Source: EURLEX
Language: en
Format: md

##### **COMMISSION OF THE EUROPEAN COMMUNITIES** Brussels, 19.02 1997

COM(97) 68 final

##### COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT **PROGRESS REPORT ON THE EURO-MEDITERRANEAN** **PARTNERSHIP AND PREPARATIONS FOR THE SECOND CONFERENCE** **OF FOREIGN AFFAIRS MINISTERS**

**2 -** **3**

**Communication** **from the Commission**

**to the Council** **and** **the European Parliament**

**PROGRESS REPORT ON THE EURO-MEDITERRANEAN**

**PARTNERSHIP AND PREPARATIONS FOR THE SECOND CONFERENCE**

**OF FOREIGN AFFAIRS MINISTERS**

**1.** **INTRODUCTION**

This Communication has two aims: (i) to review the first fifteen months of the
Euro-Mediterranean Partnership and (ii) to prepare the Union's position and propose,
within the Community framework, guidelines for the conclusions of the second
Euro-Mediterranean Conference of Foreign Affairs Ministers.

**1.1. The Euro-Mediterranean Conference in Barcelona**

The Euro-Mediterranean Partnership, established in Barcelona on 27 and
28 November 1995, brings together the European Union, its fifteen Member States
and the twelve Mediterranean Partners. The latter set themselves three objectives at
the Conference:

- the establishment of a common area of peace and stability;

- the creation of a shared zone of prosperity through the establishment of a free trade
area and a substantial increase in financial support from the European Union;

- the development of human resources, the promotion of understanding between
different cultures and exchanges at the level of civil society.

The Partnership was created in a spirit of equality, cooperation and solidarity, the aim
being to bring the Partners closer together and so reduce sources of conflict. On the
Union's part, the Partnership is a sign of its willingness to play an increasingly active
role in the region on the political, economic and social front.

The European Union's strategic approach to these activities and initiatives was defined
in the context of the Barcelona Process, which is seen as an indispensable instrument
for the achievement of a common area of peace and stability.

The Ministers participating at the Conference adopted the Barcelona Declaration and a
work programme to give it concrete effect. The Declaration provides for a meeting of
Foreign Affairs Ministers to be held in one of the Mediterranean Partner countries
during the first half of this year.

**1.2. The objectives of the second Ministerial Conference**

The second Euro-Mediterranean Conference of Foreign Affairs Ministers will be held
in Malta on 15 and 16 April, seventeen months after the Barcelona Conference It will
provide an opportunity, at political level, to carry out an initial review of the
Partnership and to set the pace for the next eighteen months. After its initial teething
problems, the Process should advance at a more regular and swifter speed.

The Commission has defined **three general objectives** for the second Conference.

**to build upon and endorse the results already achieved in the framework of the**
**Euro-Mediterranean Partnership.**

Here it is appropriate to highlight the results achieved under each of the Partnership's
three pillars and to identify any delays or failures. Consistency in these results, in
particular the complementarity between the Euro-Mediterranean Partnership's bilateral
(Association Agreements) and regional pillars must be established;

- to **confirm,** in the light of the review, the **strategy and objectives adopted at the**
**inaugural Conference in November 1995, perhaps modifying certain areas or**
**expanding others.**

In this context, one of the major objectives of the Partnership, i.e. the establishment of
free trade between the European Community and its Mediterranean Partners, will be
accomplished primarily through the implementation of the Euro-Mediterranean
Association Agreements and the ability of the Partners to cope with the problems
involved in the process of transition to a more open economy.

In the Commission's view, the Conference should provide fresh impetus in this
direction and **define the measures required to underpin free trade at regional and**
**subregional** **level.** The general aim is to move on to a phase where regional
cooperation is efficiently organized to ensure the Partnership's global objectives are
achieved and the Euro-Mediterranean Partners' priorities are met;

**to adopt additional measures for the period leading up to the next Ministerial**
**Conference.**

A number of areas of mutual interest and fields in which the Mediterranean Partners

expect concrete progress to be made have been identified in the months since the
Barcelona Conference. At the next meeting, in the spirit of partnership forged in
Barcelona, the Union will be able to discuss with its Mediterranean Partners the areas
in which it feels that further progress is possible or in which other objectives may be

set.

