Proposal for a Council Decision on the Principles, Priorities and Conditions contained in the Accession Partnership with Croatia {SEC(2005) 1424}
Date: 2005-11-09
Institutions: European Commission
Subjects: Croatia, accession criteria, accession to the European Union, association agreement (EU), cooperation agreement, economic policy, economic stabilisation, political situation, rule of law

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.11.2005 
COM(2005) 556 final 

Proposal for a 

COUNCIL DECISION 

On the Principles, Priorities and Conditions contained in the Accession Partnership with 
Croatia 

(presented by the Commission) 

{SEC(2005) 1424} 

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EXPLANATORY MEMORANDUM 

In Thessaloniki, the European Council of 19 and 20 June 2003 reiterated its determination to 
fully  and  effectively  support  the  European  perspective  of  the  Western  Balkan  countries.  It 
endorsed  the  Council’s  Conclusions  of  16  June  2003  on  the  Western  Balkan  countries 
including  the  annex  “The  Thessaloniki  Agenda  for  the  Western  Balkans:  moving  towards 
European  integration”,  which  introduced  the  Partnerships  as  a  means  to  materialise  the 
European perspective of the Western Balkan countries. 

In 2004, the Commission presented a first European Partnership with Croatia. It was adopted 
by the Council on 13 September 2004. The Commission considers it appropriate to update this 
first Partnership on the basis of its findings in the 2005 Progress Report on Croatia. 

On 3 October 2005, the Member States started negotiations with Croatia on its accession to 
the European Union. The Commission therefore deemed it appropriate to adopt an Accession 
Partnership;  which  updates  the  previous  Partnership.  The  Commission  has  proposed  to 
modify  accordingly  Council  Regulation  (EC)  No  533/2004,  the  legal  basis  of  the  present 
Decision.  In  anticipation  of  the  adoption  of  that  proposal,  the  Commission  has  in  parallel 
drafted the text of the present proposal to the new situation. 

This  renewed  Partnership  lists  short-  and  medium-term  priorities  for  the  country’s 
preparations  for  further  integration  with  the  European  Union.  The  country  is  expected  to 
respond  to  the  Accession  Partnership  by  preparing  a  plan  with  a  timetable  and  specific 
measures  in  terms  of  how  it  intends  to  address  the  Accession  Partnership’s  priorities.  The 
progress  in  implementing  the  priorities  will  be  monitored  regularly  by  the  Commission, 
through the Progress Reports and through other structures set up under the Stabilisation and 
Association Process. 

The  Accession  Partnership  priorities  should  form  the  basis  for  programming  the  financial 
assistance  of  the  Community,  which  will  continue  to  be  provided  under  relevant  financial 
instruments,  in  particular  Council  Regulation  3906/89  of  18  December  1989  (PHARE), 
Council Regulation (EC) No 1267/1999 of 21 June 1999 (ISPA) and Council Regulation (EC) 
1268/1999  of  21  June  1999  (SAPARD),  as  amended  by  Council  Regulation  (EC)  No 
2257/2004 of 20 December 2004, allowing Croatia to benefit from pre-accession instruments.  

The  proposed  Council  Decision  has  no  financial  implications.  In  view  of  the  above,  the 
Commission invites the Council to adopt the attached draft Council decision. 

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Proposal for a 

COUNCIL DECISION 

On the Principles, Priorities and Conditions contained in the Accession Partnership with 
Croatia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  

Having regard to Council Regulation (EC) No 533/2004 on the establishment of Partnerships 
in the framework of the Stabilisation and Association Process1, and in particular Article 2 and 
the proposed new Article 1a thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

1 
2 

The  European  Council  endorsed  the  introduction  of  the  Partnerships  as  a  means  to 
materialise  the  European  perspective  of  the  Western  Balkan  countries  within  the 
framework of the Stabilisation and Association Process. 

Regulation (EC) No 533/2004 sets out that the Council is to decide on the principles, 
priorities and conditions to be contained in the Accession Partnerships, as well as any 
subsequent adjustments. 

The Council adopted on 13 September 2004 a European Partnership with Croatia2. 

On  3  October  2005,  the  Member  States  started  negotiations  with  Croatia  on  its 
accession to the European Union. The advancement of the negotiations will be guided 
by  Croatia’s  progress  in  preparing  for  accession,  which  will  be  measured,  inter  alia, 
against the implementation of the Partnership, as regularly revised. 

It is therefore appropriate to adopt an Accession Partnership which updates the current 
Partnership in order to identify renewed priorities for further work, on the basis of the 
findings of 2005 Progress Report on Croatia’s preparations for further integration with 
the European Union. 

Regulation  (EC)  No  533/2004  indicated  that  the  follow  up  of  the  Accession 
Partnerships  will  be  ensured  within  the  framework  of  the  mechanisms  established 
under the Stabilisation and Association Process. 

OJ L 86, 24.3.2004, p. 1. Regulation as amended by Regulation (EC) No .... of ... (OJ ..., p. ). 
Council  Decision  2004/648/EC  of  13  September  2004  on  the  principles,  priorities  and  conditions 
contained in the European Partnership with Croatia - OJ L 297, 22.9.2004, p. 19. 

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(7) 

In  order  to  prepare  for  further  integration  with  the  European  Union,  Croatia  is 
expected  to  develop  a  plan  with  a  timetable  and  specific  measures  to  address  the 
priorities of this Accession Partnership. 

