The Union’s post-enlargement relations with its Eastern and Southern Neighbours, March 2003

A Communication from the European Commission, published on 11 March 2003, addresses the European Union's relations with some of the countries which will border the Union after the May 2004 enlargement. It focuses specifically on countries to the East and South which, in the words of the report, 'do not currently have the perspective of membership'.

'Over the past decade, the Union's most successful foreign policy instrument has undeniably been the promise of EU membership' said External Affairs Commissioner Chris Patten, adding 'This is not sustainable. For the coming decade, we need to find new ways to export the stability, security and prosperity we have created within the enlarged EU. We should begin by agreeing on a clearer vision for relations with our neighbours.'

The Commission argues that it is in the Union's interests to establish a 'ring of friends' - countries with which it 'enjoys close, peaceful and co-operative relations' - based on mutual economic benefits derived from an extended Internal Market, with free movement of people, goods, services and capital.

Background

On 1 May 2004 the European Union will experience a dramatic expansion, when 10 countries, mostly from Central and Eastern Europe, join the current 15 Member States. The Union's population will rise from 370 million to over 450 million.

New land and sea borders will bring the Union 14 new neighbours, which for convenience are usually divided into three groups:

• Russia
• Western New Independent States (WNIS): Belarus, Moldova, Ukraine
• Southern Mediterranean: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, the Palestinian Authority, Syria, Tunisia

Although the countries are diverse in nature, one characteristic shared by many of their 385 million combined inhabitants is their (relative) poverty: according to the Commission's Communication most of the 14 have a nominal GDP per capita of less than EUR 2000. The poorest countries are Moldova and Ukraine (EUR 417 and EUR 855 per capita respectively); by far the richest is Israel, followed by Lebanon (EUR 19578 and EUR 5284); the figure for Russia is EUR 2382.

Partly because of the social and political problems associated with poverty (including crime and migration), it is one of the issues highlighted in the Commission's Communication: 'All countries in the new neighbourhood are confronted by the opportunities and challenges surrounding Proximity, Prosperity and Poverty.'

Whilst financial assistance is provided to many of the (soon-to-be) neighbouring countries, under various bi- and multi-lateral agreements signed with the EU, it is only one aspect of the relationships. Indeed, the variety of agreements currently in place means that the Union must seek to develop further links on a case-by-case basis, albeit within a coherent framework which offers all countries concerned the same opportunities: 'differentiation between countries would remain the basis for the new neighbourhood policy.'

The Union's relations with Mediterranean countries are currently governed by an agreement reached at the 1995 Barcelona European Council. The Euro-Mediterranean Partnership - known also as the Barcelona Process, which was endorsed in the Common Strategy for the Mediterranean Region adopted by the Santa Maria da Feira European Council in June 2000 - seeks to:

• create a zone of peace and stability based on shared fundamental values, particularly respect for human rights and democracy;
• build a region of shared prosperity through the gradual establishment of a free trade area between the EU and the partners, and among the partners themselves by 2010; this process is accompanied by substantial financial assistance from the EU;
• contribute to better understanding among the peoples of the region and support an active civil society.

Although justice and home affairs only warranted a brief mention in the original 1995 text, cooperation in JHA has become more significant in recent years.

Relations between the European Union and Russia, Ukraine, Moldova and Belarus were subject to a Trade and Cooperation Agreement (TCA), originally concluded between the EU and the USSR in 1989 but, following the disintegration of the latter, extended to each of the New Independent States in 1992.

In 1997/98 the TCAs for Russia, Ukraine and Moldova were superseded by PCAs - Partnership and Cooperation Agreements (a PCA signed with Belarus was never concluded). In addition to political dialogue, PCAs also cover trade, environment, science, culture and cooperation in justice and home affairs.

There are also a number of other agreements. Russia, for example, also has additional agreements with the EU covering textiles and steel, and is (re-) negotiating others, including cooperation on fisheries and on science and technology.

The Commission's intention to publish its Communication was welcomed by the Copenhagen European Council in December 2002.

In February 2003, the European Parliament, in a Report on relations between the European Union and Belarus: towards a future partnership, called on the Commission 'in order to prevent any cracks from appearing in the economic or social structure at the future eastern border of the enlarged EU and to curb smuggling and immigration, to develop Community financial programmes and support for the western regions of the new neighbours to the East, Ukraine, Belarus and Moldova, on the same scale as those already being implemented in the eastern regions of the neighbouring candidate countries'.

The Commission's Communication

The Communication Wider Europe Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours (COM (2003) 104) focuses on the European Union's relations with Algeria, Belarus, Egypt, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the Palestinian Authority, Russia, Syria, Tunisia and Ukraine. It 'considers how to strengthen the framework for the Union's relations with those neighbouring countries that do not currently have the perspective of membership of the EU.'

Relations with the Candidate Countries Bulgaria, Romania and Turkey therefore do not fall within its scope, nor do the countries of the Western Balkans (seen as possible EU members - Croatia submitted an application on 21 February 2003) or the Southern Caucasus (because of their location).

