Re: Monitoring Report on the State of Preparedness for Eu Membership of Bulgaria and Romania
Brussels, 31st May 2006
O/REF: note N-036-2006-EN
RE: MONITORING REPORT ON THE STATE OF PREPAREDNESS FOR EU MEMBERSHIP OF BULGARIA AND ROMANIA
The Commission adopted on 16th May its monitoring reports on Bulgaria's[1] and Romania's[2] preparedness for EU accession. In the light of its findings the Commission considers that Bulgaria and Romania should be prepared for EU membership on 1 January 2007, provided that they address a number of outstanding issues. The Commission presents a carefully calibrated approach that is aimed at ensuring the continuation of the reforms in both countries up to and beyond accession.
The accession negotiations with Bulgaria and Romania were successfully concluded in December 2004.
The Accession Treaty was signed in April 2005. Bulgaria, Romania and 14 Member States have already ratified it. The Treaty envisages accession on 1 January 2007 unless the Council decides, upon a Commission recommendation, to postpone it until 1 January 2008.
The Commission is firmly committed to ensuring that both countries successfully complete their final preparations for accession. To that end, it has closely monitored the progress made by Bulgaria and Romania and has provided targeted support to help them in their reform efforts.
Both countries can be commended on their achievements in successfully transforming their political and economic systems into functioning democracies and market economies. The Commission’s October 2005 report confirmed that Bulgaria and Romania met the political criteria for membership and showed that both countries had continued progress towards meeting the economic and acquis criteria in full.
The Commission’s reports adopted on 16th May review Bulgaria's and Romania preparations for membership, focusing on the areas in need of further improvement in the light of the three Copenhagen accession criteria. Accordingly, these reports contain three main parts: political criteria, economic criteria, commitments and requirements arising from the accession negotiations.
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BULGARIA
1. Political criteria
Since the October 2005 report, there has been progress in a number of areas, including the reform of the judiciary. As regards the justice system, the new penal procedure code and a legal framework for legal aid entered into force.
Bulgaria has taken a number of measures to fight corruption. A code of ethics was adopted for the executive branch. An anti-corruption strategy for 2006-2008 was adopted.
Moreover, Bulgaria has made progress in the field of public administration, in particular with the adoption of amendments to the laws on administration and on civil servants, and a new Code of Administrative Procedure.
The strategy to decentralise the administration has not been adopted yet. Bulgaria remains a country of transit and to a lesser extent a country of origin and destination for trafficking in human beings.
2. Economic criteria
Bulgaria is a functioning market economy. The continuation of the current reforms should enable it to cope with competitive pressure and market forces within the Union in the near term. Bulgaria has broadly maintained macroeconomic stability and advanced structural reforms.
3. Commitments and requirements arising from the accession negotiations
Bulgaria has reached a considerable degree of alignment with the acquis.
The October 2005 report concluded that Bulgaria would be ready by accession in a large number of areas. A number of other areas required increased efforts, and 16 areas gave rise to serious concern.
Since then, further progress has been made. Bulgaria should be ready by accession in the following additional areas if the current pace of progress is maintained: public procurement, mutual recognition of industrial product specifications; freedom to provide non-financial services; most agriculture Common Market Organisations;
There remain six areas of serious concern, which require urgent action: setting up a proper integrated administration and control system (IACS) in agriculture; building-up of rendering collection and treatment facilities in line with the acquis on TSE and animal by-products; clearer evidence of results in investigating and prosecuting organised crime networks; more effective and efficient implementation of laws for the fight against fraud and corruption; intensified enforcement of anti-money laundering provisions; strengthened financial control for the future use of structural and cohesion funds
Agriculture
Horizontal issues
Legislation to set up a Paying Agency (PA) for the administration of national and EU support to agriculture and rural areas, forestry and fisheries and on the strategic decisions was adopted by Parliament in February 2006, in the form of the amendment to the Law on Farmers’ Support. Critical issues have been formalised, such as the option to apply the Single Area Payment Scheme (SAPS), to decide on the minimum size of eligible agricultural holdings, the complementary national direct payments and the appropriate budget.
