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THE EUROPEAN COUNCIL CANNES 26-27 JUNE 1995 Documents in the dossier include: Cannes European Council Reproduced from the Bulletin of the European Communities No. 6/1995

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THE EUROPEAN COUNCIL

CANNES26-27 JUNE 1995

Documents in the dossier include:

Cannes European CouncilReproduced from the Bulletin of the European Communities No. 6/1995

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Cannes European Council

Cannes, 26 and 27 June

1.1. The meeting of Heads of State or Govern-ment held in Cannes on 26 and 27 June was thefust at which all 15 Member States were repre-sented. It was chaired by Mr Chirac, Presidentof the European Council and President ofFrance, and attended by Mr Santer, President ofthe Commission. Before discussions began,Mr Hansch, President of the European Parlia-ment, made a statement on the main items On theagenda.

1.2. The European Council devoted much of itsdiscussions to economic and monetary mattersreaffirming its firm resolve to prepare for transi-tion to a single currency by 1 January 1999 atthe latest in strict accordance with the con-vergence criteria, timetable, protocols and pro-cedures laid down by the Treaty. It emphasizedthe need, in the interests of growth, to introducestability-oriented monetary and budgetary pol~icies in line with the broad guidelines for econo-mic policies. Reiterating that the fight againstunemployment remains a high priority for theEuropean Union and its Member States, theEuropean Council referred back to the policyguidelines set out at the Essen European Councilin December 1994 and called on the MemberStates to incorporate this objective into the mul-tiannual programmes due to be presented in theautumn. It emphasized training and education,the key role of small business, the proper func-tioning of the internal rnarketand the potentialof new growth areas such as the informationsociety as important elements in a job creationpolicy. It welcomed the Commission reports onthe development of local employment initiativesand small businesses and the report by theCiampi group on competitiveness. In order tostimulate employment, competitiveness andinnovation, it stressed the importance of combat-ing excessive regulation where simplification isjustified, provided what has been achieved is notundermined; in this context, it took note of thefindings of the group of independent experts onsimplification of legislation and administration.

Bull. ED 6- 1995

On the external relations front, the EuropeanCouncil reached agreement on the volume of ap~propriations for financial cooperation with thecountries of Central and Eastern Europe and theMediterranean countries up to 1999 and on theamount and financing arrangements for theeighth European Development Fund. Reiteratingthe strategic importance it attaches to devel~oping relations with its Mediterranean partnersthe European Council was hopeful that the Bar-celona Conference in November 1995 would laythe foundations for a new and ambitious Euro-Mediterranean partnership. It stressed the irnpor-tance of the Union s relations with Russia andcame out in favour of signing the interim agree"ment. It also expressed support for stepping upthe transatlantic dialogue with the United Statesand for strengthening the multilateral frameworkprovided by the World Trade Organization. Inaddition, alongside the European Council, ajoint meeting also the first - was held withthe Heads of State or Government and the For-eign Ministers of the associated countries ofCentral and Eastern Europe, the Baltic StatesCyprus and Malta. Discussions focused on thestructured dialogue and progress made in pre-paring for accession.

In the field of justice and home affairs cooper-ation, the European Council particularly wel~comed the agreement on the Europol Conven-tion and agreed to settle the question of thejurisdiction to be conferred on the Court of Jus-tice of the European Communities by June 1996.It also noted the agreement on the Conventionon the protection of the Communities ' financialinterests and on the Convention concerning theuse of information technology for customs pur-poses.The European Council noted with satisfactionthat preparations for the 1996 IntergovernmentalConference were well under way, particularlyafter the inaugural meeting of the Reflection

Group and the submission of reports by theinstitutions. It reaffirmed the Reflection Groupmandate and singled out a number of prioritiesto enable the European Union to respond to itscitizens ' expectations.

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Conclusions of the Presidency

Part AConclusions of thePresidency

Introduction

1.3. Meeting with 15 Member States for the first time,the European Council has considered the basic ques-tions which confront the Union today and how theymight be tackled, on both the internal and externalfronts. It has thus laid solid foundations for a newstage in the process of European integration, withrevision of the Union Treaty, completion of economicand monetary union and the achievement of a furthermajor enlargement.

At home, the Union must provide an improved re"sponse to its citizens ' legitimate expectations, that isto say, it must make it a priority to mobilize all its re-sources, including those of the Member States, tocombat the scourge of unemployment effectively.This means implementing a broad range of measuresat both national and Community level in full compli-ance with the convergence criteria; compliance withthese criteria is also a precondition for introduction ofa single currency: in particular, the Communityeconomy must be made more dynamic, by makingsure that it remains competitive with its principal ri-vals and by mastering new technologies, especiallyinformation technologies. Finally, people s desire for

security must be satisfied.

Externally, the Union is determined to work towardsstability and peace on the continent of Europe, by pre-paring for the accession of the associated Europeancountries. Their presence here in Cannes today pro-vides confirmation that they are destined to join theUnion. The Union also intends to strengthen relationsin all spheres with the Mediterranean countries, toimplement the customs union with Turkey as part of adeveloping relationship with that country, to establishclose and balanced relationships with Russia and theCIS countries, to strengthen its special relationshipwith the ACP, to give fresh impetus to transatlanticrelations and forge closer links with Latin Americaand Asia.

To be able to achieve these ambitions, the Union willneed to complete preparation for the 1996 Intergo-vernmental Conference in the next few months; the

discussions of the Reflection Group set up in Messinawill be a contribution to that process.

The European Council heard a statement from thePresident of the European Parliament, Mr KlausHiinsch, on the main questions dealt with.

Economic, social and monetaryquestions

EmploymentReferences:

Conclusions of the Essen European Council:

Bull. 12-1994, points 1.3 and 1.Standing Committee On Employment: point

1.3.201 of this BulletinCommission communication to the Council

and Parliament on a European strategy for encou-raging local development and employment initia-tives: point 1.3. 198 of this Bulletin

Commission communication to the Council,accompanied by a proposal for a Council Deei"sion on Commission activities of analysis,research, cooperation and action in the field of

employment: point 1.3. 199 of this BulletinReport of the Competitiveness Advisory Group

on improving European competitiveness: point1.3.3 of this Bulletin

Report of the independent group of experts onsimplification legislation and administration:point 1.9.5 of this Bulletin

Proposal for a Council Regulation laying downgeneral rules for the granting of Communityfinancial aid in the field of trans-European net-works: Bull. 3- 1995, point 1.3.

Commission communication to the Counciland Parliament on the role of penalties in imple-menting Community internal market legislation:COM(95) 162; Bull. 5- 1995, point 1.3.

Council resolution on effective uniform appli-cation of Community law and of penalties forbreaches of Community law in the field of theinternal market: point 1.3. 17 of this Bulletin

1.4. Despite the resumption of economic growth, theunemployment rate will remain unacceptably high in1995. It is therefore of the utmost importance that, inline with the five guidelines set out in Essen, MemberStates should press ahead with structural reforms ofthe employment market, the effectiveness of whichhas been demonstrated by some initial examples. Thefight against unemployment and equal opportunitiesquestions will remain the most important task facingthe European Union and its Member States. The Euro-pean Council calls on the Member States to giveeffect to those efforts in the form of multiannual pro-grammes to be put forward in the autumn. The Coun-cil and the Commission will cooperate in preparingthe first annual report on the implementation of theseprogrammes, which will be submitted to the MadridEuropean Council. In this context, the EuropeanCouncil emphasizes the need for careful preparationof the report provided for at its Essen meeting on theinterrelationship between economic growth and the

Bull. ED 6- 1995

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Conclusions of the Presidency

environment and the consequences this has for econo-mic policy.

As an economic entity, the European Union offersadditional room for manoeuvre and a specific added-value that make for the creation of lasting employ-ment. The European Council calls upon the Counciland the Commission to study the mutually reinforcingeffect of increased coordination of economic andstructural policies and to report back to it at its Madridmeeting.

The European Council takes note of the interim reportexamined by the social partners in the Standing Com-mittee on Employment on 19 June. Rolling backunemployment means implementing stability-orientedmonetary and budgetary policies, in line with thebroad guidelines for economic policies.

The European Council emphasizes that such macro-economic policies directly benefit jobs threatened bythe weight of public deficits. A rigorous budgetarypolicy over and above its favourable impact on thestability of the macroeconomic framework helps tobring down interest rates, boosts investment and stim-ulates growth.

1.5. The European Council places particular emphasison the need to foster growth of a kind that will createjobs, to step up measures to bring young people andthe long-term unemployed back into the world ofwork and to make the labour-markets perform betterin particular by reducing indirect labour costs. Train-ing and apprenticeship policies, which are fundamen-tal for improving employment and competitiveness,must be strengthened, especially continuing training.The European Council takes note of the Commis-sion s intention of submitting a White Paper by theend of the year.

At the European Social Conference in Paris on30 March 1995, the social partners, the EuropeanConfederation of Trade Unions, UNICE and the Euro-pean Association of Craft and Small and Medium-Sized Enterprises showed that they were prepared toplay their full part in implementing the conclusions ofthe Essen European Council. The European Councilwelcomes their intention to submit a report under thesocial dialogue assessing the progress that has beenmade.

1.6. The initiative of entrepreneurs, their decisions onhiring and on investments, also brings growth. Theaim must therefore be to create a 'virtuous ' spiral ofinitiative, employment and growth. To do that, indi-vidual incentives to productivity need to be strength-

ened, competition stimulated and, in general, marketflexibility increased.

The European Council notes with satisfaction theCommission s reports on the development of localemployment initiatives and SMEs, as well as thereport from the Ciampi Group on competitiveness,which it received with great interest.

Bull. EU 6- 1995

The European Council emphasizes the importanc~ ~tattaches to the development of local employment lill-tiatives in particular in the field of services linkedwith the environment and living standards, crafts andtraditional products. It takes note of the Commissioncommunication on the subject. It places emphasis Onthe need to disseminate initiatives .undertaken atnational level. The Commission communication willbe .examined by the Council on Social Affairs andLabour, which will submit a report to the MadridEuropean Council.

The European Council emphasizes that small andmedium-sized enterprises (SMEs) playa decisive rolein job creation and, more generally, act as a factor ofsocial stability and economic drive. It calls upon theCommission to submit a report to it on policies cur-rentlybeing conducted in this field and on ways ofimproving their effectiveness through measures, parti"cularly of a fiscal nature, aimed at promoting the ere"ation of SMEs, reducing the administrative burden .them and facilitating their participation in training andresearch programmes.

The European Council emphasizes the importance ofdeveloping investment in research, development andeducation at national and Community level. It like-wise emphasizes that in order to stimulate employ-ment, competitiveness and innovation, it is importantto combat excessive regulation where simplification isjustified without jeopardizing what has beenachieved. In this context, noting the outcome of thediscussions of the group of independent experts, itwould like the Commission to propose specific mea-sures for administrative simplification which could betaken by the competent bodies before the end of theyear.

