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# 52014SC0100

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in 2013 Regional report : A Partnership for Democracy and Shared Prosperity with the Southern Mediterranean Partners 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/2014/0100 final \*/**

  

1. INTRODUCTION

This staff working document reviews regional cooperation between the EU and the
Southern Mediterranean countries in 2013, including developments related to
the Roadmap to guide the implementation of EU policy vis-à-vis Southern Mediterranean Partners[1] adopted in 2012.

Reacting to events in the Arab world in
2011, the EU offered its Mediterranean partners a ‘partnership
for democracy and shared prosperity’[2]
founded on an incentive-based approach supporting partners committed to
reforms. It focuses on democratic transformation, a partnership with people and
civil society, and sustainable and inclusive growth. In support of these three
elements, the EU has improved consistency
between its external relations instruments, in particular development
assistance, trade, mobility, and sectoral cooperation. The Roadmap adopted in
2012 set out objectives to be pursued under the Partnership. Further work should entail:

a)
strengthening regional political
cooperation

The EU should enhance its leverage and further develop cooperation
with regional organisations like the LAS, OIC and the 5+5 Dialogue, and should
continue to support the activities of the UfM. Concrete EU Maghreb Cooperation
should be implemented.

b)
strengthening the role of human rights
and cooperation with civil society

Regional cooperation on the
development of civil society should be boosted in order to strengthen these
organisations, which promote human rights and fundamental values. A structured
dialogue between and with civil society organisations has the potential to
contribute to these goals and the rising number of meetings and new fora for
discussion with civil society organisations indicate the direction of this
cooperation. The EU will remain committed to this goal.

c) economic
cooperation

The
EU should support partner governments in better defining their economic
policies and taking more decisive action on sustainable economic and social
reforms. The region’s trade and business/investment climate must be improved.
Progress in DCFTA negotiations (already launched with Morocco) or preparations for launching them (advanced with Jordan and Tunisia) is indispensable.

d)
cooperation on
migration and mobility issues

Dialogues on migration and mobility, and negotiations
on mobility partnerships must be continued. Partners have high expectations of
easier access to the EU. The signing of mobility partnerships with Morocco and with Tunisia paves the way for future action. The December European Council called for a
more comprehensive, long-term initiative to address the safety of migrants, to
include greater dialogue and cooperation with Southern Mediterranean partners.

e)
sector cooperation

Sector policy cooperation should be pursued further in
order to meet the Roadmap’s objectives. A good vehicle for this would be the
UfM and its sector ministerial meetings followed by development and
implementation of concrete cooperation projects and initatives. Special attention
should be devoted to the link between research and innovation, to cooperation
by public authorities and to the enhanced participation of partners in the
newly launched Horizon 2020 research and innovation programme.

f)
funding

EU financial assistance for the region should be
maintained and well-coordinated among all donors.

These
topics will be discussed in 2014 inter alia through dialogues with countries of
the region, through contacts with regional organisations (e.g. the ministerial
meeting with LAS in June), and via UfM ministerial meetings.

2. RELATIONS
WITH THE REGION

Implementation of the bilateral
agreements and of the multilateral Roadmap has been heavily
influenced by rapidly changing and divergent situations in a number of Southern Mediterranean partners in 2013. The overall situation in the region is complex and
challenging, with considerable social and religious polarisation.

The EU has aimed to play an important and positive role in
supporting the transformation process in the region as a whole. It has pursued a policy of renewed engagement,
bilaterally and at regional level, while recognising that ownership of the
transition lies with its partners. While the overall cooperation with the
region in 2013 was heavily influenced by its political developments, in some
sectors joint work continued in the best possible way.

Bilateral cooperation

Negotiations on the ENP Action
Plan with Algeria, launched in 2012, accelerated towards the end of 2013,
though it was not possible to discuss all topics at that stage and in some
areas of cooperation important divisions continued. A memorandum of understanding
on energy cooperation was signed.

Limited progress was made in bilateral
relations with Egypt. Discussion on the new ENP
Action Plan and organisation of the relevant subcommittees were postponed due
to the events leading to Mr Morsi’s ousting on 3 July 2013.

Cooperation and bilateral dialogue with Israel continued. Regular meetings of the
bilateral subcommittees took place. An EU-Israel Comprehensive Aviation
Agreement was signed in June. Israel was also the first non-EU country to negotiate and initial an
agreement of association to the EU’s ‘Horizon 2020’ programme on research and innovation.

Jordan was
confronted with difficulties relating to the Syrian crisis. Progress on reform
was limited. The Association Committee met in October and various subcommittees
met in the course of the year. The first Joint Committee meeting on the
EU-Jordan Euro-Mediterranean aviation agreement took place in January
2013.

The Association Committee with Morocco met in June and the Association Council in December, along with several
subcommittees. The Mobility Partnership (MP) was signed in June and Deep and
Comprehensive Free Trade Area (DCFTA) negotiations started in April. The second
ENP Action Plan was adopted in December.

ENP dialogue
with Lebanon continued with two meetings of the Association Committee and five
subcommittee meetings. Lebanon and the EU agreed to start implementing the
second ENP Action Plan from the beginning of 2013 while awaiting the completion
of legal procedures. Various political challenges, including some stemming from
the Syrian crisis, have, hindered the implementation of a number of reforms.

The
EU continued its assistance to Libya, focusing on security, economic recovery,
public administration and migratory matters. Exploratory talks aiming at
re-launching the Framework Agreement negotiations were held. Since May, the EU
Border Assistance Mission (EUBAM Libya) has been assisting the Libyan
authorities with developing capacity to improve border security and devise a
broader Integrated Border Management strategy.

The new ENP Action Plan with the Palestinian Authority (PA) entered
into force. It sets out the Palestinian Authority’s commitment to building
institutions based on the rule of law, democracy and respect for human
rights as a basis for the establishment of a Palestinian state. Regular
dialogue continued at the same pace, with all six ENP subcommittees meeting in
2013.

The ongoing military conflict in Syria precluded any bilateral cooperation with the Syrian regime.

Further work on the implementation of the new ENP
Action Plan with Tunisia continued and – after four years - the first meeting
of the Association Committee was held in June. Progress was made in
negotiations on the Mobility Partnership, which was signed on 3 March 2014. Tunisian
authorities achieved an important milestone in their democratic transition with
the adoption of the new Constitution, on 26 January 2014.

Multilateral cooperation

In 2013, the EU and Southern Mediterranean partners stepped up relations, with new avenues for dialogue and
cooperation on a number of areas of mutual interest.

Reviving the activities of the Union for the Mediterranean (UfM)[3], which the EU has co-chaired since 2012,
was important in making regional cooperation more dynamic. After a lapse of several years, UfM ministerial
meetings resumed. Three were held in autumn (on strengthening
the role of women in society in September, transport in November, and energy in
December). Regular meetings of senior officials
allowed them to develop political dialogue and broad cooperation between
various institutions from both sides.

