CELEX: 52004PC0204
Language: en
Date: 2004-03-30
Title: Proposal for a Council Decision on the principles, priorities, and conditions contained in the European Partnership with the former Yugoslav Republic of Macedonia {SEC(2004) 373}

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         Brussels, 30.3.2004
                                                         COM(2004) 204 final
                                            Proposal for a
                                      COUNCIL DECISION
   on the principles, priorities, and conditions contained in the European Partnership with
                          the former Yugoslav Republic of Macedonia
                                                  .
                                   (presented by the Commission)
                                         {SEC(2004) 373}
EN                                                                                          EN
 ---pagebreak---                             EXPLANATORY MEMORANDUM
The Thessaloniki European Council of 19 and 20 June 2003 reiterated its determination to
fully and effectively support the European perspective of the Western Balkan countries and
stated that “the Western Balkans countries will become an integral part of the EU, once they
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the
Western Balkans including the annex “The Thessaloniki Agenda for the Western Balkans:
moving towards European integration”, which aims at further intensifying relations between
the European Union and the Western Balkans, building also on practices used in the
enlargement process, inter alia through the introduction of European Partnerships. The
Commission has been invited to submit the first set of European Partnerships to the Council
for approval with the next Annual Reports on the Stabilisation and Association process (SAp)
due end of March 2004.
The European Partnership for the former Yugoslav Republic of Macedonia is based on the
provisions of Council Regulation (EC) No. 533/2004. It lists short- and medium term
priorities for the former Yugoslav Republic of Macedonia preparations for further integration
with the European Union identified in the Commission’s 2004 Annual Report and serves as a
checklist against which to measure progress. The European Partnership for the former
Yugoslav Republic of Macedonia reflects its current stage of preparation and is tailored to its
needs. The former Yugoslav Republic of Macedonia is expected to respond to the European
Partnership by preparing a plan with a timetable and details of how it intends to address the
European Partnership’s priorities. The progress in implementing the priorities will be
monitored regularly by the Commission, notably in the SAp Annual Reports and through the
structures set up under the SAp.
The European Partnership priorities should form the basis for programming of the financial
resources making up Community assistance, which will continue to be the assistance provided
for under existing financial instrument(s), in particular Council Regulation (EC) No
2666/2000 of 5 December 2000 (CARDS).
The proposed Council Decision has no financial implications.
In view of the above, the Commission invites the Council to adopt the attached decision.
                                               2
 ---pagebreak---                                           Proposal for a
                                    COUNCIL DECISION
 on the principles, priorities, and conditions contained in the European Partnership with
                         the former Yugoslav Republic of Macedonia
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 533/2004 on the establishment of European
Partnerships in the framework of the Stabilisation and Association process1 and in particular
to Article 2 thereof,
Having regard to the proposal from the Commission,
Whereas:
(1)     The Thessaloniki European Council of 19 and 20 June 2003 endorsed the
        “Thessaloniki Agenda for the Western Balkans: moving towards European
        integration” where the drawing-up of European Partnerships is mentioned as one of
        the means to intensify the Stabilisation and Association process;
(2)     Council Regulation (EC) No 533/2004 sets out that the Council is to decide, by a
        qualified majority and following a proposal from the Commission, on the principles,
        priorities and conditions to be contained in the European Partnerships, as well as any
        subsequent adjustments;
(3)     Council Regulation (EC) No 533/2004 states that the follow up of the implementation
        of the European Partnerships will be ensured through the mechanisms established
        under the Stabilisation and Association process, notably the Annual Reports;
(4)     The 2004 Commission's Annual Report presents an analysis of the former Yugoslav
        Republic of Macedonia’s preparations for further integration into the European Union
        and identifies a number of priority areas for further work;
(5)     In order to prepare for further integration into the European Union, the former
        Yugoslav Republic of Macedonia should develop a plan with a timetable and details in
        terms of measures the former Yugoslav Republic of Macedonia intends to take to this
        end.
1
  OJ L
                                                 3
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                           Article 1
In accordance with Article 1 of Council Regulation (EC) No 533/2004, the principles,
priorities and conditions in the European Partnership for the former Yugoslav Republic of
Macedonia are set out in the annex hereto, which forms an integral part of this Decision
                                           Article 2
The implementation of the European Partnership shall be examined through the mechanisms
established under the Stabilisation and Association process.
                                           Article 3
This Decision shall take effect on the third day following its publication in the Official
Journal of the European Communities.
