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# 52015SC0075

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy Partnership for Democracy and Shared Prosperity with the Southern Mediterranean Partners Report Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Implementation of the European Neighbourhood Policy in 2014 /\* SWD/2015/0075 final \*/**

  

INTRODUCTION

This
joint staff working document reviews regional aspects of the cooperation
between the EU and its southern Neighbourhood partners in 2014.

The purpose of this cooperation is to
strengthen regional integration in the southern Mediterranean. It is essential
to have this closer cooperation alongside the EU’s bilateral relations with the
countries in the region, developed through the European Neighbourhood Policy
(ENP).

This document discusses the changing situation
in the southern Neighbourhood, including developments related to the
implementation of the Roadmap for implementing EU policy
vis-à-vis Southern
Mediterranean Partners,[1] adopted in 2012. It focuses particularly on
developments resulting from the activities of regional organisations, such as
the Union for the
Mediterranean (UfM), and collaboration between the EU and the League of Arab States (LAS).

1. RELATIONS
WITH THE REGION

1.1. Regional developments

Southern
Mediterranean countries continued to develop their bilateral relations with the
EU to varying degrees, but the region remained unstable with the result of
impeding its integration. Parts of the region continued to be affected by
severe political, economic and humanitarian crises, armed conflict and a
significant deterioration in security.

The implementation
of reforms and regional integration proved difficult in such circumstances.
However, some countries made moderate progress towards transformation. Morocco, for example, kept firmly to its reform-oriented
course and Tunisia made important steps in its democratic transition.

EU
dialogues with Palestine[2] and with Israel continued
on a regular basis. However, any reform efforts were seriously undermined by the halting of peace talks, the military operation in the Gaza Strip in the summer, the continued Israeli occupation of the
West Bank, and the de facto lack of power of the Palestinian
Authority over Gaza. This prevented the development of closer partnerships with
the EU and paralysed Israeli and Arab cooperation. In
view of the civil war in Syria and the deterioration of the security situation
in Libya, it would be unrealistic to expect any progress on the EU agenda in
these two countries. The impact of these conflicts on neighbouring countries
must also be taken into account.

1.2. Multilateral cooperation

The EU and some of
the southern Mediterranean countries continued their mutual engagement in
regional activities, in particular through the Union for the Mediterranean
(UfM). EU cooperation with the Maghreb countries continued with limited
results, while there was encouraging progress in relations both with the League
of Arab States (LAS), and the Organisation for Islamic Cooperation (OIC).

1.2.1. The Union for the Mediterranean
(UfM)

The functioning and institutionalisation
of the UfM under its EU and Jordan co‑presidencies was consolidated in
2014. The UfM remained a unique forum of 43 partners,[3] offering
a joint platform for coordinating sectoral activities, organising ministerial
dialogues and promoting projects strengthening integration and economic growth
in the Euro-Mediterranean region.

Three UfM ministerial meetings took place
in 2014. These covered industrial cooperation, the digital economy, and the
environment and climate change. The UfM also held six Senior Official Meetings
(SOMs).

Of the 29 UfM projects which have been endorsed so far, 13 were approved in 2014. Eight[4] of these projects were already being implemented in 2014. Further
funding still needs to be secured for the other projects, meanwhile, and the
Secretary General is continuing to manage this process.

1.2.2. The 5+5
Dialogue/Western Mediterranean Forum[5]

The eleventh meeting
of foreign ministers and the second Economic and Business Forum took place in
Lisbon in May. Implementation of the Joint Communication
on closer cooperation and regional integration in the Maghreb continued.
The areas for cooperation are security, energy/water, academic mobility, business
networks and civil society.

1.2.3. The League of Arab States (LAS)

The EU and the
LAS held their third foreign affairs ministerial meeting in Athens in June
2014. The ministerial declaration covered cross-cutting issues (human rights,
tolerance and terrorism) and political topics (the Middle East Peace Process,
Syria and Libya). The establishment of an unprecedented strategic dialogue
marked a positive development in relations between the two organisations. The
aim of this dialogue was to introduce regular and institutionalised exchanges
on political and security issues, including crisis management, humanitarian
assistance, counter-terrorism, transnational organised crime and weapons of
mass destruction. The EU and LAS also undertook to reinforce dialogue and
co-operation between respective business and other civil society organisations.
Implementation of the EU-LAS joint work programme of cooperation continued with
activities in the fields of human rights, election observation and energy. Two
diplomatic training programmes were organised for the LAS under the EU regional
project on EU-Arab diplomacy.

