Source: EURLEX
Language: en
Format: md

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# 52012SC0121

**JOINT STAFF WORKING DOCUMENT Partnership for Democracy and Shared Prosperity: Report on activities in 2011 and Roadmap for future action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on a new European Neighbourhood Policy /\* SWD/2012/0121 final \*/**

  

1.           Introduction

The EU has reacted to the historic events
unfolding in the Southern Mediterranean rapidly and boldly. It has recast its
policy.  It has been at the forefront in supporting the efforts of those
working towards change and reform. The European External Action Service and the
European Commission have worked hand in hand to ensure that diplomatic efforts
and EU policy instruments are fully and coherently deployed to achieve the best
results on the basis of a 'more for more' approach.

This document reviews the first year of
implementation of the Partnership for Democracy and Shared Prosperity and sets
out the objectives to be pursued under the Partnership to the end of 2013 and
the expected achievements. As such it responds to the European Council request
of 1st March 2012 for 'a roadmap to guide the implementation of
EU policy vis à vis southern Mediterranean partners'. It also reports on
the regional and sub-regional co-operation issues that are connected with the
implementation of the partnership and the use of the additional resources
allocated last May to implement the partnership.

The new policy framework

On 8 March 2011, in their first joint Communication[1],
the High Representative for the Union for Foreign Affairs and Security Policy
and the Commission confirmed their support for the Southern Mediterranean
peoples’ drive towards greater respect for human rights, more democracy,
dignity and prosperity.  The EU  offered to  Southern Mediterranean partner
countries  “A partnership for democracy and shared prosperity” in the
context of the European Neighbourhood Policy. The partnership is founded on an
incentive-based approach supporting partners that are committed to reforms. It
focuses on three elements: democratic transformation; a partnership with people
and civil society, and sustainable and inclusive growth.

Two months later, with the joint Communication on "A
new response to a changing Neighbourhood"[2],
the High Representative and the Commission, spelt out more concretely the EU’s
new policy approach and proposed to allocate substantial additional financial
resources to support democratic transition.

Following these communications and as part
of the new policy approach, the EU has launched discussions with Morocco on a new Action Plan in the framework of its Advanced Status and has initiated talks
to upgrade relations with Tunisia. In response to Algeria’s interest in engaging with the European Neighbourhood Policy for the first time, the EU has
also started discussions on negotiating an EU – Algeria Action Plan.

Diplomatic efforts

Since the beginning of February 2011,
the Foreign Affairs Council and the European Council have held regular
discussions on the Arab Spring, confirming the EU's support for the democratic
transition and addressing country situations of particular concern. Through her
bilateral contacts, the High Representative/Vice President (HR/VP) supported
the efforts of EU Member States which are members of the United Nations
Security Council (UNSC)  to ensure that the Security Council takes prompt
action.

During the
crisis in Libya, the EU was at the forefront of the
international humanitarian response. The EU acted fast
to open an EU office in Benghazi and later on a Delegation in Tripoli.  The EU also sought to shape consensus at the international level
through HR/VP Declarations and Conclusions from the European Council and
Foreign Affairs Councils, and by participating in key international meetings
such as those of the International Contact Group on Libya. The HR/VP helped
bring together the divergent positions of key international partners as part of
the “Cairo Group” (comprising the African Union, the Arab League, the EU, the
Organisation of Islamic Cooperation and the UN).  The EU took restrictive
measures against the Libyan regime including measures against designated
persons and entities. Following UNSC resolutions 2009 and 2016, the EU
delisted certain entities, partially released frozen funds and lifted the
no-fly zone. Consultations are ongoing with the Libyan
authorities to ascertain their control of the remaining entities before
deciding whether to delist them.

In response to
the requests from the Libyan authorities and in full respect of the principle
of Libyan ownership, the EU has participated in the joint needs assessment
under the overall coordination of the UN. Without prejudice to the assessment
exercise in the key fields of border management, civil society and women's
rights, as well as communications and media, the EU is working to combine its
actions and instruments to provide further assistance to the new Libya
across a range of sectors, including on democratisation, rule of law,
institution-building, security sector reform, police training and the
re-launching of the economy.

With regard to Syria,
the EU has strongly condemned the systematic human
rights violations by the Syrian regime. The EU has called on President Assad to
step aside and allow a peaceful and democratic transition. Together with EU Member States at the UNSC, the EU spared no effort
to ensure that the international community speaks with one voice in full
support of the UN-League of Arab States Special Envoy Kofi Annan's plan. The
High Representative/Vice President and EEAS participated in the Friends of
Syria meetings. The High Representative/Vice President convened regularly the Crisis Platform bringing
together all relevant services in the EEAS and the Commission (sanctions,
humanitarian assistance, cooperation, liaison with EU Delegations and support
to the UN). In response to the crisis, the
EU suspended all types of cooperation. The EU has only maintained aid that
benefits the Syrian population, students, human rights defenders and the
opposition. The EU put forward a contribution of EUR 10 million in humanitarian
aid to Syria and affected neighbouring countries.  The EU has also
worked closely with Syria's neighbouring countries and has proposed
a Commission Special Measure to reserve 23 million of ENPI funds to support
specifically Syrian civil society as well as refugees and affected populations
in neighbour countries.

The EU imposed restrictive measures and
kept them under constant review. The EU Delegation in Damascus remained open to
support the Syrian people and to help coordinate the EU response to the
crisis.  The EU Delegation hosts several diplomats from Member States that
decided to suspend the activity of their own embassies.

To support effectively the democratic
transition, which in a number of countries is proving difficult, the EU  is
continuously adapting its diplomatic, technical and financial efforts. The
success of these efforts largely depends on a common approach bringing together
all EU member sates and other key international players.

The Special Representative

In July 2011, the Council appointed an EU
Special Representative (EUSR) for the Southern Mediterranean region.  Working
together with the Commission and the EEAS, the new EUSR has contributed to the
EU's response by enhancing the Union's effectiveness and visibility through
political dialogue and economic cooperation with all parties involved in the
process of democratic transformation in the region. To achieve these
objectives, the Task Force is designed to work together with our partners
bringing country-specific expertise and resources from the EU, the EU Member
States, the European Investment Bank, the European Bank for Reconstruction and
Development as well as other International Financial Institutions and the
private sector. The EU-Tunisia and EU-Jordan Task Forces have proven to be
effective instruments for democratic change, accelerating the delivery of
support, and financial assistance by involving a wide range of institutions. Acting
as a catalyst, the Task Force allows deepening the EU's relationship with
countries in a results-oriented, tailored and differentiated way.

This has
already brought tangible results to the region. The first Task Force took place
in Tunisia in September 2011 and announced a very substantial
international support package, covering both grants and loans, to which the
Commission contributed with EUR 400 million in grants for the period 2011-2013.
The second Task Force met in Jordan in February 2012 to encourage and
support the process of political and economic reforms. Political parties and
civil society organisations contributed to the Task Force. A substantial
international financial package was also announced on this occasion. The
Task Forces are not one-off exercises but a process that includes follow up
meetings at different levels to assess the progress and implementation. The
joint bodies established under the Association Agreement monitor the
implementation of the Task Force's recommendations. Following the Presidential
elections and transfer to civilian rule, an EU-Egypt Task Force will be
organized in 2012.

2.           A roadmap to guide the
implementation of EU policy vis à vis southern Mediterranean partners

              2.1     Building
Sustainable Democracy

2.1.1    Objective

Building
sustainable democracies where the right to vote is accompanied by:

1. rights to
exercise free speech, form associations and competing political parties,
receive impartial justice, security from accountable police and army forces,
access to a competent and non-corrupt civil service;

2. other civil
and human rights such as the freedom of thought, conscience and religion;

3. the
establishment of a direct and genuine partnership and cooperation with the
societies and their representatives.

