Taking stock of the European Neighbourhood Policy {SEC(2010) 513 final} {SEC(2010) 514 final} {SEC(2010) 515 final} {SEC(2010) 516 final} {SEC(2010) 517 final} {SEC(2010) 518 final} {SEC(2010) 519 final} {SEC(2010) 520 final} {SEC(2010) 521 final} {SEC(2010) 522 final} {SEC(2010) 523 final} {SEC(2010) 524 final} {SEC(2010) 525 final}
Date: 2010-05-04
Institutions: European Commission
Subjects: European neighbourhood policy, democracy, economic integration, energy policy, environmental protection, geographical mobility, human rights, legal system, political cooperation, settlement of disputes

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EUROPEAN COMMISSION 

Brussels, 12.5.2010 
COM(2010) 207 final 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Taking stock of the European Neighbourhood Policy 

{SEC(2010) 513 final} 
{SEC(2010) 514 final} 
{SEC(2010) 515 final} 
{SEC(2010) 516 final} 
{SEC(2010) 517 final} 
{SEC(2010) 518 final} 
{SEC(2010) 519 final} 
{SEC(2010) 520 final} 
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COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Taking stock of the European Neighbourhood Policy 

1. 

INTRODUCTION 

The European Neighbourhood Policy (ENP) has transformed relations between the EU and its 
neighbours1.  Since  its  launch  in  2004,  political  contacts  have  increased  in  profile  and 
intensity. Trade has increased at double digit rates, aided by a steady process of liberalisation 
and regulatory convergence. EU assistance has been tailored to partners’ reform needs and its 
volume in the current Financial Framework has increased by 32 %.  

However,  much  remains  to  be  done  if  the  ENP’s  goals  of  shared  stability,  security  and 
prosperity are to be achieved. The Lisbon Treaty recognises this by committing the EU to the 
development of a special  relationship with neighbouring countries aiming at  establishing an 
area of prosperity and good neighbourliness (Art. 8 TEU). The policy will also benefit from 
greater consistency, coherence and coordination of the Union’s external policy brought about 
by  the  appointment  of  the  High  Representative/Vice-President  and  establishment  of  the 
European External Action Service, as well as from the appointment of a Commissioner with a 
specific regional mandate allowing him to devote extra attention to the ENP and the countries 
it covers.  

Against this background, the Commission, at the outset of this new term, considered it useful 
to take stock of the progress achieved since the launch of the policy. The analysis presented 
here  will  serve  to  guide  the  further  development  of  the  ENP,  to  make  best  use  of  the  new 
possibilities opened by the Lisbon Treaty and to optimize the ENP’s contribution to the EU’s 
longer-term objectives, including the 2020 agenda.  

The Staff Working Documents annexed to this Communication report in more detail about the 
implementation of the ENP with each partner in 2009. 

2. 

ENP BILATERAL COOPERATION 2004-2009 

The ENP aims to deepen political dialogue and cooperation with each of the neighbours and 
to achieve a very substantial degree of economic integration with them. It is a partnership for 
reform  that  offers  “more  for  more”:  the  more  deeply  a  partner  engages  with  the  Union,  the 
more fully the Union can respond. 

Reflecting this dynamic, there has been an on-going strengthening of contractual relations. 
Association Agreements (AAs) were concluded with most southern partners by 2004. An AA 
with  Syria  is  ready  for  signature.  In  the  East,  in  line  with  the  objectives  of  the  Eastern 

1 

Algeria,  Armenia,  Azerbaijan,  Belarus,  Egypt,  Georgia,  Israel,  Jordan,  Lebanon,  Libya,  Republic  of 
Moldova (hereafter “Moldova”), Morocco, Palestinian Authority, Syria, Tunisia and Ukraine.  

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Partnership (EaP)2 which created a specific eastern dimension to the ENP, the Partnership and 
Cooperation Agreements of the 1990’s are being replaced by much more ambitious AAs.  

By early 2007, twelve partners had agreed ENP Action Plans with the EU to help them steer 
their reforms. As the first generation of ENP Action Plans expires, work is ongoing to prepare 
successor plans, building on the experience acquired.  

Through  this  framework,  the  EU  is  gradually  building  a  deeper  relationship  with  its 
neighbours  than  ever  attempted  before.  A  dense  network  of  nearly  100  sub-committees 
permits  regular  and  intense  exchanges  on  all  issues  of  common  interest,  ranging  from 
governance  and  democracy  to  transport  and  health  sector  reform,  and  contributing  to 
increased  confidence  and  reciprocal  knowledge.  The  success  of  this  approach  has  also 
prompted  several  southern  partners  (Morocco,  Israel,  Jordan,  Egypt,  Tunisia  and  the 
Palestinian Authority) to seek further enhancement of bilateral relations. 

2.1. 

Improving governance and addressing protracted conflicts 

The ENP expresses the joint commitment of the EU and its partners to the shared values of 
democracy,  rule  of  law  and  human  rights  and  the  EU’s  full  support  to  the  democratisation 
efforts  undertaken  by  its  neighbours.  ENP  cooperation  takes  place  in  a  difficult  political 
context,  including  protracted  conflicts,  and  achievements  vary  from  country  to  country. 
Progress  in  this  area  remains  essential  for  partner  countries’  long-term  stability  and 
prosperity.  