**2.** **BILATERAL ASPECTS**

**2.1.** **The objectives of the Association Agreements**

The Association Agreements are intended to bring the Mediterranean Partners and the
Union closer together through the gradual establishment of free trade, the provision of
EU support for the economic transition process, cooperation in a whole range of areas,
the opening up of cooperation to civil society and the undertakings entered into with
regard to human rights and democracy.

The Association Agreements have two main objectives which are interdependent and
complimentary: (i) **to establish the Euro-Mediterranean free trade area**
**throughout the region and (ii) to take** **full** **account of the specific characteristics**
**of each of the Partners.** Priority will be given to the improvement of competitiveness,
economic restructuring, administrative reform, the establishment of economic
infrastructure or scientific cooperation depending on the needs of the individual
Partners.

In the economic field, free trade is not an end in itself, but a means of improving
competitiveness and integrating the Partners into international trade thereby improving
living standards. However, as the partner countries are at different stages of
development, progress towards free trade will be gradual, and will require programmes
to support economic transition and structural adjustment by cushioning any negative
social effects, speeding up economic modernization and promoting sustainable
development. The Euro-Mediterranean free trade area will be established via the EuroMediterranean Association Agreements and the free trade agreements between the
Mediterranean Partners. It will be a gradual process and should be facilitated by
economic adjustment policies based on market economy principles.

It should be stressed that, in the Commission's view, economic modernization, social
progress and support for the democratic process are interdependent of a closer
relationship with the Union.

**2.2.** **Negotiation of the Association Agreements**

Considerable progress has been made in the conclusion of the bilateral association
agreements between the Union and the Mediterranean Partners.

The signing of the Association Agreements with Tunisia, Morocco and Israel will
enable full account to be taken, in the framework of the Mediterranean policy, of the
specific characteristics and needs of these three countries. The Commission welcomes
the signature of an Interim Association Agreement on Trade and Cooperation with the
Palestine Liberation Organization for the benefit of the Palestinian Authority which will
enter into force soon, confirming the Palestinians' status as a full Mediterranean
Partner

Negotiations with Jordan, Egypt and Lebanon have reached their final stages; the
Commission considers that the successful conclusion of **these** agreements is now
within reach. Negotiations are due to open in the coming weeks with Algeria. The
Commission hopes that exploratory talks in progress with Syria will **prepare** the way
for the early conclusion of an Association Agreement with that country.

At the same time, the customs union agreement with Turkey entered into force on 31
December 1995. Since that date, the customs union has functioned satisfactorily on
the whole. In particular, customs duties and charges having equivalent effect have
been abolished, as have quantitative restrictions. Turkey has adopted the Common
Customs Tariff as well as an external commercial policy substantially similar to that of
the Community.

The creation of a free trade area by the target date of 2010, agreed at Barcelona, is an
essential instrument to further approximation and to raise the prosperity level of the
Partners. Since the Agreements are crucial in this perspective, a major effort will be
required on all sides to ensure that they are effectively implemented. This will also
constitute a strong signal to foreign private investors of the irreversibility of the
process and will contribute to increasing their activities in favour of Mediterranean
partners.

Aside from the actual implementation of the Euro-Mediterranean bilateral agreements,
it is also appropriate to underline the importance of facilitating the free movement of
goods within the Euro-Mediterranean area by adopting appropriate measures on rules
of origin, certification, the protection of intellectual property rights and competition
and by fostering free trade agreements between the Mediterranean Partners.

**2.3.** **Financial instruments**

For the five years from 1995 to 1999, the European Union agreed to set aside ECU
4,685 million in Community budget funds for its Mediterranean partners. This major
increase in financial assistance to the Mediterranean partners agreed at the Cannes
European Council and confirmed at the Barcelona Conference constitutes a major
instrument to raise prosperity levels in the region.

