Proposal for a Council Decision on the Principles, Priorities and Conditions contained in the European Partnership with the former Yugoslav Republic of Macedonia {SEC(2005) 1425}
Date: 2005-11-09
Institutions: European Commission
Subjects: North Macedonia, 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) 557 final 

Proposal for a 

COUNCIL DECISION 

on the Principles, Priorities and Conditions contained in the European Partnership with 
the former Yugoslav Republic of Macedonia 

(presented by the Commission) 

{SEC(2005) 1425} 

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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  Balkans  including  the 
annex  “The  Thessaloniki  Agenda  for  the  Western  Balkans:  moving  towards  European 
integration”,  which  introduced  the  European  Partnerships  as  a  means  of  realising  the 
European perspective of the Western Balkan countries.  

In  early  2004,  the  Commission  presented  its  first  Partnership  with  the  former  Yugoslav 
Republic  of  Macedonia.  It  was  adopted  by  the  Council  on  14  June  2004.  The  Commission 
considers  it  appropriate  to  update  this  first  Partnership  on  the  basis  of  its  findings  in  the 
Opinion on the application from the former Yugoslav Republic of Macedonia for membership 
of the European Union.  

This renewed European Partnership is based on the provisions of Council Regulation (EC) No 
533/2004  of  22  March  2004.  It  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  European  Partnership  by  preparing  a  plan  with  a  timetable  and  specific 
measures  to  address  the  European  Partnership’s  priorities.  The  progress  made  with 
implementing  the  priorities  will  be  monitored  regularly  by  the  Commission,  through  the 
Progress  Reports  and  through  the  structures  set  up  under  the  Stabilisation  and  Association 
Process. 

The  European  Partnership  priorities  should  form  the  basis  for  programming  the  financial 
assistance of the Community, which will continue to be provided under the relevant financial 
instruments,  in  particular  Council  Regulation  (EC)  No  2666/2000  of  5  December  2000 
(CARDS). 

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 European Partnership with 
the former Yugoslav Republic of Macedonia 

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  European 
Partnerships in the framework of the Stabilisation and Association Process and in particular 
Article 2 thereof1, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

1 
2 

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

Regulation (EC) No 533/2004 sets out in its Article 2 that the Council is to decide on 
the principles, priorities and conditions to be contained in the European Partnerships, 
as well as any subsequent adjustments. 

The  Council  adopted  on  14  June  2004  a  first  European  Partnership  with  the  former 
Yugoslav Republic of Macedonia2. It is appropriate to update this Partnership in order 
to identify new priorities for further work on the basis of the findings of the Opinion 
on the application from the former Yugoslav Republic of Macedonia for membership 
of the European Union. 

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

In  order  to  prepare  for  further  integration  with  the  European  Union,  the  former 
Yugoslav Republic of Macedonia should develop a plan with a timetable and specific 
measures to address the priorities of this European Partnership. 

OJ L 86, 24.3.2004, p. 1. 
Council Decision 2004/518/EC of 14 June 2004 on the principles, priorities and conditions contained in 
the European Partnership with the former Yugoslav Republic of Macedonia (OJ L 222, 23.6.2004, p. 
20). 

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HAS DECIDED AS FOLLOWS: 

Article 1 

In  accordance  with  Article  1  of  Council  Regulation  (EC)  No  533/2004,  the  principles, 
priorities and  conditions in the  European Partnership with the former Yugoslav Republic of 
Macedonia are set out in the annex hereto, which forms an integral part of this Decision. 

Article 2 

The implementation of the European Partnership shall be monitored through the mechanisms 
established  under  the  Stabilisation  and  Association  Process,  notably  the  annual  reports 
presented by the Commission. 

Article 3 

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

Done at Brussels,  

For the Council 
The President 

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ANNEX 

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA: 
2005 EUROPEAN PARTNERSHIP 

1. 

INTRODUCTION 

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

The first Partnership with the former Yugoslav Republic of Macedonia was adopted by the Council on 
14  June  2004.  It  is  appropriate  to  update  this  first  Partnership  on  the  basis  of  the  Commission’s 
Opinion on the application from the former Yugoslav Republic of Macedonia for membership of the 
European Union. The second European 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 European Partnership also provides guidance for financial assistance to the 
country. 