/. 7. Investment promotion also has a role to play combating unemployment. The European Councilwelcomes the progress made with implementation ofthe priority projects adopted at Essen, in particular theagreements reached on defining the regulatory frame"work. In this connection, other measures should beadopted to establish fairer competition between modesof transport.

The 14 transport projects, although at different stagesof maturity, are all being worked upon: for more thanhalf of them, which are also the most significantfinancially, preparatory studies are under way, and insome cases completed; for the others, constructionwork has already begun.

The European Council requests the Commission to re-examine the financial estimates for the projects to seewhether costs could be reduced without affecting theirviability. It calls upon the Commission to seek out anyother possible means of funding so that the projectscan be carried out more quickly.

The European Council also calls upon the Commis-sion to make every endeavour to ensure that projects

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Conclusions of the Presidency

eligible under the Fimlncial Regulation can be sub-mitted at the earliest opportunity so that the appropri-ations available can be released as from adoption ofthat Regulation in 1995.

The European Council notes, in the light of the Com-mission s estimate, that the 14 transport projectsdefined as priorities in Essen will represent 75% ofthe appropriations available under the 'networksheading, i.e. an amount in the region of BCD 500 mil-lion for 1995 and 1996.

1.8. The European Council emphasizes the develop-ment potential of new growth sectors (for example,multimedia) and the potential for job creation in pro-moting the information society. It calls for work tocontinue on establishing the regulatory frameworkthat will enable it to develop, while taking care tomaintain cultural diversity and bearing in mind theobjective of equal access to these new services.

/.9. The proper functioning of the internal market isfundamental to a dynamic economy and thus to jobcreation. The Community and its Member States ,musttherefore give priority to the effective working of theinternal market. The European Council welcomes thecommunication from the Commission and the Councilresolutions on this subject. The effective and uniformapplication of Community legislation throughout theUnion will increase confidence in the single market onthe part of industry and the public. The EuropeanCouncil also restates the importance it attaches to rig-orous application of the principle of subsidiarity; inthis context, the European Council calls on the Com-mission to implement the 1993 programme for ther'~vision of existing legislation as Soon as possible andto report back for its Madrid meeting.

/0. The European Council reiterates its concern thatthe introduction of greater competition into many sec-tors in order to complete the internal market should becompatible with the general economic tasks facingEurope , in particular balanced toWn and country plan-ning, equal treatment for citizens including equal

rights and equal opportunities for men and women the quality and permanence of services to consumersand the safeguarding of long-term strategic interests.

Economic and monetary union

References:Draft Council recommendation for the broad

guidelines of the policies of the Member Statesand the Community: point 1.3. 12 of this BulletinCommission Green Paper on the practical

arrangements for the 'introduction of the singlecurrency: COM(95) 333; Bull. 5-1995, point1.3.

/.11. The European Council restates its firm resolve toprepare the transition to the single currency by 1 Janu-ary 1999 at the latest in strict accordance with the con"

vergence criteria, timetable, protocols and procedureslaid down in the Treaty. To that end:0 the European Council subscribes to the broad

guidelines of the economic policies of the MemberStates and of the Community in the Council reportsubmitted pursuant to Article 103 of the Treaty. Thecurrent economic upturn must be used to step up sus"tained efforts to put public finances in order. Compli-ance with these guidelines is also necessary to make asubstantial reduction in unemployment, although thismust be combated at the same time by structural mea-sures. The European Council requests the Council toreport back on the implementation of these guidelinesfor its meetings in December 1995 and June 1996;0 the European Council would like work on prepar-ing for introduction of the single currency to continueunabated. It welcomes the contributions on this mattermade by the Commission s Green Paper and by theEuropean Monetary Institute. It requests the Councilto define, in consultation with these two institutions, areference scenario guaranteeing full compliance withthe Treaty, this being a precondition for the irrevers"ibility necessary at the start of the third stage, with aview to reporting back to the Madrid European Coun-cil. In general , it approves the conclusions reached onthese matters (see Part B, page I) .and calls on theCouncil to continue with all the necessary discussionsand to report back to its Madrid meeting so that it candecide on the scenario for introducing the single cur"rency;0 the European Council emphasizes that if the recentcurrency turmoil continues , it might affect the properoperation of the single market and put a brake on theprocess of harmonious and balanced growth. TheCouncil confirms its request to the Commission tocarry out a detailed examination of those problemsand to report on its conclusions in the autumn. In thiscontext, it points out that it is important for all Mem-ber States to make .the necessary efforts with regard toconvergence, this being a precondition for introduc-tion of the single currency, which will be the lastingsolution to these difficulties.

External relations

References:EC-Cyprus Association Council: point 1.4.

of this BulletinEC-Malta Association Council: point 1.4.72 of

this BulletinCouncil conclusions C:)n the White Paper 'Prep-

aration of the associated countries of Central andEastern Europe for integration into the internalmarket of the Union : point 1.4.56 of this Bulletin

White Paper 'Preparation of the associatedcountries of Central and Eastern Europe for inte-

Bull. EU 6- 1995

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Conclusions of the Presidency

gration into the; internal market of the UnionCOM(95) 163; 'Bull. 5-1995, point 1.4.

Council Regulation (EEC) No 3906/89 on eco-nomic aid to certain countries of Central andEastern Europe (PHARE programme) (OJ L 375,23. 12. 1989; Bull. l2-1989, point 2. 25), as lastamended by Regulation (EEC) No 1764/93: OJ L162, 1993; Bull. 6- 1993, point 1.3.

Europe (association) Agreements between theEuropean Communities and their Member Statesand Hungary and Poland respectively: OJ L 34831.12. 1993; Bull. 12-1993, point 1.3.

Commission communications on. preparing theCentral and Eastern European countries foraccession: COM(94) 320; COM(94) 361: Bull.7/8- 1994 points 1.3.26 and 1.3.

Europe Agreements establishing an associationbetween the European Communities and theirMember States and Bulgaria, Romania, the CzechRepublic and Slovakia: OJ L 358, OJ L 359 andOJ L 360, 31.l2. 1994;;:Bull. 112-1995, points1.4.73 to 1.4.

Draft Europe (association) Agreements be-tween the European Communities and theirMember States and Estonia, Latvia and Lithuaniarespectively: point 1.4.63 of this Bulletin

Conclusions of the Essen European Council:

Bull. 12- 1994, points 1.13 and 1.39

Final ConferenceoU' the Stability Pact: Bull.1995, point 1.404

Council conclusions on EU policy towards theBaltic Sea region: Bull. 5- 1995, point 1.4.Draft European Agreement with Slovenia:

Bull. 3- 1995, point 1.4.New draft agreement with Tunisia: Bull.1995, point 1.4.Commission communication to the Council

and Parliament 'The European Union and Russia:the future relationship : COM(95) 223; Bull.

1995, point 104.

Draft interim agreement between the EuropeanCommunity and Russia on trade and related mat-ters: Bull. 12- 1994, point 1.3.53

Council Decision granting further macrofinan-cial assistance for Ukraine: point 104.95 of thisBulletin

European Union-United States meeting in thecontext of the Transatlantic Declaration: point

1.4.99 of this BulletinEuropean Union-Japan Summit: point 1.4. 101

of this Bulletin

European Union-Canada meeting in the con-text of the Transatlantic Declaration: point1.4. 102 of this Bulletin

/.12. The participants in the European Council met theHeads of State .or Government and Ministers for For-eign Affairs of the associated countries of Central andEastern Europe, including the Baltic States, as well asCyprus and Malta. They held a wide-ranging ex-change of views on various topical matters. They also

Bull. EU 6- 1995

made an initial, favourable assessment of the struc-tured dialogue and of progress in implementing thepre-accession strategy. In this connection, a suitable

forum for encouraging and pooling experience willneed to be set up.

The European Council reaffirms that negotiations onthe accession of Malta and Cyprus to the Union willbegin on the basis of Commission proposals, sixmonths after the conclusion of the 1996 Intergovern-mental Conference and taking the outcome of thatConference into account. It stresses the importance itattaches to preparing the accession of the associated

countries to the Union and approves the Council con-clusions on the White Paper on integrating thosecountries into the internal market and the Councilreport on implementing the strategy of preparing foraccession (--+ points 1.31 et seq.). It invites the Com-mission to report back to its next meeting on progressin implementing the White Paper and on the studiesand analyses requested at Essen. The success of theConference on Stability in Europe (held in Paris on 20and 21 March 1995) will help bring the countries ofCentral and Eastern Europe and the European Unioncloser together. The European Council calls on the

, countries concerned and on all :the parties to imple-ment the agreements and arrangements in the StabilityPact, which has now been entrusted to the OSCE, andcalls On the countries concerned to work for the prac-tical improvement of good-neighbourly relations inEurope.

Against this general background, the European Coun-cil, which is particularly concerned at the situation informer Yugoslavia, aclopted the statement in Part B(--+ point 1048).

The European Council reaffirms the EuropeanUnion s concern to contribute to political stability andprosperity in the Baltic Sea region. It awaits with

interest the progress report on cooperation in thatregion.

The European Council refers to the need for Siovenianreal estate legislation to be harmonized with Europeanrules, as laid down in the statement of 6 March 1995.In addition, it hopes that the Association Agreementwith Slovenia will be signed as soon as possible andthat Slovenia will subsequently participate in thestructured dialogue.

13. The European Council reaffirms the strategicimportance it attaches to adding a new dimension tothe European Union s relations with its Mediterraneanpartners. It trusts that the Conference in: Barcelona inNovember 1995 will lay the foundations for a Euro-Mediterranean partnership with ambitious cooperationgoals and welcomes the Council's report of 12 June(--+ point 1.49), setting out the objectives that theUnion intends to pursue in Barcelona. It is pleased tonote the encouraging response already received fromthe Mediterranean partners. It calls on the Council and

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Conclusions of the Presidency

the Commission to press ahead with preparations forthe Barcelona Conference with the 12 States con-cerned.

It is pleased to note the initialling of the new Agree-ment with Tunisia. It urges early conclusion of theAgreements with Morocco and Israel. Lastly, it callsfor rapid progress to be made in the negotiations withEgypt, Jordan and Lebanon. It welcomes the closerties between the European Union and Turkey.

Gravely concerned by the situation in Algeria, theEuropean Council renews its appeal to all thoseinvolved in political life to break the cycle of violenceand find a political solution through peaceful dialogueand free and fair elections. It reaffmns its readiness tosupport an economic restructuring policy in Algeria.

