JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in 2012 Regional Report: A Partnership for Democracy and Shared Prosperity with the Southern Mediterranean Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Mediterranean third countries, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

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

Brussels, 20.3.2013  
SWD(2013) 86 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in 2012 Regional Report: A 
Partnership for Democracy and Shared Prosperity with the Southern Mediterranean  

Accompanying the document 

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

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
{SWD(2013) 79 final} 
{SWD(2013) 80 final} 
{SWD(2013) 81 final} 
{SWD(2013) 82 final} 
{SWD(2013) 83 final} 
{SWD(2013) 84 final} 
{SWD(2013) 85 final} 
{SWD(2013) 87 final} 
{SWD(2013) 88 final} 
{SWD(2013) 89 final} 
{SWD(2013) 90 final} 
{SWD(2013) 91 final} 
{SWD(2013) 92 final} 
{SWD(2013) 93 final} 

EN 

   EN 

 
 
 
 
  
 
 
 
 
1.  

INTRODUCTION

1 

This  document  reviews  the  implementation  in  2012  of  the  'Roadmap  to  guide  the 
implementation  of  EU  policy  vis  à  vis  Southern  Mediterranean  Partners'2  issued  in  May 
2012.  

The  EU  response  to  the  changes  in  the  Arab  world  was  articulated  in  20113  when  the  EU 
offered  its  Mediterranean  partners 'A  Partnership  for  democracy  and  shared  prosperity'  in 
the context of the European Neighbourhood Policy (ENP). The partnership is founded on an 
incentive-based  approach  supporting  partners  committed  to  reforms.  It  focuses  on  three 
elements:  democratic  transformation,  a  partnership  with  people  and  civil  society,  and 
sustainable  and  inclusive  growth.  In  support  of  this  approach,  the  EU  has  ensured  coherent 
use  of  all  its  external  relations  instruments,  in  particular  development  assistance,  trade  and 
mobility.  The  Roadmap  set  objectives  to  be  pursued  under  the  partnership,  at  bilateral  and 
regional  levels,  and  the  achievements  expected  by  the  end  of  2013.  The  success  of  these 
efforts largely depends on a common approach bringing together EU Member States and on 
the commitment of Mediterranean partners to reform. 

2.  

SUMMARY  

Implementation  of  the  Roadmap  has  been  influenced  by  the  evolving  situations  of  the 
Mediterranean Partners in 2012. 

An increasingly diversified transition  

In  political  terms,  2012  was  dominated  by  the  successful  holding  of  democratic  elections 
(Egypt,  Algeria  and  Libya),  electoral  reforms  in  preparation  for  elections  in  Jordan  and 
Lebanon and the formation of new governments in most countries. The EU provided support 
to what were often the first truly democratic elections, through assistance or EU observation 
missions.  Multiparty  politics  gained  a  new  dynamic  and  civil  society  was  more  active  and 
vocal. 

In several countries, the electoral victory of parties inspired by Islam triggered open debates 
within institutions and civil society on the role of Islam in the new democratic set up. These 
debates  crystallised  around  the  constitutional  reforms  in  Egypt  and  Tunisia.  Transition 
governments  faced  the  need  to  build  a  political  consensus  on  democratic  reform,  limiting 
their ability to take decisive steps towards reforms. While it became clear that the process of 
democratic institution building will take time, particularly where legal uncertainty still clouds 
the  transition  process  (Egypt),  the  new  dynamism  of  political  parties  and  civil  society  is  a 
sign of the development of a democratic culture, which provides the EU with new channels 
for dialogue. At the same time, with the worsening of the security situation,  particularly in 

1 This Joint Staff Working Document concentrates on the situation in the countries of the 'Arab Spring', and does 
not describe the situation in the oPt or Israel. For the same reasons the report does not contain a detailed analysis 
of the situation in Syria.  
2  Partnership  for  Democracy  and  Shared  Prosperity:  Report  on  activities  in  2011  and  Roadmap  for  future 
action, accompanying the Commission communication: Delivering on a new European Neighbourhood Policy 
JOIN (2012) 114 final 15.05.2012   
3 A partnership for democracy and shared prosperity,  COM (2011) 200  8.03.2011 and A new response to a 
changing Neighbourhood, COM (2011) 303  25.05.2011. 

2

 
 
                                                 
Libya, Sinai and the Sahel, reforming the security sector inherited from the previous regimes, 
while  maintaining  law  and  order,  is  becoming  an  important  issue.  The  crisis  in  Syria  has 
reinforced regional divides and increasingly affected neighbouring countries while the more 
prominent role of public opinion is giving a new dimension to the urgency of resolving the 
Arab-Israeli conflict.  

On  the  economic  level,  political  uncertainties,  the  impossibility  of  implementing  greatly 
needed structural reforms in such a context and the ongoing euro area crisis continued to put a 
brake on economic activity. The fiscal deficits of the countries in the region remained high or 
even worsened in 2012, due to the weak economy and increased expenditure meant to meet 
vocal social demands. Unemployment levels edged up further from already high levels. The 
trade balance remains a serious matter of concern almost everywhere, and reserves generally 
remain at problematic levels, but overall, signs of a moderate economic recovery were visible, 
In  comparison  with  the  weak  performance  of  2011,  there  were  some  signs  of  stabilisation. 
The weighted growth rate in the region is expected to remain 2.5% in 2012. 

EU response: diplomatic engagement and increased support 

In this context, the EU pursued its policy of renewed engagement, bilaterally and at regional 
level, offering support to the transition while recognising that ownership lies with its partners. 

Throughout 2012, the European Council and the Foreign Affairs Council and the European 
Council held regular discussions on the Arab Spring and its follow-up, confirming the EU's 
support for the democratic transition and addressing country situations of particular concern. 
President José Manuel Barroso visited the region twice in 2012 (Israel/occupied Palestinian 
territories  (oPt)  and  Jordan).  The  High  Representative  for  Foreign  and  Security 
Policy/Commission  Vice-President  (HR/VP)  Catherine  Ashton  maintained  regular  contact 
with leaders of partner countries. Her frequent visits to the region (10 visits in 2012: January 
2012:  Israel/oPt  +  Jordan  and  an  additional  trip  to  Jordan,  February:  two  visits  to  Jordan, 
May: Israel/Jordan and an additional trip to Jordan, July: Egypt, October: Lebanon, Israel/oPt 
and Jordan, November: Morocco/Algeria and Egypt)), together with visits by Commissioner 
Štefan  Füle  (four  visits  in  2012:  Morocco,  Algeria,  Tunisia  and  Egypt)  and  other 
Commissioners,  underlined  Europe’s  political  commitment  to  the  region.  Meanwhile  the 
visits  to  Brussels  by  the  newly  elected  Egyptian  President  Mohammed  Morsi  and  the 
Tunisian Prime Minister Hamadi Jebali, as well as other regional leaders, including Jordanian 
King Abdullah and Lebanese Prime Minister Najib Miqati highlighted their desire to engage 
with the EU. 

In  the  case  of  Syria,  the  EU  repeatedly  condemned  the  ongoing  human  rights  violations, 
decided  several  rounds  of  restrictive  measures  against  the  Syrian  regime,  and  provided 
humanitarian aid to Internally Displaced Persons and refugees. The EU deployed diplomatic 
efforts to facilitate a peaceful solution to the crisis, giving support to the UN-League of Arab 
States Special Envoys, participating in the 'Friends of Syria' meetings, and supporting efforts 
to foster a unified and representative opposition. 

At  the  regional  level,  the  transfer  of  the  Union  for  the  Mediterranean  (UfM)  Northern  co-
presidency  to  the  EU  and  the  assumption  of  the  Southern  UfM  co-presidency  by  Jordan 
signalled  a  renewed  willingness  on  both  sides  of  the  Mediterranean  to  turn  the  UfM  as  a 
unique  forum  of  43  members4  into  an  effective  catalyst  for  the  development  of  regional 

4 Syria’s participation is currently suspended, so cooperation continues among 42 countries.  

3

 
 
                                                 
projects. The EU–League of Arab States Ministerial Meeting held in November gave a clear 
political  message  that  EU  and  Arab  ministers  alike  were  committed  to  cooperating  in 
addressing their common challenges. 

The EU Special Representative for the Southern Mediterranean contributed to enhancing the 
effectiveness and visibility of the EU through developing dialogue with all parties involved in 
transition process. Together with the European External Action Service and the Commission 
services, the Special Representative organised successful Task Forces for Jordan in February 
and Egypt in November, working together with two countries and bringing expertise from the 
EU,  its  Member  States,  the  European  Investment  Bank  (EIB),  the  European  Bank  for 
Reconstruction  and  Development  (EBRD)  and  other  International  Financial  Institutions  and 
the private sector to support the transition. 

