The avis: country-by-country summary of the Commission’s conclusions

Date: 17/07/1997

Poland

Poland is judged politically ready (despite some press freedom problems) and economically prepared, but the report contains warnings about its progress towards fulfilling the EU acquis. Although, with effort, it should be able to participate fully in the medium term, Poland needs to pay special attention to agriculture, the environment and road transport. Telecoms, fisheries and consumer protection also need work, and further administrative reform is indispensable. The country faces significant challenges in the justice field, particularly concerning drugs, border management and transnational crime.

Hungary

Politically there are few problems, despite some concerns over the Roma people, and Hungary's market economy is judged to be working. Its key task now is to avoid unsustainable deficits which hinder investment and restructuring. The country will have little trouble in applying the acquis in the mid-term, although consumer protection and customs controls need work. Significant efforts are needed in the environmental field, and nuclear waste is a problem. Administrative structures should be ready in the medium term.

Czech Republic

Politically ready (although there are some weaknesses in press laws), and it should be able to cope with EU competition in the medium term as long as enterprises focus on more value-added products.

The report praises the country for low unemployment and economic stability, but recent macroeconomic imbalances come under attack. Progress is needed in corporate governance and the financial system. Taxation also needs some attention, according to the avis, and substantial work is required on administrative reform. The audio-visual and customs sectors have some way to go, and the environment, energy and agriculture require significant reform.

Slovenia

Politically and economically ready, but needs to make considerable progress towards the acquis. The financial sector needs more competition, fiscal and social security reforms are still not complete and there is a need for enterprise restructuring. But its workforce is skilled and its infrastructure good. Slovenia is still some way from EU standards in public procurement, competition, insurance, freedom of capital movements, product conformity and standardisation. Significant environmental investment is needed and the energy sector is too monopolistic.

Estonia

Estonia's political institutions function well, although the avis calls for better integration of Russian-speaking non-citizens. The country has a functioning market economy and should be able eventually to cope with EU competition. Nevertheless, the export base is narrow, and rising trade and current account deficits are of concern. Estonia has adopted “significant elements” of the acquis, although its administration needs reform. Investment is required in the environment. Agriculture, fisheries, consumer protection, customs and justice also need more work.

Latvia

Political structures are working, although troubles remain with Russian-speaking non-citizens. The country's economy would face serious difficulties in competing with the EU in the medium term, given its over-dependence on low value-added goods. Banking is underdeveloped, agriculture needs modernising and privatisation is not complete. Latvia is making good progress towards the acquis, but faces difficulties in statistics and customs. Serious efforts are needed on the environment and justice and home affairs. Administrative and judicial reform is required.

Lithuania

Politically ready, but would also suffer under EU competition. Despite significant progress, large-scale privatisation, bankruptcy proceedings and relative price adjustments are needed. Enterprise restructuring is required, agriculture needs to be modernised and banking is weak. Lithuania faces challenges in telecoms, statistics, fisheries and customs. Very substantial efforts are required in the environmental field and, despite some progress, the country needs to do more work in justice and home affairs. Administrative reform is needed; the state of Lithuania's judiciary is unclear.

Slovakia

The only country to completely fail the political criteria. The government does not respect powers devolved to other bodies and too often disregards the rights of the opposition. Its rejection of court decisions and use of the police and secret services is worrying. The situation of the Roma people is also a problem. In contrast, Slovakia does fulfil the economic and internal market criteria, although further efforts are needed on public procurement and intellectual property, telecoms and customs. Massive investment is required in the environment, plus progress on rail and road freight transport. Employment and social affairs standards are lagging behind.

Romania

Since a change of government in November 1996, Romania has gone some way towards fulfilling the political criteria, although there are gaps in its record on fundamental rights. Corruption is a major obstacle, and the police and secret services are problematic. The Roma minority is not well integrated. There has been progress on child protection, but work is still needed. Romania's economy is a mess, with property rights not yet in place, a fragile legal system and some incoherent policies. Much of the country's industry is obsolete and its agriculture needs to be modernised. Public administration remains a severe problem, and the financial sector must be restructured. Justice and home affairs, the environment, transport, employment, agriculture and social affairs all need much improvement.

Bulgaria

Following the arrival of a new government, Bulgaria is judged to be almost ready politically, although fundamental rights are not fully respected. Corruption is a problem, and the judicial system needs reform. Economically, the country is only at the start of its structural transformation and certainly could not cope with EU competitive pressures in the medium term. It is a long way from the EU acquis, and urgently needs to reform its financial sector and public administration.