Done at Brussels,
                                            For the Council
                                            The President
                                               4
 ---pagebreak---                                       ANNEX
1. INTRODUCTION
   The Thessaloniki Agenda identifies ways and means of intensifying the Stabilisation
   and Association process, inter alia through the introduction of European
   Partnerships.
   Based on the Commission’s Annual Report, the purpose of the European Partnership
   for the former Yugoslav Republic of Macedonia is to identify priorities for action in
   order to support efforts to move closer to the European Union within a coherent
   framework. The priorities are adapted to the former Yugoslav Republic of
   Macedonia’s specific needs and stage of preparation and will be updated as
   necessary. The European Partnership also provides guidance for financial assistance
   to the former Yugoslav Republic of Macedonia.
   It is expected that the former Yugoslav Republic of Macedonia will adopt a plan
   including a timetable and details in terms of how they intend to address the European
   Partnership priorities. The plan should also indicate ways to pursue the Thessaloniki
   agenda, the priorities on fighting organised crime and corruption identified at the
   2002 London Conference and at the Ministerial meeting held in Brussels on 28
   November 2003 in the framework of the EU-Western Balkans Forum and the
   measures presented by each of the Western Balkan countries at the meeting of 5
   November 2003 in Belgrade as a follow-up to the Ohrid Conference on integrated
   border management.
2. PRINCIPLES
   The Stabilisation and Association process remains the framework for the European
   course of the Western Balkan countries, all the way to their future accession.
   The main priorities identified for the former Yugoslav Republic of Macedonia relate
   to its capacity to meet the criteria set by the Copenhagen Council of 1993 and the
   conditions set for the Stabilisation and Association process, notably the conditions
   defined by the Council in its Conclusions of 29 April 1997 and 21-22 June 1999, the
   content of the final declaration of the Zagreb Summit of 24 November 2000 and the
   Thessaloniki agenda.
3. PRIORITIES
   The Commission’s Annual Report assesses progress made and notes areas where the
   country needs to increase its efforts. The priorities listed in this European Partnership
   have been selected on the basis that it is realistic to expect that the former Yugoslav
   Republic of Macedonia can complete them or take them substantially forward over
   the next years. A distinction is made between short-term priorities, which are
   expected to be accomplished within one to two years, and medium-term priorities,
   which are expected to be accomplished within three to four years.
                                           5
 ---pagebreak---        The European Partnership indicates the main priority areas for the former Yugoslav
       Republic of Macedonia’s preparations for further integration into the European
       Union, based on the analysis in the 2004 Annual Report. It should be recalled that
       where legislation is concerned, incorporation of the acquis into legislation is not in
       itself sufficient; it will also be necessary to prepare for its full implementation.
3.1.   Short Term
POLITICAL SITUATION
DEMOCRACY AND RULE OF LAW
       • Ensure the functioning of State institutions in all the territory.
       • Implement the Ohrid Framework Agreement - Implement the legislation already
           adopted to implement the Framework Agreement (FA). Adopt remaining
           legislation required by the FA, in particular adopt and implement the Laws on the
           Territorial Organization, Municipal Finance and the City of Skopje. Achieve rapid
           progress in the implementation of the decentralisation process to allow proper
           local elections as scheduled, in particular strengthening the municipalities’
           capacity in financial management and management of transferred competences
           and assets through training, consultancy and provision of equipment. In parallel,
           strengthen administrative capacities to supervise and facilitate the decentralisation
           process, including at central level, in particular of the Ministry of Local Self-
           Government and of the Ministry of Finance in relation to fiscal decentralization as
           well as the line ministries in their own areas of competence. Ensure that
           appropriate budgetary resources are allocated in order to ensure a smooth transfer
           of competencies. Adopt a medium term strategic plan for equitable representation
           of minorities, including adequate budgetary means, and ensure speedy
           implementation. Take further measures to ensure the implementation of the FA
           provisions on the Use of Language and on community symbols. Improve the
           monitoring and evaluation capacity of the central government. Enhance efforts to
           revitalize former crisis areas.