The European Council pays tribute to the efforts madeby .the parties directly concerned in the Middle EastPeace Process to achieve, despite the difficulties intheir path, a just, lasting and comprehensive peace inthe region. It expresses the fervent hope that the

Israeli-Palestinian negotiations can be successfullycompleted by 1 July. It commns that the Union isfully ready, when the time comes, to send observers tothe forthcoming Palestinian elections and to coor-dinate the various international observer missions atthose elections and confirms the European Unioncommitment resolutely to encourage and support thisprocess, both economically and politically. It hasasked Mr Felipe Gonzalez, the incoming President ofthe European Council, in the second half of 1995 totake all relevant steps to that end.

I.l4. The European Council takes note of the Com-mission communication and con:fmns its commitmentto developing the European Union s relations with

Russia, a process which is essential to the stability ofthe European continent. It reiterates the Union s re-

solve to establish a substantive partnership with Rus"sia, On the basis of the strategy adopted in Carcas"sonne in March 1995. The European Union intends tocontribute to the OSCE comprehensive security modelfor Europe in the 21st century.

With regard to security, the European Council consid"ers that dialogue between Russia and the Atlantic Al-liance should be stepped up, using the existing mecha-nisms. It further considers that conclusion of anagreement, perhaps in the form of a charter, should beenvisaged. This process must be compatible with

NATO and WEU policies and with the gradual inte-gration of the countries of Central and Eastern Eu-rope.

In the near term the European Council, noting that

progress has been made with regard to the situation inChechnya and relying on con:fmnation of that pro-gress, has decided in favour of signing the InterimAgreement.

The European Council welcomes the progress ofUkraine s economic reforms achieved in close cooper-

ation with the international financial institutions, andthe decision to grant Ukraine the :fIrst tranche of a bal-ance-of-payments loan for 1995. The pursuit of thispolicy is closely linked to the implementation of Pres-ident Kuchma s decision to close down the Chernobylnuclear power station definitively in 1999.1.15. The Summit between the European Union andthe United States on 14 June confirmed that partnerconcern to see open and balanced relations developwith the European Union. The European Council

expresses its support for the strengthening of the

transatlantic dialogue on the basis of the declarationsof November 1990, reinforcement of the multilateralframework provided by the World Trade Organization(WTO) and for development of security links betweenthe European and American pillars of the Atlantic Al-liance. The Council welcomes in particular the agree-ment whereby a high-level group from the EuropeanUnion and the United States should work on strength"ening transatlantic relations.In addition, it welcomes the annual summits betweenthe European Union and Japan held in Paris on

19 June and between the European Union and Canadaon 17 June, which demonstrated the willingness tostrengthen and rebalance their relations.I.l6. The European Council welcomes the develop-ment of relations with South Africa, Latin Americaand more especially Mexico, Chile and Mercosur andwelcomes the Euro-Asian Summit to be held in theflfSt half of 1996.It intends to work resolutely for peace and disarma-ment within .the framework of the common foreignand security policy:0 on the occasion of the 50th anniversary of theUnited Nations Organization, it adopted the statementset out in Part B (-4 point 1.54);

0 it welcomes the fact that .the joint action regardingthe indefinite and unconditional extension of the Non-proliferation Treaty, which was agreed at the CorfuEuropean Council, has been successfully carriedthrough;0 it expresses the hope that the Convention on theProhibition of Chemical Weapons will enter into forcewithout delay;0 it intends rapidly to implement the joint actionadopted by the Union to combat .the indiscriminateuse and the dissemination of anti-personnel land-mines;0 it sent a message of friendship and support to theOrganization of African Unity (OAU) on the occasionof its 31 st summit (-4 point 1.55) and expressed itsconsternation after the attempted assassination ofMr Mubarak, President of the Arab Republic ofEgypt, to whom it expresses sympathy;0 it adopted the statement on Burundi (-4 point 1.56);0 it expressed the hope that a treaty introducing atotal ban on nuclear testing would be signed at the endof 1996 at the latest.

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Conclusions of the Presidency

1.17. With regard to Iran, the European Union willcontinue to defend freedom of expression. It regretsthe lack of progress recorded with regard to the SaI~

man Rushdie situation. The matter remains before theCouncil.

18. The European Council further stresses its llflDcommitment to the WTO, which was established on1 January 1995. It considers the WTO to be a suitableforum for ensuring, in a transparent and non-discrimi-natory manner, that multilateral rules are respectedand for arbitrating trade disputes betWeen contractingparties. The European Council insists on the need toconclude the negotiations on financial serviceS with asubstantive and balanced result.

1.19. The European Council reached agreement on theappropriations for financial cooperation with thecountries of Central and Eastern Europe and the Medi-terranean countries (-- point 1.57) for the period 1995to 1999, and adopted the amount and financingarrangements for the eighth EDF in accordance withthe table in Part B (-- point 1.58). The EuropeanCouncil records that the conditions have thus beenmet for the negotiations with the ACP States on thepartial revision of the fourth Lome Convention to beconcluded before 30 June.

Internal matters

References:Council Joint Action 95173/JHA concerning

the Europol Drugs Unit: OJ L 62, 20. 1995;Bull. 3-1995, point 1.5.4

Proposal for a Council Regulation (EC, Eur"

atom) on protection of the Communities ' finan-

cial interests: point 1.6. 10 of this Bulletin

Draft Convention on the protection of theCommunities ' financial interests: Bull. 3- 1995point 1.5.

Convention on the simplified extradition pro-cedure: OJ C 78, 30.3. 1995; Bull. 3- 1995, point1.5.3

Council conclusions on an overall strategy tocombat racism and xenophobia: point 1.2.2 ofthis Bulletin

Council conclusions on the European Unionaction plan to combat drugs: point 1.5. 10 of thisBulletin

Proposal for a Council Decision on the imple-mentation of a training programme for profes"sionals in the European audiovisual program.meindustry (Media II training) (1996-2000):point 1.3.227 of this Bulletin

Proposal for a Council Decision on a pro-

gramme to promote the development and distri-bution of European audiovisual works (Media II

Bull. EU 6- 1995

Development and distribution) (1996-2000):point 1.3.228 of this Bulletin

Council conclusions on linguistic diversity andmultilingualism: point 1.3.223 of this Bulletin

1.20. The European Council noted, with satisfactionagreement on the Convention establishing Europol, asignificant instrument for cooperation between Statesin the interests of reinforcing the security of their citi"zens. It recommends Member States to do their utmostto enSure that this Convention can be formallyadopted and applied as soon as possible after rat"ification by the national parliaments. It agreed to settlethe question of the possible jurisdiction to be attri-buted to the Court of Justice of the European Commu"nities at its meeting in June 1996.

/.21. The European Council welcomes the agreementreached On the Convention concerning the use of

information technology for customs purposes (CIS), amajor factor in improving the operation of the Com-mon customs system, and the progress made on theConvention on the European information system(EIS).

The Council is pleased to note completion of the workon the Regulation and the Convention on the protee-tion of the European Communities ' financial interests.It noted agreement on the text of this Convention

which will have to be signed before 31 July.

The European Council takes note of the reports sub~mitted by the Member States on their domestic mea-sures to combat wastage and misappropriation ofCommunity funds. It invites the Commission to pre~pare a comparative summary for the European Coun-cil in Madrid. On this basis , it calls on Member Statesand all institutions to persevere in the battle againstfraud and waste.

1.22. The European Council welcomes the conclusionof the Convention on simplified extradition proce-dures and notes that substantial progress has beenmade, in particular with regard to visas, in ensuringthat people can move freely within the Union. Itinvites the Council to complete, in July, its work onbringing about the closer integration of third-countrynationals residing legally in the Union.

It also asks the Council to see to it that the Conventionon checks on persons crossing the Union s external

frontiers is signed before the next European Councilmeeting, subject to solutions being found to the ques-tions outstanding. Finally, it invites the last States

concerned to complete their procedures for ratifyingthe Dublin Convention.

/.23. The Union-wide effort to combat racism andxenophobia is of great significance, and the EuropeanCouncil welcomes the work carried on by the variousCouncil bodies and the Consultative Commission. Itasks the Consultative Commission to extend its workin order to study, in close cooperation with the Coun-

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Conclusions of the Presidency

cil of Europe, the feasibility of a European MonitoringCentre on Racism and Xenophobia.

24. The European Council approves the work on theEuropean Union s action plan to combat drugs (1995-99) and the guidelines adopted for the programme onthe prevention of drug dependence. It urges MemberStates to unite their efforts and recommends ensuringpractical implementation of the strategy involvingreducing supply, combating trafficking, and interna-tional cooperation. It instructs a group of experts fromthe Member States to submit to its Madrid meeting ananalytical report accompanied by proposals dealingwith all these issues.

1.25. The European Council recognizes the need forequal opportunities for men and women in the Unionand calls for continued measures of improvement.

1.26. The European Council welcomes the politicalagreement on renewing the Media programme (train-ing, development and distribution), which will cOn-tribute to promoting freedom of movement of Euro-pean audiovisual works in the Community, and toincreasing the international competitiveness of theEuropean programme-making industry. It notes theproposal for a revision of the 'Television without

frontiers ' Directive. The European Council notes thatbefore the end of the year the Commission intends tosubmit to the Council a proposal for a Decision settingup a financial guarantee instrument for the productionof European audiovisual works, with due regard to thefinancial perspective.

1.27. The European Council emphasizes the impor-tance of linguistic diversity in the European Union.

Preparations for the 1996Intergovernmental Conference

Reference: Inaugural meeting of the ReflectionGroup set up to prepare for the IntergovernmentalConference: point 1. 3 of this Bulletin

28. The European Council notes with satisfactionthat preparations for the 1996 IntergovernmentalConference are now well under way. The ReflectionGroup of personal representatives of the ForeignAffairs Ministers and of the President of the Commis-sion, with two representatives of the European Parlia-ment also taking part, was set up in Messina on 2 June1995. The Group has received reports from the institU-tions on the functioning of the Treaty on EuropeanUnion, which will provide an input for its work. It hasdrawn up its programme of work.

The European Council confirms that, in line with itsconclusions at Corfu, the Reflection Group will exam-ine and elaborate suggestions relating to the provi"sions of the Treaty on European Union due for reviewand other possible improvements in a spirit of democ-

racy and openness , on the basis of the evaluation ofthe functioning of the Treaty as set out in the reports.It will elaborate options in the run-up to the futureenlargement of the Union on the institutional ques-tions set out in its Brussels conclusions and in theloannina agreement (weighting of votes, the thresholdfor qualified majority decisions, number of membersof the Commission and any other measure deemednecessary to facilitate the work of the institutions andguarantee their effective operation with a view toenlargement.)