1.2.4. The Organisation for Islamic Cooperation
(OIC)

High-level OIC-EU consultations took place in Brussels
in September in the first meeting between the two organisations since the new
OIC Secretary General, Iyad Madani of Saudi Arabia, took office in January. The
OIC and the EU agreed to establish a common basis for partnerships in different
areas of cooperation, including a dialogue between the Muslim world and the EU.
The OIC-EU partnership aims to improve cooperation in a wide range of areas,
from interreligious dialogue to economic and political matters.

In
November the OIC Independent Human Rights Commission Delegation made its first
visit to the EU institutions to discuss human rights issues.

This engagement with the OIC is potentially an effective way
to improve mutual understanding. Joint operational exchanges addressing
humanitarian crises in the region (including in Iraq and Syria) were set up.
New contacts were made and work was done to promote tolerance and
interreligious respect.

1.3. Cooperation on security and the fight against
terrorism

In
2014 the EU Counter-Terrorism Coordinator, Gilles de Kerchove, visited Algeria,
Egypt, Morocco and Tunisia. The EU agreed to develop a memorandum of
understanding on counter-terrorism with Algeria. The EU and Tunisia carried out
peer reviews of the security sector and border management in Tunisia.
Cooperation between the Arab Maghreb Union and the LAS was strengthened, with
Gilles de Kerchove meeting the LAS Secretary General in December.
Counter-terrorism was included in the EU-LAS cooperation work programme, and
relevant discussions began between legal advisers.
There has been significant focus on the possible spill-over effects of the
Syrian conflict and the associated foreign fighter phenomenon, and Gilles de
Kerchove and the European External Action Service (EEAS) carried out a joint
mission to Lebanon and Jordan in March 2014, further to which potential areas
for greater engagement were identified. The EU co- founded the establishment of
the International Institute for Justice and the Rule of Law (IIJ) in Malta. IIJ
became operational in June and provides training on counter-terrorism and
related transnational criminal activities or the EU Member States and the
southern Mediterranean partners.

The European Neighbourhood
Instrument (ENI) project with Arab countries on counter-terrorism was launched
in March 2014. It is being implemented by the UN Office on Drugs and Crime and
the UN Counter-Terrorism Committee Executive Directorate, with the
participation of the EU institutions and Member States. A EUR 11 million
counter-terrorism project on capacity-building for Middle Eastern and North
African countries was being prepared under the Instrument contributing to
Stability and Peace (IcSP). As part of the preparations, an EU scoping mission
to Egypt, Jordan and Lebanon took place in October and November.

Three EU Common Security and Defence Policy (CDSP) missions were being conducted in
the region:

EU Border Assistance
Mission (EUBAM) in Libya

This mission was launched in
2013
to support the Libyan authorities in developing border management and security. Following the deterioration of
the political and security situation in July, the mission was relocated to
Tunisia and is currently under review.

·
EU
Coordinating Office for Palestinian Police Support (EUPOL COPPS)

Based
in the West Bank, this EU police
mission assisted
the Palestinian Authority in setting up institutions in the areas of police and
criminal justice under Palestinian ownership and in accordance with the highest
international standards.

·
EUBAM
Rafah

Despite
the suspension of operations at the Rafah crossing point in 2007,
this EU
border assistance mission
remained ready to restart activities.

Negotiations continued on concluding a framework agreement with Morocco on its participation in CSDP
missions. There continued to be significant informal cooperation with other southern Neighbourhood partners.

The
EU continued to support reforms to increase transparency, accountability and
democratic governance in the security sector (SSR). The EU is particularly
involved in security sector reform activities in Tunisia and Jordan.

The
EU remained a firm supporter of the process to create a zone free of all
weapons of mass destruction and their means of delivery in the Middle East. Through
the EU-sponsored Non-Proliferation Consortium of Think-Tanks, a capacity-building workshop was organised
for junior and mid-career diplomats from LAS countries on security and
confidence-building measures, mediation and negotiation. The EU also provided financial support to
numerous countries from the region for nuclear security, including to Jordan
for capacity-building in this area.

A first phase of
cooperation with LAS in the area of crisis response and crisis
preparedness was completed in April. The Regional Crisis Centre, developed and
equipped with the EU support, provided the LAS Secretariat in Cairo with the
technical capacity to perform crisis-related early warning actions. 665 staff
from the LAS Secretariat and the Arab countries were trained.

The
southern Mediterranean partners continued cooperation related to civil
protection in the framework of the flagship
programme for Prevention
of, Preparedness for, and Response to Natural and Man-Made Disasters.

2. PROGRESS IN REGIONAL COOPERATION

2.1. Building sustainable democracy

2.1.1. Human rights
and democracy

Individual countries’ transition processes
towards democracy and the rule of law, and the respect of human rights and
fundamental freedoms continued to become increasingly divergent.

In the field of democracy and human rights, the following aspects of the
transition processes taking place in the region continued to present
challenges:

constitutional
and institutional reforms;
transitional
justice;
strengthening
the role of civil society and parliaments;
promoting
and protecting human rights and fundamental freedoms; and
security
issues.

