Communication from the Commission to the Council and the European Parliament on strengthening the European neighbourhood policy {SEC(2006) 1504} {SEC(2006) 1505} {SEC(2006) 1506} {SEC(2006) 1507} {SEC(2006) 1508} {SEC(2006) 1509} {SEC(2006) 1510} {SEC(2006) 1511} {SEC(2006) 1512}
Date: 2006-12-04
Institutions: European Commission
Subjects: European neighbourhood policy, economic cooperation, political cooperation, trade cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.12.2006 
COM(2006)726 final 

COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON STRENGTHENING THE EUROPEAN NEIGHBOURHOOD POLICY 

{SEC(2006) 1504} 
{SEC(2006) 1505} 
{SEC(2006) 1506} 
{SEC(2006) 1507} 
{SEC(2006) 1508} 
{SEC(2006) 1509} 
{SEC(2006) 1510} 
{SEC(2006) 1511} 
{SEC(2006) 1512} 

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COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON STRENGTHENING THE EUROPEAN NEIGHBOURHOOD POLICY 

1. 

INTRODUCTION 

The  first  eighteen  months  of  implementation  of  the  European  Neighbourhood  Policy  (ENP) 
have  laid  a  substantial  foundation  for  strengthened  relations  between  the  Union  and  its 
neighbours.  We  have  a  single  policy  framework,  ENP  Action  Plans  with  eleven  of  our 
partners establishing concrete mutual commitments and an enhanced and productive dialogue 
with  almost  all  partners.  We  also  have  a  new  financial  instrument  that  will  significantly 
improve the quality of our assistance and provide more funds to support our partners’ reforms. 

The  premise  of  the  European  Neighbourhood  Policy  is  that  the  EU  has  a  vital  interest  in 
seeing  greater  economic  development  and  stability  and  better  governance 
its 
neighbourhood.  The  responsibility  for  this  lies  primarily  with  the  countries  themselves,  but 
the EU can substantially encourage and support their reform efforts. It is therefore in the best 
mutual  interest  of  both  the  EU  and  its  neighbours  to  build  a  much  stronger  and  deeper 
relationship. The ENP remains distinct from the process of EU enlargement - for our partners, 
considerably  enhanced  cooperation  with  the  EU  is  entirely  possible  without  a  specific 
prospect  of  accession  and,  for  European  neighbours,  without  prejudging  how  their 
relationship with the EU may develop in future, in accordance with Treaty provisions.  

in 

Most of our neighbouring countries have made progress during these last years in economic 
and political reforms – specific information on progress already achieved in implementing the 
first seven Action Plans can be found in the progress reports annexed to this Communication. 
Some partners have made the Action Plans the centrepiece of their domestic reform strategies 
and international financial institutions (IFIs) are also aligning their policies with them.  

Nevertheless,  poverty  and  unemployment,  mixed  economic  performance,  corruption  and 
weak  governance  remain  major  challenges.  Citizens  of  the  neighbouring  countries, 
particularly the young, are often faced with bleak personal prospects. “Frozen conflicts” and 
recent  events  in  the  Middle  East  and  Southern  Caucasus  remind  us  that  the  conditions  for 
peaceful coexistence remain to be established, both between some of our neighbours and with 
other key countries. These are not only our neighbours’ problems. They risk producing major 
spillovers for the EU, such as illegal immigration, unreliable energy supplies, environmental 
degradation and terrorism.  

It  has  thus  become  clear  that  the  ENP  could  and  should  be  strengthened,  particularly  when 
one considers the prohibitive potential cost of failing to support our neighbours in their reform 
efforts.  The  EU  must  present  an  attractive  offer  to  ENP  partner  countries  –  offering  them 
improved  trade  and  investment  prospects,  making  people-to-people  contacts  and  legitimate 
short-term travel easier, being more active in addressing frozen conflicts, and opening more 
possibilities  to  mobilise  funding.  The  EU  must  help  those  neighbouring  countries  who  are 
willing  to  reform  to  do  this  faster,  better  and  at  a  lower  cost  to  their  citizens.  It  must  also 
provide more incentives and convince those who are still hesitant.  

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The central argument of this Communication is that the ENP is indispensable and has already 
proven  its  worth  –  and  that  it  is  no  less  indispensable  that  the  EU  build  upon  this  by 
strengthening its commitment to the ENP. The Communication therefore contains a series of 
proposals to substantially improve the impact of the policy.  

2. 

STRENGTHS AND WEAKNESSES 

The strengths of the ENP lie in: 

•  Integration. It provides a single, clear framework covering the neighbourhood as a whole 
in which to discuss and handle the whole range of issues between the EU and each partner. 
For  instance,  focusing  exclusively  on  economic  issues  to  the  exclusion  of  uncomfortable 
governance or human rights issues thus becomes much more difficult, and the Action Plans 
provide for an active cooperation in the field of freedom, security and justice, promoting 
the rule of law.  