Furthermore, in view of the lessons which may belearnt more than a year and a half after the entry intoforce of the Treaty on European Union and of thechallenges and risks linked in particular to the pros-pect of a further enlargement, the European Councilconsiders that thoughts should now focus on a numberof priorities to enable the Union to respond to its citi-zens' expectations:

0 to analyse the principles, objectives and instru-ments of the Union, with the new challenges facingEurope;

0 to strengthen common foreign and security policyso that it can cope with new international challenges;

0 to provide a better response to modern demands asregards internal security, and the fields of justice andhome affairs more generally;

0 to make the institutions more efficient, democraticand open so that they are able to adjust to the demandsof an enlarged Union;

0 to strengthen public support for the process ofEuropean integration by meeting the need for a formof democracy which is closer to the citizens of Eu-rope, who are concerned about employment and envi-ronment questions;

0 to put the principle of subsidiarity into practice

more effectively.

Lastly, the Group will bear in mind the advantages ofseeking improvements in .the working of the institu-tions that do not require any amendment to the Trea-ties and can thus enter into force without delay.

As part of the strategy for preparing for the associatedcountries ' accession to the Union , the necessary pro-cedures should be established to enSure that they arekept fully informed of developments in the discus-sions at the Intergovernmental Conference, bearing inmind their status as future members of the Union.

The Heads of State or Government will continue dis-cussing this matter at their informal meeting inMajorca on 22 and 23 September 1995 and the Euro-pean Council will receive a full report from theReflection Group for its meeting in Madrid in Decem-ber 1995.

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Part B

Conclusions of the Presidency

Preparatory work on introduction ofthe single currency

Conclusions of the Council (economic andfinancial affairs) 19 June- 1995

1.29. The Council (economic and financial affairs) re-stated its determination to prepare the transition to thesingle currency by 1999 at the latest, in strict accord-ance with the Maastricht Treaty. It restated its com-mitment to fully observing the convergence criteria. Itwelcomed the contributions represented by the GreenPaper drawn up by the Commission as well as thoseof the proceedings of the EMI.

The President of the Council (economic and financialaffairs) recommended to the European Council that it:0 instruct the Council (economic and financialaffairs) to define, in .consultation with the Commis-sion and the EMI, a reference scenario guaranteeingfull compliance with the Treaty, this being a precondi-tion for the irreversibility necessary at the start stage 3 , with .a view to reporting back to the MadridEuropean Council in December 1995;0 ask the Commission to undertake the necessaryconsultations with a view to reporting back to theEuropean Council in Madrid;0 note the work already completed on defining the

technical characteristics of coins and ask the Council(economic and financial affairs) to continue with allthe necessary work;0 ask Member States to take all the necessary steps tosee that public services consider the practical arrange-ments for switching their operations to the single cur-rency when the time COmes;

0 request the Council (economic and financial affairs)to examine, together with the EMI, the future relation-ship between the currencies of the Member countriesof the Monetary Union and of the other States of theEuropean Union.

/.30. The President of the Council (economic andfinancial affairs) noted the importance of the prepara-tory discussions already completed on the definitionof the characteristics of notes and coins needed for thesingle currency. He noted:0 the consensus achieved on the range of denom-

inations;0 the progress achieved on the appearance of the

coins and notes , and the EMI Council's preference foridentical notes in aU Member States, possibly with aseparate national symbol;0 the experts ' proceedings, which had led to a pro-posal for design motifs to feature on the coins whichwas consistent with the motifs for the notes agreed Onby the Council of the EMI.

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II Preparation of the associated countriesof Central and Eastern Europe forintegration- into the internal market of theEuropean Union

Council conclusions of 12 June 1995

1.3J. The Council welcomes the White Paper preparedby the Commission, in accordance with the conclu-sions of the Essen European Council , on preparationof the associated countries for integration into the

internal market of the Union at the time of their acces-sion. It welcomes the quality of the document, whichwas drafted after consultation of the associated coun-tries. The Council was able to consult the associatedcountries itself at a joint meeting on 10 April with theMinisters for Foreign Affairs and at a joint meeting on6 June with the Ministers with responsibility for theinternal market. It considers that the White Paper is auseful guide for those countries, in the context of theprocess of reform already initiated and of implementa-tion of the Europe Agreements.

/.32. The preparation of the associated countries for

integration into the internal market is, as was affirmedby the Essen European Council , the main element ofthe strategy of preparation for accession. The associ-ated countries themselves regard such preparation forintegration into the internal market as a priority. With-out anticipating or prejudging the future negotiations

on accession and without laying down further condi-tions for those negotiations, the White Paper is thusintended to guide and assist the efforts already under-taken by the associated countries by outlining themeasures, implementation of which is regarded as

essential by the Commission, with a view to integra"tion into the internal market, and the structures neces-sary to that end. It is when they accede that thosecountries will subject, if need be, to transitional pe-riods adopt the whole acquis covered by Commu-nity legislation and policies.

1.33. The Council approves the way in which theWhite Paper emphasizes the importance of the inter-nal market for achieving the objectives of the Union.In particular, the internal market contributes to sus"tainable, balanced and environment-friendly growth,to greater economic and social cohesion, to a highlevel of employment and social protection and to ahigher standard of living and a higher quality of life.The internal market is an area within which free move-ment of goods, individuals, services and capital isensured and in which a system of transparent competi-tion is guaranteed. It requires a high level of mutualtrust and equivalent regulatory approaches.

The gradual alignment of the associated countries onCommunity policies for the construction of the inter-nal market will strengthen the competitiveness of theireconomies and increase the benefits of their economicreforms.

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Conclusions of the Presidency

1.34. The Council notes that the. White Paper, whichpresents an overall view of Community legislatiQnrelating to the internal mlU"ket, does .not establish anyhierarchy between the sectors, but that within eachfield covered it proposes the essential measures likelyto be adopted as a priority by the associated countriesand sets out a sequence for their adoption, withoutimposing any timetable. The Council considers thatthis approach is justified by the fact that it is for theassociated countries themselves, in the light of the

White Paper and their national contexts and priorities,to define and implement their programmes for prepar-ing for integration into the internal market. The asso-ciated countries should, as they have indicated theirwillingness to , establish those programmes, takinginto account the general framework defined in the as-sociation agreements. The Copenhagen EuropeanCouncil emphasized the special importance attachedin particular to the field of competition and, with aview to accession, to the protectiQn of workers, theenvironment and consumers.

The Council approves the emphasis placed by theWhite Paper on the implementation and .control struc-tures, establishment of which must accompany theadoption of legislation on .the internal market.

The Council invites the Commission to hold consulta-

tions with the associated countries on their nationalprogrammes for implementing the recommendationsin the White Paper. The Commission will hold closeconsultations with the Member States on actual pro-gress made and will keep them regularly informed

the process.

/.35. Successful preparation of the associated coun-

tries for integration into the internal market presup-poses that they will be given all appropriate assistanceboth by the Community and its Member States, whoseresources elU"marked for that purpose must be put

the best use in a coordinated manner. It is important inparticular to draw on Member States ' experience inthis field.

The Council welcomes the willingness expressed bythe Commission to contribute to improving the coor-dination and effectiveness of Community assistance.It calls upon Member States to work along the samelines, taking into account the imperatives of transplU"-ency, efficiency and proximity and the need to avoidduplication. It considers that greater participation by

the other public bodies and the private sector shouldbe encouraged. It invites the associated countries equip themselves with the internal structure necessaryto make full use of the facilities offered to them and

welcomes the progress already made in this area. Itemphasizes that strengthened cooperation between as-sociated countries will contribute to the success of

each party s efforts.

The Council considers that particular attention mustbe given to the follow-up to the White Paper process.

It notes that the Commission intends to extend, inclose contact with Member States, its analysis of itspotential benefits and will submit the results to theinstitutions of the Union and to the associated coun~tries. It confIrms that the possibilities offered by .thestructured dialogue and by the association agreementsmust be used to that end. The PHARE ManagementCommittee and the Advisory Committee on the Inter-nal Market should also playa role in this area.

1.36. The General Affairs Council intends to monitorthe discussions to be held subsequently on the WhitePaper in the variQUS forums, in cooperation with the

internal market as far as it is cQncerned, and to coor-dinate the exercise.

The European Council could, with a view to its nextmeeting, invite the Commission to report to it on pro-gress made in preparing the associated countries forintegration into the internal market.

HI Implementation of the strategy, in thefirst half of 1995, to prepare for accession1.37. The strategy to prepare for accession adopted bythe Essen European Council, the main instruments ofwhich are the Europe Agreements and the structureddialogue, took off in the fIrst half of 1995. Although itis too early to establish a proper report, it is worth-while having an overall view of the measures under-taken. Such a view confirms the validity of the chosencourse and the desirability of continuing along it.

The Europe Agreements

/.38. Six Europe Agreements are now in force. Thebeginning of 1995 saw the entry into force of Euro"pean association agreements with Romania, Bulgaria,the Czech Republic and Slovakia, following the entryinto force in 1994 of agreements with Hungary andPoland.

Association Council meetings with those six countrieshave been held, or are to be held in 1995 as follQws:

10 April (Romania and Czech Republic), 29 May(Bulgaria and Slovakia), 17 July (Hungary andPoland). Parliamentary association committees havealso met since the beginning of the year with all theseassociated States.

The group of associated States is increasing, in linewith the guidelines laid down by the European Coun-cil. Negotiations for European association agreementswith the three Baltic States of Estonia, Latvia and

Lithuania were concluded in .the space of only a fewmonths, so that those agreements could be signed Qn12 June 1995. As early as 29 May 1995 the Councilhad occasion to record that the conditions had beenmet for those three countries to be included in thestrategy to prepare for accession defined in Essen

thus making it possible for them to participate in the

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Conclusions of the Presidency

joint meetings under the structured dialogue with theassociated countries of Central and Eastern Europe.

Negotiations for an association agreement with Slov"enia are nearing completion.

Structured dialogue

l.39. The structured dialogue is now operational, aswitnessed by the number of ministerial meetings heldin various areas, the invitation to the Heads of State orGovernment of the associated countries to meet along-side the Cannes European Council being the highpoint in that process.

The meeting of Ministers for Culture and the MediaOn 3 April 1995 made it possible to define the broadoutline of future cooperation with the associated coun-tries in the fields of culture and the media. The Minis-ters of the associated countries expressed their wil-

lingness to play an active part in the Communityprograrurnes in these fields. The meeting also made itpossible to define the following three key areas whichshould be given priority in cooperation with the asso-ciated countries of Central and Eastern Europe: legaland administrative cooperation, the restructuring ofcultural and media industries and the protection ofcultural heritage.

The meeting of the Ministers for Foreign Affairs inLuxembourg on 10 April 1995, prepared by a meetingof Coreper with the Ambassadors of the associatedcountries, made it possible to hold a discussion on theCommission s position on the preparation of theWhite Paper on integration into the internal market,and likewise to address important issues relating toregional cooperation and security in Europe.

The meeting with the Ministers for Economic andFinancial Affairs was held on 22 May 1995, dealingwith the subject of integration of the associated coun-tries into the internal market by focusing attention onthe approximation of laws in the economic and finan-cial field, with an exchange of views on the economicsituation of those countries (macroeconomic aspects).

