CELEX: 52004PC0203
Language: en
Date: 2004-03-30
Title: Proposal for a Council Decision on the principles, priorities and conditions contained in the European Partnership with Albania {SEC(2004) 374}

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        Brussels, 30.3.2004
                                                        COM(2004) 203 final
                                           Proposal for a
                                     COUNCIL DECISION
   on the principles, priorities and conditions contained in the European Partnership with
                                             Albania
                                  (presented by the Commission)
                                        {SEC(2004) 374}
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 the 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 Council for
approval with the next Annual Reports on the Stabilisation and Association process (SAp) due
end of March 2004.
The European Partnership for Albania is based on the provisions of Council Regulation (EC)
No. 533/2004. It identifies short- and medium term priorities for Albania’s 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 Albania reflects its current stage of preparation and is tailored to its needs. Albania 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
                                             Albania
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 Albania’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, Albania should
        develop a plan with a timetable and details in terms of measures Albania 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 Albania 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, 2004
                                              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
Albania 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 Albania’s specific
needs and stage of preparation and will be updated as necessary. The European Partnership
also provides guidance for financial assistance to Albania.
It is expected that Albania 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 Albania relate to its capacity to meet the criteria set by the
Copenhagen European 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 Partnerships have been
selected on the basis that it is realistic to expect that Albania 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.
The European Partnership indicates the main priority areas for Albania’s preparations for
further integration into the European Union, based on the analysis in the 2004 Annual Report.
It should be recalled that where legislative approximation is concerned, incorporation of the
acquis into legislation is not in itself sufficient; it will also be necessary to prepare to its full
implementation.
                                                  5
 ---pagebreak--- 3.1    SHORT- TERM
POLITICAL SITUATION
DEMOCRACY AND RULE OF LAW
•      Focus on reforms and ensure proper functioning of democratic institutions –
       Ensure a political focus on the implementation of the reforms necessary for progress
       within the Stabilisation and Association Process. Improve the rules governing
       Parliamentary Committees and investigative Parliamentary Commissions. Fully
       adhere to the Constitution and respect and implement the decisions of the
       Constitutional Court. Encourage the development of civil society and its active
       participation in the decision-making process.
•      Improve the functioning of the public administration – Ensure enforcement of the
       Civil Service Law and take steps towards its improvement. Take measures to prevent
       undue political interference in the functioning of the public administration. Produce
       clear guidelines as regards recruitment, transfer and dismissal for all civil servants,
       and implement them. Ensure that the Civil Service Commission fulfils its duties in
       accordance with the law. Strengthen the function of the Secretary General in the line
       Ministries, Council of Ministers and Assembly. Improve co-ordination between the
       line Ministries and the Ministry of European Integration. Strengthen the financial
       sustainability of the Training Institute for Public Administration (TIPA) and its
       training capacities. Prepare tailor-made training programmes for local
       administrations. Ensure that the planned review of existing Albanian territorial units
       as well as the establishment of new territorial divisions is carried out properly, with
       the involvement of all stakeholders.
•      Prepare the next Parliamentary and local elections properly and in time -
       Implement in time the OSCE/ODIHR recommendations issued following the 2003
       local elections.
•      Strengthen the judicial system – Take measures to increase transparency and to
       improve management in the criminal and civil justice process. Foster the status of
       judges, and their independence and protection within the Constitution. Ensure that
       the right to initial and vocational training for judges and prosecutors is enshrined in
       the status of judges. Ensure efficient functioning of the “Serious Crimes Court”.
       Guarantee that judges and prosecutors are selected and appointed through
       competitive examinations, in conformity with the Constitution and the law. Further
       guarantee that judges and prosecutors are promoted with adequate safeguards and
       through impartial procedures. Improve the functioning of inspectorates of both the
       High Council of Justice and the General Prosecution Office, and ensure that there is
       no impunity for judges and prosecutors; provide clear guidelines for the roles of
       separate inspectorates in the Ministry of Justice and High Council of Justice. Adopt
       adequate legislation on witness protection. Achieve a continuous increase in the
       execution rate of court sentences. Develop a sound medium/long term strategic plan
       for the School of Magistrates with the objective of enhancing both its operation and
       financial sustainability. Ensure a proper follow up (investigation and possible
       prosecution) to public allegations of criminal behaviour against specified persons.