•  Joint  ownership.  The  operational  tool  of  the  policy  –  the  ENP  Action  Plan  –  is  fully 
negotiated and mutually agreed at political level. It is not an imposition by either side, but 
an agreed agenda for common work. 

•  Concreteness.  The  Action  Plans,  although  broad  and  wide-ranging,  are  detailed. 
Experience  with  their  implementation  shows  that  this  makes  it  much  easier  to  discuss, 
agree and implement specific, time-bound and measurable objectives.  

•  Better  use  of  funds.  From  now  on,  the  new  European  Neighbourhood  and  Partnership 
Instrument  (ENPI)  will  allow  Community  assistance  to  partner  countries  to  be  explicitly 
policy-driven,  drawing  also  on  new  forms  of  cooperation  (cross-border  cooperation, 
TAIEX, twinning), and with an increase in resources. Especially for those ENP countries 
thus  far  covered  by  TACIS,  the  ENPI  will  mark  a  major  improvement,  moving  from 
technical assistance to fully-fledged cooperation.  

However,  there  are  other  areas  of  the  ENP  where  there  is  considerable  potential  for  further 
progress.  The  EU  seeks  to  encourage  a  very  ambitious  reform  programme  in  partner 
countries, with many of the political and economic costs being up-front. Yet an important part 
of the incentives of the ENP– for instance in terms of market access and integration and other 
economic  benefits  –  will  only  bear  fruit  later.  This  creates  a  real  difficulty  for  partner 
countries in building the necessary domestic support for reform.  

More specifically: 

•  Trade and economic integration. The EU has continued to enhance trade relations with 
most  ENP  partners  including  by  supporting  Ukraine’s  WTO  accession  process  and 
preparing for negotiation of a deep and comprehensive free trade agreement, preparing for 
the  granting  of  autonomous  trade  preferences  to  Moldova  and  launching  negotiations  to 
extend free trade agreements with Mediterranean partners in terms of agricultural coverage 
and  services.  In  order  to  reap  additional  economic  and  political  benefits  for  all,  it  is 
important to offer all ENP partners, both in the East and the South, a clear perspective of 
deep trade and economic integration with the EU and to include within our liberalisation 
offers improved access in all areas of economic potential and interest for our partners. This 
should include products of most importance to them.  

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•  Mobility  and  migration.  Although  cooperation  with  ENP  countries  on  mobility  and 
migration  management  is  growing,  the  ENP  has  not  yet  allowed  significant  progress  on 
improving  the  movement  of  partner  country  citizens  to  the  EU.  The  length  and  cost  of 
procedures  for  short-term  visas  (e.g.  for  business,  researchers,  students,  tourists  or  even 
official  travel)  is  a  highly  “visible”  disincentive  to  partner  countries,  and  an  obstacle  to 
many of the ENP’s underlying objectives.  

•  Regional conflicts. The ENP has achieved little in supporting the resolution of frozen or 
open conflicts in the region, notwithstanding certain specific achievements (e.g. in relation 
to  border  management  in  Moldova  and  the  Palestinian  Territories).  The  EU  needs  to  be 
more active, and more present, in regional or multilateral conflict-resolution mechanisms 
and in peace-monitoring or peace-keeping efforts. 

The  Commission  has  therefore  identified  a  number  of  areas  in  which  the  ENP  should  be 
strengthened to ensure its success. In all these areas, this would mean an additional effort for 
the EU, but this would be outweighed by the political benefits. 

3. 

STRENGTHENING THE POLICY 

Development and reform in our partner countries is primarily in their own interest, and it is 
their  sovereign  responsibility.  But  it  is  also  in  the  interest  of  the  EU  to  support  partners  in 
these  efforts.  Many  of  the  tools  required  for  this  are  in  place.  Others  should  be  further 
strengthened, as set out below. In doing so, the EU will continue to tailor its support to the 
needs  and  aspirations  of  partners.  The  more  progress  a  partner  country  makes  in 
implementing reforms, the deeper the relationship can become, and the more support the EU 
should provide.  

3.1. 

Enhancing the economic and trade component 

Deeper  economic  integration  with  our  ENP  partners  will  be  central  to  the  success  and 
credibility  of  the  policy.  From  the  outset,  a  key  premise  of  the  ENP  was  that  economic 
integration  should  go  beyond  free  trade  in  goods  and  services  to  also  include  “behind  the 
border”  issues:  addressing  non-tariff  barriers  and  progressively  achieving  comprehensive 
convergence  in  trade  and  regulatory  areas  (such  as  technical  norms  and  standards,  sanitary 
and  phytosanitary  rules,  competition  policy,  enterprise  competitiveness,  innovation  and 
industrial policy, research cooperation, intellectual property rights, trade facilitation customs 
measures and administrative capacity in the area of rules of origin, good governance in the tax 
area, company law, public procurement and financial services). The ENP Action Plans are a 
step in this direction. 

