EU/S.Caucasus: ties should be enhanced through action plans

Europe Information Service
Euro-East
March 4, 2005

EU/SOUTH CAUCASUS: TIES SHOULD BE ENHANCED THROUGH ACTION PLANS,
COMMISSION SAYS

The European Union should boost its political and economic ties with
Armenia, Azerbaijan and Georgia, in return for progress on reforms
under bilateral action plans. That was what the European Commission
recommended on March 2, issuing a series of country reports on
countries covered by European Neighbourhood Policy (ENP) and
suggestions for what the main elements of prospective action plans
should be. ENP is the initiative looking to enhance the EU’s
relations with its post-enlargement neighbours to the East and South.

Reports and reforms.

The Commission adopted on March 2 so-called country reports on Egypt
and Lebanon, and the three South Caucasus countries Armenia,
Azerbaijan and Georgia. These three countries were added to the ENP
in mid-2004. The country reports give a factual account of the
political, economic and institutional situation in the countries
concerned, and of their relations with the EU.

The reports focus on areas which the Commission says would form the
basis of any future action plans, namely:

– Political reform: strengthening democracy, good governance and
dialogue on human rights;

– Economic reform: including promoting a good business and investment
climate;

– Trade, market and regulatory reforms: promoting trade and helping
partner countries to integrate into the global trading system,
encouraging partner countries to apply the standards of the EU’s
internal market;

– Cooperation in the field of justice, liberty and security: judicial
reform and migration issues;

– Infrastructure networks (energy, transport and telecommunications,
information society) and cooperation on the environment;

– People-to-people contacts: education, research and development,
culture, civil society, and the opening of certain Community
programmes.

The reports “indicate the need for continued reform in Armenia,
Azerbaijan and Georgia and for progress in a number of key areas”.
The Commission said that the governments concerned had declared their
determination to address the various challenges identified, to
develop relations with the EU and to integrate further into European
structures. It said it believed that ENP action plans could be used
to strengthen relations and promote implementation of the necessary
reforms. The Commission recommended to EU member states that they
agree that work should begin on the plans.

Priorities and carrots.

The Commission also suggested the key objectives for the prospective
three to five-year action plans. These include, for example, the
decommissioning of Armenia’s Medzamor nuclear power plant and making
progress in Azerbaijan’s WTO accession.

According to the Commission, the action plans – to be negotiated with
each country separately – should provide among other things for:
support for market economy reforms leading to gradual economic
integration into the EU’s internal market; increased financial
support including an extension of the European Investment Bank’s
mandate to the South Caucasus countries as of 2007; possible dialogue
on visa cooperation and readmission agreements (on taking back
illegal immigrants); and possible “new enhanced” agreements with the
EU to replace the current Partnership and Cooperation Agreements on
their expiry.

The Commission also said that it intends to open a delegation office
in Azerbaijan in 2005. Sources explained that the Commission already
has a full-scale office in Georgia, and was preparing to open a
delegation in Baku on the same basis as the smaller-scale operation
(called a “regionalised” delegation office) in Yerevan, Armenia.

EU External Relations/Neighbourhood Policy Commissioner Benita
Ferrero-Waldner said that 2005 would be “the year of delivery” for
neighbourhood policy, beginning the implementation of action plans
already adopted and developing new ones: “The challenge for the EU
and for our partners will be to turn the commitments and aspirations
contained in such plans into reality, through measurable reforms
bringing concrete benefits for our neighbouring countries and their
citizens.”

ENP action plans have already been negotiated with Israel, Jordan,
Moldova, Morocco, the Palestinian Authority, Tunisia and Ukraine.
Formal endorsement is still awaited with Morocco, the Palestinian
Authority and Tunisia, with sources saying that this is expected in
the coming weeks. EU member states decided in June 2004 to include
Armenia, Azerbaijan and in Georgia ENP, on the basis of a strategy
paper issue by the Commission that May. The Commission was invited to
report on progress made by each country with regard to political and
economic reforms.

Next steps.

EU member states must now formally decide whether work on action
plans with the South Caucasus countries should begin. The Commission
said that work would start immediately once this had happened.
Georgian Foreign Minister Salome Zurabishvili told Europe Information
New Neighbours that she hoped that EU member states would agree in
March to launch the action plan. Commission sources said the aim
would be to try to conclude the new plans this year.