2.1.2    Implementation
so far

Human Rights and Democracy

Throughout 2011 the EU
has provided assistance to countries engaged in democratic transition while
acknowledging that democratisation must be owned and driven by the people of
the countries concerned.

The
EU has provided support for elections. In Tunisia, it provided
technical assistance to help the authorities organise the Constituent Assembly
elections as well as early support to civil society including training of
domestic observers. The EU deployed an  Election Observation Mission during the
elections. In Libya, the EU is delivering substantial assistance
to emerging civil society organisations (EUR 11.4 million) and is helping the
authorities organise the elections foreseen for June 2012. Although Egypt
did not take up the EU’s offer of a fully-fledged Electoral Observation
Mission for parliamentary and presidential elections, the EU provided capacity
building to help the High Electoral Commission increase voters’ participation
and to help civil society organizations (CSOs) raise public awareness of the
elections (EUR 2 million). In addition, the EU helped train more than a
thousand domestic election monitors through CSOs. In Morocco, an
EU ad-hoc expert mission on electoral matters was deployed for two weeks in the
context of parliamentary elections. Algeria invited the EU to
observe legislative elections which are due to take place in May 2012. The
election observation mission was deployed on 31st March 2012.

Immediately
after the adoption of the joint Communications, the EU and its partner
countries carried out a screening exercise. The aim was to re-direct EUR 646
million budgeted for  partners’ national indicative programmes, towards
the new objectives set out in the two communications. This led to increased
support for actions in the area of democracy and institution building.

In
Egypt, the EU is now funding a EUR 2.l5 million programme under
the UN Office on Drugs and Crime, which will help Egypt set up effective
mechanisms to combat corruption and money laundering and create necessary
framework to implement the United Nations Convention against Corruption.

In
Tunisia, a “peer review” of the justice sector was conducted in
2011 to prepare for an EU programme to support reform of the judiciary.
Similarly, a “peer review” of the security sector is being discussed with the
Tunisian authorities. Support for elections will also continue for the next
electoral cycle. In addition, under the new Support for Partnership, Reforms
and Inclusive Growth (SPRING) programme, approved by the Commission in
September, EUR 10 million will be made available to support Tunisia’s reform priorities
and in particular the democratic transition and the rule of law.

In
the current transition context in Libya, it is crucial for the stability
in the country that basic public services can continue to be provided to the
population. At the request of the National Transitional Council, the EU set up
a public administration capacity-building facility (EUR 4.5 million) in order
to respond in a flexible manner to the country’s immediate needs for technical
assistance. The ongoing post-conflict needs assessment on border management,
media and civil society will identify what specific priority action must be
taken, and will propose a sequencing of this assistance according to the
urgency of the needs.

In
January 2012, the EU and the Council of Europe (CoE) signed an EUR 4.8
million joint programme which will give to partner countries the possibility to
tap into CoE expertise in a number of areas (e.g. constitutional reform,
elections, fight against corruption, judicial reform).

The proposed European Endowment for Democracy (EED) is designed to support emerging pro-democratic movements and actors,
civil society organisations, young leaders, independent media, journalists, and
other beneficiaries who have not been adequately supported by the EU in the
past. On 15 December 2011, the Member States the Commission and the High
Representative agreed, on the main principles for setting up the EED. It should
take the form of an autonomous International Trust Fund operating independently
under flexible and transparent rules. Initially, though not exclusively, the
EED will focus on the European Neighbourhood.

Full participation of women in society is key. The EU has been to
the fore on women’s rights. In September 2011 the HR/VP convened a high
level meeting in New York, attended among others by Hillary Clinton, Helen
Clark and Michele Bachelet. This meeting drew international attention to the
need to ensure that women play an active part in political processes worldwide,
including in the Southern Mediterranean. On 12 November, the HR/VP addressed
the Women’s Rights Forum in Libya bringing together representatives from
the region and announced the imminent launch of a new programme for women’s
empowerment, with capacity building and education as its central pillars. A regional
campaign on women’s political participation in Middle East and North Africa was launched in December.  The EU is also implementing concrete projects in
this field. It has launched schemes to help prevent violence against women, to
support women’s leadership and participation in elections, to ensure non
discriminatory access to the labour market and to eliminate legal
discrimination against women. In Tunisia, the EU is promoting gender
sensitive institutional and judicial reforms and women’s participation in
elections. In Egypt, awareness of women’s participation in political
life is raised through the “Spirit of Tahrir” cultural initiative. In Jordan, two “Village Business Incubators” promote rural women’s participation in the
labour market.

A partnership with
societies

To reinforce its support for civil
society, the Commission adopted the Civil Society Facility[3]
on 20 September. This will strengthen civil society’s ability to promote and
monitor reform, to carry out advocacy work and to increase public
accountability. The funding dedicated to the EU southern neighbourhood was EUR
12 million in 2011. Similar amounts are foreseen for 2012 and 2013.

The
EU has renewed and increased its support for the Anna Lindh Foundation
in its efforts to mobilise and revitalise civil society in the region. A new
programme, to run concurrently and to be incorporated in its current mandate,
will start in 2012 and target countries in the Southern Mediterranean. Using
the ‘European Neighbourhood Journalism Network' under the EUROMED
Regional Information and Communication Programme, a series of workshops have
been organised to assess journalists’ needs for training, following the Arab
Spring.

The
EU has been supporting the development of youth policies in the Southern
Neighbourhood  for many years through the regional programme EUROMED Youth,
now in its phase IV. In response to the Arab
Spring, the original budget of EUR 5 million of this programme has been
increased by EUR 6 millions. The EU has also strengthened its support to education
policies and exchanges, in particular through the ERASMUS and TEMPUS
programmes.

The dialogue between social partners from Southern Mediterranean countries with their counterparts from EU member states on
employment and social issues continued.

2.1.3 Expected achievements by end 2013

Elections in the regions
will have been conducted in line with international standards;
Respect for human rights and
good governance standard will have improved;
New generation Action Plans 
including detailed provisions on democracy, human rights and good
governance will have been agreed with most partner countries;
Implementation of such
Action Plans will have started;
Algeria and Libya will fully participate in the European
Neighbourhood Policy;

2.1.4 EU support

Planned interventions for the period 2012-13 in this area include:

Governance (improvement and modernisation
of budget and administration transparency (EUR 75 million)
and Justice sector (EUR 50 million) in Morocco;
Media and Civil Society (EUR 10 million),
Justice (EUR 30 million) and Security (EUR 5 million) in Jordan;
Social Justice (EUR 12 million) and
Security (EUR 8 million) in Lebanon;
Governance and State building (EUR 20.5
million) in the occupied Palestinian territory (oPt);
Justice (EUR 20 million), Constituent
Assembly (EUR 2 million) and Security Reform (EUR 53 million) in Tunisia.
Civil Society Facility (CSF) regular
calls for proposals that will provide funding for projects to support
capacity building of NGOs in public advocacy;
The EU funded programme with the Council
of Europe (CoE), with a EUR 4.8 million grant support from the EU, that
will contribute to  reinforce democracy and respect for the rule of law;
The new regional programme
"Political and economic empowerment of women in Southern
Mediterranean region" currently under preparation, that will promote
access and effective participation of marginalised women in economic and
public life;
The Anna Lindh Foundation new programme
that will improve the capacity of civil societies and NGOs in the South Mediterranean region to actively participate in democratic transition and process of
reform;
Building on the regional networks
established by the regional programmes, such as EUROMED Police III,
Justice III, Migration III and Communication, a process of sharing
experience at regional level on issues relevant for the democratic
transition.

2.2       Inclusive economic
Development, Trade and Investment

2.2.1    Objectives

·
Contribute to providing growth and jobs and
addressing the economic expectations of the populations, and notably of the
youth;

·
Support the promotion of small and medium
enterprises, job creation and training;

·
Increase trade including through the
establishment of the Deep and Comprehensive Free Trade Areas between the EU and
the partner countries;

·
Facilitate European investments in the region.