The  EU  made  full  use  of  the  institutional  channels  developed  under  the  ENP,  such  as 
Association  Councils  (four  took  place  in  2012  —  with  Morocco,  Tunisia,  Lebanon  and 
Algeria)  and  Committees  to  deepen  the  dialogue  with  partners.  ENP  Action  Plans  (APs) 
remain key instruments to promote reforms in partner countries. Although the reforms set out 
in  the  APs  are  mostly  implemented  by  partners,  they  are  identified  jointly  and  serve  as  the 
basis of EU support during the implementation. Discussions on the first AP under Morocco’s 
Advanced  Status  were  finalised.  Similarly,  a  new  AP  was  agreed  with  Tunisia  allowing 
relations  to  be  upgraded.  Negotiations  on  the  AP  with  the  oPt  were  completed,  and,  in 
response to Algeria’s interest in engaging with the ENP, discussions began on a first EU — 
Algeria AP. The completion of AP negotiations with Lebanon also clearly demonstrates the 
desire and effective upgrade of Lebanese engagement with the EU in 2012. 

The EU further implemented its support to the transition countries, mobilising new resources  
in development assistance and loans, and offering increased market integration and Mobility 
Partnerships and participation in EU programmes and agencies. 

Under the multi-country 'Support for Partnership, Reform and Inclusive Growth' (SPRING) 
programme, EUR 285 million was committed as additional assistance in 2012. A joint letter 
by  the  HR/VP  and  Commissioner  Füle  to  EU  Member  States  in  February  outlined  how  to 
translate  the  new  ENP  incentive-based  approach  into  country  allocations.  In  Jordan,  for 
example, SPRING was implemented in two tranches, with the release of the second tranche 
based on clear progress on benchmarks linked to the democratisation reform process in the 
political, economic and social areas. 

Following decisions in 2011, EIB lending potential for the region increased by EUR 1 billion 
(with  an  additional  EUR 700  million  for  projects  related  to  climate  change).  Together  with 
other  partners,  the  EU  approved  the  enlargement  of  the  EBRD  mandate  to  the  South 
Mediterranean,  enabling  the  region  to  tap  into  an  additional  EUR 1  billion  in  lending 
resources.  Preparatory  work  on  negotiations  on  a  Deep  and  Comprehensive  Free  Trade 
Agreement (DCFTA) was completed with Morocco and  advanced well with Tunisia,  while 
discussions on Mobility Partnerships were held with both countries. 

Overall,  there  has  been  good  progress  in  achieving  the  targets  set  in  the  Roadmap.  At  the 
same time, developments in 2012 highlighted that there is no 'quick fix' to transition. Efforts 
to  build  democratic  institutions  and  attract  investment  for  more  inclusive  growth  cannot 
produce  effects  overnight.  The  very  nature  of  transition  means  that  new  governments  need 
time  to  fully  exploit  the  potential  of  EU  offers  of  support.  In  this  complex  diverse  context, 
throughout  2012  the  EU  demonstrated  its  commitment  to  being  a  key  reliable  partner  for 

4

 
 
societies intent on building democracy and shared prosperity.  

Further  progress  in  2013  will  depend  on  partners’  commitment  to  actively  pursuing  the 
transition  to  democracy  and  clearly  outlining  and  implementing  reform  to  achieve  inclusive 
growth. The EU will have to pursue its engagement to develop dialogue, explain its incentive-
based offer and explore options for making further progress towards better-managed mobility 
and improved access to the EU internal market. 

3.  

IMPLEMENTATION OF THE ROADMAP VIS À VIS SOUTHERN MEDITERRANEAN PARTNERS  

3.1. Building sustainable democracy  

Objectives 

Building sustainable democracies where the right to vote is accompanied by: 

•  Rights to exercise free speech, to form associations and competing political parties, and 
to rely on impartial justice, security provided by accountable police and army forces, and 
a competent and non-corrupt civil service; 

•  Civil and human rights such as the freedom of thought, conscience and religion; 

•  The establishment of a direct and genuine partnership and cooperation with society and 

its representatives. 

Implementation  

Human rights and democracy 

While reforms begun in the context of the Arab Spring have marked advances in democratic 
participation  and  human  rights  protection,  the  transition  process  differs  from  country  to 
country and is not moving at the same pace everywhere. 

Overall,  progress  has  been  achieved  in  political  representation,  and  elections  in  the  region 
have  been  held  in  line  with  international  standards.  In  Egypt,  parliamentary  elections  were 
held under judicial supervision and were found to be free and fair. However, some restrictions 
were  made  on  foreign  monitors  during  the  presidential  elections  in  May.  Parliamentary 
elections were held in Libya and Algeria, while municipal elections in Palestine marked a step 
towards  the  restoration  of  democratic  accountability.  As  regards  EU  election  support, 
Instrument  for  Stability  (IfS) support enabled the National  Election Supervision Commission 
of Tunisia to develop good practices and assess lessons learned. In Egypt, the authorities did 
not accept the EU’s offer to deploy a fully-fledged Election Observation Mission (EOM) but 
an  Expert  Mission  was  present.  In  Algeria,  the  EU  deployed  an  EOM  for  the  legislative 
elections. In Libya, the EU observed the electoral process with an Election Assessment Team, 
and  provided  technical  support  to  the  electoral  process  through  the  European  Instrument  for 
Democracy  and  Human  Rights  (EIDHR).  In  Jordan,  the  EU  was  invited  for  the  first  time  to 
observe the parliamentary elections held in January 2013. 

Regarding the drafting of electoral laws, some progress was made in Jordan and Tunisia. In 
Tunisia,  the  EU,  together  with  the  United  Nations  Development  Programme  (UNDP),  is 
assisting with the drafting process. In Jordan, a new election law was adopted but Jordanians 

5

 
 
of  Palestinian  origin  are  still  under-represented.  The  Political  Parties  Law  adopted  in  May 
2012  included  gender  requirements  and  a  prohibition  on  forming  parties  on  a  religious, 
sectarian, ethnic or factional basis. New parties are regularly formed in Egypt. 

Reforms  to  ensure  the  independence  of  the  judiciary  are  ongoing  in  Egypt,  Lebanon, 
Morocco and Tunisia. However, in Lebanon and Morocco political power is still enmeshed in 
the  judiciary  and  Jordan  is  experiencing  delays  in  adopting  a  law  on  the  judiciary.  Efforts 
need to be made to ensure fair trials. There are concerns in Egypt with the continuation of 
trials under emergency courts although the state of emergency was lifted in May 2012. 

Death penalties have continued to be issued, even if there has been a de facto moratorium in 
countries  such  as  Jordan,  Tunisia  and  Morocco.  Despite  a  few  institutional  steps  forward, 
there is no progress regarding prison conditions and torture. In Lebanon the existing law is 
not  systematically  applied.  Egypt  has  announced  its  will  to  reform  the  police,  including 
measures against torture, but it is unclear how this will materialise. 

The EU provided around EUR 80 million in support for the countries of the region in the area 
of justice and the rule of law. 

The countries in the region are parties to many of the main international and regional human 
rights treaties, but do not adhere to many of their optional protocols. Progress has been noted 
in civil society development (especially in Morocco and Tunisia). However much still needs 
to  be  improved.  Concerns  about  the  protection  of  women’s  rights  remain,  including  in 
relation to debates on constitutional reform. 

Public  pledges  to  enhance  the  fight  against  corruption  were  made.  Egypt  pledged  to 
improve  administrative  transparency  and  started  prosecuting  high  profile  corruption  cases 
(further discrediting  the  former  regime).  In  Jordan,  high  profile  corruption  cases  are  also 
prosecuted and members of parliament obtained the right to refer allegations of misconduct by 
government  ministers  to  the  Attorney-General.  In  October,  Morocco  presented  a  draft  bill 
giving extended powers to the central body for the prevention of corruption. Still, corruption 
remains a concern in the region. 

In  this  context,  the  EU  has  revised  its  guidelines  on  the  use  of  budget  support,  with  a  new 
eligibility criterion on transparency and oversight of public finances. Fundamental values are 
a pre-condition for the ‘good governance and development’ contracts used to provide budget 
support  to  governments.  Moreover,  the  EU  provides  more  than  EUR 101 million  for  public 
finance  management:  EUR 46.6  million  for  sector  budget  support  and  the  rest  as  technical 
assistance.  The  fight  against  corruption  is  also  tackled  through  projects  under  the  European 
Neighbourhood and Partnership Instrument (ENPI) and EIDHR. 

The  EU  is  providing  considerable  support  to  improve  governance  and  socio-economic 
development. As enshrined in the March 2011 Joint Communication from the HR/VP and the 
Commission, an incentive-based approach (‘more for more’) is being applied in EU relations 
with  the  Southern  Neighbourhood.  A  new  generation  of  Action  Plans  including  detailed 
provisions on democracy, human rights and good governance is being agreed with partners. 
Benchmarks  for  democratic  transition  in  the  Southern  Mediterranean  have  been  set  in  the 
areas  of  freedom  of  expression  and  media;  association  and  assembly;  religion  and  belief; 
women’s rights; transparent elections; and the independence of the judiciary. 

