JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in 2013 Regional report : Eastern Partnership Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013
Date: 2014-03-27
Institutions: European Commission
Subjects: Armenia, Azerbaijan, Belarus, EU visa policy, European neighbourhood policy, Georgia, Moldova, Ukraine, area of freedom, security and justice, corruption, economic reform, educational reform, financial cooperation, foreign policy, free-trade agreement, human rights, judicial cooperation, judicial reform, liberalisation of the market, political cooperation, political reform, public health, transport infrastructure













EUR-Lex - 52014SC0099 - EN











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52014SC0099

JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in 2013 Regional report : Eastern Partnership Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013 /* SWD/2014/099 final */










1. INTRODUCTION

The Eastern
Partnership (EaP) is a joint initiative of the EU and six eastern European
partner countries (Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova[1] and Ukraine) that aims to bring eastern European countries closer to the EU. It builds on
existing bilateral relations between the EU and its partner countries and
covers the eastern dimension of the European Neighbourhood Policy (ENP). It
follows two parallel tracks: bilateral and multilateral. The bilateral
dimension aims to foster closer bilateral relations between the EU and each
eastern partner country. The multilateral dimension provides a forum for
dialogue and exchange, through thematic platforms and flagship initiatives. It
also strengthens activities in support of the
EU’s bilateral relationship with each of the eastern European partners.
Partnership with civil society and other stakeholders is also a priority
of the EaP. This report provides information on the progress made in 2013,
since the previous report covering 2012.
Significant
progress was made in implementing the Partnership in 2013. The Heads of State
or Government or their representatives from the six partner countries, the
representatives of the EU and Heads of State or Government and representatives
of its Member States met in Vilnius on 28 to 29 November for the Eastern
Partnership biennial summit. The Vilnius Summit constituted a
significant step forward in concluding ambitious new Association Agreements
(AA) including Deep and Comprehensive Free Trade Areas (DCFTAs)
between the EU and some partner countries. An ambitious agenda for the way
ahead, stressing the crucial necessity of implementing agreed commitments, in
particular political, economic and social reforms, was agreed upon. New
challenges have arisen in recent months. While the EaP is not confrontational
in nature, Russia has proven extremely sensitive to developments in
neighbouring countries.  Partner countries are now faced with new and
increasingly complex realities and pressures.  
Considerable progress was made on AAs including DCFTAs. Ukraine made good progress with regard to
the benchmarks for signing the Association Agreement, as set out by the Council conclusions of 10
December 2012. On 21 November 2013 Ukraine unexpectedly decided to suspend preparations
for signing the Association Agreement. In the Joint Declaration of the Vilnius
Summit it reiterated its commitment to signing it. Ukraine's decision sparked
massive civil protests in support of political association and economic integration
with the EU. Against the background of the Ukrainian political crisis and
appointment of a new government, the European Commission proposed on 5 March a
support package for Ukraine[2] to help stabilise the economic and financial
situation, assist with transition, encourage political and economic reforms and
support inclusive development; underpinning this approach is the ambition to
help Ukraine fulfil the aspirations, which have been clearly demonstrated by
citizens and civil society. Following the finalisation of the negotiations of
the AAs, including DCFTAs, the EU-Moldova and the EU-Georgia
AA/DCFTA were initialled in Vilnius. Negotiations
on an AA/DCFTA with Armenia were completed. The agreement could
not be initialled however, due to Armenia’s declared intention in September
2013 to join the Eurasian Customs Union comprising Russia, Belarus and Kazakhstan. Progress
was made in the negotiations on an AA with Azerbaijan. Negotiations have now been launched between the EU
and Moldova and Georgia respectively to agree Association Agendas to help
prepare and implement the AA/DCFTAs.  
With regard to citizens’ mobility
in a secure, well managed environment, the EU made progress towards the goal of visa
liberalisation for short-term travel
with five of the six eastern European countries. Moldova concluded its Visa
Dialogue with the EU. In addition, negotiations for visa facilitation and
readmission agreements with Belarus have now begun.
In Vilnius, participants welcomed efforts undertaken to enhance the
Eastern Partnership awareness, stressing the need to intensify implementation
of the Visibility Strategy including with the involvement of civil
society. They called for further awareness raising efforts regarding the
Eastern Partnership in Eastern European partners. Summit participants invited
EU institutions, EU Member States, Eastern European partners and other
stakeholders to contribute to the Eastern Partnership Visibility Strategy
implementation by further informing society in partner countries and in the EU
of the benefits derived from the Partnership, the implementation of the
Agreements concluded in the framework of the Partnership for citizens,
businesses and society as a whole.
In the
coming period, the Commission and the High Representative will pursue the
implementation of commitments set out in the Joint Declaration of the Eastern
Partnership Summit in Vilnius, with particular reference to five priority
areas.
a) Political association/economic integration
In
order to consolidate and develop the processes of political association and
economic integration, the EU will:

 work with
     partner countries to prepare and implement Association Agreements (AA)
     including DCFTAs;
 support
     partner country accession to the regional Convention on pan-Euro-Mediterranean
     preferential rules of origin and the Common Transit Convention; 
 work with
     Partner Countries on strengthening the business dimension of the Eastern
     Partnership including through improving the business environment in
     partner countries to the benefit of local, regional and European SMEs and
     businesses; and
 conduct a
     feasibility study in due time regarding the creation of an economic area
     in light of implementation of relevant parts of the Vilnius Summit
     Declaration and the AAs/ DCFTAs.

b) Migration and mobility
Further advances on the
mobility agenda are another priority for the period leading up to the next
Eastern Partnership Summit in the first half of 2015. The EU will continue to
support progress towards visa-facilitation, and visa-free regimes for
individual partner countries on a case-by-case basis provided that conditions
for well-managed and secure mobility are in place. There is a clear and
tailored agenda for each partner in this respect.  
c) Interconnections and networks
Enhancing interconnectedness
between the EU and partner countries in a variety of forms is a key tenet of
the Eastern Partnership. In this regard:
·        
the Commission will carry forward work on
transport and energy networks and pursue cooperation including through the
Connect Europe Facility;
·        
the Commission and the High Representative will
further examine ways to enhance mutual energy security between the EU and
partner countries;
·        
collaboration with the international financial
institutions (IFIs) is important to advancing our common agenda;
·        
support in the area of electronic communications
regulation and the promotion of related policies with a view to creating
interoperable cross-border services.
d) Connecting with people
Building the common area
of shared democracy, prosperity and stability endorsed in Vilnius requires the
active engagement of societies as a whole. Of great relevance moving forward
will be:
·        
people-to-people exchanges, reinforced through
the Erasmus+, Creative Europe, and Marie Skłodowska-Curie fellowships in the
Horizon 2020 programmes;
·        
working more closely with stakeholders,
including civil society, national parliaments, and local/regional authorities;
and
·        
pursuing the implementation of the Eastern
Partnership visibility strategy.
·        
further development of a Common Knowledge and
Innovation Space (CKIS) linked to the Europe 2020 Smart Growth initiatives and
in particular the Innovation Union flagship initiative to facilitate partner
countries’ integration into the European Research Area, and support work on the
enhancement of framework conditions (including regulatory aspects and
development of electronic infrastructures for education and research) to
advance in the implementation of CKIS and enhance the participation of Eastern
partners in the Horizon 2020 programme on research and innovation.
e) Underpinning common values
Irrespective of each
country’s degree of ambition, respect for common values is a prerequisite for
the development of relations in the Eastern Partnership, consistent with the
European Neighbourhood Policy (ENP) objective of deep and sustainable
democracy. The Commission and High Representative will therefore prioritise
activities in three areas identified in the Vilnius Declaration:
·        
strengthening the efficiency and independence of
the judiciary;
·        
effectively tackling corruption; and
·        
implementing public administration reform.