The  former  Yugoslav  Republic  of  Macedonia  is  expected  to  adopt  a  plan  including  a  timetable  and 
specific measures to address the European 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 the former Yugoslav Republic of Macedonia relate 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. 

3. 

PRIORITIES 

The priorities listed in this European Partnership have been selected on the basis that it is realistic to 
expect that the country 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 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 the 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  any  ranking  in  their 
importance. 

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3.1. 

Short-term priorities  

Key Priorities  

–  Implement  the  recommendations  regarding  the  electoral  process  made  by  the  OSCE-ODIHR  in 

time for the next elections. 

–  Adopt the Law on Police. 

–  Adopt the constitutional amendments needed to implement the reform of the judicial system, in line 
with  the  recommendations  of  the  Venice  Commission.  Subsequently  adopt  and  implement  the 
measures  needed  to  strengthen  the  independence  of  judges  (notably  by  reforming  the  Judicial 
Council and their system of selection), strengthen the training system for judges and prosecutors, 
improve the case load management, and reduce the backlog. 

–  Simplify company registration and licensing procedures, inter alia by implementing the “one-stop-

shop” system for company registration. 

–  Ensure proper implementation of the commitments undertaken in the Stabilisation and Association 

Agreement, in particular in the areas of electronic communications and customs. 

Political Criteria 

DEMOCRACY AND THE RULE OF LAW 

–  Consolidate the rule of law all over the territory, in particular through the timely implementation of 

the reforms in the law enforcement agencies. 

Elections 

–  Address the shortcomings identified in the electoral process and ensure a free and fair process in 

the next parliamentary elections. 

–  Prosecute frauds and irregularities. 

Public administration 

–  Implement fully the Law on Civil Servants. Depoliticise the recruitment and career advancement of 

civil servants and other public agents and introduce a merit-based career system. 

–  Improve administrative transparency. 

–  Adopt and implement a law on public access to information. 

–  Ensure the effective implementation of the Code of Ethics for Civil Servants. 

–  Ensure  proper  co-operation  of  all  State  bodies  with  the  Ombudsman  and  improve  the  follow  up 

given to his recommendations. 

–  Establish transparent and accountable local administrations and develop internal controls and audits 

in the management of decentralised funds. 

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Judicial system 

–  Ensure a timely implementation of the Strategy and Action Plan on Judicial Reform with a view to 
strengthening  its  independence,  improving  the  efficiency  of  the  courts,  and  strengthening  the 
overall capacity of the judicial system. 

–  Improve the execution of civil cases, and put in place an effective delivery and summons system. 

Anti-corruption policy 

–  Fully implement the recommendations of the Group of States against Corruption (GRECO). 

–  Improve  transparency  in  public  decisions  and  in  the  management  of  state  assets  (including  state 

owned land, concessions and public procurement). 

–  Implement the recommendations made by the State Commission for the Prevention of Corruption 

and further improve co-ordination and co-operation between the law enforcement agencies. 

–  Review the discretionary rights of certain public officials and adopt clear rules relating to conflict 

of interest. 

–  Ensure  the  implementation  of  the  legislation  adopted  on  the  financing  of  political  parties  and  on 

control over the assets of officials and impose effective sanctions in case of infringements. 

–  Identify the extent of the corruption phenomenon in key areas of public life in order that effective 

preventive and detection measures can be put in place. 

–  Enhance the capacity of police investigators and prosecutors to deal with corruption cases. Ensure 
adequate  co-ordination  between  the  State  Commission  for  the  Prevention  of  Corruption  and  the 
State Prosecutor. 

Ohrid Framework Agreement 

–  Ensure the effective implementation of the legislative framework  adopted in accordance with the 

Framework Agreement. 

–  Complete  the  necessary  legislative  framework  to  implement  the  decentralisation  process  and 

ensuring that municipalities have the necessary means to implement their new competences. 

–  Adopt  and  begin  to  implement  a  medium-term  strategic  plan  for  equitable  representation  of 

minorities in the public administration (including in the judiciary) and public enterprises. 

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

–  Fully comply with the European Convention on Human Rights, the Convention for the Prevention 
of Torture and Inhuman and Degrading Treatment or Punishment and other relevant international 
conventions. 

–  Strengthen the co-operation between the Ministry of Interior and the Ombudsman. 

–  Adopt the Law on Interception of Communications. 

