JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on a new European Neighbourhood Policy
Date: 2012-05-15
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Mediterranean third countries, associated country, civil society, democratisation, economic growth, trade cooperation

EUROPEAN COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR 
FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 15.5.2012  
JOIN(2012) 14 final 

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

Delivering on a new European Neighbourhood Policy 

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

Delivering on a new European Neighbourhood Policy 

INTRODUCTION 

Last  year's  changes  in  the  Neighbourhood,  in  particular  in  the  Southern  Mediterranean  but 
also in Eastern Europe, led to a rapid EU response. Within weeks, the High Representative of 
the  Union  for  Foreign  Affairs  and  Security  Policy  and  the  European  Commission  issued  a 
joint  Communication  on  a  Partnership  for  Democracy  and  Shared  Prosperity  setting  out  the 
immediate  response  to  the  unfolding  historic  events.  Combined  with  the  revision  of  the 
neighbourhood  policy,  this  resulted  in  a  “New  Strategy  for  a  changing  European 
neighbourhood”1.  This  sent  a  clear  message  of  solidarity  and  support  to  the  peoples  of  the 
Southern  Mediterranean.  Their  struggle  for  democracy,  dignity,  prosperity  and  safety  from 
persecution would be supported by Europe. Europe would also bring its experience and know 
how  to  help  them  address  the  challenges  of  transition  from  authoritarianism  to  democracy. 
This  has been  a top priority for the new European External Action  Service (EEAS) and the 
European  Commission.  Building  on  the  achievements  of  the  Eastern  Partnership,  the  new 
policy  was  also  a  response  to  the  call  of  the  EU's  Eastern  European  partners  for  closer 
political  association  and  deeper  economic  integration  with  the  EU.  The  successful  Eastern 
Partnership Summit in Warsaw and the Summit's Joint Declaration gave a further impetus to 
the implementation of the new approach. 

The policy is based on new features, including a "more for more" approach, the importance 
of  mutual  accountability  between  the  EU  and  its  partners,  the  need  for  partnerships  not 
only with governments but also with civil society (e.g. NGOs, businesses, academia, media, 
unions,  and  religious  groups)  and  a  recognition  of  the  special  role  of  women  in  reshaping 
both politics and society.  

The  new  ENP  approach  also  recognised  the  importance  of  differentiation  and  tailors 
relations  to  the  level  of  ambitions  of  partners.  It  is  therefore  based  on  the  respect  for  every 
partners'  specificities  and  their  own  reform  path.  The  new  policy  has  enshrined  greater 
flexibility and set out a framework for tailored responses, matching the specific requirements 
of the countries, their progress in undertaking reforms, and the nature of the partnership they 
seek with the EU. 

A year on, this joint Communication of the High Representative and the Commission gives an 
assessment  of  the  implementation  of  the  new  approach.  This  Communication,  accompanied 
by a set of Joint Staff working documents2, shows that the EU has been quick in laying the 
policy’s  new  foundations,  and  that  most  partner  countries  have  responded  positively, 

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COM (2011) 303 of 25.05.2011 
This  joint  Communication  is  accompanied  by:  twelve  Country  Progress  Reports  assessing  the 
implementation  of  the  ENP in  2011  in  the  twelve  neighbouring  countries  with  which an  ENP  Action 
Plan or an equivalent document has been agreed; two regional progress reports reviewing the progress 
made in 2011 in the implementation of the Eastern Partnership and the Partnership for Democracy and 
Shared Prosperity; and a Statistical Annex. 

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indicating  their  readiness  to  pursue  political  and  economic  reform  with  increased 
determination and to engage more deeply with the EU. 

A number of innovations have been particularly important:  

• 

• 

• 

• 

In July 2011, the Council appointed an EU Special Representative for the Southern 
Mediterranean  region.  Working  together  with  the  Commission  and  the  EEAS,  the 
new  EUSR  has  contributed  to  the  response  of  the  EU  by  enhancing  the  Union's 
effectiveness and visibility through political dialogue and economic cooperation with 
all  parties  involved  in  the  process  of  democratic  transformation  in  the  region.  To 
achieve  these  objectives,  the  Task  Force  is  designed  to  work  together  with  our 
partners bringing country-specific expertise and resources from the EU, its Member 
States,  the  European  Investment  Bank,  the  European  Bank  for  Reconstruction  and 
Development  as  well  as  other  International  Financial  Institutions  and  the  private 
sector.  The  EU-Tunisia  and  EU-Jordan  Task  Forces  have  proven  to  be  effective 
instruments for democratic change, accelerating the delivery of support, and financial 
assistance  by  involving  a  wide  range  of  institutions.  Acting  as  a  catalyst,  the  Task 
Force  allows  deepening  the  EU's  relationship  with  countries  in  a  results-oriented, 
tailored and differentiated way.  

The Commission has put forward "umbrella" financial programmes (SPRING for the 
South and EaPIC for the East) to make available  more  rapidly  the additional funds 
announced  in  2011,  in  order  to  support  democratic  transformation,  institution 
building and further growth in the partner countries. 

In light of the challenging economic outlook in Europe, the High Representative and 
the Commission have taken bold steps to mobilise financial assistance for transition 
in  the  neighbourhood  from  outside  the  traditional  community  budget.  This  has 
included an increase in the lending ceilings of EUR 1.15 billion to partner countries3 
from  the  European  Investment  Bank,  and  an  extension  of  the  mandate  of  the 
European  Bank  for  Reconstruction  and  Development  to  cover  the  countries  of  the 
Southern and Eastern Mediterranean.  

A  Civil  Society  Facility  covering  the  entire  neighbourhood  was  launched  in 
September  with  an  initial  budget  of  EUR  26  million  for  2011  and  similar  amounts 
planned for 2012. 

While progress has not been universal, since last year, many partners have taken bold steps to 
accelerate  their  democratisation  and  reform  processes.  There  have  been  more  free  and  fair 
elections and better protection of fundamental freedoms and human rights. There is also more 
space given to an open public debate, thereby strengthening governments' accountability. 

“More for more” 

The new policy put the principle of “more for more” at its heart: only those partners willing to 
embark  on  political  reforms  and  to  respect  the  shared  universal  values  of  human  rights, 
democracy and the rule of law have been offered the most rewarding aspects of the EU policy, 
notably economic integration (based on the establishment of Deep and Comprehensive Free 
Trade  Areas  -  DCFTAs),  mobility  of  people  (mobility  partnerships),  as  well  as  greater  EU 

3 

€ 1 billion for EU’ Southern Neighbourhood an d € 150 million for EU’s Eastern Neighbourhood. 

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financial assistance. Equally, the EU has reacted to violations of human rights and democracy 
standards by curtailing its engagement.  

"More for more" in practice 

•  Reflecting  the  decisive  steps  made  in  the  democratic  transition  process  in  Tunisia  the 
EU has doubled its financial assistance from EUR 80 million in 2010 to EUR 160 million 
in  2011  and  provided  technical  assistance  to  help  organise  the  Constituent  Assembly 
elections. 

•  Negotiations  for  a  DCFTA  were  launched  with  the  Republic  of  Moldova,  Georgia,  and 
are  about  to  be  launched  with Armenia.  Negotiating  directives  for  DCFTAs  with  Egypt, 
Jordan,  Morocco  and  Tunisia  were  adopted  by  the  Council.  These  agreements  will 
improve economic integration of partners in the EU internal market. 

•  To  respond  to  the  deterioration  of  the  situation  in  Syria  the  EU  has  decided  to  suspend 
impose  sanctions.  The  High 
financial  assistance 
Representative  and  the  Commission  have  actively  supported  mediation  efforts  by  the 
United  Nations  and  the  Arab  League,  while  the  Commission  is  providing  humanitarian 
assistance.  

the  government  and 

to 

to 

•  The EU has recently concluded a mobility partnership with Armenia and plans to conclude 

mobility partnerships with Morocco and Tunisia.  

•  To  further  support  partner  countries  reform  efforts  EUR  670  million  are  being  made 
available to supplement existing country programmes. They are being channelled through 
two  “umbrella”  programmes  (SPRING  for  the  South  and  EaPIC  for  the  East)4  and 
allocated to those partner countries making most progress towards sustainable democracy. 
Allocations have already been announced for Algeria, Jordan, Morocco and Tunisia.  