Follow-up
The
Fourth Eastern Partnership Summit, to be held in Riga, Latvia, in May 2015, will be the next occasion to formally review the implementation of the Vilnius
Declaration and of the agreements concluded, and chart the way ahead. In the
meantime, the EU and partner countries will assess progress at annual meetings
of the Eastern Partnership foreign ministers and in informal Eastern
Partnership dialogues.  

2. DEEPER BILATERAL ENGAGEMENT

2.1.
Political association and economic integration
Association
Agreements and DCFTAs
The Association
Agreements with DCFTAs will replace the Partnership and Cooperation
Agreements concluded with the partner countries in the late 1990s (with the
exception of Belarus). Each country negotiates its agreement individually with
the EU. The DCFTA goes beyond a classical free trade agreement. It
concerns not only the liberalisation of trade in goods (by lifting
customs duties and abolishing trade quotas) and services, but broad provisions
on establishment of companies and on the harmonisation of the partner
countries’ trade-related legislation with the EU acquis communautaire
(the body of EU laws and regulations). Membership of the WTO is a
precondition for entering negotiations on the DCFTA.
Ukraine: On 21 November Ukraine decided to suspend preparations for signing
its Association Agreement, adducing national security interests and the need to
restore lost trade with Russia and Commonwealth of Independent States (CIS)
partners. In the Joint Declaration of the Vilnius Summit, it reiterated its
commitment to signing the agreement. Against
the background of the Ukrainian political crisis and appointment of a new
government, the European Commission proposed on 5 March a support package to
help Ukraine fulfil its aspirations.  
Moldova: Negotiations on Moldova’s AA/DCFTA were concluded in June 2013 and the EU-Moldova AA, including the DCFTA
part, was initialled on 29 November 2013 at the Vilnius Summit. The intention
is to sign the agreement by August 2014 at the latest.
Armenia: AA/DCFTA negotiations with Armenia were concluded in July 2013, but its Agreement, including the DCFTA, could not be
initialled on account of its intention to join the Eurasian Customs Union. In a
joint statement at the Vilnius Summit, the EU and Armenia reiterated their commitment to further developing their comprehensive cooperation
in all areas of mutual interest within the EaP framework, stressing the
importance of re-assessing the basis for their relations.
Georgia: Negotiations on Georgia’s AA/DCFTA were finalised in July 2013. It
initialled its agreement with the EU, including the DCFTA, at the Vilnius
Summit. The intention is to sign the agreement by August 2014 at the latest.
Azerbaijan: Progress was made on negotiating an AA
between the EU and Azerbaijan. The EU reiterated its readiness to launch
negotiations on a DCFTA, as part of the AA, following Azerbaijan's accession to the WTO.
Belarus: The EU remains committed to a policy
of critical/strategic engagement towards Belarus. This includes cooperation
through the multilateral track of the EaP and technical dialogues on specific
topics of mutual interest, as well as support for civil society and the
Belarusian population at large. At the same time, the Council has approved the
prolongation of the restrictive measures for one year. The European Dialogue
for Modernisation with Belarusian society, launched on 20 March 2012, provides
a forum for the free exchange of ideas for a modern Belarus. It is supported by
a new two-year project that includes dialogue on a wide range of reform
priorities.
Human
rights dialogues
The human rights
dialogues with eastern European partners cover various issues on a case-by-case
basis, with certain priority issues on the agenda for every dialogue. These
include the signing, ratification and implementation of international human
rights instruments, adherence to international human rights procedures and
mechanisms, combating torture, eliminating all forms of discrimination,
children’s rights, women’s rights, freedom of expression and the role of civil
society. In 2013, human rights dialogues were held with Moldova, Georgia and Armenia. In November, an ad hoc human rights experts meeting with Moldova took place, with the involvement of civil
society organisations. Human rights were discussed in the justice, freedom and
security sub-committee with Ukraine in May (and with Azerbaijan in February 2014). The human
rights dialogues were complemented by joint civil society
seminars in Armenia on anti-discrimination policy
and in Georgia on the criminal justice system and labour law, and in Moldova with a joint seminar for the
authorities on combating impunity.
Common
Security and Defence Policy (CSDP)
The CSDP
provides a framework for cooperation within which the EU can conduct
operational missions in third countries. The aims of these missions are peace-keeping
and strengthening international security. They rely on civil and
military assets provided by Member States. A CSDP panel was set up to
facilitate dialogue on CSDP development, including crisis management operations
and exercises. At the Vilnius Summit, the Framework Participation Agreement
with Moldova on EU-led crisis management operations was signed and
entered into force. The Framework Participation Agreement with Georgia was also signed at the summit. The Commission is
considering launching negotiations with other partners. By way of contribution
to CSDP missions in 2013, Ukraine committed itself to extending its cooperation, including by supporting EU
Naval Force Atalanta, and to contributing again to EU Battle Groups from 2014 onwards. On several occasions, Armenia expressed its wish to conclude a Framework Participation
Agreement with the EU in order to be able
to participate in CSDP
missions. A formal
request from Armenia would enable the EU to take the necessary steps to begin
negotiations. It was agreed to hold additional discussions on CSDP cooperation with Azerbaijan. 
Economic trends
Real GDP growth
was uneven across the Eastern neighbourhood in 2013, with weak growth in Georgia, Belarus and  Ukraine contrasted by rather rapid acceleration in both Azerbaijan and Moldova showing a clear improvement compared to 2012. Overall, Ukraine's flat growth led to a very weak weighted average[3]
of 1.3% in 2013 for the six Eastern Partners. The slowdown in the Russian
economy affected Armenia, Belarus and Ukraine negatively, whereas the Georgian
economy declined mainly due to domestic political tensions that saw a drop in
both private investment and government spending. Conversely, activity in Azerbaijan grew by 5%, mainly in the non-oil sector as a result of government spending and transfers
of energy export revenues, while strong growth in Moldova (5.5%) reflects a
remarkable rebound in the large agricultural sector. Inflationary pressures
remained subdued throughout the region (except for Belarus and Armenia), allowing central banks to either cut rates or keep them at already low levels. In
  Belarus monetary policy was kept tight to keep inflation on a declining path.
Fiscal deficits
generally widened in 2013 as a result of slow growth leading to
lower-than-expected fiscal revenues. In Ukraine, where the authorities refused
to adjust domestic utility tariffs to move them closer to cost-recovery levels,
the fiscal deficit increased to 6.5% of GDP. Azerbaijan is the only noteworthy
exception where oil revenues made up 58% of total revenues in 2013 creating a
fiscal surplus of 0.7% of GDP. However, when excluding oil transfers, the state
budget recorded a deficit equal to 19% of GDP calling into question the
long-term sustainability of the country's public finances.
At the same
time, the external positions of most of the Eastern Partners improved, albeit
marginally, in 2013, with the notable exceptions of Ukraine and Belarus
Armenia, Georgia and Moldova all managed to reduce their large current account
deficits; Moldova largely thanks to resilient remittances. Georgia and Moldova were both helped by IMF arrangements that instilled much-needed confidence,
though external debt levels increased further as a result. Ukraine's external
position, on the other hand, deteriorated significantly partly due to the
authorities reluctance to agree to much-needed reforms that would not only
improve the trade balance, but also allow them to receive financing from the
IMF. Ukraine agreed on a support package with Russia in mid-December and a
first tranche of USD 3 billion was transferred before the end of the year,
allowing Ukraine to meet its debt servicing needs without depleting its
continuously deteriorating official reserves. Belarus' current account
deteriorated to -9.4% of GDP in 2013 from -3% in 2012 due to a trade dispute
with Russia, weak external demand in general and a decline in competitiveness
caused by a rapid wage growth. Again, Azerbaijan represents the exception with
a current account surplus equal to 16% of GDP, though the non-oil current
account records a deficit equal to 17% of GDP.
