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Doc. 7955

6 November 1997

Enlargement of the European Union

Report

Political Affairs Committee

Rapporteur: Mr Eisso Woltjer, Netherlands, Socialist Group

Summary

The respect of commitments and obligations resulting from Council of Europe membership should be taken into account in the assessment by the European Union of compliance with the political criteria for EU membership. The opening of negotiations would have a major psychological impact and is likely in itself to facilitate the ongoing reforms in the applicant states. It would therefore be appropriate to invite the widest possible number of applicant states to join the first wave of negotiations.

The Council of Europe's involvement in the political and legal preparation of candidates for EU membership makes its Assembly and the Committee of Ministers useful fora for parliamentary and political dialogue of all countries concerned on the issues related to EU enlargement

I. Draft recommendation

1. The Assembly notes that the European Council, at its forthcoming meeting in Luxembourg, will decide on the opening of negotiations on European Union (EU) membership with applicant states, all of which are member states of the Council of Europe.

2. The forthcoming enlargement of the EU is an event of historical importance. A wider EU would increase economic prosperity and strengthen political stability throughout Europe.

3. The Assembly notes that eligibility for membership has been affirmed by the EU for each of the 12 Council of Europe member states that applied for accession, namely Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Turkey.

4. The European Council, meeting in Copenhagen in June 1993, agreed on a set of economic, legislative, administrative and political criteria for membership in the EU. The political criteria require the achievement of stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities. These should include absence of conflicts with neighbouring states.

5. According to the Treaty of Amsterdam, any European state which respects the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law, may apply to become a member of the EU.

6. The EU Commission, in its "Agenda 2000" presented in July 1997, considered that Slovakia and Turkey did not satisfy the political criteria for membership. It found that the Czech Republic, Estonia, Hungary, Poland and Slovenia could be in position to satisfy all the conditions of membership in the medium term. The Commission therefore proposed to open negotiations with these five states, in addition to Cyprus, for which a decision to open negotiations had already been taken by the European Council, following a positive opinion by the Commission in July 1993.

7. The Assembly considers that the membership in the Council of Europe should constitute prima facie evidence of compliance with the political criteria for EU membership. A final assessment of such compliance by the EU institutions should take into account the results of the Council of Europe procedures - both of the Committee of Ministers and of the Assembly - for monitoring respect of obligations resulting from membership and of commitments entered into upon accession.

8. Membership of the Council of Europe and signature and ratification of the European Convention on Human Rights, the European Social Charter, the European Convention for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment, the European Charter on Local and Self-Government as well as of binding Council of Europe legal instruments for the protection of minorities should be significant arguments in favour of admission in to the European Union, and should also deserve solidarity and mobilisation of the Council of Europe in favour of such admission.

9. The Assembly believes that opening negotiations would in itself encourage the applicant states to continue and sustain their efforts to meet the criteria for EU membership. Consequently, the Assembly considers that negotiations should be opened with the widest possible number of applicant states which are close to meeting the political criteria, while recognizing that the economic part of the Copenhagen criteria will play a role in the decision of the European Council.

10. The Assembly considers that the Treaty of Amsterdam fell short of reforming EU institutions to prepare them for the enlargement. The Assembly considers it essential that such reforms be introduced rapidly, in consultation with the applicant states, and without causing any delays in the process of enlargement.

11. The EU Commission has proposed to create a European Conference as a body for multilateral consultations between the EU members states and applicant states on issues arising from the Common Foreign and Security Affairs and Justice and Home Affairs. To avoid the proliferation of institutions, the Assembly considers that such consultations, as well as other accession related activities, could be effectively carried out on through existing mechanisms and through closer co-operation with the Council of Europe.

12. The Assembly, bringing together elected representatives from all EU member states and European countries aspiring to closer relations with the European Union, is a useful forum for parliamentary dialogue on the political criteria for EU enlargement. The Committee of Ministers could serve as a platform for intergovernmental political dialogue on this issue.

13. In this context, the Assembly notes the conclusions of the last Quadripartite Meeting between the Council of Europe and the European Union on 15 September 1997 in Brussels, recognizing the significance of the Council of Europe's aims and activities in the compliance with the political criteria for accession to the EU.