Whereas accession to human rights and fundamental freedoms conventions and protocols 
moved forward, their implementation raises concerns. There has been progress, for example 
on the protection of the rights of women, with the criminalisation of female genital mutilation 
in Egypt, increased participation of women in political life in Morocco and Jordan and some 
first  actions  in  relation  to  “honour  crimes”,  notably  in  Lebanon  and  Jordan.  In  Ukraine,  an 
important step towards increased media freedom was the abolition of the practice of issuing 
‘temniki’ (instructions by the authorities on what to report). However, advances in the fight 
against torture are insufficient. Serious problems also persist in many countries as regards the 
respect  for  freedom  of  expression,  particularly  in  the  media,  freedom  of  association  and 
freedom of assembly. The space for civil society actors and human rights defenders remains 
unduly  limited.  The  death  penalty  still  exists  in  Algeria, Belarus,  Egypt,  Israel,  Jordan, 
Lebanon,  Libya,  Morocco,  the  occupied  Palestinian  territory,  Syria  and  Tunisia  and  is 
regularly applied in Belarus, Egypt, Libya and Syria. Regarding asylum-seekers and refugees, 
most ENP countries do not provide adequate assistance and protection3. Some of them have 
not yet adhered to the 1951 Convention on refugees, nor to its 1967 Protocol, and others have 
not yet established the legal framework required for its implementation.  

In  many  countries  neither  the  legislative  framework  for  elections  nor  their  conduct  comply 
with international standards. By contrast, the recent presidential elections in Ukraine and the 
2nd round of parliamentary elections in Moldova were free and fair. Some electoral legislation 
passed  in  recent  years  improved  the  quality  of  elections,  notably  in  Morocco  and  Lebanon. 
Lebanon, together with the occupied Palestinian territory, also benefitted from EU electoral 

2 
3 

Joint Declaration of the Prague Eastern Partnership Summit, Prague, 7 May 2009. 
The EU has continued to support asylum capacitycapacities in the ENP countries including in the form 
of Regional Protection Programmes (Ukraine, Moldova). 

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assistance  and  EU  Electoral  Observation  Missions  –  the  only  such  cases  in  the  Southern 
Neighbourhood.  

Significant  investments  to  enhance  the  capacity  and  efficiency  of  the judiciary  were  made, 
but judicial independence, effectiveness and impartiality are still a matter of concern in most 
countries.  The  reform  of  public  administration  remains  one  of  the  significant  unmet 
challenges for partner countries.  

All  partners  with  Action  Plans  have  completed  ratification  of  the  2005  UN  Convention 
against  Corruption,  but  corruption  perception  indicators  show  an  overall  change  for  the 
worse over the period.  

(cid:198) The need to encourage good governance remains pressing, both as a goal in itself, and 
because  it  ultimately  underpins  political  stability  and  economic  growth.  Progress  on 
political  reform  will  be  a  core  element  for  the  development  of  enhanced  relations  with  the 
partners.  

The EU Border Assistance Mission to Ukraine and Moldova (EUBAM), established in 2005, 
illustrates  the  potential  of  the  ENP  to  contribute  to  conflict  prevention  and  resolution. 
EUBAM  aims  to  bring  transparency  at  the  Ukrainian-Moldovan  border  and  to  foster  a 
business  environment 
in 
Transnistria, the advantages of working on the basis of Moldovan legislation to benefit from 
international (and EU) trade preferences. It thus works around the conflict to generate mutual 
confidence and understanding.  

to  economic  operators, 

that  demonstrates 

including 

those 

On Georgia, the EU has been providing strong political, technical and financial support in an 
effort to alleviate the needs arising from the conflict in 2008 and also with a view to peaceful 
resolution  of  conflicts  within  Georgia’s  borders.  The  EU  provided  substantial  post-conflict 
support  to  Georgia,  including  a  post-conflict  assistance  package  of  up  to  EUR  500  million. 
The EU has also been taking an active role as a co-chair, together with the UN and the OSCE, 
of the “Geneva talks”, which is the only platform allowing for an on-going political conflict 
resolution  process.  An  EU  civilian  monitoring  mission  (EUMM)  was  set  up  to  monitor  and 
analyse the stabilisation process. 

(cid:198) The unresolved conflicts in the Neighbourhood continue to hinder the development of 
partner  countries  and  can  pose  risks  to  the  EU’s  own  security.  The  Lisbon  Treaty  now 
opens up new possibilities for more integrated EU efforts at conflict prevention and resolution 
making use of all relevant instruments.  

2.2. 

Promoting mobility 

Contacts  between  people  across  borders  promote  mutual  understanding  as  well  as  business 
and  cultural  ties.  They  are  crucial  for  any  meaningful  engagement  of  the  EU  with  its 
neighbours. The Commission is committed to improved mobility and contacts between people 
across  its  Neighbourhood.  This  can  and  must  be  done  in  ways  that  also  improve  security, 
enhancing  legal  and  regular  mobility  of  bona  fide  travellers  and  ensuring  tighter  control  on 
those who could exploit mobility for criminal purposes. 

