JOINT COMMUNICATION  TO THE EUROPEAN COUNCIL, THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A PARTNERSHIP FOR DEMOCRACY AND SHARED PROSPERITY WITH THE SOUTHERN MEDITERRANEAN
Date: 2011-03-08
Institutions: European Commission, High Representative of the Union
Subjects: International Finance Corporation, Mediterranean third countries, association, democracy, financial aid, investment aid, social conflict, trade promotion, transition economy

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EUROPEAN COMMISSION

HIGH REPRESENTATIVE 
OF THE UNION 
FOR FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 8.3.2011 
COM(2011) 200 final 

JOINT COMMUNICATION  
TO THE EUROPEAN COUNCIL, THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

A PARTNERSHIP FOR DEMOCRACY AND SHARED PROSPERITY 
WITH THE SOUTHERN MEDITERRANEAN 

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JOINT COMMUNICATION  
TO THE EUROPEAN COUNCIL, THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

A PARTNERSHIP FOR DEMOCRACY AND SHARED PROSPERITY 
WITH THE SOUTHERN MEDITERRANEAN 

INTRODUCTION 

The events unfolding in our southern neighbourhood are of historic proportions. They reflect 
a profound transformation process and will have lasting consequences not only for the people 
and  countries  of  the  region  but  also  for  the  rest  of  the  world  and  the  EU  in  particular  The 
changes  now  underway  carry  the  hope  of  a  better  life  for  the  people  of  the  region  and  for 
greater  respect  of  human  rights,  pluralism,  rule  of  law  and  social  justice  –  universal  values 
that we all share. Movement towards full democracy is never an easy path - there are risks and 
uncertainties  associated  with  these  transitions.  While  acknowledging  the  difficulties  the  EU 
has to take the clear and strategic option of supporting the quest for the principles and values 
that it cherishes. For these reasons the EU must not be a passive spectator. It needs to support 
wholeheartedly the wish of the people in our neighbourhood to enjoy the same freedoms that 
we take as our right. European countries have their own experience of democratic transition. 
The  European  Union  has  a  proud  tradition  of  supporting  countries  in  transition  from 
autocratic regimes to democracy, first in the South and more recently in Central and Eastern 
Europe.  While  respecting  what  are  primarily  internal  transformation  processes,  the  EU  can 
offer  expertise  -  that  of  governments,  the  European  Institutions  (European  Commission  and 
European  Parliament),  local  and  regional  authorities,  political  parties,  foundations,  trade 
unions  and  civil  society  organizations.  There  is  a  shared  interest  in  a  democratic,  stable, 
prosperous and peaceful Southern Mediterranean.  

We believe that now is the time for a qualitative step forward in the relations between the EU 
and  its  Southern  neighbours.  This  new  approach  should  be  rooted  unambiguously  in  a  joint 
commitment to common values. The demand for political participation, dignity, freedom and 
employment opportunities expressed in recent weeks can only be addressed through faster and 
more ambitious political and economic reforms. The EU is ready to support all its Southern 
neighbours who are able and willing to embark on such reforms through a “Partnership for 
Democracy and Shared  Prosperity”. The commitment to  democracy,  human rights, social 
justice, good governance and the rule of law must be shared. The Partnership must be based 
on  concrete  progress  in  these  areas.  It  must  be  a  differentiated  approach.  Despite  some 
commonalities, no country in the region is the same so we must react to the  specificities of 
each of them. 

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A "Partnership for Democracy and  Shared Prosperity"  should be built  on the  following 
three elements: 

•  democratic transformation and institution-building, with a particular focus on fundamental 
freedoms, constitutional reforms, reform of the judiciary and the fight against corruption 

•  a stronger partnership with the people, with specific emphasis on support to civil society 
and  on  enhanced  opportunities  for  exchanges  and  people-to-people  contacts  with  a 
particular focus on the young 

•  sustainable  and  inclusive  growth  and  economic  development  especially  support  to  Small 
and  Medium  Enterprises  (SMEs),  vocational  and  educational  training,  improving  health 
and education systems and development of the poorer regions. 

This Communication explains what the EU has done to address the short-term consequences 
of recent events in North Africa. It then spells out our approach to the longer term process of 
turning  into  reality  the  tremendous  hopes  that  have  been  voiced  in  the  region.  It  will  be 
developed by listening, not only to requests for support from partner governments, but also to 
demands expressed by civil society.  

A radically changing political landscape in the Southern Mediterranean requires a change in 
the EU’s approach to the region – the underlying themes of differentiation, conditionality and 
of  a  partnership  between  our  societies  are  part  of  the  ongoing  review  of  the  European 
Neighbourhood Policy on which we will present a joint Communication in April. 

1. 

OUR IMMEDIATE RESPONSE 

•  Humanitarian aid (EUR 30 million) 

•  Facilitating consular cooperation and evacuation 

•  Frontex joint operations 

•  Drawing on the EUR 25 million EU External Borders Fund and European Refugee Fund  

•  High  Representative/Vice  President  (HR/VP)  visits  to  Tunisia  and  Egypt;  international 

co-ordination meeting in Brussels 

•  Support for Democratic transition  

Our first concern has been to respond rapidly and effectively to the immediate challenges of 
the evolving situation in our Southern Neighbourhood and to address and pre-empt the risks 
of further bloodshed and hardship.  