14. The Assembly recommends that the Committee of Ministers bring to the attention of the EU Council of Ministers, before the Luxembourg meeting of the European Council, the following considerations and proposals:

i. negotiations on EU membership should be opened with the widest possible number of applicant countries, which fulfil the Copenhagen criteria. Guarantees should be provided for countries unable to participate in the first wave of negotiations for having their candidatures reviewed at six month intervals and a political commitment should be made by the European Council to open negotiations as soon as possible;

ii. a commitment should be made to undertake the necessary reforms of EU institutions without causing any delays to the process of enlargement, and to consult the applicant countries on these reforms before any decision is taken;

iii. consultations on accession related issues as well as assessment and assistance related to the political criteria for membership should be carried out through the most effective use of existing institutions, programmes and practices, and in particular:

a. dialogue at the level of heads of state and government in the margin of European Council meetings;

b. political dialogue in the Committee of Ministers of the Council of Europe;

c. the monitoring procedures of the Council of Europe's Committee of Ministers and the Assembly;

d. the Council of Europe's programmes and activities aimed at strengthening of democratic institutions, the rule of law and protection of human rights and rights of minorities.

II. Explanatory memorandum by the Rapporteur

A. Introduction

1. Twelve Council of Europe member states applied for and are actively pursuing European Union (EU) membership. These are Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Turkey. Switzerland decided to freeze its application following a failed referendum on its participation in the European Economic Area in 1992, while Malta did the same after the change in government following parliamentary elections in 1995.

2. In its communication "Agenda 2000" released in July 1997 the EU Commission, acting on the request by the European Council, delivered opinions on candidatures of 10 central and east European countries. An evaluation of the Turkish candidature is also part of the communication, which is resumed in the annex. The Commission proposed to open negotiations with the Czech republic, Estonia, Hungary, Poland and Slovenia. A decision to open negotiations with Cyprus six months after the conclusion of the last EU intergovernmental conference had already been taken by the European Council, following an approval by the Commission in July 1993.

3. The Commission considered that Slovakia and Turkey failed to meet the political criteria for EU membership, i.e. "the achievement of stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities".

4. A decision on opening negotiations is expected at the forthcoming meeting of EU heads of state and government in Luxembourg on 12-13 December.

5. Negotiations are most likely to begin in early 1998, after the expiration of the six months period for Cyprus.

6. The present report was prepared under my mandate as rapporteur on the follow up to the Amsterdam Summit. At its meeting on 23 September 1997 the Political Affairs Committee decided to present a report on the EU enlargement to the Standing Committee on 7 November 1997, with a view to adopting a position of the Assembly before the European Council decides on opening of negotiations.

B. Participation in the first wave of negotiations

7. During the debate in the Political Affairs Committee several members called for simultaneous opening of negotiations with all applicant countries.Others advocated a country-by-country approach, based on the extent of compliance with the economic, political and other criteria for EU membership, as set by the European Council meeting in Copenhagen in June 1993. It is therefore necessary to examine whether the two objectives: i.e. equal treatment of the applicant states and the respect of the Copenhagen criteria can be reconciled.

8. The Copenhagen criteria, agreed by EU heads of state and government in June 1993

are:

- the applicant country must have achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;

- it must have a functioning market economy, as well as the capacity to cope with competitive pressure and market forces within the EU;

- it must have the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union;

The European Council added a further criteria when it linked enlargement to institutional reform by concluding that: "the Union's capacity to absorb new members, while maintaining the momentum of European integration, is also an important consideration in the general interest of both the Union and the candidate countries".

9. The political criteria are virtually identical with the requirements for Council of Europe membership. Logically, an assessment of these criteria should be based on applicant states' respect of commitments and obligations resulting from their membership in the Council of Europe. A final assessment of their compliance with political criteria, at the time of accession, should take into account the results of the Council of Europe monitoring procedures, both of the Committee of Ministers (in which all EU governments are represented) and of the Assembly.