FTAs  covering  essentially  industrial  goods  were  already  concluded  with  Mediterranean 
partners in the past and negotiations have recently been launched to expand their agricultural 
and fisheries coverage and include services and establishment. Over time, the implementation 
of  the  ENP  Action  Plans,  particularly  on  regulatory  areas,  will  prepare  the  ground  for  the 
conclusion of a new generation of “deep and comprehensive free trade agreements (FTAs)” 
with all ENP partners, like the one which the EU intends to negotiate with Ukraine.  

A  deep  and  comprehensive  FTA  should  cover  substantially  all  trade  in  goods  and  services 
between the EU and ENP partners including those products of particular importance for our 
partners  and  should  include  strong  legally-binding  provisions  on  trade  and  economic 

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regulatory  issues.  Existing  Mediterranean  FTAs  should  be  expanded  accordingly,  to  other 
regulatory areas. Results of trade sustainability impact assessments will be integrated into this 
process.  

Such deep and comprehensive FTAs will need to be tailored and sequenced carefully to take 
account  of  each  partner  country’s  economic  circumstances  and  state  of  development, 
including  a  certain  level  of  asymmetry  if  appropriate.  In  the  light  of  their  complexity  and 
ambitiousness, deep FTAs are medium-term – and for some ENP countries even long-term – 
objectives. Before engaging in negotiations on deep and comprehensive FTAs, the EU needs 
to consider partners’ ability to implement and sustain such agreements, as well as their level 
of ambition. Countries will move in this direction gradually and at different speeds, but it is 
important is to give them all the same perspective. The objective would ultimately be that our 
partners  share  a  common  regulatory  basis  and  similar  degree  of  market  access.  In  order  to 
achieve  this  goal  and  to  strengthen  their  administrative  capacity,  partners  will  have  to 
continue their efforts towards the implementation of the trade and regulatory sections of the 
Action Plans. Particular attention will be given to assistance in these sectors.  

This may in the first instance largely remain a bilateral approach, bilaterally between the EU 
and each partner, in order to take account of the great differences between partner countries’ 
situations. It will allow the most advanced countries to move faster without being held back 
by others. However, the concept is fully consistent with a longer-term vision of an economic 
community  emerging  between  the  EU  and  its  ENP  partners.  Elements  of  this  are  already 
being developed around the Mediterranean through the Agadir Agreement. In the longer-term, 
working towards a broader Neighbourhood economic community would include such points 
as the application of shared regulatory frameworks and improved market access for goods and 
services among ENP partners, and some appropriate institutional arrangement such as dispute 
settlement mechanisms. 

Action points: Trade, investment and economic integration 

–  pursuit  of  a  “deep  and  comprehensive  FTA”  approach  for  all  ENP  partners, 
including  “behind  the  border”  elements  and  liberalisation  of  trade  flows  among 
partner countries, with a certain level of asymmetry if appropriate 

–  enhanced  support  for  reforms  and  efforts  to  improve  trade  and  economic 

regulatory environment and the investment climate 

–  strengthened economic integration and cooperation in key sectors 

3.2. 

Facilitating mobility and managing migration 

Even  from  the  earliest  days  of  the  European  Community,  the  ability  of  the  citizens  of  our 
Member States to travel within the Community, on business, for educational purposes, or on 
holiday,  has  been  vital  in  promoting  internal  trade  and  investment,  in  building  mutual 
awareness and encouraging economic, social and cultural contacts. Mobility of persons is of 
the  utmost  importance  also  for  all  ENP  partners.  The  Union  cannot  fully  deliver  on  many 
aspects  of  the  European  Neighbourhood  Policy  if  the  ability  to  undertake  legitimate  short-
term  travel  is  as  constrained  as  it  is  currently.  Yet  our  existing  visa  policies  and  practices 
often impose real difficulties and obstacles to legitimate travel. Long queues in front of EU 
consulates  are  a  highly  visible  sign  of  the  barriers  to  entry  into  the  Union.  Whether  for 
business purposes, for purposes of education or tourism, science and research, for civil society 

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conferences or even for official meetings at national or local government level, the ability to 
obtain  short-term  visas  in  reasonable  time  at  reasonable  cost  will  be  an  indicator  of  the 
strength of our European Neighbourhood Policy. 

An enhanced ENP will therefore require a very serious examination of how visa procedures 
can  be  made  less  of  an  obstacle  to  legitimate  travel  from  neighbouring  countries  to  the  EU 
(and vice versa). Of course this can only be addressed in the context of broader packages to 
address  related  issues  such  as  cooperation  on  illegal  immigration,  in  particular  by  sea, 
combating  trafficking  and  smuggling  in  human  beings,  efficient  border  management, 
readmissions agreements and effective return of illegal migrants, and adequate processing of 
requests  for  international  protection  and  asylum.  But  with  a  solid  commitment  from  our 
partners  to  work  on  these  prerequisites,  it  should  be  possible  to  offer  very  substantial 
improvements  on  the  visa  side  –  providing  simpler  and  faster  visa  procedures  for  certain 
specific  categories  of  travel,  particularly  for  business,  official  and  educational  purposes–  at 
the same time as we strengthen our joint efforts against illegal immigration.  

