2006/145/EC: Council Decision of  20 February 2006  on the principles, priorities and conditions contained in the Accession Partnership with Croatia and repealing Decision 2004/648/EC
Date: 2006-02-20
Institutions: Council of the European Union
Subjects: Croatia, accession to the European Union

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COUNCIL DECISION

of 20 February 2006

on the principles, priorities and conditions contained in the Accession Partnership with Croatia and
repealing Decision 2004/648/EC

(2006/145/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 533/2004 of 22
March 2004 on the establishment of Partnerships
in the
framework of the Stabilisation and Association Process (1), and
in particular Article 1a and Article 2 thereof,

Having regard to the proposal from the Commission,

(6)

(7)

Regulation (EC) No 533/2004 stated that the follow-up
to the Accession 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, Croatia is expected to develop a plan
with a timetable and specific measures to address the
priorities of this Accession Partnership.

(8)

Decision 2004/648/EC should therefore be repealed,

Whereas:

HAS DECIDED AS FOLLOWS:

Article 1

(1)

(2)

(3)

(4)

(5)

The Thessaloniki European Council of 19 and 20 June
2003 endorsed the introduction of the Partnerships as a
means of materialising the European perspective of the
Western Balkan countries within the framework of the
Stabilisation and Association Process.

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

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

The Council adopted on 13 September 2004 a European
Partnership with Croatia (2).

On 3 October 2005, the Member States started nego-
tiations 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 implemen-
tation of the Partnership, as regularly revised.

It is therefore appropriate to adopt an Accession Part-
nership 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.

Article 2

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

Article 3

Decision 2004/648/EC shall be repealed.

Article 4

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

Done at Brussels, 20 February 2006.

For the Council
The President

J. PRÖLL

(1) OJ L 86, 24.3.2004, p. 1. Regulation as amended by Regulation (EC)

No 269/2006 (OJ L 47, 17.2.2006, p. 7).

(2) Council Decision 2004/648/EC of 13 September 2004 on the prin-
ciples, priorities and conditions contained in the European Part-
nership with Croatia (OJ L 297, 22.9.2004, p. 19).

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ANNEX

CROATIA: ACCESSION PARTNERSHIP 2005

1. INTRODUCTION

The Thessaloniki 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 European 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.

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

2. PRINCIPLES

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.

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 adminis-
tration 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, in particular by contributing to implementing the Sarajevo Declaration.

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— Pursue efforts aimed at reconciliation among citizens in the region.

— 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 (SAA)
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 a protocol introducing a tariff quota on sugar, the enlargement protocol and further trade
concessions on agricultural and fisheries products), and ensure proper implementation of their results.

Democracy and The Rule of Law
— Take steps to adopt consistent and permanent electoral legislation, which regulates issues such as voters’ lists, out-of-

country voting and campaign financing in a transparent manner.

Political criteria

Public administration
— Fully implement public administration reform measures on recruitment, promotion and training, and improve human
resource management in all bodies of the public administration in order to ensure accountability, efficiency, openness,
transparency, depoliticisation and a high level of professionalism of the public service.

— 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 tech-

nology 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.

— 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.

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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 audiovisual 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
inde-
pendence 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 and the application of a uniform standard of criminal responsibility regardless of national origin.

— 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 tenan-
cy/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.

— 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 and police cooperation, including on war crimes,
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.

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— 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.). Improve transparency of the privatisation process.

— 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 devel-
opment of private enterprises and foreign direct investment, including through improving administrative efficiency.

— 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 regu-
latory, 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.

— Start screening of national legislation to identify incompatibilities with Articles 28, 29 and 30 of the EC Treaty, plan

for their elimination and prevent the introduction of new barriers.

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.

— Start screening of national legislation to identify restrictions on the right of establishment and the freedom to provide

services, plan for their elimination and prevent the introduction of new barriers.

— 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 and begin to ensure effective implementation. Strengthen the adminis-
trative capacity of the financial intelligence unit (FIU) 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 on a non-discriminatory basis 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 adminis-

trative capacity, including in law enforcement agencies and the judiciary.