10. Although the economic situations in each applicant country vary considerably, they all have made considerable progress to introduce a market economy and meet the challenges of EU membership. The transition is taking place in difficult economic and social conditions. Some of the requirements for EU membership, such as liberalisation of imports of goods and services, as well as opening of financial and real estate markets are politically sensitive and often unpopular. A decision to open negotiations, which would have a major psychological impact, is likely in itself to facilitate the ongoing economic reforms. This would in no way prejudge the duration and conclusion of negotiations and the applicant states should be required fully to comply with the Copenhagen criteria at the time of accession. It would therefore be appropriate to invite the widest possible number of applicant states to join the first wave of negotiations, it being understood that the economic part of the Copenhagen criteria will play a role in the decision of the European Council at its meeting in December.

C. Institutional reforms

11. The Intergovernmental Conference of the EU concluded by the Amsterdam summit in June 1997 had a task to reform EU institutions in view of enlargement. It was widely acknowledged that the Amsterdam Treaty failed to accomplish this task and that further reforms were needed to prepare the EU for 20 or more members. Among the most important unresolved questions were the composition of the European Commission and the repartition of votes in the Council of Ministers. Some member states recently called for immediate resumption of talks on a new revision of the treaties, which should be completed before the accession of any new members. This request should receive the support of the Assembly, provided that two conditions are fulfilled.

12. Lack of progress on institutional changes should not lead to a postponement of accession of applicant countries meeting the requirements for membership. The condition of "European Union's capacity to absorb new members, while maintaining the momentum of European integration" should be understood as an obligation on EU member states to introduce necessary reforms in time and not as an opt-out clause.

13. Secondly, the applicant states should be consulted before the EU takes decisions shaping their common future. Any reforms decided without such consultation would risk to be regarded as undemocratic and imposed upon new member states.

D. The European Conference

14. In "Agenda 2000", the EU Commission proposed the creation of a single forum bringing together the EU members states and all those European countries aspiring to membership in the EU and linked to it by an association agreement. According to the EU Commission, the European Conference would provide an opportunity for consultations on a broad range of issues arising in the areas of the Common Foreign and Security Policy and Justice and Home Affairs. The Conference would meet each year at the level of Heads of State or Government and the President of the Commission and, on ad hoc basis, at ministerial level.

15. At the last Quadripartite meeting between the EU and the Council of Europe on 15 September 1997 in Brussels, the Secretary General of the Council of Europe expressed concern with regard to the initiative to set up a new mechanism to discuss subjects which were also the concern of the Council of Europe. He also felt that the Conference would risk to increase the feeling of exclusion of countries which would not participate in it. The Secretary General received assurances that the Conference was not intended to become an institution but an ad hoc structure linked to the enlargement. Neither the circle of states nor the subject matters would be the same as in the Council of Europe. These assurances, however, are not entirely convincing.

16. In addition to concerns expressed by the Secretary General, the proposal to set up a new mechanism for consultation among European states should be closely examined in terms of transparency and efficiency of European institutional architecture.

17. It should be recalled that heads of state and government of countries linked to the EU by an association agreement have been regularly invited to the bi-annual summits of the EU. In addition, meetings at ministerial level have been taking place in the framework of the EU's structured dialogue with these countries. It therefore seems that the European Conference would only formalise an already existing practice, without bringing anything substantially new to the relations between the EU and the applicant states.

18. In view of this, it seems that a better use of existing mechanisms would allow not only to maintain but to further develop possibilities for dialogue and consultation. Moreover, it would help to avoid the proliferation of European structures. The Assembly's ongoing dialogue on issues of EU enlargement and its proposal to use the Committee of Ministers of the Council of Europe as a forum for political dialogue are of particular importance in this regard. The fact that the membership in the Council of Europe is wider than the 15 EU member states and 12 candidates for EU accession should play in favour of greater use of the Council of Europe mechanisms. The issue of EU enlargement is of common concern to all the Council of Europe member states, which all but one (Croatia) have entered into agreements with the EU.