The original master plan for setting up the Integrated Administration and Control System (IACS) has been updated to reflect the delays in its implementation. Work has just started for the establishment of the link between the farmers and theLPIS blocks, needed to supply the farmers with graphical material indicating boundaries ofthe reference parcels, their single identification number and their area. Much work has beendone in relation to adopting and installing of new software but it has not been subject to finaltesting.
Concerning trade mechanisms, formal coordination has been established between all bodies involved (State Fund for Agriculture, Customs Service, National Veterinary Service and Phyto-Sanitary Service). In general, preparations are on track but efforts are still needed as operational and detailed knowledge on trade mechanisms is still generally missing.
Common market organisations (CMOs)
In general an effective administrative structure is being set up for enforcement of all these market organisations, in the form of recruitment of additional staff, appropriate training and clear definition of procedures.
With regard to beef carcass classification, the Bulgarian legislation has been fully harmonised, but it is not in force at present. In order to implement the classification properly by accession, training of the classifiers in the abattoirs needs to be accelerated.
Veterinary and phytosanitary issues, including food safety
By adopting the Veterinary Framework Law (VFL) Bulgaria has established the basis for transposing into its national legislation the acquis concerning animal health, animal welfare, veterinary public health and the horizontal veterinary control instruments. The VFL entered into force on 1 May 2006.
The legislation on transmissible spongiform encephalopathy (TSE) and animal by-products has been transposed. The ban on feeding certain processed animal proteins to farmanimals has been in place since early January 2006.
Concerning TSE surveillance, in particular the collection, treatment and testing of fallen stock, Bulgaria has presented a national collection plan. This plan needs further improvement. Compliance with the EU requirements as regards one of the two rendering plants, located in Varna, has not been demonstrated yet.
Transposition of the principles of the legislation on the veterinary control system in the internal market is covered by the VFL.
Legislation transposing the acquis on the identification and registration of animals is now in place for all relevant species as well as for sanctions and control issues. A bovine identification and registration database has been set up.
The acquis on the financing of veterinary inspections and controls has been transposed. Preparations are well on track.
Then, the legislation on veterinary checks on third-country imports and rules on imports has been transposed. One of the eight long-term veterinary border inspection posts (Kapitan Andreeovo on the land border with the Turkey) is operational, but few adaptations are still required. Works have started and equipment for setting up the others has been contracted.
The necessary infrastructure for the seven long-term veterinary border inspection on the UE’s future external borders in Bulgaria as not been established nor have the EU inspection procedures and import conditions yet been enforced. Preparations need to be stepped up considerably.
General measures on animal disease control (vaccination ban and certain eradication measures) have been transposed into Bulgaria’s national legislation.
Furthermore, the Veterinary Framework Law provides the legal basis for enforcing legislation on veterinary public health in establishments. Alignment with the new EU hygiene package and upgrading of establishments are continuing.
As regards enforcement of the acquis concerning common measures (including zoonoses), Bulgaria has identified its upgrading needs and is working on eliminating the deficiencies. As for veterinary public health, enforcement of controls on residues, veterinary medicinal products, contaminants and zoonoses has not been verified, in particular with regard to the diagnostic methods and standards applied in laboratories. Preparations need to be furthered.
ROMANIA
1. Political criteria
Since October 2005 report, there has been progress in a number of areas. Significant steps have been taken in the reform of the judiciary. Implementing measures were adopted as regards the specialised court sections and panels, following the 2005 justice reform.
Romania has made progress in fighting corruption, by establishing sound structures ad launching investigations into a considerable number of high-level corruption cases.
However, certain outstanding issues remain to be addressed. As regards the justice system, the procedural codes need to be further rationalised.
2. Economic criteria
Romania is a functioning market economy. Vigorous implementation of its structural reform programme should enable it to fully meet the economic criteria in the near term. Romania has broadly maintained macroeconomic stability and advanced structural reforms.
