1. The European Neighbourhood Policy

2. The EU and its neighbours

3. The EU and its neighbours - a set of policies -  EFTA / EEA  Candidate Countries (Bulgaria, Romania, Turkey, Croatia)  “Potential candidates” (Albania, BiH, FYROM, SCG) – the Stabilisation and Association process  Neighbours – the European Neighbourhood Policy

4. Which neighbours ? The immediate neighbours of the enlarged EU … but not countries with an accession perspective (Bulgaria, Romania, Turkey, Western Balkans …)  Israel, Jordan, Moldova, Morocco, the Palestinian Authority, Tunisia, Ukraine (partner countries with Agreements in force 2004)  Armenia, Azerbaijan, Egypt, Georgia, Lebanon (new partners or those whose Agreements entered into force later)  Algeria (latest Agreement to enter into force)  Belarus, Libya, Syria (no Agreements in force)  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 Cooperation on the common spaces draws on elements of ENP that are of common interest to the EU and Russia

6. Aims and principles  A new intensified relationship between the enlarged EU and its neighbours  To avoid new dividing lines on the continent  Not about enlargement but is about mutual interest in sharing stability, security, prosperity  To respond to countries’ needs & efforts (differentiation)  By partnership & joint ownership (agreed priorities)

7. Common values & interests Stability, security, prosperity:  Democracy, human rights, rule of law  Market economy and sustainable development  Sectoral reforms  Joint response to common challenges e.g. prosperity gaps, migration, crime, environment, health, terrorism...

8. Development of the ENP 2002/03:Thinking “beyond” EU enlargement: “Wider Europe”, “new neighbourhood”, “ring of friends” 2003/04:  Various Commission Communications and (European) Council Conclusions establish ENP as an EU policy 2004:  Main “ENP Strategy Paper“  First 7 Country Reports + ENP Action Plans 2005:  Implementing first 7 ENP Action Plans  5 more Country Reports and work on next Action Plans

9. Content of the policy  A joint agenda to manage our common space (EU neighbourhood)  Aim: Promote good governance and reform  Offer: progressive economic integration (“stake in Internal Market”), deepening political co-operation  Based on: specific values and common interests  Assistance for : agreed reform objectives, economic and social development & cross-border cooperation

10. How does it work?  Invigoration of existing relations  Selectively using experience from the enlargement process e.g. how to sequence reforms, “twinning” officials & TAIEX (technical assistance) …  Gradual approximation with the acquis communautaire in relevant areas

11. ENP Action Plans  Key operational instruments  Country-specific, tailor-made political documents  Jointly defining agenda on political and economic reforms  Short & medium-term priorities  Guidance for assistance programming

12. ENP Action Plans – main areas Same chapters in all Action Plans, content is specific to each country:  Political dialogue and reform  Economic and social cooperation and development  Trade related issues, market and regulatory reform  Co-operation in Justice and Home Affairs  Sectoral issues: Transport, energy, information society, environment, research and development  Human dimension: People-to-people contacts, civil society, education, public health

13. Building on existing framework ENP builds on:  existing legal and institutional agreements (Association Agreements, Partnership and Co-operation Agreements, Barcelona Process...)  established instruments (Association and Co-operation Councils, Committees, sub-Committees) as mechanisms for promoting and monitoring implementation of Action Plans

14. ENP and the Barcelona Process  Same general objectives. ENP complements the Barcelona Process, which continues to be a key element of EU relations with Mediterranean  ENP offers additional bilateral incentives and opportunities  Differentiated rather than multilateral, new tools and methods (more precise reform goals and steps, regulatory harmonisation)  Example: Barcelona envisages trade integration, focusing on tariff issues, ENP goes beyond to offer economic integration, inclusion in networks etc  ENP will also help to realise the potential of the Barcelona Process

15. EC financial support Current EC budget:  2000-06: €8.4bn (MEDA €5,3bn, TACIS €3,1bn)  Plus EIB lending (€2bn Mediterranean, €500m Eastern Europe)  2004-2006: Neighbourhood Programmes (cross-border) Future: European Neighbourhood & Partnership Instrument (ENPI) currently under negotiation within EU  Much 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  Commission proposal: nearly €15bn

16. Added value of ENP  Focused policy approach, combining various policy instruments  Increased scope and intensity of relations  Encouragement of reforms and development (economic, political, social, institutional)  Increased financial and technical assistance

17. Economic effects ? Still early to quantify but, properly implemented, should contribute, directly & indirectly, to GDP growth in partner countries:  Incentives and support for economic and social reforms  better macroeconomic environment, long-term anchor  Reducing barriers to trade & investment, promoting sub- regional & network integration  investment & growth  Facilitating structural reforms, policy dialogue, improved regulatory framework, institutional modernisation  conducive to growth

18. Conclusions  Key EU external relations priority – political and in terms of financing  An ambitious offer for a new enhanced political framework for EU relations with neighbouring states  Of mutual, long-term interest  How far can we go? … a matter of political will !

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