As an illustration of what can be achieved, visa facilitation and readmission agreements were 
initialled with Ukraine in October 2006, while discussions with Moldova on such agreements 
are expected to be launched shortly. Negotiations with Morocco on a readmission agreement 
are  almost  concluded..  Visa  facilitation  agreements  are  negotiated  back-to-back  with 
readmission  agreements  and  are  “tailor-made”,  responding  to  the  specific  needs  of  the  third 
country  concerned  and  provide  simplification  of  the  short-term  visa  issuing  procedures  for 
certain categories of persons.  

Wider  developments  in  visa  policy  in  the  EU  are  also  relevant  here,  for  example  with 
negotiations  between  Member  States  on  the  creation  of  the  Visa  Information  System  which 
would  include  biometrics  for  visa  applicants  and  which  would  enable  the  exchange  of  visa 
data  between  Member  States.  Moreover,  the  Commission  has  proposed  several  types  of 
cooperation  between  Member  States,  including  the  creation  of  common  visa-application 
centres, which could greatly facilitate the reception of visa applications in ENP countries. 

Taking account of the need for a balanced approach and building on the dialogue on migration 
and  visa  issues  foreseen  in  the  ENP  Action  Plans,  the  Union  should  be  willing  to  enter 
negotiations  on  readmission  and  visa  facilitation  with  each  neighbouring  country  with  an 
Action Plan in force, once the proper preconditions have been met. 

Action points: Mobility and migration 

–  visa  facilitation,  removing  obstacles  to  legitimate  travel,  e.g.  for  business, 

educational, tourism, official purposes 

–  as  part  of  a  package  approach  ensuring  well-managed  mobility  and  migration, 
addressing readmission, cooperation in fighting illegal immigration, and effective 
and efficient border management  

3.3. 

Promoting people-to-people exchanges 

Distinct from the mobility issue, the ENP must have a “human face”, and citizens of the EU 
and  of  the  neighbouring  countries  should  have  more  opportunities  to  interact,  and  to  learn 
more  about  each  others’  societies  and  understand  better  each  others’  cultures.  The  ENP 
cannot  only  be  a  matter  for  officials  and  politicians.  On  both  sides  of  the  borders,  people 

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should  be  able  to  see  directly  the  impact  of  a  stronger  bond  between  the  Union  and  its 
neighbours. 

•  Educational  and  youth  exchanges  must  be  a  core  element  of  the  ENP,  just  as  such 
exchanges have helped to build bridges and overcome prejudices within the EU. University 
cooperation will be supported through TEMPUS, while a new scholarship scheme for the 
ENP region will be launched in 2007 under Erasmus Mundus. Policy dialogue on higher 
education should be reinforced to support the modernisation and reform efforts of partner 
countries.  The  dissemination  and  exchange  of  best  practice  in  this  area  will  be  further 
enhanced.  These  instruments  will  help  to  establish  an  area  of  cooperation  in  higher 
education and contribute to convergence with EU policies, such as the Bologna Process, in 
which  many  ENP  partners  participate.  Assistance  for  education  reform  should  be 
strengthened,  including  through  the  European  Training  Foundation.  A  new  ENP 
programme could also be envisaged to promote exchanges among young professionals in 
all walks of life, including culture and the arts, as well as among regulators. Member States 
will have an important part to play in supporting such activities. 

•  Mobility of researchers is an essential part of increasing research cooperation between the 
EU  and  the  ENP  countries  and  improving  excellence.  Circulation  of  scientists  requires 
common  action  to  raise  awareness  of  opportunities  for  mobility  grants  (e.g.  Marie  Curie 
fellowships), fully exploiting existing information tools. 

•  More  generally,  civil  society  exchanges  should  also  be  strengthened,  reaching  beyond 
governmental contacts to build bridges in many areas – for example, contacts among trade 
unions,  regional  and  local  authorities  (including  city-twinning  programmes),  health 
practitioners, NGOs, and cultural groups. The cross-border cooperation programmes to be 
funded under the ENPI will play an important role here, but broader EU-wide exchanges 
will  also  be  necessary.  Many  of  these  exchanges  will  be  predominantly  economic  and 
social  in  character,  but  cultural  exchanges  and  inter-cultural  dialogue  will  also  be 
important here. 

•  An important specific instance of these civil society exchanges will be enhanced business-
to-business  contacts.  Employers’  organisations  in  the  EU  and  in  ENP  countries, 
particularly those for small and medium-sized companies, should be actively encouraged to 
establish closer links and transfer experience.  

•  Civil  society  participation  in  the  ENP  should  go  beyond  exchanges  and  cooperation 
programmes.  We  must  encourage  partner  governments  to  allow  appropriate  participation 
by  civil  society  representatives  as  stakeholders  in  the  reform  process,  whether  in  the 
preparation of legislation, the  monitoring of its implementation or in developing national 
or  regional  initiatives  related  to  the  ENP.  At  the  national  level,  or  in  a  broader  regional 
context, government / civil society seminars on the challenges of reform will help build a 
climate of confidence. 