The
new generation of ENP Action
Plans included detailed provisions on democracy, human rights and good
governance, setting concrete benchmarks for freedom of expression, of the
media, of association and assembly, and of religion and belief, and for the
rights of women and girls. In 2014,
the EU held
bilateral Sub‑committee meetings on human rights with Israel, Lebanon and
Morocco. A meeting with Algeria took place in February 2015. The human rights
dialogue with Egypt has been on hold since the events of 2011.

Concerning electoral and constitutional processes,
Egypt adopted a new Constitution in January 2014.
The EU took positive note of it, but regretted the absence of a fully inclusive
process and the lack of any attempt to address the polarisation of society.
Presidential elections were held in May 2014 and the EU stated that these were
technically administered in line with the law. Although
the overall electoral process was judged to be satisfactory on polling day
itself, the Election Observation Mission was critical of partial media
coverage, very limited space for dissent, and the political/legal context the
elections were held in.

Tunisia adopted its Constitution in January, and held
parliamentary elections in October and presidential elections in December. The
EU considered this a sign of democracy taking root.

President
Abdelaziz Bouteflika was elected President of Algeria in April, for a fourth
term. The elections were contested by the opposition.

In Palestine, following the conflict in the Gaza Strip
and the Israeli intervention, the general election scheduled to be held less
than six months after the Fatah–Hamas Gaza Agreement of April 2014 was
postponed indefinitely. General elections should have taken place in Lebanon,
but were postponed due to the Parliament’s failure to elect a new president.

The EU remained
deeply concerned about the deteriorating human rights situation in Syria and in
Iraq, where widespread and
systematic violations and abuses of human rights and international humanitarian
law were perpetrated. The EU condemned atrocities, killings and other crimes
and abuses committed by Da'esh and other terrorist groups in Syria and Iraq and
by the Assad regime in Syria. The EU called for a well-coordinated
implementation of UN Security Council Resolutions 2170 and 2178 addressing
this situation. The EU expressed its full support for UN Special Envoy Staffan
de Mistura and his work, as it had done for his predecessor Lakhdar Brahimi. It
reaffirmed its support for the independent international commission of inquiry
for Syria, set up by the UN Human Rights Council, and welcomed its eighth
report, published in August.

The
EU strongly condemned the human rights abuses and violations of international
humanitarian law committed in Libya and reiterated its commitment to continue
supporting Libya in the field of human rights.

The EU had concerns regarding the Egyptian proposals
for a new law on non‑governmental organisations (NGOs) and the amendment
to the Penal Code introducing more severe penalties for civil society
organisations (CSOs) found to be in receipt of foreign funding for activities
considered to be against the national interest or unity.

Gender equality, rights of women and girls, fight against all forms of discrimination and
elimination of violence against vulnerable groups
remained significant challenges across the
region. The situation
was aggravated in areas of armed conflict, where heavy psychological and
physical burdens had an additional impact on the most vulnerable groups, mainly
women and children. While
progress towards the adoption of new legislation on violence against women
continued in several countries (Egypt, Morocco and Tunisia), the issue was
still contested by groups opposing the inclusion of domestic violence in new
laws.

Justice
was a priority for countries
where reform strategies were adopted (Morocco and Tunisia), or were in the
process of being adopted (Palestine). The independence of the judiciary and the
correction of deficiencies in criminal procedures remained a challenge for the
region, particularly in Egypt. Of particular concern was the use of military
courts in Egypt and Lebanon. Some significant steps were taken in Morocco (new
legislation stated that civilians should not be tried by the military) and in
Tunisia (the new constitution restricted the jurisdiction of military courts).
The EU launched programmes to support governments in implementing these
reforms, including through the work of the Euro-Arab Judicial Training Network.
Several southern Mediterranean partner countries have not yet ratified the Rome
Statute of the International Criminal Court (ICC).

The
EU supported security sector reforms in the region. Limited progress was
made regarding these reforms in Egypt, Lebanon and Tunisia. Palestine showed
significant commitment, with the adoption of a new strategy in April.

Public pledges were made to strengthen the fight against
corruption. Projects under
the European Neighbourhood and Partnership Instrument (ENPI) and the European
Instrument for Democracy and Human Rights (EIDHR) also formed part of efforts
to tackle corruption. The European Commission granted EUR 6 million to the
European Endowment for Democracy (EED).

In 2014 the EED received more than 1 300 requests
for support and has provided support to nearly 130 democracy interest groups in
the 15 countries under its mandate, including in all southern Mediterranean
countries. In total, more than EUR 7 million
of support has been provided, half of which is dedicated to the Southern
Mediterranean.