The UfM has endorsed a number of projects, including,
‘de-pollution of the Mediterranean’, ‘maritime and land highways’, and the
‘Mediterranean business development initiative’. In
2013, three new projects were launched: ‘Young women as job creators’, ‘Governance
& financing for the Mediterranean water sector’ and ‘LOGISMED training
activities’[4].
Two other projects were given the ‘UfM’ label in October: ‘Generation entrepreneur’
and the ‘Integrated programme for the
protection of Lake Bizerte against pollution’. All these
projects have been developed in close coordination with the EU and complement
other EU regional programmes in the region. The prospects for further
practical collaboration seem good.

Another important factor which enhanced cooperation with Mediterranean
partners is sub-regional
cooperation in the Maghreb.

Foreign ministers of
the Western Mediterranean Forum[5]
(commonly known as the 5+5 Dialogue) met in Nouakchott, Mauritania, in April 2013. The first meeting of the 5+5 Economic Forum, bringing together foreign ministers
and business representatives, took place in Barcelona in October. Foreign
ministers underlined the importance of the economic dimension being added to
the 5+5 Dialogue and the involvement of civil society, in particular
entrepreneurs’ and employers’ associations. The links between security and
development were recognised by all.

In the course of 2013, the joint communication Supporting
closer cooperation and regional integration in the Maghreb: Algeria, Libya, Mauritania, Morocco and Tunisia, adopted in December 2012[6], was discussed by the Maghreb countries and a list of areas for reinforced cooperation was established.
Commissioner Štefan Füle and the Maghreb foreign ministers endorsed a number of
priorities and agreed on the way ahead during their meeting in September.

Security
cooperation

The EU’s counter-terrorism engagement with the region is
largely set out in the Maghreb communication adopted in December 2012[7]. A first project was
launched in October 2013: ‘Supporting rule-of-law-compliant investigations and
prosecutions in the Maghreb region’, focusing on the criminal justice
chain in relation to counter-terrorism. The project involves experts from EU
Member States and EU agencies. In addition to the regional workshops, Morocco, Tunisia, Algeria and Libya will receive tailor-made assistance as from 2014.

The EU was politically active in
counter-terrorism across the region, exchanging analysis and best practice and
encouraging reform, including through capacity-building assistance. Relevant action plans are under development with Morocco and Algeria.

The EU also participated in the UNCTED (UN Counter-Terrorism
Executive Directorate) visit to Morocco in March. Counter-terrorism and
prevention of radicalisation were included among the focal areas for EU
programming in Libya. The EU also focused on countering terrorism financing. Finally,
outreach to the Mediterranean countries on foreign fighters – mostly related to
the conflict in Syria - was another priority for the EU.

In July 2013 the Council decided to designate the Hezbollah military
wing as a terrorist group and placed it under the EU sanctions combatting
terrorism.

A Regional Ministerial Conference on Border
Security was held in Rabat in November with the participation of
Maghreb countries (together with Sahel countries and Sudan), EU member states (France, Spain, Italy, Malta, Portugal, and the United Kingdom), the EU, Egypt, Turkey and the United States. International organisations such as the UN, the Arab Maghreb Union, the
League of Arab States, the North Atlantic Treaty Organisation, the Organisation
of Islamic Cooperation and the Economic Community of West African States were
also present. The resulting Rabat Declaration proposes setting up a special
secretariat to oversee the implementation of the ‘Tripoli Action Plan’ for
border security and the opening of a regional training centre. It was agreed
that the EUBAM Libya mission should help Tripoli to put into practice the
concepts discussed at the Conference.

Three EU common security and defence policy missions are
being conducted in the region:

(1) EUBAM Libya

In May 2013, the Council decided to launch EUBAM Libya to support
the Libyan authorities in developing border management and security at the
country’s land, sea and air borders.

(2) EUPOL COPPS

Based
in and operating in the West Bank, this EU police mission (running since 2005)
is part of the EU’s wider efforts to support Palestinian state building with a
view to a comprehensive peace based on a two-state solution.

(3) EUBAM Rafah

Despite the suspension of operations at the Rafah crossing point in
2007, this EU Border Assistance Mission has maintained its capacity to rapidly
redeploy once political and security conditions allow.

The EU
is also ready to support security sector
reform (SSR) in the framework of national reforms fostering
democratic governance. At
the demand of the Tunisian
Ministry of the Interior, a
peer review was conducted by the EU in the summer to assess the need for
reforms in the security sector.
In Lebanon, a EUR 8 million programme to support SSR was launched
in July.

There is a good deal of informal cooperation with Southern Mediterranean partners, for example in the fight against piracy. The EU is in the
early stages of launching discussions on negotiating a framework agreement with
Morocco on participation in CSDP missions, according to the mandate given by
the Council in 2010. Other countries in the region are invited to contribute to
CSDP missions in different ad hoc calls for contributions.

The ongoing programmes under the EuroMed brand continued as well,
including the organisation of the first training seminar on 'Resolution of
cross‐border family conflicts: international, EU and national legislation' under the EuroMed Justice III Project, which took place in Rome in
October.

The new EUR 5
million programme targeting civil protection (‘PPRD South II’) started
in September to bring the Mediterranean partners closer to the EU Civil
Protection Mechanism.

The way ahead

At regional level,
preventing further spill-over of conflicts, particular those in Syria and the Sahel, and the consolidation of peace and stability represent major challenges. It is
therefore important that the EU increase its leverage and further strengthen
its cooperation bilaterally and with regional organisations.

3. Implementation of the roadmap vis-à-vis Southern Mediterranean
partners

3.1. Building sustainable
democracy

Human rights and democracy

The transition process and the human rights situation continue to
differ from country to country. In the field of democracy and
human rights, the remaining challenges associated with transition processes are
constitutional and institutional reforms, transitional justice, strengthening
the role of civil society and securing human rights. They also involve security
issues and include pressing needs for more transparent, accountable and
democratically controlled security sectors.

In 2013, the
EU held bilateral subcommittee meetings on human rights with Algeria, Jordan,
Lebanon and Palestine and an informal working group meeting with Israel.

The EU places considerable emphasis on
improved democratic governance, which would smooth the way for sustainable development,
crucial for the Southern Mediterranean region and its societies. New
generation ENP Action Plans agreed in recent years include detailed provisions
on democracy, human rights and good governance, setting concrete benchmarks for
freedom of expression, the media, association and assembly, religion and
belief, and for women’s rights, transparent elections; and the independence of
the judiciary.

In 2013, the unstable political
situation and growing social unrest based on peoples’ demands for dignity,
democracy, respect for human rights and inclusive economic growth strongly
affected the performance of the Southern Mediterranean governments in
implementing reforms. Complex domestic and international challenges constrained
the implementation of the agreed road maps and achievement of the set
objectives. The continuing change in 2013 revealed even greater differences
between the transition trajectories of individual countries in the region.

Concerning the electoral and constitutional
processes: Jordanian elections were held in January 2013 and Egypt and Tunisia adopted their new Constitutions, on 14/15 January 2014 and 26 January 2014
respectively.

While progress continued to be
made in some countries on building and strengthening the institutional basis
for deep and sustainable democracy and human rights, in others this
process has all but stalled or even gone into reverse as a result of political
polarisation and conflict.