2.2.2    Implementation
so far:

Job creation and
support for SMEs

The
refocusing of EU assistance following a screening exercise led to a number of
new activities to promote job creation and SME development.

In Jordan, the EU
front-loaded EUR 40 million from 2012/2013 envelope for new programmes to
support public finance management and to help modernising the service sector.
In Tunisia, the EU prepared a new (EUR 20 million) programme for
impoverished regions. A project implemented by the European
Training Foundation (ETF) was launched in March 2012 in the Tunisian region of
Medenine, aimed at fostering youth employability and adapting education and
training to the needs of the local labour market.
Increased funding was provided to the programme "Appui à la Relance"
to help re-launch the Tunisian economy (EUR 100 million).

In
Egypt, a new EUR 22 million programme was drawn up to support
agricultural SMEs. In Algeria, a new programme for youth
employment (EUR 23.5 million) was prepared by re-allocating funds originally
earmarked for the transport sector.

At regional level, the EU developed
industrial cooperation with Mediterranean partners through the implementation
of the priority actions outlined at the 8th Euro-Med ministerial
meeting in May 2011 in Malta. To promote SMEs and entrepreneurship, training
was provided in various areas of the Euro-Mediterranean Charter for Enterprise, and a survey was conducted on sustainable enterprise development. All countries
jointly established indicators to assess whether entrepreneurship was being
promoted in third-level education. Tunisia joined the
Enterprise Europe Network and Morocco applied to join the
Network.

Follow-up to the Euro-Mediterranean
framework on employment, employability and decent work continued through policy
dialogue meetings and cooperation among social partners.

Lending from EIB,
EBRD and other European Finance institutions

For many years,
the EIB has been one of the biggest providers of funds to the Mediterranean
region and has developed its activities under the Facility for
Euro-Mediterranean Investment and Partnership (FEMIP). A revision of the EIB
mandate in 2011 added a further EUR 1 billion to the EUR 8.7 billion earmarked
for the Mediterranean countries in 2007-2013. This enabled the EIB to sustain
its activity in the region whilst focusing on countries undertaking political
reform.

Following
agreement by the EBRD Governors in September 2011, the mandate of the EBRD is
being extended to allow it to fund activities in Egypt, Jordan, Morocco and Tunisia. The Commission submitted a proposal to the Council and the
EP in December 2011 ensuring that the EU supports this extension. The Board of
Directors formally agreed for EBRD operations to begin in Tunisia through the use of Cooperation Funds on 17 January. A temporary office was opened in Tunis on 1 March, in which a senior banker is currently working.

As
a "Quick-Start" mechanism, the EBRD has agreed to mobilise up to EUR
100 million of financial assistance, including a EUR 20 million contribution
from the EU Neighbourhood Investment Facility (NIF) for technical assistance to
improve the beneficiaries’ absorption and project management capacity. In 2011
the NIF provided a first EUR 5 million grant contribution to EBRD for SME
support in the region. An additional EUR 15 million contribution has been
agreed at the beginning of 2012 to allow the EBRD to prepare several investment
operations mainly targeting energy efficiency, transport and municipal
infrastructure initially in Egypt, Morocco and Tunisia. Local private sector development is one of the key priorities for EIB and EBRD
operations, alongside infrastructure and climate change mitigation and
adaptation.

A
new EUR 20 million SME investment scheme, the SANAD fund, was also
launched in August. It was funded by the EU and Kreditanstalt für Wiederaufbau
(KfW), with an EU contribution of EUR 10 million from the NIF. This investment
fund aims at promoting the creation and development of SMEs in the region.

The
NIF has continued to develop its activities. In 2011, it made a contribution of
EUR 91 million. These resources have helped to leverage funds from other
international and European financial institutions at a ratio of 1 to 15.

The two Task Forces established by the EU with Jordan and Tunisia have helped promote co-ordination between the EU, its Member States, other interested donors, the private sector and European and international finance
institutions such as the EIB and the EBRD.  A series of concrete measures to
help restore economic growth, support reforms and ease the transition to more
democratic systems of government were agreed during the Task Forces meetings.

Macro-economic
Dialogues

Against a background of economic and financial difficulties in the
Euro area and in the Arab countries, macro-economic dialogues proved to
be particularly useful for the EU and the concerned partner country, allowing a
frank and in-depth exchange of views on the economic challenges. At the same
time, the Commission continues to monitor the
macroeconomic and financial conditions of its partner countries and the EU
stands ready to supply macro financial assistance provided that there is an IMF
arrangement in place and a demonstrated need for complementary balance-of
payments assistance.

Trade

In October, following the invitation by the June Foreign Affairs
Council, the Commission asked the Council for a negotiating mandate to begin
negotiations for Deep and Comprehensive Free Trade Areas (DCFTAs) with Egypt,
Jordan, Morocco and Tunisia. The Council adopted the negotiating
directives on 14 December. The main objective of these future negotiations will
be to facilitate the progressive integration of the economies of these partners
into the EU single market. The future agreements will include regulatory
convergence in areas such as competition, intellectual property rights, public
procurement, trade facilitation and customs procedures. This will have an
impact not only on trade and investment, but also, more generally, on economic
governance and on the business climate. DCFTAs will also include provisions on
investment protection and on further liberalisation as appropriate. Each agreement will be tailored to the needs and specificities of
our partners. The first
Commission mission to initiate the preparatory process took place on 14th
March.

Preparations
for these negotiations will be very important. A thorough scoping exercise
prior to negotiations will help assessing the level of ambition and capacity of
each of the partners on implementing future commitments under the DCFTAs, in
particular on regulatory approximation.

The Agreements on
conformity assessment and acceptance of industrial products (ACAAs) are
instruments for opening up markets to industrial products. They involve
bringing partner countries fully into line with the EU’s technical regulations,
standards and quality framework for industrial products. The EU’s Mediterranean
neighbours are, each at their own speed, preparing to negotiate the agreement
(or, in the case of Israel, to finalise it). Tunisia's progress in these
preparations will allow negotiations with this country to start in 2012 for two
sectors (electrical products and construction materials).

Negotiations on a Convention on preferential
rules of origin for the Pan-Euro-Mediterranean region were concluded in
2009. The Convention consolidates all existing bilateral protocols in one legal
document, facilitating the subsequent revision of the pan-Euro-Mediterranean rules
of origin. It was opened for signature in June 2011 and
signed, but not yet ratified, by Jordan in July 2011 and by Morocco in April 2012. The other Southern Mediterranean partners should accelerate the completion of their internal
procedures for the signature and the ratification.

The new agreement with Morocco on further liberalisation
of agricultural, processed agricultural and fishery products tariffs,
revising the provisions of the Association Agreement, was approved by the
European Parliament in February 2012. It offers Morocco and the
EU significant preferential market access for agricultural and fisheries
products. The agreement with Morocco will enter
into force on 1 July 2012. The Agricultural Trade
Agreement with the Palestinian Authority was signed in April 2011 and entered
into force on 1 January 2012. It offers a unilateral liberalisation of trade in
agricultural products, processed agricultural products, and fish and fisheries
products. Negotiations on an Agricultural Trade Agreement deepening
liberalisation in the agricultural, processed agricultural and fishery sectors with
Tunisia, which had been on hold since 2010, resumed in February 2012.

Negotiations on
liberalisation of trade in services and establishment are ongoing with Egypt, Israel, Morocco and Tunisia and preparations for negotiations with Jordan were concluded in 2011. The EU made an effort to give new impetus to the
process in 2011. Negotiations with Morocco were re-launched at political
level in June following a meeting between the EU Commissioner for Trade and the
Moroccan Minister for External Trade. Three negotiating rounds took place in
2011.