 To support political actors striving for democratic change in their countries, in 2011 the High 

6

 
 
Representative  and  the  Commission  proposed  to  establish  a  European  Endowment  for 
Democracy (EED). Important steps were taken in 2012 to organise and launch the EED as an 
independent  European  non-profit  foundation,  with  the  participation  of  representatives  of 
Member  States, 
the  High 
Representative  and  civil  society  organisations.  The  Commission  and  a  number  of  Member 
States  already  committed  funding  of  EUR  15  million  (of  which  EUR  6  million  from  the 
Commission), which should allow the EED to become fully operational in 2013. 

the  European  Parliament, 

  Commission, 

the  European 

The EU also provided support to the Council  of  Europe  (CoE) through a EUR 4.8  million 
programme  ‘Strengthening Democratic Reform in the Southern Mediterranean’. It started in 
Tunisia  and  Morocco  focusing  on  improving  court  performance;  the  independence  and 
transparency  of  the  judicial  system;  good  governance;  and  the  fight  against  corruption. 
Morocco  acceded  to  one  CoE  convention  and  indicated  its  willingness  to  accede  to  many 
others. A CoE office was opened in Tunis and another will be opened in Rabat. 

Concrete  projects  are  promoting  women´s  rights;  gender  equality  in  transitional  justice-
related  policies;  strengthening  the  social  and  economic  protection  of  women  in  rural  areas; 
promoting  social-professional  integration  of  single  mothers;  AND  developing  strategies  to 
improve  women’s  access  to  employment  and  entrepreneurship.  The  EU  made  a  EUR  7 
million  contribution  in  April  to  UN  Women  to  activities  in  SUPPORT  of  women's 
empowerment and added EUR 4 million in December targeting Egyptian women. 

In  the  context  of  good  governance  and  the  rule  of  law,  the  EU  is  keen  to  support  security 
sector reform on the basis of a consensus within the partner country. A Border Management 
Needs Assessment for Libya was funded under the IfS (April-May). A Common Security and 
Defence Policy (CSDP) fact-finding mission was conducted in November 2012 and planning 
is progressing with Libyan authorities on a potential Civilian Border Security CSDP mission 
in  2013.  A  peer  review  of  the  security  sector  reform  is  under  discussion  with  the  Tunisian 
authorities. 

A partnership with societies 

A strong civil society is essential for the success of the transition. Overall, the voice of civil 
society is now more listened to by partner governments and EU contacts with Mediterranean 
civil  society  were  strengthened  in  2012.  Public  consultations  are  increasing  in  Tunisia  and 
Lebanon.  However,  in  countries  such  as  Egypt,  expectations  were  not  met  with  concrete 
improvements, as shown in the case of the controversial NGO law. 

Progress  towards  freedom  of  association  and  assembly  is  unequal.  Tunisia  and  Libya 
witnessed a blossoming of new civil society organisations (CSOs). However CSO registration 
continued  to  be  subject  to  discretionary  powers  in  Morocco,  Algeria,  Jordan,  the  oPt  and 
Egypt.  While  protests  were  largely  tolerated  in  2012,  cases  of  violence  and  arbitrary  arrest 
against  peaceful  demonstrators  were  reported  in  most  countries.  Freedom  of  expression 
increased although censorship, including auto-censorship, and other types of interference by 
the authorities, were recorded in almost all countries. 

Against this background, the EU channelled additional support to civil society in the region 
through the Civil Society Facility (CSF). EUR 12 million committed in the first phase (2011) 
focused  on  strengthening  the  capacity  of  CSOs  in  order  to  promote  reform  and  increase 
public accountability, and support to CSO-led regional and country projects. A regional fund 
for  capacity  development  (EUR2  million)  was  put  in  place  with  the  aim  of  reinforcing  the 

7

 
 
existing initiatives, to make CSOs’ efforts more visible and to increase their involvement in 
policy dialogue. Similarly, national actions were launched, for example, to finance a resource 
centre for CSOs in Algeria and to build capacity among the main NGOs platforms in the oPt. 
2012 saw the adoption of the second phase of the CSF covering the period 2012–2013, with 
an  overall  budget  of  EUR 22  million.  Specific  country  allocations  were  used  to  finance 
projects and activities started in 2012. 

These  actions  reinforced  the  support  provided  under  other  EU  instruments  targeting  civil 
society (the Non-State Actors and Local Authorities programme (NSA-LA) and the EIDHR). 
The Instrument for Stability was also used to assist civil society. In Egypt, it provided support 
for civil society to contribute to the debates on democratic transition. In Libya, an EU-Libya 
Civil  Society  Forum  was  held  in  Tripoli  and  Benghazi  in  May  2012.  Other  actions  funded 
under the IfS included training focusing on youth and women and delivered to over 470 civil 
society  actors  and  staff  of  Tunisian  authorities.  The  second  EUR 1.7  million  IfS  action 
supporting  inclusive  national  dialogue  continued  operations  focusing  on  reconciliation, 
mediation and dialogue within communities. 

The  Euro-Mediterranean  Partnership’s  social  and  cultural  cooperation  programme, 
contributed  to  the  development  of  civil  society  capacity  building  and  regional  networking. 
With  a  network  of  over  3,500  organisations  in  43  countries5,  the  Anna  Lindh  Foundation 
promotes  knowledge,  mutual  respect  and  inter-cultural  dialogue  between  the  people  of  the 
Euro-Mediterranean region. The EU contribution is EUR 10 million for the period 2012-2014 
of  which  EUR 3  million  is  for  the  programme  Citizens  for  Dialogue  launched  in  2012.  Its 
objective  is  to  provide  CSOs  with  tools  and  skills  for  intercultural  dialogue,  exchange  and 
networking,  and  to  promote  regional  partnerships  between  citizens'  initiatives.  The  focuses 
are on Egypt, Jordan, Libya6, Morocco and Tunisia; other Arab countries may also participate. 

The way ahead 

While  substantial  progress  towards  the  Roadmap  objectives  was  achieved  in  2012,  further 
progress  in  2013  will  depend  on  partners’  commitment  to  actively  pursue  the  transition  to 
democracy.  In  several  countries,  successful  completion  and  the  implementation  of 
constitutional  reform  and  the  holding  of  free  and  fair  elections  will  be  the  key  to  the 
emergence of a pluralistic political order and the protection of human rights. On the EU side, 
key features in 2013 will be the implementation of the incentive-based approach to assistance 
linked to benchmarks, and of the new Action Plans, together with full deployment of the Civil 
Society  Facility  and  the  start  of  European  Endowment  for  Democracy  activities  and 
deepening of the dialogue with civil society. 

3.2. Inclusive Economic Development, Trade and Investment 

Democracy  cannot  take  root  unless  accompanied  by  inclusive,  smart  and  sustainable 
economic  development  with  opportunities  for  all.  Based  on  this  premise,  the  joint 
communications  of  March  and  May  2011  called  on  the  Southern  Mediterranean  Partners  to 
support the adoption of policies conducive to stronger, sustainable and more inclusive growth, 
facilitating  trade,  innovation  and  investment  partnerships,  developing  Small  and  Medium 
Enterprises (SMEs) and promoting industrial co-operation. 

5 The Anna Lindh Foundation (ALF) is not currently active in Syria. 
6 Work in Libya will start as soon as the country joins the Union for the Mediterranean. 

8

 
 
                                                 
Objectives 

•  Contribute to providing growth and job and addressing people's economic expectations, 

especially those of young people. 

•  Support the promotion of small and medium-sized enterprises, job creation and training; 

• 

Increase trade, partly by setting up Deep and Comprehensive Free Trade Areas between 
the EU and the partner countries. 

•  Facilitate European investments in the region. 

•  Develop human capital and invest in knowledge and innovation as key drivers for social-

economic development and job creation. 

Implementation 

Economic trends 

The  Arab  Spring of 2011 dented expectations of growth in the Southern Mediterranean and 
took some of the momentum from the recovery which had begun in 2010. The impact of the 
on-going euro area crisis exacerbated the deterioration in the macroeconomic situation and, as 
a  result,  growth  remains  subdued.  Fiscal  deficits,  which  were  negatively  affected  by  the 
slowdown  in  economic  activity  and  the  increased  expenditure  meant  to  assuage  the  tense 
social situation, remain high and growing in most countries (from -0.2% of GDP in 2011 to an 
estimated -3.9% in 2012 in Algeria, from -6.1% to an estimated -7.9% in Lebanon and from -
3.1% to an estimated -6.4% in Tunisia). Unemployment levels also remain high (around 13% 
in Egypt and 17.6% in Tunisia in 2012). The balance-of-payments situation remains fragile in 
most  of  the  countries,  including  Jordan,  Lebanon,  Tunisia  and  Egypt.  Some  moderate 
acceleration  in  growth  was  expected  in  some  countries  in  2012,  including  Algeria,  Jordan, 
Lebanon and Tunisia, while others were expected to slow down, notably Morocco and Israel. 

The Libyan and Syrian economies were severely affected by conflicts, though the economic 
situation in Libya greatly improved in 2012 with GDP growing by over 120% as the critically 
important hydrocarbon production was restored to almost the pre-conflict level. At the same 
time,  the  intensification  of  the  Syrian  conflict  affected  neighbouring  countries,  especially 
Lebanon and Jordan. 

The  overall  weighted  growth  rate  in  the  region  was  expected  to  remain  at  around  2.5%  in 
2012 (excluding Libya and Syria). GDP growth is expected to accelerate in 2013, assuming a 
gradual return to stability in the region and some economic recovery in the euro-area. 