The EU remains deeply concerned
about the deteriorating human rights situation in Syria. In 2013,
widespread and systematic violations and abuses of human rights and
international humanitarian law were perpetrated in Syria. The EU reiterated its
call on the UN Security Council to address this situation, possibly by referral
to the International Criminal Court as requested in Switzerland’s letter to the
UN in January 2013. It has pointed out that those responsible for crimes
against humanity and war crimes must be held accountable. It has reaffirmed its
support for the Independent International Commission of Inquiry for Syria set up by the UN Human Rights Council.

Gender equality, the rights of
women and violence against women are significant challenges across the
region, albeit with differences between individual countries. The UfM held a
regional ministerial conference in Paris on Strengthening the Role of Women in
Society to address this issue. In the resulting declaration, the ministers
reaffirmed their obligations and committed themselves to taking concrete
measures to improve the situation and the role of women. A follow-up mechanism
including regular stocktaking on progress in implementing these measures was
also agreed. The Ministers also decided to support projects set up to underpin
implementation and to practise cooperation on strengthening the role of women. Special mention should be made of ‘Spring forward for women’, an
ongoing EUR 7 million regional programme funded by the EU and implemented by UN Women, supporting women’s political empowerment and advocating with the
League of Arab States to work towards improving protection of women’s rights in
the region.

Very limited
progress on judicial reform can be reported in the Southern
Neighbourhood, even though judiciary remains a key element of all ENP Action
Plans and related programming.

Public pledges to enhance the
fight against corruption were made. The revised EU approach
to the use of budget support includes new eligibility criteria on transparency
and oversight of public finances. The fight against corruption is also tackled
through projects under the European Neighbourhood and Partnership Instrument
(ENPI) and the European Instrument for Democracy and Human Rights (EIDHR).

In order to support political actors
striving for democratic change in their countries,
the European
Endowment for Democracy (EED) was
launched at the end of 2012, becoming fully operational in the course of 2013.
The European Commission contribution of EUR 6 million was granted to
support the start-up and functioning of the EED over the period 2013-2015. In its first year, the EED has already provided support to Syrian and Egyptian organisations
and held a number of conferences and events in support of democracy in the
region.

The EU
continues to provide support to the
Council of Europe (CoE) through a EUR 4.8 million
programme, ‘Strengthening democratic reform in the Southern Mediterranean’. This
programme is already delivering results in the main
beneficiary countries with which the CoE has partnership agreements (Tunisia and Morocco) in the areas of court performance, the independence and transparency of the
judicial system, good governance and the fight against corruption. Morocco indicated its willingness to accede to over 50 CoE conventions and the Moroccan
Ministry of Justice requested the assistance of the CoE on the finalisation of
two draft organic laws (on the High Council of Judicial Power and the terms of
employment of judges). In addition, the programme allowed the EU to swiftly
react to ad hoc demands from Egypt and Libya in reviewing a number of draft
laws or in supporting the electoral process. In Tunisia, the Venice Commission
was an important counterpart in the work on the new Constitution. Interest in
cooperating more closely with the Venice Commission was also expressed by Egypt, Libya and Algeria. There are CoE offices in Tunis and Rabat.

A partnership with societies

The increasingly vocal and empowered civil society and increased
media freedom in the region are positive trends worth highlighting.

The role of civil society organisations (CSOs) and networks, as well
as of social partners, has increased in the region, especially in Tunisia, Jordan, Egypt, Lebanon and Morocco. The EU welcomed this development and aimed to
strengthen its direct engagement with CSOs and social partners. The voice of civil society is also more and more listened to by
southern ENP countries’ governments.

In the wake of events in the
region, the architecture of local CSOs continued to change. Not only has their
number risen, but with the emergence of new, often less hierarchic and less
formal organisations, their architecture became more complex and includes a
wide spectrum of different organisations and actors.

At the same time, the conditions
under which CSOs can operate independently vary significantly throughout the
region as change in the legal and political regulatory frameworks in individual
countries has been uneven. Concerns that the space for civil society is
shrinking have been expressed in some countries in the region. In addition to
restrictive legislation and practice, some governments have created their own,
government-controlled ‘CSOs’.

The EU continued to put its
policy framework into practice and funds a broad range of CSO activities. At
bilateral level, the EU Delegations have begun to draft road maps to guide them
in their efforts to further empower civil society.

The EU is supporting the efforts
of the Anna Lindh Foundation to ensure a joint inter-institutional approach to
enhanced dialogue and partnership with civil society in the Mediterranean region.
The Foundation continued its capacity-building work among 3 500 civil
society member organisations in all 43 member countries of the UfM. Work is
being carried out under the three-year programme 2012-2014 with a budget of
EUR 15.35 million. As part of this work, dialogue sessions on partnership
with civil society and intercultural dialogue with a wide range of civil
society representatives were held at the Foundation’s Forum in Marseille in
April, which attracted more than 1 000 participants, the majority of
them women.

On the EU side, CSO mapping studies
are being developed to better understand CSOs’ needs and the areas in which they operate. Against
this background, the EU channelled additional support
to civil society in the region through the
Civil Society Facility (CSF), which provided EUR 34 million over the period 2011-2013, with
the objective of strengthening and promoting the role of
civil society in reform and democratic change. For example, at
national level, the CSF financed a resource centre for
civil society in Algeria; and in Tunisia, it funded technical assistance to provide
legal support for CSOs and to centralise and facilitate access to relevant
information.

These actions complement the support for
civil society already provided under other EU instruments
targeting CSOs (such as the ‘Non-state actors and local authorities’ programme
and the EIDHR).

In 2013, the Instrument for Stability (IfS) contributed to
crisis stabilisation, peace-building and mediation and support for civil
society’s role in transition processes. On crisis stabilisation, the IfS helped
communities in Syria that no longer received services from central
government to maintain basic services, while also helping authorities and host
communities in neighbouring countries (mainly Lebanon and Jordan) to better
cope with the growing influx of refugees. Its activities were designed to
reduce tensions and, in the case of Lebanon, also focused on conflict issues
pre-dating the Syria crisis. The IfS supported efforts to mitigate local
conflicts by working with tribal Libyan leaders and by improving local
CSOs’ capacity to address issues such as the protection of vulnerable groups
and de-mining. In Tunisia, the IfS supported inclusive engagement and
dialogue between political parties and CSOs, including the Tunisian League for
the Defence of Human Rights, as well as enabled training journalists. In Egypt, CSOs were helped to respond better to the tumultuous political transition by
improving their lobbying capacity and engagement in public policy debates.

The way
ahead

Cooperation and support to further
constitutional and institutional reform, transitional justice, strengthened
role of civil society and securing human rights, as well as security reform
will remain
fundamental to the sustainable development of the southern neighbourhood
countries.

Concerning civil
society participation, cooperation with the League of Arab States should be
stepped up to make it better able to promote these values among its members. At
regional level, too, structured dialogue among and with CSOs, and improved
information flows could contribute to these goals.