Foreign
investment

Security of
investment is essential for attracting investors to the region. The EU has
actively contributed to the working group on  Investment Security in the
Mediterranean Region (ISMED), bringing together participants from the
Commission, the EIB, the Multilateral Investment Guarantee Agency (MIGA), the
Organisation for Economic Co-operation and Development (OECD) and the Union for
the Mediterranean (UfM). The EU has decided to support two of the
recommendations made in the final report.

First, the
Commission will support the 'ISMED Support Working Programme', a pilot
initiative of 18 month permitting to assess the institutional and sectoral
investment framework of countries wishing to put into motion given
infrastructure projects. Second, the Commission will finance the 'ISMED NIF
cost sharing mechanism' which aims at lowering insurance and guarantee premium
costs.

In order to
implement the Deauville Partnership, during the G8 Finance Ministers
Meeting in Marseille in September, ten international financial institutions[4]
agreed to set-up a new coordination platform and pledged of USD 38 billion
for 2011-2013 (equivalent to EUR 29.5 billion) to support reform in Egypt,
Morocco and Tunisia This is in addition to the resources available
already from the IMF (approximately USD 35 billion equivalent to EUR 27
billion).

2.2.3 Expected achievements by end 2013

General

· New generation Action Plans will include substantial elements on
improving investment climate and regulatory convergence with EU acquis.

Trade

· Progress will have been made in DCFTA negotiations with Jordan, Morocco and Tunisia. DCFTA negotiations may have been launched with Egypt and other interested partners.

· Progress made in DCFTA negotiations at bilateral level would enable
to draw lessons at regional level, notably on the removal of non-tariff
barriers and liberalisation of trade in services. This could also provide for a
new push for south-south trade integration in light of EU support to the Agadir
Agreement and, possibly renewed Maghreb economic integration.

· Negotiations on trade in services and in investments will be
completed with Morocco in 2012 and finalised or advanced with Egypt, Israel, Jordan and Tunisia.

· Negotiations on an Agreement on conformity assessment and
acceptance of industrial products (ACAA) will have been launched for certain
products with Tunisia and preparations will be well advanced with Algeria,
Egypt, Jordan, Lebanon, Morocco and , the Palestinian Authority.

· Agreements on agricultural and fisheries products with Morocco and oPt will be implemented and negotiations on a similar agreement with Tunisia will be well advanced. Further discussions on trade in agricultural
and fisheries products with the Southern Mediterranean partners could take
place in the framework of the DCFTA negotiations.

· The regional Convention on Pan-Euro-Mediterranean preferential rules
of origin will be signed and ratified by a majority of Contacting Parties.
Significant progress in negotiations towards the final compromise on the
revision of pan-Euro-Mediterranean rules of origin will be achieved.

Job Creation

· The implementation of a framework of actions on employment,
employability and decent work will be discussed and further developed by the
Minsters at Euro-Mediterranean level (a Ministerial
Conference on Employment and Labour could take place in
coming months). Euro-Mediterranean
trade unions and employers organisations will contribute to the process through
the Euro-Mediterranean Social Dialogue Forum (the next meeting of the Forum is
foreseen for 2012).

· A Mediterranean Initiative for Jobs under the aegis of the Union for
the Mediterranean, will be launched in 2013.

SME Development and investment promotion

· The business climate will become more conducive to SME development.

· At regional level, the Euro-Mediterranean Trade and Investment
Facilitation mechanism will provide economic operators with information and
enhancing transparency.

· Increased lending capacity for EIB, EBRD and other European Finance
institutions will allow SMEs to further develop and create new jobs.

· The Commission will have prepared a new proposal granting EU
guarantee to the EIB for projects outside the Union over the period of 2014 –
2020, which would provide further support to address the needs of the Southern Mediterranean partners in their democratic transition process.

· EBRD will have extended its mandate to Egypt, Jordan, Morocco and Tunisia (possibly followed by other partners). EBRD
lending activity in the region would have come close to EUR 2.5 billion.

· An “Investment Security Scheme for the Mediterranean” (ISMED) aimed
at enhancing the investment environment in the region will have been
implemented.

· The first assessments by OECD of the institutional and sector
investment framework in relation with several infrastructure projects in the
region will be delivered within the frame of the joint Commission-OECD ISMED
Support Programme.

· A 2013-2014 work programme on Euro-Mediterranean industrial
cooperation will have been adopted, possibly by holding Regional Ministerial
Meetings on Industry and Tourism.

· The implementation of the Euro-Mediterranean Charter for Enterprise will be stimulated by continued work at technical level. The Charter will be
gradually changed into a Small Business Act to promote SMEs development.

· South Mediterranean partners will be invited to
participate in EU networks and activities relating to innovation, SME,
sustainable development, and key sectors such as tourism, textiles and
clothing.

2.2.4 EU support

Planned interventions for the period 2012-13 in this area include:

· A new EU funded regional intervention pursuing the objective set by
the joint Communications for the EU to support the promotion of small and
medium enterprises will be launched by mid-2013.

· Specific support will be provided at country (Egypt, Tunisia) and regional level to help partners in the establishment of
comprehensive employment strategies, fostering vocational education and
training, or supporting women’s economic and social empowerment.

· Cooperation at regional level with the aim at networking of experts,
for example among public employment services will be initiated.

· Industrial cooperation at the regional level will be further
developed and supported by bilateral projects at country level   in response to
each country’s specific needs.

2.3     Mobility

2.3.1
Objective

Opening
Comprehensive Dialogues leading to Mobility Partnerships aimed at strengthening
cooperation on migration and mobility in a secure environment, reinforcing
local Schengen cooperation, and making full use of the possibilities offered by
the EU Visa Code.

2.3.2
Implementation so far

A dialogue on migration, mobility and
security was offered to the Southern Mediterranean countries, with a priority
being given to Egypt, Morocco and Tunisia (and potentially
Jordan and Libya once the situation allows).

These dialogues should lead towards the
conclusion of a mobility partnership with each country so as to develop a
tailor-made, comprehensive and balanced cooperation in the managing regular and
irregular migration, readmission, visas, international protection, borders and
security matters. Dialogues with Morocco and Tunisia were launched in October 2011. Egypt indicated in September that for the time
being - it was declining the offer. Jordan indicated its strong interest
for initiating a dialogue on migration, mobility and security with the EU.

After some delays due to the political
transition following the constitutional elections, Tunisia outlined its
priorities for the partnership in January 2012 and an additional round of talks
under the dialogue took place in March 2012. An information seminar for civil
servants and a meeting with representatives of civil society were held in Morocco in December 2011.

Meanwhile, on the basis of existing EU
legislation, it has been possible to improve the legal certainty and
transparency of procedures for the mobility of the citizens of Southern Mediterranean countries. Since April 2011, on the basis of the Visa Code, Schengen
States are obliged to inform applicants in writing why their visa applications
have been refused and to establish procedures whereby applicants can appeal against
such refusals.

Progress has also been made in cooperation
between Schengen States and some third countries notably on progressively
harmonising the lists of supporting documents needed for Schengen visa
applications to ensure that visa applicants are given equal treatment. Tangible
results have been achieved in Egypt, where such a harmonised list now
exists. Similar efforts are under way in the other countries.

2.3.3 Expected achievements by end 2013

Mobility Partnerships will have been
agreed with Morocco and Tunisia in 2012.
Dialogues will have been launched with
other countries of the region, such as Algeria, Egypt, Jordan or Libya.
The possibilities offered under the EU
Visa Code (such as the issuance of multiple-entry visas and fee waived for
certain categories) would have been exploited leading to easier mobility
for business people, representatives of civil society organisations,
students and youth.

2.3.4 EU support

At regional level, a new project, EUROMED
Migration III with budget of EUR 5 million, aiming at the promotion of
legal migration channels and workers' mobility, has been launched in early
2012.