–  Implement fully the rules applying to ethics, internal control and professional standards in all law 

enforcement agencies, the judiciary and prison administrations. 

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–  Promote  awareness  among  the  police,  judges,  prosecutors  and  other  law  enforcement  bodies  of 
their obligations in terms of human rights and ensure that they carry them out in accordance with 
international requirements. 

–  Ensure  the  full  implementation  of  the  constitutional  principle  of  the  separation  of  religious 
communities and groups from the State and review the legal framework for religious communities 
and groups. 

–  Adopt and implement a new Law on Broadcasting to guarantee the independence of broadcasters 

and the quality of the service they provide. 

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

–  Further promote access to education for all ethnic communities. 

REGIONAL ISSUES AND INTERNATIONAL OBLIGATIONS 

–  Ensure regional co-operation and good neighbourly relations. 

–  Conclude  and  implement  agreements  with  neighbouring  countries,  notably  on  free  trade,  cross-
border  co-operation,  fight  against  organised  crime,  trafficking  and  smuggling,  judicial  co-
operation, border management, environment, transport and energy. 

Economic Criteria 

–  Strengthen legal certainty for economic operators. Speed up legal procedures and clarify property 

rights. Take decisive steps towards completion of registration of land and real estate. 

–  Strengthen the capacity of the State to resolve commercial disputes. 

–  Ensure  that  administrative  decisions  are  based  on  transparent  rules  and  that  decisions  based  on 

discretionary powers are subject to effective administrative and judicial review. 

–  Improve the general business climate, inter alia by strengthening implementation and enforcement 
of  legislation  in  areas  such  as  auditing  and  corporate  accounting.  Improve  the  country’s 
attractiveness for domestic and foreign direct investors. 

–  Shorten  the  duration  of  bankruptcy  procedures,  clear  the  backlog  of  accumulated  bankruptcy 

procedures and reduce the backlog of companies which are bankrupt but not dissolved. 

–  Guarantee  equal  treatment  of  all  tax  payers.  Address  the  phenomenon  that  non-payment  of  taxes 
and  social  security  contributions  is  tolerated  for  certain  tax  payers.  Eliminate  the  backlog  of 
payment  arrears  of  taxes  and  social  security  contributions.  Ensure  effective  prosecution  of 
individuals and companies who participated in the “pyramid” tax evasion schemes. 

–  Complete  market  liberalisation.  In  particular,  continue  the  privatisation  process  and  the 

liberalisation of network industries. 

–  Address unemployment and support job creation. Ensure swift implementation of the new Law on 
Labour Relations and of the reform of the Employment Agency. Initiate further efforts to promote 
job creation, in particular for women and young people. 

–  Strengthen prudential and supervisory standards in the banking and insurance sectors. 

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–  Continue  with  the  alignment  of  the  legal  framework  for  the  financial  sector  and  ensure  swift 
implementation in order to ensure, in particular, a rapid catch-up with international standards and 
practices. 

–  Further  improve  public  finance  management.  In  particular,  implement  fiscal  decentralisation  and 

continue the wage decompression of the civil service salary structure. 

Ability to Assume the Obligations of Membership 

Free movement of goods 

–  Complete  the  restructuring  of  the  existing  institutional  framework  to  ensure  separation  of  the 

regulatory, accreditation, standardisation and product certification functions. 

–  Speed up the rate of adoption of European standards. 

–  Adopt legislation concerning the designation and notification of conformity assessment bodies and 

establish functioning conformity assessment infrastructure. 

–  Adopt a new Law on Product Safety. 

–  Develop a market surveillance structure required by the acquis on free movement of goods. 

–  Continue work on the transposition of Old Approach and New and Global Approach directives. 

Free movement of capital 

–  Further strengthen the anti-money laundering framework, in particular by raising awareness among 
reporting institutions and by establishing a credible enforcement record on the part of the relevant 
institutions. Implement the National Strategy against Money Laundering and Funding Terrorism. 

Public procurement 

–  Align the legislation on public procurement with the acquis, in particular in the utilities sector. 

–  Ensure  an  effective  remedies  system,  especially  as  regards  the  parties  that  may  have  recourse  to 

remedies and by extending deadlines for the submission of complaints. 

–  Increase the public sector’s awareness of and compliance with public procurement rules. 

–  Set up the Public Procurement Bureau and provide it with sufficient staff and equipment, also in 

view of its role in detecting corrupt activities. 