All together  2.09 million EU  Schengen visas were issued in our Neighbourhood in 2008. If 
one  considers  only  the  thirteen  EU  Member  States  that  were  part  of  the  Schengen  area  in 
2004, the number of visas was 1.3 million, up 13% from 1.15 million in 2004, in line with the 

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world-wide trend. However, citizens from the eastern neighbours did not need a visa to enter 
the eastern Member States before their respective accessions in 2004 and 2007.The number of 
visitors from the eastern neighbours to the EU actually decreased after that year.  

The  EU  has  already  taken  concrete  steps  to  make  it  easier,  cheaper  and  faster  for  our 
neighbours to enter the EU. Agreements on visa facilitation with Ukraine and Moldova have 
resulted  in  visa  fee  reduction  or  waivers  for  over  one  third  of  applicantsapplacants  while 
readmission agreements have helped to tackle irregular migration and fully ensure the security 
of  the  EU  and  of  its  partners.  Negotiations  for  such  an  agreement  with  Georgia  have  been 
concluded. Other measures (Mobility Partnerships) have also been agreed with Georgia and 
Moldova to promote legal migration, to facilitate legitimate cross-border travel, fight irregular 
migration and harness the positive impact of migration for the economic development of the 
EU’s partners. 

In addition, the EaP has opened the prospect of short stay visa liberalisation as a long-term 
goal  for  the  EaP  partners,  provided  conditions  for  secure  and  well-managed  mobility  are  in 
place.  A  dedicated,  structured  dialogue  on  visa  liberalisation  is  already  underway  with 
Ukraine and another is set to start with Moldova.  

In  its  reports  the  Commission  has  repeatedly  highlighted  the  need  for  the  EU  to  facilitate 
legitimate short term travel also with EU southern partners. Regrettably this has not advanced 
significantly.  

The  Commission  attaches  particular  importance  to  the  mobility  of  students,  researchers  and 
academics.  The  Erasmus  Mundus  programme  supports  higher  education  reforms  and 
greater institutional links with the EU, and has had an excellent uptake in the ENP region. In 
2007-2009,  thanks  to  Erasmus  Mundus  grants, over  3,250  students  and  academics  from 
partner  countries  could  pursue  studies  in  EU  universities  for  up  to three  years. 474  students 
and academics from the EU benefited from similar periods of study in universities in partner 
countries.  Furthermore,  Marie  Curie  Actions  provide  mobility  and  career  development 
opportunities for researchers from Europe and neighbouring countries.  

More  generally,  given  that  mobility  is  also  hampered  by  factors  other  than  the  visa  regime, 
there  may  be  scope  for  further  dialogue  and  co-operation  on  other  measures  such  as 
recognition of academic and professional qualifications or portability of rights. 

(cid:198)  Mobility  of  persons  is  progressing  but  could  be  improved/stepped  up.  Visitors  from 
our Neighbourhood go through cumbersome and lengthy procedures when applying for visas 
to  visit  the  EU.  These  are  expected  to  be  addressed  by  the  new  Visa  Code  applicable  since 
April 2010. The Commission wants, moreover, to improve further the mobility of bona fide 
business  people,  tourists,  students  and  academics  and  intends  to  propose  the  following 
measures: 

•  Roadmaps to a visa-free regime for short stays with Ukraine, with which the EU already 
carries out a visa dialogue, and Moldova, with which such a dialogue is set to start soon. 
Progress will depend on fulfilment of all the necessary conditions. 

•  Visa facilitation and readmission agreements with the eastern partners that do not yet 

have such agreements, namely Armenia, Azerbaijan and Belarus. 

•  Visa  facilitation  agreements  with  our  southern  partners  too,  provided  there  is  also 

progress in migration management including readmission agreements  

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•  Practical measures based on the EU Visa Code to improve EU visa delivery and consular 
coverage  in  the  EaP  area.  If  successful,  these  measures  would  then  be  extended  to  the 
whole Neighbourhood. 

•  Further  dialogue  on  measures  to  facilitate  EU  labour  market  access  to  ENP  countries’ 
nationals, including improving information on the existing legal channels for migration and 
mobility as well as of available job opportunities and necessary labour market skills. 

2.3. 

Advancing economic integration 

The EU offers economic integration with its Internal Market, reflecting a long term strategic 
vision  of  easily  traded  products  and  services,  simple  establishment  of  companies,  increased 
foreign  direct  investment  in  the  partner  countries  and  a  high  level  of  social,  consumer  and 
environmental protection. 

This  offer  is  embodied  in  the  Commission’s  strategy  for  the  establishment  of  Deep  and 
Comprehensive  Free  Trade  Areas  (DCFTAs).  Going  beyond  a  simple  tariff  dismantling, 
they  also  cover  market  access  in  services,  investment,  public  procurement  and  many  other 
sectors, choosing approximation to EU law in areas where this can lead to increased trade. All 
partners with Action Plans have subscribed to this approach. 

The  ENP  does  not  seek  to  export  the  EU  acquis  wholesale.  However,  with  only  a  few 
regulatory  models  in  a  globalised  world,  the  EU  model  tends  to  be  attractive  to  partners, 
reducing  the  ‘invention  costs’  of  political  and  economic  costs  of  reform.  Thus  many  partners 
have  adopted  a  broad-ranged  approach  to  convergence  with  EU  policies  and  regulatory 
standards.  