2.4       Sector Cooperation

2.4.1 Objective

Stimulate sector
cooperation putting particular emphasis on:

·
the alignment in the transport, energy and
environment sectors as well as the development of a Common Knowledge and
Innovation Space and enhancing cooperation on information and communication
technologies;

·
the increase in student and academic staff
mobility through participation in EU education programmes;

·
joining efforts on climate change and
environment and the gradual development towards an EU – Southern Mediterranean
Energy Community;

·
an enhanced transport cooperation;

·
the launch of an Agricultural Development
Support Programme;

·
fostering people-to-people contacts, increasing
learning mobility supporting the education and training sector in partner
countries;

·
progressive participation in EU programmes and
agencies open to third countries.

2.4.2 Implementation
so far

              Participation of partner
countries in EU programmes and agencies

Partner
countries were invited to express their priorities and interests in taking part
in the work of EU agencies and programmes. On this basis, a first indicative
list of priority EU programmes open to partners’ participation was established.
Following Protocols enabling such participation in the EU programmes previously
signed with Israel and Morocco, negotiations for a Protocol with Jordan were also launched. Co-operation between EU agencies and some
Mediterranean countries continued, notably in the area of aviation safety and
food safety. The EU is preparing an assistance project to support preparatory
measures that will facilitate and stimulate cooperation between EU agencies and
Mediterranean countries. Possible co-funding of participation in EU programmes
can be granted under the national allocations of the ENPI.

Common Knowledge and Innovation
Space, Information and Communication Technology, Culture and Youth

In the field of higher education, an
additional budgetary allocation was made available in 2011. This allowed the
financing of 743 additional Erasmus Mundus mobility grants for academic
exchanges (students and academics) with Southern Mediterranean countries[5]
for the 2011/12 academic year.

In school education,
the Commission plans to extend the eTwinning programme to include
schools in Egypt and Tunisia. This programme allows schools to
work on joint projects via the Internet and has a strong professional
development component for teachers. A technical meeting with Egyptian and
Tunisian national education authorities took place in Brussels at the end of
2011. Negotiations on implementing the pilot phase are ongoing.

In relation to youth,
financing for the current Phase IV of the EUROMED Youth programme has been more
than doubled by an additional contribution of EUR 6 million. The Commission in
cooperation with the CoE also seeks to support the capacity building for youth
organisations in Southern Mediterranean countries. In July 2012, the Commission
plans to launch a policy dialogue on higher education and youth policies with
government officials, universities, youth organisations and civil society from South Mediterranean countries.

In the field of vocational education and
training, an additional budget allocation for the activities of the European
training Foundation in the Southern Mediterranean region will allow the ETF to
expand its work programme in 2012 and 2013.

The EU aims to
develop a "Common Knowledge and Innovation Space" with
the Mediterranean partner countries. This concept brings together
policy dialogue, national and regional capacity-building, cooperation in
research and innovation and increased mobility opportunities for students,
researchers and academics. It means closer cooperation on research, better
coordination and stronger networking and will require increased efforts from
all partner countries in building research capacity and increasing
collaboration with EU researchers and research organisations. An important step
towards reaching this objective is the current active participation of partner
countries in the EU 7th Framework Programme for Research and Technological
Development (FP 7). FP 7 is fully open for participation of researchers and
research organisations in the partner countries. However increased efforts
are needed in all partner countries to promote actively the opportunities
available to their research communities. Specific support in this regard has
been provided through the FP 7 International Cooperation programme, which has
offered opportunities to build research capacities and to promote Science and
Technology relations and the coordination of national research activities and
the international cooperation activities of the EU member states with the
region. Current projects include: the Mediterranean Innovation and Research
coordination Action (MIRA), and several European Research Area wide (ERAWIDE)
projects. In early 2012, the EU and Algeria signed an agreement on
cooperation in the field of scientific research and technology.

The Arab Spring was made possible, notably
by the use of electronic communications technologies. Ensuring
the security, stability and resilience of the Internet and of other electronic
communication technologies is a fundamental building block in modern democracy.
During the Arab Spring, it was clear that Information and Communications Technology (ICT), and in particular social networks, was a vital tool enabling
people to organise action, mobilises support and exercise their rights. Although some significant regulatory reforms have been undertaken,
the regulatory environment in many of the southern Mediterranean countries is
not yet sufficiently developed to exploit the full growth and productivity
potential of ICT.

EU cooperation
on ICT with Mediterranean countries has been built on three pillars. The first
pillar includes action to improve the regulatory environment. This involves
bilateral dialogues, technical assistance, twinning between regulators and
coordination via the regional network of regulators (EMERG) which held a series
of meetings in 2011. Under the second pillar, the EU supports action to
strengthen the region’s e-infrastructure and to improve the connectivity of its
high-speed networks for research and education and their links to GÉANT. As a
part of this effort, a third phase of the EUMEDCONNECT network was launched in
2011. In addition, several EU projects aim to improve coordination and
interoperation between the e-Infrastructures in Europe and in the Southern Mediterranean. These projects include EUMED Grid Support and the CHAIN project for
connecting Southern Mediterranean countries to the European Grid. Under the
third pillar, the EU supports and promotes the active and democratic use of ICT
and the Internet (content services, safer internet, digital heritage, no
disconnection, free media, etc).

On 12 December
2011, the Commission announced the "No Disconnect Strategy", designed
to support the role of ICT in ensuring fundamental rights. The Strategy has
four main strands: (i) it supports the development of technological tools that
would shield people living in non-democratic regimes from surveillance and help
them bypass restrictions to their freedom to communicate; (ii) it seeks to
educate activists and to promote awareness of the potential benefits but also
risks of using ICT; (iii) it aims to provide high quality intelligence on the
developments of Internet freedom in non-democratic regimes; (iv) it aims to
strengthen cooperation between all players actors in the field. To implement
the Strategy, the EU will: (i) make "Internet survival packs"
available to activists. These are easy-to-use packages which help people to
bypass censorship and to counter surveillance; (ii) encourage EU companies to
regulate their own behaviour so that the EU stops selling ICT tools of
repression to authoritarian regimes; (iii) provide hosting support to help
prohibited content reach its audience – via blogs and videos for example.

Energy and transport

The EU and Mediterranean partners intensified bilateral and regional
cooperation, notably in support to the Mediterranean Solar Plan. The EU
continued exploring the possibility to establish energy partnerships as
a first step towards regional electricity and renewable energy market integration,
with the long-term perspective of establishing an EU-Southern Mediterranean
Energy Community.

In addition to regular bilateral dialogues with Mediterranean
partners, particularly in energy subcommittees, the EU and Algeria
strengthened their dialogue through a high level meeting on renewable energy
and energy efficiency (December 2011) and Algeria’s ad-hoc participation to the
EU’s Gas supply group (June 2011). Common EU-Mediterranean energy security was
enhanced through the completion of MEDGAZ gas pipeline between Spain and Algeria. Other ongoing and planned network projects, including a new future Tunisia-Italy
electricity interconnection, as well as recent gas discoveries offshore in Israel, have a potential to strengthen EU-Mediterranean energy security.

Complementing
bilateral energy projects, several regional projects are underway that support
Mediterranean partners to enhance common energy security including through
network development; to advance market integration and reinforce regulators,
and to increase energy efficiency and the use of renewable energy. These
include: paving the way for the Mediterranean Solar Plan (EUR 4.5 million), support to the Mediterranean Energy Regulators
Association (EUR 1.1 million); support for the Enhanced Integration
and the Improved Security of the Euro-Mediterranean Energy Market (EUR 4.3 million);  and  Energy Efficiency in the Construction Sector (EUR 5 million).