3.2. Inclusive, smart and sustainable economic development, trade
and investment

Democracy cannot take root unless
accompanied by inclusive, smart and sustainable economic
development with opportunities for all.

Economic trends[8]

Almost three years
after the revolutionary developments in the Arab world, the economic reform
processes of the EU’s southern neighbours still face daunting challenges and
uncertainties. Macroeconomic indicators show the situation is still fragile,
with significant downside risks, primarily as a result of the Syrian conflict
and its regional spillover effects, tense situations in Egypt and Tunisia, and the significantly worsening state of internal affairs in Libya.

In 2013, economic
growth in the Southern Mediterranean countries recovered only partially.
Average GDP growth in the region remained subdued and below 2005-2010 averages.
Algeria, Egypt, Lebanon, Palestine and Tunisia all saw a slowdown in their GDP
growth in comparison to 2012. Israel, Jordan and Morocco saw a slight increase;
whilst no figures were available for Syria. Economic activity in Libya contracted due to extended blockages of the oil fields by armed groups.

Fiscal positions
deteriorated even further in 2013 (with the average deficit[9] increasing from 4.3 %[10] in 2012 to 8.1 %[11] in 2013) and the balance of payments situation remains weak. Subsidies
were one of the largest common factors weighing on the fiscal deficits, with
only Jordan, and to some extent Morocco, taking meaningful steps towards
subsidy reform.

Current account
balances were positive only in Algeria and in Israel, and Jordan’s deficit decreased significantly from 17.3 % of GDP in 2012 to 11.1 % in 2013.
Foreign Direct Investment (FDI) inflows are still well below pre-2011 levels
(with the exception of Libya, Morocco and Tunisia) and official reserves
experienced further declines in Jordan, Libya and Tunisia. The adverse economic
and political environment continued to weigh on employment creation.

In addition to domestic
and regional factors, economic recovery is further hindered by weak external
demand, notably from the EU, the region’s most important trade partner.
Relatively high international food and energy prices continued to weigh on Arab
countries in transition, since most of them are their net importers.

The intensification of
the Syrian conflict significantly affects the Mashrek region, generating a
serious source of regional economic and political instability. Jordan and Lebanon have been significantly affected by the refugee crisis. Despite this, Jordan is working hard towards structural economic reforms that aim at fiscal
consolidation.

Egypt, the largest economy in the region, remains vulnerable
economically. A number of difficulties and uncertainties surrounding the
country’s political transition left Egypt in a weak balance-of-payments and
fiscal position — in spite of significant financial assistance from the Gulf
Cooperation Council countries, which provided some ‘breathing space’.

Libya’s positive economic developments were reversed in 2013 as oil
production and exports plummeted, resulting in fiscal and external deficits. On
the other hand, the Moroccan and Algerian economies continued to show
resilience despite their unfavourable regional environment and fragile domestic
situation. Algeria continued to mitigate the possible economic impact of social
tensions by mobilising its fiscal resources, with an ensuing increase in
government expenditure (civil service wages, price subsidies and social
transfers).

Job creation and support for small and medium-sized enterprises (SMEs)

The regulatory environment for business in
the Southern Neighbourhood continued to slowly improve in 2013. However,
entrepreneurs across the region still face weak investor and intellectual
property rights protection, in addition to restricted access to credit. New ENP
Action Plans include substantial sections on improving the investment climate
and regulatory convergence with the EU acquis. The EU put
forward multiple initiatives to support the promotion of SMEs and job creation
and around EUR 850 million of bilateral assistance has been devoted to these
objectives since 2011.

The Commission, the Organisation for Economic Cooperation and
Development (OECD), the European Training Foundation (ETF) and the European
Investment Bank (EIB) continued to cooperate with Mediterranean neighbours to evaluate their SME environment. In Tunisia, an EU-Tunisia Council for Entrepreneurship was launched, aiming to enable business to
advise the government on ways of improving the business climate. Implementation of the ‘Euromed Innovative Entrepreneurs For
Change’ programme continued in Morocco, Tunisia, Egypt and Lebanon.

In April, with
the EIB and International Maritime Organisation (IMO), the
European Commission co-organised the twelfth FEMIP
(Facility for Euro-Mediterranean Investment and Partnership) Conference with a
view to increasing marine and maritime cooperation among Mediterranean counties
and to supporting economic growth and job creation in the region.

SANAD, the fund supporting SMEs in the region, and the European
Bank for Reconstruction and Development (EBRD), with its
Enterprise Growth Programme and Business Advisory Services (supporting the private sector) continued to be active.

Three regional programmes worth a total of
EUR 12 million were contracted at the end of 2013 to contribute to the
improvement of the business environment for SMEs. The EU/OECD ‘Investment Security in the
Mediterranean’ (ISMED) support programme, with a budget of EUR 1.5
million, provided technical assistance and advisory services to reduce the
legal risk of infrastructure investment projects. The EU also financed the
ISMED ‘Risk and cost sharing toolkit’ under the Neighbourhood Investment
Facility (NIF).

Most of these
initiatives were backed by the NIF.

Lending from EIB, EBRD and other
institutions

Scope for lending by the EIB, EBRD and other European
financial institutions to small and medium-sized businesses in the Southern Mediterranean increased.

In 2011, the financing ceiling for EIB
operations in the Mediterranean countries had been increased by an additional
EUR 1 billion, bringing it to a total of EUR 9.7 billion for the
budget period 2007-2013. As of November 2013, EUR 8.5 billion in loans had been
signed with a further EUR 1.6 billion already approved and awaiting signature.
However, as part of restrictive measures against Syria, the EU prohibited EIB
disbursements for this country and Syria was removed from the list of countries
eligible for the EIB external mandate.

The process of extending the EBRD’s
geographical mandate to the southern partners (Egypt, Jordan, Morocco and Tunisia) was completed by all shareholders in September 2013.[12] A quick-start
mechanism was set up in the form of a Cooperation Fund to finance technical
cooperation, project identification and preparation. EUR 1 billion from the
EBRD’s own resources was allocated to the Investment Special Fund. By the end of 2013, the EBRD signed
operations worth around
EUR 650 million of which more than 80 % was dedicated to private
sector and complemented by additional technical assistance. Provisional EBRD offices were set up in Casablanca, Tunis, Amman and Cairo. ‘Host-country agreements’ for permanent EBRD Resident
Offices were signed with Tunisia and Jordan. Libya has also requested to become
an EBRD country of operations.

Macro-financial
assistance (MFA)

The Southern Neighbourhood countries are in principle
eligible for MFA from the EU — if they have a programme agreed with the IMF. Jordan has a USD 2 billion three-year Stand-By Arrangement with the IMF approved in
2012. At Jordan’s request, the EU is also preparing an MFA programme for this
country worth EUR 180 million. Tunisia also has a programme with the IMF
of up to USD 1.75 billion, approved by the IMF in June 2013. Subsequently,
it requested MFA from the EU and the Commission adopted a proposal for EUR 250
million in December 2013.[13]

Macroeconomic dialogues

The EU continued to strengthen the macroeconomic
dialogues with its southern neighbours. In 2013, dialogues were held with Tunisia (February), Algeria (June), Israel (October), Palestine, Morocco and Lebanon (November). The dialogues with Jordan and Egypt were postponed to 2014; no economic
dialogues are held or are planned with Libya or Syria.