EUR 30 million has been made available in humanitarian aid by the Commission to tackle 
the most immediate humanitarian needs in Libya and of displaced persons at the Tunisian and 
Egyptian  borders.  With  this  aid,  we  are  providing  medical  and  food  aid,  shelter  and  other 
necessities. Commission experts are on the ground and contingency planning is taking place 
to ensure a rapid response in case the situation deteriorates further. Vigilance is necessary as 
the  humanitarian  crisis  threatens  to  escalate  to  neighbouring  countries  both  in  the  Maghreb 
and  sub  Saharan  Africa  as  people  flee  from  Libya.  The  Commission  will  increase  financial 

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support if needs on the ground so require it and we encourage EU Member States to continue 
to respond in a similar fashion.  

Close consular cooperation has been maintained between all Member States and the EU and 
appropriate EU mechanisms, including the Situation Centre in the EEAS, have been activated 
to  allow  rapid  exchange  of  information  and  most  effective  use  of  resources.  The  EU  Civil 
Protection Mechanism (MIC) was activated on 23 February to facilitate the evacuation of EU 
citizens  by  way  of  an  air  and  sea  bridge.  The  EU  Military  Staff  has  been  supporting  this 
overall  effort.  The  Commission  is  cooperating  with  international  organisations  (UNHCR, 
International  Organisation for Migration, IOM) to help people who want to leave Libya get 
back  to  their  home  countries.  Use  of  Common  Security  and  Defence  Policy  (CSDP) 
instruments for strengthening the short-term action could be considered. 

The Commission has  mobilised its instruments to support Italy, and other Member States if 
needed,  in  case  a  massive  influx  of  migrants  from  North  Africa  were  to  materialise.  This 
response includes operational measures and financial assistance. The Frontex joint operation 
HERMES  2011  was  launched  on  20  February,  with  assets  and  experts  from  a  number  of 
Member  States.  If  required,  Frontex  operations  could  be  strengthened  to  help  deal  with 
possible  new  inflows.  The  Commission  is  ready  to  mobilise  i.a.  financial  assistance  from 
funds such as the External Borders Fund and European Refugee Fund which amount to EUR 
25 million in total..  

In  Tunisia,  EUR 17  million  was  allocated  for  immediate  and  short-term  support  for 
democratic  transition  and  assistance  to  impoverished  inland  areas.  This  includes  support  to 
establish an appropriate legal framework for the holding of elections and for an EU Election 
Observation  Mission  in  support  of  the  work  of  the  National  Commission  for  Constitutional 
Reform and Elections. It also covers additional support for civil society. Further support for 
democratic reform will be provided through the Instrument for Stability. Following her visits 
to  Tunisia  and  Egypt,  the  HR/VP  convened  an  international  meeting  on  23  February 
providing  the  opportunity  to  compare  notes  with  main  partners  and  major  International 
Financial Institutions (IFIs) on developments in the region. The meeting reconfirmed that the 
efforts  of  the  international  community  must  be  closely  coordinated  and  aligned  with  and 
guided by the priorities expressed by the Tunisians and the Egyptians themselves 

For  Egypt,  it  would  be  premature  to  announce  a  support  package  until  the  authorities  are 
ready to make a request for assistance and define priority needs. The EU is ready to mobilise 
support in line with those priorities when they are ready. 

In  Libya,  the  EU  has  been  firm  in  its  condemnation  of  the  acts  perpetrated  by  the  Gaddafi 
regime. It immediately suspended negotiations of the EU-Libya framework agreement and all 
technical  cooperation..  In  addition  to  the  UN  sanctions,  on  28  February  the  EU  adopted 
further  restrictive  measures  such  as  an  embargo  on  equipment  which  might  be  used  for 
internal  repression  and  autonomous  designations  under  the  travel  restrictions  and  assets 
freeze. Additional measures have been proposed. 

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2. 

ADAPTING OUR APPROACH  

•  Reviewing and adjusting EU Neighbourhood Policy 

•  Moving towards advanced status in Association Agreements  

•  Enhancing political dialogue  

The  EU  response  to  the  changes  taking  place  in  the  region  needs  to  be  more  focused, 
innovative and ambitious, addressing the needs of the people and the realities on the ground. 
Political  and  economic  reforms  must  go  hand-in-hand  and  help  deliver  political  rights  and 
freedoms, accountability and participation. The EU should be ready to offer greater support to 
those  countries  ready to  work on such a common agenda, but also reconsider  support when 
countries depart from this track. 

This  new  approach,  a  “Partnership  for  Democracy  and  Shared  Prosperity”  represents  a 
fundamental step change in the EU’s relationship with those partners that commit themselves 
to  specific,  measurable  reforms.  It  is  an  incentive-based  approach  based  on  more 
differentiation ( "more for more"): those that go further and faster with reforms will be able to 
count on greater support from the EU. Support will be reallocated or refocused for those who 
stall or retrench on agreed reform plans. 

More concretely,  closer political co-operation means advancing towards higher standards of 
human  rights  and  governance  based  on  a  set  of  minimum  benchmarks  against  which 
performance  will  be  assessed.  A  commitment  to  adequately  monitored,  free  and  fair 
elections  should  be  the  entry  qualification  for  the  Partnership.  It  also  means  closer  co-
operation in the context of the Common Foreign and Security Policy (CFSP) and more joint 
work  in  international  fora  on  issues  of  common  interest.  The  EU  will  continue  to  offer  its 
commitment and support to the peaceful resolution of disputes within and between States in 
the  region.  The  Partnership  should  be  underpinned  by  enhanced  political  dialogue.  The  EU 
will step up bilateral political dialogue at all levels, as soon as local conditions allow, with a 
strong focus on human rights and political accountability.  