       • Improve the functioning of the public administration - Implement fully the Law
           on Civil Servants. Further develop the Agency for Civil Servants. Develop
           appropriate strategic planning and related allocation of resources in all Ministries
           and at Governmental level. Implement the Strategic Development Plan of the
           General Secretariat. Complete ongoing functional analyses in all public bodies
           and take measures to implement their recommendations, taking into account the
           decentralisation process. Improve administrative transparency and adopt a law on
           public access to information. Reform the Administrative Procedures and
           Administrative Disputes laws in order to strengthen the enforcement of citizens’
           rights. Implement fully the 2003 Law on the Ombudsman and complete the
           reform of the Ombudsman’s office. Ensure that the Ombudsman’s
           recommendations are followed up. Encourage the development of civil society
           including social partners’ organisations and their active participation in the
           decision making processes.
       • Strengthen the judicial system - Prepare a comprehensive reform of the Judiciary.
           Review the current system of selection, appointment and promotion of judges and
           prosecutors with a view to ensuring political independence, irremovability of
                                                 6
 ---pagebreak---          judges and career development based upon merit. Prepare necessary constitutional
         and legislative amendments to guarantee the independence of the body in charge
         of their selection and career development. Simplify court procedures. Improve the
         enforcement of the courts’ decisions. Introduce alternative dispute resolution
         mechanisms including arbitration and mediation in criminal matters. Ensure the
         appropriate enforcement of property rights and court rulings in the area of civil
         law. Strengthen the institutional capacity to train judges and prosecutors and
         prepare the setting-up of a National School for Magistrates. Provide for adequate
         initial and vocational training schemes.
       • Improve the fight against corruption - Implement the strategy for the fight
         against corruption. Increase institutional capacity to investigate and prosecute
         corruption. Improve coordination and ensure cooperation between the law
         enforcement agencies and the State Commission on the Prevention of Corruption.
         Improve exchange of intelligence on corruption-related cases between the services
         in charge of identifying, investigating and prosecuting established cases.
         Strengthen and implement the rules applying to officials’ declaration of assets,
         conflict of interest, transparency in public procurement and internal and external
         control of the administration. Adopt appropriate legislation on financing of
         political parties.
HUMAN RIGHTS AND THE PROTECTION OF MINORITIES
       • Improve the respect of human rights by law enforcement bodies - Ensure full
         compliance with the European Convention on Human Rights, the Convention for
         the Prevention of Torture and Inhuman and Degrading Treatment or Punishment
         and other relevant international conventions. Implement the Code of Ethics and
         ensure that irregularities are prosecuted. Deal with previous mistreatment cases
         through appropriate prosecutions. Upgrade internal controls and enforcement of
         professional standards in all law enforcement agencies and judiciary and prison
         administrations. Respect pre-trial detention rules. Promote police, judges,
         prosecutors and other law enforcement bodies awareness of their obligations in
         terms of human rights, and ensure that they implement them in accordance with
         international requirements.
       • Promote freedom of expression and media - Review the legal framework for
         broadcasting to prevent political interference. Take concrete steps to ensure the
         independence of media regulatory bodies. Review the legislation on defamation to
         reflect European standards and the jurisprudence of the European Court of Human
         Rights.
       • Ensure respect of minority rights - Ensure that the process of establishing a third
         State University in Tetovo is completed in a way that creates synergy with the
         South East European University and provides for academic standards in line with
         the Bologna declaration.
REGIONAL COOPERATION AND INTERNATIONAL COOPERATION
       • Promote regional cooperation - Comply with the Stabilisation and Association
         process requirements and Thessaloniki commitments in terms of regional
         cooperation. Ensure implementation of all regional free trade agreements. Pursue
         the conclusion of agreements with neighbouring countries, including on cross
                                             7
 ---pagebreak---          border cooperation as regards the fight against organised crime, trafficking and
         smuggling, judicial co-operation, border management, environment and energy,
         and ensure their effective implementation.
      • Ensure proper implementation of the Stabilisation and Association Agreement
         in the field of regional co-operation - Conclude negotiations with Croatia on the
         bilateral convention on regional cooperation.
      • Adopt an appropriate legal framework on cooperation with the International
         Criminal Tribunal for the former Yugoslavia.
      • Implement international agreements concluded by the former Yugoslav
         Republic of Macedonia - Guarantee the respect of commitments undertaken by
         the former Yugoslav Republic of Macedonia in the framework of its relations with
         the EU.
ECONOMIC SITUATION
FREE MARKET ECONOMY AND STRUCTURAL REFORMS
      • Sustain macroeconomic stability - Maintain a stable macroeconomic framework
         in the context of the International Monetary Fund programme. Conclude an
         agreement on a follow-up programme.