Trade, market access and regulatory alignment  

The EU’s trade with the ENP region grew during the period 2004-08, with EU exports rising 
by  63%  and  imports  by  91%.  Energy  products  represent  a  large  component  of  the  latter. 
However, even excluding these, imports from the ENP region grew by 31%. As a proportion 
of the EU’s world trade, exports to the ENP region grew from 5.7% to 6.7% and imports from 
the region grew from 5.4% to 6.9%, reflecting a steadily advancing economic integration.  

Trade  with  the  eastern  partners  evolved  in  a  particularly  dynamic  manner,  albeit  from  a 
relatively low starting point: the region’s share of EU exports nearly doubled from 1.26% to 
2.1%, and its share of EU imports grew from 0.8% to 1.4%. The economic downturn hit the 
eastern partners very hard, and this also led to a contraction of trade with the partners in 2009. 

Preliminary  steps  tailored  to  the  needs  of  the  different  partners  have  been  taken  towards 
deeper  economic  integration.  These  include  the  introduction  of  Autonomous  Trade 
Preferences (Moldova), which provide for duty and quota free access to the EU markets for all 
products (except for certain agricultural products for which some concessions are nevertheless 
given), and the negotiation of a number of sectoral agreements, such as agreements on trade in 
agricultural,  processed  agricultural  and  fishery  products  (Egypt,  Israel,  Morocco)  or 
Agreements  on  Conformity  Assessment  and  Acceptance  of  Industrial  Products  (ACAAs) 
which  aim  at  the  recognition  of  equivalence  in  technical  regulations,  standardisation  and 
conformity  assessment  in  selected  sectors  (one  agreement  has  been  concluded  with  Israel, 
while Egypt and Tunisia are actively preparing for negotiations). For example, the achieved 
level of full liberalisation of processed agricultural products in bilateral trade between the EU 

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and Israel is as high as 95%, and for the remaining 5% some additional preferences have been 
exchanged.  Negotiations  for  the  liberalisation  of  services  and  the  right  of  establishment  are 
also ongoing (Morocco, Tunisia, Israel and Egypt). Since 2008, a complete free trade regime 
on industrial products is achieved with Tunisia. 

Negotiations  on  the  first  DCFTA  are  already  ongoing  with  Ukraine  and  preparations  are 
underway to allow for opening negotiations with Moldova, Georgia and Armenia. 

The results brought by this process of integration include: 

•  The  customs  administrations  of  the  partner  countries  made  efforts  to  strengthen  their 
operational  capacities  through  plans  that  introduce  modern  customs  techniques,  such  as 
risk management, post clearance controls, the concept of “authorised economic operators” 
(AEO) and the single window approach.  

•  Partner  countries  have  been  quick  to  adopt  the  EU  regulatory  model  for  electronic 
communications  in  order  to  stimulate  growth  and  develop  knowledge-based  economies. 
The ENP has supported partner governments willing to open their market, and promoting a 
market-oriented  behaviour  by  incumbent  operators.  Steps  such  as  the  opening  of  the 
market  for  fixed  telephony  and  for  advanced  services  such  as  Internet,  as  well  as  the 
tendering of additional mobile licenses have been taken, in order to align with the EU, one 
of  the  most  competitive  markets  in  the  world.  In  the  case  of  Egypt,  the  ICT  sector  is 
expected  to  contribute  to  exports  growth  from  EUR  175  million  in  2005  to  EUR  770 
million  in  2010  and  also  significantly  contribute  to  job  creation.  The  increasing  use  of 
information  and  communication  technologies  is  an  important  factor  contributing  to  the 
democratization of societies. 

•  The implementation of common aviation area with the neighbouring countries is a key 
dimension  of  EU 's  external  aviation  policy,  with  the  ultimate  objective  of  a  single  air 
transport  market covering up  to  60  countries and  1  billion  people. In  2006,  a  Euro-
Mediterranean Aviation Agreement was signed with Morocco. The year after, the number 
of air passengers carried between Morocco and the EU jumped by 17% (compared with an 
increase in air traffic worldwide of 6%), with the emergence of 52 new routes and the entry 
of  12  new  airlines  on  the  market.  Similar  agreements  have  been  initialled  with  Georgia 
and Jordan, while negotiations are taking place with Israel, Lebanon, Tunisia and Ukraine, 
and  a  mandate  has  been  given  for  negotiations  with  Algeria. Such  agreements  not  only 
have  a  positive  impact  on  traffic  and economic  growth  but  also  are essential  tools  for 
promoting  the  highest  standards  achieved  by  the  EU  in  terms  of  safety,  security  and  air 
traffic management. The Commission’s approach will be detailed in an initiative on EU air 
transport external policy by end 2010.  

(cid:198)  Market  opening  has  benefited  both  the  EU  and  partners.  The  opening  of  markets  in 
sectors  where  partners  have  a  competitive  advantage  is  essential  for  their  economies.  Trade 
liberalisation and the establishment of DCFTAs will be pursued. 

