European Commission: Strategy Paper and Report 2003

Conclusions

The progress of each country has been assessed according to the sub-criteria of the Copenhagen economic criteria -- the existence of a functioning market economy and the capacity to withstand competitive pressure and market forces within the Union.

Taking the two sub-criteria together, it is re-iterated that Cyprus and Malta are functioning market economies and should be able to cope with competitive pressure and market forces in the Union.

The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia are likewise functioning market economies, as previously concluded. According to this year's assessments, these countries have made further and sufficient progress in macroeconomic stabilisation and economic reform and the continuation of their current reform paths should enable them to cope with competitive pressure and market forces within the Union.

Hence, taking into account the commitments which have to be met by accession by these ten countries, the Commission considers that they will have fulfilled the Copenhagen economic criteria within the timeframe envisaged for accession. The conclusions of the Regular Reports identify the major areas where improvements to the functioning of the market economy or the competitiveness in the Union should still be made. These areas, whilst not exhaustive, indicate priority areas of action.

After having been considered close to being a functioning market economy, this year's Regular Report for the first time concludes that Bulgaria is a functioning market economy. Provided it continues implementing its reform programme to remove remaining difficulties, it should be able to cope with competitive pressure and market forces within the Union in the medium term.

Romania has continued to make progress towards being a functioning market economy, for which the prospects have improved. Sustained and full implementation of planned measures together with the completion of the reform agenda should allow Romania to be able to cope with competitive pressure and market forces within the Union in the medium term.

Turkey has made progress on the functioning of its market economy which should improve its capacity to cope with competitive pressure and market forces within the Union, but is still undergoing the consequences of two deeply destabilising financial crises.

The conclusions of each Regular Report are contained in Annex 1.

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