•      Improve the fight against corruption – Adopt the necessary legislation in order to
       harmonise the Albanian legal framework with European Conventions on Corruption
                                               6
 ---pagebreak---        (in criminal and civil matters) ratified by Albania. Improve the existing legislation on
       bribery and implement it. Ensure enforcement of the Law on Declaration of Assets.
       Implement the 2003-2004 Anti-Corruption Action Plan, and ensure that the next
       2004-2005 Plan includes realistic, precise and measurable anti-corruption measures.
       Strengthen the institutional capacity to investigate and prosecute corruption; ensure
       that the Specialised Unit attached to the Tirana Prosecution Office (dealing with
       financial crimes in general) also covers corruption cases. Reduce the list of officials
       covered by immunity, and grant immunity in strict compliance with international
       rules and practices.
HUMAN RIGHTS AND PROTECTION OF MINORITIES
•      Improve the respect for human rights by law enforcement bodies - Ensure that
       police, judges, prosecutors and other law enforcement bodies are fully aware of their
       obligations in terms of human rights, and that they implement them in accordance
       with international conventions ratified by Albania, and in particular the European
       Convention on Human Rights (ECHR). Address cases of ill-treatment by law
       enforcement bodies through effective prosecution of perpetrators. Improve
       conditions of detainees and prisoners on remand in police stations and take steps
       towards meeting international requirements in this area.
•      Guarantee freedom of expression and media – Take measures to prevent the
       harassment and/or undue political interference with the press. Bring Albania’s
       legislation on defamation into line with EU standards, and implement it. Adopt
       adequate legislation for the print media and improve the legislation available to the
       electronic media, taking into account EU standards. Take measures to ensure
       transparency regarding media ownership. Ensure the independence of the media
       regulatory body, namely the National Council on Radio and Television. Finalise the
       National Plan for Radio and Television Frequencies. Encourage investigative
       journalism, and take measures to support the independence and professionalism of
       journalists.
•      Ensure respect of minority rights – Provide accurate data on the size of minorities in
       Albania. Improve the legal framework on minorities so that it meets the requirements
       of the Council of Europe Framework Convention on National Minorities, and ensure
       its implementation throughout the whole Albanian territory. Implement the National
       Strategy for the Roma.
REGIONAL AND INTERNATIONAL CO-OPERATION
•      Strengthen regional co-operation – Comply with Stabilisation and Association
       Process (SAP) requirements and Thessaloniki commitments in terms of regional co-
       operation. Ensure implementation of all regional free trade agreements concluded in
       the framework of the 2001 Memorandum of Understanding for Trade Facilitation
       under the Stability Pact.
•      Implement international obligations – Regularise Albania’s position as regards
       compliance with its WTO commitments. Once the situation is regularised, ensure
       implementation of the revised schedule without further derogations. Guarantee
       respect of commitments undertaken by Albania in the framework of EC relations.
ECONOMIC SITUATION
                                               7
 ---pagebreak--- FREE MARKET ECONOMY AND STRUCTURAL REFORMS
•     Ensure sustained macro-economic stability - Maintain a stable macroeconomic
      framework in the context of the International Monetary Fund (IMF) programme.
      Demonstrate compliance with International Financial Institutions (IFIs)
      recommendations.
•     Improve the business environment – Implement the Action Plan for the removal of
      administrative barriers to investment and for simplification of administrative
      procedures. Adopt improved commercial legislation. Establish clear rules and
      procedures regarding conditions for establishment, registration and operation of
      national and foreign companies, and ensure that they are compatible with SAA
      requirements. Ensure proper, non-discretionary, non-discriminatory implementation
      of business-related legislation, rules and procedures. Implement the European
      Charter for Small and Medium Enterprises, in particular the targets set for 2004.