Ministers with responsibility for the internal marketmet on 6 June 1995, holding a detailed exchange ofviews on the Commission White Paper on the prep-aration of the associated countries for integration intothe internal market.

A meeting of Research Ministers is scheduled for9 June, at which stock can be taken of progress on sci-entific and technical cooperation with the countries ofCentral and Eastern Europe, the alignment policyimplemented by the associated countries and the fore-casts for their participation in Community researchprograrurnes.

The first meeting of the Ministers for Justice andHome Affairs on 20 June 1995 was prepared for by

BulL EU 6-1995

two meetings between the troika of the K.4 Commit-tee and the countries of Central and Eastern Europe on19 January and 7 June. It was to cover cooperation inthe following fields: asylum and immigration, policeand customs cooperation and civil and criminal judi-cial cooperation.

In accordance with the wish expressed by the EssenEuropean Council that planning should extend beyondthe six- month period of each Presidency, it should benoted that the structured dialogue will continue underthe Spanish Presidency in the following fields, in par-ticular: justice and home affairs, transport, agriculture,education, foreign affairs.

White Paperl.40. The submission of the White Paper on the prep-aration of the associated countries for integration intothe internal market has constituted the major devel-opment in the strategy for preparing them for acces"sion since the beginning of the year. It is the subjectof specific conclusions of the General Affairs Councilwith a view to the Cannes European Council.

Commercial measures/.4l. The following action has been taken On the con-clusions of the Essen European Council concerningcommercial measures:0 commercial defence instruments (anti-dumping and

. safeguard measures): the system for information be-

fore the initiation of proceedings is now being appliedby the Commission;0 trade in textiles with the six associated countries:

Regulation (EC) No 3036/94 which has applied since1 January 1995, has improved access for productsconcerned by outward processing operations by meansof the immediate abolition of customs duties;0 the Commission has begun discussions in order to

extend diagonal cumulation of existing rules of originto Romania and Bulgaria; this extension forms part ofthe three-stage strategy decided on by the Essen Euro-pean Council in order to unify rules of origin in pref-erential trade between the Community, the countriesof Central and Eastern Europe and the . EFT A coun-tries;0 the alignment of the timetable regarding customsduties and tariff quotas for Romania and Bulgariawith that for the other associated countries has appliedsince 1 January 1995;0 the negotiations for the adjustment of the EuropeAgreements further to enlargement and the UruguayRound have been conducted for textiles products andECSC products; they are well under way for agricultu-ral products.

Agriculturel.42. The Commission. is due to submit a report, be-fore the Cannes European Council, on the reasons

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Conclusions of the Presidency

why only a few tariff quotas opened by the Union arefully taken up. It is also due to present to the Councilthe outcome of the study of the effects of all sub-sidized exports on the agriculture of the associated

countries and to inform it as to how it takes this intoaccount, within .the framework of its own institutionalresponsibilities, for the management of the exportrefund mechanisms.

As regards the adjustment of the agricultural aspect

the Association Agreements to the results of the Uru"guay Round and enlargement, negotiations have beeninitiated with the associated countries. However, theycannot be concluded before 1 July 1995. Thus:0 further to enlargement, certain provisiomll and au-tonomous measures have been taken for fresh andprocessed agricultural products since 1 January 1995so as not to disrupt traditional currents of trade; asecond series of measures is about to be adopted bythe Council;

(J interim and autonomous measures are also due

be taken to avoid disrupting trade flows followingimplementation of the results of the Uruguay Roundon 1 July; the Commission will shortly be making aproposal with a view to the adoption of these mea-sures, which will take into account the principles

Community preference and reciprocity.

Industry

1.43. The Industry Council meeting on 7 April 1995

adopted conclusions aimed at assisting industrialcooperation with the countries of Central and EasternEurope b) supporting environmental development anda regulatory framework favourable to agreements be-tween undertakings and designed to overcome the ex-isting obscacles in this area.

Financial cooperation

1.44. PHARE has been redirected towards supportingthe strategy for preparing for accession. To do itsprogramming is being carried out on a multiannualbasis. Technical assistance must, in particular, takeinto account implementation of the White Paper onpreparing for integration into the internal market. As-sistance under the programme has, moreover, beenextended to include investment activity in the field ofinfrastructures.

CFSP

1.45. The meeting of Ministers for Foreign Affairs on10 April, held in the framework of the structured dia-logue, gave rise to exchanges of views on several po-litical issues of mutual interest. Meetings at the levelof Political Directors and European correspondentswere organized, as well as numerous meetings at ex-pert level.

Coordination in the capitals of third countries and ininternational organizations has gradu&lly been estab-lished. Coordination within the United Nations, inparticular, has proved to be extremely positive, as wit-nessed by the considerable convergence of voting bythe Union and the associated countries, for exampleon the occasion of the 51st session of the Commissionon Human Rights.

The associated countries have, moreover, subscribedto a growing number of initiatives and joint actions

the Union, as well as to declarations. Thus they allparticipated in the joint action aimed at obtaining theunconditional and unlimited extension of the NuclearNon-proliferation Treaty. They also supported theseries of initiatives undertaken by the Union pursuantto Article 3(2) of the joint action concerning anti-personnel mines, in preparation for the Conference

review the 1980 Convention On Inhumane Weapons.

Stability Pact

1.46. The process leading up to the adoption of thePact on Stability in Europe in Paris on 21 March alsocontributed to the strategy for preparing for &ccession.

Concluded following round table meetings bringingtogether, under the chairmanship of the Union, the as-sociated countries and their neighbours, the Pact con"secrated the determination of the countries of Centraland Eastern Europe to consolidate and develop good-neighbourly relations among themselves, and strengthen stability in Europe by entrusting to theOSCE the monitoring of the bilateral agreements andarrangements included in the Pact.

The accompanying measures for this process, taken bythe Union as part of PHARE, have contributed to thisresult by setting up projects concerning regional trans-boundary cooperation, issues relating to minoritiescultural cooperation, including language training andadministrative training, and environmental problems.

Justice and home affairs

1.47. Following the meeting on 19 January 1995 be-

tween the troika of the K.4 Committee and the associ-ated countries, and acting on instructions from the KACommittee, confirmed by Coreper, certain forms ofcooperation were initiated in the three fields coveredby Title VI:0 In the field of asylum and immigration, two meet-ings of Cirefi (Clearing house for immigration) wereheld with experts from the countries of Central andEastern Europe. The ministerial meeting on 20 June isdue to deal, in particular, with the following topics:false documents, the approximation of legislation onmovement, the questionnaire on practices concerningvisas issued in third countries and readmission.0 In the field of police and customs cooperation, inwhich a meeting between experts on questions con-

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Conclusions of the Presidency

cerning drugs and organized crime is to be held

shortly, the Council meeting on 20 June is to deal withimplementation of the Berlin Declaration concerningpolice and customs cooperation to combat organizedcrime, and the setting-up of a police academy inBudapest.

D As regards judicial cooperation, a very comprehen-sive questionnaire has been sent to the countries of

Central and Eastern Europe. Answers to the question-naire will be discussed by the Council on 20 June, aswill accession of the countries of Central and EasternEurope to the Lugano and Rome Conventions and tothe relevant judicial cooperation conventions.

IV Statement by the Enropean Union onformer Yugosl~via

/.48. Meeting in Cannes on 26 and 27 June 1995, theEuropean Council sends the following message to theleaders and peoples of former Yugoslavia:

D The European Union solemnly reaffirtns its opposi-tion to the settlement of the conflict in former Yugos-lavi1,l by force. It calls for a moratorium on militaryoperations and for the conclusion of an agreement tocease hostilities.

D Since the beginning, the European Union has lentits support to the efforts of the United Nations to con-tain the war, to come to the aid of the civilian pop-ulation and to promote the peace process. It nowwishes to emphasize its support for resolute action byUnprofor.

As regards the action of the United Nations and itsmilitary aspects, the European Union reiterates itssupport for the deployment of the Rapid ReactionForce, as approved by the United Nations SecurityCouncil, for the purposes of enabling Unprofor to

accomplish its task in the best possible conditions ofsecurity and with greater efficiency. The objective isto enable Unprofor to act and react. The MemberStates of the European Union are demonstrating theirsolidarity with the Rapid Reaction Force by offering ittheir assistance as far as they are able and by urgingthe United Nations to ensure that all the members ofthe Organization contribute to the financial support ofthe Force.

The European Union strongly advises all the parties inthe conflict to .refrain from placing obstacles in theway of the freedom of movement and action ofUnprofor and of the humanitarian organizations bring-ing aid to the civilian population. It warns them thatthe peace forces are determined to overcome suchobstacles. The siege of Sarajevo must be lifted. TheEuropean Union demands freedom of access to Sara-jevo, its enclaves and the safe areas.

Bull. EU 6- 1995

The European Union confmns the authorization toopen negotiations for a trade and cooperation agree-rnent with Croatia but would reiterate its stern warn-ing against any attempt to settle the situation in Kra-jina by force.

D The European Union conflrtns that it is its fIrst re-solve to speed up the finalization of a peaceful settle-ment. It reiterates its confidence in and its full supportfor the mediator it has appointed, Mr Carl Bildt, as co"Chairman of the Steering Committee of the Intern1,l-tional Conference on the Former Yugoslavia. It hasnoted with the keenest interest the outcome of his firstvisit to the region.

The European Union asks Mr Bildt urgently toseek ways of reopening the dialogue with all theparties in Bosnia-Herzegovina. The EuropeanUnion, the United States and Russia have deviseda plan which is based on a fair division of territoryand on future constitutional arrangements whichwill preserve the integrity of Bosnia-Herzegovinaand ensure equitable and balanced treatment forthe Croat-Bosnian and Serb-Bosnian entities. Thisplan must be accepted as the basis for the resump-tion of negotiations.

~ The European Union at the same time asksMr Bildt to pursue the efforts to secure mutualrecognition of the States which have emergedfrom the former Yugoslavi1,l. It understands theurgency attaching in an initial stage to the recog-nition of Bosnia-Herzegovina by the Federal Re"public of Yugoslavia. It would refer to the propos-als made, in particular on the question ofsanctions, in order to achieve that mutual recog-nition as soon as possible. The European Unionurges in this context the importance of strict ob-servance of the closure of th,~ border between Bos"nia-Herzegovina and the Federal Republic ofYugoslavia. It calls on all States to see to it thatthe monitoring mission of the International Confe-rence on the Former Yugoslavia has adequate .re-sources.

The European Union asks Mr Bildt to encouragethe Zagreb Government and the Krajina Serb lead-ers to resume talks, revive the economic Agree-ment of 2 December 1994 and accept the draftAgreement known as plan Z4 and to urge the Fed-eral Republic of Yugoslavia to support that plan.