(cid:198)  The  EU  and  partners  can  capitalise  on  the  attractiveness  of  a  shared  regulatory 
environment. As the economic space in which EU norms and standards are used expands, the 
world-wide  acceptance  of  the  EU  regulatory  model  is  promoted.  This  can  give  EU  and 
partners’ economic operators a competitive advantage: they already produce for the wider EU 
market,  and  the  more  the  EU  norms  and  standards  are  accepted  the  more  their  access  to 
foreign  markets  is  facilitated.  The  fact  that  the  crisis  has  not  led  to  a  reversal  of  economic 

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reforms  reflects  the  resilience  of  the  transition  process  on  which  we  are  building  our 
neighbours’ prosperity as well as our own.  

Boosting the business environment 

The  ENP  supports  economic  reforms  for  a  better  business  and  investment  climate.  In  the 
South,  the  main  tool  for  business  reforms  is  the  Euro-Mediterranean  Charter  for  Enterprise, 
adopted in 2004. The Charter is inspired by best-practice from the EU and has been adopted 
by  partner  countries  as  a  reference  for  their  reform  agendas.  In  view  of  the  success  of  this 
approach, it is planned to integrate key features of the European Union’s Small Business Act 
(SBA) into the Charter. There are also plans to initiate a similar process in the context of the 
EaP.  

The  monitoring  of  the  Charter’s  implementation  and  various  surveys,  such  as  the  World 
Bank’s ‘Doing Business’ report, show good progress in improving the business climate in the 
ENP  region.  For  example,  the  time  needed  for  the  registration  of  companies  is  now  down 
from 79 days in 2004 to 13 days in 2010 in Jordan. 

(cid:206) More needs to be done to promote a business and investment friendly environment. 
In particular, partners need to continue to improve the regulatory environment for businesses, 
to  fight  corruption,  to  encourage  entrepreneurship  and  innovation,  to  upgrade  skills  and  to 
improve access to finance for small and medium-sized enterprises (SMEs), which are engines 
of economic growth.  

Towards an ENP social agenda 

The principle of addressing a wide range of social policy issues as part of the ENP has been 
endorsed by the partners, reflecting the understanding that social cohesion is conducive to a 
better  business  climate  and  necessary  to  legitimise  and  sustain  reforms.  The  Action  Plans 
contain provisions in fields such as employment policy, social dialogue, labour rights, social 
inclusion,  social  protection,  gender  equality  and  equal  treatment  for  all.  This  represents  a 
comprehensive social agenda with clearly-defined priorities and timeframes which, however, 
remains  to  be  fully  implemented.  For  example,  there  has  been  progress  on  legislation  to 
promote  decent  work  and  pension  reform,  but  advances  on  employment  policy,  trade  union 
rights, social dialogue or equal opportunities are uneven. 

(cid:206)  The  success  of  these  socio-economic  reforms  in  shaping  a  fully  shared  ENP  social 
agenda  requires  that  partners  sustain  this  political  commitment  and  allocate  sufficient 
administrative and human resources for the implementation of necessary reforms.  

2.4. 

A shared responsibility for the environment 

Protecting the environment is a shared responsibility for the EU and the partners, and joint 
efforts  are  needed  to  successfully  address  concerns.  Partner  countries  are  aware  of  the 
challenges  but,  despite  the  compelling  economic  arguments  in  favour  of  strong  action  on 
environment in order to avoid much higher future clean-up costs, their allocated resources are 
not  sufficient.  While  numerous 
international  commitments  and  processes  exist, 
implementation  often  lags  behind.  A  key  objective  of  the  ENP  is  therefore  to  work  with 
partners  to  achieve  better  strategic  planning,  prioritisation  and  stronger  administrative 
capacity.  

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Progress has varied from country to country. Examples of good progress include the reform of 
the  environment  administration  in  Jordan,  cooperation  within  the  Regional  Environmental 
Centre  for  the  Caucasus,  the  Horizon  2020  Initiative  and  a  draft  environment  strategy  in 
Ukraine.  

Many partners are showing a growing interest in EU experience, and are today increasingly 
willing to converge with EU environment directives. Regulatory convergence should continue 
to  be  at  the  core  of  the  ENP  as  well  as  cooperation  on  environmental  governance.  In  the 
context  of  the  Europe 2020  strategy,  the  EU  aims  to  move  towards  a  more  sustainable  and 
resource-efficient economy, an area where the EU and partners can beneficially cooperate. In 
addition,  stronger  cooperation  is  urgently  needed  on  biodiversity  conservationconsevation 
including to raise awareness of the economic benefits derived from ecosystem services and, 
conversely, of the costs of losing them. 

Partners have also expressed a desire to work with the European Environment Agency (EEA) 
and the ENP has offered this possibility. Using EU financial assistance, the EEA is assisting 
partners  to  strengthen  collection  and  management  of  environmental  data.  The  ENP  has  also 
contributed  to  greater  openness  and  accountability  in  environment  policy,  through  the 
involvement of NGOs. 

Another  aspect  that  could  be  further  developed  in  the  future  is  a  more  co-ordinated 
governance of maritime-related activities. Stronger co-operation would be useful not only on 
sustainable  management  of  fisheries  resources,  including  effective  control  of  fishing 
activities,  but  also  on  broader  issues  related  to  integrated  maritime  surveillance,  maritime 
spatial planning and other maritime policy matters including the professional qualification of 
seafarers.  The  EU  will  also  continue  to  support  ENP  partners  in  their  efforts  to  ratify  and 
implement the United Nations Convention on the Law of the Sea (UNCLOS). 