The EU continued to
collaborate with the Organisation for Economic Cooperation and Development (OECD) through a EUR 12 million interregional programme under the SIGMA
initiative.[6]

In December, a
regional conference was organised in Algiers with all Supreme Audit
Institutions of the region. In parallel, SIGMA continued to work in the area of
public finance management with ministries (Jordan and Morocco) and training
institutes (Lebanon). SIGMA is also present in the area of civil service
improvement in Algeria, Egypt, Morocco and Tunisia. It provides assistance to
parliaments’ administrative services (Lebanon and Morocco) and for anti-corruption
and integrity measures.

The EU continued to provide support to the
Council of Europe (CoE) through
the EUR 4.8 million programme Strengthening democratic reform in the southern
Mediterranean. This
programme already delivered results in its main beneficiary countries, Tunisia
and Morocco. Its second phase - Towards Strengthened
Democratic Governance in the Southern Mediterranean
(South Programme II) - was
launched in December. It will contribute to reinforcing
human rights, rule of law and democracy in the southern Mediterranean. With the
EUR 7 million contribution (supported by additional EUR 0.325 million from the
CoE), the new programme will run until 2017, focusing on Morocco (Rabat already indicated its willingness to accede to
over 50 CoE Conventions),
Tunisia and Jordan, but also providing possibilities for engagement with other
countries in the region. During the first phase, it already allowed the EU to react to ad
hoc requests from Egypt and Libya to review a number of draft laws and to
support the electoral process.

2.1.2. A partnership with civil society and social partners

The EU welcomed trends towards a stronger role for civil society
organisations (CSOs) and their networks and for social partners, and aimed to
strengthen direct engagement with these parties.

However, as a result of political and security developments in the
region in the last two years, the conditions under which CSOs can operate
changed, and significant differences developed between individual countries
regarding the political and legal regulatory frameworks for CSOs and their
implementation. In some countries (particularly in Egypt) the space for CSOs to
operate shrank considerably, but in others, governments paid more attention to civil society (e.g. Tunisia).

In order to provide a strategic framework for efforts
at country level, the EU Delegations, in collaboration with the
Member States, began drafting EU country roadmaps for engagement with civil
society. The roadmaps are designed to improve the effectiveness,
predictability and visibility of EU actions in relation to civil society. At a regional
level, the EU began implementing the mechanisms for a structured
regional dialogue between civil society, authorities and the EU which will
complement and reinforce those already in place at national level. These
mechanisms, developed in consultation with civil society, will include an
online platform for virtual dialogue and information exchange, regional
thematic communities which meet physically and online to discuss policy-related
issues, and knowledge- and trust-building activities.

The EU maintained its support for the Anna Lindh Foundation (ALF) which promotes intercultural dialogue, exchange
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. One of the highlights of 2014 was the ALF’s 10th
anniversary celebration in Naples. The foundation’s 2012–14 three-year programme had a budget of EUR 15.35 million. A new EUR 7 million grant for the
period 2015-2017 was signed by the European Commission in December.

The EU
continued to support
civil society in the region through the Civil Society Facility. In 2014, around EUR 11 million of support was granted at
both regional and national level.

These actions complement other EU instruments
and programmes focusing on CSOs, such as the thematic programme on non-state
actors and local authorities and the European Instrument for Democracy
and Human Rights.

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

2.2.1. Economic trends[7]

In 2014, economic growth in the southern Mediterranean countries
remained subdued and continued to be far below pre-2011 levels. There were
signs, however, of a partial recovery and the growth trend began accelerating
moderately. Average GDP growth, excluding Syria and Libya, was projected
to recover to 2.8 % in 2014, slightly up from 2.5 % in 2013, although
well below the 2007-10 average of 5 %. Economic activity in Libya was
expected to contract sharply as a result of the renewal of armed conflict and
the breakdown of the political and security situation.

Regional fiscal positions continued to deteriorate (with
the average budget deficit expected to increase from 7.2 %[8] in 2013
to 7.4 % in 2014) and
the balance of payments situation remained weak. Subsidies continued to be one
of the largest common factors weighing on the fiscal deficits. The average
current account deficit[9] persisted at high levels (7.4 % of GDP). Foreign direct
investments remained below pre-2011 levels.

In addition to domestic and regional factors, economic recovery
continued to be hindered by weaker-than-expected external demand, notably from
the EU. The continuation of the armed conflict in Syria, the new
conflict around the emergence and expansion of Da'esh, the renewed conflict in
Libya, and the recent military confrontation in the Gaza Strip continued to
affect the economies of the region and to hinder political and economic reform.
Egypt, the
largest economy in the region, remained economically vulnerable. Libya’s
economic situation continued to worsen, with the fractured and unmanageable
political situation in the country disrupting its oil exports. There have also
been implications for the region, with neighbouring countries facing additional
influxes of refugees. Libya managed to avoid a fiscal crunch thanks to its
significant foreign reserves.

