vigorously  implementing  its  structural  reform 
programme should enable it to cope with competitive pressure and market forces within 
the Union. Romania has broadly maintained macroeconomic stability, even if the policy 
mix  turned  less  prudent  and  raised  concerns  about  the  sustainability  of  recent 
stabilisation  achievements.  It  continued  implementing  its  structural  reform  programme, 
although not vigorously in all fields.  

As  regards  the  areas  where  last  year’s  report  emphasised  the  need  for  further 
improvements,  some  progress  –  although  uneven  –  has  been  made  on  the  majority  of 
these issues. However, disinflation has slowed down, external imbalances have widened 
and  growth  was  increasingly  unbalanced  due  to  buoyant  household  consumption  and 
slowing  export  growth.  The  pro-cyclical  effect  of  the  tax  reform  and  slippage  in  the 
public sector wage policy are responsible for this and are not in line with last year’s call 
for  a  prudent  policy  mix.  Priority  should  be  given  to  re-establishing  a  prudent  fiscal 
policy,  notably  by  implementing  additional  measures  to  permanently  strengthen  the 
revenue  base,  and  by  a  cautious  public  sector  wage  policy  within  the  framework  of  a 
clear  medium-term  expenditure  strategy  aimed  at  strengthening  the  economy’s  growth 
potential and preparing for EU accession. Continuation of the privatisation programme, 
active dismantling of non-viable enterprises, further improvement in enforcing financial 
discipline  and  substantial  progress  in  the  functioning  of  the  judiciary  are  required  to 
establish  a  positive  business  environment  and  free  the  economy  from  mis-allocated 
resources.  

Romania has reached a considerable level of alignment with the acquis in most policy 
areas. Efforts to strengthen overall administrative capacity should continue with a view to 
properly implementing the adopted legislation. 

It  is  expected  to  be  in  a  position  to  implement  the  acquis  by  the  envisaged  date  of 
accession as required in the following areas: in the non-harmonised area as well as new 
approach sectoral legislation in the free movement of goods chapter; mutual recognition 
of  professional  qualifications,  free  movement  of  workers  and  coordination  of  social 
security  systems  as  regards  free  movement  of  persons;  the  banking  sector,  investment 
services  and  securities  market,  and  information-society  regulations  in  the  field  of 
freedom to provide services; capital movement and payments as well as payment systems 
as  regards  free  movement  of  capital;  company  law,  accounting,  auditing  and  the 
Regulation replacing the Brussels Convention and the Rome Convention in the company 
law chapter; the anti-trust area in the competition policy chapter; in a limited number of 
issues of the agriculture; in relation to international fisheries agreements and state aid in 
the fisheries chapter; in the transport sector; legislative alignment on VAT, excise duties 
and direct taxation in the field of taxation; the economic and monetary union; statistics; 
equal treatment of women and men, health and safety at work, employment policy, social 
protection  and  anti-discrimination  policy  in  the  field  of  social  policy  and  employment; 
energy;  industrial  strategy  in  the  field  of  industrial  policy;  small  and  medium-sized 
enterprises;  science  and  research;  education  and  training;  telecommunication  and 
information technologies; culture in the area of culture and audiovisual policy; territorial 
organisations and programming as regards regional policy and coordination of structural 
instruments; air quality, nature protection, chemicals and genetically modified organisms, 
noise, nuclear safety and radiation protection in the environment chapter; consumer and 
health  protection;  the  areas  of  migration,  asylum,  the  fight  against  terrorism,  customs 

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cooperation and human rights legal instruments in the field of justice and home affairs; 
customs  union  legislation;  external  relations;  common  foreign  and  security  policy  and 
financial and budgetary provisions. 

Secondly, Romania needs to make increased efforts in certain areas in order to complete 
its preparations for accession. 

This  includes  horizontal  and  procedural  measures  and  old  approach  sectoral  legislation 
on the free movement of goods; citizens’ rights in the field of free movement of persons; 
the  area  of  freedom  to  provide  services  as  regards  the  right  of  establishment  and  the 
freedom  to  provide  non-financial  services  and  (motor  vehicle)  insurance  and  personal 
data  protection;  anti-money  laundering  in  the  area  of  free  movement  of  capital; 
competition  policy  as  regards  in  particular  the  enforcement  of  state  aid  rules.  In  the 
agriculture  area,  it  concerns  quality  policy,  external  trade  mechanisms  and  Common 
Market  Organisations;  animal  welfare,  the  trade  in  live  animals  and  animal  products, 
zootechnics and animal nutrition; resource and fleet management, inspection and control, 
structural actions and market policy in relation to fisheries policy. 

This also includes the fields of labour law, social dialogue, public health, the European 
Social  Fund  (though  serious  concerns  exists  in  relation  to  the  institutional  structures 
needed  for  implementation  –  see  below  under  regional  policy  and  the  coordination  of 
structural  instruments),  and  social  inclusion  as  regards  social  policy  and  employment; 
privatisation  and  restructuring  in  industrial  policy;  completion  of  alignment  of  the 
audiovisual  legislation  in  the  field  of  culture  and  audio-visual  policy;  the  legislative 
framework, and monitoring and evaluation as regards regional policy and co-ordination 
of  structural  instruments;  horizontal  legislation,  waste  management,  water  quality  in 
environment;  visa  policy,  data  protection,  police  co-operation  and  the  fight  against 
organised  crime,  judicial  cooperation  in  civil  and  criminal  matters  as  well  as  the  fight 
against  drugs  and  money  laundering  in  the  field  of  justice  and  home  affairs; 
administrative and operational capacities to apply the customs union rules; and financial 
control. 

Thirdly, Romania must take immediate and decisive action to address issues of serious 
concern if it is to be ready by the envisaged date of accession. 

This  covers  the  field  of  public  procurement  in  free  movement  of  goods  as  well  as  the 
protection  of  intellectual  and  industrial  property  rights  in  company  law.  A  significant 
number  of  issues  still  remain  to  be  addressed  in  the  field  of  agriculture,  in  particular 
regarding  Romania’s  preparations  to  set  up  its  paying  agencies  and  implement  the 
integrated  administration  and  control  system.  Furthermore,  this  concerns  in  the  area  of 
veterinary issues, measures relating to transmissible spongiform encephalopathies (TSEs) 
and  animal  by-products  (in  particular  the  collection  system  of  cadavers,  the  absence  of 
rendering plants, the introduction of the feed ban) but also the veterinary control system 
in  the  internal  market  (identification  and  registration  of  animals,  the  establishment  of 
border  inspection  posts),  animal  disease  control  measures  and  veterinary  public  health. 
Other  issues  of  serious  concern  are  the  administrative  capacity  in  the  taxation  area, 
notably  the  slow  pace  of  achieving  IT  system  interoperability;  the  urgent  need  to 
strengthen institutional structures and financial management and control mechanisms to 
deal with regional policy and coordination of structural instruments as well as industrial 
pollution and overall administrative capacity in the field of environment. Finally, urgent 

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   EN 

 
action  is  required  in  the  field  of  justice  and  home  affairs,  in  particular  as  regards 
preparations for applying the Schengen acquis and for the management of the future EU 
external  border,  as  well  as  the  fight  against  fraud  and  corruption,  if  Romania  is  to  be 
ready for membership by the envisaged date. 

EN 

18 

   EN