(cid:198) While tangible progress does not happen overnight in this complex area, it is essential 
to  build  on  these  results  in  order  to  raise  environmental  standards  across  the  region. 
Improved  environment  protection  through  continued  convergence  with  key  elements  of  EU 
legislation,  improved  environmental  governance,  higher  resource  efficiency  and  appropriate 
use of ecosystem services will underpin long-term sustainable development. 

2.5.  Working together to address climate change 

Addressing the issue of climate change is a priority for the entire global community. Partner 
countries are increasingly raising climate change in their dialogue with the EU, in view of the 
Copenhagen  Accord,  the  ongoing  negotiations  for  a  post-2012  agreement  and  the  EU 
leadership in this field. Through the ENP, the EU can support partners in the mainstreaming 
of climate considerations into their policies. While the partner  countries do  not rank among 
the largest greenhouse gas emitters, they have important potential to pursue further efforts of 
mitigation (e.g., through increased energy efficiency or promotion of sustainable transport) as 
well  as  adaptation  (e.g.,  in  the  fields  of  agriculture,  water  management  or  preparedness  to 
address natural hazards such as floods and drought).  

(cid:198)  The  Commission  will  continue  to  call  on  partners  that  have  not  yet  done  so  to 
associate  themselves  with  the  Copenhagen  Accord as  soon  as  possible  and  to  provide 
information  on  the  targets  and  actions  that  they  will  implement.  The  EU  remains  fully 
committed  to  the  UN  negotiating  process  with  a  view  to  concluding  a  robust  and  effective 

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legally  binding  international  agreement.  The  EU  is  prepared  to  deepen  dialogue  and 
cooperation activities on climate change mitigation and adaptation. 

2.6. 

Sustainable energy for citizens and industry  

The  EU  and  the  partners  share  the  interest  of  maintaining  stable,  secure  and  clean  energy 
supplies for their citizens and industry and to move towards low-carbon energy resources. The 
Commission’s 2007/2008 energy and climate change package set a bold framework to address 
energy  challenges  including  the  development  of  an  external  energy  policy.  The  gas  dispute 
between Ukraine and Russia in the winter of 2008/2009 highlighted the need to deal urgently 
with  energy  security.  The  Commission’s  2008  second  strategic  energy  review4  calls  for 
relations  to  be  stepped  up  with  partners,  which  are  important producer  and  transit  countries 
for the EU.  

In this context, partners took many steps to initiate sector reform and gradual alignment with 
EU  policy.  The  EU  signed  Energy  Memoranda  of  Understanding  or  Declarations  with 
Azerbaijan, Belarus, Egypt, Jordan, Morocco and Ukraine. 

Several  partners  revised  or  are  revising  their  energy  strategies,  with  a  new  focus  on  energy 
efficiency  and  renewable  energy.  Partners  took  steps  towards  gradual  convergence  with  the 
internal  energy  market  rules,  adopting  new  legislation,  strengthening  the  regulatory 
environment and progressively eliminating price distortions. In 2009, the Energy Community 
ministerial approved, under certain conditions, the accession of Moldova and Ukraine to the 
Energy Community Treaty. Georgia became an observer to this Community.  

The  EU  and  the  partners  have  cooperated  to  develop  energy  networks.  In  March  2009,  the 
Commission  held  an  international  conference  on  the  modernisation  of  Ukraine’s  gas  transit 
system. The EU also worked with partners towards the realisation of the Southern gas corridor, 
including Nabucco and the trans-Caspian transportation project. The EU supported Moldova 
and Ukraine in their plans for future interconnection to the electricity networks of continental 
Europe.  

In the Southern Neighbourhood, cooperation initiatives were focused on the development and 
integration  of  energy  markets,  including  the  development  of  South-South  and  North-South 
interconnections. The Mediterranean Solar Plan took shape with the elaboration of a strategy 
document  and  the  launching  of  several  pilot  initiatives  and  programmes  supported  by  the 
international financing institutions.  

In  the  Eastern  Partnership  context,  the  works  of  the  Platform  3  "energy  security"  was 
launched with a work programme 2009-2011.  

The EU and partners operating civil nuclear power plants (Armenia and Ukraine) continued 
cooperation  on  nuclear  safety  and  security.  The  EU  also  started  a  dialogue  on  these  issues 
with partners envisaging to build such plants. 

(cid:198) A strengthened energy cooperation of the past years is necessary to cope with the fast 
growing energy needs in the South and with the investments and reforms needs both in 

4 

An EU Energy security and solidarity action plan – COM (2008) 781 of 13 November 2008. 

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the  South  and  the  East.  In  particular,  energy  efficiency  and  the  promotion  of  renewable 
energy will be a key objective for our cooperation with ENP partners.  

2.7. 

Financial instruments responding to policy objectives 

The implementation of the ENP is supported by the European Neighbourhood and Partnership 
Instrument  (ENPI)  with  a  budget  of  some  EUR  11.5  billion  (2007-13).  After  a  mid-term 
review  of  ENPI  programming  documents,  country  allocations  better  reflect  the  needs,  the 
levels  of  ambition  and  progress  and  the  absorption  capacity  of  partners.  The  review  was 
conducted  in  cooperation  with  partner  countries  and  taking  into  account  the  result  of  an 
unprecedentedly  wide  consultative  process  involving  civil  society,  EU  Member  States  and 
other donors.  