Structural
reform progress was mixed across the region in 2013. Ukraine reworked its PFM
Strategy with accompanying Action Plan and pushed through a constitutional
amendment expanding the remit of the Accounting Chamber to audit the revenue
side of the budget as well. At the same time, the authorities made no progress
in the much needed gas tariff adjustments and decided to reintroduce the use of
promissory notes to make VAT refund payments. In Azerbaijan the government
raised various fuel product prices, increasing revenue, while in Georgia the government started increasing public spending on social protection and health,
but stayed committed to fiscal consolidation. In Moldova, governance in the
financial sector suffered from a number of challenges, notably a lack of
transparency in the re-capitalization of some banks. The authority of the
National Bank was also contested by a Constitutional Court's ruling in October
2013. Belarus adopted a Joint Action Plan on structural reforms in October.
Although it contains a number of positive elements, these are mostly isolated
measures that do not form a strategic vision on structural reforms. However,
some progress was achieved in the area of price liberalisation and containment
of credit growth.
The region
placed well in the World Bank's Doing Business 2014 ranking with all six
countries improving compared to the previous year. Ukraine improved the most -
by 28 places; however it still remains the worst performer in the region,
placing 112th out of 189 countries globally. Georgia stands out in the region
as it ranks 8th in the world. Still, the fight against corruption, improving
public procurement and reducing red tape and state intervention in the economy
remain key challenges for the region.
Macro-Financial
Assistance
The Eastern
Neighbourhood countries are in principle eligible for MFA from the EU, if a
programme agreed with the IMF and entailing the use of resources is in place.
In 2013, the co-legislators approved a MFA programme for Georgia amounting to EUR 46 million (half in grants and half in long-term loans). The
programme is based on a Commission proposal adopted in January 2011; its
approval was delayed for more than two years by a disagreement between the
Council and the European Parliament over the procedure to be used for the
approval of the Memorandum of Understanding and was only secured after a
compromise agreement was reached in May 2013. Though there is an IMF
arrangement in place in Georgia it is of a precautionary nature and the
authorities are not planning on drawing on the funds in the near future, thus
precluding any possibility of MFA disbursements in the near future. Moreover,
no disbursements were made in 2013 under the programme with Ukraine of up to EUR 610 million, in loans (under two legislative decisions, adopted in
2002 and 2010). The Memorandum of Understanding, which sets out the policy
conditions for the release of the assistance, was signed in 2013 and submitted
to the Ukrainian parliament for ratification though ratification has not yet happened.
A request from the Armenian authorities for MFA support of an unspecified
amount was received in February 2013. The Armenian authorities reached an
agreement - at staff level - with the IMF for a new programme. The Commission
is considering a proposal but will only finalise it following the approval of
the agreement from the IMF Board (expected early March 2014).
Macroeconomic
dialogue
In 2013,
the macroeconomic dialogues
with all six eastern partners were strengthened in line with the EaP
2012–13 Roadmap. With Georgia, Armenia,
Ukraine, Azerbaijan and Moldova, they took the form of
sub-committees under the relevant Partnership and Association Agreements
(PCAs). With Belarus, in the absence of a PCA with the EU, a
technical dialogue on economic and financial issues took place.
Implementing
the ‘more for more’ principle
The Eastern
Partnership Integration and Cooperation (EaPIC) programme was set up in
2012 to provide incentives — in the form of increased financial assistance —
for continued efforts in democratic transformation, in line with the
incentive-based approach of the revised European Neighbourhood Policy (the
‘more for more’ principle). In 2013, three eastern European countries received
additional funds under the EaPIC programme: Moldova (EUR 35
million), Georgia (EUR 27 million), and Armenia (EUR 25
million). The EaPIC allocations reflected key findings and recommendations of
the 2012 Progress Reports on deep democracy and human rights. The additional
2013 EaPIC funding will be used to improve job market management and broaden
the range of vocational education and training in Georgia; to boost
economic opportunities in rural areas, provide support for energy reforms, and
increase cooperation with the Council of Europe in Moldova; to improve
national capacities for migration and mobility management and support civil
service reform and the fight against corruption in Armenia.
Good progress
was made in 2013 in implementing activities funded with 2012 EaPIC allocations.
Thanks to additional funding in the justice sector, an institutional assessment
of the Prosecutor’s Office was carried out in Georgia, resulting in a
number of recommendations which are now used as a basis for dialogue on
structural reforms. New activities were launched in collaboration with the Council
of Europe to improve detention conditions, for example by providing better
prison healthcare. Additional funds also support better dialogue on monitoring
the fight against ill-treatment in prisons. In Moldova, EaPIC additional
funding contributed to job creation and business development in rural areas by
facilitating access to investment grants, loan guarantees and start-up capital
funds. Over 500 new rural businesses were set up in 2013.
Since its launch
in 2012, the EaPIC programme has mobilised EUR 152 million of additional
funding.
2.2.
Migration and mobility, and other freedom and security issues
Introduction
The EaP has made
a clear commitment to strengthening cooperation on justice, freedom and
security. The first Eastern Partnership - Justice and Home Affairs
Ministerial meeting took place on 7 (Justice session) and 8 October (Home
Affairs session) 2013 in Luxembourg. The Home Affairs discussions focused on
fight against corruption; fight against organised and transnational crime;
cybercrime; and migration and mobility, and a Joint Statement was adopted.
For Moldova,
Ukraine, and Georgia the visa liberalisation dialogues, and in
particular the visa liberalisation action plans (VLAPs),
proved to be key mechanisms for implementing further structural reforms in the area of justice, freedom and security, including those
aimed at strengthening the protection of fundamental rights. Progress was made
on migration in 2013, but the need to operate modern, effective asylum
and international protection systems has yet to be acted on in most partner
countries. The Moldovan system is seen by some experts as one of the
best in the eastern European region.
Regional
cooperation projects supported by the EU focused on the protection of refugees
and asylum-seekers, as well as the fight against irregular migration. Continuous
progress was made on border management. Frontex signed a working
arrangement with Armenia in February and with Azerbaijan in
April.
Reform of the
judiciary in order to ensure independence and efficiency and the fight against
corruption in partner countries continued to be
challenging throughout 2013. Preventing high-level corruption and ensuring that
anti-corruption bodies are independent should remain a priority. 
Good progress
was also made on data protection in 2013. Ukraine amended its
data protection law and set up an independent supervisory authority, in line
with the Ombudsman’s recommendations. Its remit still needs to be changed to
cover the private sector too. Georgia
appointed a data protection supervisor, who has commenced
destruction of archives of illegal recordings amassed during the previous
administration. Following ratification by Armenia of the Council of Europe Convention for the Protection of Individuals with
regard to Automatic Processing of Personal Data, all eastern European countries
which are members of the Council of Europe ratified the convention.
Fighting
illegal drugs continued to be high on the agenda
and the EU Dialogue on Drugs with Eastern Partnership Countries took place on
16 July 2013. Regarding cooperation with European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), representative from of the Eastern
Partnership Countries attended the 2nd
Reitox week in May 2013 in Lisbon. The Eastern partners
will participate in the EMCDDA technical cooperation two –year project starting
in January 2014.