Partner  countries  carrying  out  the  necessary  reforms  can  expect  to  resume  negotiations  on 
Association  Agreements  with  the  aim  of  achieving  "advanced  status"  which  allows  for 
significantly strengthened political dialogue and increased links between the partner country 
and  EU  institutions.  This  will  encompass  deeper  engagement  on  mobility  and improved 
market access to the EU.  

3. 

DEMOCRACY AND INSTITUTION BUILDING  

•  Expanding support to civil society 

•  Establishing a Civil Society Neighbourhood Facility 

•  Support Social Dialogue Forum 

The  EU  is  ready  to  support  the  democratic  and  constitutional  reform  processes.  Judicial 
reform, enhanced transparency and the fight against corruption are of particular importance in 
this process, both to encourage foreign and domestic economic investment and to demonstrate 
to  people  a  visible  change  in  their  daily  lives.  We  are  ready  to  make  expertise  available, 
through  instruments  such  as  twinning  and  TAIEX,  to  support  capacity  building  with  a 

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particular focus on strengthening government institutions that can ensure the consolidation of 
change, including at regional and local level. Our expertise in electoral assistance will also be 
fully  mobilised  to  accompany  the  electoral  processes  in  Tunisia  and,  if  requested  by  the 
authorities in Egypt.  

A thriving civil society can help uphold human rights and contribute to democracy building 
and good governance, playing an important role in checking government excesses. A range of 
non-government  (NGOs)  and  civil  society  organisations  (CSOs)  can  provide  much-needed 
support for the reforms and involvement in areas close to citizens’ concerns such as human 
rights, the environment, social and economic development. This is an area where we should 
seek  to  maximize  the  assistance  that  Member  States  can  offer  at  short  notice  to  develop  a 
platform for civil society, political parties, trade unions and associations. This could be set up 
with EU funding and with the support of EU political parties, trade unions, foundations and 
relevant  NGOs.  Women  have  played  an  important  role  in  the  changes  in  the  region  and 
gender aspects will play an important role in future EU support. 

The  April  review  of  the  European  Neighbourhood  Policy  will  make  proposals  for  the 
reinforcement  of  the  EU's  support  to  civil  society  organisations  in  our  neighbourhood.  This 
will  include  dedicated  support  for  civil  society  (a  Civil  Society  Neighbourhood  Facility) 
aimed  at  developing  the  advocacy  capacity  of  CSOs  and  increasing  their  ability  to  monitor 
reform and participate effectively in policy dialogues.  

Social  dialogue  between  trade  unions  and  employers  plays  an  important  role  in  sustaining 
reform efforts. New trade unions and employers associations are now emerging. This provides 
an  opportunity  for  more  effective  social  dialogue.  It  should  be  supported  through  the  Euro-
the 
Mediterranean  Social  Dialogue  Forum  which  will  facilitate  exchange  between 
Mediterranean social partners on key employment and social issues and will support capacity 
building.  

The  EU  is  already  supporting  public  administration  reform  aimed  at  streamlining  and 
strengthening of basic policy processes, budget formulation and the capacity to raise domestic 
funding through efficient, fair and sustainable tax systems and administrations. With a view to 
supporting  better  the  fight  against  corruption  and  illicit  financial  flows  and  to  improving 
sound  financial  management,  these  programmes  should  also  target  transparency  and 
accountability in public administration. 

4. 

TACKLING THE CHALLENGES OF MOBILITY 

•  Conclude Mobility Partnerships 

•  Reinforce local Schengen cooperation 

•  Make full use of improvements in EU Visa Code  

People-to-people contacts are important to promote mutual understanding as well as business, 
which  will  benefit  the  cultural  and  economical  development  of  the  entire  Mediterranean 
region and the integration of migrants in the EU. 

A  key  element  in  this  is  the  strengthening  of  capacity  building  in  the  Mediterranean 
countries  on  borders/migration/asylum  and  more  effective  law  enforcement  cooperation  to 
improve security throughout the Mediterranean.  

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Mobility  Partnerships  should  be  launched  with  partner  countries.  They  aim  to  provide  a 
comprehensive  framework  to  ensure  that  the  movement  of  persons  between  the  EU  and  a 
third  country  is  well-managed.  They  cover  initiatives  such  as  visa  and  legal  migration 
arrangements;  legal  frameworks  for  (economic)  migration;  capacity  building  to  manage 
remittances and for efficient matching of labour demands and needs, return and reintegration 
programmes,  upgrading  of  the  asylum  systems  to  EU  standards  etc.  In  return  for  increased 
mobility,  partners  must  be  ready  to  undertake  increasing  capacity  building  and  provide 
appropriate  financial  support  for  border  management,  preventing  and  fighting  against 
irregular  migration  and  trafficking  in  human  beings,  including  through  enhanced  maritime 
surveillance;  the  return  of  irregular  migrants  (return  arrangements  and  readmission 
agreements)  and  for  enhancing  the  capacity  and  abilities  of  law  enforcement  authorities  to 
effectively fight trans-border organised crime and corruption. 