•  The  Association  Agreement  with  Ukraine  has  been  initialled.  Ukraine’s  performance, 
notably  in  relation  to  respect  for  common  values  and  the  rule  of  law,  will  be  of  crucial 
importance for the speed of its political association and economic integration with the EU, 
including  in  the  context  of  the  conclusion  of  the  Agreement  and  its  subsequent 
implementation. In this context, trials and verdicts against opposition leaders raise serious 
concerns about the respect for fair trial rules and the independence of the judiciary. 

•  The  resumption  of  official  5+2  talks  on  the  settlement  of  the  Transnistrian  conflict  in 
the  Republic  of  Moldova  has  been  accompanied  by  intensified  co-operation  with  the 
Government  of  the  Republic  of  Moldova,  the  launch  of  large-scale  EU  confidence 
building measures and a step-by-step review of EU sanctions against Transnistria, while 
recognising the constructive attitude of its new leadership.  

•  To  reflect  the  EU's  grave  concern  about  the  continued  lack  of  respect  for  human  rights, 
democracy  and  rule  of  law  in  Belarus,  the  EU  put  forward  a  series  of  restrictive 
measures and redirected a major part of its assistance towards the civil society. It has also 
launched a European Dialogue on Modernisation with the opposition and civil society. 

4 

SPRING  (Support  for  Partnership,  Reform  and  Inclusive  Growth);  EaPIC  (Eastern  Partnership 
Integration and Cooperation Programme). 

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The  EU  is  also  engaged  in  intense  co-operation  with  partners  on  a  broad  range  of  sectoral 
issues, based on EU norms and standards. Reforms need to be pursued with increased vigour 
by partners because they underpin inclusive socio-economic growth, job creation (especially 
for  the  youth),  poverty  reduction  and  increased  foreign  investment.  Targeted  financial 
support,  institutional  capacity  building,  enhanced  sector  policy  dialogue  and  the  gradual 
opening  up  of  programmes  and  agencies  allows  the  EU  and  partner  countries  to  take  full 
account  of  the  complexities  of  this  process,  which  requires  difficult  choices  and 
accompanying measures to protect vulnerable citizens.  

A partnership with Societies 

The EU increasingly reached out to civil society in all neighbouring countries including those 
subject  to  targeted  EU  sanctions  and  where  financial  assistance  is  suspended.  This 
engagement  has  generally  been  welcomed  by  partner  countries  as  well  as  local  and 
international  civil  society  organisations.  The  EU  intends  to  broaden  this  engagement,  in 
particular  through  the  engagement  of  civil  society  organisations  in  the  preparation  and 
monitoring of action plans or similar documents. 

Concrete steps towards establishing a partnership with civil society 

•  A  Civil  Society  Facility  covering  the  entire  neighbourhood  was  launched  in  September 
2011 with an initial budget of EUR 26 million for 2011 and similar amounts planned for 
2012 and 2013.  

•  The Eastern Partnership human rights dialogues were complemented by joint civil society 
seminars  and  the  Eastern  Partnership  Civil  Society  Forum  has  become  a  permanent 
member of all four multi-lateral platforms. 

•  In  the  Southern  Neighbourhood  the  EU  has  increased  its  support  to  the  Anna  Lindh 

Foundation in its efforts to mobilise and revitalise civil society in the region. 

•  The Council of Europe has stepped up its involvement in the neighbourhood region. After 
establishing  a  first  facility  for  supporting 
the  Eastern 
Neighbourhood, the Commission has decided on a EUR 4.8 million facility dedicated to 
the Council of Europe's activities with the southern Mediterranean countries.  

the  Council's  work 

in 

•  To  promote  freedom  of  expression,  the  EU  has  launched  a  “no  disconnect  strategy”  to 
help civil society organisations and individual citizens overcome arbitrary disruptions of 
access to electronic communication technology.  

•  In  December  2011,  the  main  principles  for  the  establishment  of  the  European 
Endowment for Democracy were agreed by the Council. The EED will have an initial, 
although not exclusive, focus on the EU Neighbourhood. 

•  In  parallel  with  the  suspension  or  redirection  of  assistance,  the  EU  has  increased  its 
financial  support  for  civil  society  organisations  in  countries  where  continued  human 
rights violations persist. 

•  The EU has also offered to negotiate visa facilitation and readmission agreements with 
Belarus to facilitate people-to-people contacts. The Belarus authorities have so far failed 
to  respond  to  the  EU’s  offer.  The  EU  Member  States  strive  to  make  optimal  use  of  the 

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flexibilities offered by the Visa Code, to waive and reduce visa fees for certain categories 
of Belarusian citizens or in individual cases. 

•  The  EU  is  increasing  opportunities  for  the  modernisation  of  higher  education  systems, 
academic  mobility  and  youth  exchanges.  In  2012  and  2013  the  funding  for  the 
participation  of  neighbouring  countries  in  its  higher  education  cooperation  programmes 
will be doubled, new opportunities for youth exchanges and networking for youth workers 
will be provided. Also several regional dialogues on education, youth and culture policies 
have been launched or are about to be launched.  

Mutual accountability 

As part of an overall “more for more” approach, the EU in consultation with partner countries 
has been adapting its policy tools to promote mutual accountability and make policy dialogue 
more interactive and frank. 

Tools to strengthen mutual accountability 

•  Increasingly frequent formal and informal contacts and dialogues at political level provide 
an opportunity for enhanced political steering of partner countries reform and the related 
EU support.  

•  From  this  year,  the  Country  Progress  Reports  will  become  increasingly  forthright  in 
assessing  progress,  in  particular  towards  deep  and  sustainable  democracy.  They  will 
represent a tool for applying the incentive-based approach and establishing a stronger link 
with  all  relevant  aspects  of  the  EU  response,  including  financial  assistance.  They  will 
include country specific recommendations which partner countries are invited to address. 

•  There have been increased contacts at all levels from senior officials to stakeholders and 
civil  society  organizations,  allowing  representatives  of  partner  countries  to  express  their 
views on the implementation of the new approach and to provide a feedback on the EU's 
delivery on its commitments. These meetings will be made more regular. 

1. 

DEVELOPMENTS IN NEIGHBOURING COUNTRIES 

1.1 

A year of rapid, if uneven, progress  

After years of relative stagnation, democracy is increasingly taking root in the neighbourhood 
spurred  by  last  year's  democratic  revolutions  in  North  Africa.  In  a  number  of  countries, 
meaningful elections have been held with the participation of a diversity of political parties. 
The  general  trend  points  towards  more  democracy,  a  more  accountable  form  of  governance 
and increased respect for human rights and fundamental freedoms. However, there are areas, 
essential  to  ensure  the  sustainability  of  ongoing  political  reforms,  where  progress  has  been 
more limited. In some countries progress has stalled or there are signs of regression.  

Structural reform, where pursued, has helped to reduce poverty and attract foreign investment 
while  important  social  challenges  remain.  Continued  approximation  to  EU  norms  and 
standards  has  helped  to  contribute  to  strengthened  trade  links,  notwithstanding  the 
unfavourable  economic  climate.  Increasingly  intense  sector  co-operation  with  the  EU  is 

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helping  to  address  transport  and  energy  bottlenecks  and  tackle  environmental  and  climate 
challenges. 

1.2 

Building sustainable democracies 

A  process  of  constitutional  reform  is  underway  in  Egypt,  Jordan,  Morocco  and  Tunisia 
aimed  at  promoting  governments’  accountability  to  democratically  elected  parliaments, 
strengthening the independence of the judiciary and removing the other obstacles to a wider 
participation  in  political  life.  Tunisia  has  chosen  its  Constitutional  Assembly  with  the  first 
democratic  and  credible  elections  since  the  country’s  independence.  Similarly  Egypt  and 
Morocco have elected their parliaments in a generally free and transparent manner. 

Overall there is more respect for freedom of expression, association and assembly than in 
the past. The Republic of Moldova and now Tunisia have satisfactory legal frameworks for the 
protection of freedom of assembly and association. But much remains to be done across the 
neighbourhood  to  ensure  that  this  freedom  is  fully  guaranteed  in  law  and  in  practice  and  to 
secure  the  necessary  space  for  civil  society  to  play  its  crucial  role.  In  Egypt,  there  is  some 
opening up of the political space, although freedom  of expression, civil society activity  and 
peaceful demonstrations have often been countered by repression. In Azerbaijan civil liberties 
continue to be severely curtailed.  