Mobility
Partnerships
Mobility
Partnerships provide a sound basis for dialogue and
cooperation between the EU and its Member States and between the EU and non-EU
countries. The focus is on four areas: i) better
organising legal migration and fostering well-managed mobility; ii) preventing
and combating illegal migration and eradicating trafficking in human beings; iii)
maximising the development impact of migration and mobility; iv) promoting
international protection and enhancing the external dimension of asylum . The Mobility Partnerships signed with Moldova, Georgia and Armenia were implemented in 2013, with
a number of new initiatives approved. In December, the EU and Moldova held high-level meetings
to review the progress
made so far and
discuss areas for future cooperation. The extended migration profile of Moldova was published in March. It is
the result of more than two years of intense work done by a team of independent
experts, Moldovan government officials and the International Organisation for
Migration. It was financed by the EU and its Member States. The
implementation of the Mobility Partnership with Georgia progressed in
2013. Cooperation in the context of the EU-Armenia Mobility
Partnership also advanced, with the
commencement of the implementation of the targeted initiative project
‘Strengthening Armenia’s migration management capacities, with special focus on
reintegration activities’. During 2013, talks on a Mobility Partnership with Azerbaijan
were concluded and on 5 December the Joint Declaration was signed between Azerbaijan and the EU and eight participating Member States (the Czech Republic, Bulgaria, France, Lithuania, the Netherlands, Poland, Slovakia and Slovenia).
Visa liberalisation action plans (VLAP)
Moldova,
Ukraine and Georgia are currently
implementing their VLAPs. Moldova made substantial progress
in implementing its VLAP. The Fourth and Fifth VLAP
Progress Reports approved by the Commission in June and November 2013 confirm
this. The Commission concluded that Moldova meets all the second-phase benchmarks. Taking into account overall relations with Moldova, on 27 November 2013 it put forward a legislative proposal to amend EC Regulation 539/2001. The European Parliament voted in February
2014 to approve this proposal, which was subsequently approved by the Council in March 2014. Ukraine made substantial progress in implementing its VLAP,
speeding up its implementation and adopting a number of substantial legislative
packages to fill the gaps identified. However, there are still a few
outstanding issues for the completion of the first phase, in particular key amendments to
anti-corruption and anti-discrimination legislation, finalising the legal
framework for document security and amending the asylum law. Its VLAP was formally handed to Georgia in February 2013 and on 15 November the Commission published its First Progress Report on its implementation.[4] According to the
report, Georgia has made very good progress in implementing the first-phase
VLAP benchmarks. The legislative and policy frameworks for document security,
including biometrics, and for integrated border management, are almost
complete. Georgia is also making good progress in implementing the benchmarks
relating to migration management, asylum, public order and security, external
relations and fundamental rights.
During the year
under review, the VLAPs with Moldova, Ukraine and Georgia continued to be an effective way of advancing justice and home affairs
reforms, triggering intensive cooperation and the exchange of information
with the EU.
Visa
facilitation and readmission agreements
The lifting of EU visa requirements for the citizens of partner
states travelling to the EU is one of the Eastern Partnership’s key long-term
objectives. Over the shorter term, the Partnership plans to conclude visa
facilitation agreements (VFA) and readmission agreements (RA). These have
already been signed with Ukraine, Moldova, Georgia and Armenia.
VFAs enable partner country citizens to benefit from
quicker, simpler procedures for issuing visas and lower visa fees. RAs
establish the procedures for the return of persons (own
and third-country nationals or stateless persons) in irregular situations to
the EU or to the partner country in question. Amended VFAs with Ukraine and Moldova entered into force on 1 July 2013. Under the
agreements, additional facilitations are provided to certain categories of bona
fide travellers, in particular with regard to multiple entry visas with a long
period of validity, and the holders of biometric service passports are exempt
from the visa obligation. Implementation
of the VFA with Georgia and the RA between the EU and Ukraine,
 Moldova and Georgia continued. As of January 2013, Armenia granted visa-free access to EU citizens. The EU-Armenia RA was signed on 19 April 2013 and on 9 October
2013 the European Parliament approved the readmission and visa facilitation
agreements. They entered into force on 1 January 2014. Azerbaijan and
the EU concluded negotiations on visa facilitation and readmission agreements
on 29 July 2013. The VFA was signed on 28 November 2013 at the Vilnius
Summit. The RA is expected to be signed shortly after the necessary
administrative procedures are completed[5],
in the course of 2014. Following
 Belarus' positive declarations at the Vilnius Summit, the EU has
since launched negotiations with a view to concluding visa facilitation and
readmission agreements with Belarus. 
2.3.
Comprehensive institution building (CIB) programmes
With the
exception of Belarus, all eastern European countries benefited from Comprehensive
Institution Building programmes aimed at providing assistance to key
institutions in priority reform areas linked to the AAs, DCFTAs and the
dialogue on mobility. In 2013, several projects were ongoing in all
countries. Institutions responsible for developing and implementing
national legislation compatible with EU standards on food safety controls (sanitary
and phytosanitary standards), industrial standards and intellectual property
rights received targeted support. The measures implemented helped partner
countries set up the legal frameworks and institutional functions needed to
fulfil future requirements for accessing the EU internal market under the
DCFTAs. Armenia’s CIB programme was revised in 2013. This is because
institution-building support for DCFTA-related reforms is no longer a key area
for cooperation and EU assistance. Assistance under the CIB programmes is
provided in a wider framework of support for capacity development and
institution building.
2.4.
Sector Cooperation
Justice
To address these
concerns, justice-related issues continued to be given prominence throughout
2013 in several political and technical fora. In parallel, wide-ranging
cooperation programmes to support judicial reforms were ongoing in all
countries except Belarus. The focus was on supporting the reform of the justice
systems on the basis of nationally-owned strategies where relevant, aiming at
having a long-term impact on the rule of law and the right to a fair trial.
Measures to improve the protection of human rights and anti-corruption measures
were mainstreamed or integrated into the components of wider sectoral reform
programmes dealing with those issues.
Some of the main
results of the reforms are better access to justice (new court-houses,
regional justice departments), better protection of the right to defence (more
effective public defenders offices, School of Advocates), greater transparency
(online publication of sentences and decisions), the introduction of specialised
juvenile justice and better protection of human rights (including
legislation on anti-discrimination). From the penitentiary perspective, among
the main results are better rehabilitation and access to education and training
and significantly improved healthcare in prisons and detention centres
(clinics, medical sections). In addition to providing bilateral support, the EU
is working with the Council of Europe to improve the judicial reform processes
in the six partner countries and to bring them closer to Council of Europe and
EU standards.
Regional
development, including pilot regional development programmes (PRDPs)
The EU shared
its cohesion and regional development experience with partner countries
to help them address internal regional socio-economic disparities. Programmes
on regional development, including pilot regional development programmes, have
been or are being developed in most countries. A wide-ranging regional
development programme has been in place in Georgia since 2011. It helps
the government improve the socio-economic development of the regions and the
population’s living conditions. Several noteworthy results have already been
achieved. The government approved regional development planning and
implementation guidelines. Development strategies for all nine regions,
prepared in collaboration with representatives of civil society and local
authorities, were approved. Regional development councils were set up in every
region, with working groups to advise them on agriculture, economic policy and
education. A second regional development programme, approved in 2013, is
currently being prepared to provide further support in this key sector. In
2013, Armenia approved a regional development support programme to
ensure progress towards more balanced social and economic regional development.
Under a pilot regional development programme for Moldova
launched in 2012, a project for developing regional
planning and project pipelines for north, south and central development regions, signed in October 2013, aims to help
Moldova improve its economic, social and territorial cohesion. The project’s
focus is on developing the policy, legal, institutional and developmental
framework for its regions.
Agriculture
and rural development and ENPARD
Agriculture is a major economic sector for EaP countries,
where a large share of the population lives in rural areas. The European Neighbourhood Programme for
Agriculture and Rural Development (ENPARD) is a EUR40 million initiative aiming
to help partner countries develop and implement long-term sustainable
agriculture and rural development strategies for those concerned to take full
advantage of benefits of future DCFTAs and has been proposed to partner
countries willing to engage in the sector. A large ENPARD programme is being
implemented in Georgia since March 2013 and one is under preparation for
  Armenia. In Moldova, an ongoing EU programme supports economic
development of the rural areas and promotes small businesses, in line with the ENPARD approach. Over 500
new rural enterprises were created in 2013. Funds were also used to help
farmers affected by the drought of 2012, especially in the field of agricultural insurance and irrigation. ENPARD
activities involve also regional experience sharing, which started in 2013
through the exchanges of the EaP Panel on Agriculture and Rural Development. 