Job creation and support for SMEs  

As  the  higher  number  of  registered  firms  and  companies  can  attest,  the  regulatory 
environment  for  business  in  the  Southern  Neighbourhood  improved  in  2012.  However, 
entrepreneurs  across  the  region  still  face  relatively  weak  investor  and  intellectual  property 
rights  protection,  in  addition  to  restricted  access  to  credit.  Curbs  on  the  development  of  the 
private sector, in particular SMEs, have an impact on the level of job creation, which is still 
insufficient to absorb the workforce. 

The new generation ENP Action Plans include substantial sections on improving investment 

9

 
 
climate  and  regulatory  convergence  with  the  EU  acquis.  The  EU  put  forward  multiple 
initiatives  to  support  the  promotion  of  SMEs  and  job  creation.  These  included  measures  to 
enhance  the  business  climate,  to  stimulate  key  industrial  sectors  and  infrastructures 
contributing to the sustainable development of SMEs, to promote education and training, and 
to facilitate access to markets and investment. 

A new instrument from Research-to-Innovation (R2I) was launched under FP7 targeted to the 
ENP South and East on bridging the gap between research and innovation by aligning better 
research  objectives  to  socio-economic  needs  and  improving  performance  in  managing, 
transferring and using knowledge resulting from research. 

In 2013, the EC-EIB-IMO are co-organising the 12th FEMIP Conference with a view to enhance 
marine  and  maritime  cooperation  among  Mediterranean  counties  and  support  economic  growth 
and  jobs  creation  in  the  region  though  a  number  of  actions  focusing  on  the  development  of 
maritime clusters and the identification of opportunities for economic expansion and investments. 

The  Commission's  2011  communication  on  SME  Internationalisation  "Small  Business  Big 
World'' promised to support the creation of a business-friendly environment in neighbouring 
countries.  The  key  reference  document  for  promoting  SMEs  in  the  Mediterranean  region  is 
the 2004 Euro-Mediterranean Charter for Enterprises. Knowledge, tools and good practice are 
also  shared  at  regional  workshops  with  the  support  of  TAIEX  (Technical  Assistance  and 
Information  Exchange)  and  SIGMA  (Support  for  Improvement  in  Government  and 
Management). The European Commission is also allocating a grant to the OECD to evaluate 
the  SME  environment  in  the  Mediterranean.  To  strengthen  industrial  cooperation,  European 
entrepreneurs  also  participated  in  Missions  for  growth  led  by  European  Commission  Vice-
President  Tajani  to  Morocco  and  Tunisia  in  November  2012.  In  Tunisia,  an  EU-Tunisia 
Council  for  Entrepreneurship  was  launched  that  will  allow  business  to  advise  the  Tunisian 
government on business climate improvements. 

There are regional programmes targeting SMEs. The SANAD7 was launched in 2011 as 
EUR  50  million  investment  fund  to  support  SMEs  in  the  Southern  Neighbourhood,  in 
particular  the  business  segment  too  small  for  banks,  but  too  large  for  micro-finance.  The 
Neighbourhood Investment facility (NIF) was also mobilised to enable the EBRD to provide 
technical  assistance  to  local  enterprises  and  help  them  attract  extra  investments.  A  EUR  5 
million  contribution  was  made  to  the  EBRD’s  Enterprise  Growth  Programme  and 
Business Advisory Services for work in the region. Complementarily, a NIF contribution of 
EUR 15 million to SEMED ("Southern and Eastern Mediterranean”) project preparation was 
made  in  early  2012  to  allow  the  EBRD  to  start  preparing  investment  operations  in  Egypt, 
Jordan, Morocco and Tunisia. The following priority areas are covered: modernisation of the 
financial  sector,  increasing  the  role  of  clean  sources  of  energy  and  improving  energy 
efficiency;  mobilising  private  sector  power  and  energy  and  transport  infrastructure 
investment. 

The  Investment  Security  in  the  Mediterranean  (ISMED)  Support  Programme  was 
launched in November. This regional programme seeks to increase infrastructure investment 
in the Southern Mediterranean by providing advice to governments on reducing the legal risk 
of  specific  investment  projects.  It  will  be  implemented  by  the  MENA-OECD  Investment 
Programme with EUR 1.5 million in funding from the EU. In parallel, the EU launched the 
ISMED Risk and Cost Sharing Toolkit, providing targeted measures such as support to risk-

7 "Sanad" literally means "support" in Arabic. 

10

 
 
                                                 
sharing  mechanisms  and  guarantee  schemes.  The  NIF  will  underpin  this  initiative,  which  is 
intended to raise at least EUR 2 billion.  

The on-going and planned EU country-specific assistance directly targeting SMEs covers the 
following countries: 

(cid:190)  Jordan: Jordan services modernisation Pprogramme (EUR 15 million). 

(cid:190)  Tunisia:  Second  phase  of  the  programme  to  support  economic  recovery  (EUR  68  million) 

and services modernisation programme (EUR 20 million). 

(cid:190)  Egypt:  Support  for  agricultural  SMEs  (EUR  22  million).  “Technical  and  Vocational 
Education and Training” (TVET), a programme to improve the employment prospects of the 
young  Egyptians  and  to  contribute  to  the  competitiveness  of  the  economy  by  providing  a 
highly skilled workforce (EUR 50 million). Emergency Employment Intensive Investment, a 
joint  World  Bank  and  EU  project  to  create  short-term  employment  opportunities  for 
unemployed,  unskilled  and  semi-skilled  workers  (EUR  70  million  EU  grant  and  a  World 
Bank loan of USD 220 million). 

(cid:190)  Libya: Support for TVET (EUR 6.5 million). 

In addition, SPRING also finances the following actions: 

−  Tunisia: Support for the renovation of popular neighbourhoods (EUR 33 million). 

−  Jordan:  Support  for  SMEs  and  export  development  (EUR  10  million),  support  for 
education  reform  (EUR  10  million),  and  a  good  governance  and  development  contract 
(EUR  40  million)  covering  electoral  process,  judicial  independence,  public  finance 
management, etc.  

−  Morocco: Support for vocational training, employment and growth, including support for 

specific categories of SMEs (EUR 30 million) - for adoption in 2013). 

Lending from EIB, EBRD and other institutions  

Scope for lending by the EIB, EBRD and other European Financial Institutions to small and 
medium-sized businesses was increased. 

In 2011 the financing ceiling for EIB operations in the Mediterranean countries was increased 
by an additional EUR1 billion for the current budget period, bringing it to EUR 9.7 billion. In 
addition,  the  EIB  has  been  given  a  specific  mandate  for  climate  change  operations,  under 
which the Mediterranean could draw on up to EUR 700 million. The EIB is sending staff to 
EU  delegations  to  facilitate  and  enhance  coordination  on  the  ground.  In  the  context  of  the 
restrictive measures against Syria, the Council decided to prohibit disbursements by the EIB 
in connection with existing loan agreements with Syria. In April 2012 the Commission issued 
a  Delegated  Act  to  remove  Syria  from  the  list  of  eligible  countries  for  the  EIB  external 
mandate. 

In  2011,  EBRD  Governors  started  the  process  of  extending  the  EBRD’s  geographical 
mandate to the South. A quick start mechanism was set up in the form of Cooperation Funds 
to  finance  technical  cooperation,  project  identification  and  preparation.  A  further  EUR  1 
billion from EBRD's own resources was allocated to an Investment Special Fund, which can 

11

 
 
deliver a full range of EBRD investment operations in the region. Morocco, Tunisia, Jordan 
and Egypt are eligible to receive EBRD's Special Funds. The EBRD Board had approved six 
projects  for  a  total  of  just  under  EUR  200  million  by  the  end  of  2012.  Temporary  EBRD 
offices  have  been  established  in  Cairo,  Casablanca,  Tunis  and  Amman  and  will  become 
permanent once each country has signed a "host country agreement". 

The Commission has continued to work closely with its G-8 Deauville partners to support 
the Southern Mediterranean economies. Under the Capital Access Markets Initiative, the EU 
is  exploring  the  possibility  of  providing  credit  enhancements  for  project  bonds  in  the 
Partnership countries and a regional SME Guarantee Facility aimed at supporting lending to 
SMEs. 

Macro-Financial Assistance (MFA) 

The countries of the Southern Neighbourhood are in principle eligible for EU MFA. Jordan 
has a programme with the IMF entailing the use of fund resources: a USD 2-billion 36-month 
stand-by  arrangement  approved  by  the  IMF  Board  in  August.  Following  a  request  by  the 
Jordanian authorities, the EU is preparing an MFA programme. Egypt requested support from 
the IMF and was close to an agreement on a possible USD 4.8 billion stand-by arrangement at 
the end of 2012 when the negotiations were postponed by Cairo. The European Commission 
is considering a proposal for a EUR 500 million MFA operation, contingent on the conclusion 
of the IMF arrangement.  

Morocco also signed up to a pre-cautionary programme with the IMF backed up by a USD 6.2 
billion  arrangement  and  Tunisia  is  currently  in  discussions  on  a  possible  precautionary 
arrangement.  However,  the  precautionary  nature  of  these  arrangements  precludes  the 
possibility of an EU MFA. 

