JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Armenia Progress in 2012 and recommendations for action 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: Armenia, European neighbourhood policy, economic policy, environmental policy, migration policy, political cooperation, rule of law, social policy, trade cooperation

EUROPEAN 
COMMISSION 

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

Brussels, 20.3.2013  
SWD(2013) 79 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Armenia 
Progress in 2012 and recommendations for action 

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) 80 final} 
{SWD(2013) 81 final} 
{SWD(2013) 82 final} 
{SWD(2013) 83 final} 
{SWD(2013) 84 final} 
{SWD(2013) 85 final} 
{SWD(2013) 86 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} 

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1.  

OVERALL ASSESSMENT AND RECOMMENDATIONS 

This  document  reports  on  the  progress  made  in  implementation  of  the  EU-Armenia 
European Neighbourhood Policy (ENP) Action Plan between 1 January and 31 December 
2012,  although  developments  outside  this  period  are  taken  into  consideration  when 
deemed  relevant.  It  is  not  a  general  review  of  the  political  and  economic  situation  in 
Armenia.  For  information  on  regional  and  multilateral  sector  processes,  readers  should 
also refer to the Eastern Partnership (EaP) Implementation Report. 

Political dialogue with the  Armenian Government  intensified in 2012, and  a number of 
high-level  encounters  took  place:  President  Serzh  Sargsyan  was  received  in  Brussels  in 
March  and  a  number  of  visits  to  Armenia  by  high-level  EU  officials  also  took  place: 
these included visits by President of the European Council Herman Van Rompuy in July, 
by  Commissioner  Štefan  Füle  in  September  by  President  of  the  European  Commission 
José  Manuel  Barroso  in  November.  Negotiations  on  an  EU-Armenia  Association 
Agreement  (AA),  including  a  Deep  and  Comprehensive  Free  Trade  Area  (DCFTA), 
progressed at a good pace. Visa Facilitation and Readmission Agreements were initialled 
in October and a Visa Facilitation Agreement was signed on 17 December. As a result of 
progress  in  relation  to  reforms  in  the  area  of  deep  democracy  and  respect  for  human 
rights,  Armenia  has  been  allocated  an  additional  EUR  15  million  under  the  Eastern 
Partnership Integration and Cooperation (EaPIC) programme in 2012. In December, the 
EU and Armenia signed the Protocol to the Partnership and Cooperation Agreement on 
the general principles for the participation of Armenia in EU programmes. 

While  Armenia  made  a  serious  effort  to  address  issues  related  to  human  rights  and 
fundamental freedoms, further work needs to be done, especially in the implementation 
and  enforcement  of  legislation.  Regarding  democracy,  the  May  2012  parliamentary 
elections  and  the  February  2013  presidential  elections  were  observed  as  having  been 
well-conducted, but some specific reforms still needed to be taken forward, in conformity 
with  recommendations  of  the  Organization  for  Security  and  Cooperation  in  Europe’s 
Office  for  Democratic  Institutions  and  Human  Rights  (OSCE/ODIHR),    in  particular 
regarding the legislative framework. 

In addition, despite ongoing reform efforts, public trust in the judiciary continues to be 
low,  and  the  perception  of  corruption  is  still  high.  The  National  Preventive  Mechanism 
under  the  Optional  Protocol  to  the  UN  Convention  against  Torture  needs  to  be  further 
strengthened.  Cases  of  torture  and  ill-treatment  among  military  conscripts,  in  prison 
facilities and at police stations, are not adequately investigated. 

Armenia continued to implement sound macroeconomic policies and structural reforms. 
It made further progress towards meeting the objectives of the Action Plan in the areas of 
macroeconomic  policy,  poverty  reduction  and  social  cohesion.  Economic  activity 
continued  to  grow,  due  to  expanding  exports  and  good  weather  conditions.  Further 
growth  and  economic  development  will  depend  on  improvement  of  the  business 
environment, sustainable fiscal consolidation and the global economic situation. 

The  EU  continues  to  request  the  earliest  possible  closure  of  Medzamor  nuclear  nower 
plant  (NPP),  as  it  cannot  be  upgraded  to  meet  internationally  recognised  nuclear  safety 

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standards.  It  is  a  matter  of  concern  that  Armenia  has  not  yet  drawn  up  a  detailed 
decommissioning  plan  for  Medzamor.  Following  the  Fukushima  nuclear  accident, 
Armenia  undertook  with  the  EU  a  comprehensive  risk  and  safety  assessment  (‘nuclear 
stress  test’)  of  the  plant,  the  report  of  which  will  have  to  be  submitted  in  early  2013. 
Armenia is an active observer of the Energy Community. 

There  has  been  no  progress  in  the  talks  mediated  by  the  OSCE  Minsk  Group  co-chairs 
aimed  at  settling  the  Nagorno  Karabakh  conflict.  Front-line  incidents,  the  Safarov  case 
and  the  opening  of  the  airport  in  Nagorno  Karabakh  have  shifted  priorities  towards 
defusing  tension  rather  than  seeking  a  solution.  There  was  also  no  progress  on  the 
incident  investigation  mechanisms  supported  by  both  sides  at  the  Sochi  Summit  in 
January  2012.  The  European  Union  Special  Representative  on  the  South  Caucasus  and 
the  crisis  in  Georgia  visited  the  region  on  three  occasions  to  support  the  work  of  the 
OSCE Minsk Group, and the EU funded project 'European Partnership for the Peaceful 
Settlement  of  the  Conflict  in  Nagorno  Karabakh',  aimed  at  developing  confidence-
building  measures,  entered  its  second  phase.  There  were  no  positive  moves  towards 
rapprochement  between  Armenia  and  Turkey.  The  EU  continues  to  support  the 
rapprochement process without preconditions. 

Armenia  addressed  some  of  the  key  recommendations  contained  in  the  last  year's  ENP 
progress  report.  It  prepared  a  roadmap  to  improve  the  electoral  process,  adopted  a 
National Human Rights Strategy and took some measures to fight corruption, to reform 
the  judiciary  and  public  administration,  and  to  advance  sectoral  reforms  and  regulatory 
approximation to the EU acquis. Progress is needed also on other key recommendations. 
On the basis of this year’s report and with a view to sustained implementation of the ENP 
Action Plan in 2013,1 Armenia is invited to: 

•  Further  address  the  shortcomings  identified  by  the  OSCE/ODIHR  concerning  the 
May  2012  parliamentary  elections  and  February  2013  presidential  elections,  by 
implementing  all  OSCE/ODIHR  recommendations,  including  changes  to  the 
legislative framework after the presidential elections. 