There is a debate still to be had over how far the EU sees itself expanding, but the Communication points out that Article 49 of the Treaty on European Union states that any European country can apply to join the Union (candidates must meet certain criteria). The Communication makes clear that 'In some cases the issue of prospective membership has already been resolved. Accession has been ruled out, for example, for the non-European Mediterranean partners.' However, the Commission emphasises that the question of accession should not be conflated with the current proposal for developing a policy towards the Union's new neighbours; the two issues should be kept apart.

Because their relationships with the EU are currently less well developed than the other countries considered, the Communication gives particular attention to Belarus and Libya, with the Commission suggesting how each might be integrated into the proposed 'Wider Europe Neighbourhood'.

More widely, the picture is of a Union whose enlargement will inevitably reshape its political and economic relations with other parts of the world. It proposes that the EU should aim to develop a zone of prosperity and a friendly neighbourhood - a 'ring of friends' - with whom the EU enjoys close, peaceful and co-operative relations.

The Commission advocates that the EU 'should work to spread the benefits of enlargement for political and economic stability in the neighbouring countries and to help reduce prosperity gaps where they exist.' It identifies two 'overarching objectives' which should guide the Union's efforts to develop its current approaches to the countries and regions concerned:

• to work with the partners to reduce poverty and create an area of shared prosperity and values based on deeper economic integration, intensified political and cultural relations, enhanced cross-border cooperation and shared responsibility for conflict prevention between the EU and its neighbours.
• to anchor the EU's offer of concrete benefits and preferential relations within a differentiated framework which responds to progress made by the partner countries in political and economic reform.'

It further lists a number of 'incentives' which might form the basis of a new neighbourhood policy, and which could be offered to the countries concerned 'In return for concrete progress demonstrating shared values and effective implementation of political, economic and institutional reforms, including aligning legislation with the acquis':

• extension of the Internal Market and regulatory structures
• preferential trading relations and market opening
• perspectives for lawful migration and movement of persons
• intensified co-operation to prevent and combat common security threats
• greater EU political involvement in conflict prevention and crisis management
• greater efforts to promote human rights, further cultural co-operation and enhance mutual understanding
• integration into transport, energy and telecommunications networks and the European Research Area
• new instruments for investment promotion and protection
• support for integration into the global trading system
• enhanced assistance, better tailored to needs
• new sources of finance

However, the Communication is also clear that a new neighbourhood policy should supplement and build on existing policies and arrangements, rather than replace them. As to how its proposals might be implemented, the Commission suggests drawing up 'country and/or regional Action Plans', which would include objectives and benchmarks. The Commission envisages a three-step approach to developing and implementing Action Plans: dialogue within the framework of current agreements, leading to the drawing up of an Action Plan, followed by an annual review of progress towards its implementation.

With regard to financing the Wider Europe Neighbourhood, the Commission is to consider establishing a 'Neighbourhood Instrument', which would focus resources 'on ensuring the smooth functioning and secure management of the future Eastern and Mediterranean borders, promoting sustainable economic and social development of the bordering regions and pursuing regional and trans-national cooperation.'

Further information within European Sources Online:

European Sources Online: Topic Guides:
	Enlargement of the European Union
	The European Union's Common Foreign and Security Policy
	Belarus
	Moldova
	Ukraine
European Sources Online: In Focus:
	Commission adopts a Communication 'Reinvigorating the Barcelona Process', aimed at strengthening its relations with the EU's neighbours to the South and East of the Mediterranean September 2000
	Croatia applies to join the EU, February 2003
	EU opens negotiations on a Stabilisation and Association Agreement with Albania, February 2003
	EU-Russia relations, May 2001
	The European Union and the Middle East Peace Process, April 2002
	Russia strengthens its ties with the West, May 2002

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission:
	DG Press and Communication:
		11.03.03:	Wider Europe Neighbourhood: proposed new framework for relations with the EU's Eastern and Southern Neighbours [IP/03/358]
	DG External Relations:
		The EU's relationship with the countries of Eastern Europe & Central Asia
		The EU's Mediterranean & Middle East Policy
		The EU's relations with South Eastern Europe (Western Balkans)
		The Northern Dimension
		Wider Europe: Frequently Asked Quesions
	EuropeAid Cooperation Office:
		European Initiative for Democracy and Human Rights (EIDHR)

European Parliament:
	Homepage
	Report on relations between the European Union and Belarus: towards a future partnership

Miscellaneous organisations

Radio Free Europe / Radio Liberty:
	Homepage
	EU: Commission Prepares 'New Neighbourhood' Policy To Reward Eastern Reform

Eric Davies
Researcher
Compiled: 15 March 2003

Aware that the EU's borders will change in 2004, the European Commission published a Communication on 11 March 2003 adressing the EU's relations with neighbouring countries in the South and East after 1 May 2004.