CELEX: 52012PC0255
Language: en
Date: 2012-06-01 00:00:00
Title: Recommendation for a COUNCIL DECISION authorising the opening of negotiations for the adaptation of the following agreements in view of the enlargement of the EU to Croatia: the Agreement on the European Economic Area, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014, the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons and the Agreement on Cooperation and Customs Union with San Marino

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		52012PC0255
		
			Recommendation for a COUNCIL DECISION authorising the opening of negotiations for the adaptation of the following agreements in view of the enlargement of the EU to Croatia: the Agreement on the European Economic Area, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014, the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons and the Agreement on Cooperation and Customs Union with San Marino /* COM/2012/0255 final */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
The Treaty concerning the accession of the Republic
of Croatia to the European Union[1] was signed on 9 December
2011.
The European Union and its Member States
have concluded agreements on the European Economic Area with Norway, Iceland
and Liechtenstein, on a Norwegian Financial Mechanism for the period 2009-2014,
on free movement of persons with Switzerland, and on a cooperation and customs
union with San Marino.
These agreements need to be adapted to
include Croatia as a contracting party upon its accession to the European
Union. The terms of the adaptation are to be negotiated between the current
contracting parties and the acceding country. The negotiations should be
initiated in a timely fashion, in order to ensure that the instruments for the
adaptation of these agreements will enter into force on the date of accession
of Croatia to the EU.
In accordance with Article 6 of the Act
concerning the conditions of accession of the Republic of Croatia (further on:
Act of Accession), such negotiations should be carried out by the Commission on
the basis of negotiation directives approved by the Council and in consultation
with a committee comprised of the representatives of the Member States.
Negotiations on behalf of the European
Union and its Member States should be launched on the basis of the following
considerations:
1. Agreement on the European Economic
Area
Pursuant to Article 6(5) of the Act of
Accession concerning the conditions of accession of the Republic of Croatia,
Croatia has undertaken to accede to the European Economic Area (EEA), under the
conditions of that Act. In accordance with Article 128 of the Agreement on the
EEA, Croatia will therefore submit its application to the EEA.
To that end, the Commission should be
authorised to negotiate, on behalf of the EU and its Member States, with the
contracting parties of the EEA and Croatia, an Agreement on the participation
of Croatia in the EEA. 
On the basis of the experience from the 2007
EEA enlargement negotiations, the following issues have been identified as
possible subjects for negotiation:
–              
Derogations and transition periods: The derogations and transition periods agreed in the context of
the Treaty of Accession should be taken over in the EEA Agreement. It is
unlikely that Norway, Iceland and Liechtenstein will oppose this fundamental
principle.
–              
Agricultural products and processed
agricultural products: Croatia has a fairly limited
share in EEA trade. However, it cannot be excluded that Norway and Iceland will
request compensation for the termination of existing bilateral free trade
agreements with Croatia from the date of accession. As for agricultural and
processed agricultural products, such adaptations should be agreed
within the framework of the regular negotiations on the basis of Article 19 and
Protocol 3 to the Agreement on the EEA, respectively, with the objective of
continued liberalisation of trade in these products. 