In  the  short-term,  the  Commission  will  work  with  Member  States  on  legal  migration 
legislation  and  visa  policy  to  support  the  goal  of  enhanced  mobility,  in  particular  for 
students,  researchers  and  business  persons.  Cooperation  under  Local  Schengen 
Cooperation should be reinforced and full use should be made of practical improvements and 
flexibilities  for  visa  applicants  within  the  EU  Visa  Code,  including  the  issuing  of  multiple 
entry  visas  to  bona  fide  travellers  and  specific  groups  (such  as  researchers,  students  and 
business  persons).  The  negotiation  of  short  stay  visa  facilitation  agreements  with  Southern 
Mediterranean  Countries  should  be  envisaged  following  a  differentiated,  evidence-based 
approach.  Financial  support  will  be  provided,  if  needed.  The  Commission  calls  on  the  co-
legislators to adopt rapidly the Directives on third country seasonal workers and intra-
corporate transferees, which will also contribute to enhancing mobility to the EU. 

In  the  long-term,  provided  that  visa  facilitation  and  readmission  agreements  are  effectively 
implemented, gradual steps towards visa liberalisation for individual partner countries could 
be  considered  on  a  case-by-case  basis,  taking  into  account  the  overall  relationship  with  the 
partner country concerned and provided that conditions for well-managed and secure mobility 
are in place.  

5. 

PROMOTING INCLUSIVE ECONOMIC DEVELOPMENT  

•  Promote Small and Medium Size Enterprises (SMEs) and Job Creation 

•  Seek agreement of Member States to increase EIB lending by EUR 1 billion  

•  Work with other shareholders to extend the EBRD mandate to countries of the region 

•  Promote job creation and training 

The  unrest  in  several  Southern  Mediterranean  countries  is  clearly  linked  to  economic 
weaknesses.  Many  of  the  economies  are  characterised  by  an  unequal  distribution  of  wealth, 
insufficient  social  and  economic  reform,  limited  job  creation,  weak  education  and  training 
systems which do not produce the skills needed on the labour market. as well as low level of 
regional trade integration.  

There  is  a  need  for  the  countries  of  the  region  to  re-invigorate  their  economies  to  deliver 
sustainable and inclusive growth, development of poorer regions and job creation. Small and 
medium  size  enterprises  (SMEs)  have  a  critical  role  to  play  in  job  creation.  To  thrive,  they 
need a sound regulatory framework, conducive to business and entrepreneurship. The EU is 
ready to support this through policy dialogue and cooperation under the Euro Med industrial 

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work programme. This should be accompanied by integrated employment and social policies, 
including matching of training initiatives and labour market needs, social dialogue, provision 
of social safety-nets and transformation of the informal sector. 

The  International  Financing  Institutions  (IFIs)  can  contribute  to  this  effort.  Funding  could 
come from the European Investment Bank (EIB) and, if other non-EU shareholders agree, the 
European Bank for Reconstruction and Development (EBRD). The EIB has been active in the 
region for over 30 years, its operations being implemented under the umbrella of the Facility 
for  Euro-Mediterranean  Investment  and  Partnership  (FEMIP).  FEMIP  is  active  in  nine 
countries  in  the  Southern  Mediterranean,  focussing  on  investments  in  infrastructure  and 
support for the private sector. In addition to accelerating the implementation and approval of 
projects  currently  in  the  pipeline,  the  EIB  could  provide  around  EUR  6  billion  to  the 
Mediterranean  region  in  the  coming  three  years  if  the  Council  approves  the  additional 
lending envelope of EUR 1 billion which was recently proposed by the European Parliament. 
The Commission supports this increase in the lending mandate and calls on the Council 
to reach an agreement rapidly on the increase. 

The  Council  is  also  invited  to  adopt  the  Commission  proposal  of  May  2008  on  EIB 
reflows. This would allow the EIB and other financial intermediaries to re-invest funds under 
FEMIP  reflowing  from  previous  financing  operations  in  favour  of  the  private  sector.  In  the 
immediate future this arrangement would generate approximately EUR 120 million now and 
up to EUR 200 million by 2013.  

The EBRD, not currently active in the Southern Mediterranean, could extend operations if the 
Bank's statutes were amended. If agreed by all shareholders this could allow an annual EBRD 
business activity of an initial EUR 1 billion to be reached with the Bank’s existing resources. 
The Commission supports the extension of EBRD operations and calls on EU Member 
States and other shareholder governments to support it urgently. 

These initiatives will not come at the expense of lending to other countries of operation in the 
Eastern neighbourhood for example 

6. 

ENSURING MAXIMUM IMPACT OF TRADE AND INVESTMENT  

•  Adopt Pan-Euro-Mediterranean preferential rules of origin 

•  Approve rapidly agreements on agricultural and fisheries products 

•  Speed up negotiations on trade in services 

•  Negotiate Deep Free Trade Areas  

Trade and investment are engines for growth and help to reduce poverty. They bring people 
together,  securing  ties  between  nations  and  contributing  to  political  stability.  However,  for 
trade and Foreign Direct Investment (FDI) to deliver their potential, they must be embedded 
in a sound business climate, which, in turn, requires a strengthening of the rule of law and the 
judiciary, tackling corruption and overhauling administrative procedures.  

The countries in the region are at different stages in their trade and investment relations with 
the EU. Some (Tunisia, Morocco, Egypt, Jordan) are relatively well advanced; others (Syria, 
Algeria,  Libya)  much  less.  The  EU  has  free  trade  agreements  with  the  whole  of  the  region 
except  for  Syria  and  Libya.  These  agreements  provide  free  market  access  for  industrial 
products.  The  EU  has  recently  upgraded  preferential  market  access  for  agricultural  and 
fisheries products, with Egypt and Jordan in particular, and several other agreements in this 

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field  are  being  negotiated  or  at  the  approval  stage,  for  example,  with  Morocco.  With 
Morocco,  there  has  also  been  an  exchange  of  offers  to  liberalise  services,  but  the  issue  of 
labour mobility is a major stumbling block. 