E. Conclusions

19. The respect of commitments and obligations resulting from Council of Europe membership should be taken into account in the assessment of the compliance with the political criteria for EU membership. The opening of negotiations would have a major psychological impact and is likely in itself to facilitate the ongoing reforms in the applicant states. It would therefore be appropriate to invite the widest possible number of applicant states to join the first wave of negotiations, it being understood that the economic part of the Copenhagen criteria will play a role in the decision of the European Council.

20. Further reforms of EU institutions in view to enlargement should be adopted in consultation with the applicant states. They should not cause any delays in the process of enlargement.

21. The Council of Europe has a crucial role in upholding human rights and supporting pluralist democracy, which are the essence of the political requirements for EU membership. This has been reaffirmed by the European Council meeting in Dublin in December 1996 and the last Quadripartite meeting between the EU and the Council of Europe in September 1997. At the Second Summit of the Council of Europe in October 1997 the President of the EU Commission Mr Jacques Santer paid tribute to the Council of Europe's vigilance in monitoring the respect of commitments and assistance provided to new and future member states. On the same occasion the President of the Assembly stated: "For the past eight years the Council of Europe has been conducting the preliminary political and legal work in the new member states which is vital for their subsequent admission to the EU. Would it not be sensible to fall back on the Council of Europe's experience and the outcome of its monitoring procedures in the European Union's discussions on enlargement?".

22. Any decision to create new mechanisms for consultation between European states should be assessed in terms of efficiency and transparency of European institutional architecture. A better use of existing mechanisms would allow not only to maintain but to further develop possibilities for dialogue and consultation. It would also avoid the risk of proliferation of European institutions. The Council of Europe's involvement in the political and legal preparation of candidates for EU membership makes its Assembly and the Committee of Ministers useful fora for parliamentary and political dialogue of all countries concerned on the issues of EU enlargement.

Annex I

Summary of the developments on enlargement of the European Union

A. Agenda 2000

1. Agenda 2000 is a Commission document on developing a strategy for strengthening growth, competitiveness and employment, for modernising key policies and for extending the Union's borders through enlargement. These objectives are closely related.

2. The applicant countries are: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Turkey. Agenda 2000 assented applications of 10 east and central European countries and Turkey. The decision to begin negotiations with Cyprus had already been taken by the European Council.

3. The challenges facing the Union are threefold:

- strengthen and reform the Unions policies so that they can deal with enlargement and deliver sustainable growth, higher employment and improved living conditions for Europe's citizens;

- negotiate enlargement while at the same time preparing all applicant countries for the moment of accession;

-financing enlargement, the advance preparations and the development of the Union's internal policies.

I. Agenda 2000 and Enlargement

Applying the criteria

4. At the request of the Madrid European Council, the Commission prepared opinions on membership applications of associated countries of central and eastern Europe. Its task was different from the last enlargements, because it went beyond assessing the candidates' capacities to apply the whole body of EU laws, regulations, norms and standards, known as the aquis communautaire.

5. This in itself has greatly expanded, but the Copenhagen criteria also included broad political and economic judgements. The Council required the Commission to look into the future and assess the progress candidates could be expected to make, and also to anticipate future developments in the Union's policies.

Copenhagen criteria

6. In establishing its opinions on the application for membership of the ten associated central and eastern European countries, the Commission used the criteria laid down by the Copenhagen European Council in June 1993:

a. the applicant country must have achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;

b. it must have a functioning market economy, as well as the capacity to cope with competitive pressure and market forces within the EU;

c. it must have the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union;

7. The European Council added a further criteria when it linked enlargement to institutional reform by concluding that: "the Union's capacity to absorb new members, while maintaining the momentum of European integration, is also an important consideration in the general interest of both the Union and the candidate countries".

II. The Commission's Conclusions

Democracy and the Rule of Law

8. On the whole, all applicant countries have constitutions and institutional arrangements that clearly correspond to the principles of democracy. But subscribing to principles is not enough; they have to be practised daily.

9. Even though a number of applicant countries still has to make progress in their practice of democracy, only Slovakia failed to meet the required political conditions.