–              
EEA and Norway Financial Mechanisms: In the 2007 EEA Enlargement Agreement, all three EEA EFTA States
agreed to contribute an additional €72 million to social and economic cohesion
in the enlarged EEA (€21.5 million for Bulgaria and €50.5 million for Romania)
up to 30 April 2009, inclusive. Norway alone contributed an additional €68
million, through two bilateral cooperation programmes for promoting economic
growth and sustainable development in Bulgaria (€20 million) and Romania (€48
million). From 2009-2014, through the Agreement between the European Union,
Iceland, Liechtenstein and Norway on an EEA Financial Mechanism 2009-2014, all
three EEA EFTA States will contribute, in total, €988.5 million to social and
economic cohesion in the EEA. Through the Agreement between the European Union
and Norway on a Norwegian Financial Mechanism for the period 2009-2014, Norway
alone will contribute an additional €800 million in total. The EU point of
departure for the negotiations was that the EEA EFTA States as part of the
internal market would benefit as much as Member States from the enlarged
internal market, and should therefore also participate to a sustainable and
equitable development of the internal market by contributing to the alleviation
of social and economic disparities in the EU/EEA. Considering that it is
envisaged that the EEA and Norway will start negotiations with the EU on the
financial contribution to the beneficiary states for the EEA / Norway financial
mechanisms for the period 2015-2020 in 2013, it seems appropriate to apply
the same logic used for Bulgaria and Romania for the negotiations concerning
Croatia and that the EEA EFTA states should financially contribute to social
and economic cohesion in the enlarged EU/EEA with the EEA/Norway financial
mechanisms, but proportionally, until 2014 and without depriving the current
beneficiary states of any of the previously agreed funds, based on the same
criteria. The allocation of the additional
funds to Croatia should be based on the same criteria as those applied for the
two existing financial mechanisms. In the revision of the financial mechanisms,
it should also be recalled that any existing bilateral assistance agreements
between the EEA-EFTA countries and the new EU Member State will be terminated
upon the accession of the latter to the EU.      
During the enlargement process with Bulgaria
and Romania, it was negotiated that the Commission 'may' screen the proposed
projects, instead of 'shall'. This issue should be included again in the
negotiations. 
As a general rule, negotiations should be
limited to the main subjects indispensable for EEA enlargement, in order to
avoid lengthy procedures that would endanger simultaneous entry into force of
the EU and EEA enlargements. 
2. Switzerland and San Marino
In accordance with Articles 6(2) and 6(3) of
the Act of Accession concerning the conditions of accession of the Republic of
Croatia, Croatia has undertaken to accede to the agreements concluded or signed
by the present Member States and the Union with one or more third countries or
with an international organisation. Pursuant to this same provision, the accession
of Croatia to such agreements shall be agreed by the conclusion of a protocol
to such agreements between the Council, acting unanimously on behalf of the
Member States, and the third country or countries or international organisation
concerned. These protocols[2] are to be negotiated by the Commission on the basis of negotiating
directives approved by the Council, acting unanimously, and in consultation
with a committee comprised of the representatives of the Member States and
concluded by the Council.
For that purpose, the Commission should
submit to the Council a recommendation for the adoption of a decision authorising
the Commission to open negotiations 
Agreement on the Free Movement of Persons with Switzerland
With reference to Article 6(3) of the Act
of Accession, the Agreement on the Free Movement of Persons with Switzerland needs
to be adapted to include the new EU Member State. The following issues are
possible subjects of negotiation:
Transition periods: The Agreement on Free
Movement of Persons contains transition periods enabling Switzerland under
certain conditions to enforce quantitative limits in respect of access to an
economic activity for. They vary between 12 years after the entry into force of
the Agreement (until 31 May 2014), 8 years after the entry into force of its
Protocol of 2004 regarding the participation as contracting parties to the
Agreement of the Member States that joined the EU in 2004 (until 31 May 2014),
and 10 years after the entry into force of its Protocol of 2008 regarding the
participation as contracting parties to the Agreement of Bulgaria and Romania
(until 31 May 2019)[3]. As with the previous
enlargement, Switzerland should be granted similar derogations and transition
periods to those agreed in the context of the Treaty of Accession. Calculation
of the Swiss quantitative limits should be obtained by taking account of
existing migration from the acceding country, and of its population. 
Agreement on Cooperation and Customs
Union with San Marino
With reference to Article 6(2) of the Act
of Accession of Croatia, this agreement also needs to be adapted to include the
new EU Member State. No particular items of negotiation have been identified.