The  policy  focus  of  financial  co-operation  has  been  further  strengthened.  Legislative 
approximation and regulatory convergence are being promoted through wider use of TAIEX 
and twinning. By the end of 2009 over 1000 TAIEX actions had been financed, 114 twinning 
covenants  had  been  established  and  110  more  were  being  prepared.  Comprehensive 
Institution Building programmes are being developed to build capacity in a limited number of 
core institutions that are central in preparing the ground for future AAs with EaP partners.  

•  In  early  2009,  the  EU  deployed  a  team  of  high-level  advisers  in  Armenia  to  support  the 
implementation  of  the  ENP  Action  Plan  (EUR  2.8  million).  The  advisers  provide  high-
level  technical  advice  to  design,  steer  and  implement  reforms  aimed  at  strengthening  the 
capacity  of  the  Presidency  and  the  legislative,  executive  and  judiciary  powers  with  a 
particular focus on democracy, good governance, rule of law and the market economy.  

•  Following an agreement reached in December 2009, the EU deployed a High Level Policy 
Advisory Mission to Moldova in April 2010. It will offer expertise to public institutions to 
help accelerate political association and further economic integration between the EU and 
Moldova. 

•  In  Tunisia  progress  towards  an  ACAA  has  been  supported  through  a  wide-ranging 
twinning  operation  (EUR  1.3  million)  focusing  on  harmonisation  of  legislation  and 
capacity-building  in  the  government  administration.  This  was  later  complemented  by  a 
larger  sector  support  operation  (EUR  23  million)  focused  on  quality  infrastructure  and 
support to enterprises.  

•  In Ukraine to support the implementation of the Memorandum of Understanding on energy 
cooperation,  two  sector  operations  have  been  initiated  in  the  areas  of  energy  policy  and 
energy  efficiency/renewables  (EUR  145  million).  They  were  supplemented  by  twinning 
operations on electricity and gas market regulation.  

•  In  the  Mediterranean,  Commission  support  for  Horizon  2020  of  over  EUR  13  million  is 
building capacity, developing monitoring systems and preparing green investment projects 
for EIB and other financial institutions.  

The  Neighbourhood  Investment  Facility  (NIF)  provides  grant  support  to  leverage  lending 
operations  in  partner  countries  by  the  EIB,  the  EBRD,  and  other  European  financial 
institutions. The EU Budget grant contribution amounted to EUR 185 million in 2007-09. In 
addition  Member  States  contributed  EUR  47  million  to  the  ‘NIF  Trust  Fund’.  These  funds 
contributed to leveraging loans for EUR 4.76 billion, for investments that will also contribute 

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to advance regional co-operation initiatives and to re-launch economic growth. In 2004-2009, 
grant funding of about EUR 90 million provided through the Euro-Mediterranean Facility for 
Investment and Partnership (FEMIP) contributed to leveraging EIB loans in excess of EUR 10 
billion. 

The mid-term review of the EIB’s external mandate for the period 2007-2013 highlighted the 
need  to  further  increase  policy  coherence  between  EU  policy  and  EIB  financing.  To  that 
effect  the  Commission  has  proposed5  that  EIB  guaranteed  financing  cover  three  high-level 
horizontal  objectives,  namely  climate  change,  social  and  economic  infrastructure,  and  local 
private sector development, including SMEs, and to establish regional operational guidelines. 
In the Neighbourhood, the Commission proposal broadens the scope of EIB financing, while 
the  guidelines  will  help  to  reinforce  the  policy  focus  of  EIB  activity  and  to  ensure 
complementarity with the corresponding EU assistance measures. The Commission has also 
proposed  to  allocate  additional  EUR  2  billion  under  the  mandate  in  the  area  of  climate 
change, of which up to EUR 1 billion could be used in neighbouring countries.  

To  respond  to  the  economic  and  financial  crisis  the  Commission  has  also  mobilised  macro-
financial assistance in favour of Armenia, Georgia, Moldova and Ukraine. 

(cid:198)  ENPI  country  allocations  now  reflect  in  a  more  objective  and  transparent  manner  the 
degree to which the values underpinning the ENP are effectively shared. The objectives of the 
Governance  Facility  (to  reward  progress  on  governance-related  reforms)  having  been 
mainstreamed, the Commission intends to review the operation of the Facility as of 2011 to 
provide more targeted support for governance improvement. 

(cid:198) The Commission calls on the Council to adopt its proposal to amend Article 23 of the 
ENPI  regulation.  This  would,  inter  alia,  make  available  additional  resources  (EUR  35 
million per year) to finance the FEMIP. 

(cid:198) For both  the  EU  and partners to fully benefit from market opening and to make it 
sustainable,  partners’  economies  must  be  helped  to  become  more  buoyant.  Partner 
countries have a largely untapped potential for growth, and as their principal and – by reason 
of geographic proximity – obvious trading partner, the EU has a direct interest in supporting 
their  economic  development.  The  logic  that  linked  the  development  of  the  Internal  Market 
and  that  of  the  Structural  Funds  also  applies  in  relation  to  our  Neighbourhood,  and  should 
feed into the debate on the next Financial Framework. 

