European Commission: Strategy Paper and Report 2003

Overall development

This year's Regular Reports' assessment of developments with regard to the Copenhagen acquis criteria also take a broader look than in previous years. In addition to evaluating progress made by each candidate since the last year, this year's Reports look at progress achieved by each country since the 1997 Opinions (since the 1998 Regular Report for Cyprus and Turkey, and since the 1999 update of the Opinion for Malta), their track record in implementing the commitments made in the negotiations and the degree of alignment and implementation of the acquis. As the acquis has considerably developed over the last 3 to 5 years, progress during that period has also been assessed as regards the new acquis adopted by the Union. In addition, information available to the Commission on the relevant ongoing preparations and detailed implementation plans has been taken into account.

The Reports show that, overall, candidate countries have generally reached a high degree of alignment in many areas, as a result of the considerable progress in transposing the acquis over the last years. Steady progress has also been made in building up the administrative and judicial structures required for implementing and enforcing the acquis and most countries are well advanced towards reaching an adequate administrative capacity in a considerable number of fields. Moreover, commitments made in the negotiations are generally being fulfilled.

The acquis is already being implemented in a number of sectors. In other sectors, alignment with the acquis needs to be finalised and the building up of the necessary administrative capacity needs to be completed in view of accession. The continuation of countries' efforts in line with the commitments or requirements agreed in the negotiations should enable them to assume their obligations of membership with regard to these sectors within the envisaged enlargement timeframe.

For example, in the internal market sector, substantial progress has been made and most countries have now reached a reasonable level of alignment and implementation of the acquis. Good progress has been made in particular in the areas of standardisation and certification where framework legislation and basic infrastructure are in place in most countries. Transposition of the acquis on financial services, in particular the banking legislation, is generally well advanced. Liberalisation of capital movements in line with the acquis is now almost complete in most countries.

Further efforts are still needed in order to reinforce the administrative capacity in areas such as market surveillance and food safety. In public procurement, legislative transposition needs to be completed and enforcement structures reinforced. Attention should be paid to the area of mutual recognition of professional qualifications, where legislative alignment with respect to the health care professions still needs to be completed and, in some cases, curricula and training adapted to Community requirements Attention also needs to be paid to the proper implementation of the money laundering directives and financial services legislation, in particular the independence of supervisory authorities. While the transposition of the intellectual and industrial property rights advances at a satisfactory pace, the degree of enforcement of the legislation can still be improved.

In the field of competition, anti-trust legislation is already largely in line with the acquis in most countries, but continuous attention has to be devoted to ensure the effective application and enforcement of the rules. As regards state aid, in a number of countries incompatible existing aid schemes, often in the form of fiscal incentives, should be brought into line with the acquis and the countries' enforcement track record needs to be developed. In addition, a number of countries still need to improve state aid control in certain sensitive sectors, such as shipbuilding and steel, where in particular restructuring plans need to be implemented.

In the area of consumer policy, where legislative alignment is generally advanced, candidates need to continue their efforts to complete transposition and to implement the legislation. Effective implementation of the acquis will make sure that the products on the enlarged internal market are safe and that the rights of the consumers are protected.

In the environment sector, in addition to finalising the transposition of the acquis, candidates need to focus their efforts on reinforcing their overall administrative capacity to apply it, in particular in the areas of waste management and industrial pollution. For a number of issues, the provision of necessary financial means needs to be ensured.

In the field of transport, legislative alignment has been progressing in most candidate countries, with implementing legislation outstanding. However, some candidates still need to complete alignment and to carry out reform in the rail sector. Others have to make important progress in the field of maritime transport. Administrative capacity needs to be strengthened in all areas to enforce the acquis strictly, in particular in the field of road transport (including the social acquis). Similarly, a number of countries need to strengthen their efforts in order to comply with the acquis concerning maritime safety The extended Trans-European Transport Network will require substantial investments over the coming decade.

In the field of energy, some countries still need to complete the additional requirements arising from the necessary legislation for the internal energy market. This is also important in view of the forthcoming acquis. Most need to strengthen their administrative capacity. The recommendations of the Council report on `Nuclear Safety in the context of Enlargement' are being addressed. In particular, some countries need to continue efforts to strengthen their nuclear safety authorities. Two candidates have made firm commitments to close certain nuclear power plants. These commitments will need to be included in the Accession Treaty.

In the field of telecommunications, efforts are still needed for full implementation of the telecommunication acquis, to strengthen the administrative capacity and the independence of the regulator in most countries. The economic impact of full implementation of the universal service obligations has to be assessed.