•  Fully  investigate  the  deaths  that  occurred  during  clashes  following  the  March  2008 
presidential  elections  and  the  allegations  of  ill-treatment  in  police  custody  and 
violation of due process. 

•  Step  up  efforts  with  Azerbaijan  to  reach  agreement  on  the  Madrid  Principles,  in 
accordance with the commitments made by the Presidents of Armenia and Azerbaijan 
within the Minsk Group. 

•  Ensure  unimpeded  access  to  representatives  of  the  EU  to  Nagorno  Karabakh  and 
in  full 

transformation  activities 

surrounding  regions 
in  support  of  conflict 
complementarity with the Minsk Group activities. 

•  Promote an environment conducive to progress in conflict settlement, encourage and 

support related peace-building activities. 

1 The Action Plan should be replaced by the Association Agenda in the course of 2013. 

3

 
 
 
                                                 
•  Ensure implementation of the National Human Rights Strategy, formulate, adopt and 

implement the related Action Plan. 

•  Adopt  amendments  to  the  legislation  on  broadcasting  in  compliance  with  the 
recommendations  of  the  OSCE  and  the  Council  of  Europe,  and  ensure  pluralism  in 
the broadcasting media. 

•  Finalize  the  draft  law  on  Conscience  and  Religious  Freedoms,  in  line  with 
international  standards,  as  well  as  the  legislation  on  alternative  civilian  service,  in 
conformity with Venice Commission and OSCE recommendations. 

•  Adopt  comprehensive  anti-discrimination  legislation,  including  further  steps  leading 
to the harmonization of legislation with the EU acquis in the areas of gender equality 
and non-discrimination. 

• 

Intensify the prevention of and the fight against corruption, including implementation 
of  laws  adopted  in  2012  and  reinforcement  of  capacities,  independence  and 
transparency of the State Commission on the Ethics of High-Ranking Officials. 

•  Strengthen the implementation of governance reforms, including measures to reform 
the law enforcement and judicial sectors (especially to increase public trust in and the 
independence of the judiciary, improve the training of judges and review the code of 
criminal procedure). 

•  Continue  the  reform  of  public  administration,  in  particular  through  strengthening 
merit-based  career  and  pay  paths  in  the  civil  service,  strengthening  institutional 
capacity  of  local  governments  and  continuing  with  reform  of  the  public  finance 
management sphere. 

•  Continue to advance sectoral reforms and regulatory approximation to the EU acquis 
in trade and trade-related areas, in parallel to the ongoing negotiations on a DCFTA, 
in particular in the areas of Sanitary and Phytosanitary Measures, Technical Barriers 
to Trade, Intellectual Property Rights and Customs. 

•  Enhance  efforts  to  provide  for  a  competitive  economic  environment,  including 
through  improvements  in  contract  enforcement,  ease  of  paying  taxes  and  trading 
across borders. 

•  Work towards the earliest possible closure of the Medzamor nuclear power plant and 
adopt a detailed decommissioning plan for this plant, taking into account the result of 
the 2012 stress tests report. 

2. 

POLITICAL DIALOGUE AND REFORM 

Towards deep and sustainable democracy 

The Armenian authorities delivered relatively transparent and competitive parliamentary 
elections  in  May  2012.  An  EU  project  to  support  the  election  processes  in  Armenia 
implemented  by  the  OSCE  helped  improve  the  technical  capacities  of  election 
commissions and the election observation capacity of civil society. At the same time, the 
OSCE/ODIHR  election  observation  mission  identified  a  number  of  issues  which  still 
needed  to  be  addressed  before  presidential  elections  in  February  2013.  In  September, 

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local elections took place in most Armenian regions: a delegation from the Congress of 
Local and Regional Authorities of the Council of Europe observed the election days only 
and expressed moderate satisfaction. In December, two candidates from the ruling party 
won  parliamentary  by-elections  which  their  opposition  challengers  condemned  as 
fraudulent.  In  February  2013,  presidential  elections  took  place,  with  OSCE/ODIHR 
pointing  to  further  improvements  in  terms  of  administration  of  the  election  process, 
including better quality of voters' lists, but also reporting cases of pressure on voters and 
multiple ballot casting. Public trust in the electoral process remained low. 

In 2012, the freedoms of expression, and assembly were generally respected. In May, 
the  Human  Rights  Defender  and  the  police  established  a  working  group  to  review  the 
Law  on  Public  Gatherings.  The  proposed  revisions  aimed  to  clarify  the  imprecise 
language of the current law. 

Media  independence  remained  insufficient.  Armenia’s  broadcasting  law,  amended 
several  times,  continued  to  raise  concerns  about  media  pluralism.  The  legal  basis  for 
possible  withdrawal  of  broadcasting  licences  is  currently  too  broad,  which  may  lead  to 
arbitrariness.  The  authorities  have  not  taken  any  further  steps  to  reform  legislation  in 
order  to  adequately  protect  media  outlets  against  politically  biased  abuses  in  civil 
defamation  cases.  Print  media  outlets  were  relatively  diverse  and  some  progress  was 
registered  in  electronic  media,  with  ArmNews  TV  channel  devoting  a  slot  to  the 
newscasts of the opposition-related A1+ TV channel, whose licence had been revoked in 
2002.  The  OSCE/ODIHR  election  monitoring  mission  found  that  all  major  political 
parties generally had access to the media. 

In  July,  President  Sargsyan  signed  the  Strategic  Programme  for  Legal  and  Judicial 
Reforms 2012-2016. The reforms in this area do not sufficiently address issues pertaining 
to the independence of the judiciary, including limited influence of the Council of Justice 
(courts’  self-governing  body)  on  the  adoption  of  the  budget,  termination  of  judicial 
powers on the grounds of temporary incapacity to work and participation of the Minister 
of Justice in disciplinary proceedings against judges. Lack of transparency in the work of 
the  Court  of  Cassation  led  to  an  unprecedented  day-long  strike  by  500  lawyers 
representing the Lawyers’ Chamber of Armenia in May. 