Company law 

–  Pursue  reforms  of  the  company  registration  process  in  order  to  reduce  the  complex  and  lengthy 

procedures. 

–  Ensure  proper  enforcement  of  accounting  and  financial  reporting  requirements.  Ensure 

implementation of International Accounting Standards. 

–  Make the Accounting Standards Committee operational. 

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Intellectual property law 

–  Establish  a  credible  enforcement  record  in  the  area  of  protection  of  intellectual  and  industrial 
property rights. Ensure that fines and other sanctions are effectively applied and have a dissuasive 
effect.  For  this  purpose,  allocate  adequate  resources  at  the  level  of  law  enforcement,  prosecution 
and the courts. 

Competition  

–  Establish a credible enforcement record in the anti-trust area and in the field of State aid control. 
Entrust the Commission for Protection of Competition with efficient means to enforce the law and 
ensure  the  independence  of  the  State  Aid  Commission,  providing  it  with  adequate  staff  and 
premises. 

–  Establish a comprehensive inventory and reporting of all aid measures in force. 

–  Further align the legislation with the EU competition legislation and the EU State aid rules. 

–  Raise awareness among government institutions and the business sector. 

Financial services 

–  Reinforce the legislation and the supervisory framework, including enforcement, for the financial 

sector, in particular regarding the insurance sector and securities markets. 

–  Establish an independent and properly staffed supervisory authority for the insurance sector. 

Information society and media 

–  Terminate  the  breach  of  the  Stabilisation  and  Association  Agreement  by  taking  all  necessary 
measures  to  fulfil  the  obligation  to  liberalise  the  electronic  communications  sector,  including  the 
adoption of all required secondary legislation and further strengthening of the regulatory bodies. 

–  Secure competitive safeguards for significant market power operators.  

–  Ensure that media legislation is in line with the recommendations formulated in May 2005 by the 

joint expertise of the Council of Europe and the Commission.  

–  Ensure that the legislation on defamation reflects European standards 

–  Reinforce the independence and administrative capacity of the Council for Electronic Media. 

Agriculture and rural development 

–  Speed up the registration of agricultural land in the real estate cadastre. 

–  Adopt  the  necessary  legislation  and  set  up  suitable  administrative  structures  to  operate  EU 
instruments related to rural development, including preparation for setting up a rural development 
paying agency. 

Food safety, veterinary and phytosanitary policy 

–  Continue the alignment of legislation with the veterinary and phytosanitary acquis. 

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–  Reinforce the capacity of the Veterinary Service at both central and local levels in order to put in 
place  an  EU-compatible  control  system,  particularly  for  import  controls.  Strengthen  the 
management and training of inspectors. 

–  Set up a system for identification and registration of bovines and other relevant species. 

–  Further  align  animal  disease  and  animal  health  control  systems  with  the  EU  legislative  and 

institutional requirements as well as the contingency plans for List-A diseases. 

–  Prepare a programme for up-grading food processing establishments to meet EU requirements. 

Transport policy 

–  Pursue  alignment  with  the  road  transport  acquis,  notably  as  concerns  market  access,  transport  of 

dangerous goods, social acquis and fiscal acquis. 

–  In the rail sector, establish a regulatory body that is independent from the infrastructure manager 
and  railway  undertakings.  Establish  a  safety  authority  responsible  for  issuing  safety  certificates. 
Align legislation with EU rules on transport of dangerous goods by rail. 

–  In the field of aviation, pursue further alignment with safety rules and rules on the functioning of 

the market. Strengthen the administrative capacity of the Civil Aviation Authority. 

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

measures for implementation of EU aviation legislation. 

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

East Europe Core Regional Transport Network. 

Energy 

–  Begin  to  align  the  legislation  on  the  internal  electricity  and  gas  markets,  energy  efficiency  and 
renewable  energy  sources  with  the  acquis  in  order  to  gradually  open  the  energy  market  to 
competition. 

–  Strengthen the independence of the Energy Regulatory Commission. 

–  Sign the Energy Community Treaty and prepare its implementation. 

–  Enhance administrative capacity in all energy sectors. 

Taxation 

–  Increase  the  administrative  capacity  to  implement  tax  legislation,  and  to  fight  against  fiscal 

evasion. 