•  Visibility  will  also  be  important  in  strengthening  the  ENP,  making  it  meaningful  to  the 
citizens of the EU and of the partner countries. The Commission has already put in place 
an ENP information and communication strategy. Member States should also reflect ENP 
objectives  and  achievements  in  their  own  information  activities,  both  externally  and 
internally. 

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The  human  dimension  of  the  ENP  is  as  much  a  matter  for  the  Member  States  as  for  the 
Community. Integrating these elements in bilateral programmes, and sharing information and 
best practices on people-to-people activities, will enhance the image of the Union as a whole 
in  the  partner  countries.  To  help  improve  the  overall  EU  visibility  of  these  efforts,  the 
Commission intends to establish a “one-stop website”, linking to Member State websites, to 
provide simpler access to information on exchange programmes across the Union. 

Action points: People-to-people exchanges 

–  educational, cultural,youth and research exchanges  

–  civil society exchanges, and enhanced civil society participation in ENP 

–  exchanges between regional and local authorities 

–  training the regulators of tomorrow 

–  business-to-business contacts 

–  visibility and information activities 

3.4. 

Building a thematic dimension to the ENP 

Thus far, the ENP has been largely bilateral, between the EU and each partner country. This is 
essential due to the large differences between partners in terms of their political and economic 
situations,  needs  and  aspirations.  Such  differentiation  needs  to  remain  at  the  heart  of  the 
policy.  

Nevertheless, there are a number of cross-cutting themes where the EU and its ENP partners, 
both  South  and  East,  share  common  interests  and  concerns  and  which  could  usefully  be 
addressed in a multilateral context. In areas such as energy, transport, the environment, rural 
development,  information  society,  research  cooperation,  public  health,  financial  services, 
border management, migration or maritime affairs, problems are often not merely bilateral in 
nature and could benefit from common debate, action and cooperation between the EU and all 
or most ENP partners. These areas are important for durable growth, prosperity, stability and 
security.  

The list of topics for such ENP-wide themes would need to be explored and debated in depth. 
Likewise,  the  ways  of  addressing  such  themes  need  further  consideration.  Some  could  be 
dealt  with  through  relatively  loose  methods  such  as  ad  hoc  or  more  regular  ministerial  or 
expert-level meetings. Others are likely to benefit from a more institutionalised or integrated 
setup. Attention must be paid to the effective implementation of multilateral agreements and 
processes,  whether  existing  or  new.  Multilateral  agreements  between  the  EU  and  ENP 
partners  in  a  small  number  of  key  sectors  should  be  urgently  considered;  the  most  obvious 
examples  are  energy  (extending  the  Energy  Community  Treaty),  and  transport  (horizontal  / 
global aviation agreements). The extension of networks should also be considered, ensuring 
their interoperability with EU systems. 

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Another  important  element  of  the  ENP  is  the  possibility  for  ENP  partners  to  participate  in 
certain  Community  agencies  and  programmes.  In  an  accompanying  Communication  on  this 
subject1, the Commission proposes a general approach to these issues.  

Action points: Thematic aspects 

–  enhanced multilateral and bilateral dialogue with ENP partners in key sectors 

–  consideration  of  additional  multilateral  agreements  in  energy  and  transport  and 

strengthening of existing ones 

–  work for the extension of the EU transport and energy networks to neighbouring 

countries, as well as interoperability 

–  participation of neighbours in relevant Community agencies and programs 

3.5. 

Strengthening political cooperation 

If the ENP cannot contribute to addressing conflicts in the region, it will have failed in one of 
its key purposes. Such conflicts can threaten the Union’s own security, whether through the 
risk  of  escalation  or  of  an  exodus  of  refugees,  or  by  interrupting  energy  supplies  or  cutting 
trade  and  transport  links,  or  through  the  spread  of  terrorism  and  organised  crime  including 
trafficking in human beings, drugs and arms. The Union makes a very large contribution to 
assisting refugees and displaced persons – how much better if these resources could be used to 
promote  sustained  development.  There  is  also  a  need,  in  the  interest  of  all  concerned,  to 
engage  Russia  in  closer  cooperation  in  preventing  conflicts  and  enhancing  stability  across 
Eastern Europe and the Southern Caucasus. 

Whether in Moldova or the Southern Caucasus, the Palestinian Territories or the Middle East 
more generally, or the Western Sahara, the Union’s neighbourhood has suffered the effects of 
such conflicts for many years. The ENP can never substitute for the regional or multilateral 
efforts underway to address these issues. But the EU must be prepared to play a more active 
role here, whether through full participation in such efforts (as is the case in the Quartet), or 
indeed  through  case-by-case  participation  in  civil  or  military  monitoring  or  peacekeeping 
operations.  Border-management  operations  also  have  an  important  part  to  play  here  -  the 
success  of  the  EUBAM  mission  on  the  Moldovan  border  and  the  deployment  in  Rafah,  for 
example, offer important pointers. The Commission stands ready to develop, together with the 
Council  Secretariat,  further  proposals  in  the  field  of  conflict  resolution.  The  new  Stability 
Instrument will also provide opportunities to strengthen EU involvement in these areas. 