      Ensure that the SME Agency is fully operational. Reform pre-paid tax system to
      make it less unfavourable for starting up companies. Continue preparation of national
      guarantee fund. Spread company registration possibilities throughout the country.
•     Develop a stable and functioning land/real estate market - Adopt new legislation on
      the restitution/compensation of properties confiscated during the communist period.
      Ensure that this legislation provides a satisfactory answer to the vast majority of
      claims and take, in close co-operation with all relevant political actors and owner’s
      associations, the necessary steps to ensure its implementation. In particular, provide
      all data necessary to determine the land available for restitution or compensation,
      identify clearly the outstanding restitution claims, and develop a credible financing
      plan ensuring coverage of possible compensation costs.
•     Promote employment and social cohesion – Develop, with the involvement of all
      relevant actors, a strategy to promote employment and social cohesion, and start the
      strategy’s implementation. Take measures to improve social protection systems and
      social standards, and to combat social exclusion and discrimination. Respect core
      labour standards and their effective enforcement.
MANAGEMENT OF PUBLIC FINANCES
•     Improve public finance management – Improve budgeting procedures through
      realistic revenue estimates, better prioritisation of expenditure and strengthened links
      between policy objectives and budget planning. Develop a comprehensive socio-
      economic strategy, encompassing the current National Strategy for Social and
      Economic Development (NSSED) and the Medium Term Expenditure Framework
      (MTEF), to which all financial assistance could then be linked; in this context, ensure
      that SAP priorities are duly taken into account.
      Develop a comprehensive Public Internal Financial Control Strategy Paper, taking
      into account EC requirements.
      Enforce the Law on Internal Audit. Ensure the adequate functioning of the State
      Audit Institution (SAI), including follow-up of its findings and recommendations, as
      well as the prosecution of criminal cases.
EUROPEAN STANDARDS
                                              8
 ---pagebreak--- INTERNAL MARKET AND TRADE
•      Movement of goods – Make further progress in adopting European Standards. Adopt
       the draft decree on the organisation and functioning of the Accreditation Directorate,
       and ensure that the split of the function of accreditation from those of standardisation
       and certification takes place. Take measures to increase the awareness of economic
       operators in relation to these concepts, as well as to their importance in international
       trade.
       Improve phyto-sanitary and veterinary conditions in compliance with EC
       requirements, notably as regards those products which have a strong export potential.
•      Customs – Stabilise and improve all aspects of the administrative capacity of the
       Albanian customs administration. In particular ensure the stability of the staffing and
       manage human resources in strict compliance with the relevant legislation.
       Strengthen the customs departments involved in the implementation of trade
       agreements, in particular the department responsible for the origin of goods.
       Strengthen administrative co-operation in the customs sector. Ensure that rules and
       procedures regarding transit, valuation, customs warehouses, risk assessment and
       selectivity, and auditing (internal and external) are implemented in accordance with
       EC standards and, where relevant, international conventions. Ensure that the customs
       administration performs its revenue collection obligation in compliance with the law.
       Take concrete measures to improve the fight against smuggling and trafficking.
       Implement the ASYCUDA system in Tirana’s Customs House and Durres port.
       Ensure the non-discriminatory application of customs legislation, rules and
       procedures throughout the whole country.
•      Taxation - Start reviewing the present tax legislation and administrative procedures,
       and ensure effective and non-discriminatory enforcement of tax legislation. Intensify
       the fight against fiscal fraud. Proceed with the ongoing reform of the tax
       administration, including the development/extension of an integrated computerised
       system. Settle all outstanding claims regarding tax exoneration for EC financed
       projects and establish an efficient system to ensure actual tax exemption for EC
       financed projects in accordance with the 1992 Framework Agreement.