Increasingly,  attention  is  focused  on  the  problem  of  corruption,  even  if  bold  political 
statements  are  not  always  followed  by  determined  action.  When  this  does  happen,  as  is  the 
case  in  Georgia,  it  contributes  to  the  respect  of  the  rule  of  law  and  helps  to  establish  a 
business climate that encourages entrepreneurs and attracts foreign investments. 

Throughout the neighbourhood more efforts are needed to ensure respect of the rule of law, 
overseen  by  an  efficient,  impartial  and  independent  judiciary,  with  guarantees  for  equal 
access to justice and respect for due process and fair trial standards as well as to pursue the 
reform  of  the  security  sector.  Although  the  process  of  democratic  transition  and 
constitutional  reform  is  underway  in  a  number  of  neighbouring  countries,  it  has  not  yet 
translated into speedier, more transparent and fairer justice and a greater sense of security. In 
Egypt, civilians continue to be tried before military courts.  

Building  sustainable  democracy  also  means  ensuring  gender  equality  and  increasing  the 
participation  of  women  in  political  and  economic  life.  In  some  countries,  legislative 
provisions enacted with the aim of ensuring a more balanced composition of parliaments have 
encountered  resistance  in  practice  and  therefore  have  not  had  the  desired  effect.  Local  and 
regional authorities have a key role to play in narrowing the gap between the population and 
institutions,  promoting  a  culture  of  political  participation  at  local  level  and  ensuring  that 
policy decisions take local needs into account. 

There  has  been  progress  too  in  the  respect  for  other  human  rights.  Tunisia  has  ratified  a 
number  of  optional  protocols  to  key  human  rights  conventions.  Morocco  and  Tunisia  have 
ratified the optional protocol to the UN Convention against Torture. There is increased respect 
for minority rights in Armenia and Morocco. However, torture and degrading and inhumane 
treatment  continue  to  be  perpetrated  by  security  forces  in  a  number  of  countries.  Similarly, 
discrimination on grounds  of  religion or belief,  ethnic origin  and sexual orientation remains 
widespread  and  trafficking  in  human  beings  continues  to  be  a  serious  problem  in  many 
countries. 

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The situation in Belarus has severely deteriorated over the last year following the December 
2010 crackdown on the opposition and civil society in the wake of the presidential elections. 
The EU has had to re-instate and strengthen sanctions. The EU remains seriously concerned 
about the situation in Belarus, where the authorities have refused to release and rehabilitate all 
political  prisoners  and  to  end  oppression  of  the  opposition,  media  and  civil  society.  The 
Belarus authorities have so far failed to respond to the EU’s offer to negotiate visa facilitation 
and readmission agreements, thus depriving their citizens of the benefits of facilitated travel 
to the EU. Conditions are not in place that permit a full participation of Belarus in the ENP. It 
participates  only  in  the  multilateral  dimension  of  Eastern  Partnership.  The  EU  remains 
determined  to  strengthen  its  partnership  with  the  people  of  Belarus  and  provide  increased 
support to civil society organisations.  

Algeria has initiated a process of political reforms that has led to the adoption of several new 
laws  at  the  beginning  of  2012,  on  the  electoral  code,  participation  of  women  in  the  elected 
assemblies, associations, media, political parties, decentralisation and incompatibility between 
political mandates. A revision of the Constitution is expected to take place after the 10 May 
legislative  elections.  In  the  context  of  the  new  focus  of  the  ENP  on  a  tailored  and 
differentiated  approach,  Algeria  has  decided  to  join  the  ENP,  and  discussions  on  an  ENP 
Action Plan have already started.  

The  situation  in  Libya  is  gradually  stabilising  after  the  end  of  the  civil  war.  The  EU  is 
supporting  the  transition  process  and  regularly  reviews  issues  related  to  respect  for  human 
rights  with  the  authorities.  The  EU  is  ready  to  engage  in  negotiations  with  the  new  Libyan 
Administration  for  a  contractual  agreement  and,  in  that  context,  discuss  Libya’s  possible 
participation in the ENP, based on a shared commitment to the values of democracy, the rule 
of law and respect of human rights.  

1.3 

Conflicts  

Finding  peaceful  settlements  to  protracted  conflicts  remains  a  key  challenge  throughout  the 
neighbourhood. The main responsibility for this lies with the conflicting parties which must 
enhance  their  efforts  to  find  agreements  in  a  genuine  spirit  of  compromise.  Without  that, 
continued international mediation efforts in established formats cannot be expected to lead to 
a breakthrough. The full realisation of the potential of the ENP will require more credible and 
sustained  efforts  on  the  part  of  concerned  neighbouring  countries  to  make  progress  towards 
conflict  resolution.  Conversely,  the  EU  stands  ready  to  provide  necessary  support  for  the 
implementation of settlements once they have been agreed. 

In the case of Syria, the EU has strongly condemned the systematic human rights violations 
by  the  Syrian  regime.  The  EU  has  called  on  President  Assad  to  step  aside  and  allow  a 
peaceful  and  democratic  transition.  Together  with  EU  Member  States  at  the  United  Nations 
Security Council, the EU spared no effort to ensure that the international community speaks 
with one voice in full support of the UN-League of Arab States Special Envoy Kofi Annan's 
plan. The High Representative and EEAS participated in the Friends of Syria meetings. The 
High  Representative  convened  regularly  the  Crisis  Platform  bringing  together  all  relevant 
services in the EEAS and the Commission (sanctions, humanitarian assistance, development 
cooperation, liaison with Delegations and support to the UN). In response to the crisis, the EU 
suspended  all  types  of  cooperation,  imposed  restrictive  measures  and  kept  them  under 
constant review. The EU has only maintained aid that benefits the Syrian population, students, 
human  rights  defenders  and  the  opposition.  The  EU  put  forward  a  contribution  of  EUR  10 
million  in  humanitarian  aid  to  Syria  and  affected  neighbouring  countries.  The  EU  has  also 

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worked closely with Syria's neighbours and has proposed a Commission Special Measure to 
reserve EUR 23 million of ENPI funds to support specifically Syrian civil society as well as 
refugees and affected populations in neighbouring countries.  

The  EU  Delegation  in  Damascus  remained  open  to  support  the  Syrian  people  and  help 
coordinate  the  EU  response  to  the  crisis.  The  EU  Delegation  hosts  several  diplomats  from 
Member States that decided to suspend the activity of their own Embassies. 

In  2011,  the  EU  has  acted  with  a  measure  of  success  to  reinvigorate  the  Quartet  and  has 
continued  its  efforts  to  encourage  both  Israel  and  the  Palestinian  Authority  to  return  to  the 
negotiating table. In its statement on 23 September, the Quartet called for the resumption of 
direct  bilateral  negotiations  without  delay  or  preconditions,  the  aim  being  to  reach  an 
agreement within a timeframe agreed by the parties but not later than the end of 2012. It also 
called upon the parties to refrain from provocative actions and reiterated the obligations in the 
Roadmap.  

In the Eastern Neighbourhood, thanks to the joint efforts of the 5+2 members, including the 
EU,  formal  talks  on  settling  the  Transnistria  conflict  resumed  in  a  positive  atmosphere.  A 
number  of  high  level  meetings  took  place  and  steps  were  taken  to  intensify  confidence-
building measures (e.g. possibility for Transnistrian companies to register in the Republic of 
Moldova and benefit from the autonomous trade preferences, registration fee waiver for visits 
to Transnistria, creation of a working group to discuss further confidence building measures, 
discussions  among  customs  and  railways  authorities  to  facilitate  export  of  goods.  Talks 
between  the  Presidents  of  Armenia  and  Azerbaijan  on  Nagorno-Karabkah,  supported  by  the 
OSCE  Minsk  Group  as  mediator,  did  not  lead  to  a  breakthrough.  The  Geneva  International 
discussions  on  Abkhazia  and  South  Ossetia  under  joint  EU-UN-OSCE  chairmanship  were 
pursued, notably on the issue of the non-use of force.  

1.4. 

Inclusive economic development and trade  

Growth was steady in most of the EU’s Eastern Neighbours which continued their recovery 
from the 2009 crisis. This allowed countries such as Armenia, Azerbaijan and the Republic of 
Moldova to make further progress on reducing poverty and unemployment. The Republic of 
Moldova  and  Georgia  have  also  pursued  structural  reforms  with  determination  while 
progress in Ukraine has stalled and the country programme with the International Monetary 
Fund (IMF) is off track. 