The Commission therefore recommends to
the Council:
–                        
to adopt the attached decision authorising the
opening of negotiations to 
–              
adapt the Agreement on the European Economic
Area in line with the enlargement of the European Union to Croatia,
–              
adapt the Agreement between the Kingdom of
Norway and the European Union on a Norwegian Financial Mechanism for the period
2009-2014
–              
adapt the Agreement between the European
Community and its Member States, of the one part, and the Swiss Confederation,
of the other, on the free movement of persons in line with the enlargement of
the European Union to Croatia, 
–              
adapt the Agreement on Cooperation and Customs
Union with San Marino in line with the enlargement of the European Union to
Croatia;
–                        
to issue the negotiating directives attached to
that decision;
–                        
to designate a special committee in consultation
with which the negotiations must be conducted.
Recommendation for a
COUNCIL DECISION
authorising the opening of negotiations
for the adaptation of the following agreements in view of the enlargement of
the EU to Croatia: the Agreement on the European Economic Area, the Agreement
between the Kingdom of Norway and the European Union on a Norwegian Financial
Mechanism for the period 2009-2014, the Agreement between the European
Community and its Member States, of the one part, and the Swiss Confederation,
of the other, on the free movement of persons and the Agreement on Cooperation
and Customs Union with San Marino
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 218(3) and (4)
thereof,
Having regard to Treaty between the Kingdom
of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of
Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the
Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian
Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of
Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic
of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic
of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the
Slovak Republic, the Republic of Finland, the Kingdom of Sweden, the United
Kingdom of Great Britain and Northern Ireland (Member States of the European
Union) and the Republic of Croatia concerning the accession of the Republic of
Croatia to the European Union[4], signed on 9 December
2011, and in particular Article 3(4) thereof,
Having regard to the Act concerning the
conditions of accession of the Republic of Croatia and the adjustments to the
Treaty on European Union, the Treaty on the Functioning of the European Union
and to the Treaty establishing the European Atomic Energy Community[5],
and in particular the second subparagraph of Article 6(2) and Article 6(5) thereof,
Having regard to the recommendation from
the European Commission,
Whereas negotiations should be opened for
the adaptation in view of the enlargement of the EU to Croatia of the Agreement
on the European Economic Area, to the Agreement between the Kingdom of Norway
and the European Union on a Norwegian Financial Mechanism for the period
2009-2014, the Agreement between the European Community and its Member States,
of the one part, and the Swiss Confederation, of the other, on the free
movement of persons and the Agreement on Cooperation and Customs Union with San
Marino,
HAS ADOPTED THIS DECISION: 
Article 1
The Commission is hereby authorised to
negotiate, on behalf of the European Union and its Member States, the
amendments to the Agreement on the European Economic Area and to the Agreement
between the Kingdom of Norway and the European Union on a Norwegian Financial
Mechanism for the period 2009-2014 in view of the enlargement of the European Union
to Croatia.
Article 2
The Commission is hereby authorised to
negotiate, on behalf of the European Union and its Member States, including –
subject to the entry into force of the Treaty of Accession – the Republic of
Croatia, the amendments to the Agreement between the European Community and its
Member States, of the one part, and the Swiss Confederation, of the other, on
the free movement of persons and to the Agreement on Cooperation and Customs
Union with San Marino in view of the enlargement of the European Union to
Croatia. 
Article 3
The negotiating directives are set out in
the Annex.
Article 4
The negotiations shall be conducted in
consultation with the [name of the special committee to be inserted by the
Council].
Article 5
This Decision is addressed to the
Commission.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
ANNEX 
Directives for the negotiation
for
the adaptation in view of the enlargement of the EU to Croatia of the Agreement
on the European Economic Area, the Agreement between the Kingdom of Norway and
the European Union on a Norwegian Financial Mechanism for the period 2009-2014,
the Agreement between the European Community and its Member States, of the one
part, and the Swiss Confederation, of the other, on the free movement of
persons and the Agreement on Cooperation and Customs Union with San Marino
1.           General Objective
Adaptation of the above mentioned agreements to
allow for the accession of Croatia to these agreements upon its accession to
the EU and revision of the relevant financial contributions for the alleviation
of economic and social disparities in the enlarged EU.