Macroeconomic Dialogues 

The  EU  has  continued  to  strengthen  the  Macroeconomic  Dialogues.  2012  saw  the 
establishment of fully-fledged sub-committees on economic and financial affairs for the oPt. 
Similarly, economic dialogue with Jordan was strengthened through the inclusion of the EU-
Jordan Dialogue on Economic Reforms. 

Trade 

Overall,  bilateral  trade  flows  between  the  EU  and  the  Southern  Mediterranean  partners 
increased.  The  main  EU  medium-  to  long-term  objective  with  Southern  Partners  is  the 
establishment  of  a  Deep  and  Comprehensive  Free  Trade  Area  (DCFTA).  Following  the 
adoption by the Council in 2011 of negotiating directives for DCFTA agreements with Egypt, 
Jordan,  Morocco  and  Tunisia,  the  Commission  started  preparatory  work,  assessing  the 
commitment of each partner to implement the future agreements and identifying priorities for 
regulatory approximation. The Commission launched work with Tunisia, Morocco and Jordan 
in  March  2012.  The  preparatory  process  with  Morocco  was  concluded  in  October  and  in 
November the Council welcomed the upcoming launch of DCFTA negotiations with Morocco 
in  early  2013.  The  preparatory  process  with  Tunisia  is  well  advanced  and,  although  some 
further technical work is required, it is expected that it could be concluded in the first half of 
2013.  There  has  been  no  progress  in  the  preparatory  process  with  Jordan  since  the  first 
meeting in March. The Commission had first exploratory contacts with Egypt in November. 

12

 
 
In summary, although progress has been varied, overall significant and positive steps forward 
were made overall with partners who are ready to engage. 

Only limited progress has been achieved in bilateral negotiations on trade in agriculture, trade 
in services and conformity assessment. Negotiations on trade in services and in investments 
were launched with Israel, Egypt, Morocco and Tunisia in 2008. In 2012, progress was made 
only  with  Morocco,  although  the  negotiations  were  not  concluded.  In  the  case  of  Egypt, 
Jordan  and  Tunisia,  these  negotiations  will  be  incorporated  into  the  DCFTA  negotiations. 
Preparations for ACAA (Agreement on Conformity Assessment and Acceptance of industrial 
products) negotiations have been on-going with all ENP Southern Partners. The ACAA with 
Israel  was  concluded  in  2012  and  entered  into  force  in  January  2013.  In  the  light  of 
preparations,  negotiations  with  Tunisia,  Morocco  and  Jordan  could  be  launched  in  2013. 
Egypt  should  follow.  The  Agreement  on  liberalisation  of  trade  in  agriculture,  processed 
agricultural  products,  and  fish  and  fisheries  products  with  Morocco  entered  into  force  in 
October. A similar Agreement with the oPt entered into force in January 2013. Negotiations 
with Tunisia were not re-launched and could be integrated in the future DCFTA negotiations. 

Following the signing of the single regional convention on Pan-Euro-Mediterranean rules 
of  origin  in  2011,  the  EU  must  ensure  rapid  revision  and  modernisation  of  Pan-Euro-
Mediterranean  preferential  rules  of  origin.  Egypt,  Tunisia,  Morocco,  Israel  and  Jordan 
presented their positions on the revisions. The first discussion took place at the Pan-Euro-Med 
working  group  in  May  2012  and  continued  in  October.  The  Commission  is  working  to 
establish areas where the views converge. This will be presented to the partners in May 2013. 

In  parallel,  work  to  implement  the  working  priorities  agreed  at  the  Union  for  the 
Mediterranean Trade Ministerial Conference in 2010 continues, in particular: 

•  Establishing  an  information  tool  on  trade  and  investment  conditions  in  the  Euro-

Mediterranean region, which should be implemented from 2013. 

•  Reinforcing cooperation on the fight against piracy and counterfeiting: An expert meeting 
took  place  in  February  and  Euromed  Trade  Senior  Officials  agreed  to  continue 
cooperation in this area in 2013. 

•  Strengthening  cooperation  in  industrial  sectors:  meetings  involving  industry  and  trade 
policy  experts  on  the  car  and  ICT  sectors  took  place  in  February  and  will  continue  in 
2013 on other sectors. 

Regional  South-South  integration  is  also  a  major  objective  that  the  EU  pursues  with 
Southern  partners.  The  oPt's  accession  to  the  Agadir  Agreement  is  on-going.  Lebanon  has 
also expressed interest in joining. 

Foreign investment 

Commission  Vice-President  Antonio  Tajani  led  a  “Mission  for  Growth”  to  Morocco  and 
Tunisia in November to foster business, trade and investment relations. 

Social policy and employment   

The Southern partners face an enormous problem of very high unemployment rates, especially 
among  the  young  population.  These  challenges  were  discussed  at  the  occasion  of  the  Euro-

13

 
 
Mediterranean  High-Level  Working  Group  on  Employment  and  Labour  that  took  place  in 
Brussels  in  February.    The  Working  Group  reaffirmed  the  importance  and  added  value  of 
working  together  on  the  basis  of  the  Euro-Mediterranean  Framework  for  Action  on 
Employment, Employability, and Decent Work.  In addition, an informal roundtable meeting 
between the social partners from the South and for the EU was held in Brussels in April. The 
social partners agreed to work on good governance / tackling corruption; on the important role 
social partners play in vocational education and training; and on capacity-building, including 
advocacy and institution-building. The 2nd Euro-Mediterranean Social Dialogue Forum should 
be organised in the second half of 2013. 

As the 2010 Ministerial Conference called for better coordination among donors with a view 
to promoting projects on employment and the social dimension, the UfM Secretariat launched 
the Mediterranean Initiative for Jobs, which is prepared for 2013. 

The way ahead 

As the political situation stabilises in the partner countries, partner governments should be in 
a better position to define their economic policies and take more decisive action on economic 
reform. It will be an opportunity for them to confirm their interest in taking up the EU's offer 
and  to  ensure  full  administrative  support  for  the  discussions  and  negotiations  (DCFTA, 
ACAA, revision of pan-Euro-Mediterranean rules of origin). In this context the EU  will have 
to  further  pursue  its  work  in  explaining  the  rationale  for  its  initiatives  on  trade  and 
improvement of the business and investment climate. It will also need to give the matter the 
necessary attention and resources to ensure that these negotiations are conducted swiftly and 
that the agreements can enter into force as soon as feasible. 

3.3. MOBILITY   

Objective 

to  Mobility  Partnerships  (MPs)  aimed  at 
Opening  Comprehensive  Dialogues 
strengthening  cooperation  on  migration  and  mobility  in  a  secure  environment,  reinforcing  local 
Schengen cooperation, and making full use of the possibilities offered by the EU Visa Code. 

leading 

Implementation 

Following  the  launch  of  their  respective  Dialogues  on  Migration,  Mobility  and  Security  in 
October  2011,  the  negotiations  on  the  draft  Political  Declaration  of  MPs  with  Tunisia  and 
Morocco started in the course of 2012, and are now well advanced. 

Dialogue on migration, mobility and security started with Jordan in December 2012. As soon 
as conditions allow, a Dialogue on migration, mobility and security will start with Libya. The 
transitional government of Egypt was offered a similar dialogue, but the offer has so far not 
been taken up. 

Preparations  for  the  planned  SEAHORSE  Mediterranean  network8,  which  should 
encompass all North African countries and Mediterranean EU Member States, are on-going. 
In December 2012 the Commission adopted the financial decision allowing partner countries 

8 A secure network to exchange information (via satellite) to combat irregular immigration by sea, primarily 
established in the Western Mediterranean and on the Atlantic coast. 

14

 
 
                                                 
 
to join the network and launched a call for proposals for the implementation of the External 
Border Fund, which will offer grants. 

The way ahead 

Cooperation  on  Home  Affairs  matters  remains  limited,  although  our  partners  have  strong 
expectations  that  their  democratic  revolutions  will  lead  to  easier  mobility  to  the  EU. 
Principled agreement on the Political Declaration on the Mobility Partnership with Morocco 
was reached in early 2013. The EU-Jordan Dialogue on Migration, Mobility and Security is 
due  to  continue  through  a  series  of  meetings  -  the  first  one  having  taken  place  on  25-28 
February 2013 – and may eventually result in an MP. The EU may consider launching such 
dialogues  with  more  Southern  Mediterranean  countries,  depending  on  the  development  in 
their policies, legal and administrative framework, and relations with the EU. 

The  EU  and  its  Member  States  should  allocate  adequate  funding  to  allow  the  Mobility 
Partnerships  -  currently  under  preparation  -  to  be  effectively  and  smoothly  implemented  as 
soon as they are signed. 

3.4. SECTOR COOPERATION  

Objectives 

Stimulate sector cooperation, with particular emphasis on: 

•  Convergence/alignment 

the 
development of a Common knowledge and innovation space and enhancing cooperation 
on information and communication technologies. 

transport,  energy  and  environment  sectors, 

the 

in 

• 

Increasing  student  and  academic  staff  mobility  and  modernisation  of  higher  education 
systems, through participation in EU higher education programmes. 