Energy
In line with the
EaP 2012–13 Roadmap, efforts continued to promote energy efficiency and
the use of renewables, improve energy connections with the eastern
partners and encourage them to diversify their gas supply. Both regional and
bilateral programmes are supporting reforms in the energy sector. In addition
to its regional capacity building components, the INOGATE[6] ad hoc expert facility
provided technical assistance on matters relating to energy market convergence
and sustainable energy development at the specific request of partner
countries. Energy has been one of the main priorities in EU-Azerbaijan
cooperation. The EU support programme, which ran until the end of 2012, helped
the government promote energy efficiency and the use of renewable energy
sources. One of the results of the programme was the setting up of the State
Agency for Renewable Energy Sources and Energy Efficiency in 2013; the
government still needs to adopt an overall sector strategy. Since 2011, a
wide-ranging EU cooperation programme has been promoting energy reforms in Moldova.
The energy
strategy for Ukraine until 2030 was revised. Ukraine has begun
implementing energy reforms in the electricity sector, bringing it closer to
the EU in line with its Energy Community commitments. The joint initiative to
modernise the Ukrainian gas transmission system went ahead, but further reforms
are needed for the disbursement of the loan for the emergency gas transit
project. Work proceeded with Ukraine to develop bi-directional gas flows for
mutual energy security. The Commission has facilitated
the negotiations on a Memorandum of Understanding for gas delivery to Ukraine through Slovakia. The final version of the MoU remains to be signed by the respective TSOs
(transmission system operators). The Eastern
Europe Energy Efficiency and Environment Partnership, initially opened only
to Ukraine, was extended in 2013 to Moldova, Georgia and Armenia. Partner countries were encouraged to increase the use of
renewable energy sources.
Progress was
made in cooperation on nuclear safety with countries running nuclear
power plants. Progress was also made with almost all partner countries on
increasing connections with the EU energy market. The Energy Community
made a significant contribution in this regard. It continues to attract the
eastern European partner countries, as in the case of Georgia, with which accession negotiations were launched in
February 2014. In Georgia, the Black Sea
Regional Transmission Network — co-financed by the EU and European financial
institutions — is intended to strengthen the electricity grid in the Caucasus
region and its interconnection with Turkey.
Transport
Partner
countries continued to gradually integrate their transport systems with that of
the EU, in line with the EaP 2012–13 Roadmap. An EU-Ukraine
comprehensive air services agreement was initialled in the margins of the
Vilnius Summit. Under the agreement, a common aviation area between Ukraine and the EU will be set up, based on common rules in important areas such as
aviation safety and security. It will gradually open up to integrate other
markets. At a meeting in Luxembourg in October 2013, the EU and Eastern
Partnership transport ministers took stock of cooperation in this sector. The
ministerial meeting approved the Eastern Partnership regional transport network
and the list of priority projects on the network, including connections between
eastern European countries themselves and with the Trans-European Transport
Network (TEN-T). The Joint Declaration of Ministers outlined the
progress made on regulatory convergence in all modes of transport, especially
on market integration through aviation agreements. It also provided guidance
for future cooperation in the sector. Regional transport cooperation progressed
well. It currently focuses on improving motorways of the sea, hinterland
connections, logistics centres and the safety and security of maritime and
aviation transport, through TRACECA and SAFEMED programmes in particular.
Support is also provided for infrastructure project prioritisation, preparation
and investment promotion and regional dialogue in the transport sector.
Environment
In 2013,
cooperation on environment and climate change improved. Progress was
made in the water sector policy reform, along the lines of the EU Water
Framework Directive and the principles of Integrated Water Resource Management.
This was achieved thanks to the continued support provided by the EU Water
Initiative at national level. It was provided through technical cooperation
projects on the ground: trans-boundary river management for the Kura River Basin and the environmental protection of international river basins. Some positive results were also achieved by implementing EU
support programmes in the form of a basin-wide
cooperative approach to marine environmental monitoring
in Ukraine and in the area of water supply and sanitation in Moldova. Environment, together with climate change, was recognised
as a priority field for action in the Vilnius Declaration highlighting the need
to pursue the process of regulatory approximation and policy convergence
Climate
change
Cooperation
on climate change advanced well in 2013, with
partner countries preparing joint positions for the UN Conference of Parties in
  Warsaw in November in order to reach a global agreement on climate change in
2015. They expressed their willingness to learn from the EU’s experience with
regard to burden sharing and how this principle could work in an international
context. The Clima East Project was launched in July 2013. The pilot and
policy projects are expected to complement each other, with concrete action
being the basis for policy and local initiatives getting national policy
support. The Climate Change Vulnerability Assessment for the Danube
Delta in 2013 was written and endorsed by the relevant stakeholders. It will
feed into the Danube Delta climate change adaptation strategy and action plan
which is currently being prepared.
Education,
youth and culture
Higher
education was a key area for EU cooperation with
eastern European countries. As part of the EU’s strengthened
European Neighbourhood Policy, the financial allocation for 2011–13 was almost
doubled compared to previous years. Since 2007, Erasmus Mundus partnerships
have resulted in mobility for more than 5,800 students and academic staff from
the region. Nearly 160 Tempus IV programme projects have been
recommended for funding since 2008. Independent evaluations show that both
programmes have a significant impact on the higher education systems of partner
countries. From 2014, they will be replaced by one programme
called Erasmus+. An information day was organised in Kaunas to present future possibilities of the Erasmus+ programme, starting from January
2014, to students and academic staff from EaP countries starting. The Education
Ministers' session of the Eastern Partnership Dialogue held in Yerevan in September highlighted the achievements of previous programmes and endorsed the
objectives of the new Erasmus+ programme.
Cooperation in the area of youth took place within the Youth
in Action programme and the dedicated EaP youth window as well as
through the EaP project for capacity building in youth policy. The EaP Youth
Regional Unit supports the capacity development of government and civil
society actors in the youth sector and provided visibility for youth-related
activities in the EaP. In 2012 and 2013, more than 30,000 young people and
youth workers from Youth in Action and EaP partner countries participated in
the EaP window of the Youth in Action programme, funded through a grants
scheme, which finances small projects through youth exchanges, the European
Voluntary Service and training and networking activities.
The Eastern
Partnership Culture Programme continued to be implemented, with 15 small
regional projects awarded to civil society cultural organisations and national
and local institutions. Technical assistance addressing the specific priority
needs of public institutions and the EaP region’s cultural sector was also
granted. In June, Georgia hosted the first Eastern Partnership ministerial
conference on culture and issued the so-called "Tbilisi Declaration"
conveying a strong message about a shared commitment to support culture as a
driver for growth and stability in the region.
At the bilateral
level, the EU supported vocational education and training reforms
through wide-ranging budget support programmes or twinning operations. In Armenia, 12 colleges have been selected, renovated and equipped as regional
vocational education and training centres. Since 2011, 1200 teachers and
training instructors have been trained. The number of students receiving free
education in vocational education and training colleges doubled in comparison
to 2008. The higher education sector in Belarus received special
support. In addition to the scholarships awarded through Erasmus Mundus, a
specific scholarship scheme enables young Belarusians
to study in European universities.
Economic
development and support for small and medium-sized enterprises (SMEs)
Bilateral and
multilateral cooperation in the area of SME policies is closely interlinked and
mutually reinforces each other. The Eastern Partnership flagship initiative
on SMEs, which aims to improve the business climate, in particular by
supporting small businesses in the EaP region, was very active throughout 2013.