HAS DECIDED AS FOLLOWS: 

Article 1 

In  accordance  with  Article  [1a]  of  Council  Regulation  (EC)  No  533/2004,  the  principles, 
priorities  and  conditions  in  the  Accession  Partnership  with  Croatia  are  set  out  in  the  annex 
hereto which forms an integral part of this Decision. 

Article 2 

The implementation of the Accession Partnership shall be examined through the mechanisms 
established  under  the  Stabilisation  and  Association  Process,  notably  the  annual  Progress 
Reports presented by the Commission. 

Article 3 

This  Decision  shall  take  effect  on  the  third  day  following  of  its  publication  in  the  Official 
Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

CROATIA: ACCESSION PARTNERSHIP 2005 

1. 

INTRODUCTION 

The  European  Council  endorsed  the  introduction  of  the  Partnerships  as  a  means  to  materialise  the 
European perspective of the Western Balkan countries within the framework of the Stabilisation and 
Association Process.  

A  European  Partnership  with  Croatia  was  adopted  by  the  Council  on  13  September  2004.  On  3 
October 2005, the Member States started negotiations with Croatia on its accession to the European 
Union. It is appropriate to adopt an Accession Partnership which updates the previous Partnership on 
the basis of the findings of the 2005 Commission’s Progress Report on Croatia. This new Accession 
Partnership identifies new priorities for action. The new priorities are adapted to the country’s specific 
needs  and  stage  of  preparation  and  will  be  updated  as  necessary.  The  Accession  Partnership  also 
provides guidance for financial assistance to the country.  

Croatia  is  expected  to  develop  a  plan  including  a  timetable  and  specific  measures  to  address  the 
Accession Partnership priorities.  

2. 

PRINCIPLES 

The  Stabilisation  and  Association  Process  remains  the  framework  for  the  European  course  of  the 
Western Balkan countries, all the way to their future accession. 

The main priorities identified for Croatia relate to its capacity to progress in preparing for accession, 
and in particular to its capacity to meet the criteria defined by the Copenhagen European Council of 
1993  and  the  conditions  set  for  the  Stabilisation  and  Association  Process,  notably  the  conditions 
defined by the Council in its Conclusions of 29 April 1997 and 21 and 22 June 1999, the content of the 
final declaration of the Zagreb Summit of 24 November 2000 and the Thessaloniki Agenda, and the 
requirements of the negotiating framework adopted by the Council on 3 October 2005. 

3. 

PRIORITIES 

The priorities listed in this Accession Partnership have been selected on the basis that it is realistic to 
expect that Croatia can complete them or take them substantially forward over the next few years. A 
distinction is made between short-term priorities, which are expected to be accomplished within one to 
two  years,  and  medium-term  priorities,  which  are  expected  to  be  accomplished  within  three  to  four 
years. The priorities concern both legislation and the implementation thereof. Taking into account the 
substantial  costs  required  for  the  implementation  and  enforcement  of  the  acquis  as  well  as  the 
complexity  of  the  EU  requirements  in  certain  areas,  this  partnership  does  not  include  all  important 
tasks at this stage. Future partnerships will include further priorities in line with progress made by the 
country. 

Among  the  short  term  priorities,  the  key  priorities  have  been  identified  and  grouped  together  at  the 
beginning  of  section  3.1.  The  order  of  these  key  priorities  does  not  imply  a  ranking  in  their 
importance. 

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3.1. 

Short-term priorities 

Key Priorities 

–  Implement the strategy and action plan for judicial reform in consultation with interested bodies, 

including the adoption of necessary new legislation. 

–  Adopt  and  begin  implementation  of  a  national  strategy  for  preventing  and  combating  corruption 
and provide for the required coordination among the relevant government departments and bodies 
involved in its implementation, including making the Office for the Suppression of Corruption and 
Organised Crime fully operational.  

–  Accelerate implementation of the Constitutional Law on National Minorities. In particular, urgently 
take steps to ensure proportional representation of minorities in local and regional self government 
units, in the state administration and judicial bodies, and in bodies of the public administration.  

–  Complete  the  process  of  refugee  return,  including  all  cases  of  repossession,  reconstruction  and 
housing care for former occupancy/tenancy rights holder, and further enhance regional cooperation 
for accelerating the process of refugee return and local integration. 

–  Maintain full cooperation with the International Criminal Tribunal for the former Yugoslavia. 

–  Work  to  find  definitive  solutions  to  pending  bilateral  issues,  in  particular  border  issues  with 

Slovenia, Serbia and Montenegro and Bosnia and Herzegovina.  

–  Ensure proper implementation of all commitments undertaken in the Stabilisation and Association 
Agreement  in  areas  such  as  competition  policy,  in  particular  the  need  to  adopt  and  implement  a 
restructuring  plan  for  the  steel  sector,  and  the  acquisition  of  real  estate.  Conclude  ongoing  and 
forthcoming  negotiations  on  trade  matters  linked  to  the  SAA  (such  as  on  sugar,  the  enlargement 
protocol and further trade concessions on agricultural and fisheries products). 