In the EU’s Southern Neighbourhood growth was slower particularly in those countries where 
democratic transition was accompanied by social unrest, strikes and political instability or that 
suffered  from  conflicts  in  neighbouring  countries.  To  address  growing  unemployment  and 
prevent  further  internal  unrest,  many  countries  have  loosened  fiscal  policy,  increased 
government spending and, as a result, the budget deficit. This trend needs to be redressed to 
maintain macroeconomic stability and avoid potential problems with debt financing. In Israel, 
protests  highlighted  widespread  concerns  about  social  justice  and  growing  inequality  in  the 
distribution of wealth. Across the entire neighbourhood, as within the EU, the focus must be 
on  making  economic  development  more  inclusive  by  promoting  internal  cohesion  and 
addressing regional and social imbalances. 

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2. 

EU COOPERATION WITH PARTNERS  

2.1 

A year of delivery 

Most  partner  countries  have  welcomed  the  new  emphasis  on  increased  differentiation  and 
mutual accountability, indicating their readiness to pursue political and economic reform with 
increased  determination  and  to  engage  more  deeply  with  the  EU.  This  is  already  showing 
results.  

towards  deeper  political  association  and  further  economic 

In the East, the Communication of last May gave additional momentum to the development of 
the Eastern Partnership. The Warsaw Eastern Partnership Summit took stock of the results 
achieved and confirmed  the political  commitments of  the EU and its Eastern Neighbours to 
integration  and 
move 
acknowledged the European aspirations and the European choice of some partners. It agreed 
to  prepare  an  “Eastern  Partnership  Roadmap”  which  is  adopted  at  the  same  time  as  this 
communication5  and  provides  a  practical  guide  to  monitoring  implementation  until  the  next 
summit due to be held in autumn 2013. 

Three years after its launch, the Eastern Partnership has registered substantial progress. The 
EU and the Eastern partners have intensified their dialogue on Human Rights. Negotiations on 
Association Agreements have been launched with all partners (except Belarus) and have been 
completed  with  Ukraine.  Negotiations  on  Deep  and  Comprehensive  Free  Trade  Areas 
(DCFTA) are progressing. The goal of achieving visa free travel in due course and the other 
elements of the Eastern Partnership cooperation agenda are being taken forward successfully.  

In  the  Southern  Neighbourhood,  the  EU  has  been  very  active  in  responding  to  the  historic 
changes. It has engaged with regional organisations (in particular the League of Arab States) 
in  the  search  of  solutions  to  conflicts.  The  High  Representative  and  the  Commission  have 
welcomed the outcome of the democratic elections and affirmed their readiness to work with 
the  new  governments.  The  EU  has  provided  immediate  humanitarian  assistance  where 
needed,  reoriented  its  financial  assistance,  increased  it  for  the  countries  most  in  need  while 
cutting  it  in  other  cases.  It  has  also  offered  new  cooperation  and  dialogue  on  trade  and 
mobility. It has become a recognised and trusted partner for the preparation, organisation and 
monitoring  of  elections.  It  has  substantially  increased  its  engagements  with,  and  support  to, 
civil society organisations throughout the region. 

Following  a  proposal  from  the  High  Representative,  the  Council  appointed  a  Special 
Representative  for  the  Southern  Mediterranean  Region  to  develop  dialogue  with  transition 
countries,  step  up  the  mobilisation  and  coordination  of  the  EU  and  the  Member  States  and 
ensure co-ordination with the International Financial Institutions and the private sector. This 
has already brought tangible results to the region. The first Task Force took place in Tunisia 
in September 2011 and announced a very substantial international support package, covering 
both grants and loans, to which the Commission contributed with EUR 400 million in grants 
for  the  period  2011-2013.  The  second  Task  Force  met  in  Jordan  in  February  2012  to 
encourage  and  support  the  process  of  political  and  economic  reforms  in  Jordan.  Political 
parties  and  civil  society  organisations  contributed  to  the  Task  Force.  A  substantial 
international financial package was also announced on this occasion. The Task Forces are not 
one-off exercises but a process that includes follow up meetings at different levels to assess 

5 

COM (2012) … of 15.05.2012, Eastern Partnership: A Road Map to the autumn 2013 Summit”.  

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the  progress  and  implementation.  The  joint  bodies  established  under  the  Association 
Agreement monitor the implementation of the Task Force's recommendations. Following the 
Presidential  elections  and  transfer  to  civilian  rule,  a  Task  Force  will  be  organized  together 
with Egypt in 2012. 

2.2 

Building sustainable democracies 

The renewed EU emphasis on building deep democracies6 and promoting human rights and 
fundamental freedoms has been accompanied by determined action.  

To support democratic transition, the EU has stepped up co-operation with the Council of 
Europe  and  sought  synergies  with  the  Council  of  Europe  Parliamentary  Assembly  offering 
“Partner  for  Democracy  Status”  to  Parliaments  of  Southern  Mediterranean  countries.  This 
Status was granted to Morocco and the Palestinian Authority. The EU has also developed a 
programme with the Council of Europe to support the reform process in Eastern Partnership 
countries  covering  judicial  reform  and  respect  for  human  rights  in  the  delivery  of  criminal 
justice,  compliance  with  European  electoral  standards,  fight  against  corruption  and  serious 
forms  of  cybercrime.  This  was  later  complemented  by  a  similar  programme  with  the  EU’s 
Southern  Neighbours,  focusing  on  constitutional  reform,  judicial  reform  and  electoral 
systems.  

The EU has provided technical assistance to Tunisian election authorities to help them prepare 
for their first democratic elections and has supported Tunisian civil society in the run up to 
those  elections.  It  has  deployed  a  fully-fledged  Election  Observation  Mission  (EOM)  in 
Tunisia and sent election experts to Morocco. Following the invitation by Algeria, it deployed 
a fully-fledged EOM to observe the 10 May parliamentary elections. It has provided technical 
assistance  to  the  Egyptian  High  Electoral  Commission  and  supported  voter  education  and 
domestic observers through Civil Society Organisations. Libya has invited the EU to observe 
the forthcoming elections for a constitutional assembly.  

2.3 

Fostering inclusive economic development, trade and sector co-operation 

Economic and social development 

In a context of serious economic and financial difficulties in the Euro Area and in most of the 
Arab  partner  countries  (also  reflecting  the  effects  of  the  Arab  Spring),  macro-economic 
dialogues have proved to be particularly useful for both the EU and its partners. They have 
allowed  a  frank  and  in-depth  exchange  of  information  and  views  to  take  place  on  the 
economic  challenges  faced  and  the  policy  responses  being  taken  by  the  two  parties, 
highlighting the need for structural reforms.  

To  promote  inclusive  economic  development,  the  EU  has  acted  to  increase  its  financial 
assistance  and  the  lending  capacity  of  European  Financial  Institutions  (see  Section  2.4)  and 
has re-launched policy dialogue on employment and social issues.  

6 

The  elements  that  characterise  a  deep  and  sustainable  democracy  include:  free  and  fair  elections; 
freedom  of  association,  expression  and  assembly  and  a  free  press  and  media;  the  rule  of  law 
administered  by  an  independent  judiciary  and  the  right  to  a  fair  trial;  fighting  against  corruption; 
security and law enforcement sector reform (including the police); and the establishment of democratic 
control over armed and security forces. 

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Trade 

DCFTA  negotiations  were  completed  with  Ukraine  and  launched  with  the  Republic  of 
Moldova  and  Georgia  and  are  about  to  be  launched  with  Armenia.  Following  a  scoping 
exercise to be conducted in 2012 on the partners’ capacity to approximate to the EU acquis, 
negotiations with Jordan, Morocco and Tunisia could be opened before the end of the year on 
the basis of the negotiating directives adopted by the Council in December. The Agricultural 
and Fisheries Product agreement with Morocco will enter into force in July and rapid progress 
on  other  ongoing  negotiations,  such  as  the  equivalent  agreement  with  Tunisia,  is  also  a 
priority as outlined at the March European Council. 

The  regional  Convention  on  pan-Euro-Mediterranean  Rules  of  Origin  was  opened  for 
signature in June 2011 and signed by Jordan and Morocco. The other Southern Mediterranean 
partners that have not yet signed the Convention should rapidly complete the procedures for 
the  signature  and  the  ratification.  Further  negotiations  on  Agreements  for  Conformity 
Assessment and Acceptance of industrial products (ACAAs) should be launched in 2012 
to  open  up  markets  for  industrial  products  with  Tunisia  and  later  with  Egypt,  Jordan  and 
Morocco. 