–  Take structural measures to urgently reform control policy and improve control capacity. 

–  Develop an audit strategy and adequate IT systems. 

–  Amend  the  taxation  regime  for  tobacco  products  in  order  to  put  an  end  to  the  existing 

discrimination between domestic and imported products. 

–  Commit to the principles  of the Code  of Conduct  for Business  Taxation and ensure that  new tax 

measures are in conformity with these principles. 

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Statistics 

–  Strengthen the capacity of the State Statistical Office to allow for the timely implementation of the 
agricultural  census  and  the  business  census  and  for  the  continuous  development  of  national 
accounts  and  their  underlying  statistics.  Reinforce  the  collection  and  processing  of  agricultural 
statistics in line with EU standards and methodology. 

–  Amend  the  Law  on  State  Statistics  to  harmonise  it  fully  with  EU  standards  and  create  proper 

conditions for the implementation of the statistical acquis. 

Enterprise and industrial policy 

–  Continue  implementation  of  the  European  Charter  for  Small  Enterprises.  Introduce  a  voucher 
scheme  for  training  and  advisory  services.  Explore  options  for  tax  incentives  for  small  company 
start-ups. Improve SME advocacy and representation channels. 

–  Introduce systematic assessment of the impact of new regulation on enterprise. 

–  Ensure the launch and professional, independent management of the loan guarantee fund. 

–  Ensure effective implementation of e-signature legislation. 

Regional policy and co-ordination of structural instruments 

–  Develop a comprehensive and coherent strategy and a draft law on regional development. 

–  Identify  partnership  structures  ensuring  close  co-operation  between  relevant  stakeholders  at 

national and regional levels. 

Justice, freedom and security 

–  Adopt  and  implement  the  Law  on  Surveillance  of  the  Border,  including  the  provisions  on  the 
Integrated Border Management Strategy, and the Law on Aliens. Implement the Integrated Border 
Management Action Plan. Prepare written manuals in line with the Schengen manual to be used at 
all border control points.  

–  Develop the main databases for border management and ensure that they are connected. Upgrade 
equipment for document analysis and border surveillance. Introduce high quality travel and identity 
documents.  Provide  additional  training  for  staff  transferred  from  the  Ministry  of  Defence  on  the 
basis of a multi-annual training programme. 

–  Continue to implement the Action Plan for the reform of the police. Provide adequate funding and 
training.  Strengthen  co-ordination  and  co-operation  both  among  police  bodies  and  between  the 
police and other law enforcement agencies.  

–  Develop  and  implement  a  comprehensive  human  resources  and  training  strategy  for  the  police. 

Upgrade the equipment, particularly in specialised fields of investigation. 

–  Pursue the implementation of the Set of Action-Oriented Measures for the Fight against Organised 
Crime. Create an integrated intelligence system for inter-agency use in the fight against organised 
crime, including trafficking in human beings, arms and drugs.  

–  Develop a national strategy on drugs in line with the EU Drugs Strategy for 2005-2012 and well-
structured unit specialised in undercover policing and ensure training on intelligence-led policing. 
Ensure adequate resources for witness protection. Strengthen the capacity to investigate computer 
crimes. 

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Environment 

–  Improve the implementation of legislation and environmental monitoring. 

–  Strengthen  the  Environmental  Inspectorate  and  other  enforcement  bodies.  Establish  a  credible 
enforcement  record.  Ensure  that  fines  and  other  sanctions  are  effectively  applied  and  have  a 
dissuasive effect. 

–  Strengthen administrative capacity at national and local levels and start the preparation of strategic 

plans, including financial strategies. 

–  Develop an environmental investment strategy based on estimates of the cost of alignment. 

Customs union 

–  Align the level of general customs clearance fees with the acquis. Abolish the special fee of € 100 
for  every  request  submitted  for  allocating  tariff  quotas,  as  these  are  contrary  to  the  acquis  and 
infringe the provisions of the Stabilisation and Association Agreement. 

–  Increase administrative capacity to implement customs legislation and to fight against cross-border 

crime. 

–  Take all necessary steps to properly implement rules of origin. 

–  Further approximate legislation and procedures with the acquis, in particular in the area of transit, 

simplified procedures and tariff quotas. 

External relations 

–  Work towards the future regional Free Trade Agreement in South East Europe. 