2.2.2. Job creation, support for small
and medium-sized enterprises (SMEs) and industrial cooperation

The regulatory environment for businesses in the Southern
Neighbourhood continued to slowly improve. However,
entrepreneurs across the region were still held back by weak protection for
investors and intellectual property rights, and restricted access to credit.
The EU continued to support the promotion of SMEs, job creation and industrial
cooperation.[10]

The southern
Mediterranean countries participated in a broad evaluation of SME policy. The
findings, presented at the UfM ministerial meeting on industrial cooperation in
February 2014[11], gave evidence of some progress, the southern neighbours having
stepped up their cooperation with Europe and opened themselves slightly more to
the global economy. But the assessment indicated also significant challenges
that the southern Mediterranean countries continue facing.[12] Sector specific
dialogues on textiles/clothing and creative industries were conducted as part
of the work programme on Euro-Mediterranean industrial cooperation.

2.2.3.
Lending from the European Investment Bank (EIB),
the European Bank for Reconstruction and Development (EBRD)
and other institutions

The
decision on the 2014-20 EIB external lending mandates came into force in July,
worth a total of EUR 27 billion plus an optional allocation of EUR 3 billion,
which could be activated at a mid-term review. The funding planned for the
southern Mediterranean region totalled EUR 9.6 billion. In 2014, the EIB signed
projects for more than EUR 1.2 billion[13] in the
region.

The
EBRD’s geographical mandate was extended to cover Egypt, Jordan, Morocco and
Tunisia. 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. Libya became a member of the EBRD in May. EBRD offices
were opened in Amman, Cairo, Casablanca and Tunis. By late August, 41 projects
with a total value of more than EUR 1.1 billion had been signed by the EBRD,[14]
the vast majority invested in private sector projects. In addition, trade
facilitation programme agreements were signed with Egyptian, Jordanian and
Moroccan banks for a total value of EUR 214 million.

In 2014 the European Commission provided a contribution of EUR
265.3 million to the Neighbourhood Investment Facility (NIF)
activities in the southern Mediterranean, developing and co-financing projects
in sectors, which otherwise would lack resources. In December the EU Foreign
Affairs Council adopted conclusions on the Southern Mediterranean Investment
Coordination Initiative (AMICI). It will, amongst others, promote better
co-ordination among donors in investment-related programmes in the region.

The southern Neighbourhood countries are in principle eligible for
Macro-financial assistance (MFA) from the EU. In
2014 the EU approved a EUR 300 million
MFA programme for Tunisia. The EU continued
to strengthen macroeconomic
dialogue with its southern neighbours. Dialogues were held with Algeria,
Israel, Jordan, Lebanon, Morocco, Palestine and Tunisia. The dialogue with
Egypt was postponed and
no economic dialogues were
held or are planned with Libya and Syria.

2.2.4. Trade

Political uncertainty in
the southern Mediterranean continued to affect trade flows. The total trade in goods between the EU and the
ten Southern Mediterranean ENP countries totalled EUR 188 billion in 2014, a
decrease of around 5% over 2013[15].

The main EU objectives with regard to the southern Mediterranean in
this area were to improve trade and investment relations and to increase the
integration of the partners in the EU single market, in particular through the
establishment of Deep and Comprehensive Free Trade Areas (DCFTAs) as
soon as necessary conditions are met. DCFTA negotiations with Morocco
progressed, with two negotiating rounds held in January and April 2014. The
preparatory process for the DCFTA negotiations with Tunisia advanced, including
consultations with civil society and between experts and concluding that there are
no technical obstacles to the launch of negotiations. Preparatory talks on a
DCFTA with Jordan also progressed and sustainability impact assessments on
possible DCFTAs with Egypt and Jordan were carried out. Ensuring the correct
implementation of the existing Free Trade Agreements (FTAs) established
by the Euro-Mediterranean Association Agreements remained an ongoing focus of
activity. Increasingly protectionist tendencies were identified in some parts
of the region — Algeria, Egypt[16] and Tunisia
implemented new trade-restrictive measures, while Morocco increasingly relied
on the trade in defence equipment.

The business
climate in the region remained challenging. The rankings awarded to
individual countries in the region in the World Bank’s Doing Business 2015
report varied widely, with Israel in 40th place and Algeria ranked 154th.
Lebanon and Morocco had improved their ranking since the previous year, but the
other countries had lost ground.

Preparations for the
Agreements on Conformity Assessment and Acceptance of Industrial Products (ACAAs)
were ongoing with all southern partners. No negotiations were launched in
2014.