2013 saw the launch of the SME Competitiveness Project which assists Eastern
partner countries to develop a Policy Roadmap to implement selected
recommendations of the SBA Assessment. Furthermore, the STAREP (Strengthening
Auditing and Reporting in the Eastern Partnership) project was launched in
order to support the participating countries in their efforts to improve
corporate financial reporting practices and bring them closer to EU and
international standards. The SME Finance Facility continued to provide
guarantee schemes for local banks to increase lending to SMEs in the region.
SMEs and business support organisations in the eastern partner countries also
benefitted from the East Invest programme (an active network of Business
Support Organisations from the EaP region), the Enterprise Growth Programme and
Business Advisory Services, a technical assistance programme that helps SMEs to
grow their business and which brought already significant results. The Closing
Conference of the first phase of the East Invest programme took place in Vilnius in November bringing together the members of the network that expressed their
vivid interest to equally participate in the next phase of East Invest. Armenia, Moldova and   Ukraine were also involved in the Enterprise Europe Network (EEN) via
Business Corporation Centres. These Centres can provide advice and support to
entrepreneurs wanting to establish a business, technology or research
partnership with SMEs in the EU Member States as well as advice on other
matters related to doing business with EU partners (EU legislation,
formalities, etc.).
Common
knowledge and innovation space
Progress was
made in the number and diversity of collaborative research endeavours between
entities in the Member States and those in the Eastern Neighbourhood. The EU Seventh
Framework Programme for research and development (FP7) significantly
contributed to the objective of developing a common knowledge and innovation
space, with the participation of a total of 516 EaP research and innovation
stakeholders in 309 FP7 projects. Such a high level of participation showed
what high potential there is for cooperation in relation to various societal
challenges and areas of technology, such as food and agriculture, sustainable
energy, climate change, transport, new materials and health research. In order
to increase the EaP countries’ success rate in this new Framework Programme, a
series of European Research Area projects have been launched to twin leading
EaP research organisations with their peers in EU Member States and FP7
associated countries. In order to forge links between the research and business
communities, 6 regional research-to-innovation (R2I) projects
have been selected out of the FP7 2013 work programme for international
cooperation activities. The aim of these projects is twofold: to identify
potential issues related to accelerating the commercialisation of research
results and to strengthen related capacities, notably through the exchange of
best practices, training and twinning activities.
In order to
develop a more strategic and focused approach, a new INCONET
website was launched in September 2013, as a reference platform for mobilising
stakeholders from both the EU and the EaP countries and promoting opportunities
for cooperation on the ground. In addition, Armenia and Moldova asked for Association to the newly launched Horizon 2020 Programme for Research and
Innovation, and negotiation with Moldova was launched in January 2014. Ukraine has a Science and Technology Agreement that will be renewed in 2014. 
Integrated
maritime policy (IMP) and fisheries 
Cooperation on
marine and maritime affairs between the EU and the Eastern partners from the
Black Sea basin is foreseen in the Association Agreements with Georgia and the Republic of Moldova. It will allow the partner countries develop integrated maritime
policy approaches and its tools in the relevant national policy areas and
enhance the cooperation in the relevant regional and international marine and
maritime fora. 
Statistics
Statistical
cooperation has been intensified through the development of a strategy for
statistical cooperation with the ENP East countries for the period 2014-2020.
This strategy was drafted together with the countries and aims at increasingly
providing policy makers in the EU and the ENP East countries with statistical
information compiled in accordance with European standards and thus comparable
and of high quality. High level fora for discussion on quality management lead
to increased engagement of the countries to develop quality assurance
frameworks and to follow the European Statistics Code of Practice.
EU programmes and agencies
Ukraine, Moldova, Armenia and Georgia have already signed Framework Agreements on participation in the EU
programmes, while an agreement with Azerbaijan is in the final stages of
preparation. A new generation of EU programmes (2014–20) is about to be
approved, with even more programmes open to the participation of eastern
European countries.

3. STRENGTHENING OF MULTILATERAL COOPERATION 

The EaP multilateral dimension provides a new forum
for exchange and cooperation, through four thematic platforms to
exchange best practices on matters of mutual interest: good governance,
economic integration and growth, energy security, and contacts between people.
They serve as forums for open discussion and include representatives from
government ministries and agencies, parliaments, civil society, international
organisations, international financial institutions, the private sector, as
well as economic and social partners. The four Eastern Partnership thematic
platforms meet twice a year to review and discuss next steps in a policy
dialogue between the EU and EaP countries. A new set of 2014–17 work programmes
was agreed for each platform. At the second informal EaP dialogue
at ministerial level held in Tbilisi in February 2013, eastern European
countries’ foreign ministers discussed the implementation of the EaP 2012–13
Roadmap and discussed goals for the Vilnius Summit. The sectoral component
under this informal dialogue, a meeting of transport ministers, prepared the
ground for the Eastern Partnership transport ministers meeting held in October
in Luxembourg. The third informal EaP dialogue at ministerial level held
in Yerevan on 13 September 2013 covered work ahead of the Vilnius Summit and
cooperation afterwards. Ministerial representatives from Azerbaijan also attended the meeting. The sectoral part of this dialogue brought together
ministers of education, who discussed cooperation in higher education. The
meeting highlighted that a considerable amount of European funding would be
available under the new Erasmus+ programme and the Marie Sklodowska-Curie
Actions within the Horizon 2020 research programme.
3.1.
Democracy, good governance and stability
Platform 1 aims to promote democratic principles, good governance and stability
by improving key sectors of governance. In 2013, the platform’s activities
focused mainly on cooperation in the area of Common Security and Defence
Policy (CSDP), public administration reform, asylum and migration,
improving the functioning of the judiciary and the safe management of state
borders (Integrated Border Management). Organisers of activities on
electoral standards, judicial reform, good governance, the fight against
corruption and concerted action against cybercrime continued to benefit from
the advice of the Council of Europe.
In 2013, a new
panel on cooperation with regard to CSDP has been set up. The Member
States organised several activities in this area throughout the year, such as a
seminar on the engagement of partners in CSDP cooperation in Vilnius. A
Swedish-Polish high-level course on CSDP, focused on CSDP missions and
operations. A large group of participants from all six eastern European
countries attended a CSDP orientation course organised by Lithuania and Austria, supported by the European Security and Defence College. 
The work of the panel
on migration and asylum in 2013 was devoted to the readmission, return and
reintegration of migrants and refugees, their integration and the rights of
internally displaced persons.
The EU and its
partner countries stepped up their cooperation in the fight against
corruption. The panel meeting held with the support of the Council of
Europe involved over 70 participants from EaP and EUMS’ public authorities and
non-governmental experts. During the meeting, the participants discussed and
identified a concrete set of actions to address the outstanding challenges on
corruption relevant in EaP countries. The participants also suggested ways to
enhance the cooperation between EU and partner countries. 
The panel on
improved functioning of the judiciary held its second meeting in June 2013
in Chisinau. It took stock of the results of the
Regional Justice Reform Project on the independency and the efficiency of the
judiciary and agreed on a Working
Programme 2014-2017. Themes for the future include the
reform of the Prosecutors' office and the role of the High Judicial Council. 
The panel on
integrated border management took stock of the good pace of implementation
of the flagship initiative’s training activities and pilot projects. In 2012
and 2013, 1000 border guards and customs officers benefited from training, thus
fulfilling the objectives of the EaP 2012–13 Roadmap. Discussions at the panel
meetings focused on integrated border management strategies and partner
countries’ action plans, the respect of migrants’ rights at the borders and
risks connected to the transit of goods. The panel approved new selection
criteria for pilot projects that will be applied from 2014 onwards. A new
training and capacity-building project is expected to start in early 2014. It
will draw on lessons learnt from past projects.
The panel on
public administration reform noted solid work in all areas, particularly in
the areas of e-government, the transparency of asset declarations and
information security policy. A new work programme is being prepared, focusing
more on improving value-based public administration legislation in line with
best European practices. This is being done in conjunction with the Support for
Improvement in Governance and management initiative.