•      Competition and State aids – Adopt the implementing rules necessary for the
       implementation of the new Competition Law and start implementing it. Prepare for
       the establishment of an independent competition authority, including through the
       strengthening of administrative capacity. Promote competition policy by fostering
       liberalisation, improving public procurement practices, ensuring a pro-competitive
       approach to privatisation. Adopt the necessary legal framework for State aids and
       promote transparency and basic enforcement of the State aid principles.
•      Public procurement – Enforce current public procurement legislation and take steps
       in order to approximate this legislation to EC standards. Avoid derogations to the
       principle of open tender, and ensure strict implementation of tendering procedures.
       Strengthen the Public Procurement Agency as well as public procurement entities in
       line ministries. Take measures to guarantee adequate treatment of complaints.
•      Intellectual Property Rights (IPR) – Adopt new legislation on industrial property.
       Accede to the International Convention for the Protection of New Varieties of Plants.
       Adopt the necessary legislation and strengthen administrative capacity in order to
                                               9
 ---pagebreak---        improve copyright protection. Take steps to further increase the awareness of
       economic operators, law enforcement bodies and the judiciary in relation to
       intellectual, commercial and property rights. Take measures to improve IPR
       enforcement.
SECTORAL POLICIES
•      Environment – Start addressing toxic hotspots in Durres and Vlora, and the issue of
       radioactive waste in Tirana and Fier. Ensure enforcement of legislation on
       environmental impact assessment and eco-taxes. Improve co-ordination between the
       Ministry of Environment and other administrations dealing with environmental
       issues. Accelerate implementation of the National Strategy of Water Supply and
       Sanitation, and the Rural Strategy of Water Supply and Sewerage.
•      Energy –Implement the 2003-2005 Action Plan and start implementing the Albanian
       Energy Strategy. Implement the commitments undertaken in the framework of the
       2003 Athens Memorandum of Understanding on the Regional Energy Market in
       SEE.
•      Telecommunications – 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.
CO-OPERATION 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 measures that have been
       adopted by the Government and presented at the meeting of JHA ministers within the
       EU-Western Balkans (WB) Forum in November 2003. Develop an Integrated Border
       Management Strategy (IBM) in compliance with EC requirements. Strengthen law
       enforcement bodies responsible for border management, and upgrade management
       standards. Establish an adequate risk-analysis system, in order to improve border
       management at border-crossing points and “green” and “blue” borders. Increase co-
       operation with neighbouring countries, as well as collaboration between national law
       enforcement bodies involved in border management, at the border and in connection
       with subsequent control activities. Improve equipment and skills of Albanian law
       enforcement bodies in order to ensure the identification of forged/false travel
       documents.
•      Migration and asylum policies - Adopt and start implementing the National Strategy
       for Migration. Ensure that the necessary procedures to sign and ratify the EC/Albania
       Readmission Agreement are completed as soon as possible in 2004.
       Formally adopt the National Action Plan on Asylum. Address the remaining gaps in
       Albania’s asylum-related legislation. Implement, especially in border areas, the “pre-
       screening” system to classify persons in irregular situations within the Albanian
       territory. Respect the non-refoulement principle. Ensure that the processing of
       asylum claims is carried out in accordance with the law, and that time limits are
       respected.
•      Police – Fully implement the law on police ranks. Develop and start implementing a
       transparent system of discipline and promotion. Improve police investigative skills.
                                             10
 ---pagebreak---        Establish a consolidated manual of procedures for all the Criminal Police Officers.
       Establish clear rules in order to ensure adequate collaboration between various police
       units and the prosecutor’s office. Strengthen community policing. Ensure prosecution
       of police officers involved in corruption and other criminal activities.
•      Organised crime, trafficking, drugs, money laundering and terrorism – Implement
       the action-oriented measures against organised crime that have been adopted by the
       Government and presented at the EU-WB JHA Ministerial meeting of November
       2003. Ensure that Albanian legislation clearly defines the concept of “organised
       crime”, consistent with EU legislation and generally accepted international standards.