In view of the success already achieved to bridge

the gap between Croats and Muslims, to which theMuslim-Croat Federation and the action of theEuropean Union Administrator in Mostar standwitness, the European Union is convinced thatsolutions can be found to establish satisfactoryrelations between all communities in the formerYugoslavia. The European Union asks its Media-tor to keep the Ministers for Foreign Affairsinformed of the initial results of his efforts at thenext Council meeting on 17 July.

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0 These are the European Union s immediate objec-tives for its own action and that of Mr Bildt. Overallpeace will not be restOred unless the rights of eachcommunity are safeguarded everywhere. In this re"spect the European Union will remain vigilant con-cerning the fate of the people of Vojvodina, Sandjakand Kosovo: full reintegration of the Federal Republicof Yugoslavia into the community of nations dependson satisfactory developments.

Euro-Memterranean Conference inBarcelona position of the EuropeanUnion

General introduction

1.49. The countries of the European Union and theirMediterranean partners must act tOgether toa greaterextent to ensure that the Mediterranean becomes,

more so than at present, an area of exchange and dia-logue guaranteeing peace, stability and the well-beingof those who live around it.

In accordance with the guidelines laid down by theEuropean Councils in Lisbon (June 1992), Corfu(June 1994) and Essen (December 1994), the Euro~pean Union is resolved to establish a lasting pattern ofrelations with the other Mediterranean countries in aspirit of partnership. An ambitious policy of cooper-ation to the south forms a counterpart to the policy ofopenness to the east and gives the European Unionexternal action its geopolitical coherence.

The European Union and its Mediterranean partnerswill have to .meet common challenges calling for a co"ordinated overall approach. That approach must takeproper account of the characteristics and distinguish-ing features of each of the countries on the other sideof the Mediterranean. The establishment of a multilat-eral framework between Europe and the other side ofthe Mediterranean is the counterpart to a strength-

ening of the bilateral relations which link the Unionand each of its partners. The existing bilateral agree"ments and the current negotiations for the conclusionof new generation agreements will make it possible tosafeguard or even accentuate the specific nature ofeach of these bilateral relations within the new multi-lateral framework; these agreements will at the sametime constitute one of the main instruments for imple-menting the provisions contained in this document.

The Euro-Mediterranean Ministerial Conference to beheld in Barcelona on 27 and 28 November 1995 willgive the countries of the European Union and theireastern and western Mediterranean partners anunprecedented opportunity to decide together what

their future relationship is to be.

In its relations with these countries, the EuropeanUnion s objective is to ensure stability and prosperityin the Mediterranean. To that end, the European

Union is prepared to support those countries in theirefforts to turn the region progressively into an area ofpeace, stability, prosperity and cooperation and forthat purpose to establish a Euro-Mediterranean part-nership.. That calls for political dialogue, sustainableand balanced economic and social development, com-bating poverty and the need for greater understandingbetween cultures through a reinforcement of the

human dimension in exchanges.

This is the spirit in which the European Union hasembarked on the present discussion, which seeks toestablish an overall partnership based on strength-ening democracy and respect for human rights, whichconstitute an essential element in relations betweenEurope and its Mediterranean neighbours. That part-nership comprises the following .three main aspects:

0 A political and security aspect

The aim here is to establish a number of commonprinciples and interests, acceptable to all, which thepartners would undertake to promote together. Itinvolves a reaffmnation of the importance, within

each State, of respect for fundamental freedoms andthe establishment of the rule of law, which constituteelements of stability for the whole Mediterraneanregion. Likewise, relations between States must beguided by certain principles acceptable to all whichwill ensure the stability of the region. This initiativeinvolves a dialogue with countries in the Arab-Mus~lim world, and with other countries, and will take intoaccount the specific cultural features of the region.

0 An economic and financial aspect

The aim is to build a zone of shared prosperity. Anaction plan is put forward, setting out the framework,priorities and arrangements for partnership in order toestablish a Euro-Mediterranean economic area basedon free trade in accordance with the obligations aris-ing from the WTO. It commits the partners to consid-ering the implications of creating a free-trade area inrelations between them as well as in the fields of eco-nomic development, resources and infrastructure. Par-ticular importance is attached to regional integration.In this context, it is emphasized that European Unionaid to the Mediterranean region cannot be a substitutefor major efforts by the countries concerned toimprove their own situation and their economic andsocial development. It is acknowledged that the eco-nomic modernization involved requires a substantialincrease in financial cooperation, which must promoteabove all the mobilization of local economic forces inorder to bring about sustainable, self-engendered de-

velopment. To that end, particular stress will beplaced on private sector investment, a powerful factorfor the development of the region.

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() A social and human aspect

Conclusions of the Presidency

The aim here is to encOlJrage exchanges among civilsocieties. In the context of decentralized cooperationthe emphasis is placed on education, training andyoung people, culture and the media, migrant pop-ulation groups and health. Greater cooperation in thefield of home affairs and justice is also envisaged,with action in particular against drug trafficking, ter~rorism and international crime.

Thus defined, the Euro-Mediterranean partnership,with its overall approach focused on the relationshipbetWeen Europe and the Mediterranean, differs funda~mentally from the peace process in the Middle East.The partnership is not a new forum for resolving con-flicts and should not be seen as the framework for thisprocess, even if, among other objectives, it can help topromote its success. The same applies with regard tothe other disputes that may affect relations betWeencountries in the area.

Nor is the Euro-Mediterranean partnership intended toreplace the other activities and initiatives undertakenin the interests of the peace, stability and developmentof the region, which are aimed at strengthening dia-logue and cooperation betWeen Europe and its neigh-bours in the southern and eastern Mediterranean.

More particularly, the European Union intends to playan active part in the economic summit to be held inAmman in October as a follow-up to the Casablancaeconomic summit. This is a separate process from theEuro~Mediterranean partnership, both by its composi-tion and by its objectives, even if certain synergiesmay result from it.

All in all, the sole significance of taking part in theBarcelona Conference is that of adhering to the princi-ples underlying the Euro-Mediterranean partnership.

The European Union hopes that the Euro-Mediterra~nean Conference will lay the foundations for the Euro~Mediterranean partnership by adopting a joint docu-ment on the three main aspects referred to abovewhich fortn a whole and must be made to interact pos-itively.

Political and security partnership: establishinga common area of peace and stability

/.50. In this field, the European Union proposes thatthe Euro-Mediterranean partnership should be put intopractice with the adoption of a declaration of princi-ples by all the partners, at the Conference in Barce-lona this autumn, setting a number of objectives com-mon to the parties with regard to internal and externalsecurity.

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Human rights, democracy and the ruleof law

It should be possible for rules of conduct within eachState or political entity, which .correspond to thoserecognized by the international community, to be reaf-fu11led by all the parties. The internal stability ofStates must be seen as a medium~term element in thestability of the whole Euro-Mediterranean area.

The Euro-Mediterranean partnership should thereforebe based on observance of the following principles:

Respect for the basic texts

Commitment by the partners to act in accordance withthe UN Charter and the Universal Declaration ofHuman Rights, as well as the obligations arising fromthe international declarations and agreements in thisfield by which they are bound.

Rule of law

Each partner should be able to commit itself to the de-velopment of the rule of law and of democracy in itsinternal political system (free and regular elections togoverning and representative bodies, independent ju"diciary, balance of powers and good governance),with the partners recognizing at the same time theright of each of them to choose and freely develop itsown political, sociocultural and economic system,provided it complies with commonly agreed interna-tional standards concerning human rights.

Fundamental freedoms

Commitment by each partner to take practical steps toensure the effective exercise of fundamental free-doms, on the basis of the undertakings entered into bythe partners in the previous two paragraphs, includingfreedom of expression, freedom of association forpeaceful purposes and freedom of thought, conscienceand religion.

Commitment by the partners to give favourable con-sideration to the possibility of exchanging informationand responding to any requests for information madeto them by the partners on questions in connectionwith human rights and fundamental freedoms.

Pluralism and tolerance

Commitment by each partner to respect diversity andpluralism in its society. Call for the promotion of tol-erance betWeen different groups in society and for re-

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Conclusions of the Presidency

sistance to manifestations of intolerance, especially

racism and xenophobia. Action against terrorism willbe all the more effective if it observes the rules of lawand the principles of human rights and is coupled inthe longer term with policies for specific action deal with the underlying causes. The partners could

thus stress the importance of proper education in .thematter of human rights and fundamental freedoms.

Human rights

Commitment by the partners to respect human rightsand fundamental freedoms and the exercise of suchrights and freedoms, both individually and togetherwith other members of the same group, without any

discrimination on the grounds of race , nationality, lan-guage, religion or sex.

Stability, security, good-neighbourlyrelations

The partners could affirm that peace and stability inthe Mediterranean region are a common asset, whichthey undertake to preserve and strengthen by allmeans at their disposal.

A security partnership between Europe and the Medi-terranean should be based on respect for the followingprinciples:

Sovereign equality

Commitment by the partners to respect each othersovereign equality and all rights inherent in their sov-ereignty, in accordance with international law. Com-mitment by the partners to fulfil in good faith the obli-gations they have assumed under international law.

Non-interference

Commitment by each partner to refrain from anydirect or indirect intervention contrary to the rules

intemationallaw in the internal affairs of another part-ner.

Respect for territorial integrity

Commitment by the partners to respect the territorialintegrity and the unity of each of the other partners.

Non-use of force and peaceful settlement ofdisputes

Renunciation by the partners of any recourse, in theirmutual relations, to the threat or use of force against

the territorial integrity or political independence of an-other partner, or any other action that is incompatiblewith the aims of the United Nations. Commitment bythe partners to consider joint mechanisms of preven-tive diplomacy and to settle their disputes by peacefulmeans.

Fight against terrorism, organized crime anddrugs

Commitment by the partners to cooperate to preventand combat the threat of terrorist activities by ratify-ing and implementing the international instrUments

and commitments to which they subscribe in this con-nection, and by taking other appropriate measures.Commitment by the partners to fight together againstthe expansion and diversification of organized crimeand to combat the drugs problem in all its aspects.

Objectives in relation to disarmament andnon-proliferation

Commitment by the partners to fulfil in good faiththeir commitments under the arms-control, disarma-ment and non-proliferation conventions to which theyare party.

Call for all the partners to adhere to the Treaty on theNon-proliferation of Nuclear Weapons, the Conven-tion on Chemical Weapons and the Convention onBiological Weapons and to commit themselves

practical action in favour of chemical, biological andnuclear non-proliferation.

Commitment by each partner not to develop militarycapacity beyond its legitimate individual or collectivesecurity requirements. The partners could accordinglyreaff"mn their resolve to achieve the same degree

security and mutual confidence at lower levels of con-ventional weaponry.