      • Pursue economic reforms - Introduce comprehensive market-oriented reforms
         aimed at reducing the role of the State in the economy, and establish a level
         playing field for all economic actors allowing them to operate in a stable and
         predictable environment. Clarify and enforce property rights, including in the
         context of privatisation.
      • Improve the business environment - Adopt and implement an improved legal
         framework on company law. Upgrade the efficiency of the administrative and
         judicial system and streamline the efficiency of bankruptcy procedures. Develop a
         programme to simplify and reduce licensing procedures and improve the
         transparency of all administrative procedures impacting on enterprises .
      • Employment policy - Develop and implement a comprehensive strategy to
         promote employment and reduce unemployment, in particular with regard to
         vocational training and labour market reforms, involving all relevant actors.
         Respect core labour standards and ensure their effective enforcement (including
         freedom of association and right to collective bargaining, non-discrimination in
         employment and occupation).
MANAGEMENT OF PUBLIC FINANCES
      • Improve public finance management - Implement fiscal decentralisation.
         Implement the wage decompression of civil service salary structure. Strengthen
         internal control and audit capacity in the Ministry of Finance and broaden controls
         applied to the public administration as a whole. Review the Law on State Audit to
         align it to EU standards and strengthen the State Audit Office as an independent
         State institution with an independent budget. Exert greater control and supervision
                                             8
 ---pagebreak---          of expenditure of extra-budgetary funds. Establish an effective Treasury Bill and
         Bond market.
EUROPEAN STANDARDS
INTERNAL MARKET AND TRADE
       • Complete negotiations with the EU on a Protocol to the SAA to adapt it to the
         upcoming EU enlargement before 1 May 2004.
       • Movement of goods - Make further progress on adopting European technical
         norms and standards. Implement the 2002 legislation on standards certification,
         metrology and conformity assessment, including the adoption of secondary
         legislation and the strengthening of administrative capacity to ensure enforcement.
         Progress with regard to the utilisation of the Combined Nomenclature.
       • Financial services - Improve prudential regulatory framework and supervision of
         this sector.
       • Personal data protection - Amend the legislation on protection of personal data in
         line with EU standards and set up an independent authority charged with the
         supervision of its implementation.
       • Customs – Achieve significant results in the fight against fraud, smuggling and
         trafficking Further strengthen the customs administration and ensure its proper
         functioning in order to reach EU standards. Carry forward the reform process and
         ensure the proper implementation of the Strategic Plan 2004-2008. In particular,
         ensure the proper operation of the new Professional Standards Unit and prosecute
         corruption cases within the customs Service. Strengthen administrative
         cooperation in the customs sector. Strengthen the services involved in the
         implementation of trade agreements and in particular with regard to the control of
         preferential rules of origin.
       • Taxation – Start reviewing the present tax legislation and the administrative
         procedures in order to ensure effective and non-discriminatory enforcement of tax
         legislation. Eliminate the present different excise duty rates for tobacco products
         based on the origin of the goods (domestic or imported). Proceed with the ongoing
         reform of the tax administration, and in particular strengthen its capacity at local
         level for collection and control of the tax due. Address the problem of the
         increasing level of VAT refund arrears. Commit to the principles of the Code of
         Conduct for business taxation and ensure that new tax measures are in conformity
         with these principles.
       • Competition and state aids - Adopt legislation against the restriction of
         competition. Entrust the competition authority with efficient means to directly
         enforce the law and impose sanctions. Promote transparency and basic
         enforcement of the State aid principles. Promote competition policy by fostering
         liberalisation, improving public procurement practices, ensuring a pro-competitive
         approach to privatisation. Adopt secondary legislation on state aids and strengthen
         the administrative capacity to implement the legal framework.
                                              9
 ---pagebreak---        • Public procurement - Improve the current legal framework on public
          procurement in line with the EC acquis and set up an Agency for Public
          Procurement able to ensure the implementation of the legal framework.
       • Intellectual, Industrial and Commercial Property rights - Adopt secondary
          legislation relating to the Law on Industrial Property and implement the law.
          Continue improvement of legislation Copyright and Related Rights.
SECTORAL POLICIES
       • Industry and SMEs - Adopt the restructuring and conversion programme for the
          steel industry in line with the competition related EC acquis to create efficient and
          competitive firms. Implement the principles of the European Charter for Small
          Enterprises and implement targets set for 2004. Improve access of Small and
          Medium sized Enterprises to financial and non-financial services. Continue
          preparation of a national guarantee fund.