The ENP can also provide the means for a strengthened dialogue, accompanied by concrete 
support  for  reform  and  development,  which  can  make  its  own  longer-term  contribution  to 
addressing  these  issues.  Enhanced  regional  cooperation  (point  3.6  below)  can  make  an 
important  contribution  in  this  context.  In  addition,  there  are  a  number  of  steps  which  could 
considerably strengthen the ENP’s political dimension.  

1 

As  detailed  in  the  simultaneous  Commission  Communication  “The  General  Approach  to  enable  ENP 
partner  countries  to  participate  in  Community  agencies  and  Community  programmes”  -  COM(2006) 
724, 29.11.2006. 

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•  The  possibility  of  aligning,  on  a  case-by-case  basis,  with  CFSP  Declarations  (already 

offered to eastern ENP partners), could be proposed also to southern partners. 

•  ENP partners could be invited, also on a case-by-case basis, to briefing and coordination 
meetings organised by the EU in international fora such as the UN, Council of Europe, and 
OSCE. 

•  An  informal  high-level  meeting  with  all  ENP  partners  with  whom  an  Action  Plan  is  in 
force  could  take  place  in  2007  serving  the  immediate  practical  purpose  of  launching  the 
enhanced ENP proposed in this Communication.  

•  Parliamentary  cooperation  could  also  be  intensified,  whether  between  the  European 
Parliament  and  national  parliaments,  or  through  the  work  of  European  political 
foundations. 

•  The Union’s presence across the region could also be enhanced through the strengthening 
of  EC  and  Member  State  diplomatic  missions  in  ENP  countries.  Full  Commission 
Delegations should be opened in all ENP countries as soon as possible. 

Action points: Political cooperation 

–  more  active  EU  role  in  regional  or  multilateral  conflict-resolution  efforts, 
including participation as appropriate in civil and military peace-keeping missions 

–  possibility of alignment with CFSP Declarations offered to all ENP partners 

–  informal high-level ENP meeting in 2007 

–  intensified parliamentary cooperation 

–  strengthening of EU diplomatic presence in all ENP partners 

3.6. 

Enhancing regional cooperation 

In the Black Sea region, where Moldova, Ukraine and the countries of the Southern Caucasus 
come together with the EU and with Russia and Turkey, the ENP also offers great potential 
for dialogue and cooperation at regional level. From January 2007, when the Black Sea will 
form  one  of  the  borders  of  the  Union,  a  strengthened  regional  approach  will  become  an 
essential  part  of  our  neighbourhood  policy.  In  our  cooperation  at  regional  level  with  the 
partner countries around the Black Sea (whether under the ENP, or in the case of our relations 
with Russia under the Strategic Partnership and with Turkey as a candidate country), the EU 
should  be  fully  inclusive,  whatever  the  formal  context  of  its  bilateral  relations  with  these 
countries.  Concrete  sectoral  issues  could  be  addressed  through  relevant  initiatives  e.g. 
mutually beneficial scientific cooperation underpinned by policy dialogue; or fora such as the 
International Commission for the Protection of the Black Sea.  

Enhanced  cooperation  in  the  Black  Sea  region  –  a  “Black  Sea  Synergy”  –  can  also  help  to 
prepare the ground for overcoming long-standing regional conflicts. The Black Sea Economic 
Cooperation  Organisation  (BSEC)  provides  a  useful  platform  for  our  dialogue  and 
cooperation  with  the  region  as  a  whole.  The  Commission  is  currently  examining  the 
possibility of establishing closer contacts with BSEC, including observer status. In addition, 

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and  building  on  these  closer  contacts,  it  will  be  useful  to  establish  a  regular  dialogue  with 
BSEC  at  Foreign  Minister  level,  which  would  help  implement  and  develop  further  the 
Union’s  Black  Sea  regional  policy.  Back-to-back  with  these  BSEC  meetings,  it  would  be 
useful  to  have  gatherings  between  ministers  of  EU  and  Eastern  ENP  countries  for  political 
dialogue  and  discussions  on  ENP-related  matters.  The  Commission  intends  to  address  the 
question of strengthened Black Sea dialogue further in a separate Communication next year. 
The “Black Sea Synergy” should take account of other regional initiatives, such as the Baku 
Initiative in the transport and energy fields. 

Around  the  Mediterranean,  the  ENP  provides  a  new  and  important  complement  to  the 
longstanding  regional  dialogue  and  integration  carried  forward  in  the  context  of  the  Euro-
Mediterranean Partnership. The Euro-Mediterranean Partnership has allowed the EU and  its 
Southern  neighbours  to  build  bridges  of  dialogue  and  cooperation,  at  regional  level,  in  the 
political, economic, commercial, social and cultural fields. The Five-Year Work Programme 
agreed  at  the  2005  Barcelona  Summit,  building  on  the  ENP  agenda,  has  already  set  a  clear 
path for strengthened regional cooperation in the coming years. 