The  EU's  measures  in  support  of  trade  and  investment  should  best  be  calibrated  to  the 
situation  in  each  country,  including  the  pace  and  breadth  of  reforms  more  generally,  also 
given the current level of volatility in the region.  

In the short to medium term, the EU could set itself the following goals to.  

•  accelerate  the  conclusion  and  EU  approval  of  trade  liberalisation  agreements,  notably  on 

agricultural and fisheries products with Tunisia and Morocco; 

•  launch negotiations on agreements on conformity assessment and acceptance of industrial 

products; 

•  accelerate  on-going  bilateral  negotiations  on  the  liberalisation  of  trade  in  services 

(including visa facilitation for persons from specific professional categories); 

•  conclude the single regional Convention on pan-Euro-Mediterranean preferential rules 
of origin in  2011. This  should be accompanied by a rapid revision of the rules of origin 
themselves. A point of reference for these reforms is the recently adopted regime for GSP 
beneficiaries.  The  Commission  calls  on  the  Council  to  adopt  urgently  its  pending 
proposals  on  the  single  regional  Convention,  after  consultation  with  the  European 
Parliament. 

In  the  medium  to  long  term,  the  common  objective  which  has  been  agreed  in  both  regional 
and bilateral discussions with Southern Mediterranean partners is the establishment of Deep 
and  Comprehensive  Free  Trade  Areas,  building  on  the  current  Euro-Mediterranean 
Association  Agreements  and  on  the  European  Neighbourhood  Policy  Action  Plans.  They 
should form part of a broader comprehensive package in support of democratic and economic 
reforms.  Negotiations  should  be  started  with  countries  that  are  clearly  engaged  in  such  a 
process  of  political  and  economic  transformation.  Beyond  the  mere  elimination  of  import 
duties, these agreements should foster, in a progressive manner, closer integration between the 
economies  of  our  Southern  Mediterranean  partners  and  the  EU  single  market  and  would 
include  actions  such  as  regulatory  convergence.  Particular  priority  should  be  given  to 
measures  in  areas  such  as  competition  policy,  public  procurement,  investment  protection, 
sanitary and phytosanitary measures.  

7. 

ENHANCING SECTORAL CO-OPERATION 

•  Establish an EU-South Mediterranean Energy Community 

•  Launch an Agricultural/rural development support programme 

•  Increase participation in education programmes 

•  Develop the Internet and other communication technologies 

The Southern Mediterranean is strategically important for the EU in terms of security of gas 
and oil supplies from some of the countries but also more broadly in terms of transit from the 
region and beyond. There is clear potential for building an EU-Mediterranean partnership in 
the  production  and  management  of  renewables,  in  particular  solar  and  wind  energy,  and  in 
having a joined-up approach to ensuring energy security. Joint renewable energy investments 
in the Southern Mediterranean in line with the EU's 2050 decarbonisation scenario could offer 

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the possibility of a new partnership provided that the right market perspective is created for 
electricity imports.  

It  is  desirable  to  open  a  credible  perspective  for  the  integration  of  the  Southern 
Mediterranean in the EU internal energy market based on a differentiated and gradual 
approach.  In  the  mid  to  long  term,  this  would  mean  establishing  a  form  of  'EU-Southern 
Mediterranean  Energy  Community'  starting  with  the  Maghreb  countries  and  possibly 
expanding  progressively  to  the  Mashreq.  Extending  the  Energy  Community  Treaty  with  the 
Union's Eastern and South-Eastern neighbours, or building on its experience, this community 
should cover relevant parts of the EU's energy legislation with a view to promoting a real and 
reliable convergence of South Mediterranean partners' energy policies with EU policy. 

Education  should  be  a  key  focus  of  EU  activities  in  the  region.  Tackling  high  levels  of 
illiteracy  is  key  to  promoting  democracy  and  ensuring  a  qualified  workforce  to  help 
modernise the Southern Mediterranean economies. Exchanges at university level are valuable, 
and fuller use should be made of Erasmus Mundus, Euromed Youth and Tempus to increase 
substantially  the  number  of  persons  from  Southern  Mediterranean  partner  countries 
participating  in  these  programmes.  Vocational  Education  and  Training  (VET)  also  has  an 
important role to play in addressing disparities. This should include the identification of the 
key  strategic  components  on  an  integrated  VET  policy  by  organising  national  debates  with 
key  stakeholders.  Exchanges  of  best  practices  on  programmes  enhancing  the  skills  of 
unemployed people should also be encouraged. 

Tourism is a key component of GDP in many of the countries in the South Mediterranean. 
The  EU  should  seek  to  extend  its  existing  initiatives  "European  Destinations  of  Excellence 
(EDEN)", promoting sustainable tourism models and Calypso, promoting off-season tourism 
to  these  countries.  The  protection  and  promotion  of  cultural  diversity  is  important  and  the 
EU is committed to further develop cultural initiatives with the South Mediterranean region.  