Functioning market economy, competitive pressure and market forces

10. All countries have made good progress in their transition to a market economy but, in general, structural reform still has a long way to go, especially in the banking, financial and social security sectors.

11. While none of the applicants were found to fully meet the economic criteria, some should be able to do so in a few years time. Hungary and Poland come closest to meeting the conditions with the Czech Republic and Slovenia not far behind. Estonia has a market economy but needs to do more to be able to withstand competitive pressure. Slovakia meets the criterion of withstanding competitive pressure, but cannot be regarded as a functioning market economy.

Aims of political, economic and monetary union

12. The applicants have already demonstrated their readiness to contribute to effective common foreign and security policy action.

13. On EMU the applicants are unlikely to be in a condition to join the euro area immediately on accession. Nevertheless, they must conform to the rules governing prospective members of EMU. This means granting independence to their national banks, coordination of economic policies, adherence to the relevant parts of the Stability and Growth Pact and abandoning any direct bank financing of public sector deficits.

Taking on the obligations of membership (aquis communautaire)

14. The applicants have scarcely begun the task of embodying Union legislation in their national laws. While transition periods may be justified in some cases, accession after only partial adoption of the aquis has been ruled out by the European Council.

15. An important related question is the capacity of their administrative and judicial systems to apply and enforce the aquis.

16. On the basis of a comprehensive and objective evaluation of the extent to which the countries from central and eastern Europe meet the above criteria, the Commission recommends that accession negotiations start (expected in early 1998) with Hungary, Poland, Estonia, the Czech Republic and Slovenia. The European Council has already decided that accession negotiations with Cyprus will start six months after the completion of the IGC, following the positive Opinion from the Commission in 1993.

17. The Commission underlines that a decision to open accession negotiations simultaneously with these countries does not necessarily imply that they will be concluded simultaneously.

III. Strategy for Enlargement

Negotiations

18. The negotiations will define the terms and conditions on which each applicant accedes. Some transitional periods may be needed in well-justified cases, but the objective of the EU should be that the new members apply the aquis upon accession. Therefore the actual timetable for accession will depend on the progress made by individual countries in adopting, implementing and enforcing the aquis.

19. Anxious to bring more drive in the pre-accession period, the Commission recommends a new framework, an Accession Partnership with each applicant country, and a new system of planning and assessing each country's performance.

Accession Partnerships

20. The Accession Partnerships will bring together all forms of assistance to the countries of central and eastern Europe within a single framework. They would involve:

-precise commitments by applicant countries to democracy, stable macro-economic policies and nuclear safety;

-a national programme for adopting the aquis within a precise timetable according to the priorities identified in the Commission's opinion. EU financial assistance will be conditional on achieving these objectives and progress made;

-mobilising all of the Union's resources that are supporting the applicants preparations. For the moment, this means the PHARE programme (the EU's aid programme to central and eastern Europe) but other new forms of assistance can be envisaged.

21. The Commission recommends that as they progressively adopt the aquis, applicant countries should have the opportunity to participate in Union programmes.

The European Conference

22. Emphasising that enlargement is a long-term process affecting the whole of Europe, the Commission proposes an annual conference at heads of State or Government level and the President of the Commission, involving EU Member States and European countries with an association agreement within the EU. The conference would be a forum for consultations on a broad range of issues in the areas of common foreign and security policy and justice and home affairs.

Annual report

23. In order to review their progress, the Commission intends to submit an annual report to the European Council, beginning at the end of 1998. The progress of applicant countries in fulfilling the targets set out in each Accession Partnership will serve as a basis for the reports.

24. When an applicant country is judged to have fulfilled the necessary conditions to enter into accession negotiations, the Commission will forward a recommendation tot the Council to that effect.

IV. Turkey, Cyprus and Malta

Turkey

25. Responding to a request from EU Foreign Ministers for suggestions on further developing relations with Turkey, the Commission carried out a survey of the Turkish economy and of potential for additional co-operation. Political and economic developments in relation with this country are set out in Agenda 2000. Agenda 2000 confirms Turkey's eligibility for EU membership and the Commission also affirmed that Turkey will be judged by the same objective standards and criteria as other applicants.