Sector Co-operation 

Regulatory  convergence  towards  the  EU  and  other  markets  applying  EU  rules  is  a  key  to 
facilitate  trade  and  economic  development.  It  is  supported,  in  the  framework  of  the  Eastern 
Partnership,  by  Comprehensive  Institution  Building  programmes  and  other  relevant 
assistance  measures.  The  preparatory  process  for  the  DCFTAs  negotiations  with  Armenia, 
Georgia  and  the  Republic  of  Moldova  as  well  as  the  finalisation  of  such  negotiations  with 
Ukraine,  have  boosted  the  legislative  work,  particularly  in  the  areas  of  sanitary  and 
phytosanitary standards and technical regulations. This has also improved domestic food and 
product safety. Public finance management is one area where improvements are still needed.  

Market integration with the EU and regulatory convergence are also drivers of much needed 
sector  reforms.  Such  reforms  are  generally  of  a  longer-term  nature  and  require  substantial 
investments. In all areas, co-operation between the EU and partner countries has intensified as 
the joint staff working documents accompanying this communication highlight. The EU has, 
for  example,  launched  a  “no  disconnect  strategy”  to  help  civil  society  organisations  and 
individual  citizens  circumvent  arbitrary  disruptions  of  access  to  electronic  communications 
technologies. The EU also launched the European Neighbourhood Programme for Agriculture 
and Rural Development which through investment support and technical assistance permit the 
modernisation  of  the  agricultural  production  in  the  partner  countries,  create  opportunities  at 
local level and preparing the partner country for more effective operation in the EU market.  

The  Commission  is  also  keen  to  develop  sector  dialogue  and  cooperation  in  the  regional 
frameworks of the Eastern Partnership and Union for the Mediterranean. These dialogues will 
help  cement  common  understanding  on  sectoral  priorities  and  will  contribute  to  the 
emergence of concrete projects and initiatives. 

Informal  Eastern  Partnership  Dialogues  are  being  put  in  place  as  another  means  of 
strengthening the link between the bilateral and multilateral processes, of boosting the sense 
of  joint  ownership  of  the  Eastern  Partnership  and  of  fostering  a  regional  dynamic.  These 
biannual  informal  multilateral  dialogues  between  the  Foreign  Ministers  of  the  partner 
countries and the EU’s High Representative and Commissioner for the ENP will provide the 

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opportunity  for  ministerial-level  informal  discussions  on  developments  in  partner  countries, 
and progress on reform processes, and allow for monitoring the implementation of the Eastern 
Partnership  Roadmap.  This  framework  will  also  provide  for  informal  dialogue  sessions 
between  the  relevant  sectoral  Ministers  and  EU  Commissioners  to  strengthen  multilateral 
sector cooperation between the EU and the Eastern Neighbourhood partners. 

In the context of the Union for the Mediterranean (UfM), and following the Council's decision 
to  transfer  the  northern  co-presidency  to  the  EU,  the  Commission  is  keen  to  restart  the 
sectoral  dialogues  at  ministerial  level.  Discussions  with  partners  are  ongoing  to  agree  on  a 
number of meetings on trade, transport, energy and environment and other sectoral policies. 
These  sectoral  ministerial  meetings  would  identify  joint  objectives  for  regional  cooperation 
and would also help identify possible concrete projects to be carried out in the context of the 
UfM. 

As part of its new response and renewed engagement towards its neighbourhood, the EU has 
further  enhanced  its  support  for  the  participation  of  ENP  partner  countries  in  EU 
programmes  and  agencies.  The  Protocols  allowing  the  participation  of  the  Republic  of 
Moldova and Ukraine in EU programmes have entered into force. Following the positive vote 
in  the  European  Parliament,  the  protocol  with  Morocco  will  enter  into  force  shortly.  The 
negotiations  on  a  Protocol  with  Jordan  have  been  launched.  A  project  is  being  prepared  to 
support  EU  Agencies’  preparatory  measures  with  a  view  to  facilitating  participation  in  the 
work of the agencies. Partner countries can use EU funding to co-finance their participation in 
EU programmes.  

Mobility  

Headway  is  being  made  towards  the  goal  of  visa  liberalisation  with  the  EU’s  Eastern 
Neighbourhood.  Mobility  Partnerships  exist  with  Armenia,  Georgia  and  the  Republic  of 
Moldova. The Republic of Moldova and Ukraine are implementing Visa Liberalisation Action 
Plans.  A  visa  dialogue  with  Georgia  could  be  launched  before  the  summer.  Following  the 
successful  implementation  of  visa  facilitation  and  readmission  agreements  with  Georgia, 
the  Republic  of  Moldova  and  Ukraine,  negotiations  on  similar  agreements  have  been  also 
launched with Armenia and Azerbaijan.  

In the EU’s Southern Neighbourhood, the EU has offered to engage in partnership dialogues 
on migration, mobility and security with Egypt, Morocco and Tunisia. Such dialogues cover 
regular and irregular migration, trafficking in human beings, readmission, visa issues, asylum 
and  international  protection.  Substantial  progress  has  been  achieved  with  Morocco  and 
Tunisia  with  which  the  dialogues  were  launched  in  October  2011,  and  joint  declarations 
opening the way to mobility partnerships should be signed in the coming months. Egypt has 
so  far  declined  to  enter  into  concrete  discussions.  The  High  Representative  and  the 
Commission propose to initiate a dialogue on migration, mobility and security with Jordan. 

2.4 

Financial Support 

To  provide  financial  backing  for  partner  countries’  reform  efforts,  the  EU  has  acted  at  two 
levels. 

First  it  has  sought  to  strengthen  the  link  between  the  new  policy  approach  and  existing 
financial  assistance  programmes.  In  the  Southern  Neighbourhood  this  has  led  to  the  re-

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orientation of € 600 mil lion of existing funding towards the objectives laid down in the joint 
Communication  "A  Partnership  for  Democracy  and  Shared  Prosperity  with  the  Southern 
Mediterranean7".  As  a  result  new  institution  building  programmes  have  been  launched  in 
areas such as judicial reform and the fight against corruption.  

Second it has worked towards making available additional financial resources from the EU 
budget.  The  joint  Communication  “A  new  response  to  a  changing  Neighbourhood”  of  May 
2011  had  proposed  to  devote  up  to  EUR  1.24  billion  of  additional  resources  to  support  the 
implementation  of  the  new  approach.  Of  this  amount,  EUR  one  billion  is  being  made 
available  to  partner  countries.  The  High  Representative  and  the  Commission  regret  that  no 
consensus has yet emerged in the Council in favour of the Commission proposal to allow the 
re-use  of  EIB  reflows.  This  will  lead  to  a  shortfall  of  at  least  EUR  240  million  over  the 
original proposal.  

The largest part of these additional resources (EUR 670 million) will be channelled through 
two umbrella programmes SPRING in the Southern Mediterranean with a budget of EUR 540 
million  for  2011-13;  and  EaPIC  in  the  Eastern  Neighbourhood  with  a  budget  of  EUR  130 
million  for  the  period  2012-13.  Both  programmes  will  focus  on  promoting  democratic 
transformation and institution-building and supporting sustainable and inclusive growth. The 
rest  of  the  additional  funding  has  mostly  been  allocated  to  mobility  programmes  (Tempus, 
Erasmus Mundus, etc.) and support to civil society organisations and non state actors. 

The extension of the European Investment Bank (EIB) mandate in October opens the way 
for additional loans of EUR 1.15 billion to partner countries8 and for up to EUR one billion in 
loans related to climate change. Additional voluntary contributions from Member States to the 
trust  fund  established  under  the  Facility  for  Euro-Mediterranean  investment  and  Partnership 
(FEMIP) will allow EIB to re-enforce risk capital operations in the Southern Neighbourhood.  

The  area  of  operations  of  the  European  Bank  for  Reconstruction  and  Development 
(EBRD)  is  being  extended  to  allow  activities  in  Egypt,  Jordan,  Morocco  and  Tunisia. 
Moreover up to EUR 100 million, partly coming from the EU budget, have been allocated to 
support  the  identification  and  preparation  of  projects.  Further  resources  (up  to  EUR  one 
billion)  will  be  mobilised  by  the  EBRD  through  its  Special  Funds  as  soon  as  enough 
shareholders  have  ratified  the  necessary  amendments  of  the  Agreement  Establishing  the 
EBRD9. Ongoing assistance under the European Neighbourhood and Partnership Instrument 
has also been reoriented to promote SME development and support job creation initiatives in 
Algeria, Egypt, Jordan and Tunisia in particular.  