Good-neighbourly relations, confidence andsecurity-building measures

Commitment by the partners to develop good-neigh-

bourly relations among themselves. The partnersshould support the processes of regional integrationemphasizing their importance for the stability of theregion. They could also undertake to consider any

confidence and security-building measures that couldbe taken jointly with a view to the creation of an 'areaof peace and stability in the Mediterranean , drawingfor example on the Stability Pact for the Central andEastern European countries.

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Conclusions of the Presidency

Economic and financial partnership: buildinga zone of shared prosperity

Introduction

1.51. Problems manifest themselves in different waysin each of the partner countries, but all are faced withthe same challenges:0 serious demographic pressure;0 a large farming population;

0 insufficient diversification in production and indus-trial trade;0 weak intraregional trade;0 an overdeveloped and inefficient public sector.

The partners could accordingly set themselves the fol-lowing long-term objectives:0 to accelerate the pace of sustainable socioeconomicdevelopment;0 to improve the living conditions of their popula-

tions by reducing the prosperity gap and increasing

the employment level;0 to encourage regional cooperation and integration.

To this end, a Euro-Mediterranean area should be es-tablished on the basis of free trade and partnership inthe maximum number of areas.

The partners would consider that policies should bepursued based on the principles of the market econo-my and the integration of their economies and on apartnership which takes account of their needs andtheir different levels of development.

They would give priority to the adaptation and mo-dernization of the economic and social structures ofthe non"EU Mediterranean countries in order to facil-itate the progressive establishment of a free-trade areaand in particular:0 to promote the modernization and development of

the private sector, as well as its legal and regulatoryenvironment, by means of greater administrativecooperation and by encouraging private investmentfrom local, regional and Community sources;0 to mitigate the social and environmental conse-

quences which may result from economic develop-ment, by according in particular the requisite priorityto the policies, programmes and projects most directlyaffecting the day-to-day life of the neediest popula-tions.

The partners should, lastly, endeavour to promote

mechanisms to foster transfers of technology.

Euro-Mediterranean free-trade areaThe partners would agree to establish a Euro-Mediter-ranean area based on free trade, to be progressively

completed by 201 0, covering most trade, based on the

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opportunities offered and the obligations resultingfrom the World Trade Organization.

The creation of a free-trade area would be an essentialcomponent of the Euro-Mediterranean partnership andwould require a special effort by all partners.

Within this area:0 manufactured products would move freely, withouttariff or non-tariff barriers;0 taking as a basis traditional trade flows, and as faras the various agricultural policies allow, trade in agri-cultural products would be progressively liberalizedthrough reciprocal preferential access;0 the right of establishment for companies, provisionof cross-border services and capital movements wouldbe progressively liberalized, having due regard to tl,ieGATS Agreement.

To that end, the ongoing negotiations between theUnion and non-member Mediterranean countries willbe concluded as soon as possible and, in parallel , sim-ilar free-trade agreements should be negotiated be-tween the Mediterranean countries themselves.

As a second stage, the Mediterranean countries couldbe encouraged to negotiate free-trade agreements withthe non-Mediterranean European countries associatedwith the Union.

In order to facilitate trade, the partners would propose:0 to progress by stages towards cumulation of originamong all the parties, in accordance with conditionscomparable to those envisaged by the Union vis-a.-visthe countries of Central and Eastern Europe;0 to adopt broadly similar rules of origin via the de-velopment of customs cooperation amongst all part-ners;0 to improve certification procedures to facilitatemutual recognition of certificates of conformity and,in the longer term, harmonization of standards;0 to adopt the highest possible standards of protectionfor intellectual property (TRIPs);0 to adopt similar competition rules.

The liberalization of services would be the subject ofspecial agreements, to be negotiated as soon as pos-sible.

Cooperation priorities

Investments

Rapid and sustainable growth and continued structuralreforms are essential to the success of economic de-velopment. This process should be supported by inter-nal savings, the basis of investment, to which shouldbe added considerably higher direct foreign invest-ments.

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For this reason the partners would stress the majorimportance, for economic development of investment,of the progressive elimination of barriers to invest-ment and of creating an environment conducive todirect foreign investment.

They would therefore propose to examine how toencourage direct investment, while respecting thespheres of competence of all parties (the EuropeanCommunity, its Member States and its Mediterraneanpartners).

Regional cooperation

The partners would recognize that regional cooper-ation is a key factor in promoting the creation of afree trade area. It is therefore important for trade todevelop both between the European Union and itsMediterranean partners and also, on a voluntary basis,between the partners themselves.

Business

The partners would appeal to companies to enter intobusiness agreements (joint ventures, marketingarrangements, subcontracting, licensing, etc.) withinthe Euro-Mediterranean area.

The partners would encourage such cooperation byproviding a favourable environment and regulatoryframework for companies, while respecting compe-tition rules (access to suitable sites, skilled labour,credit facilities, capital markets, etc.). Particularattention would be paid to support for the privatizationof public enterprises.

They would endeavour to promote industrial cooper-ation and modernization through:(J exchange of information on industrial and techno-logical developments, industrial policy, competitive-ness and the modernization, restructuring and priv-atization of industry, innovation and investment, tradeliberalization and its effects on industry and the legaland financial environment, and health and safety atwork;(J encouraging networks, joint projects, cooperationinfnlstructure and consultative mechanisms;0 development of technology and standards;0 improving conditions for developing foreign invest-ment in the Mediterranean partner countries.

The partners would consider it necessary to imple-ment a programme of technical support to SMEs inorder to improve the quality of products and services,including tourism. They would support cooperationamong SMEs and improved access to credit. The part-ners would recognize the importance of developing

the financial sector in the Mediterranean countries inorder to mobilize resources for assisting business.

They would encourage the integration of the informal

labour sector through the development of micro-busi"nesses and self-employment.

Environment

The partners would emphasize their interdependencein environmental matters, which requires a regionalapproach and greater cooperation together withimproved coordination of multilateral programmes ex"isting both within the framework of the EuropeanUnion and of the relevant international organizations.They would recognize the importance of reconcilingeconomic development with environmental protectionand of integrating environmental concerns into allaspects of economic policy (industry, research, en-ergy, transport, agriculture, fisheries, tourism andregional planning) in order to foster the sustainable

development of the region.

In order to reverse the current tendency towards a

degradation of the environmental situation of the

region, the partners would undertake to continue andstep up the efforts already being made. In this contextthey would confirm their attachment to the objectivesand structureS set up in the framework of the Barce-lona Convention and the Mediterranean action plan, torevitalize their efforts in the region. The .effectivenessand visibility of their action in this area should beincreased. To supplement these efforts, they wouldalso agree to establish a short- and medium-term pri"ority action programme, to concentrate their financialsupport essentially on such action and to provide amonitoring mechanism for its implementation, in par-ticular regular dialogue.

This programme should be focused in particular onproblems of water, waste, air pollution and the protec-tion of soil, coastal areas and the Mediterranean Sea,flora, fauna and conservation of the natural heritage,landscape and sites, the prevention of forest fires, andearth observation. It would be backed up, to preparefor the longer term, by action in training, education,network creation .and compilation of environmentaldata.

The partners would also agree on adopting and imple-menting, as soon as possible, any legislative and regu-latory measures which prove to be necessary, espe-cially preventive measures, and high standards.

Fisheries

The partners would recognize the importance of con-servation and rational management of fish stocks.

Accordingly, they will increase their participation andcooperation in the framework of the General FisheriesCouncil for the Mediterranean for the adoption and

effective implementation of appropriate conservationand management measures in order to ensure the last-ing exploitation of this area s fishery resources.

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They would confirm their declaration made at Herak-lion in December 1994 and propose to take appropri-ate action in the legal sphere to ensure suitable fol"low-up to the conclusions of the Conference.

They would improve cooperation On research into fishstocks in the Mediterranean and on training and scien-tific research and would envisage creating joint scien-tific monitoring centres for this purpose.

Energy

The partners would recognize their interdependence inthe energy sector. For the development both of energyresources and as regards energy exchanges, the appro-priate framework conditions need to be created forinvestments and the activities of energy cornpanie$.

They would step up existing cooperation concerningenergy policies. They would also encourage producer"consumer dialogue.

To that end, they would propose:0 to foster the association of Mediterranean countrieswith the Treaty on the European Energy Charter;0 to promote joint participation in research pro-

grammes;(J to develop viable renewable energy sources, in par"ticular solar energy technologies;0 to promote energy efficiency.

The partners would cooperate in creating the condi-tions enabling the companies operating in the energysector to extend energy networks (electricity, gas andoil pipelines) and in promoting link-ups betweenthem.

Other areas of cooperation

Agriculture and rural development

The partners would focus cooperation in particular on:0 support for polices implemented by them to diver-sify production;0 reduction of food dependency;

t:J promotion of environment-friendly agriculture;0 closer relations between businesses, groups and or"ganizations representing trades and professions in thepartners on a voluntary basis;0 support for privatization;0 technical assistance and training;0 harmonization of phytosanitary and veterinary stan-dards;0 integrated rural development, including improve-ment of basic services and the development of associ-ated economic activities;

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0 cooperation among rural regions, exchange of ex-perience and know-how concerning rural develop-ment.

Infrastructure development

(a) Tran$port

The partners would underline the importance of anefficient transport system within the Euro-Mediterra-nean area as a precondition for the expansion of tradeflows.

To that end, they would respect international maritimelaw principles and in particular the freedom to provideservices in international transport and free access tointernational cargoes.

They would agree on a priority programme whichwould incorporate environmental benefits in the fol-lowing areas:0 improvement of efficiency of port and airport in-frastructure;t:J simplification of administrative procedures in portsand airports, including computerization;0 harmonization of air"traffic control and manage-ment systems;0 improvement of multimodal, combined sea and airtransport acro$S the Mediterranean;0 improvement of safety at sea and air safety andmore efficient monitoring of marine pollution;0 development of east-west land links on the southernand eastern shores of the Mediterranean;

(J connection of the Mediterranean partners' networksto the trans-European networks, including the identifi-cation of multimodalcorridors of common interest inorder to ensure interoperability.

(b) Information technology and telecommunications

The partners would underline the importance of a mo"dern, efficient telecommunications network, parti"

cularly .as regards basic services for economic andsocial development. To that end, they will focus on:0 development of infrastructure, particularly in rural

areas, to facilitate access to services;t:J the modernization of telecommunications (legisla-tion, regulations, pricing structure and transparency,privatization, etc.0 access to the information superhighway and to mul-timedia networks;

0 transfer of technology, research and training (dis-tance learning, teleworking, SMEs and health);0 development of interadministrative informationnetworks within the Euro-Mediterranean economicarea;0 cooperation among telecommunications companies

in the above areas.

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Conclusions of the Presidency

Local authorities and regional planning

The partners would affirm their willingness to cooper-ate and examine their interdependence in this areaand, with this aim:0 to define a regional planning strategy for the Euro-Mediterranean area appropriate to countries ' require-ments;0 to promote cross-border cooperation;

0 to foster cooperation among local authorities.