The Eastern
Partnership territorial cooperation support programme conducted
fact-finding, capacity building, advocacy, communication and awareness-raising
activities in all the Eastern Partnership countries throughout the year to lay
the ground for the Territorial Cooperation Programmes that will be launched at
the 4 borders between Ukraine/Belarus, Ukraine/Moldova, Georgia/Armenia and
Georgia/Azerbaijan, at the beginning of 2014. Local, regional and national
authorities, as well as civil society organisations, international donors and
the media were the main target groups of these activities. In addition,
preparatory work to establish the programmes' Joint Decision Making Committees
(JDMCs) was also undertaken in 2013. Next steps will be the inauguration of the
JDMCs and the adoption of the Territorial Cooperation Programmes by the
Commission.
3.2.
Economic integration and convergence with EU sector policies
Platform 2 focuses on economic integration and convergence with EU sector
policies. It has been seeing more interaction based on input and ideas
provided by partner countries and other participants. This is a sign that
partner countries and other stakeholders have a sense of ownership of the
platform’s work and that they are more involved in it than before.
The meetings
held in 2013 focused on programmes, projects and studies related to
competitiveness and economic matters; on economic integration issues that make
a real difference for people on the ground; on future implementation of DCFTAs;
on social dialogue and skills development; on participation in COSME (Programme
for the Competitiveness of Enterprises and SMEs) and on economic recovery in
the EU and partner countries.
The panel
meetings on transport took care of the technical preparation of
deliverables for the second eastern European transport ministers meeting held in
October 2013 in Luxembourg.
The agriculture
and rural development panel was set up, with its first meeting in
May 2013 to facilitate the exchange of experiences and best practices as
regards sustainable, inclusive sector development. Discussions
focused on long-term sector development strategies and the role and benefits of
producer cooperation. 
The discussions
of the panel on trade and trade-related regulatory cooperation in
October in Yerevan focused on the reform of systems of technical regulations and
related infrastructures by looking at areas such as market surveillance, the
setting up of infrastructure for conformity assessment and metrology. Partner
countries appreciated the Panel on this subject and suggested to hold similar
meetings in the future.
The Eastern
Partnership Network of Regulators for Electronic Communications 1st
plenary meeting took place in March in Kiev and the 2nd plenary meeting took
place in October in Yerevan to strengthen the cooperation with EU in the field
and exchange best practices and coordination of the regulatory reforms in the
Eastern Partnership region. As a result the Network website (www.eapereg.eu) was launched and the Network Work Plan for
2014 was finalised alongside with the forward looking actions beyond 2014.
Additionally, 5 EU-funded technical workshops/seminars took place in 2013,
involving representatives of the Network Member' organisations. 
Given that
partner countries very much valued the work of the SME Panel, its mandate was
extended in spring 2013 for an unlimited duration. The fourth meeting of the
panel on SME policy took place at the end of November in Vilnius in the
run-up to the Eastern Partnership summit. The panel focused on the presentation
and discussion of the second round of the SBA (Small Business Act for Europe) and reviewed upcoming projects to assist SME development, especially as regards
access to finance. It also discussed the impact of DCFTAs on SMEs and the idea
of an EaP network of SME envoys.
Throughout 2013, several conferences, seminars and workshops took
place, focusing on transport policy and customs issues, climate change, the
regulation of electronic communications and professional skills matching in the
context of entrepreneurship education.
3.3.
Energy security
Support for
reforms in energy regulation based on Eastern Partnership objectives under Platform
3 on Energy Security continued. These efforts aim to approximate regulatory
frameworks and energy policies, to support infrastructure development,
interconnections and diversification of supply, as well as to promote energy
efficiency and the use of renewable resources. It met twice in 2013. A
second workshop on regulatory convergence was held in Tbilisi in June. Activities on regulatory issues will be continuing, including looking
into the possibility of replicating a twinning project between the EU
regulators and regulators in partner countries. The multilateral platform
carried out activities on oil infrastructures and nuclear safety. In the
context of nuclear safety, countries running nuclear power plants are
currently conducting nuclear power plant stress tests with a view to
implementing measures for improving nuclear safety. The stress tests are in
line with the EaP 2012–13 Roadmap. The new work programme 2014-2017 confirmed
the former four activities and added a fifth activity on conventional and
unconventional oil and gas resources.
3.4.
Contacts between people
Platform 4 supports interaction between
EU citizens and those of partner countries. It focuses on students, teachers,
researchers, young people, artists and cultural professionals. In 2013, the
platform’s work continued to be organised in a number of EU international
cooperation programmes in higher education, youth, culture and research. At the two platform meetings held in May
and November, partner countries were updated on the preparation for the future
cooperation programmes in the areas of education
and youth (Erasmus+), culture and
media (Creative Europe) and research (Horizon
2020). The platform’s members approved its
work programme for the period 2014–17. The Bologna Seminar raised
awareness about the Bologna process for Belarusian higher education
institutions and students, explaining how to join the European higher education
area and help modernise Belarusian higher education. E-twinning action
for schools, supporting school collaboration through the use of ICT, was
officially launched, the web portal for EaP
schools was set up and the first exchanges and training sessions for the
partner countries’ support agencies followed.
The informal
Eastern Partnership meeting had a sectoral dialogue on education (13
September, Yerevan). It highlighted the importance of European funding under
the new Erasmus+ programme and Marie
Sklodowska-Curie Actions. The EaP Youth
Forum (23-24 October in Kaunas) involved 250 young people, youth workers,
youth researchers and youth policy makers from the Youth in Action Programme
and Eastern Partnership countries. The aim of the forum was to increase
recognition of youth work and non-formal education and their role for social
inclusion, to showcase the Eastern Partnership Youth Window and provide
information about the learning opportunities the Erasmus+ programme offers. An
Information Day on Erasmus+ for higher education institutions was organised
back-to-back with the youth forum and presented new opportunities for students.
The dialogue on
culture under platform 4 led to the organisation of the first EaP
ministerial conference on culture from 27 to 28 June, hosted by Georgia. A clear consensus emerged on the need to integrate culture into development
agendas and to broaden dialogue on culture in the context of the Eastern Partnership.
Participants agreed on the Tbilisi Declaration, conveying a strong
message about a shared commitment to supporting culture as a driver for growth
and stability in the region.
Work on Information and Communication Technologies (ICT)
focused on mapping of EaP stakeholders, identification of research potential
and priorities in the EaP region, organisation of training and assistance and
enhancement of the ICT policy dialogue between the EU and EaP Countries.
Information days took place in May in Kiev and in September in Yerevan aiming at enhancing EaP participation to the ICT part of Horizon 2020.
Additionally, the EaP research and education community issued a joint
declaration for strengthening ICT e-Infrastructure for the region and
established a working group that elaborated the EPIC proposal for connecting
the region together, as well as with Europe's flagship network GÉANT. In this
context, EaP regional workshops on e-Infrastructure took place in May in Kiev and in December in Tbilisi.
In terms of research and innovation, all eastern European partners continued to
participate in the Seventh Framework Programme and the preparations for the next framework
Horizon 2020 were made. All eastern European countries nominated FP7 contacts for Marie Sklodowska-Curie Actions. Armenia, Belarus, Moldova and Ukraine appointed FP7 legal and financial contacts. A panel on research and innovation
was set up and a first meeting organised on 13 November in Brussels.
3.5.
Update on flagship initiatives
Flagship
initiative on integrated border management
The activities
of the integrated border management flagship initiative, which aims to support
exchanges of best practice among EU and EaP countries, training and capacity
building and the funding of pilot projects, continued in 2013. The EaP
integrated border management flagship initiative training project ended in
June 2013. It had successfully trained almost 1 000 officers, well over
the target set in the EaP Roadmap. Another project, under the leadership of
FRONTEX, is currently being prepared. Support for pilot projects continued to
focus on the supply of equipment and border-crossing infrastructure,
complemented by a specific training component when necessary and focusing on
the eastern partners’ non-EU borders, where needs are greater than those along
their EU borders.