Trade

Preliminary
data for 2013 indicates that overall bilateral
trade flows
between the EU and the Southern Mediterranean partners are
increasing.[14]

The main EU medium-
to long-term objective with southern partners is to upgrade and strengthen
trade and investment relations and pursue their economic integration with the
EU internal market, in particular through the
establishment of DCFTAs as
soon as necessary conditions are met.
Following the adoption by the Council in 2011 of the
negotiating directives for DCFTA agreements with Egypt, Jordan, Morocco and Tunisia, relevant talks with Morocco were launched in March 2013 and led to two
negotiating rounds in April and June. With the other three countries the
Commission continued preparatory work, assessing each partner’s commitment to
implementing such agreements and identifying priorities for regulatory
approximation. Good progress was made with Jordan while the process slowed down
in Tunisia in 2013. The Commission launched an exploratory dialogue on the
DCFTA with Egypt in June 2013, but there has been no progress in the
preparatory process since then due to the political events in this country.

Free-standing negotiations on
trade in services and investment were launched with Israel, Egypt, Morocco and Tunisia as early as 2008, but all of them stalled. In
June 2013, it was agreed to incorporate the negotiations on trade in services
with Morocco into the DCFTA discussions.

Preparations for
negotiations on ACAAs (Agreements
on Conformity Assessment and Acceptance of industrial products) are ongoing
with all southern ENP partners. The ACAA with Israel entered into force in
January 2013.

Following the signature of the single regional Convention on pan-Euro-Mediterranean (PEM) preferential rules of origin in 2011, the
EU must ensure their proper revision and modernisation. Relevant discussions on the revision of these rules took place in the PEM Working Group in May and October 2013
and are expected to be finalised in 2014. In 2013 Egypt, Israel, Palestine and Tunisia signed the PEM Convention and Jordan ratified it.

Work on the priorities agreed at the UfM
Trade Ministerial Conference in 2010 continued
through 2013. An international conference on the role of trade in economic
development in Palestine took place in Istanbul in October 2013.

Regional south-south integration is
also a major objective that the EU pursues
with southern partners. Palestine is in the process of acceding to the Agadir
Agreement[15] and Lebanon has expressed interest in joining. For its part, the EU renewed its support for the
Agadir Technical Unit for the period 2013-2016.

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

Social policy and employment

Effective social
dialogue and activity of independent social partners are part of modern
governance; crucial for the success of reforms. High
unemployment rates, especially among the young population, remain one of
the main regional problems, alongside with a low level
of participation by women, poverty and social inclusion. These challenges were
discussed by the second EU organised UfM-Euro-Mediterranean
Social Dialogue Forum in November 2013 in Barcelona. In order to better coordinate donor activities with a view to promoting
projects on employment and social dimension, in 2013 the UfM Secretariat
launched also the ‘Mediterranean Initiative for Jobs’.

The way ahead

If the political
situation in the partner countries stabilises, partner governments could better
define their economic policies and take more decisive action on economic and
social reforms, as well as engage in consultation with the social partners.
Implementing reforms is the best way of confirming that they are interested in
taking up the EU’s offer of political association and economic
integration. However, it will require more resolute administrative support for
negotiations and cooperation with the EU. In this context, the EU will have to
further pursue its work of explaining the concrete benefits of its initiatives
on trade and trade-related matters, notably for improving the business and
investment climate. It will also need to give the matter the necessary
attention and resources to ensure that the negotiations are conducted swiftly
and that the agreements can enter into force as soon as feasible. Progress in
the DCFTA negotiations or in preparations to launch them is an encouraging
sign.

3.3.
Migration and Mobility

Cooperation on home affairs matters was
significantly strengthened in the course of 2013 through dialogues on
migration, mobility and security and negotiations on Mobility Partnerships.

Negotiations on draft political declarations
for MPs with Tunisia and
Morocco
started already in 2012. The Mobility Partnership with Morocco was signed on 7 June 2013. The EU has
allocated EUR 10 million from the SPRING programme to this project, so far
the largest funding package to support the implementation of a Mobility Partnership.
Furthermore, a list of more than 50 initiatives to be implemented in the
framework of the Partnership has been agreed upon. The negotiations on the Mobility
Partnership with Tunisia were finalised by end of 2013 and the agreement
was signed on 3 March 2014.

With Morocco the EU and its Member States commended the new migration and asylum policy announced
by Rabat in September to ensure that migration is dealt with in a humane and
fair manner, fully upholding human rights. In October, the Commission put forward a draft mandate
to the Council for negotiations between the EU and Morocco on an agreement to
facilitate procedures for issuing short-stay visas. The Council granted
its mandate in December 2013 and the negotiations on both readmission and visa
facilitation are ready to be launched in the first semester of 2014.

An EU-funded
review on border management in Tunisia made recommendations on reforms in
a report approved by the Tunisian Ministry of Interior.

Dialogue on migration, mobility and
security started with Jordan in 2012.
Two visits by EU experts took place in February and July 2013 and discussions
on a draft text of the Mobility Partnership with Jordan started in December.

To support the dialogues
and implementation of the Mobility Partnerships, the European Asylum Support
Office (EASO) and Frontex decided to propose a joint project to promote
participation by Morocco, Tunisia and Jordan in their work from 2014.

During
2013, progress was also made in preparatory discussions on social security
provisions contained in the Association Agreements with partners. The technical discussions with Morocco and Israel were completed. Discussions with Algeria and Tunisia are on-going.

Following the tragic sinking of a migrant vessel off the
coasts of Lampedusa on 3 October 2013 and the consequent loss of life, the
Council agreed to set up a multi-institutional Mediterranean Task
Force to prevent such incidents in the future and discuss the ways to
address the issue of irregular migration across the Mediterranean. On the basis of its mandate and discussions, the Task Force
concluded that a comprehensive and holistic range of measures is required. A Commission Communication on the work of
the Task Force[16]
was adopted in December. The
December European Council endorsed the work of the Task Force and its proposed action and noted that increased engagement in this
area should be a priority. A wider debate on migration and asylum issues is
scheduled for the June 2014 European Council.

The way
ahead

Partners continue to have strong
expectations of easier mobility to the EU and many of them have taken
steps to establish national asylum systems as well as improved systems to
prevent and combat trafficking
in human beings and protect its victims. The EU is
now considering launching dialogues on
migration, mobility and security with more Southern Mediterranean
countries, depending on their willingness and capacity to collaborate closer
with the EU, as well as their legal and administrative frameworks.

3.4.
Sector cooperation

The new generation of ENP Action Plans
includes substantial components on sector policy cooperation.