Recent  events  in  the  Southern  Mediterranean  combined  with  rising  food  prices  have 
demonstrated  the  urgency  for  the  EU  to  help  its  partner  countries  to  improve  the  efficiency 
and  productivity  of  its  agricultural  sector  and  assuring  the  security  of  food  supply.  The 
Commission  could  support  rural  development  through  a  new  initiative  –  a  European 
Neighbourhood Facility for Agriculture and Rural Development. The programme would 
build on EU best practice in developing rural areas. It would integrate investment support and 
building up of administrative capacities so as to facilitate the modernisation of the agricultural 
production  aligned  to  EU  quality  and  food  safety  standards.  It  could  be  developed  in  close 
cooperation with the FAO, World Bank and possibly EIB. 

In the area of transport, cooperation should focus on modernising air traffic management and 
on improving aviation safety and security to create a Euro-Mediterranean Aviation Area. This 
will include extending the European Geostationary Navigation Overlay System (EGNOS) to 
the  Mediterranean  partners.  Cooperation  with 
the 
implementation  of  a  Mediterranean  Maritime  Strategy  should  enhance  maritime  safety, 
security and surveillance.  

the  Mediterranean  partners 

in 

The  use  of  electronic  communications  technologies  -  on  top  of  satellite  broadcasting  - 
greatly facilitated the wave of upheavals in the Mediterranean countries. The widespread use 
of  mobile  phones  combined  with social  networking via  internet - showed the importance of 
information  society  tools  and  technologies  to  the  circulation  of  information.  In  countries 
where the circulation of information is partially restricted such tools can greatly contribute to 
the democratisation of societies and the creation of public opinion through the promotion of 
freedom of expression.  

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While some regulatory reforms have been undertaken, in many of the southern Mediterranean 
countries the regulatory environment is still insufficiently developed to exploit the full growth 
and  productivity  potentialities  of  the  Information  and  Communications  Technology  sector. 
The main critical factors which remain to be addressed are the creation of truly open markets 
(which  often  remain  quasi  monopolies),  the  establishment  of  independent  regulators,  the 
creation  of  a  level  playing  field  and  of  competitive  conditions  for  market  players,  efficient 
management of spectrum and safeguards of users' privacy and security.  

Moreover, ensuring the security, stability and resilience of the Internet and of other electronic 
communication technologies is a fundamental building block in democracy. It is necessary to 
avoid arbitrarily depriving or disrupting citizen's access to them. Given the trans-border and 
interconnected nature of electronic communications technologies, including the Internet, any 
unilateral  domestic  intervention  can  have  severe  effects  on  other  parts  of  the  world.  The 
Commission  will  develop  tools  to  allow  the  EU,  in  appropriate  cases,  to  assist  civil  society 
organisations or individual citizens to circumvent such arbitrary disruptions. 

8. 

REGIONAL AND SUB-REGIONAL IMPLICATIONS 

The dramatic events unfolding in the region may not be necessarily spread evenly across the 
region  and  effects  of  change  may  vary  significantly.  The  regional  dimension  has  taken  on 
increased  importance  and  regional  cooperation  will  be  important  in  mitigating  negative 
spillovers.  

Now,  more  than  ever,  changing  dynamics  in  the  region  mean  that  urgent  progress  on  the 
Middle East peace process is vital. The EU should also work in close co-operation with its 
partners  in  assisting  political  and  social  change  in  the  region.  Turkey  in  particular  has  a 
crucial role to play both as an important regional player and  as a compelling case of multi-
party democracy in a country with a predominantly Muslim population.  

A  fresh  view  of  the  regional  situation  demands  that  the  positive  elements  of  the  Barcelona 
process  together  with  those  of  the  Union  for  the  Mediterranean  be  integrated  in  a  new 
approach. The regional co-operation which proved to be most effective was on projects that 
delivered  concrete  benefits  –  in  environment,  energy,  in  transport,  in  trade  and  in  social 
dialogue.  

Regional  economic  integration  should  be  encouraged.  The  EU  will  support  projects  which 
promote  freer  trade  between  the  countries  of  the  region,  regulatory  approximation,  a 
strengthening  of  economic  governance  as  well  as  the  infrastructures  needed  for  increased 
regional trade. 

The idea behind the establishment  of the Union for  the Mediterranean was a  positive one – 
that  of  a  high  level  partnership  between  the  two  shores  of  the  Mediterranean.  However  we 
have  to  recognise  that  its  implementation  did  not  deliver  the  results  we  expected.  The  UfM 
needs  to  reform  to  fully  realise  its  potential.  It  needs  to  work  more  as  a  catalyst  bringing 
States,  International  Financial  Institutions  and  the  private  sector  together  around  concrete 
projects generating the jobs, innovation and growth that are so badly needed in the region. It 
should help create the right conditions for progress in the Middle East Peace Process. But, one 
should not be conditional on the other. Partner countries' participation in these projects could 
follow  the  principle  of  variable  geometry  depending  on  their  needs  and  interests.  The  High 
Representative  and  the  Commission  are  ready  to  play  a  bigger  role  in  the  Union  for  the 
Mediterranean in line with the Lisbon Treaty. 

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9. 

EU FINANCIAL ASSISTANCE 

•  Refocusing bilateral programmes of the European Neighbourhood Partnership Instrument  

•  Providing additional funding 

Approximately  EUR  4  billion  is  currently  available  for  the  period  to  the  end  of  2013  to 
support  our  Southern  neighbours  under  the  European  Neighbourhood  and  Partnership 
Instrument.  The  largest  part  of  this  assistance  is  delivered  through  bilateral  assistance 
programmes.  While  many  of  the  programmes  underway  or  in  the  pipeline  address  the  three 
priorities  in  the  'Partnership',  the  magnitude  of  recent  changes  in  the  region  requires  an 
extensive  screening  and  the  possible  re-focussing  of  EU  aid,  in  discussion  with  partner 
countries.  