Flagship initiative on prevention, preparedness and response to
natural and manmade disasters (PPRD-East)
The civil
protection (PPRD) flagship initiative focused on achieving the following
objectives in its first phase: technically developing the Electronic Regional
Risk Atlas, improving the disaster risks knowledge base, strengthening the
countries’ civil protection capacities, developing an awareness and
communication strategy and analysing the gaps in the institutional and
legislative frameworks to serve as a basis for the second phase of the flagship
initiative.
Flagship
initiative on small and medium-sized enterprises
The aim of the
initiative is to provide support for SME development by improving the
business climate, providing advisory services to SMEs, improving access to
financing and enhancing the capacity of business (support) and SME
organisations. The SME Flagship is active at different levels. At policy level,
the EU (in cooperation with the OECD) is working on the assessment of SME
policies in the EaP region based on the Small Business Act for Europe (SBA) and
has issued country specific recommendations. A follow-up programme has been
launched to support the implementation of these recommendations. The EU is also
contributing to a World Bank programme aiming at improving the financial
reporting in the region – today one of the key issues for SMEs to access
financing. Additionally, the EU contributes to several SME finance facilities aiming
at providing guarantee schemes for local banks to increase lending to SMEs in
the region. As part of the SME Flagship, the East Invest programme has
successfully created a network of EU and EaP Business Support Organisations and
helps SMEs in the EaP region to access the EU market and to attract investment
(more than 100 representatives of business associations and 200 companies were
already trained as part of this programme). Finally, the Enterprise Growth
Programme and Business Advisory Services (EGP-BAS), implemented by the EBRD, is
a programme that provides direct consultancy services to SMES aiming at
growing, developing and improving their businesses – and is also part of the
Flagship. To date more than 600 SMEs in the EaP have benefitted from the
support of EGP-BAS with outstanding results in terms of increase of turn-over,
staff and productivity gain. 
Flagship
initiative to promote good environmental governance
This initiative
was implemented mainly through the regional programme ‘Towards a Shared
Environmental Information System Programme (SEIS) in the ENPI[7] Region’.
The programme aims to improve the quality, timeliness and availability of
environmental information and to set up an environmental information system in
line with the EU’s Shared Environmental Information System. Moldova is one of the five ENP countries to have started an enhanced cooperation with the
European Environment Agency (EEA). The EaP-GREEN project aimed to help
eastern European countries shift to a greener economy by decoupling economic
growth from environmental degradation and resource depletion.
Flagship initiative on regional electricity markets, energy
efficiency and renewable energy sources
This initiative
involved a series of technical cooperation projects delivered under the INOGATE
programme and extending the Covenant of Mayors aiming at energy efficiency at
municipal level towards cities in eastern European countries. 75 eastern
European and central Asian cities joined the Covenant of Mayors until 2013. Of
those, 18 have already submitted their sustainable energy action plans.
The Covenant of Mayors provides technical assistance to strengthen capacity in
the municipalities for preparing and implementing the action plans.
3.6.
Cooperation with international financial institutions (IFIs)
In 2013,
cooperation and coordination with IFIs continued at bilateral level (EIB and
EBRD, interested Member State development agencies) and under the Neighbourhood
Investment Facility. One country-specific high-level IFI meeting on Ukraine — with the participation, among others, of the World Bank and the IMF — was
organised in February 2013. The second meeting, of all eastern European
partners with six IFIs, took place in November, focusing on better policy
coherence and better use of finance blending for implementing the EaP in the run-up to and after the Vilnius
Summit. The IFIs participated in EU strategic policy fora, such as the
Eastern Partnership panels on relevant sectors (transport, energy, SMEs). The
dialogue continued with IFIs on macroeconomic developments and policies, on
priority Neighbourhood Investment Facility projects which should better address
EU policy priorities and key shortfalls in European strategic networks, and on
the joint projects designed to improve the business environment, economic
governance and access to financing for SMEs. In this respect, the EaP Business
Forum held in Vilnius on 28 November provided a good opportunity for exchanging
ideas and promoting investment in the six countries.
3.7.
Relations with other stakeholders
The Euronest
Parliamentary Assembly (PA) is a parliamentary forum that brings together
Members of the European Parliament and elected representatives from the eastern
European partner countries (except Belarus). The Third Ordinary Session of
the Euronest PA took place on 29 May in Brussels. Four resolutions
were adopted: one on regional security challenges, one on the approximation of
national economic legislation, one on energy security and one on combating
poverty and social exclusion. The PA also issued recommendations to the Heads
of State and Government on the occasion of the Vilnius Summit and discussed
financial perspectives.
The EaP launch
gave a strong impetus to the EU’s engagement with civil society. Following the
creation of the Civil Society Forum (CSF) and subsequently the
Neighbourhood Civil Society Facility, civil society is now a major stakeholder
in the implementation of reforms and democratic changes. The EaP Civil
Society Forum (CSF) was set up in 2009 to enrich governmental cooperation
under the EaP and engage more civil society organisations from EaP countries.
In 2013 the forum continued to provide input at EaP platform and panel
meetings. It issued a number of statements and recommendations addressed to the
partner countries’ governments and the EU. It also engaged in advocacy to draw
attention to developments in the eastern European partner countries.
EU support to civil society in the
region has totalled EUR 78 million since the launch of the Eastern
Partnership. Thanks to funding under the Facility, support has been
provided for the involvement of civil society in a variety of sectors:
oversight functions in the area of public finance policy and management, food
safety reform, their policy dialogue with the parliament, election observation,
environmental protection, social inclusion, local development and public
policies, to name but a few sectors. The EU also supports the secretariat of
the CSF and to some of its national platforms. At regional level, a technical
assistance project contributes to the development of civil society
organisations' develop their capacity to engage in reforms. From 4 to 5 October
2013, the fifth annual meeting of the CSF took place in Chisinau. It was
the first of its kind to take place in a partner country. It provided a good
opportunity for exchanging views on a broad range of issues and for civil
society organisations from the EU and EaP countries to exchange best practices.
The meeting issued several statements, including one in view of the Eastern
Partnership Summit in Vilnius. 
The
Conference of Regions and Local Authorities of the Eastern Partnership held its annual conference in Vilnius in September. It prepared a
high-level political statement for the November 2013 Vilnius Summit in the form
of recommendations based on its comprehensive political report. The thrust of
the recommendations related to areas of public administration reform, local and
regional decentralisation and territorial cooperation.
Finally, the
Eastern Partnership Business Forum in Vilnius followed on from the first
of its kind which took place in 2011 in Sopot in Poland. Its purpose was to
complement the Eastern Partnership summit on a business level. It brought
together key representatives of the business community and of governments to
discuss strategic issues ranging from further boosting trade, foreign direct
investment, boosting SMEs and developing infrastructure for business success.
It also afforded the business community of the Eastern Partnership region and
the EU the opportunity to exchange views and to network. It was broadly
supported by Member States, partner countries and civil society stakeholders
alike.
[1] Hereafter referred to as Moldova.
[2] SEC(2014)200
[3] Weights using GDP PPP 2012
[4] COM(2013) 808 final.
[5] The three-month period for the UK and Ireland to decide on their ‘opt-in’.
[6] INOGATE is an international energy co-operation programme between
the EU and 12 countries (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,  Kyrgyzstan, Moldova, Turkey (not beneficiary), Turkmenistan, Ukraine, Uzbekistan and Tajikistan). It focuses on enhancing energy security, convergence of member
state energy markets on the basis of EU internal energy market principles,
supporting sustainable energy development and attracting investment for energy
projects of common and regional interest. The programme has been operational
since 1996.
[7] European Neighbourhood and Partnership Instrument.