In 2013, dialogue
with partner countries continued to identify their interest in participation
in EU programmes
and agencies. In October
a protocol enabling Jordan to participate in EU programmes
open to ENP countries entered into force. Discussions on similar protocols were
held with Algeria and Lebanon. The European Aviation Safety Agency (EASA)
concluded a working arrangement with Lebanon in June. The European
Environmental Agency (EEA) continued to implement the ENPI ‘Shared environment information system’
project with the
overall objective of promoting the protection of environment in the countries
of the European Neighbourhood — nine Southern Mediterranean countries take part
in this project. In December 2013, the EU organised an
information seminar on a new generation of EU programmes for the period
2014-2020, with a view to clarifying their objectives, implementation
modalities and conditions for participation.

Research
and innovation. Important steps were taken in the
development of a ‘Common knowledge and innovation space’.
Participation by Southern Mediterranean partners in the Seventh Framework
Programme (FP7) increased. By January 2014, private and
public entities in the Southern Mediterranean had participated in nearly
400 FP7 grant agreements, supported by an EU contribution of more than
EUR 650 million, of which the EU set
aside a contribution of around 10 % for the
participation of southern partners[17]. Several new projects
specifically targeting the Southern Mediterranean through regional actions were
launched under the FP7 Work Programme. In February,
an INCO-Net[18] project: the Mediterranean
Science, Policy, Research and Innovation Gateway (MEDSPRING) was launched,
aiming at promoting a better dialogue between the EU and the Southern
Mediterranean in research and innovation, focusing on three crucial issues for
the region: water, food, and energy. In November 2013, the ERA-Net[19] project ERANETMED was
launched, aiming at reducing the fragmentation of scientific programming in the
Mediterranean. Under MEDUSA project, several regional workshops took place to support the Southern
Mediterranean countries in
the introduction of EGNOS[20]
services for civil aviation.

Two
new bilateral projects with Egypt and Tunisia were launched in September 2013
to support institutional dialogue under the existing bilateral science and technology
(S&T) agreements between the EU and
these countries. Targeted ‘Research to innovation’ projects started in November. In addition, the FP7 thematic
programmes launched some collaborative research projects specifically targeting
the Southern Mediterranean in the fields of i.a. energy, health, environment,
food and biotechnologies, research infrastructures, transport and social
sciences and humanities.

Algeria ratified the S&T cooperation agreement with the
EU in June 2013 and the first Joint Science and Technology Cooperation
Committee (JSTCC) meeting took place in March 2014 in Brussels. A meeting of the Euro-Mediterranean Group of Senior Officials for
Research and Innovation took place in December in Brussels focusing on ongoing
and future initiatives in the region.

A meeting on e-communications and the information society of senior officials from the Commission and
the regulatory authorities and ministries of telecoms from the Southern
Mediterranean region took place in November in Athens. A Joint Statement was adopted, which included calls
for closer involvement of the UfM and the cooperation with the EBRD. At regional level, a first workshop on
‘e-Signatures’ took place in Amman in November 2013. A concluding regional workshop on e-signature contribution to building trust in the use of
e-business took place in January 2014. Three information and communication technology research projects were
launched under the 7FP. "Twinning" projects took place as well with Israel and Jordan.

A new regional strategy for
Euro-Mediterranean cooperation in statistics was adopted, establishing relevant
governance structures and working groups in priority sectors. Progress was noted in key areas, such as developing national
strategies for improving agriculture statistics or the preparation of
national surveys on migration.

Higher
education. For the third consecutive year, the Erasmus
Mundus programme was allocated extra funding for Southern Mediterranean
countries. An extra EUR 5 million allowed 159 more Erasmus Mundus
masters scholarships. In addition, the 2013 call for proposals selected nine
partnerships involving Southern Mediterranean universities with a total budget
of almost EUR 30 million. These partnerships will fund even more scholarships
and exchanges. On top of this, a specific budget of EUR 4 million was
allocated to Tunisia, which led to the selection of two partnerships organising
at least 170 scholarships for Tunisians and 50 for EU citizens.

Another
call for proposals worth EUR 41.7 Million was published under the Tempus programme supporting institutional
cooperation between the EU and
Southern Neighbours on modernising higher education systems. 53 projects
involving Southern Mediterranean universities were selected; of these 17
southern universities became project coordinators.

Vocational education and training (VET). The
EU continued to provide methodological support for Southern Mediterranean
countries mainly through the activities of the European Training Foundation
(ETF). In addition to supporting the specific needs of national authorities,
the EU launched a regional project, ‘Governance for employability in the Mediterranean’ (GEMM), implemented by the ETF, it aims to enhance
the quality and relevance of vocational education and training systems. The Foundation
also organised a Forum in Marseille on public management of education, training
and employment policies in the Arab Mediterranean states.

In 2013, the EU adopted the following Education-sector
related initiatives:

- Jordan (EUR 30 million):
'Support to second phase of education reform', with
specific focus on education in the camps and the in communities hosting Syrian
refugees. Also a second project was adopted to provide
support for education, mentoring and skills development to displaced Syrians (EUR 10 million);

- Morocco (EUR 89.9 million): 'Support of the education
strategy', with focus on increasing access for girls and children from
impoverished families to elementary and secondary education;

- Palestine (EUR 5 million): 'Erasmus
Mundus - special window Syria', designed to help
mitigate the impact of the on-going crisis in Syria by creating additional scholarships specifically for
Syrians;

- Tunisia - additional EUR 10 million for 'Specific Tunisia
window under
Erasmus Mundus and Tempus'. In addition, Tunisia joined the
pilot extension of the eTwinning action (‘eTwinning
Plus’), which provides for virtual cooperation between
schools and teachers. The first Tunisian schools and teachers registered and an
information campaign was run to make this tool better known.

Youth. Some
2012 young people and youth workers from the Southern Mediterranean
participated in the ‘Youth in action’ programme and 415 projects involving Southern Mediterranean countries were selected in 2013. Nearly 300 persons participated in
the ‘Euro-Med youth’ programme, through its 86 approved projects. The EU finalised
the design of a preparatory action on youth employment (EUR 1.5 million)
aimed at promoting mobility among young professionals through internships in
SMEs on both sides of the Sea. A new EUR 8.8 million regional programme targeting
youth and youth organisations - ’NET-MED youth’, was adopted at the end
of 2013.

The EU is
funding regional culture programmes
in the Southern Mediterranean (the EUROMED Heritage and EUROMED Audiovisual
programmes, totalling EUR 28 million).
In addition, a new EUR 17 million regional programme reinforcing the role of
the media and culture as vectors for democratisation and economic and social
development was launched in 2013.

Regional energy policy cooperation
culminated in the holding of an UfM ministerial meeting on energy in December
2013. Forty-three UfM partners took stock of the work done on the Mediterranean
Solar Plan. The discussions focused on further strengthening regional energy
cooperation to ensure the secure, affordable and sustainable supply of energy
and enhanced energy efficiency in the Mediterranean Basin.