Some  progress  was  made  in  the  area  of  access  to  justice,  in  particular  through  the 
introduction  of  the  Random  Case  Assignment  Procedure  in  the  courts,  incorporation  of 
accelerated pre-trial procedures for minor cases into the draft Criminal Procedure Code, 
and a draft law on amendments to the Civil Procedure Code to establish the procedure for 
class action suits. The EU programme supporting the reform of the justice sector allowed 
Armenia  to  increase  the  number  of  Public  Defenders  from  32  to  52,  which  also  helped 
enhance access to justice. A School of Advocates was established with EU support and is 
now  operational.  A  new  EU  sector  support  programme  of  EUR  20  million  to  support 
further justice reforms was approved in 2012, with a top-up of EUR 9 million from the 
EaPIC programme. 

There  are  still  no  concrete  results  from  the  investigation  of  ten  deaths  that  occurred 
during  the  clashes  of  March  2008;  the  EU  is  also  concerned  that  allegations  of  ill-
treatment  in  police  custody  and  violations  of  the  right  to  due  process  have  not  been 
adequately addressed in the aftermath of these events. The vote in the Armenian National 

5

 
 
Assembly on setting up an ad hoc commission to focus on the 2008 post-election unrest 
will not be held until after the February 2013 presidential election. 

In  2012  there  was  limited  action  against  high-level  corruption,  as  demonstrated  by 
several  corruption-related  dismissals.  Allegations  of  corruption 
throughout  state 
institutions  continue  to  undermine  public  trust.  A  number  of  legal  acts,  which  could,  if 
implemented  properly,  reduce  the  risk  of  corruption,  were  adopted  in  2012,  including 
amendments  to  the  Law  on  the  National  Assembly  Procedure,  to  the  Law  on  Public 
Service and to the Law on Political Parties. In January, a State Commission on the Ethics 
of High-Ranking Officials was set up. There are concerns about shortcomings regarding 
the  capacity  and  powers  of  this  Commission  and  the  transparency  of  its  work.  The 
December 2012 Compliance Report by the Council of Europe’s Group of States against 
Corruption  (GRECO)  is  positive  as  regards  implementation  of  recommendations  for 
legislation. GRECO concludes that Armenia has implemented satisfactorily 16 out of 19 
recommendations  contained  in  its  Third  Round  Evaluation  Report,  covering  aspects 
related to incriminations and political party funding. 

In an opinion dated 28 December 2012, Transparency International Armenia alleged that 
large-scale corruption occurred during the reconstruction of Yerevan city centre. 

In  September,  the  Government  adopted  amendments  to  the  decree  on  Procurement 
Process Management, aimed at increasing the efficiency of procurement exercises on the 
ground,  ensuring  transparency  and  reducing  corruption  risks.  The  Head  of  the  State 
Procurement  Assistance  Centre  was  dismissed  after  a  report  highlighted  instances  of 
mismanagement in the procurement process. One positive development was the launch of 
an 'e-payments' website to reduce the cost of service fees and to minimise the amount of 
cash  handling  by  civil/municipal  servants,  thus  reducing  one  of  the  corruption  risk 
factors. In October, the National Assembly voted in favour of a request by the Prosecutor 
General  to  revoke  the  immunity  of  a  prominent  Member  of  Parliament  who  was 
subsequently  charged  with  misappropriation  of  funds  and  money  laundering.  The  case 
raised concerns about its possible political motivation. Armenia ranked 105th out of 176 
countries  and  territories  around  the  world  in  the  Transparency  International  Corruption 
Perception Index 2012. 

Other human rights and governance-related issues 

A  National  Strategy  for  Human  Rights  Protection  was  signed  into  law  in  October.  The 
Strategy  and  the  relevant  Action  Plan  should  ensure  the  implementation  of  a 
unified, targeted and coordinated policy for the protection of human rights in Armenia. 

In  April,  six  offices  of  the  Human  Rights  Defender  (ombudsman)  were  opened  in  the 
regions,  with  EU  financial  support,  in  an  effort  to  strengthen  the  capacities  and 
accessibility of this essential institution. 

Armenian legislation criminalising torture presents a difficulty as it does not conform to 
the definition of torture in the UN Convention against Torture (it does not include crimes 
committed  by  public  officials,  but  only  by  individuals  acting  in  a  private  capacity). 
Accordingly,  no  public  official  has  ever  been  convicted  on  torture  charges  in  Armenia. 
The  Human  Rights  Defender,  who  has  been  designated  as  the  national  preventive 

6

 
 
mechanism under the UN Optional Protocol to the Convention against Torture, still lacks 
adequate resources to carry out his tasks effectively. 

Armenia made some efforts to improve conditions of detention in prisons, including the 
refurbishment of some facilities and work on the construction of a new prison. However, 
concerns  remain  about  continued  reports  of  severe  overcrowding,  understaffing  and 
inadequate food rations and healthcare. Hardly any of the recommendations made on the 
detention  of  prisoners  serving  life  sentences  have  been  implemented,  according  to  the 
report by the Council of Europe’s Committee for the Prevention of Torture and Inhuman 
or Degrading Treatment or Punishment. 

There  is  continuing  public  anxiety  about  suspicious  deaths  in  the  Armenian  Armed 
Forces under non-combat conditions, as well as concern over the practice of hazing and 
other  mistreatment  of  conscripts  by  officers  and  fellow  soldiers.  Investigations  into 
these  crimes  rarely  produce  results.  In  March  2012,  the  National  Assembly  adopted  a 
new  Military  Disciplinary  Code,  which  should 
in  military 
establishments and enforce the rights of soldiers. 

improve  discipline 

There was no significant progress on freedom of religion and belief, in terms of proper 
legislation  and  practice.  Jevohah's  Witnesses  in  particular  have  complained  about 
victimisation  as  far  as  provisions  for  alternative  military  service  are  concerned:  the 
Alternative Military Service Act, as amended in 2004 and 2006, still does not guarantee 
conscientious  objectors  a  genuine  alternative  service  of  a  clearly  civilian  character. 
Conscientious objectors are still imprisoned when they refuse to perform either standard 
military  service  or  the  existing  'alternative'  military  service.  A  draft  amendment  of  the 
law to address the issue has  not been considered yet by  parliament.  The  Human  Rights 
Defender, after consultations with civil society, proposed amendments to the draft law on 
Freedom of Conscience and Religion, aiming mainly to bring the draft law into line with 
international standards. 