At  the  end  of  2011,  total  Neighbourhood  Investment  Facility  (NIF)  allocations  reached 
EUR  400  million  (of  which  EUR  174  million  for  the  East  and  EUR  226  million  for  the 
South), leveraging projects with a total cost of EUR 13.6 billion (of which EUR 4.2 billion for 
the  East  and  EUR  9.4  billion  for  the  South).  The  substantial  increase  in  grant  funding 
available  under  the  NIF  for  the  period  2011-13  (EUR  450  million)  should  ensure,  through 
leveraging, that increased lending resources rapidly translate into investments in infrastructure 
(environment  and  climate  change,  interconnections  with  partner  countries)  and  SMEs,  thus 
helping to address unemployment throughout the neighbourhood.  

7 
8 
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COM (2011) 200 of 08.03.2011 
€ 1 billion for EU’ Southern Neighbourhood an d € 150 million for EU’s Eastern Neighbourhood. 
In December 2011, the Commission adopted the proposal for a decision of the European Parliament and 
the Council on the EU ratification of the amendments (COM (2011) 905 of 21.12.2011). 

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The  EU  aims  to  strengthen  its  support  for  risk  capital  operations  in  the  Southern 
Neighbourhood  through  the  Facility  of  Euro-Mediterranean  Investment  and  Partnership 
(FEMIP)  and  is  developing  further  options  to  support  risk  capital  operations  and  guarantee 
schemes in the Eastern Neighbourhood with the EIB, the EBRD and other European financial 
institutions. 

In December, the Commission adopted the legislative proposal for a new financial instrument, 
the  European  Neighbourhood  Instrument  (ENI)  that  is  designed  to  replace  the  current 
European Neighbourhood and Partnership Instrument (ENPI) as of 2014. Compared with the 
current instrument the ENI will further strengthen the link between policy and assistance and 
provide  for  a  higher  level  of  differentiation  in cooperation with  partner  countries,  reflecting 
their  commitment  to  universal  values,  progress  in  deep  democratisation  and  jointly  agreed 
objectives. It will focus co-operation activities on fewer key policy objectives thus increasing 
impact.  It  will  reduce  the  complexity  and  length  of  the  programming  process  and  simplify 
implementation provisions, including those relating to cross border co-operation at the EU’s 
external  borders.  Its  proposed  financial  envelope  of  EUR  18.2  billion  for  seven  years 
represents an increase of 22% in real terms in relation to the current financial perspective. The 
ENI will contribute to EU objective of increasing the climate related proportion of the Union 
budget  to  at  least  20%  in  accordance  with  the  intent  stated  in  the  Commission  June  2011 
Communication on the 2014 – 2020 Multiannual Financial Framework10.  

2.5 

A more joined-up approach with other EU institutions 

The review of the ENP in 2011 has led to a large debate among all EU institutions and a broad 
consensus on the need for a stronger EU engagement in the neighbourhood. In particular, the 
European  Parliament  has  adopted  an  important  report  on  the  ENP  in  December.  There  has 
been a noticeable increase in the frequency of interactions between the European Parliament, 
the Commission and the High Representative on the ENP in relations with individual partners. 

In  addition,  the  European  Parliament  has  increased  its  contacts  and  cooperation  with  ENP 
partners'  elected  assemblies,  in  an  effort  to  improve  political  dialogue  and  strengthen  their 
capacity  to  hold  governments  accountable.  The  Euronest  and  the  UfM  Parliamentary 
Assembly  have  developed  their  activities.  Also,  both  the  European  Economic  and  Social 
Committee  and  the  Committee  of  the  Regions  (in  particular  through  the  ARLEM  and 
CORLEAP assemblies) have increased their involvement. 

2.6 

A joined-up approach with other donor countries and international institutions  

The  EU  is  co-operating  closely  with  other  donor  countries  and  international  institutions  to 
respond  to  humanitarian  crises,  to  promote  democratic  transition  and  to  foster  economic 
development in partner countries.  

Throughout  the  Libyan  crisis  the  EU  has  been  at  the  forefront  of  the  international 
humanitarian  response  acting  in  close  co-ordination  with  other  donors  and  international 
organisations  so  as  to  ensure  that  needs  were  promptly  identified  and  aid  delivered  rapidly 
and effectively.  

The  EU  has  decisively  contributed  to  establishing  the  G-8  Deauville  Partnership  initiative 
which  coordinates  international  efforts  to  support  democratic  transition  in  the  Southern 
Mediterranean and it co-operates closely with the international organisations that during the 

10 

COM (2011) 500 final of 29.6.2011, "A budget for Europe 2020". 

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G8  Finance  Ministers  Meeting  in  Marseille  in  September  have  pledged  support  to  the 
Deauville  Partnership.  Through  its  Macro-Financial  Assistance  instrument  the  EU  also  co-
operates closely with the International Monetary Fund and other international organisations in 
helping  the  concerned  partner  countries11  addressing  macro-economic  imbalances  and 
pursuing growth oriented structural reform. 

Countries such as Russia and Turkey have the potential to make an important contribution to 
regional stability. Switzerland has participated at the highest level in the meeting of the EU 
Tunisia Task Force. 

Moreover, in the context of the Eastern Partnership, an Information and Co-ordination Group 
including non EU countries and interested International Financial Institutions promotes donor 
co-ordination and, more generally, fosters the development of the Eastern Partnership. 

3. 

LOOKING TO THE FUTURE 

The year 2011 has been one of change in the EU neighbourhood. Although the first signs are 
encouraging, sustained efforts are needed to consolidate this progress. Many societies in our 
partner countries are undergoing far-reaching change. Understanding and respecting the pace 
of  each  society's  own  reforms  process  is  fundamental.  It  requires  constant  dialogue,  careful 
attention  and  close  monitoring  by  the  EU.  There  are  a  number  of  issues  on  which  partner 
countries need to step up their reform efforts and there are aspects of its offer where the EU 
needs to deliver more promptly.  

3.1. 

Challenges ahead 

Sustainable democracy 

Democratic  transformation  in  a  number  of  southern  neighbours  is  bringing  new  political 
parties to the centre of the political scene, in particular, but not exclusively, parties that have 
Islamic roots. The EU needs, and is open to developing its dialogue with these parties as well 
as  with  all  democratically  elected  governments.  Existing  tools  and  also  the  European 
Endowment  for  Democracy,  once  it  is  established,  could  foster  dialogue  and  promote  the 
exchange of experiences with EU political parties.  

Until the next Summit, Eastern European partners shall continue to implement the broad and 
substantive  agenda  of  the  Eastern  Partnership  as  set  out  in  the  Roadmap.  In  this  respect, 
consolidating democracy remains essential, with the forthcoming parliamentary elections in 
Armenia,  Georgia  and  Ukraine  as  key  milestones  for  these  three  countries.  In  the  southern 
neighbourhood, the forthcoming elections in Algeria, Jordan, Libya, and Tunisia will be also 
be very important to anchor more deeply the democratisation process. 

Freedom of expression, association and assembly needs to be fully guaranteed in law and in 
practice, and a strong culture of respect for human rights must be established across the board 
in particular the protection against all forms of discrimination in politics as well as day-to-day 
life. To that end partner countries are invited to address the specific recommendations made to 
them  on  these  issues  in  the  Country  Progress  Reports  accompanying  this  Communication. 
This  will  secure  a  space  where  civil  society  can  play  its  crucial  role  as  an  agent  for 

11 

Armenia, the Republic of Moldova, Ukraine and in future, possibly, Egypt and Georgia. 

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democratisation  ensuring  the  sustainability  and  inclusiveness  in  the  reform  process.  As  the 
Civil  Society  Facility  becomes  fully  operational  the  EU  will  be  in  a  position  to  provide 
enhanced  support.  In  the  southern  neighbourhood,  the  Anna  Lindh  Foundation  should 
contribute  to  advancing  the  inter-cultural  dialogue  among  Civil  Society  Organisations  by 
identifying  actors  for  change  and  connecting  organisations  which  do  not  normally  interact 
thus promoting a dialogue with EU organisations. 