In support of the Mediterranean Solar Plan objectives, the EU
continued to fund a number of regional projects, such as the ‘Paving the way
for the Mediterranean Solar Plan’ which assisted partner countries in creating
conditions conducive to greater use of renewable energy in general and solar
energy in particular; MEDREG — an association of energy regulators to support
the development of a modern and efficient energy regulatory framework in the
Mediterranean partner countries and to strengthen their cooperation with EU
energy regulators; MED-ENEC, which encourages energy efficiency through
capacity building, fiscal and economic instruments and pilot projects; and
‘Cleaner energy-saving Mediterranean cities’, which supports the efforts of
local authorities in the southern ENP countries to respond more actively to
energy policy challenges.

The EU also intensified its cooperation with Med-TSO (the
association of Mediterranean transport system operators) with the objective of
facilitating the integration of electricity systems in the area.

In this framework, the NIF financed key infrastructure projects in
the energy sector. A renewable energy efficiency project preparation initiative
was launched in support of the Mediterranean Solar Plan to provide technical
assistance to renewable energy projects. A technical assistance programme was
also initiated in support of the Mediterranean Urban Projects Finance
Initiative to develop several sustainable and innovative urban projects. The
Facility also participated in the funding of an energy efficiency global loan
for Lebanon and of a reinforcement of the high voltage transmission network in Morocco and the second stage of the Ouarzazate concentrated solar power plant in Morocco.

In regional transport cooperation,
the Mediterranean partners evaluated the implementation of regulatory reform
and convergence process under all relevant sectors (maritime, aviation, and
land transport) of the Regional Transport Action
Plan for the Mediterranean for 2007-2013
with a view of establishing an integrated multimodal
Euro-Mediterranean transport network. The successful UfM
Ministerial Transport Conference held in November in Brussels endorsed the
evaluation report and the priority guidelines for the next Plan for 2014-2020.
Ministers also agreed to work towards the establishment of a mutually agreed
indicative map of the Trans-Mediterranean transport network and its connection
with the Trans-European Transport Networks (TEN-T). In December 2013, the EU
and the EIB signed a NIF backed programme providing advisory services and technical
assistance to the preparation and implementation of transport infrastructure
projects supporting the region.

The setting-up of the Euro-Mediterranean aviation area
continued, with the negotiation of comprehensive aviation agreements with
interested partners. Israel signed one in June, joining Morocco and Jordan. Negotiations with Tunisia were also launched. Israel, Jordan, Lebanon, Morocco and Tunisia actively
participated in the Mediterranean
Aviation Safety Cell (MASC), coordinated by the European Aviation
Safety Agency (EASA), in the field of regulatory convergence and integration in the EU
aviation safety system. EU technical support is pursued in this regard at regional level within the EuroMed II aviation project.

In the maritime sector, the European
Maritime Safety Agency (EMSA) continued implementing the next phase of the SAFEMED[21]
project. Further concrete
areas of cooperation with
EMSA were envisaged, which extended the geographical
scope of EMSA activities to the
Mediterranean Partners. Work progressed on an EU proposal
for regional exchange of Automatic Identification System data. In order to
better respond to discharges from ships and to locate and identify polluters,
all Mediterranean countries were invited to participate in the CleanSeaNet
satellite service information session. The FEMIP Conference in Athens also
explored options for greater cooperation between the EU, the EIB and the
International Maritime Organisation (IMO) on
the development of the Mediterranean’s ‘blue economy’. An Integrated Maritime Policy technical assistance project
has enabled the specific technical assistance needs to be identified for each
country. Partners benefited from technical assistance provided by the project team on
cross-sectoral marine and maritime issues and participated in regional
meetings and workshops held in Athens, Valletta and Brussels, as well as in
works of the related thematic Working Group in Brussels. Cooperation between
maritime authorities in all Mediterranean countries was supported by a third
Mediterranean Coastguard Functions Forum, organised in Palma de Mallorca.

Partners made some efforts to strengthen
their governance on environment issues, including administrative capacity. The
relevant projects include ‘Sustainable water integrated management’, SWITCH-Med[22] aiming at helping southern neighbours to
switch to green economies, and the Horizon 2020 depollution initiative. Under
the Horizon 2020 initiative, the Mediterranean hot-spots identification
programme (MeHSIP) advanced four key pollution reduction projects in Egypt, Lebanon, Tunisia and Jordan to enable them to access EIB loans. A
MeHSIP priority project aiming at integrated management of Lake Bizerte in Tunisia was given the ‘UfM’ label. ENPI-financed regional projects are
progressing at a good pace with a very active participation from all partner
countries, including Libya, which in 2013 became involved in various initiatives. Israel, Palestine, Jordan and Morocco were admitted to start an enhanced cooperation with the European Environment
Agency (EEA). In December 2013, Israel, Jordan and Palestine signed an
agreement on producing and sharing desalinated water in Aqaba while providing
water to Amman from Lake Kinneret and exploring effects of mixing Red Sea brine
with Dead Sea water.

The Mediterranean region has been recognised
as a climate change hotspot, facing challenges and vulnerabilities
including water scarcity, extreme weather events, desertification, impacting on
region's sustainable development and economic growth. To support
individual countries' efforts and go beyond the
current initiatives (especially targeting the energy sector), a regional
technical assistance project, ‘CLIMA South’, was launched at the beginning of
2013. The project is active at both
national and regional level. In October, senior
officials agreed to hold an UfM ministerial meeting on environment and
climate change in Athens in May 2014 in order to intensify the regional cooperation.

Technical cooperation continues
on health and sanitary and phyto-sanitary measures. An EU-supported ‘Mediterranean programme
for intervention epidemiology training’ (MediPIET) began with the aim of
building capacity for surveillance and response to cross-border health threats
by supporting training facilities and creating a regional network of
epidemiologists. Partners attended a workshop on EU
rules on prevention and control of communicable diseases. The EU-supported ‘Episouth plus’ project, on preparedness
for common health threats and biosecurity risks, held its final meeting. Further, the EU supported projects improving animal health in the
region, including the activities of REMESA[23].

In
regional policy, the pilot regional development programmes
promoting economic, social and territorial cohesion with partners continued to
be implemented. Officials from Morocco and Tunisia visited regions in Belgium and France. At the same time, the Mediterranean ENPI cross-border cooperation programme was
progressing well (with three calls for proposals held; altogether of the total
programme budget of EUR 200 million,
EUR 182 million had been awarded).

The EU has continued to engage with the Southern partners in the European
Neighbourhood Programme for Agriculture and Rural Development (ENPARD). The process, which started with Tunisia, Morocco, Egypt and Jordan, was extended to Algeria and Lebanon. Programmes adopted so far total EUR 63
million. In Lebanon, a comprehensive work plan for policy support activities
has been agreed upon with the government. The EU has also responded to
partners’ requests for more experience sharing with a series of regional
seminars. The first took place in Brussels in January 2014.

The EU continues
to support actions to improve the General Fisheries Commission for
the Mediterranean (GFCM) framework for fisheries data collection and - on the
basis of GFCM guidelines -
implements the multiannual fisheries management plans. The Commission also continues
to support capacity-building in fisheries monitoring.

The way ahead

Sector policy cooperation
should be pursued further in order to meet the Roadmap objectives. If the
political situation in the partner countries stabilises, their governments should
take advantage of what the EU has to
offer and boost their participation in regional cooperation. The EU
should continue to explain the rationale for its
initiatives, including through UfM sectoral ministerial meetings.