       Adopt and implement legislation on stolen goods taking into account international
       standards and covering also goods stolen abroad. Ensure collaboration and
       information exchange between law enforcement bodies, state ministries and
       legislators involved in fighting organised crime. Within the limits of the law and in
       full respect of international standards, extend the use of Special Investigative Means
       to all organised crime-related areas. Implement the Anti-Trafficking Strategy
       adopted in 2003. Take the necessary steps to prepare for the conclusion of an
       agreement with Europol.
       Enforce existing drugs-related legislation. Ensure sustained efforts in the fight
       against the cultivation and trafficking of cannabis. Prepare a National Strategy on
       Drugs in compliance with the EU Drugs Strategy and Action Plan.
       Strengthen the capacity of institutions responsible for fighting money laundering;
       ensure adequate collaboration between these institutions, establish efficient working
       procedures and develop an appropriate case management system. Enforce existing
       money laundering legislation.
       Increase international co-operation and implement relevant international conventions
       on terrorism. Improve co-operation 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 PRIORITIES
POLITICAL SITUATION
DEMOCRACY AND RULE OF LAW
•      Further improve the functioning of the public administration – Ensure that the
       sectors of the administration responsible for the implementation of SAA provisions,
       as well as those involved in the implementation of EC financial assistance, are
       adequately trained and equipped to carry out their duties. Ensure that civil service
       legislation and related procedures, including in terms of career development, are
       improved in line with the requirements of a modern public administration, and that
       they are strictly implemented to support the development of a well-prepared,
       professional, transparent and stable administration. Ensure that local administrations
       are in the position to implement decentralised policies.
•      Carry out the next Parliamentary and local elections in accordance with
       international standards.
                                              11
 ---pagebreak--- •      Further strengthen the judicial system - Ensure prosecution of serious crimes,
       especially organised crime, with particular attention to cross-border co-operation
       mechanisms. Substantially reduce the current backlog and ensure the timely
       execution of court sentences. Ensure broad publication of court decisions. Ensure
       continued and adequate training of judges and prosecutors, including in human
       rights, ethics and commercial matters and SAA-related issues. Enforce legislation on
       witness protection. Further strengthen the independence of the Judiciary by
       effectively transferring the inspection of the judicial activities of judges from the
       Ministry of Justice to the High Council of Justice.
•      Further improve the fight against corruption – Implement European Conventions
       on Corruption (in criminal and civil matters) ratified by Albania, as well as GRECO
       recommendations. Achieve significant results in the fight against corruption, at all
       levels and in all fields, through enforcement of adequate legislation.
HUMAN RIGHTS AND PROTECTION OF MINORITIES
•      Ensure the respect of human rights by law enforcement bodies – Ensure that
       detainees and prisoners on remand are treated in accordance with international
       standards. Guarantee that human dignity and personal safety is respected in detention
       centres, prisons and mental institutions, in accordance with international
       conventions. Establish an adequate juvenile justice system. Ensure compliance with
       the CoE Convention for the Prevention of Torture and Inhuman and Degrading
       Treatment or Punishment.
•      Ensure freedom of expression and media – Enforce new legislation for printed and
       electronic media taking into account EU standards. Ensure that TV frequency
       allocation is carried out in a fair and non-discriminatory manner, in accordance with
       the National Plan, and that requirements are fully respected by broadcasters.
       Complete the transition of the Albanian RTV from a state television company to a
       neutral public service broadcaster. Encourage continued improvement of the quality
       of journalism.
REGIONAL AND INTERNATIONAL CO-OPERATION
•      Strengthen regional co-operation – Conclude and implement a set of agreements
       with neighbouring countries in the fields of organised crime, border management and
       readmission. Implement the Memorandum of Understanding of the South East
       Europe (SEE) Core Regional Transport Network. Continue the implementation of the
       commitments undertaken in the framework of the 2003 Athens Memorandum of
       Understanding on the Regional Energy Market and make progress regarding the
       establishment of this market. Ensure adequate regional co-operation on
       environmental issues.