Building  on  the  Euro-Mediterranean  Partnership  and  the  Association  Agreements  now  in 
place with most Mediterranean partners, the ENP has given a real opportunity to strengthen 
the  different 
our  relations  with  our  Mediterranean  partners,  acknowledging  fully 
circumstances and interests of the partner countries. The jointly-agreed reform commitments 
set out in each of the five Action Plans currently in force (Israel, Jordan, Morocco, Palestinian 
Authority, Tunisia) have already borne fruit, as indicated in the respective Progress Reports. 
In  particular,  these  Action  Plans  have  set  clear  shared  priorities,  allowed  us  to  integrate 
diverse topics in a  unitary dialogue, and enabled real progress  even in sensitive areas. With 
the Action Plans with Egypt and Lebanon now being finalised, the bilateral aspect of Euro-
Mediterranean relations will be on a par with the regional aspect. Furthermore, synergies to 
support economic reforms and sustainable growth in the Mediterranean could be sought with 
other economic areas, such as the Gulf Cooperation Council, where resources and investment 
can be jointly mobilised for this purpose. 

Both around the Mediterranean and the Black Sea, the greater flexibility offered by the new 
cooperation  instruments  will  be  of  great  importance.  For  example,  the  new  cross-border 
cooperation programmes being established under the ENPI will for the first time offer a real 
possibility of promoting grass-roots cooperation among local and regional authorities, on both 
sides of the these Seas, and addressing issues of common concern – such as the environment, 
transport  and  communications,  maritime  safety,  the  marine  environment,  regional  economic 
development, tourism, and socio-cultural exchanges.  

We  should  also  look  beyond  the  Union’s  immediate  neighbourhood,  to  work  with  “the 
neighbours  of  our  neighbours”.  In  Central  Asia,  for  example,  or  in  the  Gulf,  the  new 
instruments  (both  ENPI  and  DCI)  will  be  able  to  fund  regional  cooperation  activities 
including countries in both regions – this could be of particular importance in sectors such as 
energy,  transport,  environment  and  research  policy.  More  generally,  private  and  public 
investment  and  funding,  to  sustain  the  development  and  modernisation  needs  of  our 
immediate neighbours, could be attracted. Similar considerations also apply beyond the North 
African  ENP  countries,  in  the  context  of  the  EU-Africa  Strategy,  where  broader  regional 
cooperation  programmes  and  cooperation  in  areas  like  migration,  infrastructure,  energy  and 
peace  and  security  will  be  of  great  interest.  Looking  beyond  such  regional  cooperation 
activities, consideration might also be given to building a comparable agenda for dialogue and 

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reform  with  Kazakhstan,  in  response  to  their  expressed  interest.  Central  Asia  will  be 
addressed in a forthcoming policy document. 

Action points: Regional cooperation 

–  Black  Sea  Synergy,  including  Foreign  Ministers  dialogue  and  intensified 
cooperation  with  BSEC,  taking  account  of existing  regional  cooperation  such  as 
the Baku Initiative on energy and transport  

–  full implementation of the Euro-Mediterranean Work Programme 

–  strengthened cooperation with “the neighbours of our neighbours”, e.g. on energy, 

transport, the fight against illegal immigration 

3.7. 

Strengthening financial cooperation 

From 2007, our cooperation with neighbouring countries will be funded under the European 
Neighbourhood and Partnership Instrument (ENPI), together with the new lending mandate of 
the  European  Investment  Bank.  Both  will  represent  a  significant  improvement  on  what  has 
gone  before.  The  ENPI,  for  example,  will  be  considerably  more  flexible  than  previous 
instruments  (particularly  so  in  comparison  with  TACIS),  and  will  represent  an  increase  in 
resources  over  what  was  previously  available (an  increase  of  some  32%,  in  constant  prices, 
comparing 2007-13 with 2000-06). Other new cooperation instruments (human rights, nuclear 
safety, as well as thematic programmes) will also be available for ENP partners. The new EIB 
mandate  should  bring  increased  support  for  Eastern  Europe  and  the  Southern  Caucasus, 
although likely to be significantly less than that originally proposed by the Commission. 

The  funding  available  to  support  the  ENP  reform  agenda  will  still  be  relatively  modest, 
notwithstanding the ENP’s ambition to address a very comprehensive reform agenda. Private 
investment  flows  to  most  countries  of  the  region  also  remain  disappointingly  low,  as  does 
their capacity to finance crucial infrastructure.  

It  is  therefore  essential  to  maximise  the  impact  and  leverage  of  EU  funding  –  being  more 
innovative  in  the  type  of  actions  supported,  seeking  synergies  between  ENPI  and  other  EU 
funds  as  well  as  with  Member  States  and  their  financing  institutions,  with  IFIs  and  other 
donors.  