Regarding  women's  rights,  Armenia  still  has  not  adopted  legislation  criminalising 
domestic  violence.  The  latest  reports  reveal  that  the  practice  of  pro-male  sex-selective 
abortions is on the increase. Legislation on prohibition of sex selection has not yet been 
developed. 

Armenia has not yet ratified the 2007 Council of Europe Convention on the Protection of 
Children against Sexual Exploitation and Sexual Abuse. Since its creation, the National 
Commission  for  the  Protection  of  Children’s  Rights  (NCCP)  has  not  been  adequately 
empowered.  Its  2004-2012  National  Plan  of  Action  has  not  been  taken  into  account  by 
line ministries. Progress is still lacking in the promised “de-institutionalisation” reforms, 
despite  the  repeated  commitments  of  the  Government  to  steadily  reduce  the  number  of 
children  in  residential  care  and  to  develop  a  network  of  community  social  workers. 
Concrete progress was however witnessed in broadening access of all children to schools, 
with  a  progressive  increase  in  the  number  of  schools  certified  as  inclusive  and  the 
opening of pre-school facilities in many rural communities. 

In  its  final  report  about  the  conduct  of  the  May  parliamentary  elections,  the 
OSCE/ODIHR  Election  Observation  Mission  stated  that  about  55%  of  polling  stations 
observed  were  not  readily  accessible  for  people  with  disabilities.  Analysis  of  the 

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UNICEF research on access to services for children with disabilities (2012) reveals that 
these children face high barriers in gaining access to services. 

Comprehensive  legislation  on  discrimination  is  not  yet  in  place,  while  discriminatory 
attitudes are widespread. The current definition of discrimination does not cover all forms 
of discrimination (race, colour, sex, language, religion, political or other opinion, national 
or social origin, property, gender, sexual orientation or other status). Moreover, efforts to 
ensure effective implementation of the current laws are inadequate. 

Efforts need to be stepped up on ensuring non-discrimination in social life, in particular 
regarding  the  lesbian,  gay,  bisexual  and  transgender  community.  The  firebombing  of  a 
pub in Yerevan in May, the subsequent disruption of the Diversity March, cancellation of 
a  film  screening  on 
tolerance  under  pressure  from  unidentified  entities,  and 
discriminatory  statements  from  influential  politicians  are  incompatible  with  European 
values. This area has not been covered by the National Human Rights Strategy. 

The  issues  of  teaching  in,  broadcasting  in  and  use  in  courts  of  the  minority  Assyrian, 
Yezidi,  Kurdish  and  Greek  languages  still  need  to  be  addressed,  despite  2009 
recommendations by the Council of Europe Committee of Ministers. 

The EU has repeatedly stressed the benefits, for both policymaking and accountability, of 
an  active  and  continuous  civil  society  dialogue.  The  current  framework  of  cooperation 
between government and civil society is insufficient. The Public Council created in 2008 
is  inefficient  and  is  ignored  by  many  leading  civil  society  organisaions.  However, 
dialogue  with  civil  society  started  in  selected  areas  with  the  participation  of  the  NGOs 
active  in  the  EaP  National  Platform.  A  non-paper  on  strengthening  the  role  of  the  EaP 
Civil Society National Platform in Armenia was handed over by the EU to the Armenian 
authorities in December. 

Cooperation on foreign and security policy, conflict prevention and confidence 
building 

In  2012,  Armenia  aligned  itself  with  35  out  of  62  EU  CFSP  declarations  it  was  invited  to 
support (40 out of 82 in 2011). Negotiations between Armenia and Azerbaijan to resolve the 
Nagorno-Karabakh conflict slowed down. The Armenian and Azerbaijani Presidents have 
not  reconvened  since  the  Sochi  meeting  in  January,  and  the  Foreign  Ministers  mostly 
limit  their  availability  for  meetings  in  the  OSCE  Minsk  Group  Co-Chair  format  to 
separate approximation talks. 

The  security  situation  remained  volatile.  In  June,  there  were  serious  tensions  at  the 
Armenian-Azerbaijani border with a minimum of eight servicemen reported killed. This 
coincided with the visit of US Secretary of State Hillary Clinton to the region. 

The latest dynamics in bilateral relations impact negatively on trust between the parties 
and  run  counter  to  the  Presidents'  readiness,  as  expressed  at  the  beginning  of  2012,  to 
speed up agreement on basic principles on the basis of the work done thus far. The EU 
has therefore repeatedly urged restraint in actions and public statements, in order not to 
escalate an already difficult situation. 

8

 
 
September saw the launch of the second phase of the EU-funded civil society programme 
European Partnership for the Peaceful Settlement of the Conflict over Nagorno-Karabakh 
(EPNK). Its aim is to support peace-building efforts by facilitating dialogue between civil 
society, the media and policymakers. 

There  were  no  positive  developments  with  regard  to  rapprochement  between  Armenia 
and Turkey. The EU continues to support the process without preconditions. 

3. 

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning market economy2 

GDP  growth  accelerated  to  7.2%  in  2012,  mainly  driven  by  an  increase  in  private 
consumption and in exports, although investments continued to weaken. Activity rose in 
mining, agriculture, services and construction. 

Inflation  remained  moderate.  After  reaching  0.5%  in  May  2012,  it  rebounded  slightly 
following  the  increase  in  world  energy  prices.  The  average  inflation  was  2.6%  in  2012 
and is expected to remain within the central bank's target of 4% ± 1.5 percentage points 
in the coming years. The central bank has kept the policy interest rate steady at 8 % since 
September 2011. 

The fiscal position continued to improve. The budget deficit is expected to decline to 2% 
of GDP in 2012. According to the IMF, public debt is expected to reach 45% of GDP at 
the end of 2012. Almost 90% of the debt is external, vulnerable to exchange rate changes. 

The  current  account  deficit  is  expected  to  remain  above  10%  of  GDP  in  2012. 
Remittances  grew  in  the  first  three  quarters  of  2012  by  7%,  against  24.5%  in  2011. 
Exports increased by 5.1% in the same period (in 2011 32.8%). The FDI in the first three 
quarters of 2012 was 23.5% lower than in the same period a year before. Foreign reserves 
are expected to drop to 3.6 months of imports in 2012 (from 4.6 months in 2011) due to 
the central bank's interventions to limit the exchange rate fluctuations. 