2.           Start of the negotiations
The negotiations on the adaptation of the above
agreements with the acceding country, on the one hand, and Iceland,
Liechtenstein, Norway / Switzerland / San Marino, respectively, on the other hand,
should start as soon as possible.
3.           Content of the instruments adapting the
existing agreements
The incoming new Member State of the EU is to
accede to the agreements. 
Agreement on the European Economic Area
(EEA Agreement) and the Agreement on the Norwegian Financial Mechanism 
The derogations and transition periods agreed
in the Act concerning the conditions of accession of
the Republic Croatia should be taken over in the EEA Agreement. A proportional
increase in the existing EEA and Norwegian financial mechanisms until 2014
should be obtained for Croatia, based on the same criteria as those applied for
the existing mechanisms. Negotiations should as much as possible be limited to
the main subjects indispensable for EEA enlargement.
Agreement between the European Community
and its Member States, of the one part, and the Swiss Confederation, of the
other, on the free movement of persons
The derogations and transition periods agreed
in the Act of Accession should be taken over where relevant. Calculation of the
Swiss quantitative limits should be obtained by taking account of existing
migration from the acceding country and of its population.
Agreement on Cooperation and Customs
Union with San Marino
This agreement has to be adapted to include Croatia
upon its accession to the EU. No particular subjects have been identified that
require substantial negotiation.
4.           Ratification and Entry into Force
Negotiations should be concluded as soon as
possible in order to allow for the instruments of adaptation to enter into
force on the date of and subject to accession of Croatia. In case the instruments
of adaptation cannot enter into force at the date of accession, a provisional
application should be envisaged, taking into account the respective procedures
in the EU and in the third countries concerned.
 FINANCIAL STATEMENT ||   
   || DATE: 
 1. || BUDGET HEADING: n.a. || APPROPRIATIONS:   
 2. || TITLE:   Adaptation of the following mixed agreements in view of the enlargement of the EU to include Croatia: Agreement on the European Economic Area, Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014 Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on Free Movement of Persons, Agreement on Cooperation and Customs Union with San Marino   
 3. || LEGAL BASIS: Articles 207, 217 and 218 TFEU   
 4. || AIMS:   
 5. || FINANCIAL IMPLICATIONS   None || 12 MONTH PERIOD (EUR million) || CURRENT FINANCIAL YEAR [n] (EUR million) || FOLLOWING FINANCIAL YEAR [n+1] (EUR million) 
 5.0 || EXPENDITURE -               CHARGED TO THE EU BUDGET (REFUNDS/INTERVENTIONS) -               NATIONAL AUTHORITIES -               OTHER ||     None ||     None ||     None 
 5.1 || REVENUE -               OWN RESOURCES OF THE EU (LEVIES/CUSTOMS DUTIES) -               NATIONAL ||     None ||     None ||     None 
   ||   || [n+2] || [n+3] || [n+4] || [n+5] 
 5.0.1 || ESTIMATED EXPENDITURE ||   ||   ||   ||   
 5.1.1 || ESTIMATED REVENUE ||   ||   ||   ||   
 5.2 || METHOD OF CALCULATION:   
 6.0 || CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? || YES 
 6.1 || CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? ||  NO 
 6.2 || WILL A SUPPLEMENTARY BUDGET BE NECESSARY? ||  NO 
 6.3 || WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? ||  NO 
 OBSERVATIONS:   
[1]               [Treaty between the Kingdom of Belgium, the Republic
of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic
of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the
Kingdom of Spain, the French Republic, the Italian Republic, the Republic of
Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of
Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the
Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese
Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic
of Finland, the Kingdom of Sweden, the United Kingdom of Great Britain and
Northern Ireland (Member States of the European Union) and the Republic of
Croatia concerning the accession of the Republic of Croatia to the European
Union, OJ L 112 of 24 April 2012]
[2]               Unless those concerning
agreement related exclusively or principally to the
common foreign and security policy.
[3]               Article 10 of the Agreement as supplemented by the
Protocols of 2004 and 2008.
[4]               OJ L 112 of 24 April 2012.
[5]               OJ L 112. of 24 April 2012