       • Energy – Develop the newly-established Energy Regulatory Commission in order
          to meet EU guidelines and avoid a monopolistic situation emerging in the energy
          sector. Amend the Energy Law establishing the Transmission System Operator
          and addressing the Public Service Obligations.
       • Telecommunication – Ensure that the electronic communications sector is
          liberalised effectively including the strengthening of regulatory bodies and the
          adoption of suitable laws and policies for the sector.
       • Environment - Adopt Laws on environment, waste management, water
          management, protection of natural resources and air quality in line with EU
          standards.
COOPERATION IN JUSTICE AND HOME AFFAIRS
       • Border management - As a follow-up to the Ohrid regional Conference on border
          security and management in May 2003, implement the short term measures which
          were adopted by the Government and presented at the meeting of JHA ministers
          within the framework of the EU-Western Balkans Forum on 28 November 2003.
          Implement the Integrated Border Management strategy adopted in December 2003
          in cooperation between the agencies concerned. Strengthen the coordination
          between the Ministry of Interior and the Ministry of Defence to facilitate the
          transfer of competences on border control to the border police, and ensure the
          institutional development of border police service.
       • Migration and asylum policies - Implement the 2003 Law on Asylum. Establish
          an independent and transparent appeal and review panel for asylum seekers.
          Adopt appropriate by-laws for the implementation and development of reception
          policies and facilities. Revise the migration legislation, in particular review the
          legislation related to legal and illegal immigration and trafficking in human
          beings. Establish a common strategy to fight illegal immigration and the
          trafficking of human beings, integrating the regional dimension. Adopt a new Law
          on Foreigners.
                                             10
 ---pagebreak---        • Police - Ensure that the police services, in particular the special police forces,
          behave according to international standards and practices. Clarify the respective
          roles of the Ministry of Interior and the Ministry of Defence in crisis management
          situations in line with European practices. Adopt and implement an Action Plan
          for the reform of the police, taking into consideration equitable representation at
          all levels, and plan the necessary resources for its implementation. Take urgent
          measures to reform human resources management. Improve co-operation with the
          Judiciary. Enhance training capacities and ensure the proper functioning of the
          Police Academy, including the proper allocation of budgetary resources. Reduce
          corruption and irregular behaviour within police ranks. Promote cooperation with
          Interpol and other international law enforcement organisation, in particular
          through improved consultation of their databases.
       • Organised crime, trafficking, drugs, money laundering and terrorism -
          Implement the action-oriented measures that have been adopted by the
          Government and presented at the EU-WB JHA ministerial meeting of 28
          November 2003. Complete the ratification of the 2002 UN Convention on
          Organised Crime and its related protocols on small arms, trafficking in human
          beings and smuggling of migrants, and ensure implementation. Enhance co-
          ordination between law-enforcement bodies involved in fighting organised crime.
          Enhance intelligence and risk analysis and set up a central criminal intelligence
          unit, working in cooperation with all law enforcement agencies. Adopt the
          legislative changes needed to allow for the use of special investigative means.
          Develop witness protection programmes. Increase capacity to fight against drug
          trafficking. Develop a national drugs strategy in line with the EU Drugs Strategy
          and Action Plan on Drugs. Clarify the respective roles of the Directorate against
          Money Laundering (DML) and of the Financial Police and upgrade the DML to
          the level of a financial intelligence unit in line with European standards. Take the
          necessary steps to prepare for the conclusion of an agreement with Europol.
          Increase international cooperation and implement relevant international
          conventions on terrorism. Improve cooperation and exchange of information
          between police and intelligence services within the State and with other states.
          Prevent the financing and preparation of acts of terrorism.
3.2.   Medium Term
POLITICAL SITUATION
DEMOCRACY AND THE RULE OF LAW
       • Implement the Ohrid Framework Agreement - Implement the strategic plan for
          equitable representation of minorities. Ensure the proper functioning of the
          decentralised levels of government. Sustain efforts in revitalizing former crisis
          areas.