Partner countries continued to participate
very actively in the various regional transport programmes and thematic
working groups (SAFEMED, MEDAMoS, EUROMED Aviation); they also stayed involved
in the establishment of the future Trans-Mediterranean Transport Network. The
Euro-Mediterranean Transport Working Groups met regularly and agreed on further
steps to implement both the regulatory reform and related actions of
the Regional Transport Action Plan for the Mediterranean for the period
2007-2013 in respect of transport network planning. On aviation, discussions
have been re-launched with Lebanon and Tunisia for comprehensive Aviation Agreements and a Mediterranean Aviation Safety Cell
has been set at the European Aviation Safety Agency for those partners willing
to fully adhere to the EU safety acquis. The Commission has proposed to
extend the mandate of the European Maritime Safety Agency to provide assistance
to the neighbouring countries. Partners confirmed their commitment to SAFEMED
II, a regional programme for maritime safety and security, prevention of
pollution from ships and marine environment. Discussions are ongoing to obtain
EIB support for the railway project in Tunisia and the railway
project in Jordan identified at the recent G20 Cannes
meeting.

Regarding maritime policy, the EU is
developing four initiatives with Mediterranean partners focusing on awareness,
capacity building and operational cooperation. In 2011, the EU implemented a
technical assistance project on Integrated Maritime Policy (IMP) with Algeria,
Egypt, Israel, Jordan, Lebanon Morocco, oPt,
Syria (latter suspended) and Tunisia, , , , to help them build
their capacity to articulate integrated approaches towards maritime affairs. In
addition, the EU launched together with the EIB and the International Maritime
Organisation a tripartite initiative on innovative mechanisms for private
investments in the maritime sectors of ENP partners, as well as on maritime
training, working conditions, safety and surveillance. The European Fisheries
Control Agency (EFCA) and the General Fisheries Commission for the
Mediterranean (GFCM) are looking at ways to improve capacity for fisheries
control though trainings possibly complemented with joint control and
inspection activities. Southern Mediterranean partners
have also continued their active participation in the related thematic Working
Group on Integrated Maritime Policy in the Mediterranean.

Environment and Climate Change

In the area of environment, the EU
supported financially the implementation of the Horizon 2020 initiative on the
de-pollution of the Mediterranean Sea (also a key initiative of the UfM). This
included cooperation and financial assistance to Mediterranean partners on the
development of a Shared Environmental Information System (SEIS), aiming at
improving collection and management of environmental data and indicators as
well as capacity building and identification of and addressing pollution
hotspots. EU-funded cooperation also continued with Mediterranean partners on
sustainable water management and identification and management of marine
protected areas.

The EU committed EUR 8 million to
strengthen the capacity of Mediterranean partner countries in mitigating climate
change and adapting to its effects, and to strengthen mutual cooperation
and dialogue. Mediterranean partners are encouraged to build capacity
and engage in the new carbon market mechanism to be developed following
the 17th Conference of the Parties (COP 17) to the United Nations
Framework Convention on Climate Change (UNFCCC). Mediterranean partners are
also encouraged to fully implement the Cancun and Durban agreements and in
particular devise low-carbon development strategies including update
information on targets or actions that they will implement.

              Regional Development,
Rural Development, Agriculture and Fisheries

The EU intends to help the partner
countries by supporting their inclusive growth, including through launching of
initial programmes to support agricultural and rural development.

In the framework of the review of
the European Neighbourhood Policy, addressing repeated requests to assist partners’
rural economies, the Commission proposed a new initiative: the European
Neighbourhood Programme for Agriculture and Rural Development (ENPARD).

ENPARD is building upon the EU best
practice in developing rural areas. It combines investment support and
strengthening of local organisational and administrative capacities so as to
trigger sustainable development of local agriculture. Its main objectives are
three-fold:

·
to improve rural livelihoods by facilitating
economic growth and distribution, employment opportunities for the youth and
sustainable development of rural areas;

·
to increase productivity of the farming, herding
and processing sectors, while also contributing to raising quality standards
(so to enhance availability of quality food in the local markets as well as
EU-export opportunities);

·
to develop organisational and institutional
capacities in the ENP countries and to improve adherence to the principles of
good governance.

The objectives of ENPARD are to be
achieved through the implementation of national multi-annual programmes
including countries rural development and agricultural policy priorities and
the related EU support.  The process includes close policy dialogue on
agriculture, veterinary surveillance and rural development.

The programme was launched in
January 2012 with expertise and research capacities made available to partner
countries. The programme will initially focus on Egypt, Jordan, Morocco and Tunisia..

The EU will also support efforts for the sustainable management of
fisheries resources.

Civil protection

The Prevention, Preparedness and Response to natural and man-made
Disasters project (PPRD-South - a UfM Flagship Initiative) develops and reinforces the capacity of participating countries
for disaster prevention, preparedness and response at local, national and
regional level, and promotes cooperation with the EU and among UfM countries.
The first phase of the project (EUR 5 million), is nearing the end of its
implementation. It has allowed, inter alia to review existing resources
and available mechanisms in the UfM and to prepare a regional Risk Atlas.

2.4.3 Expected achievements by
end 2013

·
New generation Actions Plans that will have been
agreed with partner countries will include substantial elements on sector
cooperation.

·
The EU will sign framework Protocols for participation
in EU programmes and agencies based on mutual agreement. Partners will
negotiate MoUs for participation in selected EU programmes open to ENP
partners. Partners’ cooperation with the EU agencies will increase, including
in some cases on the basis of bilateral agreements. The EU will have
financially supported preparatory action to facilitate cooperation with EU
agencies and will be prepared to provide co-funding for participation in EU
programmes and agencies.

·
In the area of Regional Policy the possibility
of launching pilot programmes inspired by the EU cohesion policy to promote
economic, social and territorial cohesion (drawing inter alia on the pilot
regional development programmes under the Eastern Partnership) will be explored
with partners. Co-operation in this area will be pursued in the first instance
with Morocco and Tunisia, but is open to all partners
determinedly embarking on political reforms who are interested in exploring how
disparities between rich and poor can be narrowed, and multilevel governance
can be promoted.

·
Regarding the transport sector, reforms
will have ensured grater approximation to EU transport standards. Comprehensive
Aviation Agreements will have been concluded with most of the countries and
implementation followed up. Maritime safety and security will have improved
through policy reform and flags would have improved in terms of the Paris
Memorandum on Port State Control. Partner countries could demonstrate improved track
record in road safety. Transport links with the EU will have improved through
better planning of networks and works on priority infrastructure projects that
help to connect the partner countries with the Trans-European transport
network. The strong ongoing regional transport cooperation will have led to the
implementation of both the regulatory reform and related actions of the
Regional Transport Action Plan (RTAP) for the Mediterranean for the period
2007-2013, also in respect of transport network planning. A second
Euro-Mediterranean Ministerial transport meeting could
be organised to  endorse achievements in cooperation
and set out policy guidelines for further work.

·
As regards maritime policy in particular
a regional Automatic Identification System (AIS) of data will have been set up
and the Mediterranean partner countries will participate in the CleanSeaNet
satellite service to better respond to discharges from ships and locate and
identify polluters in the waters.