Political Criteria 

DEMOCRACY AND THE RULE OF LAW 

Public administration 

–  Fully implement public administration reform measures on recruitment and promotion and improve 
human  resource  management  in  all  bodies  of  the  public  administration  in  order  to  ensure 
accountability,  efficiency,  openness, 
level  of 
professionalism of the public service.  

transparency,  depoliticisation  and  a  high 

–  Ensure effective follow-up of identified shortcomings with respect to civilian control of all security 

services. 

Judicial system 

–  Make headway in reducing the case backlog in courts.  

–  Make  progress  in  rationalising  the  organisation  of  courts  including  the  development  of  modern 

information technology systems. 

–  Establish  an  open,  fair  and  transparent  system  of  recruitment,  evaluation  and  promotion  and 
enhance  professionalism  in  the  judiciary  by  ensuring  adequate  state  funding  for  high  quality 
training for judges, prosecutors and administrative staff.  

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–  Take measures to ensure proper and full execution of court rulings. 

–  Ensure access to justice and legal aid and make available the corresponding budgetary resources; 

enhance training in EU legislation. 

Anti corruption policy 

–  Continue  to  develop  codes  of  conduct/ethics  for  officials  and  elected  representatives  as  well  as 
action plans to prevent corruption in the relevant law enforcement agencies (border police, police, 
customs, judiciary). 

–  Take  steps  to  ensure  that  the  legal  framework  for  tackling  corruption  is  aligned  and  uniformly 
implemented and enforced and ensure greater efforts to proactively prevent, detect and effectively 
prosecute corruption, especially high-level corruption. 

–  Take concrete actions to raise awareness of corruption as a serious criminal offence. 

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

–  Promote respect for and protection of minorities in accordance with the European Convention on 
Human Rights and the principles laid down in the Council of Europe's Framework Convention for 
the Protection of National Minorities and in line with best practice in EU Member States. 

–  Ensure all cases of ethnically motivated crimes are properly investigated and prosecuted. 

–  Continue to implement the strategy and action plan for the protection and integration of Roma and 

ensure availability of the necessary means.  

–  Develop and begin to implement a comprehensive anti-discrimination strategy. 

–  Review  audio-visual  media  legislation  in  line  with  the  recommendations  formulated  in  February 
2004 by the joint expertise mission of the Council of Europe, the Commission and the OSCE. In 
particular,  review  the  Electronic  Media  Act  in  order  to  establish  a  transparent,  predictable  and 
effective  regulatory  framework  and  ensure  political  independence  of  the  Council  for  Electronic 
Media; ensure that Croatian Radio and Television and its Programme Council work independently 
and remain stable while the Croatian Radio and Television Act is reviewed. Take further steps to 
effectively decriminalise libel. 

REGIONAL ISSUES AND INTERNATIONAL OBLIGATIONS 

–  Substantially improve the prosecution of war crimes trials, in particular by ensuring an end to the 

ethnic bias against Serbs. 

–  As  regards  refugee  return,  complete  without  delay  the  processing  of  those  requests  for  housing 
reconstruction  already  submitted;  reconstruct  all  houses  for  which  there  is  a  positive  decision  by 
end  2005  and  reconstruct  by  end  2006  all  other  houses  for  which  a  positive  decision  will  be 
forthcoming. Complete the repossession of houses without any further delay.  

–  Urgently begin and complete implementation of the Housing Care programme for those refugees 
who  lost  tenancy/occupancy  rights  outside  the  areas  of  special  State  concern  and  speed-up 
implementation of the Housing Care programme for refugees returning to the areas of special State 
concern. Ensure an adequate publicity/information campaign.  

–  Secure adequate coordination and cooperation between all relevant authorities at central and local 

level on refugee return matters.  

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–  Create social and economic conditions to improve the climate for returnees’ reintegration and the 
acceptance  of  returnees  by  receiving  communities,  including  through  regional  development 
programmes  in  affected  areas.  Reopen  the  possibility  for  convalidation  claims  and  review  all 
applications made since expiry of previous deadline.  

–  Fully  implement  agreements  with  neighbouring  countries,  notably  on  trade,  the  fight  against 
organised  crime,  border  management  and  readmission,  cross-border  cooperation,  and  judicial 
cooperation and conclude such agreements where they are still outstanding.  

Economic criteria 

–  Implement  prudent,  stability-oriented  macroeconomic  policies,  including  the  development  of 

market-based monetary instruments to enhance the effectiveness of monetary policy. 

–  Strengthen fiscal consolidation on the basis of permanent structural measures, in particular in the 
area of subsidies and social spending, and resolve the issue of repayment of so-called “old pension 
debt” in a manner which does not endanger fiscal consolidation. Start implementing further steps 
towards  a  comprehensive  reform  of  the  health  sector  with  a  view  to  improving  its  financial 
situation. 

–  Continue structural reforms in public finance, particularly in the area of expenditure management. 

Establish a transparent and efficient debt management capacity. 

–  Accelerate the privatisation of companies in the portfolio of the Privatisation Fund. Speed up the 
restructuring  and  privatisation  or  liquidation  of  large  state-owned  enterprises,  in  particular  in  the 
agriculture,  steel  and  shipbuilding  industry.  Implement  further  steps  in  the  restructuring  and/or 
privatisation of public utilities (telecoms, energy, oil, etc.).  

–  Further  improve  the  business  environment  by  simplifying  the  rules  for  market  entry  and  exit.  In 
particular,  speed  up  registration  procedures  and  improve  the  implementation  of  bankruptcy  rules 
and improve conditions for the development of private enterprises and foreign direct investment. 