Egypt, Israel and
Palestine ratified the Regional Convention on Pan-Euro Mediterranean (PEM)
Preferential Rules of Origin, and Lebanon signed the convention. Algeria,
Morocco and Tunisia still have to complete the ratification process. Good
progress was made in collecting relevant information and trade data for the
inclusion of the Southern Mediterranean countries in the Euro-Mediterranean Trade
and Investment Facilitation Mechanism database.

Southern
Mediterranean partners prepared action plans on enhanced sectoral
cooperation and the fight against piracy and counterfeit in the
field of intellectual property. With regard to regional integration among
the southern Mediterranean partners, a preferential trade agreement between
Algeria and Tunisia came into force in March, while Lebanon and Palestine
continued efforts to accede to the Agadir Agreement[17].

2.2.5. Social policy and employment

High unemployment rates, especially among young people and women,
remained one of the main regional problems, along with the very low
participation of women in the labour market. Poverty and social exclusion were
widespread and employment opportunities were often in the informal sector.

2.3. Migration
and mobility

The situation in the Mediterranean Sea
continued to be critical. The Mediterranean Sea remained the main irregular
migration route to Europe and the
number of fatal journeys continued increasing. According to the International Organisation for
Migration, in 2014 up to 3 072
migrants are believed to have died in the Mediterranean Sea, compared with an
estimate of around 700 in 2013.
Several initiatives, including search and rescue activities, proved to be
effective tools for avoiding tragedies.

At the same time the number of migrants
increased dramatically. In 2014 more than 277 000 migrants entered the EU irregularly, which represents an increase of 155% compared to 2013. The vast
majority of these irregular border crossings (170 816) were registered via
the Central Mediterranean
Route. Migrants have been
departing from the northern coast of Libya and more recently also of Egypt,
heading towards the south of Italy and Malta. 50 561 irregular migrants entered
the EU through the eastern Mediterranean route. It has evolved over time,
demonstrating the increasing importance of arrivals by sea from Turkey to
Italy, Greece and Cyprus, compared to the land border-crossings between Turkey
and its EU neighbours.

In response to the increased number of migrants, Frontex[18]
has extended the Joint Operation Triton in the
Central Mediterranean until the end of 2015 to continue supporting Italy at its
maritime borders and help save the lives of migrants stranded at sea.

In 2014 innovative
new surveys on the determinants and consequences of migration, including forced
migrants (refugees), were carried out in Jordan and Egypt, and are planned in
other countries in the region.

Cooperation on migration and mobility
between the EU and the southern Mediterranean partners was significantly
strengthened through policy dialogues on migration-related issues, including
the establishment of Mobility Partnerships with Tunisia and Jordan, and
EU financial and operational support for those countries. In December a
dialogue on migration, mobility and security was launched with Lebanon.
Exploratory talks with Egypt also took place.

The ENP partner countries in the southern Mediterranean are mostly
transit countries for irregular migrants, but increasingly also countries of
destination. A Ministerial conference of the Euro-African
Dialogue on Migration and Development (the 'Rabat Process') met in Rome in November. The adopted Rome
Declaration called for the reinforcement of cooperation on migratory issues
with the Western African partners. Likewise, an EU-Eastern African Ministerial
Conference was also organised in November in Rome and established the 'Khartoum
Process'. It set up a new platform with the eastern African partners with the
aim to address trafficking in human beings and smuggling of migrants.

The EU allocated EUR 15 million for the
implementation of the Mobility Partnership with Morocco. Both parties agreed to
more than 50 initiatives to be implemented under the Mobility Partnership
framework. The Mobility Partnership with Tunisia
was signed in March 2014. In addition, an EU-funded review of border management
made recommendations on reforms in a report approved by the Tunisian Ministry
of the Interior. The declaration of a Mobility
Partnership with Jordan was signed in October, with an annex listing the
actions to be implemented. In January 2015 negotiatons on a Readmission
Agreement with Morocco were relaunched along with the start of negotiations on
a Visa Facilitation Agreement. Negotiations for Visa Facilitation and
Readmission Agreements with Tunisia and Jordan are expected to be launched in
2015.

2.4. Sector cooperation

Participation by southern Mediterranean partners in the
Seventh Framework Programme for Research and Development (FP7) increased. New
regional initiatives were launched under the FP7 in 2014.

A
regional roadmap for cooperation was developed to enhance the participation of
the southern Mediterranean countries to 'Horizon 2020' programmes[19]. Launch of the
Horizon 2020 activities in the southern Mediterranean region was inaugurated by
a regional conference in Cairo.[20] In June Israel signed
the Association Agreement to the 'Horizon 2020' and can now participate in its
activities on the same footing as EU Member States. In January 2015 also
Tunisia submitted a formal request for the association to 'Horizon 2020'. Work was also undertaken by a number of EU Member States and
the southern Mediterranean countries on a Partnership on Research and
Innovation in the Mediterranean Area.