Financial control 

–  Adopt  and  implement  consistent  legislation  for  the  entire  field  of  internal  control,  covering  all 
relevant aspects of managerial accountability, independent internal audit, central harmonisation as 
well as fraud prevention. 

–  Develop  a  Public  Internal  Financial  Control  (PIFC)  strategy  or  policy  paper  as  a  basis  for 

implementation of the medium-term priorities related to public internal control. 

–  Complete  the  establishment  of  functionally  independent  internal  audit  units  in  central  State 
institutions  and  create  such  units  at  municipal  level.  Strengthen  the  co-ordinating  role  of  the 
Ministry of Finance. Ensure adequate staff, training and equipment. 

–  Establish a harmonisation unit for financial management and control at the Ministry of Finance. 

–  Develop  efficient  management,  monitoring,  control  and  audit  systems  necessary  for  the 
implementation  of  programmes  under  the  EU  pre-accession  instruments  under  decentralised 
implementation conditions. 

–  Enhance the operational and financial independence of the State Audit Office and ensure follow-up 

to the findings in its reports. 

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3.2.  Medium-Term Priorities  

Political Criteria 

DEMOCRACY AND THE RULE OF LAW 

Public administration 

–  Further develop the capacity of the administration to implement the Stabilisation and Association 

Agreement. 

–  Further promote the active participation of civil society, including the social partners, in decision-

making processes. 

Judicial system 

–  Complete  the  implementation  of  the  Strategy  and  Action  Plan  on  Judicial  Reform.  Ensure  the 

independence and efficiency of the judiciary. 

–  Reach  tangible  results  in  improving  the  functioning  of  the  judiciary,  increasing  the  rate  of 

execution of civil cases. 

–  Further develop the Training Academy for judges and prosecutors. 

–  Further develop the capacity of the judicial system to deal with organised and economic crime. 

–  Provide adequate equipment and IT support to courts. 

Anti-corruption policy 

–  Further  implement  the  strategy  for  the  fight  against  corruption  and  enhance  awareness-raising 
initiatives in the administration and among the public at large. Ensure the effective implementation 
of measures and legislation adopted to fight corruption. 

–  Develop a methodology and operate a system for collecting and sharing intelligence and for mutual 

access to databases. 

Ohrid Framework Agreement 

–  Complete  the  decentralisation  process  and  further  implement  the  strategy  on  equitable 

representation of minorities in the public administration and public enterprises.  

HUMAN RIGHTS AND THE PROTECTION OF MINORITIES 

–  Further promote respect for human rights by law enforcement bodies and in detention centres and 

prisons. 

Economic Criteria 

–  Further improve the business environment. In particular, complete the registration of all land and 
real estate as well as the related strengthening of the cadastre. Ensure the enforcement of creditors’ 
rights within a transparent legal framework. Further improve conditions for investors. 

–  Improve the quality of governance while maintaining sound public finances. 

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–  Take steps to integrate the informal sector into the formal economy, particularly in order to fully 
include employed persons into the social security system and to eliminate unfair competition from 
unregistered companies. 

–  Promote  structural  change  and  the  diversification  of  economic  activities,  with  a  view  to  better 

realising the country’s comparative advantages. 

–  Pursue  regional  economic  integration.  Modernise  transport  and  communication  infrastructure. 

Extend the country’s trade integration with the region. 

–  Decrease  the  relatively  high  share  of  unproductive  expenditure  while  increasing  funding  for 

education, infrastructure and research and development. 

–  Modernise  the  educational  system.  Align  the  quality  of  the  educational  system  with  European 
standards. Modernise the curricula of secondary and university education. Step up efforts to create 
a modern vocational education and training system. 

–  Increase  administrative  capacity  with  respect  to  tax  collection  and  expenditure  control.  Increase 

internal control and audit standards. 

Ability to Assume the Obligations of Membership 

Free movement of goods 

–  Speed  up  efforts  to  become  a  full  member  of  CEN  and  CENELEC  and  of  the  European 
Telecommunications  Standards  Institute  (ETSI).  Guarantee  an  appropriate  staffing  level  at  the 
Institute for Standardisation. 

–  Strengthen the administrative capacity needed for effective market surveillance. 

–  Introduce mutual recognition clauses into the legislation. 

Freedom of movement for workers 

–  Develop sufficient administrative capacity to implement the Community rules on the co-ordination 

of social security schemes. 