–  Accelerate land reform, in particular the registration and privatisation of agricultural land, through 
the  establishment  of  a  modern  and  efficient  cadastre  and  land  registry  in  order  to  eliminate  the 
current obstacles to the development of land and housing markets. 

–  Develop macroeconomic statistics. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

Free movement of goods 

–  Complete  the  restructuring  of  the  existing  legislative  and  institutional  framework  to  ensure 
separation of the regulatory, accreditation, standardisation and product certification functions and 
to  establish  acquis-compliant  market  surveillance  structures.  Speed  up  the  adoption  of  European 
standards. Continue work on the transposition of the old and new approach directives. 

–  Abolish  remaining  measures  having  an  equivalent  effect  to  quantitative  restrictions  on  imports 

from the EU. 

Right of establishment and freedom to provide services 

–  Start alignment with the acquis on the mutual recognition of professional qualifications, including 

the establishment of the necessary administrative capacity. 

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–  Start screening of national legislation to identify restrictions on the right of establishment and the 

freedom to provide services.  

–  Strengthen  the  capacity  of  the  national  regulatory  authority  in  the  field  of  postal  services  and 

ensure its independence. 

Free movement of capital 

–  Improve anti-money laundering legislation. Strengthen the administrative capacity of the financial 
intelligence  unit  and  improve  its  cooperation  with  other  institutions  involved  in  the  fight  against 
money laundering.  

–  Streamline procedures for authorising the purchase by EU nationals of real estate and substantially 

reduce the large backlog of applications. 

Public procurement 

–  Complete  the  alignment  of  Croatia’s  procurement  legislation  and  implementing  regulations, 

including on the areas of public contracts, concessions and review procedures. 

–  Strengthen the administrative capacity of the Public Procurement Office to carry out the functions 

it is assigned by the Public Procurement Law. 

Intellectual property law 

–  Improve  enforcement  of  intellectual,  industrial  and  commercial  property  rights  notably  by 
strengthening administrative capacity, including in law enforcement agencies and the judiciary. 

Competition 

–  Ensure further alignment of primary and secondary legislation so as to allow effective anti-trust and 
State aid control with binding decisions applicable to all economic sectors and, as regards State aid, 
for both aid schemes and individual aid measures. 

–  Strengthen the administrative capacity and the independence of the Competition Agency, both in 
the  fields  of  State  aid  and  anti-trust.  Ensure  the  development  and  training  of  the  judiciary  in 
competition matters. 

–  Strengthen  the  anti-trust  enforcement  record,  in  particular  through  a  better  focus  on  preventing 
serious distortions of competition, and the introduction of a deterrent fining regime. Strengthen the 
State aid enforcement record, in particular by ensuring respect of notification obligations and a pro-
active assessment of all aid measures. 

–  Ensure that existing aid schemes and all fiscal legislation are aligned with the State aid acquis. 

–  Adopt  and  start  implementing  viable  restructuring  programmes  in  the  steel  and  shipbuilding 

sectors, in line with EU requirements. 

–  Ensure transparency of State aid by establishing a comprehensive inventory and reporting of all aid 

measures in force at all administrative levels and raise awareness of competition principles. 

Financial services 

–  Strengthen  the  regulatory  and  administrative  framework  for  the  supervision  of  financial  services 
and in particular prepare for the transition towards the planned integrated supervisory authority for 
non-bank financial services. 

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–  Prepare  the  introduction  of  the  new  capital  requirements  framework  for  credit  institutions  and 

investment firms. 

Information society and media 

–  Further  strengthen 

the  capacity  of 

the  national  regulatory  authority 

in 

the  field  of 

telecommunications and ensure its independence. 

Agriculture and rural development 

–  Ensure a fully-operational SAPARD/IPARD agency. 

–  Accelerate work to set up of a proper land parcel identification system and a cattle identification 

and registration system.  

–  Reinforce  the  collection  and  processing  of  agricultural  statistics  in  line  with  EU  standards  and 

methodology. 

–  Develop  a  rural  development  strategy  and  policy  instruments  for  the  design,  implementation, 

management, monitoring, control and evaluation of rural development programmes. 

Food safety, veterinary and phytosanitary policy 

–  Continue  alignment  in  the  veterinary  and  phytosanitary  sector,  upgrade  inspection  arrangements, 

modernise agro-food establishments in order to meet EU hygiene requirements. 

–  Develop  a  comprehensive  strategy  in  the  fields  of  food  safety  and  veterinary  and  phytosanitary 
policy. Strengthen the necessary administrative structures and improve coordination between them 
to ensure a comprehensive approach to the enhancement of food safety throughout the entire food 
chain. 

Fisheries 

–  Strengthen administrative and, in particular, inspection structures for fisheries policy. 

–  Start establishing a computerised fishing vessel register. 

–  With regard to the protected ecological and fishing zone, unilaterally declared by Croatia, continue 

the implementation of the trilateral agreement reached in June 2004. 

Transport policy 

–  Continue  implementation  of  EU  standards  in  the  field  of  social  and  technical  legislation  in  road 

transport and of safety standards in maritime transport.  

–  Strengthen administrative capacity in the railway sector.  

–  Ensure  the  establishment  of  an  independent  body  for  accident  investigation  and  strengthen  the 

national regulatory authorities in the aviation sector. 