During 1996, the Commission committed all the available funds from the Community
budget on assistance to the partners, principally on support for economic transition,
structural adjustment and raising the level of the socio-economic infrastructure. The
Commission will continue to take the necessary measures to fulfil the undertakings
given in the Cannes agreement and the Barcelona Declaration.

As agreed at Cannes and Barcelona, EIB (European Investment Bank) lending is also
an essential element in the Union's support for economic modernization in the region,
and the EIB should continue to be closely involved in future Euro-Mediterranean
cooperation through increased loans.

Implementation of the free trade agreements and a significant increase in financial
assistance will not be enough to ensure the success of the Partnership if they are not
accompanied by a comparable increase in the rate of modernization and economic

structural adjustment in the Mediterranean partner countries. Talks between the
Mediterranean Partners themselves should be stepped up and financial support from
the Union, whether from budget funds or via the European Investment Bank, should
be fully exploited by the Mediterranean Partners in order to quicken the pace of
reform.

**3.** **REGIONAL ASPECTS**

**3.1.** **Political and security partnership**

**3.1.1.** **Review**

Five meetings were held in 1996 in the context of **political and security dialogue.**
Progress was steady despite the many political problems. The results are still somewhat
tenuous but the dialogue has become an unequalled forum for the discussion of
political and strategic problems between the whole of the region and the Union.

Progress has been achieved in three areas:

- **a** **list** **of confidence-building measures,** many of which are already operational or
have been formally approved for implementation, has been drawn up. Tangible results
are expected on two fronts this year: the network of foreign policy institutes
(EuroMesCo) will produce an independent analysis of the political and security aspects
of the region and a mechanism for cooperation in the event of natural and human
disasters will be set up to ensure there is effective liaison between the disaster
prevention and relief services in the region. The establishment of a network of defence
institutes and the organization of a seminar on the deployment of armed forces for
humanitarian work will also be discussed;

- a regularly updated **Action Plan** will serve as a blueprint for the group's work.
Drawn up on the basis of a progressive working method, the Plan will be discussed and
appear on the agenda of each meeting. It will cover six sectors of activity:
strengthening of democracy, preventive diplomacy, security and confidence-building
measures, disarmament, terrorism and organized crime;

- work has begun on a **Euro-Mediterranean Charter for Peace and Stability,** an
institutional mechanism for dialogue and crisis prevention. The draft charter is now
seen as the cornerstone of the Partnership's political and security pillar.

Two meetings have been organized in Malta, one in October 1996 and the other in
March this year, to disseminate information to the diplomats of the 27 partner
countries and to help them get to know each other. They have resulted in the creation
of a "Euromed Internet Forum", a site where all documents relating to the
Euro-Mediterranean Partnership are available for consultation.

**3.1.2.** **Strategy**

The political and security dialogue launched in Barcelona is one of the Partnership's
most promising projects: it represents an entirely new area of cooperation between the
European Union and its Mediterranean Partners, providing a forum for discussion long
sought-after by the states concerned. Within a matter of months it was working well in
terms of both content and organization.

The Commission sees the Conference of Foreign Affairs Ministers in Malta as an
opportunity to endorse the achievements of the political dialogue, in particular the list
of confidence-building measures and guidelines for the Charter for Peace and Stability.
If a document is signed by Ministers there must also be a commitment to gradually
deepen its content. In this context, the European Union should confirm its practical
support for existing and future confidence-building measures.

It should also be noted that the political dialogue covers, _inter_ _alia,_ respect for human
rights and fundamental freedoms, which is at the heart of the EU's international policy.
The Union feels that the adoption and implementation of international standards in the
field of human rights are essential for lasting social and political stability. In this
context, all the Mediterranean Partners should be encouraged to sign all international
instruments relating to human rights and to implement them fully.

The Union should also point out that it supports the efforts made by the Partners to
establish a civil society based on the rule of law, in accordance with the declarations
and action programmes of the world conferences on human rights, population, social
development and women, which the Union and the Mediterranean Partners helped to
organize.