Women  have  been  key  players  in  the  Arab  Spring,  and  they  should  not  lose  out  in  the 
subsequent transformations.  The  EU  will continue to step up  its efforts to  support women’s 
rights  across  the  region,  ensure  that  gender  equality  is  mainstreamed  into  all  relevant  co-
operation activities and promote effective action against trafficking across the neighbourhood.  

Throughout the neighbourhood more efforts are needed to build an efficient and independent 
judiciary, so as to ensure citizens’ right to a fair trial ensuring legal certainty for business 
and  investors  through  impartial  judicial  decisions.  Security  sector  reform  is  also  central  to 
sustainable  democratisation.  To  support  their  efforts  the  EU,  using  the  additional  resources 
that became available following last year’s policy review, is ready to step up its technical and 
financial support in the context of national comprehensive strategies. 

Inclusive economic development and trade 

Unemployment,  social  exclusion,  inequality  and  poverty  are  at  the  heart  of  people's 
concerns for the future. They are among the root causes of instability and unrest and need to 
be  addressed  to  make  democratisation  sustainable.  They  require  partner  countries  to  reform 
and  adopt  an  integrated  approach  with  a  mix  of  economic,  fiscal,  employment,  social  and 
education policies. The EU is ready to support such reforms through targeted measures aimed 
at promoting social cohesion and employment (in particular of young people).  

To promote EU investments in partner countries the EU has included investment protection 
in  the  scope  of  the  DCFTAs  to  be  negotiated  with  Egypt,  Jordan,  Morocco  and  Tunisia.  It 
intends to negotiate similar provisions gradually with other neighbouring countries either as 
separate agreements or in the context of future DCFTAs. In partnership with the OECD and 
the World Bank, the Commission will launch next June a scheme for lowering the insurance 
costs  of  large  scale  investment  in  the  Southern  Mediterranean  region,  in  order  to  increase 
foreign direct investments in the region. Work has also progressed in preparing the ground for 
an  EU  wide  guarantee  mechanism  providing  coverage  against  political  risk  to  investments 
made  by  EU  SMEs  in  partner  countries  SMEs.  This  scheme,  which  will  cover  the  entire 
neighbourhood,  should  be  launched  by  the  end  of  the  year.  Finally,  consultations  have 
confirmed  the  advisability  of  extending  the  geographical  remit  of  the  European  Investment 
Fund (EIF) to explicitly cover neighbouring countries. The Commission intends  to  propose, 
later this year, that the EIF Board amends the EIF statute to that effect. This will, inter alia, 
facilitate  the  participation  of  partner  countries  in  future  EU  programmes  such  as  the 
Programme for Competitiveness, Enterprise and SMEs (COSME).  

The  regulatory  convergence  implied  by  the  DCFTAs  in  fields  as  diverse  as  sanitary  and 
phytosanitary  issues,  technical  regulations,  customs  procedures,  public  procurement  and 
competition will require very substantial efforts by the partners to reform their legislation and 
develop  the  means  to  implement  and  enforce  it.  The  fight  against  corruption  and  fraud  and 
strengthening  public  finance  management  are  part  of  these  efforts.  The  EU  is  committed  to 
increasing its support for these efforts by providing further institution building assistance. 

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Mobility 

The mobility agenda needs to be taken forward. For EU Eastern neighbours this means the 
conclusion  of  visa  facilitation  and  readmission  agreements  with  Armenia,  Azerbaijan  and 
Belarus, as well as the launching of visa dialogues first with Georgia, and then with Armenia 
and Azerbaijan. Ukraine and the Republic of Moldova will wish to progress towards the full 
implementation of their Visa Liberalisation Action Plans. Azerbaijan expressed an interest to 
negotiate  a  mobility  partnership  along  the  lines  of  those  concluded  with  other  Eastern 
neighbours. For EU Southern neighbours this means establishing mobility partnerships with 
Morocco and Tunisia and initiating mobility dialogues with Egypt and Jordan. 

In order to meet the objectives in the area of education, to promote business contacts, cultural 
exchanges and people-to-people contacts, the High Representative and the Commission invite 
the  EU  Member  States  to  make  more  systematic  use  of  the  possibilities  provided  by  the 
European Visa Code. In particular multi-entry visas should be provided to people that would 
be able to justify the need of travelling regularly and in good faith to the EU for business or 
for  family  links,  as  well  as,  representatives  of  civil  society  organisations  and  students 
participating  in  EU  funded  programmes.  The  visa  fee  should  be  waived  for  young  people 
under  the  age  of  25  participating  in  seminars,  conferences,  sports,  cultural  and  educational 
events organised by non-profit organizations, and for children under the age of 12.  

Sector Co-operation 

The EU’s values of respect of human rights, democracy and the rule of law underpin the EU 
and  define  cooperation  among  its  Member  States;  they  are  also  reflected  in  the  EU's  laws, 
norms  and  standards.  Taking  over  EU  norms  and  standards  through  sector  cooperation  will 
respond to the partners’ wish to  come closer to the  EU, and, crucially, it will promote such 
values.  Sector  reform  and  cooperation  thus  contributes  to  better  political  and  economic 
governance, political  and  administrative  transparency  and  accountability,  socio-economic 
development, conflict prevention and resolution, state building, and civil society involvement. 

In many sectors, notably transport and energy, the Commission is developing a special focus 
on  the  ENP  region  and  intends  to  develop  this  approach  more  widely12.  In  this  spirit  and 
without attempting to be comprehensive this joint Communication highlights in the following 
paragraphs  a  number  of  sector  issues  where  the  EU  and  partner  countries  could  co-operate 
more closely with a view of achieving concrete results in the next few years.  

•  On energy the Commission will continue to support the development of the Southern Gas 
Corridor. It will also continue to work with the Eastern European neighbours on security of 
energy transit, based on transparent operation of the network. Furthermore, it will consult 
Southern  Mediterranean  partners  in  2012  to  establish  energy  partnerships  as  a  first  step 
towards  regional  electricity  and  renewable  energy  market  integration,  with  the  long-term 
perspective of establishing an EU-Southern Mediterranean Energy Community.  

•  In  the  area  of  industrial  and  enterprise  policy,  the  Euro-Mediterranean  Charter  for 
Enterprise  should  be  upgraded  into  a  Euro-Mediterranean  Small  Business  Act  and  EU 
cross-sector  and  sector-specific  networks  and  action  should  be  extended  to  Southern 

12 

See in particular the Commission Communications: "The EU and its neighbouring regions: a renewed 
approach  to  transport  cooperation",  COM  (2011)  415  of  07.07.2011  and  "The  EU  Energy  policy: 
Engaging with partners beyond our border", COM (2011) 539 of 07.09.2011.  

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Mediterranean  partners.  Information  and  best  practices  on  sustainable  tourism  should  be 
exchanged. 

•  In the area of air transport, negotiations on the conclusion of comprehensive air services 
agreements  should  be  accelerated  with  Ukraine,  re-launched  with  Tunisia  and  initiated 
with Azerbaijan in 2012.  

•  The  EU  will  continue  to  promote  modern  customs  practices  and  procedures  towards 
maximum  trade  facilitation,  including  through  the  implementation  of  the  Strategic 
Frameworks for Customs Cooperation with the Eastern partners and the ongoing and future 
DCFTA negotiations. 

•  The EU will support partner countries’ capacities to tackle environmental degradation and 
promote  sustainable  use  of  natural  resources,  including  in  the  areas  of  water,  industrial 
pollution,  hazardous  pesticides,  air  quality,  waste  management,  nature  conservation  and 
forest management, and to strengthen environmental information systems and governance. 
The EU will assist partner countries to better integrate environmental considerations into 
other sector policies to promote a transition to a greener economy, including through more 
sustainable  consumption  and  production.  The  EU  will  also  strengthen  cooperation  with 
ENP partners on the 2012 UN World Conference on Sustainable Development. 

•  The design and implementation of ambitious climate policies is a key challenge on which 
the EU is ready to closely co-operate with partner countries. The EU will support partners’ 
transition  towards  low  carbon  development  and  climate  resilience  through  capacity 
building,  information  sharing  and  investments.  This  will  help  partners  to  implement  the 
Cancun  and  Durban  agreements  and  in  particular  devise  low  emission  development 
strategies,  enhance  their  climate  resilience  and  provide  updated  information  on  target  or 
actions that they will implement.  