However, public expenditure reform must be advanced and tax revenue should be strengthened.
3. Commitments and requirements arising from the accession negotiations
Romania has reached a considerable degree of alignment with the acquis.
The October 2005 report concluded that Romania would be ready, notably by accession in the following additional areas if the current pace of progress is maintained: public procurement, protection of personal data; animal welfare.
Progress has also been made in a number of areas, which no longer give rise to serious concern but still require increased efforts to complete preparations: protection of intellectual property rights or Schengen preparations and management of the future UE external borders.
Increased efforts are also needed for: industrial product horizontal and procedural measures; capital requirements for banks and investment funds, motor insurance; horizontal environmental legislation, nature protection, fight against organised crime or judicial co-operation.
Agriculture
Horizontal issues
The broad institutional framework for the two paying agencies is now in place and the overall administrative capacity as been strengthened. The role and mandate of the agencies have largely been defined.
But important deficiencies continue to exist: there is a lack of proper offices premises, equipment, procedures and IT systems.
The overall administrative capacity and infrastructure of paying agencies remain sources of serious concern and should be strengthened.
The original master plan for setting up the Integrated Administration and Control System (IACS) has been updated to reflect the delays in its implementation.
Furthermore, the Land Parcel Identification System (LPIS) is not yet completed. Work has only just started for the establishment of the link between the farmers and the LIPS blocks.
Purchase of the hardware and development of the IACS software should be urgently stepped up. The current pace of progress would not allow the IACS/LPIS system to be fully operational upon accession.
Legislation on trade mechanisms has been further aligned. However, cooperation between the main players in trade mechanisms remains weak.
Common Market Organisations (CMOs)
Regarding the CMOs, some progress has taken place in the majority of sectors although effective and administrative structure for the enforcement of these market organisations remains to be set.
As regards beef meat, sheep meatand pig meat sectors, the legislation has been further aligned with the acquis. The administrative capacity for the introduction of carcass classification and price reporting systems has been developed but is not yet operational.
Veterinary issues
As regards TSE (transmissible spongiform encephalopaties) and animal by-products, only limited developments can be reported.
Enforcement of the feed ban in companies with their own processing facilities is not guaranteed (stocks of beef and bone meal have not yet been destroyed). Appropriate rendering, collection and treatment facilities for high-risk material are not yet in place.
Concerning establishment of the veterinary control system in the internal market, identification and registration of animals and their movements has further advanced and the database is being completed. As regards veterinary checks on imports from third countries and rules on imports, tenders were successfully concluded for all of the eight border inspection posts (BIPs) and construction works have started.
As regards animal disease control, the acquis has been transposed and is implemented. A national strategy for the eradication of classical swine fever which as preventive vaccination as of January 2006 has been adopted and is being reviewed.
A number of controls on exports of equines have been performed in trade in live animals and animal products.
Concerning public health, the implementation of the upgrading programme for the agri-food establishments is on-going. The number of “non-compliant establishments without an upgrading plan” has been considerably reduced.
The National Sanitary Veterinary and Food Safety Autority (NSVFSA) has taken good steps to introduce the various elements needed for a control system for animal welfare. But the administrative capacity of the NSVFSA in zootechnics has not improved, preparations in this sector should be accelerated.
Furthermore, the control system for animal nutrition needs further improvement in order to meet food and feed safety requirements. Preparations need to be accelerated in this field.
Thus, Bulgaria and Romania have continued to make progress in preparations for membership. In many areas the countries are generally meeting their commitments or are on track to fulfil the acquis requirements. However, a number of outstanding issues still need to be addressed. Some of these require increased efforts, and in a few cases immediate action is needed.
The Commission will report on Bulgaria and Romania’s progress in addressing the outstanding issues no later than early October. On this basis, the Commission will consider whether the date of is accession to the EU on 1 January 2007 can be maintained. This report will also specify any areas where safeguards or ether remedial measures may be needed upon accession.
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