–  Conclude a European Common Aviation Area (ECAA) Agreement with a Protocol on transitional 

measures for implementation of EU aviation legislation.  

Energy 

–  Continue implementation of EU acquis on gas and electricity.  

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–  Ensure the operational capacity and independent functioning of the national regulatory authority. 

–  Start  implementing  the  commitments  undertaken  in  the  framework  of  the  Energy  Community 

Treaty. 

–  Strengthen  administrative  capacity  and  improve  alignment  with  the  acquis  on  energy  efficiency, 

renewable energy sources and nuclear energy.  

Taxation 

–  Accelerate alignment of tax legislation with the acquis and ensure its effective enforcement, with 
particular attention to including free zones in the territorial application of the VAT-regime and to 
abolishing the existing VAT-zero rates. 

–  Start alignment with the acquis in the field of direct taxation, including provisions on exchange of 
information  with  Member  States,  to  facilitate  enforcement  of  anti-avoidance  and  anti-evasion 
measures. 

–  Commit  to  the  principles  of  the  Code  of  Conduct  for  business  taxation  and  ensure  that  new  tax 

measures are in conformity with these principles. 

–  Significantly strengthen the capacity of the tax and customs administrations, particularly regarding 
collection and control functions; continue the work on a functioning and adequately staffed excise 
duty service; simplify procedures to effectively prosecute tax fraud. 

–  Continue developing the necessary IT systems to allow the exchange of electronic data with the EU 

and its Member States. 

Statistics 

–  Strengthen  the  administrative  capacity  of  the  Croatian  Bureau  of  Statistics,  reform  its  regional 

offices and improve coordination with other producers of official statistics.  

–  Develop business and social statistics. 

Social policy and employment  

–  Continue alignment with the acquis in the areas of labour law, health and safety, gender equality 

and anti-discrimination. 

–  Strengthen related administrative and enforcement structures and inter-ministerial coordination. 

Enterprise and industrial policy 

–  Further  simplify  and  accelerate  company  registration  procedures;  introduce  on-line  access  to 

selected government facilities for SMEs; further develop regulatory impact assessments. 

–  Continue the implementation of the European Charter for Small Enterprises. 

Regional policy and coordination of structural instruments 

–  Develop a comprehensive and coherent strategy in the field of regional development.  

–  Select and build up the capacity of key managing authorities and bodies for the implementation of 

structural instruments.  

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Justice, freedom and security  

–  Strengthen  border  management,  in  particular  by  reinforcing  the  surveillance  of  the  sea  borders; 
implement the integrated border management strategy; increase investments in technical equipment 
and infrastructure; recruit additional staff and provide adequate training infrastructure.  

–  Enhance  equipment  to  detect  forged  and  falsified  documents  and  provide  training  of  the  staff  in 

diplomatic missions and consular offices. 

–  Further align the legislation on asylum to the acquis. Set up a permanent national reception centre 

for asylum seekers.  

–  Improve coordination between law enforcement bodies and the judiciary, particularly in connection 
with economic crime, organised crime, fraud, money laundering and corruption; reinforce the fight 
against  drug  trafficking  and  strengthen  drug  prevention  and  drug  demand  reduction.  Provide  the 
necessary specialised training to law enforcement agencies. 

–  Increase  international  cooperation  on  terrorism  and  implement  in  full  the  relevant  international 
conventions;  improve  cooperation  and  the  exchange  of  information  between  the  police  and 
intelligence  services  within  the  State  and  with  other  States;  reinforce  the  prevention  of  the 
financing and preparation of acts of terrorism. 

Environment 

–  Continue  to  develop  horizontal  legislation,  including  on  environmental  impact  assessment  and 

public participation. 

–  Clearly  define  responsibilities  and  strengthen  the  administrative  and  operational  capacity  at 

national and regional level to ensure planning, including preparation of financial strategies. 

–  Continue to strengthen the capacity of national and regional inspection services and enable them to 

effectively enforce environmental legislation. 

–  Urgently adopt and start implementing a national waste management plan. 

Customs union 

–  Continue  strengthening  the  administrative  and  operational  capacity  of  customs  services,  in 
particular  for  the  control  of  preferential  rules  of  origin,  and  accelerate  alignment  with  the  EU 
acquis. Make the Customs Training Centre fully operational. 

–  Continue developing the necessary IT systems to allow the exchange of electronic data with the EU 

and its Member States. 

–  Adopt and implement a code of ethics for the customs services. 

External relations 

–  Continue  the  policy  of  trade  liberalisation  with  the  implementation  of  the  Stabilisation  and 
Association Agreement, WTO-commitments and bilateral FTAs. Work towards the future regional 
FTA in South-East Europe. 

–  Ensure that trade defence measures comply with its SAA and WTO obligations. 

–  Complete  negotiations  and  implement  the  protocol  introducing  a  tariff  quota  on  sugar  into  the 

SAA. 

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Financial control 

–  Adopt  a  coherent  regulatory  framework  for  Public  Internal  Financial  Control  on  the  basis  of  the 

strategy paper.  

–  Continue  establishing  and  reinforcing  public  internal  control  functions  through  the  provision  of 

adequate staff, training and equipment. 