•      Implement international obligations – Fully Implement international agreements
       and conventions ratified by Albania, in particular conventions in the fields of Justice
       and Home Affairs, human and minority rights, and trade.
ECONOMIC SITUATION
FREE MARKET ECONOMY AND STRUCTURAL REFORMS
                                              12
 ---pagebreak--- •      Complete the privatisation process – in particular by privatising INSIG (financial
       sector), Albtelecom (telecommunications sector), Servcom, Albpetrol, Armo and
       KESH (energy sector).
•      Further improve business environment - Enforce improved commercial legislation.
       Ensure that judges are well trained on commercial and corporate legislation. Achieve
       significant results in terms of fighting fraud and corruption. Put in place a strategy to
       combat informal economy in order to guarantee, amongst other things, fair
       competition between companies.
•      Achieve a functioning land/real estate market - Enforce legislation on
       restitution/compensation of properties confiscated during the communist period.
       Complete land mapping and the process of land registration. Ensure that transfers of
       property are carried out in accordance with the law, and take measures aimed at the
       proper functioning of all bodies involved in the process (notaries, property register,
       etc). Ensure that provisions in relation to land classification and the use of land are
       respected. Develop and adopt legislation for the taxation of land and real estate.
MANAGEMENT OF PUBLIC FINANCES
•      Further improve public finance management – Implement the Public Internal
       Financial Control Strategy. Further strengthen external audit and ensure that both,
       financial control management and internal audit, function properly. 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 TRAD
•      Movement of goods – Ensure administrative capacity to implement SAA
       requirements in this area. Make further progress in adopting European Standards.
       Establish a market surveillance system. Ensure improved functioning, taking into
       account EC practices, of the bodies responsible for standardisation, accreditation and
       certification, as well as those responsible for metrology and calibration.
       Achieve substantial improvement in terms of food safety and phyto-sanitary and
       veterinary conditions, in compliance with EC requirements.
•      Customs – Ensure administrative capacity to implement SAA requirements. Ensure
       substantial alignment of customs legislation and procedures, and their
       implementation, to EC legislation and procedures. Guarantee proper implementation
       of rules of origin. Continue to ensure stability of staffing within the customs
       administration and to improve efficiency in its management. Increase results in the
       fight against fraud, smuggling and trafficking, and reduce significantly those cases
       involving customs officials engaging in illegal activities. Complete the
       implementation of ASYCUDA throughout the whole country and continue
       computerisation efforts.
•      Taxation – Continue strengthening the tax administration. Ensure full and efficient
       implementation of the VAT system. Improve communication with taxpayers, and
       simplify tax structure and procedures, including refund procedures. Provide all
                                              13
 ---pagebreak---        taxpayers with a unique identification number for fiscal purposes. Continue to
       strengthen tax collection and control and develop an audit strategy.
•      Competition and State aids – In line with SAA requirements, establish an
       independent competition authority. Enforce competition legislation, and prepare for
       the establishment of an operationally independent State aids structure. Strengthen
       structures responsible for State aids and ensure progress towards both the completion
       of a comprehensive State aid inventory and the production of GDP data at NUTS II
       level.
•      Public Procurement – Ensure substantial alignment of Albania’s legal framework
       with EU acquis. Achieve fully operational public procurement structures, ensuring
       strict operation of public procurement procedures in compliance with the law and
       SAA requirements.
•      Intellectual Property Rights (IPR) – Properly implement international conventions
       ratified in the field of intellectual, commercial and industrial property rights. Ensure
       a high degree of protection for IPR, and achieve results in the fight against piracy
       and counterfeiting. Guarantee sufficient administrative capacity in order to comply
       with SAA requirements in this area.