The risk of the proliferation of weapons of mass destruction is a factor of instability in
the region. Joint reflection could be initiated on the implementation of the international
non-proliferation arrangements pertaining to nuclear, balistic, chemical and biological
weapons. Consideration could also be given to adapting these arrangements at regional
level.

In this context, it would be appropriate to improve the visibility of national efforts to
control the export of sensitive products through the exchange of information.

Finally, the Partners should be encouraged to step up their efforts to to prevent and
combat terrorism within the Euro-Mediterranean framework, in particular by acceding
to international conventions in the field.

**3.2.** **Economic and financial partnership**

**3.2.1.** **Review**

There has been intensive government and private sector activity under the economic
pillar of the Euro-Mediterranean Partnership. Participation by the Mediterranean
Partners has been extremely good, regular and at a high level. In the Union's case,

ministerial participation has been more difficult to achieve: the prolusion of meetings
led the Euro-Mediterranean Committee to impose a limit of seven per six-month
period (two ministerial meetings and five at expert level) from April 1996 in an effort
to improve efficiency. Priorities have not, however, been properly focused and the
content of the dialogue has proved difficult to define.

**At government level,** the method used to implement the Barcelona Declaration has
involved facilitating the harmonization of sectoral policies, organizing exchanges of
know-how and helping identify the common policies required for the creation of the
Euro-Mediterranean economic area. Six sectoral ministerial meetings were held in
1996 as well as expert meetings. Each of these meetings culminated in some form of
agreement on common sectoral policy principles. This has been a considerable
achievement in terms of economic rapprochement and modernization, especially in the
following fields: industry and SMEs, energy, water management, the information
society, tourism, fisheries, and sea transport. The meeting of Ministers of Tourism
emphasised the importance of strengthening cooperation in this sector and of carrying
out a series of joint actions in the future. Activities in these fields have launched a
process of significant convergence between the Partners.

Similarly, the regional statistical cooperation programme, MEDSTAT, is aimed at
consolidating the Partners' statistical systems and harmonizing the statistics gathered
by the Union and its Partners.

**In the private sector,** meetings were also organized, at the initiative of economic
operators, between comparable bodies from the various partner countries (industrial
federations, banks, chambers of commerce, economic institutes, trade fairs, etc.).
Mutual recognition, institutional capacity building and the transfer of know-how have
been facilitated in every case.

**3.2.2.** **Strategy**

**The next few months should see the completion of negotiations for the association**
**agreements. The** **Partners'** **fundamental objective should then be to set up the**
**Euro-Mediterranean economic area, chiefly through regional operations.**

All activities must be conducted with a view to guaranteeing interaction and synergies
between bilateral and regional schemes. Care must be taken to ensure that the
Partnership develops evenly, which will in particular involve gauging its economic and
social impact on the region.

The Commission feels that the **first objective** of the Conference of Foreign Affairs
Ministers should be **to emphasize the will and desire of the 27 Partners to set up**
**an area of shared prosperity and to give firm impetus to the establishment of free**
**trade** in order to improve living standards and reduce inequalities by 2010.

A range of accompanying measures should be agreed upon at regional level to permit
greater harmonisation and greater compatibility with the Union's internal market.
Areas such as: cumulation of rules of origin, customs cooperation, standards,
intellectual property, taxation and competition, should be encouraged in particular
Training initiatives will also be encouraged.

A **second objective** should be the adoption of a **targeted approach to intensify the**
**harmonization of policies** in areas crucial to the objective of setting up a joint
economic area. In the light of progress achieved to date, cooperation will be
concentrated in the first instance on areas earmarked as priorities by the Mediterranean
Partners and where cooperation has been successful in the past: industrial policy and
SMEs, energy policy, environment and water policy, information society, sea
transport. Action will be taken in other areas in due course.

Support should be given to the establishment of Euro-Mediterranean networks of
similar economic organizations. Such networks will enable those organizations which
are interested to develop ongoing work programmes and to make a crucial
non-governmental contribution to the establishment of an area of shared prosperity.