•  Fostering people-to-poeple contacts, youth exchanges, support to education and training 

sectpors, enhancing cooperation in the field of culture. 

•  Combining efforts on climate change and the environment and the gradual development 

towards an EU - Southern Mediterranean Energy Community; 

•  Launching an agricultural and rural development support programme. 

•  Progressive participation in EU programmes and agencies open to non-EU countries. 

Implementation 

The  new  generation  of  Action  Plans  includes  substantial  elements  on  sector  policy 
cooperation,  e.g.  objectives  related  to  water,  energy,  transport,  environment,  education, 
culture, health, research and innovation. 

In 2012 dialogue continued with partner countries to identify their key interests with regard to 
participation in EU programmes and agencies. The EU held special information meetings 
in  several  countries  of  the  region  and  an  additional  information  seminar  bringing  together 
partner countries and EU agencies took place in November. In October, the protocol allowing 

15

 
 
Morocco  to  participate  in  EU  programmes9  entered  into  force.  In  December,  the  EU  and 
Jordan signed a similar protocol. The European Aviation Safety Agency (EASA) concluded a 
working  arrangement  with  Jordan  and  Morocco  in  May,  Tunisia  in  October  and  Israel  in 
November. In June, the European Centre for Disease Prevention and Control (ECDC) signed 
an Administrative Arrangement with Israel. In October, the European Monitoring Centre for 
Drugs  and  Drug  Addition  (EMCDDA)  held  a  scientific  workshop  on  drug  prevention  and 
monitoring in Southern ENP countries. In November, the EU adopted a financial assistance 
project  of  EUR  3.7  million  to  support  EU  agencies’  preparatory  activities  with  a  view  to 
facilitating ENP partners’ participation in their work. 

In the development of a “Common knowledge and innovation space” important steps forward 
were  made.  In  April  the  EU  held  a  high-level  Euro-Mediterranean  conference  on  research 
and innovation in Barcelona to define the objectives and main elements of a medium to long-
term  agenda  for  a  renewed  partnership  and  to  move  towards  a  more  strategic  ‘region  to 
region’  cooperation. Participation of the Southern  Mediterranean partners in FP7 continued 
to  increase  in  2012.  The  total  EU  contribution  to  the  projects  with  participation  of  the 
Southern  Mediterranean  partners  amounts  to  over  EUR  529  million  (of  which,  funding  for 
the  Southern  Mediterranean  partners  amounts  to  EUR  43  million).  The  new  FP7  Work 
Programme for 2013 published in July 2012 includes activities targeting specifically the Southern 
Mediterranean,  in  particular  through  a  regional  ERA-NET  programme,  coordinating  research 
cooperation  between  EU  Member  States  and  Southern  partners.  Three  bilateral  activities  with 
Algeria, Egypt and Tunisia are intended to support institutional dialogue under the bilateral S&T 
(Science and Technology) agreement between the EU and these countries as well as a targeted 
programme  R2I  on  bridging  the  gap  between  research  and  innovation.  In  addition  the  FP7 
thematic  programmes  included  some  research  collaborative  actions  targeted  specifically  to 
Southern Mediterranean countries in the fields of energy, health, environment, transport and 
social sciences and humanities. Research and innovation were also among the priority areas 
for cooperation of the joint Egypt-EU Task Force held on 14 November in Cairo. In March 
2012  a  science  and  technology  cooperation  agreement  was  signed  between  the  EU  and 
Algeria. 

Regarding  the  information  society,  the  Commission's  policy  towards  the  Southern 
Mediterranean aims at securing a fair, modern, open, competitive and transparent market for 
communications, a connected ICT research environment, open and vibrant use of the internet 
for all and a diverse media environment. It focuses on: cooperation in developing the region's 
information society; cooperation with Southern Partners’ telecom regulators (through the joint 
EU-South regulator forum EMERG); and the promotion of free and open access to internet, 
including the adoption of international internet principles and the “No-Disconnect Strategy”. 
At bilateral level a fact-finding mission to Tunisia in June confirmed the key position of the 
ICT sector for the Tunisian economy. Morocco demonstrates the same potential. Successful 
multi-stakeholder  meetings  in  Egypt  in  November  proposed  a  common  EU-Egyptian 
information society agenda as part of the EU-Egypt Task Force. A potential ICT ministerial 
initiative under the aegis of the Union for the Mediterranean is being considered. 

Following  the  Arab  Spring,  the  importance  of  pertinent  and  timely  statistics  as  an  integral 
part of transparency, good governance and democratic dialogue has been recognised. In 2012 
the Southern Partners agreed on a strategy to continue statistical cooperation with the EU after 
the  current  programme  ends.  The  strategy  not  only  covers  traditional  aspects  of  improving 
data  production  in  line  with  EU  standards,  but  also  recognises  the  need  to  improve  the 

9 The ones that are open to the participation of the ENP partners. 

16

 
 
                                                 
visibility of data. Progress continues to be made in key statistical areas; for example, national 
strategies for improving agriculture statistics have been developed for several countries. 

In  higher  education,  a  substantial  EU  budget  increase  combined  with  intensified 
communication  efforts  in  partner  countries  has  borne  fruits.  In  July  2012,  in  Brussels, 
Commissioner Androulla Vassiliou launched a policy dialogue with Mediterranean partners 
on  higher  education  policies  and  programmes.  Commissioner  Vassiliou  also  visited  Tunisia 
and Morocco. 

Under Erasmus Mundus, additional support of EUR 5 million was allocated under the joint 
degree  action  to  allow  extra  Master's  scholarships  to  be  awarded  to  83  Egyptian  and  23 
Tunisian  candidates.  The  funding  available  under  the  credit  mobility  action  (EU- 
Mediterranean  university  partnerships)  was  doubled.  As  a  result  EUR  38.4  million  were 
available10  to  increase  academic  partnerships  enabling  the  mobility  of  1462  Southern 
Mediterranean  and  432  EU  students  and  staff.  The  budget  of  the  Tempus  programme 
available  for  the  Southern  Partners  was  increased  to  EUR  29  million11.  This  funded  34 
projects  to  be  selected.  They  aim  to  support  institutional  cooperation  between  the  EU  and 
southern neighbouring countries to modernise higher education systems. 

Young people and youth workers from the Southern Mediterranean continued to benefit from 
the Youth in Action programme; 1474 of them took part in 391 projects. More than 150 also 
benefitted  from  participation  in  the  Euro-Med  Youth  programme,  in  the  context  of  38 
approved  projects.  In  addition,  the  EU,  the  Council  of  Europe  and  the  Arab  League  jointly 
held a conference in Tunisia in August 2012 on capacity building in youth organisations and 
youth empowerment. Egypt and Tunisia were invited to take part in the pilot extension of the 
eTwinning  action  for  schools.  Tunisia  has  confirmed  its  interest  in  the  action  and 
preparatory  work  has  begun.  Under  SPRING,  EUR  25  million  was  provided  to  Morocco  to 
scale up a literacy programme as part of the country’s education strategy. 

The  EU  is  already  funding  regional  culture  programmes  in  the  Southern  Mediterranean 
(EUROMED Heritage and EUROMED Audiovisual - totalling EUR 28 million). A seminar 
on  "The  Potential  of  Culture  in  Social  Change"  took  place  in  Brussels  in  April,  bringing 
together civil society from the EU, Tunisia, Egypt and Jordan. 

An additional budget of EUR 2 million for the European Training Foundation (ETF) allowed 
the expansion of the work programme  with  Southern  Partners  in  vocational education and 
training  (VET)  as  a  valid  alternative  to  higher  education  for  young  people.  In  September 
2012, the ETF organised a conference “New Challenges for Skills Development in the Arab 
States of the Southern and Eastern Mediterranean", which brought ministers of education and 
labour  from  Egypt,  Jordan,  Lebanon,  Morocco,  the  oPt  and  Tunisia  together  to  discuss 
different  approaches  to  tackling  the  job  crisis  and  the  role  of  education  and  training  in  the 
region's new social and economic context. The EU has finalised the design of a preparatory 
action on youth employment (EUR 1.5 million) aimed at promoting mobility among young 
professionals through internships in SMEs on both sides of the sea. 

Regional energy policy cooperation is a multi-layer, longer-term activity taking into account 
the  need  for  a  differentiated  and  gradual  approach.  The  EU  is  stepping  up  partnerships  and 
assistance programmes with the Mediterranean partners to support regulatory reforms in the 

10 2012 selection (call published in December 2011). 
11 2012 project selection (call published in December 2011). 

17

 
 
                                                 
energy sector, either based on existing frameworks or developing new ones. The EU has been 
actively involved in supporting cooperation among the energy regulators (MEDREG) and the 
establishment  of  a  similar  association  of  electricity  transmission  system  operators.  The  EU 
started discussions with partners on an energy UfM ministerial meeting in 2013. It is expected 
to  endorse  the  Mediterranean  Solar  Plan  Master  Plan  being  drafted  by  the  UfM  Secretariat; 
and to launch discussions on a possible Mediterranean energy community. The EU supports 
the development of renewable energy in the Southern Mediterranean. A first successful step 
was  taken  in  2012  with  the  launch  of  the  first  large-scale  CSP  solar  plant  in  Morocco 
(Ouarzazate),  co-financed  by  the  NIF/EIB/World  Bank/AFD/KfW.  In  June  2012,  the 
Commission  published  a  communication  on  EU  policy  on  renewable  energy  which 
emphasised the scope for establishing a mutually-beneficial framework for trade in renewable 
energy in the Mediterranean. 