The economy was supported by a financing arrangement with the IMF, expiring in mid-
2013,  and  exceptional  donor  assistance.  The  IMF  is  considering  a  new  assistance 
arrangement  together  with  other  donors,  including  the  EU  with  a  new  Macro-Financial 
Assistance. 

Social situation, employment and poverty reduction  

The unemployment rate for the year is expected  to decrease to 15% down from 18.4% 
in  2011.  National  data  indicate  that  the  activity  rate  remained  stable  at  62.9%  (in 
September), while youth unemployment remained at a very high level, at 39.2%. Levels 
of  social  inclusion  remained  low.  About  55%  of  Armenia’s  population  is  not  actively 

2 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by 
the national statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. 
When other data sources are used these are then indicated. 

9

 
 
                                                 
 
included  in  the  social  and  public  processes;  the  level  of  inclusion  in  provinces  is  even 
lower, according to the latest 2011 UNDP report on social inclusion in Armenia. 

The  financial  crisis  partly  wiped  out  Armenia’s  recent  gains  in  living  standards  and 
progress in poverty reduction. Around 36% of the population is below the poverty line, 
with  children  particularly  vulnerable.  More  than  70%  of  families  with  at  least  four 
children lived in poverty. Salaries were significantly affected by the economic crisis, with 
the minimum salary amounting to AMD 32000 (approximately EUR 64) in 2012. 

In  July,  the  Government  approved  a  strategy  for  integrated  social  services,  which 
envisages  a  social  workers'  institute,  and  launched  a  pilot  project  in  the  Ararat  region.  
Armenia  also  approved  additional  legislation  to  prepare  for  the  launch  of  the  new 
pensions system in 2014. The Sustainable Development Programme on poverty reduction 
remained suspended as a result of the economic crisis, and a review was initiated at the 
end of 2012. The EU started preparing a programme to support the regional development 
in Armenia aiming to reduce the social and economic disparities among the regions. 

In November, Armenia adopted a National Employment Strategy and Action Plan 2013-
2018, which includes objectives for the medium-term in the area of employment policy 
and a set of actions for achieving them. 

In the area of agriculture, in June 2012 the EU and Armenia started negotiations on the 
protection of Geographical Indications in the DCFTA framework. 

4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  is  Armenia's  main  trading  partner  accounting  for  32.5%  of  its  trade  volume  in 
20113.  Bilateral  trade  flows  decreased  and  during  the  first  eleven  months  of  2012 
amounted to EUR 874 million. EU exports to Armenia  consisted  mainly  of  mechanical 
appliances, precious stones and electrical machinery. EU imports from Armenia consisted 
mainly of base metals (cooper, iron and steel) and mineral products (ores and slag). 

In February 2012, the EU decided to launch negotiations on a Deep and Comprehensive 
Free  Trade  Area  (DCFTA)  with  Armenia.  The  start  of  this  process  is  the  result  of 
significant  progress  achieved  by  Armenia  in  the  preparatory  phase  and  its  substantial 
efforts  directed  towards  the  implementation  of  all  necessary  requirements.  Three 
negotiation rounds were concluded in 2012, showing a clear willingness and readiness of 
Armenia to advance in these negotiations. In parallel, Armenia continued the process of 
internal  reforms  implementing  the  DCFTA-related  key  recommendations  as  outlined 
below. 

In  the  area  of  customs  and  excise,  the  amendment  to  the  Law  on  Excise  Tax  allowed 
excise stamps for alcohol products to be affixed under customs control. Further reforms 
are  necessary  in  the  areas  of  verification  of  customs  value,  post-clearance  controls  and 
certification of origin. Armenia should increasingly harmonise its Customs Code with the 
Community Customs Code. 

3 Data for 2012 was not available at the time of writing. 

10

 
 
                                                 
In  the  area  of  free  movement  of  goods  and  technical  barriers  to  trade,  Armenia 
adopted in February 2012 four fundamental laws on technical regulation, standardisation, 
accreditation  and  uniformity  of  measurements.  Further  implementing  legislation, 
complementary to the aforementioned laws, was in preparation, namely a law on market 
surveillance, a law on general product safety and a law on liability for defective products. 
Armenia  prepared  implementing  regulations  for  the  reform  of  the  standardisation  and 
accreditation bodies in line with EU practices. Regarding the Government’s programme 
for approximation with EU legislation, there has been progress in the area of toy safety 
(law  drafted),  while  other  priority  sectors  will  start  approximation  in  2013;  meanwhile 
new priority sectors should be identified. 

Armenia  adopted,  following  a  gap  analysis,  a  programme  for  approximation  with  EU 
standards  in  the  field  of  sanitary  and  phytosanitary  (SPS)  legislation.  It  strengthened 
the  capacity  of  the  State  Service  of  Food  Safety.  It  established  a  centre  for  animal-
sanitary  and  phyto-sanitary  laboratory  services  within  the  Food  Safety  Service,  and 
drafted  a  programme  for  the  capacity  building  of  its  branches.  Implementation  of  the 
Food  Safety  Strategy  and  Action  Plan  continued  with,  for  example,  amendments  to  the 
law on safety of food products. Training of SPS experts continued including with TAIEX 
support. Armenia is encouraged to continue approximation and to further build laboratory 
capacity. 

Business  climate  in  Armenia  continues  to  suffer  from  corruption  and  the  lack  of 
effective competition. The situation improved in terms of getting electricity, protection of 
investors and abolishing fees for the registration of companies. Armenia advanced to 32nd 
place  (out  of  185)  in  the  ease  of  doing  business  ranking  in  the  World  Bank's  ‘Doing 
Business  2013’  annual  report.  Armenia  ranked  35th  in  the  Economic  Freedom  of  the 
World  2012  report,  marking  an  improvement  in  freedom  to  trade  internationally. 
Improvements in  contract enforcement,  ease of  paying  taxes  and  trading across borders 
could help attract further investment to Armenia. 

In  the  area  of  financial  services,  Armenia  developed  a  draft  concept  on  the  main 
recommendations  for  strengthening  regulation  of  bank  capital  and  liquidity,  established 
by Basel III. Measures were taken for introducing the Solvency II system. A draft law on 
accounting,  and  harmonising  financial  reports  of  small  and  medium-sized  enterprises 
(SMEs)  with  international  standards,  was  sent  to  parliament.  Further  implementation 
efforts  are  essential  for  the  reforms  in  this  area. Movement  of  capital  did  not  undergo 
substantial regulatory changes in 2012. 