The
EU-Mediterranean energy partnership will have been increased
through bilateral and multilateral cooperation.
Bilateral
energy policy cooperation and dialogue
will have been enhanced on the basis of EU standards. The EU and Egypt will have progressed in the implementation of their energy partnership, while such a
partnership will have been agreed with Algeria. Preparation of
market reform including the establishment or strengthening of regulators
will have advanced. Energy network projects, such as the Tunisia-Italy
electricity link or the Algeria-Italy gas interconnection, will
have been further developed. Partners would have enhanced energy
efficiency and renewable energy policies including with EU funded projects
(Egypt, Jordan, Lebanon, Morocco and Tunisia).
Regional
energy policy cooperation will have been
strengthened following an UfM energy ministerial planned for 2013. Work
towards an EU-Mediterranean renewable energies partnership and the
Mediterranean Solar Plan (MSP) will have progressed including through the
adoption, at the UfM ministerial, of a regional renewable energies master
plan covering the period until 2020. Renewable (pilot) projects will have
advanced with EU and IFI support. Regulatory cooperation would have been
strengthened (MEDREG) and complemented by the launch, in 2012, of a
cooperation structure of electricity transmission system operators (MED
TSO). The EU and its partners will have identified in 2013 steps to
establish in the longer term (2015-2020) a possible EU-Southern
Mediterranean Energy Community. Several cities would be preparing
sustainability plans aiming, inter alia, to increasing energy
efficiency. EU funded regional energy projects will have supported these
processes by focusing on market integration, the strengthening of
regulators, enhanced use of renewable energy including the MSP; and energy
efficiency.
Concerning environment,
partners will have made further efforts to strengthen environmental
governance, including administrative capacity. Partners will have advanced
in the setting up of a comprehensive system for environmental data
collection as a result of the EU-funded SEIS project. Partners will have
made progress on sustainable integrated water resource management,
following the EU-funded “SWIM” regional project and its demonstration projects,
which will be under implementation. Further steps will also have been
taken on de-pollution of the Mediterranean Sea with further EU support for
the Horizon 2020 Initiative and on marine protected areas under the
biodiversity component of the UNEP/GEF sponsored MedPartnership. Countries
will have geared up collaboration on sustainable consumption and
production, through a project planned to be launched by the EU.
As regards climate
change, the regional EU-funded project on climate action will be under
implementation. The partners will have taken steps to strengthen capacity
to identify and formulate climate change policies and strategies and the
use of monitoring tools and market-based mechanisms, including through
sharing information and best practices on climate change mitigation and
adaptation. Regional exchanges and cooperation towards low emission
development, climate resiliencies and improvement of climate related
decision making will have increased.
Regarding the
information society, the Mediterranean partner countries will have
been successful in their efforts for approximation to the EU regulatory
framework covering in particular electronic communications and Information
and Communication Technology (ICT) priorities of the Digital Agenda for Europe. An increased political dialogue with the regulators of the Mediterranean partner
countries will have led to a better understanding of various complex
regulatory issues in the area of electronic communications and information
society. The implementation of the EU’s “No Disconnect Strategy” will have
assisted civil society organisations and individual citizens in
circumventing arbitrary disruptions of the Internet and other electronic
communications technologies. By the end of 2013 the security, stability
and resilience of the Internet will have been augmented and the use of
modern technical tools and Social Media platforms in the Mediterranean
partner countries will be amplified.
The
development of a “Common Knowledge and Innovation Space” with the
Mediterranean partner countries will have had concrete results.
Mediterranean partner countries will have increased their research
capacity. Through intensified collaboration with the EU researchers and
research organisations the participation rate of the Mediterranean partner
countries in the FP 7 will have increased substantially. The network of FP
7 National Contact Points will have been strengthened considerably. A
number of Mediterranean partner countries will have started negotiations
on Memoranda of Understanding for their association to the follow-up
programme to the FP 7. Research mobility will have noticeably increased,
in particular under the Marie Curie scheme.

2.4.4 EU support

Funding for Erasmus
Mundus mobility grants for academic exchange (students and academics)
with Southern Mediterranean countries will be further increased in 2012
and 2013. The Commission intends to allocate EUR 80 million in addition to
what was originally planned for partner countries. For 2012[6],
the global amount for Southern Mediterranean countries will reach EUR 38.4
million under Erasmus Mundus Action 2 which funds short term mobility. In
addition, new opportunities will be given to Egyptian and Tunisian
students to attend joint programmes (masters and doctorates under Erasmus
Mundus Action 1) due to a specific additional allocation of EUR 10
million. This possibility will be extended to students from other
countries of the region in 2013.
In parallel, funding for the
Tempus programme, which aims at supporting the modernisation of
higher education structures and expands collaboration with EU
universities, will be increased by EUR 12.5 million in 2012 and 2013.
The eTwinning programme
will be extended to secondary schools in Egypt and Tunisia. Based on the results of this pilot exercise, inclusion of additional
countries of the region in the project will be considered.
The EU will put increasing
emphasis on Vocational Education and Training, notably through
capacity building of national and regional authorities in this field. An
additional budget of EUR 2 million for 2012 and 2013 will be allocated to
the European Training Foundation to develop its activities in the region.
As of 2012, the European Training Foundation (ETF) will also help Libya to formulate a programme for vocational education and training.
Possibilities for the mobility of trainees should be contemplated.
In summer 2012, the
Commission plans to launch a policy dialogue on higher education and youth
policies with ministerial counterparts, universities, youth organisations
and civil society from southern Mediterranean countries.
A new regional programme for the development of culture
in the Mediterranean region should foster capacity of cultural operators
in the region.
In the areas of statistics, the
Commission will support the creation of Forum of ENP-South statisticians,
to promote the production and dissemination of high quality statistics
covering key socio-economic areas, which are compatible with EU standards
and methodologies; and to promote the use of statistics for evidence-based
decision making, a key component of good governance.
In the area of agriculture
and rural development, the EU will be engaging in close policy
dialogues with the ENP partners in the framework of ENPARD. The dialogues
aim at promoting long-term agricultural and rural development strategies
developed in close cooperation with all relevant stakeholders. As a result
of the studies and pilot project carried under ENPARD, a fully fledged EU
support in that area will be under implementation.
In the area of fisheries,
the EU is also willing to promote cooperation on the conservation and
sustainable use of resources, and combating illegal, unreported and
unregulated fishing. The European Fisheries Control Agency (EFCA) and the
General Fisheries Commission for the Mediterranean (GFCM) are
looking at ways to improve capacity for fisheries control through
trainings, possibly complemented with joint control and inspection
activities

·
A second phase of the PPRD-South is
already envisaged for 2013 with the budget of EUR 5 million.

3.           Regional and Sub-regional
implications

Regional challenges call
for regional answers. The Arab Spring has highlighted the political, economic
and social challenges that can only be dealt effectively at regional level.
Resolving political crises such as that in Syria, or addressing security
issues such as the proliferation of weapons and terrorism can only be done
through regional partners acting together. The pressing challenge of creating
millions of jobs for youth in the South requires increased economic integration
among Southern partners and with the EU. As regional organisations redefine
their roles and initiatives, the EU has signalled its readiness to support them
and develop a more structured dialogue and cooperation.

3.1 Objectives

·
Make the Union for the Mediterranean an
effective instrument promoting policy dialogue and sector co-operation at
regional level.

·
Promote sub regional co-operation, in particular
in the Maghreb, involving the EU and the relevant partner countries on issues
of common concerns.

·
Develop a structured dialogue between the EU and
other relevant regional organisations (in particular the Arab League).

3.2 Implementation so
far

Union for
the Mediterranean

The Union
for the Mediterranean (UfM) has a special role to play as a unique forum of
dialogue among 43 Euromed partners that complements the bilateral
relations between EU and its Southern neighbours. The regional projects of
strategic importance identified at the Paris Summit remain relevant in the
current context, notably the Mediterranean Solar Plan, the de-pollution of the Mediterranean, the development of Motorways of the Sea and land highways, and the
Mediterranean Business Development Initiative. The EU has increased its
involvement and support at three levels:

- It has stepped up its financial and technical support
to the UfM secretariat to help it in its endeavour to become a catalyst for the
development and financing of regional projects.

- The UfM has endorsed eight projects for which it is
actively looking for financing, notably the construction of a desalination
plant in Gaza and the completion of a Trans-Maghreb Motor highway.

- In March 2012, the Council has transferred the UfM
Northern Co-Presidency to the EU. The EU has pursued the organisation of
regular high-level working groups and developed regional programmes in a wide
range of sectors as detailed in Section 2.

Sub-regional
co-operation in the Maghreb

The EU stands
ready to support efforts to reinvigorate the Arab Maghreb Union (AMU),
while recognising that impetus for this lies with AMU Member States themselves. There have been encouraging signs, including the
possibility of an AMU summit before the end of 2012. Partners of the 5+5 group
intend to organise a summit in October and have developed their cooperation,
including in security areas.