The planning of the future Trans-Mediterranean Transport Network to be connected to the 
Trans-European  transport  network  and  work  on  priority  infrastructure  projects  progressed 
well within the EuroMed dialogue structures. On the regulatory reform, the implementation of 
the Regional Transport Action Plan (RTAP) for the Mediterranean for the period 2007-2013 
is  going  to  be  evaluated  by  the  Mediterranean  partners.  The  second  Euro-Mediterranean 
Ministerial  Transport  Conference  envisaged  for  November  2013  should  endorse  the 
achievements obtained in all the sectors of cooperation. 

Setting-up  the  Euro-Mediterranean  aviation  area  continued  with  the  negotiation  of 
comprehensive  aviation  agreements  with  each  partner  (already  signed  with  Morocco  and 
Jordan, initialled with Israel and expected to be signed in 2013) and the provision of technical 
cooperation to help them implement the agreements. Tunisia has agreed to open negotiations 
on such an agreement. 

As regard maritime sector, the Euromed dialogue and the regional technical assistance aim 
to  develop  Euro-Mediterranean  co-operation  in  the  field  of  maritime  safety  and  security, 
prevention of pollution from ships and marine environmental issues. Work progressed on an 
EU proposal for regional exchange of Automatic Identification System (AIS) of data. In order 
to  better  respond  to  discharges  from  ships  and  to  locate  and  identify  polluters,  all 
Mediterranean countries were invited to participate in the CleanSeaNet satellite service. The 
new  EMSA  Regulation  is  providing  for  technical  assistance,  including  the  organisation  of 
relevant  training  activities  to,  where  applicable,  European  Neighbourhood  partner  countries. 
In  line  with  the  provisions  concerning  the  recognition  of  seafarer's  certificates,  the 
Commission  has  already  recognised  Algeria,  Israel,  Morocco,  Tunisia  and  Jordan  and  is 
currently assessing Egypt. A feasibility study on "Mediterranean Sea maritime development 
cooperation"  has  been  carried  out  under  the  FEMIP  Trust  Fund  at  the  initiative  of  the 
European Commission, the European Investment Bank (EIB) and the International Maritime 
Organisation  (IMO),  with  the  objective  of  exploring  stronger  cooperation  across  the  three 
institutions on the development of the marine and maritime sector. The Integrated Maritime 
Policy  (IMP-MED)  technical  assistance  project  under  the  ENPI  South  programme  has 
emerged  as  a  key  vehicle  for  enhancing  marine  and  maritime  cooperation.  Cooperation 
between  maritime  authorities  in  all  Mediterranean  countries  was  supported  by  holding  a 
second edition of the Mediterranean Coastguard Functions Forum in Marseille in September 
2012.  Further  ideas  for  cooperation  in  the  region  will  be  discussed  at  the  12th  FEMIP 
Conference in Athens in April 2013. 

On extension of the European Geostationary Navigation Overlay Service (EGNOS), there 
has  been  a  delay  in  establishing  the  sites  for  setting  up  Ranging  and  Integrity  Monitoring 

18

 
 
Stations  (RIMS)  in  some  Mediterranean  states.  The  EU  needs  firm  reassurance  from  the 
partners  already  hosting  the  RIMS  (Morocco,  Tunisia  and  Egypt)  that  the  operations  and 
maintenance of the stations will continue.  

The  main  challenges  to  the  environmental  and  climate  change  policies  of  the  Euro-
Mediterranean  Partnership  relate  to  water  scarcity,  water  pollution,  waste  management  and 
environmental  degradation.  Climate  change  poses  a  problem  because  the  region  is  arid  and 
extremely  vulnerable  to  changes  in  temperature.  Countries  are  increasingly  affected  by 
climate change, sometimes in sectors of key importance to their development. Partners have 
made  some  efforts  to  strengthen  environmental  governance,  including  their  administrative 
capacity. All regional initiatives on the environment are advancing at technical level: setting 
up  of  a  comprehensive  system  for  environmental  data  collection;  progress  on  sustainable 
integrated  water  resource  management;  and  support  for  the  Horizon  2020  Depollution 
Initiative.  Under  the  Horizon  2020  initiative,  the  Mediterranean  Hot-Spots  Identification 
Programme  (MeHSIP)  has  taken  four  key  pollution  reduction  projects  in  Egypt,  Lebanon, 
Tunisia and Jordan to an advanced stage of preparation to enable them to access EIB loans. In 
addition,  in  2012  a  new  regional  project,  SWITCH  MED,  started.  It  aims  to  help  the  EU 
southern  neighbours  to  switch  to  green  economies  and  to  develop  sustainable  consumption 
and  production  models.  As  regards  climate  change,  in  addition  to  building  on  existing 
activities, a new project CLIMA SOUTH was put out to tender and launched by the end of 
2012 to support regional capacity building in climate change mitigation and adaptation, and to 
enhance cooperation with the EU. An important factor is civil society's potential to reinforce 
environmental governance, awareness raising and public participation. In this perspective, the 
EU signed an agreement with the UNDP on capacity-building grants for environmental NGOs 
in  European  Neighbourhood  countries.  The  result  should  be  that  at  least  three  NGOs  per 
country will improve their capacity to engage in environmental governance. 

The  presence  in  the  Southern  Mediterranean  of  economically  important  animal  diseases 
hampers  the  development  of  trade  in  animal  origin  products.  Capacity  building  in  the 
sanitary  and  phyto-sanitary  sector  is  a  prerequisite  for  overcoming  this.  Among  other 
support  measures,  the  EU  organised  a  Commission/European  Food  Safety  Agency/TAIEX-
supported Mediterranean seminar on animal identification and disease control measures held 
in Cyprus in September. 

The  ongoing,  EU-supported,  Episouth  Plus  project  aims  to  increase  health  security  by 
strengthening  preparedness  for  common  health  threats  and  biosecurity  risks  at  national  and 
regional levels. In 2012, partners participated in a Commission/European Centre for Disease 
Prevention and Control conference and training course on strengthening capacity building for 
communicable  diseases  prevention  and  control  in  the  Mediterranean.  The  aim  is  to  jointly 
explore options for developing a regional training programme on intervention epidemiology. 

In regional policy the possibility of launching Pilot Regional Development programmes as in 
Eastern  Partnership  countries  and  inspired  by  EU  policy  promoting  economic,  social  and 
territorial  cohesion  is  being  explored  with  partners.  The  EU  contacted  the  authorities  in 
Morocco and Tunisia so that in February 2013 officials from these countries were able to visit 
regions in Belgium and France.  At the same time, the Mediterranean ENPI CBC programme 
(grouping all EU Mediterranean countries and majority of the ENP Mediterranean countries) 
is  progressing  well  and  has  launched  three  calls  for  proposals.  Out  of  the  total  programme 
budget of EUR 200 million, EUR 124 million has been already awarded in funding. 

In agriculture and rural development, the EU has been engaging with the Southern Partners 

19

 
 
the  Centre 

supported  by 

in  the  framework  of  the  European  Neighbourhood  Programme  for  Agriculture  and  Rural 
Development (ENPARD). The process started with Tunisia, Morocco, Egypt and Jordan, and 
following the partners' interest it was extended to Algeria and Lebanon. In each country, the 
EU 
International  des  Hautes  Études  Agronomiques 
Méditerranéennes/Institut  Agronomique  Méditerranéen  de  Montpellier  (CIHEAM/IAMM) 
have  been  working  together  with  representatives  of  government,  civil  society  and  research 
institutes  to  identify  the  key  challenges  and  priorities  the  country  wishes  to  address  in  this 
field.  The  dialogues  under  ENPARD  aim  at  promoting  long-term  agricultural  and  rural 
development  strategies.  In  order  to  visibly  act,  pilot  activities  are  being  prepared  with  a 
territorial  and  participatory  community  based  rural  development  approach.  In  fisheries,  the 
EU  supports  actions  to  improve  the  General  Fisheries  Commission  for  the  Mediterranean 
(GFCM)  framework  for  fisheries  data  collection  and  implementing  multi-annual  fisheries 
management  plans  on  the  basis  of  GFCM  guidelines.  It  also  supports  capacity-building  on 
fisheries control through the Community Fisheries Control Agency and GFCM. 

The  financing  decision  for  a  new  EUR  5  million  programme  targeting  civil  protection 
("PPRD  South”)  was  adopted  in  August  2012.  This  new  regional  programme  will  further 
develop  the  Risk  Atlas  and  Civil  Protection  manual,  drafted  under  the  previous  EuroMed 
PPRD South programme. The programme contributes to the development of stronger disaster 
prevention, preparedness and response capacity at local, national and international level. The 
programme  also  aims  to  bring  the  Mediterranean  partners  progressively  closer  to  the 
European  Civil  Protection  Mechanism.  A  High  Level  Conference  on  Civil  Protection, 
attended  by  Commissioners  Kristalina  Georgieva  and  Štefan  Füle  and  the  UfM  Secretary 
General  Fathallah  Sijilmassi  was  held  in  Brussels  in  November  2012  to  launch  the  new 
programme. 