Other key areas 

Armenia adopted a tax policy strategy for 2013–15 following OECD guidelines and a tax 
administration strategy for 2012–14 that is focused on expanding the scope of e-filing. A 
new  compulsory  income  tax,  merging  social  security  deductions  and  private  insurance 
payments,  entered  into  effect  in  January  2013.  Armenia  also  introduced  software, 
integrating tax and customs information. A sizeable increase in Armenia’s tax revenue as 
envisaged  by  the  2012  budget  was  essential  for  raising  Government  expenditure  and  at 
the  same  time  cutting  the  budget  deficit.  To  ensure  implementation  of  the  Action  Plan, 
Armenia is encouraged to implement further reforms in tax administration as well as in 
tax policy and legislation. 

11

 
 
No progress was made in the area of competition. Amendments to the Competition Act 
and a draft State Aid act were submitted to the Government, but were then returned for 
further  amendments.  Four  bylaws  necessary  for  implementing  the  new  State  Aid  law 
were  also  drafted.  If  adopted,  they  would  put  the  legislation  fully  in  line  with  EU 
principles.  Its  effective  implementation  would  still  call  for  appropriate  resources  and 
investigative powers for the competition authority. Amendment of the Competition Act is 
part of the Action Priority Plan of Armenia for 2012. 

A new Unit on Intellectual Property Rights (IPR) enforcement was created within the 
Customs Service to deal with rightholders’ applications for customs action in respect of 
goods  infringing  IPR,  indicating  progress  in  this  area.  In  May,  Armenia  created  a 
Trademark Association to improve awareness and advocacy of the IPR system. Another 
positive  development  was  the  change  of  status  of  the  Collective  Management 
Organisation  ‘ArmAuthor‘,  which  apart  from  authors’  rights  and  the  obligations  of  the 
organisation,  now  also  addresses  related  rights.  Armenia  is  drafting  IPR  enforcement 
provisions to be included in the relevant codes. It is also drafting a new copyright law. To 
encourage  further  IPR  reform  implementation,  administrative  capacity  should  be 
strengthened and the creation of an IPR enforcement centre is recommended. A twinning 
project is helping Armenia to enhance police enforcement capacity and to introduce EU 
best practice and international standards on IPR protection and enforcement. Ratification 
of the International Convention for the Protection of New Varieties of Plants was pending 
and accession to the Patent Law Treaty and Trademark Law Treaty have yet to happen. 

Since January 2012 all open procurement state purchases are expected to be done through 
e-procurement. However, technical difficulties are hampering the full introduction of the 
new system. 

In  the  area  of  statistics,  Armenia  published  preliminary  results  of  the  2011  Population 
Census (final results are expected by the end of 2013). Preparations are under way for the 
Agricultural Census, with a pilot planned for 2013. Armenia made significant progress in 
the implementation of international classifications such as NACE Rev.2 (classification of 
economic activities) and COICOP (classification of individual consumption by purpose). 
A  new  user-friendly  website  for  statistical  data  was  introduced  to  the  public  and 
significant  progress  was  made  in  developing  metadata.  Armenia  began  to  approximate 
national 
the  EU  regulations  on  data  security  and  statistical 
confidentiality. 

legislation  with 

No  significant  progress  was  noted  in  2012  in  the  area  of  enterprise  policy  in  Armenia 
after  the  recent  extensive  deregulation  initiatives.  The  Government  regards  SME 
development  as  a  strategic  priority,  but  the  sector  still  needs  a  strong  and  viable 
development  strategy  and  effective  policy  implementation  mechanisms  as  well  as 
effective  implementation  of  the  legal  framework  for  regulatory  impact  analysis  (RIA). 
The  EU  continues  to  support  SMEs  through  projects  such  as  East-Invest  and  the  Small 
Business Support programmes. 

Armenia amended transparency-related regulations aimed at ensuring standardisation and 
harmonisation  of  information  on  retail  services,  in  order  to  improve  consumer 
protection. 

12

 
 
In the area of public internal financial control the implementation of the Government’s 
public  finance  management  reform  strategy  the  number  of  internal  audit  functions 
reached  52  government  entities,  in  addition  to  the  City  Hall  of  Yerevan  and  46  city 
communities, with the relative training underway. 

No significant progress was noted in the areas of company law, including accounting 
and auditing and external auditing. 

The  EU  continued  to  provide  considerable  support  to  trade-related  reforms  through 
budget  support,  the  EU  Advisory  Group,  the  comprehensive  institution  building 
programme (CIB), technical assistance, TAIEX and twinning (in the areas of IPR, SPS, 
market  surveillance,  competition  and  State  aid,  statistics  and  customs,  etc.).  DCFTA 
reforms are the main focus of sector budget support from the multi-annual programming 
budget 2011-2013 (NIP II). 

5.  

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

In  early  2012  Armenia  established  an  Interagency  Committee  responsible  for  the 
coordination, implementation and monitoring of the EU-Armenia Mobility Partnership 
signed  in  October  2011,  as  well  as  the  National  Action  Plan  on  Migration.  An 
information  system  for  migration  flows  would  be  beneficial  for  implementing  the  plan. 
The  EU  is  providing  substantial  support  to  migration  and  mobility  in  Armenia  through 
sector  policy  support,  the  EU  Advisory  Group,  several  thematic  projects,  twinning  and 
the  comprehensive  institution-building  programme  (CIB).  The  EU-funded  Mobility 
Partnership support project "Strengthening Armenia's migration management capacities, 
with  special  focus  on  reintegration  activities  in  the  framework  of  the  EU-Armenia 
Mobility Partnership" was signed in December 2012. Study visits and expert missions on 
asylum procedures according to EU standards took place through TAIEX. 

The EU-Armenia negotiations on visa facilitation and readmission agreements, launched 
in February 2012, were conducted swiftly. Parties initialled both agreements in October. 
The  Visa  Facilitation  Agreement  was  signed  on  17  December.  In  October  the 
Government signed a decree that will lift the visa obligation for EU citizens by January 
2013. As of June, Armenia started issuing biometric passports. 