•  The Information Society policy within the ENP aims at securing a fair, modern, open and 
transparent market for telecommunications, an open and vibrant use of the internet for all 
and  a  diverse  media  environment.  Ensuring  the  security,  stability  and  resilience  of  the 
internet  and  other  electronic  communication  technologies  is  a  fundamental  building 
block for democracy and for the creation of a dynamic and innovative business climate. In 
order to exploit fully the growth and productivity potential of the Information Society, the 
Commission  will  support  further  regulatory  reforms  including  through  regulators' 
networks.  The  Mediterranean  regulators’  network  will  be  strengthened  and  an  Eastern 
network  will  be  established.  The  Commission  will  also  support  enhancement  of  the 
electronic communications environment in areas ranging from network interconnection to 
e-health.  Equally,  it  will  improve  the  high  speed  connectivity  of  the  regional  e-
infrastructures  for  research  and  education.  The  active  and  democratic  use  of  ICT  and 
internet,  as  well  as  steps  towards  a  transparent  and  efficient  audiovisual  and  media 
regulatory environment will also be promoted. 

•  Regarding  the  development  towards  a  “Common  Knowledge  and  Innovation  Space”, 
the Commission will intensify cooperation with partners and support better networking and 
co-ordination between partner countries and the EU in the setting and synchronisation of 
research  priorities.  With  a  view  to  promoting  greater  involvement  of  ENP  research 
communities  in  the  7th  Framework  programme  for  Research  and  Technological 
Development  (FP  7),  the  Commission  will  support  partner  countries  in  building  up 
research capacity, promote the increased collaboration of between ENP and EU researchers 

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and research organisation and help to strengthen the FP 7 network of Contact Points. The 
Commission  will  support  special  information  events  on  FP  7  opportunities.  The 
Commission  stands  furthermore  ready  to  negotiate  with  ENP  partners  memoranda  of 
understanding for their association to the follow-up of FP 7. 

•  The new European Neighbourhood Programme for Agriculture and Rural Development 
(ENPARD)  will  help  partner  countries  to  operate  more  effectively  in  foreign  markets,  to 
benefit  fully  from  the  future  DCFTAs,  and  to  stimulate  farming  domestically.  In  that 
framework,  the  Commission  will  be  engaging  in  close  policy  dialogues  with  partner 
countries  to  promote  long-term  agricultural  and  rural  development  strategies  in  close  co-
operation with all relevant stakeholders.  

•  On statistics, the EU will support the adoption of the European statistics code of practice, 
including  the  principle  of  independence  of  the  statistics  producers;  the  production  and 
dissemination of high quality statistics covering key socio-economic areas, in line with EU 
standards and methodologies; and the use of statistics for evidence-based decision making, 
a  key  component  of  good  governance.  The  EU  will  reinforce  the  peer-to-peer  assistance 
and the regional dimension of the support to this work. 

•  In the area of maritime policy, the EU will strengthen its co-operation with its neighbours 
with the view to encourage the development of common targets for achieving sustainable 
growth and jobs from traditional and emerging maritime sectors, of pilot projects in areas 
of  regional  interest,  and  bring  further  consistency  in  actions  financed  by  internal  and 
external EU financial instruments in this regard. In the Mediterranean region specifically, 
the Commission, together with the EIB and IMO, will launch a joint initiative to leverage 
private  sector  investments  and  involvement  of  financing  institutions  in  the  maritime 
sectors, notably in the domains of infrastructure, training and maritime surveillance. It will 
also  intensify  co-operation  with  coastal  partner  countries  in  the  context  of  Regional 
Fisheries  Management  Organisations  so  as  to  promote  a  more  sustainable  use  of  fishery 
resources, re-enforce fisheries monitoring and combat illegal, unreported and unregulated 
fishing.  

The  new  generation  of  ENP  Action  Plans  (or  equivalent  documents)  being  negotiated  with 
many partners will provide an updated policy framework which should ensure that the EU and 
the  Member  States  can  better  co-ordinate  financial  and  technical  assistance.  The 
programming  process  that  will  start  in  the  second  half  of  this  year  under  the  new  ENI 
provides a real opportunity to interested Member States to programme their assistance jointly 
with the EU. 

Regional co-operation  

The  Arab  Spring  offers  new  opportunities  for  regional  cooperation  in  the  Southern 
Neighbourhood.  Many  of  the  challenges  facing  partner  countries  can  only  be  taken  up 
effectively at regional or sub-regional level. The EU took over the Northern Co-Presidency of 
the Union for the Mediterranean (UfM). This will enhance the complementarity of the UfM 
with the ENP and the effectiveness of EU support to the Southern Mediterranean countries. 
The EU will continue to support the Secretariat of the UfM as a catalyst for projects bringing 
tangible benefits for the people across the Mediterranean. The Commission is also determined 
to give a new impetus the sectoral dialogues under the UfM.  

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The EU has also developed a more structured dialogue with the League of Arab States (LAS), 
including regular meetings between the High Representative and the Secretary General of the 
LAS,  and  has  initiated  concrete  cooperation,  including  the  creation  of  the  LAS  Situation 
Room and the training of diplomats or election monitors.  

There are already encouraging signs of an improved dialogue between Algeria and Morocco, 
opening the way for stronger sub-regional co-operation in the Maghreb, also in the context of 
the  5+5  group.  The  EU  is  ready  to  support  this  and  other  regional  and  sub-regional  co-
operation and integration processes, and to co-operate with the relevant regional organisations 
and processes. In this context, the High Representative and the Commission intend to make 
proposals  for  strengthening  relations  between  the  EU  and  the  Maghreb  in  the  joint 
Communication  to  be  prepared  in  coming  months,  provided  that  the  Maghreb  partner 
countries demonstrate clear signs of progress in their regional cooperation effort. 

In  response  to  the  March  European  Council  call  for  a  roadmap  to  define  and  guide  the 
implementation of the EU policy vis-à-vis our Southern Mediterranean partners, the report on 
the implementation of the Partnership for Democracy and Shared Prosperity accompanying 
this  joint  Communication  outlines  the  objectives  to  be  pursued,  the  instruments  to  be 
deployed and the actions to be implemented until the end of 2013. 

In  the  Eastern  Neighbourhood,  there  has  been  increased  regional  cooperation  on  border 
management, in the context of the EU Border Assistance Mission to the Republic of Moldova 
and Ukraine (EUBAM) and the Southern Caucasus Integrated Border Management (SCIBM) 
project. The  joint  Communication on the Eastern Partnership Roadmap gives greater details 
on activities envisaged in the EaP framework. 

CONCLUSIONS 

Last May the EU completed a major overhaul of its European Neighbourhood Policy. It did so 
in response to multiple challenges: the need to support the process of democratisation that is 
sweeping across the entire EU Southern Neighbourhood; the European aspirations of some of 
our Eastern European Partners and the need to deepen the Eastern Partnership; and the new 
opportunities  offered  by  the  entry  into  force  of  the  Lisbon  Treaty.  One  year  on,  this 
assessment provides a promising picture. In many respects the EU’s neighbourhood is today 
more democratic and more open to change than a year ago. The EU's new policy approach is 
firmly established. Most partner countries have welcomed it and a number of them are ready 
to  pursue  political  and  economic  reform  with  increased  determination  and  to  engage  more 
deeply with the EU.  

However, this is a time of transition. Countries are engaged in drawing up new constitutions, 
establishing  new  institutions,  building  internal  consensus  in  support  of  democratic 
transformation and electing new leaders. This will be a challenging and in some cases even a 
fraught process. Understandably, some countries will need to advance these internal processes 
further  before  fully  resuming  dialogue  with  the  EU  on  reforms  and  negotiations  that  could 
open  the  door  to  stronger  trade  ties,  deeper  economic  and  sector  integration,  and  easier 
mobility.  

In  this  situation,  it  is  important  for  the  EU  to  deliver  on  its  commitments  to  the  Southern 
Neighbourhood and to increase its engagement in the Eastern Neighbourhood. This will also 
contribute  to  the  EU's  own  security  and  prosperity.  The  EU’s  credibility  as  a  global  player 
will depend to a great extent on its capacity to act decisively in its neighbourhood. For this 

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reason,  and  in  spite  of  its  economic  difficulties,  the  EU  must  remain  open  and  outward 
looking, strengthen neighbourly relations even further and firmly support its partners’ efforts 
to make their countries more democratic, more prosperous and hence, more stable. 

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