In the area of social policy and employment, while alignment with the acquis is well advanced, most countries still need to strengthen their administrative capacity in particular in the areas of public health and health and safety at work. In addition, social inclusion should be further promoted in the light of the common objectives set out for the Union and candidate countries need to continue translating the Union's objectives into their national employment policies. Candidate countries should strengthen their efforts in the areas of social inclusion and employment to prepare for their future participation in the open method of cooperation at EU level and for their preparation for the future intervention of the European Social Fund. The importance of investing in sustainable health systems also needs to be underlined.

In the fisheries sector, the main priority is to reinforce the capacity of the national administrations concerned to apply Community legislation, particularly in the area of market regulations and maintenance of the fishing fleet register. Enforcement of Community rules on fishing, such as catch limits and technical regulations, will also require a significant increase in resources in some candidate countries.

In the field of justice and home affairs, most countries have made good progress in all areas of the acquis. In particular, each country's Schengen Action plan has allowed them to structure the necessary key actions and to advance in their implementation. Administrative and judicial capacity needs to be markedly reinforced, in particular in the context of border management, fight against fraud, corruption, money laundering and organised crime.

In the field of taxation, the generally good legislative alignment needs to be completed in most countries, in particular as concerns VAT and excise legislation. Administrative capacity needs further strengthening and efforts need to be mobilised for the computerised tax information systems to be implemented and become operational.

In the area of external relations, candidates have reached a good level of alignment with the acquis. However, decisive steps are needed as a matter of urgency to bring the bilateral investment treaties in conformity with Treaty obligations. Failure to do so will mean that the conflict between the bilateral investment treaties and Treaty obligations will need to be resolved through the Accession Treaty.

For a limited number of sectors, this year's Reports identify, for individual countries, areas of the acquis where special efforts are needed, underlining, in some cases, the measures which need to be urgently taken. Special efforts from several candidates are required, in particular in the sectors outlined below.

In the customs sector, alignment with the acquis, although very advanced, still needs to be completed in some countries. Special efforts should now focus on further reinforcing the administrative capacity to apply the acquis in this sector and on information technology development. In particular, preparations for ensuring full interconnection of the national systems with Community customs information technology systems need to be pursued or accelerated depending on the countries. The capacity of the customs services to combat customs fraud also needs to be strengthened in a number of countries. In addition, all countries need to take the necessary steps to prepare for the application of measures and provisions that will be introduced only at the time of accession, including in some cases in relation to free zones.

In the agriculture sector, most countries need to focus their efforts on finalising alignment of their legislation with the Common Agricultural Policy acquis and further reinforcing their administrative capacity to implement and enforce it. In particular, very few candidate countries are at an advanced stage regarding the setting up of the integrated administration and control scheme (IACS), including the land parcel identification system which is indispensable for the management and control of direct payments. Many candidates need to step up their efforts to build up an operational IACS by accession and for some candidate countries urgent and very serious efforts are required on key decisions and related funding if IACS is to be operational by accession. If the required administration and control structures are not fully operational or do not operate correctly upon accession, the candidates concerned will be unable to benefit fully from the support systems under the common agricultural policy, or will be required to reimburse EC funds already received. A number of countries need to complete preparations for the paying agency and others still need to conclude the process of agricultural land reform.

Administrative capacity also needs to be reinforced in the veterinary field and that of food safety, where particular attention should be given to ensuring that establishments are duly upgraded to meet Community standards. Failure to do so could preclude candidates from availing fully of the opportunities presented by the Internal Market in this domain.

In the regional policy sector, while a legislative framework for the implementation of the acquis has generally been introduced, candidates need to clearly define their final implementation structures and reinforce their administrative capacities. In particular, countries need to focus their efforts on completing their programming documents. They need to strengthen inter-ministerial co-ordination and partnership as well as to reinforce their systems and procedures for effective monitoring, financial management and control of structural and cohesion funds at all levels. The Commission draws also the attention to the fact that Community funding can not be approved until all conditions ensuring sound management of the funds are in place.

In the financial control sector, where legislative alignment is well advanced in most countries, candidates need to focus their efforts on implementing adequate Public Internal Financial Control and External Audit systems. For Community funding to be available, all conditions ensuring the sound management of these funds need to be in place. Countries need to ensure the proper management of pre-accession funds and future structural funds and to strengthen their administrative structures to protect the Community's financial interests by the second half of 2003.

The progress made over the past years results in a situation where most candidate countries already implement considerable parts of the acquis. In most countries, the necessary legislative framework and implementing structures are in place to a large extent. Detailed plans have been agreed, in particular in the negotiations and in the Action Plans, to cover the identified remaining gaps and are being implemented.

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