The Government started an ambitious project on the modernisation of Bagratashen, Bavra 
and Gogavan Border Crossing Points between Armenia and Georgia in accordance with 
Integrated  Border  Management  (IBM)  standards  (approx.  EUR  61  million).  A  grant  of 
EUR  12  million  from  the  EU  Neighbourhood  Investment  Facility  was  approved, 
combined  with  loans  by  the  EIB  and  EBRD,  and  further  support  was  provided  through 
the  Eastern  Partnership  Integrated  Border  Management  Flagship  initiative.  In  February, 
Armenia and FRONTEX signed a Working Arrangement. 

The  Council  of  Europe  published  Armenia's  first  evaluation  report  on  human 
trafficking, welcoming efforts but noting a need to increase the awareness of vulnerable 
groups and improve the identification of victims. 

13

 
 
The  national  programme  to  combat  organised  crime  was  approved  in  April  and  a 
timetable  of  measures  for  its  implementation  was  adopted.  Armenia  adopted  a  new 
strategy on money laundering and financing of terrorism. Legislative amendments were 
prepared for the licensing and control of the gambling business from the perspective of 
combating money laundering. The amendments aim at penalising legal entities involved 
in these activities and not only individuals. 

Armenia  should  further  implement  the  programme  for  combating  drug  addiction  and 
drug  trafficking.  In  October,  Armenia  reiterated  its  willingness  to  establish  close 
cooperation  with  the  European  Monitoring  Centre  for  Drugs  and  Drug  Addiction 
(EMCDDA). 

The Ministry of Emergency Situations established a 24-hour Situation Centre, intended to 
ensure  effective  interagency  coordination  in  crisis  management,  including  response  to 
terrorism. 

In the area of police and judicial cooperation, law enforcement authorities from Eastern 
Partnership  countries  met  in  Yerevan  in  April  in  the  context  of  a  joint  EU-Council  of 
Europe  project  on  cybercrime.  The  2012-2014  police  reform  programme  is  still  not 
finalised. 

Armenia should further implement its programme for fighting illegal drugs.  In October, 
Armenia  reiterated  its  willingness  to  establish  close  cooperation  with  the  European 
monitoring centre for Drugs and Drug Addiction (EMCDDA). 

Armenia ratified the Council of Europe Convention for the Protection of Individuals with 
regard  to  Automatic  Processing  of  Personal  Data  and  the  Additional  Protocol  to  this 
Convention in May. 

TRANSPORT,  ENERGY,  ENVIRONMENT,  THE  INFORMATION  SOCIETY,  RESEARCH 

6.  
AND INNOVATION 

Armenia  made  some  progress  towards  approximation  with  EU  and  international 
transport  rules.  Steps  were  taken  to  join  the  European  Agreement  concerning  the 
International  Carriage  of  Dangerous  Goods  by  Road  (ADR)  and  the  Convention  on 
Transit  Trade  of  Land-locked  States.  In  2012,  Armenia  amended  road  traffic  offence 
legislation, increasing drivers’ responsibility for violations. Armenia pursued a policy to 
improve safety on its roads, but the level of accidents remains very high compared to the 
EU  average.  The  Eastern  Partnership  Road  map  2012-13  includes  the  objective  of 
negotiating Common Aviation Area Agreements with the Eastern Partnership countries. 
Achievement of this objective will depend on Armenia’s readiness and interest. With EU 
support,  Armenia  moved  further  towards  approximation  with  the  EU  aviation  safety 
legislation.  In  infrastructure  development,  Armenia  focused  on  developing  the  North-
South  road  corridor.  Through  the  Neighbourhood  Investment  Facility,  the  EU  helped 
Armenia to modernise road border crossings with Georgia. 

Armenia continued work on an updated energy strategy. It was an active observer of the 
work of the Energy Community. Armenia decided to extend, for energy security reasons, 

14

 
 
operations at the second unit of the Medzamor Nuclear Power Plant until a new unit is 
launched.  Preparations  continued  with  a  view  to  the  construction,  planned  to  start  in 
2013, of a new nuclear power plant at the Medzamor site. In line with the EU-Armenia 
action plan, the EU continues to request the earliest possible closure of Medzamor, as it 
cannot be upgraded to meet internationally recognised nuclear safety standards. Armenia 
is  being  encouraged  to  develop  a  detailed  decommissioning  plan  for  Medzamor  and  to 
adopt a radioactive waste strategy. 

Armenia  pursued  safety  upgrading  at  Medzamor.  The  country  is  also  implementing  a 
comprehensive risk and safety assessment (‘stress tests’) at the plant, with EU technical 
support.  The  electric  power  output  of  small  hydropower  plants  increased.  Armenia  is 
encouraged to increase its efforts on energy efficiency. Armenia continued upgrading the 
Abovyan  underground  gas  storage.  Armenia  is  planning  a  North–South  electricity  grid 
with its neighbours. The feasibility study for an electricity interconnection with Georgia 
is underway, while the construction of such an interconnection with Iran has started. 

In the field of climate change, Armenia announced that it would take voluntary measures 
to limit greenhouse gas emissions. Seminars on energy efficiency in housing, as well as 
climate  change  mitigation,  were  held  throughout  the  year.  The  Regional  Environmental 
Centre  for  the  Caucasus  (REC-C)  continued  implementing  an  EU-funded  project  on 
adaptation  to  climate  change.  Armenia  participated  in  preparations  for  the  forthcoming 
regional EU Clima East project (EUR 18 million) that will be implemented in the period 
2013-2016.  Armenia  is  encouraged  to  build  capacity  and  engage  in  the  new  carbon 
market  mechanism  to  be  developed  following  the  17th  and  18th  sessions  of  the  United 
Nations Framework Convention on Climate Change Conference of the Parties. Armenia 
is also encouraged to make additional efforts to fully implement the Cancun and Durban 
agreements and in particular devise a low-carbon development strategy. 

As  regards  the  environment,  a  working  group  including  participants  from  civil  society 
continued developing a new law on environmental impact assessment (EIA). The Nature 
Protection  Ministry  migrated  to  an  e-documentation  system  to  promote  transparency  of 
activities. Deforestation continued to be a concern, including illegal logging. Civil society 
representatives questioned the ability of the revised mining code to provide a framework 
for better management of mineral resources and environmental protection, as it does not 
envisage  any  payment  for  resource  use  or  waste  disposal.  Armenia  is  encouraged  to 
strengthen  its  environmental  legislation  and  administrative  capacity,  to  apply  EIA 
procedures consistently and to pay particular attention to public participation. 