       • Further improve the functioning of the administration - Further promote
          independence of the administration, transparency in recruitment procedures and
          career development based on merit, professionalism and equitable representation
          of all communities. Pursue the reform of the public administration, in particular in
          view of the outcome of the “functional” analysis. Further develop the capacity of
          Ministries to perform a range of common functions needed to support the
          coordinating role for the General Secretariat and other central agencies (policy
                                              11
 ---pagebreak---           development, strategic planning, financial management, personnel management,
          information technology). Ensure that the sectors in the Administration responsible
          for the implementation of the SAA provisions are duly equipped to carry out their
          duties. Further encourage the development of civil society including social
          partners organisations and their participation in the decision making process.
       • Further strengthen the judicial system - Implement a comprehensive reform of
          the judicial system, including the necessary changes in the Constitution and in the
          legal framework, and strengthen the overall capacity of the judicial system.
          Ensure the effective functioning of the National School for Magistrates. Enhance
          training on EU legislation, cross-border cooperation in criminal matters and
          practices. Decrease the backlog of cases in all courts. Ensure provision of
          appropriate equipment and well-trained and specialised administrative staff with
          the appropriate status. Ensure sufficient budgetary resources to guarantee access
          to justice and legal aid. Increase salaries.
       • Further improve the fight against corruption - Achieve significant, tangible
          results in the fight against corruption, at all levels, through adequate legislation
          and the proper implementation of the national programme against corruption.
HUMAN RIGHTS AND THE PROTECTION OF MINORITIES
       • Ensure the respect of human rights by law enforcement bodies - Ensure that the
          police, judges, prosecutors and other law enforcement bodies are fully aware of
          their obligations and that they are implemented. Ensure that human dignity is
          respected in detention centres and prisons.
       • Further promote freedom of expression and media - Ensure that the laws in the
          media sector are in line with the European standards and are properly
          implemented.
       • Further promote the principle of non-discrimination and equal representation -
          Foster employment opportunities for all ethnic communities and facilitate access
          to education. Promote higher education for minorities and ensure that higher
          education in Albanian respects European standards as defined in the Bologna
          declaration.
REGIONAL AND INTERNATIONAL CO-OPERATION
       • Further promote regional cooperation - Maintain a constructive and balanced
          regional policy which promotes dialogue, stability, good neighbourhood and co-
          operation. Implement the Memorandum of Understanding of the South East
          Europe (SEE) Core Regional Transport Network. Implement the commitments
          undertaken in the framework of the 2003 Athens Memorandum of Understanding
          on the Regional Energy Market in SEE, and prepare for the establishment of the
          Integrated Regional Energy Market.
       • Implement international agreements concluded by the former Yugoslav
          Republic of Macedonia - Fully implement international agreements and
          conventions ratified by the former Yugoslav Republic of Macedonia, in particular
          conventions in the fields of Justice and Home Affairs, human and minority rights
          and trade.
                                              12
 ---pagebreak--- ECONOMIC SITUATION
FREE MARKET ECONOMY AND STRUCTURAL REFORMS
       • Ensure sustainability of economic reforms
       • Further improve the business environment – Ensure effective implementation of
          main international and EC standards on company law, accounting and auditing.
          Further upgrade the efficiency of the administrative and judicial system, fully
          implement the programme to simplify and reduce licensing procedures and further
          improve the transparency of all administrative procedures impacting on
          enterprises. Ensure the enforcement of creditors’ rights within a transparent legal
          framework and through reforming the cadastre. Promote the implementation of a
          code on corporate governance.
       • Employment and social policy - Develop a social policy to promote social
          cohesion, effective social protection systems, improve social standards and
          address poverty and social exclusion. Further develop an employment policy,
          involving all relevant actors.
MANAGEMENT OF PUBLIC FINANCES
       • Further improve public finances and their management - Enhance public
          internal and external financial control. Remove the main obstacles for the
          development of the second pillar of the pension system, in particular the financing
          of the transition from a solidarity system to a mandatory accumulation system.
       • Fraud - Establish effective procedures for the detection, treatment and follow-up
          of cases of (suspected) fraud and other irregularities affecting national and
          international funds.
EUROPEAN STANDARDS
INTERNAL MARKET AND TRADE
       • Movement of goods - Reinforce the Government’s capacity to implement the
          SAA, in particular through developing internal expertise to assess whether draft
          legislation is in line with the EC acquis.
       • Financial services – Ensure effective implementation of independent and well-
          trained supervisory authorities in accordance with internationally recognised
          standards
       • Personal data protection - Continue institutional strengthening of the data
          protection authority in line with EU standards and practices.
       • Customs - Further strengthen the Customs Administration and ensure its proper
          functioning in order to reach EU standards. Implement the Strategic Plan 2004-
          2008. .