3. 

MULTILATERAL INITIATIVES 

Complementing  the  bilateral  developments  summarized  in  the  preceding  section,  there  has 
been important progress under the multilateral frameworks relevant for the Neighbourhood. 

In the South, the Euro Mediterranean Partnership, which started in 1995, helped to lay the 
ground for a free trade zone which will be completed in a few years’ time. Cooperation was 
established  in  a  wide  range  of  areas  such  as  civil  protection,  culture,  youth  exchanges,  and 
gender issues. Its successor, the Union for the Mediterranean (UfM) was launched in July 
2008 to give a new impetus in three important ways: a) by upgrading the political level of the 

5 

COM(2010) 174, 21.4.2010. 

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EU's  relationship  with  its  Mediterranean  partners;  b)  by  providing  for  further  co-ownership 
through a system of co-presidency (one from the EU and one from the Mediterranean partner 
side),  a  dedicated  Secretariat  and  a  Joint  Permanent  Committee  and  c)  by  making  these 
relations  more  concrete  and  visible  through  large-scale  regional  and  sub-regional  projects 
relevant for the citizens of the region.  

In the difficult political context in the wake of the Gaza conflict, progress was mainly related 
to  the  establishment  of  the  UfM  Secretariat,  the  designation  of  its  Secretary-General  in 
January  2010  and  adoption  of  its  statute  in  March.  The  implementation  of  four  of  the  six 
projects progressed with contributions from the EU budget.  

The Eastern Partnership was launched in May 2009, in response to the interest of eastern 
partners to come closer to the EU and to create the necessary conditions to accelerate political 
association and further economic integration. The predominantly bilateral focus of the EaP is 
complemented  by  a  multilateral  track  which  promotes  cooperation,  open  dialogue,  and  the 
exchange  of  best  practice  and  experiences.  Thematic  platforms  have  been  constituted  to 
address  four  main  areas  of  interest:  Democracy,  good  governance  and  stability;  Economic 
integration and convergence with EU sectoral policies; Energy security; and Contacts between 
people. The four thematic platforms have adopted Work Programmes for 2010-11, established 
a number of Panels, and approved the general design of a number of flagship initiatives6.  

In  parallel,  the  European  Parliament  has  taken  preliminary  steps  to  set  in  motion  the  EU-
Neighbourhood  East  Parliamentary  Assembly  (Euro-Nest),  and  the  Committee  of  the 
Regions  declared  its  intention  to  establish  an  Eastern  Europe  and  South  Caucasus  Local 
and Regional Assembly. The EaP Civil Society Forum (EaP CSF) was organised in Brussels 
in  November  2009  by  the  Commission,  the  Presidency  of  the  Council  and  the  European 
Economic  Social  Committee,  bringing  together  over  200  civil  society  representatives.  The 
Forum’s  recommendations  were  presented  by  its  representatives  at  the  EaP  Ministerial 
meeting in December 2009. 

The Black Sea Synergy (BSS), launched in February 2008, reflects the EU’s growing interest 
in promoting regional cooperation around the Black Sea since two riparian states are now EU 
Members States. A number of previously launched programmes reached maturity, notably the 
Black  Sea  basin  cross-border  cooperation  programme  2007-13  and  the  Black  Sea 
Interconnection project (Information Society). 

The  Black  Sea  Sector  Partnerships  have  been  prepared  with  the  EU  Member  States  of  the 
Region (respectively Romania, Greece and Bulgaria) as well as with the partner States. The 
first  of  them,  the  environment  partnership  was  launched  in  the  first  half  of  2010,  and  work 
continues to define its modalities. 

The  Commission  remained  active  in  the  network  of  regional  organizations  working  in  the 
Black  Sea  Region,  including  the  Black  Sea  Economic  Cooperation  (BSEC)  organisation, 
where the Commission has been a permanent observer since 2007, and the Commission on the 
Protection of the Black Sea against Pollution.  

In addition to the Union for the Mediterranean, the continued implementation of the Africa-
EU Joint Strategy and the close co-operation between the EU and Northern African countries 

6 

In  the  areas  of:  integrated  border  management;  support  for  small  and  medium  enterprises;  energy 
efficiency; civil protection; and environmental governance. 

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in the framework of the Africa-EU Strategic Partnership have contributed to the overall ENP 
goals in the relevant countries. 

4. 

CONCLUSIONS 

The picture that emerges over the medium term is that, despite a difficult context, the EU has 
been able to establish a partnership for reform with its neighbours. This has brought tangible 
results  benefiting  both  our  partners  and  the  EU,  even  if  policy  design  and  legislation  is  not 
always followed by effective implementation.  

Significant challenges lie ahead. The pace of progress is determined by the degree to which 
partners have been willing to undertake the necessary reforms, and more has been achieved in 
the  economic  sphere,  notably  trade  and  regulatory  approximation,  than  in  the  area  of 
democratic  governance.  However,  the  pace  of  progress  also  depends  on  the  benefits  that 
partners can expect within a reasonable time frame. Here the extent to which the EU has been 
willing  to  engage  itself  with  the  partnership  has  also  had,  and  will  continue  to  have,  a 
significant effect.  

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