Right of establishment and freedom to provide services 

–  Adopt 

legislation  for 

the  recognition  of  foreign  professional  qualifications  and  create 

administrative structures and procedures for this purpose. 

–  Adopt a postal policy based on the Postal Directives, including the establishment of an independent 

national regulatory authority in the field of postal services. 

Company law 

–  Ensure high standards in the audit profession. 

Competition 

–  Further improve the enforcement record in the areas of anti-trust and State aid control. 

Information society and media 

–  Transpose and implement the EU framework for the information society and media.  

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–  Adopt legislation on electronic commerce and conditional access services.  

–  Continue the process of alignment with the European Convention on Transfrontier Television and 

the Television without Frontiers Directive. 

–  Further strengthen the administrative capacity of the regulatory authorities. 

Agriculture and rural development 

–  Develop an overall strategy on rural development. 

–  Upgrade  the  capacity  of  the  agricultural  administration  and  complete  preparations  for  the 
enforcement and practical application of the management mechanisms of the Common Agricultural 
Policy,  in  particular  the  Integrated  Administration  and  Control  System  (IACS)  and  the  Paying 
Agency. Ensure a functioning Land Parcel Identification System (LPIS). 

–  Set up the vineyard register and make it operational. 

Food safety, veterinary and phytosanitary policy 

–  Further align the legislation with the acquis regarding transmissible spongiform encephalopathies 
(TSE)  and  animal  by-products,  implement  and  control  its  enforcement  and  set  up  the  necessary 
collection and treatment system. 

–  Establish  a  properly  staffed  plant  health  authority  and  provide  appropriate  laboratory  capacity  to 

the phytosanitary services. Further align the phytosanitary legislation with the acquis. 

Transport policy 

–  Continue work towards complete alignment with the acquis in the area of road transport. Continue 
alignment  with  the  railway  acquis  (first  and  second  railway  packages  and  interoperability). 
Achieve full alignment with aviation legislation. Ensure vigorous enforcement of the corresponding 
legislation. 

–  Further  implement  the  Memorandum  of  Understanding  on  the  South  East  Europe  Core  Regional 

Transport Network. 

Energy 

–  Continue the implementation of the requirements of the Energy Community Treaty. 

–  Work towards alignment with the acquis concerning nuclear energy and strengthen administrative 

capacity in the sector. 

Taxation 

–  Fully  align  tax  legislation  with  the  acquis,  including  new  legislation  (for  example  the  Energy 

Directive). 

–  Continue the reform of the tax administration and ensure its proper functioning. 

–  Continue preparations to ensure interconnectivity with EU computerised systems. 

–  Improve  transparency  and  the  exchange  of  information  with  EU  Member  States  in  order  to 
facilitate the enforcement of measures preventing the avoidance or evasion of taxes. In this context, 

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the  exchange  of  information  with  EU  Member  States  could  be  based  on  the  OECD  model 
agreement to exchange information. 

Statistics 

–  Define statistical regions that are compatible with the NUTS and launch the production of regional 

statistics. 

–  Create  a  farm  register  on  the  basis  of  the  agricultural  census  and  address  remaining  gaps  in 

agricultural statistics. 

–  Further develop macro-economic statistics and social statistics. 

–  Develop  reliable  business  statistics  based  on  the  statistical  business  register  and  the  business 

census. 

Social policy and employment 

–  Continue alignment with EU legislation in the fields of occupational health and safety, labour law 

and anti-discrimination, and strengthen the corresponding administrative structures. 

–  Reinforce the Labour Inspectorate in terms of staff and equipment and enable it to apply effective 

and dissuasive sanctions. 

–  Develop and implement a comprehensive employment strategy involving all relevant stakeholders 
with  a  view  to  subsequent  participation  in  the  European  Employment  Strategy,  matched  by 
appropriate capacity-building for analysis, implementation and assessment. 

Enterprise and industrial policy 

–  Define and implement an industrial strategy conducive to growth and innovation. 

–  Further develop support mechanisms for SMEs and improve access of SMEs to financial services. 

Regional policy and co-ordination of structural instruments 

–  Ensure a clear distribution of responsibilities and effective inter-ministerial co-ordination in order 

to develop a comprehensive and coherent regional development strategy. 