We have already made clear to both Tunisia and Egypt that we are ready to consider carefully 
full  re-focussing  of  our  bilateral  programmes  for  2011-13  (respectively  EUR  240  and  EUR 
445  million)  to  better  meet  the  current  challenges  and  to  ensure  that  our  response  meets 
peoples'  legitimate  aspirations.  More  generally,  throughout  the  region,  programmes  will  be 
screened  in  close  cooperation  and  partnership  with  the  beneficiary  countries.  We  call  on 
Member  States  to  follow  a  similar  screening  exercise  for  their  bilateral  programmes  to 
achieve maximum impact of EU aid. Within the present budgetary situation, we also consider 
that the present events will require unprecedented efforts to achieve maximum co-ordination 
and  consistency  between  Member  States’  efforts,  as  well  as  with  the  EU.  We  will  also 
continue  to  seek  maximum  interaction  and  co-ordination  with  International  Financial 
Institutions. 

The  screening  and  re-focussing  of  assistance  is  the  first  step  in  providing  support  to  help 
partner  governments  to  consolidate  reform  and  socio-economic  development.  While  no 
meaningful  needs  assessment  is  yet  possible,  the  reform  process  will  require  considerable 
support. This will come from the current EU budget1. 

Specific attention will also be paid to the encouragement of private sector investment from the 
EU into the southern Mediterranean. To this end, the Commission will continue to leverage 
loans  from  the  EIB's  FEMIP  as  well  as  from  other  IFIs,  through  the  Neighbourhood 
Investment  Facility  (NIF)  which  provides  grant  support  for  infrastructure  investment  and 
private sector development2. In view of the considerable contribution by the Commission 
to the Neighbourhood Investment Facility, Member States are encouraged to contribute 
to replenishing this instrument. 

Private  foreign  direct  investment  supported  through  such  financial  instruments  should  also 
benefit  from  strong  investment  protection  provisions  and  the  Commission  will  provide  an 
information  tool  and  develop  an  investment  protection  framework  for  European  companies 
interested in investment in the southern Mediterranean. 

Finally, macroeconomic assistance may be necessary for some countries which are likely to 
face short-term difficulties, resulting from the impact of the crisis on trade, investment and 
tourism flows as well as the disruption of domestic production. Should the IMF have lending 

1 

2 

Within Heading 4 of the 2007-2013 multiannual financial framework including, if necessary, through 
the Flexibility Instrument and Emergency Aid Reserve. 
The  potential  of  the  Neigbhourhood  Investment  Facility  (NIF)  in  leveraging  funds  is  huge.  For  the 
2007-2010  period,  NIF  grants  allocated  to  approved  projects  were  leveraged  by  a  factor  of  17.  This 
potential should be further exploited in the coming years. 

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programmes in place and provided that external financing needs are confirmed, the countries 
covered by the European Neighbourhood Policy would be eligible for EU Macro-Financial 
Assistance (MFA). 

10. 

CONCLUSIONS  

These  are  first  proposals  to  build  a  new  partnership  to  support  change  in  the  Southern 
Mediterranean.  Immediate  and  short  term  help  should  be  accompanied  by  longer  term 
assistance when each country is ready to indicate what it needs from its EU partners. 

The European Union in its dual dimension of a community of democratic member states and a 
union  of  peoples  has  had  to  overcome  historical  hurdles.  This  success  story  was  possible 
when hope triumphed over fear and freedom triumphed over repression. This is why there is 
deep  understanding  in  the  EU  for  the  aspirations  of  the  peoples  in  the  Southern 
Neighbourhood. The EU wants to support them in building real democracies and peaceful and 
prosperous societies. Each country and people will of course choose their own path and make 
their own choices. It is rightly for them to decide and not for us to seek to impose solutions. 
This  Communication  underlines  the  determination  of  the  EU  in  supporting  them  on  their 
journey to a better future. 

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Annex 1 GLOSSARY OF TERMS 

Association Agreement 

These  refer  to  contractual  relationships  between  the  European  Union  (EU)  and  a  non-EU 
country.  Association  Agreements  may  promote  the  establishment/strengthening  of  regular 
dialogue and close relations on political and security matters; gradual liberalisation of trade in 
goods, services and capital; economic cooperation with a view to encouraging economic and 
social  development  and  regional  economic  integration;  social,  cultural  and  human  dialogue. 
The legal base for the conclusion of the association agreements is provided by Article 217 of 
the Treaty on the Functioning of the European Union (TFUE). The Treaty on European Union 
(TEU) makes a specific reference to agreements with neighbouring countries in Article 8(2). 

The concept of "advanced status" under the Association Agreements means a strengthening of 
political  cooperation  and  new  opportunities  in  economic  and  trade  relations,  progressive 
regulatory  convergence  as  well  as  strengthened  cooperation  with  certain  European  agencies 
and programmes. 

Deep and Comprehensive Free Trade Area (DCFTA) 

A free trade agreement covering a wide array of trade-related issues (“comprehensive”) and 
aiming  at  eliminating  'behind  the  border'  obstacles  to  trade  through  processes  of  regulatory 
approximation, thus partially opening/extending the EU internal market to the other party. It is 
currently offered only to ENP countries. 