A **third objective** should consist of actively **preparing the Mediterranean Partners**
**for the changes under way in the Union,** to enable them, as our Partners, to adjust
their economic policies accordingly, should they so wish, and to air their views.

**The economic dimension of the Euro-Mediterranean Partnership is taking shape**
**at a time when the European Union itself is undergoing a further transformation**
with enlargement to the east, the introduction of the Euro and the setting-up of the
European Central Bank. This transformation will have a considerable impact on the
Mediterranean Partners, as most of their trade is with the EU and the Union also
provides most of their private investment.

This preparation could take the form of meetings and exchanges between government
representatives, private operators, university and cultural circles, etc., and would
require support from the MEDA programme. The Commission also proposes to
support those Mediterranean Partners wishing to initiate or strengthen their trade and
financial links with the countries of Central and Eastern Europe.

A **systematic effort should be made to promote European private investment in**
**the region,** over and above initiatives already taken (business centres, cooperation and
information networks and conferences for small businesses, computerized networks).
Action in this area should be undertaken primarily by European and Mediterranean
private operators with the support of the MEDA Programme. Business financing will
depend on the effective use of risk capital to prime the pump.

The introduction of modern instruments in this area will be a major priority. The
London conference on private investment on 6 March must give renewed impetus to
these activities.

**11**

The **fourth objective** which the Union should propose to its Mediterranean Partners at
the Conference is the **implementation of a policy to strengthen intraregional and**
**subregional cooperation and** **integration** The experience of the Regional Economic
Development Working Group (REDWG) will prove useful here. The Commission
wishes to see the Union offer support for a whole range of measures; this would take
the form of technical support for the negotiation of intraregional economic agreements
on trade-related measures and the incentive provided by regional cumulation of rules
of origin.

The strengthening of links between the Mediterranean Partners themselves through the
establishment of free trade should be regarded as a top priority. Progress is largely
contingent upon the willingness of the Mediterranean Partners themselves but it is
essential that the European Union reaffirm the importance it attaches to such progress.
Regional and subregional economic integration and rapprochement are the key
catalysts for growth in the region, in particular when it comes to expanding markets
and attracting private investment from abroad.

**3.3.** **Social, cultural and human partnership**

**3.3.1.** **Review**

This dimension of the Barcelona Declaration is intended to develop human resources
and to promote understanding between different cultures and exchanges between civil
societies.

The ambitious objectives set out in the work programme concern more than ten
sectors of activity in this field. Some had already been developed through the MED
decentralized cooperation programmes, while others are entirely new. It has proved
impossible to deal with all of the topics during the first fifteen months, despite
numerous proposals by the Partners, and joint action was undertaken in the following

areas:

 **cultural heritage:** a ministerial meeting was held in April 1996 leading to the
establishment of common principles. These principles were put into effect at expert
level where agreement was reached on an initial list of 17 projects of joint interest
involving both the architectural and intellectual heritage;

- a first meeting of high-level officials was held in June on the subject of **drugs and**
**organized crime.** A draft agenda for a ministerial meeting was also proposed, but the
parties failed to finalize the items to be included;

- two meetings of the Economic and Social Councils (or the bodies represented
therein) have taken place, the first in Madrid in December 1995 and the second in Paris
in November 1996, along with a meeting, in Catania, of ministers and senior officials
responsible for social affairs;

 - in the field of youth, senior officials responsible for youth work and representatives of
specialized NGOs attended a conference in Amman in June 1996 for the purpose of

**12**

establishing a coherent, decentralized operational framework for an exchange
programme for young people.

Other initiatives taken concerned the dialogue between cultures and religions.

**3.3.2.** **Strategy**

The Commission proposes a more systematic and proactive approach to the
development of these activities. The promotion of mutual understanding between the
peoples of the region is one of the cornerstones of the Barcelona Declaration. The
events which have unfolded in the Euro-Mediterranean region since November 1995
only serve to highlight its importance. This is why the Union should encourage the
Mediterranean Partners to deepen and intensify action in this area..