The REC-C continued its activities. Its financial and institutional sustainability still need 
strengthening. 

On  civil  protection,  an  EU  financed-project  on  disaster  risk  reduction  was  launched  in 
June as a follow-up to previous initiatives. Armenia also continued to participate in the 
EaP flagship project on prevention, preparedness and response to natural and man-made 
disasters  (PPRD  East).  As  a  part  of  the  programme  Armenia  is  contributing  to  the 
development  of  Electronic  Regional  Risk  Atlas.  Relevant  Armenian  institutions  are 
involved  in  respective  activities  and  the  development  phase  of  the  atlas  is  close  to 
completing  in  the  country.    Armenia  is  encouraged  to  take  advantage  of  the  guiding 

15

 
 
document on Risk Assessment Policy for the EaP region produced under the PPRD East 
programme. 

Armenia has  established National Disaster Risk Reduction Platform with regards to the 
implementation of the "Hyogo Framework for Action: Building the Resilience of Nations 
and  Communities  to  Disasters"  and  submitted  a  national  progress  report  covering  2011 
and 2012. 

The  Armenian  market  for  electronic  communications  grew  steadily  in  2012.  Positive 
dynamics were observed in the take-up of both fixed and mobile broadband services in 
the country, thanks to the development and expansion of data transmission networks. At 
the time of writing, there are three mobile operators operating mobile cellular networks 
based on the 3G standard; one operator has launched commercial 4G/LTE-based services 
in Yerevan. In 2012 the regulatory authority introduced mandatory shared use of the main 
fixed-line operator’s ‘passive’ infrastructure to increase competition. In December 2012, 
the  regulatory  authority  decided  on  the  principles  and  schedule  of  mobile  number 
portability, which is due to be launched in January 2014. 

As regards audio-visual policy, according to Armenia’s Human Rights Defender annual 
report,  the  National  Commission  on  Television  and  Radio  did  not  carry  out  sufficient 
oversight  functions  for  prevention  of  concentration  and  monopoly  in  the  broadcasting 
market. 

Within  the  EU’s  Seventh  Framework  Programme  for  Research  and  Technological 
Development  (FP7)  and  its  ERA-WIDE  Call  for  Proposals  on  Reinforcing  Cooperation 
with Europe’s Neighbours, three projects focused on Armenia were approved for funding 
in the fields of information and communication technologies, ecology and physics. This 
increased the number of ongoing FP7-funded projects that include Armenian partners to 
25.  The  total  EU  contribution  to  these  projects  amounts  to  EUR  70  million,  more  than 
EUR  2  million  of  which  went  to  the  17  Armenian  institutions  participating  in  these 
projects. 

7.   

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Implementation  of  Armenia’s  National  Education  Development  Strategy  2011-2012 
progressed, including through the preparation of legislative changes to reflect the special 
educational needs of young people with disabilities and the training of 1,000 teachers on 
new teaching methodologies. 

In this context, higher education in Armenia moved decisively towards implementation 
of  the  Bologna  principles,  though  additional  accompanying  measures  are  still  needed. 
Challenges  remain  in  the  development  of  internal  and  external  mechanisms  for  quality 
assurance, in reforming the financing mechanism for higher education, in integrating with 
international networks and in establishing links between the higher education sector and 
the labour market. Armenia assumed the Secretariat of the Bologna Follow-up Group in 
July for three years; Armenia will be the host country of the next Ministerial Conference 
of the European Higher Education area, which is to take place in 2015. 

16

 
 
In July, the Armenian Government adopted a Concept Paper for the reform of vocational 
education  and  training  (VET)  and  a  related  Action  Plan  for  2012-2016.  The  National 
Training  Fund  on  Vocational  Education  and  Training  established  its  board  of  trustees, 
including  representatives  of  public  institutions  and  social  partners.  Armenia  plans  to 
introduce  a  monitoring  and  evaluation  system  in  VET  institutions  in  2013.  The  EU’s 
budget  support  to  VET  reform  was  increased  by  additional  funds  from  the  EaPIC 
programme. 

Armenia  continued  to  be  actively  engaged  in  the  Tempus  and  Erasmus  Mundus 
programmes. Nine Armenian projects were selected for Tempus IV programme support. 
Armenia  also  benefited  from  13  new  scholarships  for  Erasmus  Mundus  joint  Masters 
courses and two for Erasmus Mundus Doctorates, together with a further 259 grants for 
short-term  mobility  organized  within  a  university  consortium.  Ten  institutions  and 
thirteen  individual  researchers  from  Armenia  participated  in  Marie  Curie  Actions  to 
support researchers’ training, mobility and career development. 

Armenian  youth  and  youth  organisations  continued  benefiting  from  the  opportunities 
offered  by  the  Youth  in  Action  Programme.  For  2012  and  2013,  the  ENPI  provides 
additional funds to the Youth in Action Programme to increase cooperation among young 
people, youth workers and youth organisations from the EU and the Eastern Partnership 
neighbouring countries. In 2012, the setting up of the Eastern Partnership Youth Window 
within  the  Youth  in  Action  Programme  boosted  the  number  of  young  Armenian 
participants in this programme. 365 projects were selected in 2012 targeting 1022 young 
Armenians.  In  March,  Armenia  hosted  the  Eastern  Partnership  Platform  4  'Contacts 
between People' youth event organised by the European Commission; the event focused 
on  increased  opportunities  for  support,  European  Voluntary  Service  and  training  and 
networking in the region. 

Preservation  of  cultural  heritage  and  promotion  of  culture  were  strengthened  thanks  to 
support  from  the  Eastern  Partnership  Culture  Programme.  In  2012,  11  projects  were 
started in Armenia with activities centring on cinema, cultural spaces, preservation, and 
equal treatment of national minorities involving a variety of culture stakeholders. 

In September, the President instructed the Ministry of Health to prepare an urgent action 
plan to improve quality of care and to address corruption in the sector including regarding 
public drug procurement. Armenia continued developing a new health strategy. Armenia 
is  preparing  a  law  on  'Medicines  and  biologically  active  additives'  which  it  plans  to 
approximate with EU standards. 

17