The European Neighbourhood Policy

1. The European Neighbourhood Policy 2006 Euro-Mediterranean Summit of Economic and Social Councils and Similar Institutions Ljubljana, 16 November 2006 Andreas Herdina European Commission

2. The EU’s political geography- Policies towards non-EU-members - • EFTA / EEA – multi- and bilateral accords • Candidate Countries (Bulgaria, Romania, Turkey, Croatia, Macedonia) - the Accession Process • “Potential candidates” (Albania, Bosnia & Herzegovina, Serbia, Montenegro) – the Stabilisation and Association Process • Neighbours – the European Neighbourhood Policy

3. The EU and its neighbours

4. ENP partners The immediate neighbours of the enlarged EU … but not candidate countries or “potential candidates” • Ukraine, Moldova, Belarus • Georgia, Armenia, Azerbaijan • Syria, Lebanon, Israel, Palestinian Authority, Jordan, Egypt, Libya, Tunisia, Algeria, Morocco • Strategic Partnership with the Russian Federation

5. Russian Federation Not included in the European Neighbourhood Policy. Instead, a Strategic Partnership based on 4 “common spaces”: • economic (incl. environment and energy) - promote integration via market opening, regulatory convergence, trade facilitation, infrastructure • freedom, security and justice – JHA, human rights and fundamental freedoms • external security - partnership on security issues and crisis management • research and education (incl. cultural) - capitalise on strong intellectual and cultural heritage • “Road maps” agreed in May 2005

6. Aims and principles • Partnership-for-reform: supports reform and modernisation (inter alia by projecting internal EU policies) as a contribution to prosperity, stability, and security (aim: “ring of well-governed countries”) • Responds to countries’ situation (differentiation) • Joint ownership(agreed priorities)

7. Fundamentals Good governance, based on: • Democracy, human rights, rule of law • Sound macro-economic management, market economy and sustainable development • Sectoral reforms, institutional capacity • Joint response tocommon challenges e.g. prosperity gaps, migration, crime, environment, public health, terrorism ...

8. Fundamentals • A comprehensive policy – across three pillars (Community and Union competencies); support of all EU Institutions • Distinct from EU enlargement (does not prejudge in either way) • Rewards progress (positive and inherent conditionality) • Convergence of EU Member States’ orientation towards a common neighbourhood (policy of EU-25) • Civil society / academia taking keen interest in ENP

9. Development of the ENP

10. Content of the policy • Focus and direction: A comprehensive agendafor relations with EU neighbours • Aim: good governance and institutional reform • Offer: progressive economic integration, deepening political co-operation • Based on: values and common interests • Assistance for: agreed reform objectives, economic and social development and cross-border cooperation

11. Method • Adds a detailed agenda and accountability for progress on both sides; promoting and monitoring implementation; Progress Reports • Selective use of experience from supporting reform in candidate and pre-candidate countries, “twinning” and TAIEX… • Gradual approximation with the acquis communautaire in selected relevant areas • “Socialisation” model: European “soft power”; policy for the long haul

12. ENP Action Plans • Key operational instruments • Country-specific, tailor-made political documents • Jointly defining agenda on political and economic reforms • Short & medium-term priorities (3 – 5 years horizon) • Guidance for assistance programming

13. ENP Action Plans – main areas Same six chapters in all Action Plans, content is specific to each country: 1)Political dialogue and reform 2) Sound macro-economic management, economic and social cooperation and development 3) Trade related issues, market and regulatory reform 4) Co-operation in Justice, Freedom and Security 5) Sector-policies: Transport, energy, information society, environment, research and development 6) Human dimension: People-to-people contacts, civil society, education, public health

14. Building on existing framework ENP builds on: • existing legal and institutional agreements (Partnership and Co-operation Agreements, Association Agreements established under the Euro-Mediterranean Partnership) • established bodies (Association and Co-operation Councils, Committees, sub-Committees) as mechanisms for promoting and monitoring implementation of Action Plans • “ Tracks exist, 3-5 year schedule is new “

15. ENP and Euro-Med • Same general objectives; ENP complements the Euro-Mediterranean Partnership (EMP) which continues as the multilateral element of EU relations with Southern Mediterranean neighbours • ENP:additional bilateral commitments and accountability, incentives and opportunities • Two tracks: multi-lateral (EMP) – bilateral (ENP) • Differentiated tools and methods (precise reform goals and steps, regulatory harmonisation) Example: Barcelona envisages trade integration, focusing on tariff issues, ENP has a “beyond-the-border” angle on economic integration (inclusion in networks and markets, regulatory alignment etc.) • ENP helps to realise the full potential of the EMP

16. Role of Civil Society • Meetings with civil society groups in the course of ENP Action Plan preparations • Actual ENP Action Plan consultations between officials (EU – partner Government) • Contact with civil society for feedback (particularly on human rights, business climate, consumer and environmental rights etc.) to promote and monitor implementation of the ENP Action Plans • Information material available (Commission website, brochures, etc.)

17. EC financial support 2000 - 2006: • €8.4bn(MEDA €5,3bn, TACIS €3,1bn) • EIB lending (€2bn Mediterranean, €500m Eastern Europe) 2007-2013: - European Neighbourhood & Partnership Instrument (ENPI) – Regulation (EC) No 1638/2006 of 24 October 2006, O.J. No L 310 of 9 November 2006 • More flexible, policy-driven instrument • Supporting priorities agreed in the ENP Action Plans • simplified approach for cross-border co-operation • Technical assistance for institutional capacity-building • Budget: €11.97 bn ( ~ 45% increase over previous FP) • Grant money to leverage EIB and other IFI lending • World Bank gives ENP Action Plans consideration

18. Summary: Added value of ENP • Focuses an immediate neighbourhood; special category of external relations • Increased scope and intensity of relations – comprises all policy fields (all pillars); “beyond border” partnership more than classical external relations • Encouragementof reforms and development (political, economic, social, institutional) • New forms of financial and technical assistance (addition of TAIEX, twinning, budgetary support to sector-specific reforms, etc.)

19. Conclusions • External relations’priority of the Commission; part of the portfolio of Commissioner Ferrero-Waldner • An ambitions andenhanced political framework for EU relations with neighbouring countries • Of mutual, long-term interest; no alternative to ENP: non-engagement in neighbourhood not an option • Commission Communication of 29 November 2006 on “strengthening the ENP”

20. ENP Website Dedicated web site on Europa server under “Commission – Europe in the World”: http://ec.europa.eu/comm/world/enp