The Commission plans to recommend six **concrete measures** to the Partners at the
second Ministerial Conference:

**to pursue and intensify activities in the field of cultural heritage** by adopting an
initial set of regional projects, and subsequently expanding on the range of projects
covered. Other cultural matters should also be dealt with in the context of the

Euro-Mediterranean Partnership and more joint cultural events organized;

**to strengthen the dialogue between cultures,** in particular through the organization
of a public conference to review the work carried out in this area since 1995;

**to intensify the Euro-Mediterranean dialogue on human rights,** by setting up a
group of eminent persons to promote better mutual understanding in this crucial area.
The work of this group should build on existing achievements within the framework of
the Conference on Good Governance in the Euro-Mediterranean region (March this
year) and the EU's MEDA democracy programme;

**to continue the dialogue between civil societies,** which has found particular
expression through the EU's decentralized cooperation programmes and a large
number of Euro-Mediterranean conferences, notably the civil forum held in Barcelona
in November 1995. A regular Euro-Mediterranean civil forum would provide a channel
for lasting dialogue between civil societies; the Union should declare its willingness to
provide technical and financial support for any initiative taken by one or more of its
Mediterranean Partners. The continuation of the MED decentralized cooperation
programmes once the current evaluation exercise has been completed would also help
strengthen this dialogue;

 **to submit as soon as possible to the ministers responsible for youth a practical**
**proposal for Euro-Mediterranean cooperation** embracing youth schemes (other
than school and university exchanges) and voluntary service within a decentralized
operational framework;

 **to continue and step up education and training activities,** developing and
strengthening cooperation under the MEDA programme in particular, which could
draw, _inter alia,_ on the Union's experience;

### **n**

**- to continue the dialogue on organized crime, drugs and migration,** for which the
Partners are pressing, in order to encourage cooperation between the responsible
authorities. The European Union should also give thought to the matter with a view to
submitting proposals, both on the issues to be dealt with and the scope of the measures
to be agreed. Issues raised by the Partners, in particular exchanges of persons, should
also be examined.

**4.** **INSTITUTIONAL ASPECTS AND INFORMATION**

The Euro-Mediterranean Committee for the Barcelona Process, consisting of
representatives of the EU Troika and of the Mediterranean Partners, was given the
task of preparing the next meeting of Ministers of Foreign Affairs, taking stock of and
evaluating the follow-up to the Barcelona process and all its aspects and updating the
work programme.

The Commission is prepared to continue in the role assigned to it at Barcelona of
carrying out preparatory and follow-up work for the meetings. The Commission
suggests that the Euro-Mediterranean Committee for the Barcelona process carry out
regular orientation discussions on the activities of the Partnership and that it monitors
carefully the periodicity of the meetings and the subjects covered.

The involvement of Parliaments in the Euro-Mediterranean Partnership remains an
essential component of the project. Direct dialogue between elected representatives
will be fundamental in helping bring peoples closer together. No moves have been
made in this direction since the Barcelona Conference and the Commission strongly
urges the European Parliament to take the initiative. Dialogue between social partners
should also be encouraged.

Finally, the success of the Euro-Mediterranean Partnership depends on the general
public's understanding of the project. This is particularly important in the light of the
misconceptions which frequently circulate between Europe and the Mediterranean. As
far as general information is concerned, the Commission has already launched a series
of measures (monthly publication of an information note for the governments of the 27
Partners, electronic information sites, preparation of brochures in printed and
electronic form, the distribution of information packs for television and radio, support
for cultural reviews, etc.). Community financing has also been given to help set up the
Arabic service of the Euronews TV channel due to go on the air in the spring of this
year. The Commission urges the Member States to do more to inform the public about
the Partnership and to make it more visible.

#### **ISSN 0254-1475**

## COM(97) 68 final

# **DOCUMENTS**

### EN 11 Catalogue number : CB-CO-97-065-EN-C ISBN 92-78-16219-1

##### Office for Official Publications of the European Communities L-2985 Luxembourg