–  Establish  effective  procedures  for  the  detection,  treatment,  follow-up  and  communication  to  the 
Commission of the irregularities and cases of suspected fraud affecting the Communities' financial 
interests  and  establish  the  administrative  structures  necessary  for  the  effective  and  equivalent 
protection of those interests and for the cooperation with the European Antifraud Office. 

3.2.  Medium –Term Priorities 

Political Criteria 

DEMOCRACY AND THE RULE OF LAW 

Public administration 

–  Continue the process of institution building directly relevant to the acquis and introduce reforms to 

improve the effectiveness of the public administration generally.  

Judicial system 

–  Continue  implementation  of  judiciary  reform  and  take  measures  to  reduce  further  the  backlog  of 

cases in all courts. 

–  Continue to rationalise the organisation of courts including the development of modern information 

technology systems.  

–  Ensure the regular and effective enforcement of court decisions.  

Anti-corruption policy 

–  Foster  further  progress  on  the  fight  against  corruption  and  implement  related  legislation.  In 
particular,  establish  specialist  units  for  combating  corruption  within  the  appropriate  services  and 
provide them with adequate training and resources.  

–  Ensure  that  the  standards  set  by  international  instruments  will  be  met,  by  putting  in  place  the 

appropriate legislative and administrative measures.  

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

–  Ensure  full  implementation  of  the  Constitutional  Law  on  National  Minorities,  particularly  as 

regards proportional representation of minorities.  

–  Continue implementation of a comprehensive anti-discrimination strategy. 

–  Continue improving the situation of the Roma through strengthened implementation of the relevant 
strategy, including the provision of the necessary financial support at national and local levels, anti-
discrimination  measures  aimed  at  fostering  employment  opportunities,  increasing  access  to 
education and improving housing conditions. 

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–  Continue  to  improve  social  and  economic  conditions  to  improve  the  climate  for  returnees’ 

reintegration and the acceptance of returnees by receiving communities. 

REGIONAL ISSUES AND INTERNATIONAL OBLIGATIONS 

–  Ensure  smooth  implementation  of  definitive  agreements  on  currently  pending  bilateral  issues,  in 

particular border issues.  

–  Continue to implement existing bilateral agreements. 

Economic Criteria 

–  Implement a sustainable medium-term fiscal framework through a continuous reduction of overall 
public spending, general government deficits and debt as a share of GDP. Prioritise public spending 
to free resources for acquis-related expenditure. Implement a comprehensive reform of the health 
care and pension systems. Continue to reduce subsidies to large loss-making enterprises.  

–  Complete  the  sale  of  government  minority  and  majority  shares  in  companies  held  under  the 

Privatisation Fund.  

–  Further  improve  conditions  for  the  creation  and  development  of  private  enterprises  and  foreign 

direct investment. 

–  Make substantial progress in strengthening the financial discipline in large enterprises, in particular 

in the steel, shipbuilding, and railway sectors. 

–  Complete  land  reform  with  a  particular  emphasis  on  the  registration  and  privatisation  of 

agricultural land. 

–  Continue labour market and education reform with a view to increasing labour force participation 

and employment rates. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

Free movement of goods 

–  Make substantial progress in the transposition of old and new approach directives and in fulfilling 
requirements for membership of the European standardisation bodies CEN, CENELEC and ETSI. 

Freedom of movement of workers 

–  Abolish any discriminatory measures towards EU migrant workers and EU citizens. 

–  Reinforce administrative structures for coordination of social security schemes. 

Right of establishment and freedom to provide services 

–  Abolish  the  remaining  barriers  to  establishment  and  provision  of  cross-border  services  facing 

natural or legal persons from the EU.  

–  Make  substantial  progress  in  the  alignment  with  the  EU  acquis  on  mutual  recognition  of 
professional  qualifications,  including  training  provisions,  and  further  develop  the  required 
administrative structures. 

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Free movement of capital 

–  Make substantial progress in the removal of remaining restrictions on capital movements. 

–  Complete the establishment of an effective anti-money laundering regime, in partiular by ensuring 
that agencies are fully operational, adequately resourced and well coordinated with domestic and 
international counterparts. 

Public Procurement  

–  Implement a public procurement regime with all relevant administrative structures and operational 
tools, and make substantial progress in the work towards complete alignment with the EU acquis, 
ensuring  that  public  procurement  rules  are  effectively  implemented  by  all  contracting  authorities 
and entities at all levels. Promote the use of electronic means in procurement procedures. 

Intellectual property law 

–  Complete  alignment  in  the  field  of  intellectual  and  industrial  property  rights  and  strengthen 

enforcement in the fight against piracy and counterfeiting. 

–  Continue strengthening the enforcement of IPR and reducing levels of piracy and counterfeiting. 

Competition 

–  Further reinforce the anti-trust and State aid authority and build up a credible enforcement record. 

Substantially improve transparency in the field of State aid.  

–  Develop training on competition law and policy at all levels of the administration and the judiciary. 

Financial services 

–  Complete the alignment with EU prudential requirements and continue strengthening supervisory 

practices. 

–  Complete  implementation  of  the  new  capital  requirements  framework  for  credit  institutions  and 

investment firms. 

Information society and media 

–  Adopt the necessary primary and secondary legislation to complete the regulatory framework and 

introduce competition in all fields.  

Agriculture and rural development 

–  Strengthen  the  administrative  structures  and  capacity  needed  to  implement  market  and  rural 

development policies. 