3.5. Cooperation
with regional organisations

Cooperation
with the League of Arab States (LAS)

The EU and
the LAS cooperated closely, both in the political field and in implementing the
joint work programme agreed in 2012.

High-level dialogue between the High Representative for Foreign Affairs
and Security Policy/Vice President of the Commission and
the LAS Secretary-General was conducted regularly. Regular contacts between
senior officials became more frequent and diverse, with meetings held in
January, May and November. Contacts were also stepped up with several high
level visits.[24]

With regard to high-level dialogue, the next meeting of EU and LAS
Foreign Ministers is planned for mid-2014.

Practical
cooperation on the basis of the joint work programme is also progressing:

- following the inauguration of the LAS Situation Room, the EU
continued to help the LAS to develop its own crisis response architecture and
capabilities through a series of workshops/seminars;

- diplomatic training and exchanges took place: a special MoU on
these was signed between the EU and LAS in November 2013;

- training on electoral observation continued, with direct
cooperation with the newly established LAS department of electoral observation
and assistance;

- an EU-LAS civil society seminar took place in Malta in June 2013. A study visit by the LAS Charter Committee to Brussels took place in
December 2013.

Cooperation
with the Organisation of Islamic Cooperation (OIC)

The EU also
continues to build relations with the OIC. Engagement has proven to be a good path to better
mutual understanding and has helped to foster greater joint efforts to promote
more tolerance and respect in the world. The intensification of contacts was
shown by the inauguration of the OIC Permanent Observer Mission in Brussels, opened during an official visit by the OIC Secretary-General in June.

4.
FUNDING

The EU has continued to mobilise its
range of financial instruments to support the process of transformation and
reform in southern partner countries. While important contributions were made
in 2013 under the humanitarian assistance instruments (Syria), the IfS, the EIDHR, and the thematic programme on migration, the bulk of the
funding was provided by the ENPI. The total funds newly committed to the Mediterranean
partners under the ENPI amounted to EUR 1.535 billion.

Incentive-based approach: the
SPRING programme

In response to the Arab Spring events, the
Support for Partnership, Reform and Inclusive Growth (SPRING) programme was set
up, supporting those partners demonstrating clear progress in democratic
transformation, based on the ‘more for more’ principle.

In 2013, an additional EUR 150 million
from the programme was allocated to the southern ENP countries, based on an
assessment of the efforts they had made and taking into account their specific
situations, including the impact of the Syrian crisis. The funds were divided
as follows:

- Jordan: EUR 21 million to support
democracy-related reforms (justice, electoral process), employment and social
services in communities hosting Syrian refugees;

- Lebanon: EUR 21 million to fund
communities hosting Syrian refugees;

- Libya: EUR 5 million for specific
support for the media and the constitutional process;

- Morocco: EUR 48 million: divided into
support to inclusive economic development, democratic reform and the implementation
of the Mobility Partnership;

- Tunisia: EUR 55 million: EUR 45 million to
support democratic transformation and EUR 10 million for inclusive
economic development.

In 2011-2013, overall EUR 540 million have
been allocated to SPRING.

Funding for the Syrian crisis

Since the beginning
of 2013[25]
EUR 315 million from the ENPI was used to address the consequences of the
Syrian crisis (in Syria and in the neighbouring countries). In addition,
EUR 350 million in humanitarian aid from the EU budget was allocated to the Syrian
crisis. This brings total Commission funding since the start of the Syrian
conflict to over EUR 1.1 billion, including EUR 615 million in
life-saving humanitarian aid alone.

[1] See the communication Partnership
for Democracy and Shared Prosperity: Report on activities in 2011
and Roadmap for future action, accompanying
the Commission communication Delivering on a new European
Neighbourhood Policy, JOIN(2012) 114 final,
15.05.2012.

[2] A partnership for democracy and
shared prosperity with the Southern Mediterranean, COM(2011) 200 8.03.2011, and A new response to a changing
Neighbourhood, COM(2011) 303, 25.05.2011.

[3]
The UfM is a forum for dialogue among 43 EU and Mediterranean partners (Syria’s participation is currently
suspended) which complements bilateral relations between the EU and its southern neighbours.

[4]
The project aims to increase the range of national education and improve the
qualifications of logistics platform operators.

[5]
A sub-regional forum of countries situated on the western rim of the
Euro-Mediterranean littoral, comprising of 5 EU states: France, Italy, Malta, Portugal and Spain and 5 non EU countries: Algeria, Libya, Mauritania, Morocco and Tunisia.

[6] JOIN(2012) 36

[7] Please see the reference above.

[8]
The data used are based on the International Monetary Fund (IMF), the World
Bank (WB), the Economist Intelligence Unit, Eurostat and the Commission estimates.

[9] Simple average of: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco and Tunisia. Data are not available for Palestine and Syria.

[10] 7.7 % of GDP excluding Libya.

[11] 8.5 % of GDP excluding Libya.

[12] Tunisia, Jordan and Morocco were formally approved as countries of operations by the EBRD Governors on 1
November 2013.

[13] The Council and the European Parliament, which are approving such proposals,
may consider increasing this amount.

[14] Using 2012 figures, a 3% rise was noted,
reaching EUR 289 billion, a roughly 40% increase in the four years-time since
2009.

[15] Free trade agreement,
initially signed between Egypt, Jordan, Morocco and Tunisia.

[16] Communication on the work of the Task Force Mediterranean (COM(2013)
869 final) of 04.12.2013.

[17] These figures are based on the signed grant agreements. As many
more projects are mainlisted, the figures should still increase.

[18] So-called INCO-NET projects are platforms bringing together policy makers
and stakeholders to facilitate international research collaboration in the Science
and Technology sector.

[19] ERA-NET (European Research Area Network) is a scheme
stepping up cooperation and coordination of research activities carried out in
the EU Member States and EU-associated countries.

[20] EGNOS - the European Geostationary Navigation Overlay Service, is the
EU’s venture into satellite navigation, improving the open public service
offered so far by the USA’s Global Positioning System (GPS).

[21] The SafeMed Project (currently SAFEMED III – 2013-2015) is the EU
funded project developing Euro-Mediterranean co-operation in maritime safety
and security and prevention of pollution from ships by
providing technical advice and support to the non-EU Mediterranean
countries.

[22] ‘Switching towards more sustainable
consumption and production patterns in the Mediterranean’.

[23] REMESA: Mediterranean Animal Health Network (Réseau Méditerranéen de Santé Animale)
- a partnership of veterinary
authorities from ten Mediterranean
countries.

[24] A visit to Brussels by the LAS Secretary-General’s advisor, a study
visit by the Head of the Arab Parliament to the European Parliament in May, a visit
by the EU’’s Political and Security Committee ambassadors to Cairo in September
and a re-visit to Brussels by the Arab ambassadors to the LAS in November.

[25] The provided figures include the pledges from the Second Pledging Coherence of 15 January 2014 in Kuwait.

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