A memorandum of
understanding with the Israel Atomic Energy Commission was renewed. The
European Commission's Joint Research Centre (JRC) provided trainings in
the field of nuclear security for experts from Algeria and Morocco, for
instance for front-line-officers of both countries.

The
UfM Ministerial meeting on Digital Economy took place in September in
Brussels, addressing, amongst others, the use of open data and e-government,
dialogue between national telecoms regulators and scientific communities'
connectivity. Also the Euro-Mediterranean innovation agenda initiative was
launched.

The higher education sector continued to benefit from the pre-2014 Tempus and Erasmus
Mundus programmes (with a special focus on Syrian students). The new Erasmus+ first international call was launched in October. Researchers and
research organisations from the region participated in the new Marie
Skłodowska-Curie actions (MSCA). Some 2 500 young persons from the region
participated in the new Erasmus+ programme Youth part. Cooperation in the field of culture continued through the Med-Culture and Euromed Audiovisual programmes.

Two regional ministerial conferences helped strengthen
dialogue on energy between the EU and the southern
Mediterranean countries. A meeting on the security of gas supply took place in
Malta in July and a high-level conference on the construction of a
Euro-Mediterranean energy bridge was organised in Rome in November. All partner
countries were asked to intensify their cooperation in the energy sector. At the conference in Rome, the European Commission signed a
memorandum of understanding with the Euro-Mediterranean association of energy
regulators (MEDREG) and the Euro-Mediterranean association of electricity
transmission system operators (MEDTSO). The NIF provided funding for the renewable energy efficiency technical
assistance project supporting the Mediterranean solar plan, the energy
efficiency global loan for Lebanon, the second and third stages of the
Ouarzazate solar complex power plant, the strengthening of the high voltage
transmission network in Morocco, and energy financing incentives for SMEs in
Jordan and Morocco.

In the field of transport, the UfM EuroMed Transport Forum
worked on developing the Regional Action Plan for 2014–20. The
plan comprises actions on regulatory reform and the convergence process in all
transport sectors, with a view to establishing an integrated multimodal
Euro-Mediterranean transport network. The UfM organised in December a
high-level conference mobilising financial support for the trans-Mediterranean
transport network. The process of setting up the Euro-Mediterranean aviation area continued through the negotiation of comprehensive aviation
agreements with interested partners. Agreements were signed with Morocco,
Jordan and Israel, and negotiations were launched with Tunisia. Regional EuroMed projects continued to provide support in the
field of road, rail, urban transport and road safety.

In the maritime
sector, the European Maritime Safety Agency (EMSA) continued to implement the
SAFEMED[21] project. With regard to the Integrated Maritime Policy (IMP),
and sustainable Blue Economy, work progressed on initiatives, studies and concrete projects,
with the objective, amongst others, to develop integrated approaches to maritime affairs.

The southern Mediterranean partners continued efforts to
strengthen governance on environment issues. In May the UfM ministerial meeting on environment and
climate change took place in Athens. The ministers agreed on new commitments and
deliverables, including the mandate for the second phase of the 'Horizon 2020' Initiative for a
cleaner Mediterranean Sea[22] and
endorsed the Mediterranean strategy on education for sustainable development. The ministers confirmed their determination to work towards the
2015 Climate Agreement[23], while the countries were preparing the submission
of their Intended Nationally Determined Contributions (INDCs). The UfM climate change
expert group was established aiming
at promoting robust climate actions, amongst others, through exchanges of best
practices. The European
Commission continued to provide financial support to the water sector
and participated in the setup of a water strategy for the Mediterranean to be
endorsed in 2015 at a 5+5 ministerial meeting.

In the health, sanitary
and phytosanitary sectors, partners participated in the EU‑supported
Mediterranean programme for intervention epidemiology training. A ministerial
conference on health in the Mediterranean area, the theme of which was the
challenges of communicable diseases, was organised in October.

2014
saw the peak of the European Neighbourhood and Partnership Instrument’s
Mediterranean cross-border cooperation programme, with 95 projects being
selected with total funding of nearly EUR 200 million.

Further cooperation took place in the framework of the European
Neighbourhood Programme for Agriculture and Rural Development (ENPARD) with civil
society involvement. The
2014 bilateral ENPARD programmes with the southern partner countries received a
contribution of EUR 63 million.

The
EU continued its support of the General Fisheries Commission for the
Mediterranean (GFCM) in view of fisheries data collection and multiannual fisheries management plans.