–  Establish a vineyard register in line with EU standards.  

–  Continue  preparations  to  establish  effective  and  financially  sound  paying  bodies  for  the 
management  and  control  of  agricultural  funds,  in  line  with  EU  requirements  and  international 
auditing standards. 

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Food safety, veterinary and phytosanitary policy 

–  Substantially  improve  the  alignment  of  foodstuff  legislation  and  strengthen  the  necessary 

implementing structures. 

–  Make significant progress with alignment in the veterinary and phytosanitary sectors, including a 
system  for  animal 
treatment,  modernisation  of  agro-food 
establishments, animal disease control programmes, plant protection and quality of seeds and plant 
propagating material; significantly upgrade inspection structures. 

identification,  animal  waste 

Fisheries 

–  Substantially improve administrative structures and equipment to ensure effective implementation 
of  the  common  fisheries  policy,  including  management  of  resources,  inspection  and  control  of 
fishing  activities,  market  policy,  structural  programmes  and  a  management  plan  for  the  fleet 
capacity in accordance with available fish resources. 

–  Complete the establishment of a computerised fishing vessel register and of a satellite-based vessel 

monitoring system. 

Transport policy 

–  Continue work towards complete alignment with the EU acquis in the area of road transport.  

–  Adopt  implementing  legislation  for  rail  transport  in  particular  interoperability  provisions  and  the 

independent allocation of capacity.  

–  Work towards alignment with the EU acquis in the area of inland waterway transport, in particular 

as regards the safety of navigation and River Information Services. 

–  Continue alignment in maritime transport and ensure adequate flag state control.  

–  Reach full alignment with the EU acquis in the field of aviation. 

–  Continue implementation of the Memorandum of Understanding on the Development of the South 

East Europe Core Regional Transport Network. 

Energy 

–  Continue to strengthen administrative capacity and alignment with the EU acquis in the fields of 
energy  efficiency  and  renewable  energy  sources,  the  internal  energy  market  (electricity  and  gas) 
and nuclear energy. 

–  Ensure that oil stocks guarantee an adequate security of supply. 

Taxation 

–  Substantially  advance  work  towards  completing  alignment  with  the  tax  acquis  as  regards  VAT, 

excise duties and direct taxation, including the Code of Conduct for Business Taxation. 

–  Continue  strengthening  the  tax  administration  –  including  the  IT  sector  –  and  ensure  its  proper 
functioning  in  order  to  reach  EU  standards  and  IT  systems  interconnectivity.  Develop  and 
implement a Code of Ethics. 

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Economic and monetary policy 

–  Improve  monetary  policies  to  expand  the  use  and  effectiveness  of  market-oriented  monetary 

instruments. 

Statistics 

–  Continue developing the macroeconomic, business and social statistics. 

Social policy and employment 

–  Further align with the acquis and strengthen the related administrative and enforcement structures, 

including the labour inspectorates. 

–  Support the social partners’ capacity building efforts, notably through autonomous bipartite social 

dialogue. 

–  Develop and implement a comprehensive employment strategy involving all relevant actors in view 
the  European  Employment  Strategy.  Ensure  appropriate  analysis, 

of  participation 
in 
implementation and assessment capacity. 

–  Develop  and  implement  a  national  strategy  on  social  inclusion,  including  data  collection,  in  line 
with EU practice with a view to future participation in the European Strategy on social inclusion. 

–  Identify needs for human resources development to prepare for the European Social Fund.  

Enterprise and industrial policy  

–  Update and articulate better the policy approach concerning financial instruments for SMEs which 

should allow the Government to move from direct lending towards softer support schemes. 

Regional policy and coordination of structural instruments 

–  Ensure a clear distribution of responsibilities and strengthen coordination, both at inter-ministerial 

level and between national and regional authorities. 

–  Continue to build up capacity in the designated managing and paying authorities. 

–  Improve the design and implementation of regional development plans. 

–  Set  up  proper  monitoring and  evaluation  systems  and  enhance  financial  management  and  control 

procedures. 

–  Introduce adequate regional statistics. 

Justice, freedom and security  

–  Bring  national  legislation  in  line  with  EU  rules  and  best  practices  and  further  strengthen  border 
control;  develop  national  databases  and  registers  and  ensure  coordination  between  the  relevant 
services. 

–  Develop  a  national  database  for  checking  asylum  seekers’  personal  data,  including  fingerprints, 

with a view to preparing for participation in EURODAC. 

–  Enhance efforts to integrate refugees. 

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–  Further  improve  the  equipment  and  infrastructure  of  the  police,  including  the  establishment  of  a 
computer-based  investigation  system;  strengthen  cooperation  between  the  police  and  other  law 
enforcement agencies; reinforce the fight against drug trafficking, organised crime, economic crime 
(including  money  laundering  and  counterfeiting  of  currencies),  fraud  and  corruption;  improve 
alignment of the related national legislation with the acquis in these sectors. 

–  Prepare for the application of various legal instruments in the field of judicial co-operation in penal 

and civil matters by providing appropriate training on court to court dealings. 

Science and Research  

–  Start designing and applying an integrated research policy. 

Education and culture 

–  Step  up  efforts  to  create  a  modern  vocational  education  and  training  system  and  to  ensure  the 

implementation of the Bologna criteria in higher education. 