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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 to ensure, inter alia, that all aid is in line with the acquis.

— 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.

— 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, moni-

toring, 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 implemen-

tation of the trilateral agreement reached in June 2004.

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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.

— 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 in the nuclear field, as well as ensure a high level of nuclear safety and radiation protection.

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-discrimi-

nation.

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

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Enterprise and industrial policy
— Further simplify and accelerate company registration procedures;
facilities for SMEs; further develop regulatory impact assessments.

introduce on-line access to selected government

— 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.

Justice, freedom and security
— Strengthen border management,

integrated border management strategy (including on readmission);
and infrastructure; recruit additional staff and provide adequate training infrastructure.

in particular by reinforcing the surveillance of the sea borders;

implement the
increase investments in technical equipment

— 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; ensure effective measures to fight trafficking in human
beings and trans-national smuggling of persons,
in particular with due attention to prevention, protection and
social reintegration of victims. 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.

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External relations
— Continue the policy of trade liberalisation with the implementation of the Stabilisation and Association Agreement,
WTO-commitments and bilateral Free Trade Agreements (FTA). 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 fully implement the protocol introducing a tariff quota on sugar into the SAA in order to
prepare the Croatian sugar sector for the adjustments needed to perform within a realistic and economically
sustainable environment. The results of
the negotiations on the protocol shall be without prejudice to the
outcome of accession negotiations.

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 adminis-
trative 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, including training, 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.

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— 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
increasing access to education and improving housing conditions.
aimed at fostering employment opportunities,

— 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 citeria
— 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 approach directives (such as in the field of pharmaceuticals and
chemicals) and new approach directives, and in fulfilling requirements for membership of the European standardi-
sation 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.

Free movement of capital
— Make substantial progress in the removal of remaining restrictions on capital movements,

in particular on the

acquisition of real estate, in accordance with SAA obligations.

— Complete the establishment of an effective anti-money laundering regime, in particular by ensuring that agencies are

fully operational, adequately resourced and well coordinated with domestic and international counterparts.

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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 intellectual property rights (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 compe-

tition 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.

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
identification,
control
programmes, plant protection and quality of seeds and plant propagating material; significantly upgrade inspection
structures.

treatment, modernisation of

agro-food establishments,

animal disease

animal waste

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

including management of resources,

— Complete the establishment of a computerised fishing vessel register and of a satellite-based vessel monitoring system.

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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 allo-

cation 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.

— Duly address the issue of management of radioactive waste.

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.

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 of participation in

the European Employment Strategy. Ensure appropriate analysis, 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.

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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, including local 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.

— 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 cooperation in penal and civil matters

by providing appropriate training on court to court dealings and other relevant issues.

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
investment strategy based on estimations of the costs of alignment.

sectoral policies. Develop an environmental
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.

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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 intercon-
nectivity 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.

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 Council Regulation (EC) No 2666/2000 of
5 December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and
the Former Yugoslav Republic of Macedonia (CARDS Regulation) (1) and the Phare (2) SAPARD (3) and ISPA (4) 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 Regulation (EC) No 2666/2000. Community assistance shall also be subject to the conditions
defined by the Council in its Conclusions of 29 April 1997, and 21 and 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 Council Regulation (EC) No 622/98 of 16 March 1998 on assistance to the
applicant States in the framework of the pre-accession strategy, and in particular on the establishment of Accession
Partnerships (5).

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.

(1) OJ L 306, 7.12.2000, p. 1. Regulation as last amended by Regulation (EC) No 2112/2005 (OJ L 344, 27.12.2005, p. 23).
(2) Council Regulation (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).

(3) Council Regulation (EC) No 1268/99 (OJ L 161, 26.6.1999, p. 87). Regulation as last amended by Regulation (EC) No 2112/2005.
(4) Council Regulation (EC) No 1267/99 (OJ L 161, 26.6.1999, p. 73). Regulation as last amended by Regulation (EC) No 2112/2005.
(5) OJ L 85, 20.3.1998, p. 1.