European Neighbourhood Policy (ENP) 

Proposed by the Commission in 2003-2004 as a framework policy through which an enlarged 
EU could strengthen and deepen relations with its 16 closest neighbours (Algeria, Armenia, 
Azerbaijan,  Belarus,  Egypt,  Georgia,  Israel,  Jordan,  Lebanon,  Libya,  Moldova,  Morocco, 
Occupied Palestinian Territory, Syria, Tunisia and Ukraine) with a view to counteracting risks 
of  marginalisation  for  the  neighbouring  countries  which  had  not  participated  in  the  historic 
2004  enlargement  and  therefore  ensuring  the  strengthening  of  a  shared  area  of  prosperity, 
stability and security. A review of the ENP is scheduled for adoption in April 2011. 

ENP Action Plans 

These documents are negotiated with and tailor-made for each country, based on the country’s 
needs and capacities, as well as their and the EU’s interests. They jointly define an agenda of 
political  and  economic  reforms  by  means  of  short  and  medium-term  (3-5  years)  priorities. 
They cover political dialogue and reform, economic and social cooperation and development, 
trade-related issues and market and regulatory reform, cooperation in justice and home affairs, 
sectors  (such  as 
information  society,  environment,  research  and 
development)  and  a  human  dimension  (people-to-people  contacts,  civil  society,  education, 
public health). The incentives on offer, in return for progress on relevant reforms, are greater 
integration  into  European  programmes  and  networks,  increased  assistance  and  enhanced 
market access.  

transport,  energy, 

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European Neighbourhood and Partnership Instrument (ENPI) 

Since 2007 the European Neighbourhood and Partnership Instrument (ENPI) is the legal base 
for  assistance  to  ENP  countries  and  Russia  -  supporting  the  agreed  priorities  in  the  ENP 
Action Plans, as well as the Strategic Partnership with Russia, replacing previous instruments 
for the Eastern Neighbours and Russia and for the Mediterranean Partners respectively.  

Barcelona Process 

Framework  policy  launched  in  1995  by  the  Ministers  of  Foreign  Affairs  of  the  then  15  EU 
members and 14 Mediterranean partners as the base for the Euro-Mediterranean Partnership 
which has evolved into the Union for the Mediterranean. The partnership was organised into 
three  main  dimensions:  political  and  security  dialogue;  economic  and  financial  partnership; 
social, cultural and human partnership. With the introduction of the European Neighbourhood 
Policy  (ENP)  in  2004,  the  Barcelona  Process  essentially  became  the  multilateral  forum  of 
dialogue  and  cooperation  between 
its  Mediterranean  partners  while 
the  EU  and 
complementary  bilateral  relations  are  managed  mainly  under  the  ENP  and  through 
Association Agreements signed with each partner country.  

Facility for Euro-Mediterranean Investment and Partnership (FEMIP) 

This  facility  brings  together  EIB  loans  guaranteed  by  the  EU  budget  and  other  services 
provided by the European Investment Bank (EIB) to assist the economic development and the 
integration  of  the  Mediterranean  partner  countries.  Activities  are  focused  on  two  priority 
areas: support for the private sector and creating an investment-friendly environment. 

European Investment Bank (EIB) 

The  European  Investment  Bank  (EIB)  is  the  European  Union's  financing  institution.  Its 
shareholders are the 27 Member States of the Union, which have jointly subscribed its capital. 
The  EIB's  role  is  to  provide  long-term  finance  in  support  of  investment  projects.  Inside  the 
European Union the EIB supports the EU's policy objectives in the following areas: small and 
medium-sized  enterprises;  cohesion  and  convergence;  the  fight  against  climate  change; 
environmental  protection  and  sustainable  communities;  sustainable,  competitive  and  secure 
energy; the knowledge economy; trans-European networks. Outside the EU, the EIB is active 
in  over  150  countries  to  implement  the  financial  pillar  of  EU  external  cooperation  and 
development  policies  (private  sector  development,  infrastructure  development,  security  of 
energy supply, and environmental sustainability). 

European Bank for Reconstruction and Development (ERBD) 

established  in  1991  in  response  to  major  changes  in  the  political  and  economic  climate  in 
central  and  eastern  Europe,  the  ERBD  is  an  international  financial  institution  that  supports 
projects  from  central  Europe  to  central  Asia  by  investing  primarily  in  private  sector  clients 
whose  needs  cannot  be  fully  met  by  the  market, with  a  view  to  fostering transition towards 
open and democratic market economies. Its area of operations has been recently extended to 
Turkey. 

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FRONTEX 

Is  the  European  Agency  for  the  Management  of  Operational  Cooperation  at  the  External 
Borders  of  the  Member  States  of  the  European  Union.  Based  in  Warsaw,  it  is  a  specialised 
and  independent  body  tasked  to  coordinate  the  operational  cooperation  between  Member 
States in the field of border security. 

Maghreb 

The  term  generally  refers  to  the  five  North  African  countries  of  Morocco,  Algeria,  Tunisia, 
Libya,  and  Mauritania,  plus  the  disputed  territory  of  Western  Sahara  -  although  it  is  most 
commonly used for Algeria, Morocco and Tunisia. 

Mashreq 

This refers to the region of countries to the east of Egypt and north of the Arabian Peninsula 
(Jordan, Lebanon, Syria, and the occupied Palestinian territory), although it is commonly used 
to include Egypt as well. 

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