Environment 

–  Ensure  the  integration  of  environmental  protection  requirements  into  the  definition  and 
implementation of other sectoral policies. Develop an environmental investment strategy based on 
estimations of the costs of alignment. Continue to implement horizontal legislation. 

–  Continue  work  on  the  transposition  of  the  EU  acquis,  with  particular  emphasis  on  waste 
management,  water  quality,  air  quality,  nature  protection  and  integrated  pollution  prevention  and 
control.  Increase  investments  in  environmental  infrastructure,  with  particular  emphasis  on  waste 
water collection and treatment, drinking water supply and waste management. 

–  Ratify the Kyoto Protocol to the United Nations Framework Convention on Climate Change. 

Consumer and Health Protection 

–  Complete  alignment  with  the  EU  acquis  on  safety-related  measures  and  strengthen  the 

administrative capacity needed for effective market surveillance. 

–  Continue alignment with the EU acquis on non-safety related measures. 

Customs union 

–  Strengthen  and  consolidate  the  administrative  and  operational  capacity  of  the  customs  services. 
Expand  training  of  all  staff  and  increase  the  use  of  EU-compatible  information  technologies  and 
continue preparations to ensure interconnectivity with EU systems. Strengthen auditing and the use 
of risk assessment and selectivity. 

–  Substantially  advance  alignment  with  the  acquis,  in  particular  in  the  areas  of  free  zones,  transit, 

fees, tariff quotas and the surveillance of imports and exports of goods. 

Financial control 

–  Develop  the  capacity  and  alignment  of  the  Public  Internal  Financial  Control  system,  including 
decentralised  managerial  accountability  and  functionally  independent  internal  audit  as  well  as 
central coordination and harmonisation. 

–  Reform  and  strengthen  the  external  audit  function  in  accordance  with  international  and  EU  best 

practice. 

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4. 

PROGRAMMING 

Community  assistance  under  the  Stabilisation  and  Association  Process  to  the  Western  Balkan 
countries  will  be  provided  under  the  existing  financial  instruments,  in  particular  by  the  CARDS 
Regulation3  and  the  PHARE4  SAPARD5  and  ISPA6  pre-accession  instruments.  Accordingly,  this 
Decision will have no financial implications. Croatia can have access to funding from multi-country 
and horizontal programmes.  

5. 

CONDITIONALITY 

Community  assistance  under  the  Stabilisation  and  Association  Process  to  the  Western  Balkan 
countries is conditional on further progress in satisfying the Copenhagen criteria as well as progress in 
meeting the specific priorities of this Accession Partnership. Failure to respect these conditions could 
lead the Council to take appropriate measures on the basis of Article 5 of Council Regulation (EC) No 
2666/20007. Community assistance shall also be subject to the conditions defined by the Council in its 
Conclusions of 29 April 1997, and 21-22 June 1999 in particular as regards the recipients’ undertaking 
to carry out democratic, economic and institutional reforms. 

Community  assistance  for  financing  projects  through  the  three  pre-accession  instruments  PHARE, 
ISPA  and  SAPARD  is  further  conditional  on  respect  by  Croatia  of  its  commitments  under  the 
Stabilisation and Association Agreement, further steps towards satisfying the Copenhagen criteria and 
in particular progress in meeting the specific priorities of this Accession Partnership. Failure to respect 
these  general  conditions  could  lead  to  a  decision  by  the  Council  on  the  suspension  of  financial 
assistance on the basis of Article 4 of Regulation (EC) No 622/98. 

6. 

MONITORING 

The  implementation  of  the  Accession  Partnership  shall  be  examined  through  the  framework  of  the 
mechanisms  established  under  the  Stabilisation  and Association  Process,  notably  the  annual  Reports 
presented by the Commission. 

3 

4 

5 

6 

7 

Council Regulation (EC) No 2666/2000 (OJ L 306, 7.12.2000, p. 1). Regulation as last amended by Regulation 
(EC) No 2257/2004 (OJ L 389, 30.12.2004, p. 1). 
Council  (EEC)  No  3906/89  (OJ  L  375,  23.12.1989,  p.  11).  Regulation  as  last  amended  by  Regulation  (EC)  No 
2257/2004 (OJ L 389, 30.12.2004, p. 1) 
Council  (EC)  No  1268/99  (OJ  L  161,  26.6.1999,  p.  87).  Regulation  as  last  amended  by  Regulation  (EC)  No 
2257/2004 (OJ L 389, 30.12.2004, p. 1). 
Council Regulation (EC) No 1267/99 ( OJ L 161, 26.6.1999, p. 73) . Regulation as last amended by Regulation 
(EC) No 2257/2004 (OJ L 389, 30.12.2004, p. 1) 
Article 5 of Council Regulation (EC) No 2666/2000: 
"1. Respect for the principles of democracy and the rule of law and for human and minority rights and 
fundamental freedoms is an essential element for the application of this Regulation and a precondition 
of  eligibility  for  Community  assistance.  If  these  principles  are  not  respected,  the  Council,  acting  by 
qualified majority on a proposal from the Commission, may take appropriate measures.  
2.  Community  assistance  shall  also  be  subject  to  the  conditions  defined  by  the  Council  in  its 
Conclusions  of  29  April  1997,  in  particular  as  regards  the  recipients'  undertaking  to  carry  out 
democratic, economic and institutional reforms." 

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