The EU has also
continued to support the implementation of the Agadir Agreement and encouraged
Agadir members (Egypt, Jordan, Morocco and Tunisia) to extend the geographical and substantive scope of the agreement. The EU will support these efforts that all go in the direction of
strengthening trust and cooperation.

Co-operation
with the Arab league

The EU has worked with
the League of Arab States (LAS) and other regional organisations (Gulf
Cooperation Council, Organisation of Islamic Conference), inter alia,
through the “Cairo Group” on Libya. The EU has actively supported
diplomatically the LAS initiative on Syria and the HR/VP and the SG of the Arab
League have maintained regular contacts during the crisis.

The EU has also provided
practical support by helping the LAS to set up a situation room, similar to
that of the EU, which provided immediate operational help as the Arab League
deployed its monitoring activities in Syria. The EU and the LAS have
identified areas for future cooperation in the political, economic and social
fields, and have outlined how to develop a more regular and structured dialogue
through regular meetings at senior officials and ministerial levels.

3.3 Expected
achievements by end 2013

The EU will
have further developed its cooperation with regional organisations and
initiatives:

Union for
the Mediterranean

With the EU
assuming the UfM Northern Co-presidency, a new impetus will be given to
the sector dialogues and enhanced coherence between EU and UfM actions.
With the support of UfM partners, several ministerial meetings will be
organised, notably in areas of trade, transport, energy and industry, as
detailed in section 2. Meetings at Senior Official level will develop a
more interactive political dialogue and provide effective guidance on
project activities to the UfM Secretariat.
The EU will have stepped up the
implementation of regional projects, including the launching of new phases
of regional programmes covering police, justice, migration and civil
protection. The Anna Lindh Foundation will have enlarged its networks of
NGOs and rolled out its program ‘Civil Society for Dialogue’ targeting
youth and women and widened its project ‘Young Arab Voices’, a series of
youth-led debates across the Arab region.

·
The UfM Secretariat, led by its new Secretary
General, will have enhanced its potential to organise effective and
result-oriented regional cooperation and developed its post labelling efforts
towards the promotion and financing of projects, in particular for the Gaza desalination plant and Trans-Maghreb Motor highway, as well as quick-win projects for
SME conducive to job creation. The Commission will have
continued to support the UfM secretariat and strengthened its operational links
with it. For example, UfM participation in the EuroMed
Transport Forum and its various Euro-Med transport working groups will
have been developed, bearing in mind that the work of the Infrastructure
Working Group and the Maritime Affairs Working group is of particular relevance
as it helps identify and pre-formulate strategic priority terrestrial transport
or port improvement projects which could be labelled by the UFM. The EU will
have pursued its support of the development of the Mediterranean Solar plan by
participating in the drafting groups and through its project "Paving the
Way for the Mediterranean Solar Plan", in particular its component
dedicated to regulatory issues which will feed the relevant part of the UfM Master
Plan. Regarding the “Horizon 2020 Initiative” which aims to de-pollute the Mediterranean Sea by the year 2020, the UfM would have made a contribution to the
evaluation of the first phase of the programme and played a role in monitoring
and reporting progress on infrastructure projects in the region. The Commission
will have supported the implementation of key actions related to the
"Draft Strategy for Water in the Mediterranean" via the SWIM project.
Other areas of close collaboration will have been developed such as Urban
development (in particular in the context of the CIUDAD project – Cooperation
in Urban Development and Dialogue), SME development (with the UFM involved in
the preparation of the new “InvestinMed” regional project), social issues in
particular the promotion of women political and social rights(with the
preparation of EC regional project), or civil protection (with the preparation
of a new Prevention, Preparedness and Response to
natural and man-made Disasters (PPRD South) project.

Sub-regional co-operation
with Maghreb countries

The High Representative and the Commission intend
to make proposals for strengthening relations between the EU and the
Maghreb in the context of a joint Communication to be prepared in coming
months, provided that the Maghreb partner countries demonstrate clear
signs of progress in their regional cooperation effort.
In the context of strengthening
of cooperation among the Maghreb countries and the re-invigorating of the Arab Maghreb Union, the EU will have
deepened its cooperation with the AMU. It will have explored opportunities
to support greater Maghreb integration covering key sectors such as
energy, people-to-people contact, trade and transport and will have
cooperated not only with government but with civil society and with
business. It will also have identified synergies
with the activities of the 5+5 group, and will
have articulated sub-regional cooperation with wider EUROMED cooperation.

Co-operation with the Arab League

A joint Foreign Ministers meeting between the 22
Members of the League of Arab States and the 27 Members of the EU to be
organised in the autumn of 2012 will have given a new and visible impetus
to LAS-EU cooperation. The EU will have developed a more structured
dialogue with the LAS and started concrete cooperation, for example in
training of diplomats or election monitors.

4.           Funding

              Additional Funding

Total 2011 ENPI commitments in favour of
Arab Spring countries and region amounted to EUR 1.4 billion of which EUR
130 million were additional funds made available after the Arab
Spring events.

This breakdown is as follows:

Country allocations:                  EUR
70 million for Tunisia (including EUR 20 million from                                            SPRING)

Regional Programmes:  EUR 45 million for
SPRING (other than Tunisia)

ERASMUS MUNDUS:           EUR 15 million of
additional funds

In addition to the ENPI, other funds should
as well be mentioned:

Thematic programmes:  EUR 18.7 million additional funds from European instrument for
Democracy and Human Rights (EIDHR) and the Non State Actors Thematic Programme
(Development co-operation instrument) for 2011-2012 (in favour of Egypt, Libya and Tunisia ) and EUR 9.7 million in 2011 from the Instrument of
Stability (in favour of Egypt, Libya and Tunisia).

Humanitarian Aid:                     EUR 80.5 million

              The SPRING programme

The Support to Partnership, Reform and
Inclusive Growth (SPRING) Programme, is an “umbrella” multi-country
programme which aims to respond to the pressing socio-economic challenges that
partner countries of the southern Mediterranean region are facing and to
support them in their transition to democracy.

Support provided through the SPRING will be
tailored on a “more-for-more” basis to partner countries showing sustained
commitment to, and progress in, democratic reforms.

SPRING programme supports activities
related to two priority areas of the EU communication i.e. democratic
transformation and institution building, as well as sustainable and inclusive
growth and economic development.

It is i.a. envisaged to contribute to:

·
Reduced poverty and social and economic
disparities within these countries, trough an integrated policy approach geared
at social inclusion.

·
Reduced levels of unemployment, in particular
youth, through a comprehensive and integrated policy mix including economic and
financial, employment and social, as well as education policies.

·
Improved skills development in order to match
labour market needs, notably through increased availability of good quality
vocational education and training.

·
Addressing the situation of young people who are
neither in employment, education or training (NEET) with activities modelled on
the “Youth guarantee”, aimed at ensuring that young people are in employment,
education or (re)training within a few months of leaving school.

The initial programme budget for the period
2011-12 is EUR 350 million.  The first EUR 20 million was allocated for Tunisia in 2011. Of these funds,  EUR 10 million were used to further support the economic recovery support programme “Appui à la Relance” where the use of
labour supply (graduated as well as unskilled young) is improved and adapted to
the labour market requirements.

[1] COM (2011) 200 of 8.03.2011

[2] COM (2011) 303 of 25.05.2011

[3] The Facility is
being implemented through calls for proposals and capacity development (both at
regional and national level).

[4] The Arab Fund for
Economic and Social Development (AFESD), the Arab Monetary Fund (AMF), the
European Bank for Reconstruction and Development (EBRD), the European
Investment Bank (EIB), the International Finance Corporation (IFC), the
International Monetary Fund (IMF), the Islamic Development Bank (IsDB), the
World Bank, the OPEC Fund for International Development (OFID) and the African
Development Bank (AfDB).

[5] 559 people from South Mediterranean countries + 184 from EU countries

[6] Call for proposals published on 30 December
2011

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