–  Set up partnership structures ensuring close co-operation between relevant stakeholders at national 

and regional levels. Involve socio-economic and other partners. 

–  Ensure  that  the  designated  managing  and  paying  authorities  will  progressively  build  up  their 

capacity. 

–  Design and implement national and regional development plans. 

–  Enhance financial management and control procedures and set up proper monitoring and evaluation 

systems. 

–  Set up a national agency for regional development. 

–  Develop  capacity  for  project  preparation  and  management  in  accordance  with  the  Structural  and 

Cohesion Funds, both at central level and at NUTS III level. 

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Justice, freedom and security 

–  Complete the implementation of the Integrated Border Management Strategy. 

–  Complete the implementation of the Action Plan for the reform of the police. Continue to upgrade 

equipment and enhance training. Further develop the human resources management system. 

–  Further  develop  the  integrated  system  for  intelligence-led  policing.  Strengthen  the  special 
investigation capabilities to fight organised crime, including trafficking in human beings, arms and 
drugs. 

–  Operate  asylum  procedures  which  are  fully  in  line  with  international  and  European  standards, 
including  a  reformed  appeals  system.  Strengthen  administrative  capacity  by  adopting  a  strategic 
plan for the administrative structures as well as guidelines for processing asylum cases. Strengthen 
procedural management and support. Strengthen reception capacity and develop a central database 
for all aliens covering asylum, migration and visas. 

–  Develop and implement a migration policy, including an active return policy, which is in line with 
EU  standards  and  effective  in  the  fight  against  illegal  migration  and  secondary  migration 
movements. 

Science and research 

–  Start designing and applying an integrated research policy. 

–  Strengthen  research  and  technological  development  capacity  in  order  to  ensure  successful 

participation in the Community Framework Programmes. 

Environment 

–  Integrate  environmental  protection  requirements  into  other  sectoral  policies,  in  particular  through 

the development of environmental impact assessments. 

–  Increase  investments  in  environmental  infrastructure,  with  particular  emphasis  on  waste  water 
collection and treatment, drinking water supply, tackling air pollution and waste management. 

Consumer and health protection 

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

Customs union 

–  Fully  align  customs  legislation  and  procedures  with  EU  legislation  and  standards  and  fully 

implement these procedures on the whole territory. 

–  Continue  to  strengthen  the  Customs  Administration  and  ensure  its  proper  functioning  in  order  to 

reach EU standards. Complete the implementation of the 2004-2008 Strategic Plan. 

–  Continue preparations to ensure interconnectivity with the computerised systems of the EU. 

Foreign, security and defence policy 

–  Ensure  that  the  “EU  Guiding  Principles  Concerning  Arrangements  between  a  State  Party  to  the 
Rome Statute of the International Criminal Court and the United States Regarding the Conditions 
to Surrender of Persons to the Court”, adopted on 30 September 2002, are fully taken into account. 

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Financial control 

–  Develop and implement the principles of decentralised managerial accountability and functionally 
independent  internal  audit in  accordance  with  the  internationally  accepted  standards  and  EU  best 
practice,  following  the  EU’s  Public  Internal  Financial  Control  (PIFC)  model,  through  coherent 
legislation and adequate institutional capacity. Ensure that the process towards achieving this is led 
by the Ministry of Finance in a co-ordinating and harmonising role. 

–  Further strengthen the operational capacity and functional as well as financial independence of the 

State Audit Office. 

–  Develop procedures and administrative capacity to ensure effective protection of the EC’s financial 

interests. 

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  Council  Regulation 
(EC)  No  2666/20003.  Accordingly,  this  Decision  will  have  no  financial  implications.  The  former 
Yugoslav  Republic  of  Macedonia  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 European 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 
2666/20004. Community assistance will also be subject to the conditions defined by the Council in its 
Conclusions  of  29  April  1997  and  of  21-22  June  1999,  in  particular  as  regards  the  recipients’ 
undertaking to carry out democratic, economic and institutional reforms. 

6. 

MONITORING 

The  implementation  of  the  European  Partnership  will  be  monitored  through  the  mechanisms 
established  under  the  Stabilisation  and  Association  Process,  notably  the  annual  reports  presented  by 
the Commission. 

3 
4 

OJ L 306, 7.12.2000, p. 1, as amended by Regulation (EC) No 2415/2001 (OJ L 327, 12.12.2001, p. 3). 
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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