                                              13
 ---pagebreak---        • Taxation – Continue strengthening the tax administration, in particular tax
          collection and control, and ensure its proper functioning in order to reach EU
          standards. Develop an audit strategy and adequate IT systems.
       • Competition and state aid - Implement the legislation against the restriction of
          competition. Further strengthen the competition authority by giving the power to
          enforce the law and pronounce sanctions. Further promote transparency in State
          aid.
       • Public procurement - Achieve fully operational public procurement structures
          which ensure the conduct of public procurement procedures in full accordance
          with the law and SAA principles.
       • Intellectual Property Rights - Ensure the implementation of the legislation on
          intellectual and industrial property.
SECTORAL POLICIES
       • Industry and SMEs - Implement the restructuring and conversion programme for
          the steel industry. Complete the implementation of the strategy for the
          implementation of the European Charter for Small Enterprises. Promote SMEs’
          access to credit facilities. Further develop experience of non-financial SME
          support mechanisms (i.e. clusters and technology parks). Implement the FIAS
          action plan on reduction of barriers to investment.
       • Telecommunication – Transpose and implement the new EU framework for
          electronic communications.
       • Agriculture - Adopt and implement structural reforms in the field of agriculture.
          Adopt and implement comprehensive reform including border and internal
          inspection services and practices regarding plant and animal health, policy
          analysis, sector information systems and statistics and co-ordination functions for
          existing public- and private-sector institutions and services.
       • Environment – Further approximate legislation with European standards.
          Implement the legislation adopted. Improve environmental monitoring and further
          build administrative capacity. Integrate environmental concerns in various
          policies, in particular through developing Environmental Impact Assessments in
          line with European standards.
CO-OPERATION IN JUSTICE AND HOME AFFAIRS
       • Border management - Complete the implementation of the Integrated Border
          Management strategy in cooperation between the competent agencies.
       • Migration and Asylum policies - Strengthen the development of national asylum
          structures in line with international and European standards to enable them to
          provide appropriate protection and assistance to asylum seekers and refugees.
          Implement the strategy to fight illegal immigration and trafficking of human
          beings.
                                              14
 ---pagebreak---           • Police - Complete the implementation of the reform of the police. Enhance
              training to fight new forms of criminality, including computer and trans-border
              crime. Further improve police information systems.
          • Organised crime, trafficking, drugs, and money laundering - Achieve significant
              results in the fight against organised criminality. Ensure the implementation of the
              UN instruments against organised crime. Further improve the State’s capacity to
              prevent and combat crime, through coordination between law enforcement
              agencies and with the judiciary, increased analytical capacity to deal with criminal
              intelligence and further training in new forms of criminality. Decrease the number
              of illicit small arms and light weapons. Ensure the full operation of the financial
              intelligence unit in line with European standards. Implement the national drugs
              strategy. Reinforce the fight against economic and financial crime (including
              money-laundering and counterfeiting of currencies) and fraud as well as improve
              the related national legislation.
4.        PROGRAMMING
Community assistance under the Stabilisation and Association process to the Western Balkan
countries will be provided by the relevant financial instruments, and in particular by Council
Regulation (EC) No 2666/20002; accordingly, this Decision will have no financial
implications. In addition the former Yugoslav Republic of Macedonia will have access to
funding from multi-country and horizontal programmes. The Commission is working with the
European Investment Bank and the International Financial Institutions, in particular the
European Bank for Reconstruction and Development and the World Bank, with a view to
facilitate the co-financing of projects relating to the Stabilisation and Association process.
5.        CONDITIONALITY
Community assistance under the Stabilisation and Association process to the Western Balkan
countries is conditional on further progress in satisfying the Copenhagen political criteria and
in particular progress in meeting the specific priorities of this European Partnership. Failure to
respect these general conditions could lead the Council to take appropriate measures on the
basis of Article 5 of Council Regulation (EC) No 2666/2000.
Community assistance shall also be subject to the conditions defined by the Council in its
Conclusions of 29 April 1997 and 21-22 June 1999, in particular as regards the recipients’
undertaking to carry out democratic, economic and institutional reforms.
6.        MONITORING
The follow up of the European Partnership is ensured through the framework of the
mechanisms established under the Stabilisation and Association process, notably the Annual
Report on the Stabilisation and Association process.
2
  OJ L 306, 7.12.2000, p.1.
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