SECTORAL POLICIES
•      Environment – Continue efforts to address toxic hotspots. Reduce the levels of dust
       and air pollution in urban areas. Reduce pollution produced by the Balsh refinery,
       including the discharge into the Gjanica River, and take measures to tackle water
       pollution in general. Continue to implement regional and international commitments
       in this area. Strengthen environmental monitoring and ensure sufficiently dissuasive
       sanctions against polluters. Ensure implementation of the National Strategy of Water
       Supply and Sanitation, and the Rural Strategy of Water Supply and Sewerage.
       Develop and start implementing a strategy for progressive alignment to the acquis in
       this area.
•      Public Health – Strengthen surveillance and notification systems for communicable
       diseases. Facilitate closer co-operation with the public health networks.
•      Transport - Implement the transport Master Plan. Continue efforts to complete the
       East-West and North-South corridors. Make substantial progress on the rehabilitation
       of Tirana Airport and the ports of Durres and Vlora, including in ensuring improved
       security and border management. Complete the privatisation of Durres port. Achieve
       improved results in terms of road safety, and take additional steps for further
       improvement. Implement the Memorandum of Understanding of the South East
       Europe (SEE) Core Regional Transport Network.
•      Energy – Continue to ensure the proper implementation of Action Plans in relation to
       the electricity sector, and further progress with the implementation of the Albanian
       Energy Strategy. Ensure timely implementation of the various projects aimed at the
       improvement of infrastructure for electricity production, transmission and
       distribution. Continue to implement regional and international commitments in this
       area in view of establishing a competitive regional energy market.
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 ---pagebreak--- •        Telecommunications – Transpose and implement the new EU framework for
         electronic communications.
CO-OPERATION IN JUSTICE AND HOME AFFAIRS
•        Border management - Implement the Integrated Border Management (IBM)
         Strategy and all international commitments undertaken by Albania in the area of
         border management. Implement risk analysis in relation to border management
         efficiently. Continue to strengthen border management capacities; in particular,
         ensure that border management at Tirana International Airport, and at Durres and
         Vlora ports, complies with international standards. Ensure improved security features
         of new Albanian travel documents. Achieve significant results in the de-mining
         process.
•        Migration and asylum policies - Implement Albania’s National Strategy on
         Migration. Ensure that Albania is in the position to meet SAA requirements
         regarding EC citizens working and/or residing in Albania. Ensure the enforcement of
         all readmission agreements that Albania has concluded; attempt to conclude
         readmission agreements with all countries of the region and with the countries of
         origin of migrants transiting through Albania. Progressively conclude, ratify and
         implement all of the main international conventions in the field of migration.
         Implement the Albanian National Action Plan on Asylum. Enforce asylum-related
         legislation and establish a fully-fledged asylum system, in compliance with
         international standards.
•        Police – Continue to strengthen all police forces, most notably through adequate
         training and equipment. Ensure functioning of a proper case management system, so
         that there is a well documented process of tracking cases from initial report to
         conclusion. Achieve significant results in the fight against criminality, and in
         reducing corruption and other criminal behaviour within police ranks.
•        Organised crime, trafficking, drugs, money laundering and terrorism – Further
         increase international co-operation. Achieve significant results in the rate, number
         and quality of prosecutions in relation to offences connected with organised crime
         and trafficking, as well as in terms of the seizure of proceedings from crime.
         Implement the National Strategy on Drugs. Ensure substantially improved results as
         regards the fight against drugs trafficking, especially hard drugs such as heroine and
         cocaine.
         Reinforce the fight against economic and financial crime (including money-
         laundering and counterfeiting of currencies). Establish an inter-ministerial agency for
         the purpose of seizing proceedings from crime. Achieve tangible results in the fight
         against money laundering, both within and outside the financial sector.
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
                                                15
 ---pagebreak--- Regulation (EC) No 2666/20002; accordingly, this Decision will have no financial
implications. In addition Albania 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
suspension of financial assistance 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 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
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