26. The Association Agreement and the custom union with Turkey provide the foundations for building an increasingly close political and economical relationship. In a communication of 15 July 1997 the Commission proposes deepening the relations with Turkey. In this process the EU attaches particular importance to Turkey's progress in pursuing democratisation and the protection of human rights (major improvements on this subject are still to be made); the establishment of good neighbourly relations between Greece and Turkey; respect for the principles of international law; and the achievement of a just and lasting settlement in Cyprus.

Cyprus

27. The accession negotiations with Cyprus will be launched by the beginning of 1998 as agreed by the European Council in March 1995. The Commission will, in consultation with the government of Cyprus, continue its bi-communal activities and its projects aiming at informing the Turkish-Cypriot community about the advantages of accession of Cyprus to the EU.

Malta

28. The EU and Malta have an Association Agreement which was signed in December 1970. Malta applied for EU membership in 1990 and the Commission adopted a positive opinion in June 1993. Following the October 1996 elections, the new Maltese government suspended Malta's application for EU membership.

V. Enlargement and the Impact on EU policies

29. The Commission made a preliminary report to the European Council at Madrid which identified reinforced peace and security as well as economic growth and development as the main benefits of enlargement.

30. Agenda 2000 deepens this analysis of the impact of enlargement on the EU's policies, especially in the areas of agriculture and structural funds. It confirms that enlargement of the EU can bring considerable political and economic advantages and will further EU policies.

31. At the same time, enlargement will bring greater diversity to the EU requiring sectoral and regional adjustments which should be adequately prepared. It is therefore vital to use the pre-accession period to the full so that applicants can apply the existing aquis upon accession or following reasonable transition periods.

32. The enlarged EU will carry greater weight in world affairs and will be a strong partner in international trade negotiations.

B. Forthcoming events on enlargement issues

- On 3 and 4 December 1997: the European Parliament will have a debate in Brussels on the enlargement of the European Union.

- December 1997: the General Affairs Council will present a detailed report on Agenda 2000 to the European Council of Heads of State or Government meeting in Luxembourg.

- Early 1998: while unlikely to deal with all of the issues raised by the communication, the European Council is expected to give the green light to the start of enlargement negotiations.

Annex 2

Reporting committee: Political Affairs Committee.

Draft recommendation adopted by the committee with three abstentions on 6 November 1997.

Members of the committee: Mr Bársony (Chairman), Mr van der Linden (Vice-Chairman), Mrs Ojuland (Vice-Chairperson), MM Antretter, Atkinson, Bakke, Mrs Belohorska, MM Belyaev (Alternate: Mr Lukin), Bergqvist, Bernardini, Björck (Alternate: Mr Hagard), Bloetzer, Chircop, Chornovil (Alternate: Mr Yablonsky), Davis, Deasy (Alternate: Mr Gregory), Diacov, Dokle (Alternate: Mr Koçi), Domljan, Evangelisti, Galanos, Gjellerod, Hornhues, Irmer, Iwinski, Kalus, Mrs Kautto, MM Kirilov, Kuzmickas, Mrs Lentz-Cornette, MM Lopez Henares (Alternate: Mr Puche), Lupu (Alternate: Mr Kelemen), van der Maelen, Maginas, Martínez, Medeiros Ferreira, Meier, Melescanu (Alternate: Mr Badulescu), Mota Amaral, Mühlemann (Alternate: Mr Gross), Musto, Mutman, Nallet (Alternate: M. Baumel), Oliynik, Pahor (Alternate: Mr Jaki_), Palmitjavilo Ribo, Popovski, Prusak, Mrs Ragnarsdottir, MM Risari, Mme Roudy, MM. Schieder, Schwimmer, Séguin, Selva, Sinka, Mrs. G. Smith, Mrs Stepova, Mrs Suchocka, MM Tan, Toshev, Urbain (Alternate: Mr Staes), Vrettos, Woltjer, Ziuganov.

N.B. The names of those members who took part in the meeting are printed in italics.

Secretaries of the committee : Mr Kleijssen, Mr Gruden.