In  order  to  reward  progress  in  implementing  reforms  and  to  leverage  financial  assistance 
available for investment from IFIs and other donors, the Commission intends to introduce two 
innovative financing mechanisms, with a significant part of ENPI funding being set aside to 
support governance and investment facilities. Detailed proposals will be presented during the 
programming exercise, but in principle, over the period 2007-13, the Commission intends to 
set aside: 

–  An  amount  of  € 300m  (some  € 43m  per  year,  on  average)  for  a  Governance  Facility, 
intended  to  provide  additional  support,  on  top  of  the  normal  country  allocations,  to 
acknowledge  and  support  the  work  of  those  partner  countries  who  have  made  most 
progress  in  implementing  the  agreed  reform  agenda  set  out  in  their  Action  Plan.  In  line 
with  an  assessment  of  progress  made  in  implementing  the  (broadly-defined)  governance 
aspects  of  the  Action  Plans,  this  funding  would  be  made  available  to  top-up  national 

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allocations,  to  support  key  elements  of  the  reform  agenda;  this  will  help  reformist 
governments to strengthen their domestic constituencies for reform. 

–  An  amount  of  € 700m  (some  € 100m  per  year,  on  average)  for  a  Neighbourhood 
Investment  Fund,  building  on  the  FEMIP2,  to  be  used  to  support  IFI  lending  in  ENP 
partner  countries.  This  fund  would  provide  grant  support  for  lending  operations  by 
institutions such as EIB (in the context of its new external lending mandate), EBRD and 
possibly  Member-State  development-finance  institutions,  in  line  with  established  EU 
priorities. It is estimated that such a fund could leverage as much as four to five times the 
amount of grant funding dedicated to it in concessional lending for investment projects in 
ENP  partner  countries,  in  priority  sectors  as  identified  in  the  Action  Plans.  Concrete 
support from Member States, adding their own grant funding to the EC contribution to the 
Trust  Fund,  will  be  highly  desirable  in  reflecting  the  Union’s  political  backing  for  an 
enhanced  ENP.  If  Member  States  were  to  match  the  EC  contribution,  the  Facility  could 
generate very substantial amounts of concessional lending. The governance of such a Trust 
Fund could involve all contributors in accordance with their contribution and the degree of 
coordination of their policies towards the region with the ENP. Coordination between the 
Neighbourhood  Investment  Fund  and  the  EU-Africa  Infrastructure  Trust  Fund  will  allow 
coherence and synergy. 

In  keeping  with  ongoing  efforts  to  enhance  coordination  among  EU  donors  as  a  group, 
Member  States  should  increasingly  align  their  own  cooperation  programmes  on  the  agreed 
priorities  and  reform  agendas  established  in  the  ENP  Action  Plans.  Continued  coordination 
with World Bank activities should also be ensured. 

Action points: Financial cooperation 

–  maximising impact and leverage of scarce resources 

–  Governance Facility 

–  Neighbourhood Investment Fund 

improved coordination between Member State and EC assistance 

4. 

CONCLUSIONS 

In the two years since its inception, the progress achieved under the ENP has confirmed the 
great potential of this long-term policy. We need now to turn this potential into a reality by 
enhancing the credibility and impact of the policy.  

The ENP remains distinct from the process of EU enlargement. For European ENP partners, 
the ENP does not in any way prejudge the possible future development of their relationship 
with the EU, in accordance with Treaty provisions. Independently of such a perspective, we 
must  work  towards  successful  implementation  of  agreed  reform  agendas  to  bring  all  of  our 
neighbours closer to the Union. 

2 

Facility for Euro-Mediterranean Investment and Partnership. 

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To  support  our  neighbours  in  pursuing  demanding  and  costly  reform  agendas,  we  must  be 
able to present a more attractive offer on our side. We can do more in relation to economic 
and  commercial  issues,  to  visa-facilitation  and  migration  management  to  people-to-people 
contacts and contacts among administrators and regulators. More on political cooperation and 
regional  cooperation,  and  more  on  financial  cooperation.  Some  of  these  actions  will  have  a 
certain  cost,  but  this  cost  is  not  prohibitive  -  and  is  certainly  much  less  than  the  cost  of 
inaction.  

To achieve this, Member States will need to play their part – the enhancements proposed here 
will  require  both  full  political  commitment  and  a  commensurate  economic  and  financial 
commitment.  The  Commission  is  also  taking  the  necessary  measures  to  ensure  that  ENP 
policy considerations are fully integrated into all aspects of  its own work. The Commission 
looks  forward  to  discussing  these  ideas  further  with  Council  and  Parliament.  At  the  same 
time, it will be important to pursue an open dialogue with our partner countries, in order to 
enhance the mutual ownership of the ENP. The Commission intends to organise a high-level 
conference to this effect in 2007. 

As is shown in the Progress Reports, our partner countries have already confirmed their own 
commitment,  through  the  adoption  and  initial  implementation  of  the  ambitious  ENP  Action 
Plans.  For  the  Union  to  be  able  to  support  them  adequately  in  their  reform  processes,  to 
encourage and reward progress, it will be imperative to ensure that the potential of the ENP is 
matched by its reality. The proposals set out above will represent a robust offer to our ENP 
partners, which is clearly in the Union’s interest. 

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