2.5 Financial cooperation

In the period
2014–17, financial assistance under the European Neighbourhood
Instrument (ENI) will focus on a number of priority sectors, as outlined
in each country’s multiannual programming document and the equivalent documents
for regional cooperation and for initiatives open to all neighbourhood
partners.[24]

Support for the
implementation of agreements with the EU is allocated to bilateral and
multi-country assistance programmes. Particular attention is given to
strengthening the capacity of national authorities and other institutions, the
development of legislation in line with EU rules, and the implementation of EU
best practice, the requirements of the EU single market and EU standards for
mobility and border management.

The umbrella
programme is an incentive-based mechanism built into the ENI. It provides
funding to selected countries based on their ‘progress towards building deep
and sustainable democracy and the implementation of agreed reform objectives
contributing to the attainment of that goal’.[25] In 2014, four Southern Mediterranean partners benefited from the
umbrella programme: Tunisia (EUR 50 million), Morocco (EUR 20 million), Jordan
(EUR 15 million) and Lebanon (EUR 15 million) — receiving support totalling EUR
100 million.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[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, 15.5.2012.

The
roadmap comprises five fields of joint work: strengthening regional
political cooperation; strengthening the role of
human rights and cooperation with civil society, economic
cooperation, cooperation on migration and mobility issues and sector cooperation, and current political developments addressing the
dynamically changing situation in the region.

[2] This designation shall not be construed as recognition of a
State of Palestine and is without prejudice to the individual positions of the
Member States on this issue.

[3] EU Member States, southern Mediterranean
countries (Syria currently suspended), Balkan countries and Turkey.

[4] ‘Young women as
job creators’, ‘Governance & financing for the
Mediterranean water sector’, ‘LOGISMED training
activities’, ‘Skills for success-Amideast’, ‘Tafila wind farm’, ‘Clusters and
creative industries’, ‘Mobile financial services’ and ‘Euro Mediterranean
Development Centre for MSMESs-EMDC’.

[5] The Western Mediterranean Forum, commonly referred to
as the ‘5+5 Dialogue’, is an informal sub-regional forum comprising Algeria,
Libya, Mauritania, Morocco and Tunisia from the southern shores of the
Mediterranean and France, Italy, Malta, Portugal and Spain from the northern
shores.

[6] SIGMA (Support for Improvement in Governance and Management) is a
joint initiative of the EU and the OECD. Its main objective is to strengthen
the foundations for improved public governance, and thus to support
socioeconomic development by building the capacities of the public sector,
improving horizontal governance and improving the design and implementation of
public administration reforms.

[7] The
data used are based on estimates from the International Monetary Fund (IMF),
Eurostat and the European Commission.

[8] Simple average excluding Libya, Syria
and Palestine.

[9] Simple average excluding Libya and
Syria.

[10] Around EUR 850 million
of bilateral assistance has been devoted to these objectives since 2011.

[11]The
results of this joint evaluation by the European
Commission, the OECD, the European Training Foundation (ETF) and
the EIB were presented in the report ‘SME Policy Index. The Mediterranean Middle
East and North Africa 2014 Implementation of the Small Business Act for Europe’.

[12] Among them: poor incentives for
entrepreneurship, high entry barriers to new enterprises, restrictive market
access, rigid regulations, economic informality, and many others were listed.

[13]
Tunisia — EUR 450 million, Egypt — EUR 359 million, Morocco — EUR 156 million,
Israel — EUR 150 million, Lebanon — EUR 101 million, regional projects —
EUR 31 million and Jordan — EUR 2 million.

[14] Egypt — EUR 556 million, Morocco — EUR 202
million, Jordan — EUR 137 million, Tunisia — EUR 105 million and regional
projects — EUR 118 million.

[15] For
detailed information on trade flows, please refer to Section III.2 of the
Statistical Annex.

[16] Egypt suspended for one year its tariff elimination schedule for
cars.

[17] Free
trade agreement between Egypt, Jordan, Morocco and Tunisia.

[18] European Agency for the Management of Operational Cooperation at the
External Borders of the Member States of the European Union (Frontex)

[19] EU
research and innovation programme for the period 2014-20.

[20] Another 'Horizon 2020' conference was organised in Amman, during
which also the Support to Research and Technological Development (SRDT II)
programme was launched.

[21] The SafeMed Project (currently SAFEMED III — 2013–15) is the EU funded project that provides technical
advice and support to non-EU Mediterranean countries on maritime
safety/security and the prevention of pollution from ships.

[22] One
of the leading projects under this Initiative is the NIF-supported project on
the rehabilitation of the Lake Burullus in Egypt.

[23] The
2015 Climate Agreement will be the new
universal international climate change agreement, to be implemented as of 2020.

[24] http://eeas.europa.eu/enp/how-is-it-financed/index\_en.htm.

[25]Regulation (EU) No 232/2014 of the European
Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI) http://eeas.europa.eu/enp/pdf/enp-regulation-11032014\_en.pdf.

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