The way ahead.  

Building on the progress of 2012, sector policy cooperation should be pursued with renewed 
vigour in 2013 in order to reach the Roadmap objectives. As the political situation stabilise in 
the partner countries, partner governments should be in a better position to take advantage of 
what  the  EU  has  to  offer  and  boost  their  participation  in  regional  cooperation.  The  EU  has 
more  work  to  do  to  explain  the  rationale  for  its  initiatives,  in  particular  on  energy  and 
transport.  This  could  be  helped  by  holding  regional  ministerial  meetings  in  these  sectors  in 
2013. 

3.5. COOPERATION WITH REGIONAL ORGANISATIONS AND INITIATIVES  

Objectives 

• 

• 

• 

Make  the  Union  for  the  Mediterranean  an  effective  instrument  promoting  policy 
dialogue and sector co-operation at regional level. 

Promote  sub  regional  co-operation,  in  particular  in  the  Maghreb,  involving  the  EU 
and the relevant partner countries on issues of common concerns. 

Develop a structured dialogue between the EU and other relevant regional 

organisations (in particular the Arab League). 

20

 
 
Implementation  

Union for the Mediterranean 

The UfM is a unique forum for dialogue among 43 Euromed partners12 which complements 
the bilateral relations between the EU and its southern neighbours. 2012 marked a revival of 
the UfM's role as a catalyst in developing regional dialogues and projects. 

In March, the Council transferred the UfM Northern Co-Presidency to the EU, giving a new 
impetus  to  the  organisation's  work,  and  ensuring  the  development  of  sector  dialogues  and 
greater  consistency  between  EU  policies  and  programmes  and  the  work  of  the  UfM.  From 
September, Jordan assumed the UfM Southern Co-Presidency, reaffirming full co-ownership 
and co-piloting of the UfM process. Libya agreed to join the UfM as an observer, while Syria 
suspended its participation.  

Regular  meetings  of  senior  officials  allowed  them  to  develop  political  dialogue  and  better 
incorporate  other  dimensions  of  cooperation  implemented  by  institutions  such  as  the  UfM 
Parliamentary Assembly, the Euromed Economic and Social Council, the Euro-Mediterranean 
Regional and Local Assembly (ARLEM), civil society (through the Anna Lindh Foundation), 
and relevant international financial institutions.  

The new Secretary General appointed in March focused on improving the UfM Secretariat's 
competency  in  developing  and  seeking  finance  for  regional  projects  and  received  EU  full 
support  for  this  endeavour.  In  particular,  the  European  Commission  provided  advice  and 
training  to  the  UfM  Secretariat  on  EU  project  management  procedures  and  detached  an 
official to help the Secretariat with project preparation and funding.  

At  the  time  of  writing  this  report,  the  UfM  had  endorsed  14  projects,  including  the 
construction  of  a  water  desalination  plant  in  Gaza,  the  completion  of  the  Trans-Maghreb 
Motor  Highway,  the  Mediterranean  Solar  Plan,  cooperation  in  education  and  a  project 
fostering  women's  employment  and  job  creation.  In  December,  it  presented  senior  officials 
with a new Initiative for Jobs to be launched in 2013. These projects are developed in close 
coordination  with  the  EU  and  complement  the  wide  variety  of  EU  regional  programmes 
outlined in the previous section. 

Although, no UfM ministerial meeting was held in the second half of 2012, sectoral working 
groups  and  senior  officials'  continued  to  meet  throughout  the  year,  enhancing  regional 
dialogues  in  a  wide  range  of  sectors,  from  research  and  innovation  to  social  dialogue  and 
industrial  cooperation.  Preparations  started  for  ministerial  meetings  in  2013,  focusing  in 
particular on deliverables in the areas of energy and transport.  

The  Monitoring  Committee  for  the  Euro-Mediterranean  cooperation  on  research  and 
innovation proposed, during its last meeting in Malta in November 2012, a UfM Ministerial 
conference in research and innovation to take place in 2014. 

Sub-regional co-operation in the Maghreb 

In  the  course  of  the  year  the  EU  participated  in  two  key  meetings  of  the  Western 
Mediterranean Forum  (also known as  the 5+5 Dialogue): a meeting of Foreign Ministers in 
Rome in February attended by Commissioner Füle, and the Summit in Malta held in October, 

12 Syria’s membership is currently suspended. 

21

 
 
                                                 
attended by President Barroso and Commissioner Füle. At both meetings, the EU underlined 
possible synergies between the 5+5 Dialogue and EU bilateral and regional cooperation and 
also with the UfM. Informal meetings were held with the Arab Maghreb Union (AMU). 

In December, a joint communication by the HR/VP and the European Commission outlined 
ways in which the EU might accompany efforts to achieve closer cooperation and integration 
between  the  countries  of  the  Maghreb.  It  will  complement  efforts  at  bilateral  level  between 
the EU and the countries of the Maghreb as well as wider regional cooperation. 

Co-operation with the Arab League 

The EU has given diplomatic support to the efforts of the League of Arab States (LAS) to find 
a  solution  to  the  Syrian  crisis.  The  HR/VP  has  maintained  close  contacts  with  the  LAS 
Secretary  General  throughout  the  year  and  four  meetings  of  senior  officials  have  allowed 
structured political dialogue between the two institutions. 

A joint EU-LAS ministerial meeting held in Cairo on November 13 sent a strong signal of a 
joint  commitment  to  address  common  challenges.  It  adopted  an  ambitious  declaration 
covering a wide range of political subjects and endorsed a joint work programme paving the 
way  for  practical  cooperation  in  various  fields  such  as  women's  empowerment,  crisis 
management, humanitarian action, human rights and civil society. Earlier in 2012, the EU had 
provided  support  for  setting  up  a  crisis  room  at  LAS  headquarters  and  held  a  seminar  on 
election observation for LAS officials. 

Co-operation with the Organisation of Islamic Cooperation 

The EU also strengthened its relations with the OIC. For the first time, the HR/VP attended an 
OIC ministerial meeting in Djibouti on 15 and 16 November. Both organisations have held high 
level and expert meetings, providing ideas for more practical cooperation. 

The way ahead. 

Substantial  progress  was  made  in  2012  on  reinforcing  the  UfM  and  in  developing  cooperation 
with the League of Arab States. The key to further progress in 2013 will be to ensure that UfM 
projects  are  financed,  the  “Initiative  for  Jobs”  deployed  aand  ministerial  meetings  held  to  give 
guidance  and  new  impetus  to  the  sector  cooperation.  The  joint  work  programme  offers  the 
opportunity  to  further  develop  cooperation  with  the  League  of  Arab  States.  Following 
consultation  with  Maghreb  partners,  the  implementation  of  proposals  made  in  the  joint 
Communication on the Maghreb should be started. 

4.  

FUNDING  

‘More for More': the SPRING programme  

22

 
 
The  SPRING  programme  was  adopted  in  2011  in  response  to  the  Arab  Spring  to  support 
partner countries in their efforts towards democratic and economic transition. SPRING is the 
first programme which translates into operational terms the ‘more for more’ approach which 
guides the new ENP, linking funding to progress in building deep and sustainable democracy 
and in implementing related reform objectives. It has resulted in greater dialogue with partner 
countries on those issues increasing the EU’s impact and credibility. The overall budget for 
SPRING is EUR 540 million for the period 2011-2013. 

Country allocations for 2011-2012 have been decided. Activities to be funded under SPRING 
are agreed with each Partner, based on its specific needs: 

•  Algeria:  EUR  20  million,  in  two  tranches,  with  EUR  10  million  to  support  governance 

and EUR 10 million to be confirmed when benchmarks are achieved. 

•  Egypt: EUR 90 million to support the economic transition; 

• 

Jordan:  EUR  70  million,  half  of  it  to  support  democratisation,  the  other  half  to  support 
inclusive  economic  growth.  The  funds  have  been  split  into  two  tranches  of  EUR  30 
million and EUR 40 million respectively, with the release of the second tranche subject to 
the achievement of benchmarks. 

•  Lebanon:  EUR  30  million  to  support  the  democratisation  process  except  for  EUR  6 

million for Palestine refugees in Lebanon. 

•  Morocco:  EUR  80  million  aiming  chiefly  at  supporting  inclusive  economic  transition, 
with  the  exception  of  a  EUR  2.865  million  project  to  support  reforms  in  the  area  of 
human rights. 

•  Tunisia: EUR 100 million, of which EUR 25 million is to support efforts to achieve legal 
approximation  with  the  EU,  EUR  43  million  is  to  support  the  economic  transition  and 
poor regions and EUR 32 million is to support political and democratic transition. 

Allocations for 2013 will be based on an assessment  of  the  progress  made  in  implementing 
democratic reforms. Lessons from the implementation of the ’more for more’ principle will be 
taken  on  board  so  as  to  increase  the  impact  and  credibility  of  this    key  principle  of  the 
renewed European Neighbourhood Policy. 

23

 
 
24