As far as towns are concerned, emphasis would be

placed on housing, public transport and water-supplyand sanitation services.

Research and development

The partners would consider it necessary to promoteresearch and development and tackle the wideninggap in scientific achievement, taking account of theprinciple of mutual advantage.

To that end, the research capacity of the Mediterrane-an rim countries should be improved and assistancegiven for the training of scientific and technical staff,to promote better integration of young researchers inthe region.

Implementation of the three Rio Conventions on bio-logical diversity, the fight against desertification andclimate change constitutes an ideal area for cooper-ation.

In addition, qualified research institutes and highereducation establishments from European and Mediter-ranean countries will participate in joint research pro-grammes, based in particular on the creation of scien"tific networks on c~,early defined topics.

In this context, the partners would note withsatis-faction the opening-up On a case-by-case basis ofmany specific programmes under the Communityfourth framework programme, particularly those deal-ing with the environment and technology, health andsociety, research on renewable resources, urban devel-opment, the information technologies programme andthe communications technologies programme.

These areas are in addition to those already subject tothe same arrangements under the Community s third

framework programme.

Lastly, they would wish to set up a committee to mon-itor Euro-Mediterranean cooperation on research anddevelopment so as to follow up, in particular, the dis-cussions started on 21 and 22 March in Sophia Anti-polis.

Statistics

The partners would recognize the importance of com-prehensive, up-to-date statistical information. They

would promote closer cooperation between the Statis-tical Office of the European Communities (Eurostat),the Member States' statistical offices and the statisti-cal offices of interested Mediterranean countries, inparticular for harmonizing methodology and exchang-ing data. A conference organized by Eurostat wouldexamine the key needs of the national statistical sys-tems of the Mediterranean countries in order to deter-mine priority areas of cooperation.

Means of coopel"ationIn order to implement the partnership, and inpartic-ular to back up the efforts involved in setting up a freetrade area, the partners would stress the importance ofefficient financial cooperation, managed in the frame-work of a multiannual programme, adapted to itsobjectives and priorities and which takes account ofthe specific characteristics of each of the partners.

For this purpose the Community considers that thepartnership should benefit from substantial additionalfinancial assistance for the period 1995-99. Thiswould be supplemented by EIB assistance in the formof increased loans and financial resources allocatedbilaterally by the Member States, with a view toensuring through coordination of contributors, in com-pliance with the principle of subsidiarity, the optimumcomplementarity and effectiveness of such assistanceand a clear overall profile for European Union action.

The partners would recognize the importance of soundmacroeconomic management to ensure the success oftheir partnership. To this end, they would agree on thevalue of economic-policy dialogue between the Com- munity and each of the Mediterranean partners, parti-cularly under new agreements.

Partnership in social and human affairs

Introduction

52. The partners would work to encourage the partic-ipation of civil society in the Euro-Mediterraneanpartnership. With this in view, they would developinstruments of decentralized cooperation encouragingexchanges between those active in development: lead-ers of civil and political society, the cultural world,universities, the research community, the media, orga-nizations, trade unions and public and private enter-prises. They would undertake to promote the partici"pation of women in such exchanges, because of theirkey role in development.

The partners would also recognize that current pop-Ulation trends must be counterbalanced by appropriatedemographic policies to accelerate economic take-off.In this context, the partners would consider this chal-lenge a matter of priority.

They would consider that the development of humanresources is vital both in the education and training of

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Conclusions of the Presidency

young people and in the areas of culture and health. Inthis regard, they would stress the importance in thisfield of the principle of subsidiarity, which reflects thedifferent responsibilities of the Member States and theCommunity, and of linguistic diversity.

They would acknow)edge the importance of the roleplayed by migration in their relationships.

They wou)d consider that cooperation on democracyand human rights should be an essential part of ex"changes among civil society and would require appro-priate action.

While identifying common priorities and objectives inthe fields of justice and home affairs, the partnerswould recognize the need for differentiatedapproach that takes into account the diversity of thesituation in each country.

Cooperation in these areas could include the negotiat-ing of conventions.

Cooperation priorities

Education and training

The partners would encourage:0 a full exchange of information On systems , policiesand action in the field of education and training;0 the development of vocational training pro-grammes, with the emphasis on the private sector;0 promotion of cooperation networks among univer-sities and encouragement of mobility of researchworkers and teaching staff;0 strengthening of links between education and busi-ness;

0 development of education, with particular referenceto the education of young girls and adult literacy train-ing;0 development of programmes in management and

executive training.

Social development

The partners would acknowledge the importance ofsocial development which, in their opinion, should gohand in hand with any economic development. They

would give particular priority to respect for basicsocial rights.

Migration

The partners would agree on the need to increase theirefforts to reduce migratory pressures. To this end theywould agree:0 to identify .the major causes of migratory pressuresand their regions of origin;

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0 to promote programmes of assistance for job cre-

ation and professional training in order to counter theexodus of manpower, particularly the most skilled;(J to promote the role of migrants legally resident inthe Union in the economic development of theirregions of origin, particularly through the use ofremittances.

They would undertake to discuss living conditions formigrants and expatriates legally resident within theirrespective territories.

The Union will ask its Mediterranean partners to ac-knowledge their obligations as regards the readmis-sion of their nationals who had left the country.

In the area of illegal immigration, the partners wouldpropose to establish closer cooperation , which wouldimply, inter alia:0 facilitation of readmission, including the speed-

ing-up of procedures to establish nationality;P cooperation on border controls;0 stepping up the exchange of information between

the relevant administrative services on illegalmigrants and the routes used by them;0 exploitation of the possibilities offered by recourseto bilateral joint committees;0 treating expelled nationals in a manner which COm"plied with national law and with the partnership

commitments on human rights, in compliance alsowith the United Nations Convention of 10 December1984 against torture and other cruel, inhuman ordegrading treatment or punishment.

Drug traffickingThe partners would agree on the need for a coor-dinated approach as regards drug trafficking. Theywould emphasize the need for close cooperation, be-tween both police and customs services, concerning,inter alia, the following measures:0 exchange of information on drug trafficking;0 destruction of crops;

0 making customs services aware of techniques fortargeting high-risk cargo;0 coordinated effective and efficient inspections ofshipping in the context of the relevant internationalconventions;0 strengthening the legal arsenal against drug traf-ficking and respect for international commitments;0 cooperation and exchanges of information between

departmens responSible for combating:the diversion of chemical precursors;

money laundering.

TerrorismThe partners would recognize the importance of pre-venting and combating terrorism together. To this end

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cooperation should be strengthened to combat thatthreat more effectively. Such cooperation couldinclude in particular:0 stepping up exchanges of information;0 improving the training of departments responsiblefor preventing and combating terrorism;0 identification of the various components involved(organization, financing, etc.

International crime

The partners would recognize that it is important

prevent and to work together more effectively to com-bat international crime in step with the developmentof their partnership.

They would agree to organize close administrative,police and customs cooperation, and to align national

legislative and regulatory texts in order to combat thevarious forms of crime in the Euro-Mediterraneanarea, including in the following fields:0 environmental protection and combating ecologicalcrime;0 combating counterfeiting;0 dealing with the various forms of child abduction.

Judicial cooperation

It would be advisable to develop judicial cooperationnecessary for the effective combating of drug traffick-ing and the various forms of international crime, inparticular those referred to above, which wouldrequire improvements in extradition procedures and inpolicy concerning international letters rogatory as wellas exchanges of magistrates and of information.

Racism and xenophobia

The partners would stress the importance of combat-ing more effectively the phenomenon of racism and

xenophobia and plan to cooperate to achieve this.

Combating corruption

The partners would agree to draw up a programme

action against corruption, because of the importance,topicality and international scope of the phenomenon.

They would consider amplifying the means of detec-tion and investigation enabling corruption to be coun-tered more effectively.

Other areas of cooperation

Culture and the media

The partners would agree on the need to improvemutual understanding by promoting cultural ex-

changes and multilingualism, while respecting theidentities of all involved.

Their partnership, the procedures for the implementa-tion of which would have to be specified at the Confe"renee, would focus on the cultural and creative heri-tage, cultural and artistic events, coproductions(theatre and cinema), dissemination of books and thewritten word of pictures and of works of art, trans-

lations and other means of spreading cultural aware-ness.

The partners would emphasize the importance of therole played by the media in mutual understandingamong societies and agree to promote exchanges and

cooperation, particularly in the areas of training, co-production and dissemination.

Health

The partners would recognize the following prioritiesin their partnership:

0 action on raising awareness, information and pre-

vention;0 development of public health: health care, in partic-ular primary health centres;0 maternal and child health, family planning and con-trol of communicable diseases, including AIDS.

Youth

The partners would recognize the importance of pro-moting contact and exchanges among young people inthe framework of decentralized cooperatiop pro-grammes. To that end they would propose:

to support activities promoting the social and voca"tional integration of young people, particularly thoselacking qualifications, in their local environment;

to promote the training of organizers and socialworkers in the youth field;0 to promote the training of young workers for scien"tific, cultural and technical activities, with particularreference to the role of women.

Follow-up to the Euro-Mediterraneanpartnership/.53. The Barcelona Conference should provide thebasis for a process which should develop, and thepartners should therefore agree that the various activ-ities will be followed up by ad hoc thematic meetingsof ministers, senior officials and expeI1s, exchanges

experience and information, contacts between thoseactive in civil society or any other appropriate means.These meetings may be based on existing cooperationstructures, or on any other more suitable formula onwhich the Conference might agree.

The Union will propose to its partners the principle

regular meetings at Foreign Minister level. The fre-

Bull. ED 6- 1995

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Conclusions of the Presidency

quency of the meetings will be determined by agree-ment between the parties.

This overall dialogue, which should combine the

utmost practicality with the least possible formality,would supplement but not replace the dialogue carriedon by the European Union with each MediterraneanState or entity under bilateral agreements.

Parliamentary and local"authority contact arrange-ments could also be considered.

VI - Fiftieth anniversary of the UnitedNations

Declaration of the Cannes European Council,26 and 27 June 1995

1.54. Today, the 50th anniversary of the signing of theCharter of the United Nations in San Francisco, theEuropean Council:0 solemnly reaffirms the European Union s attach-

ment to the purposes and principles of the Charter ofthe United Nations and renews its commitment toserving the ideals and action of the United Nations;0 emphasizes the extent to which the United Nations,which was created in response to the tragedy of theSecond World War, helped in the reconstruction ofEurope and in aiding the refugees of the conflict;0 pays tribute to the work of the United Nations over50 years and to its major contribution to consolidatinginternational law, maintaining peace and internationalsecurity in cooperation with the regional organiza-

tions, to disarmament, to decolonization, to devel-opment and humanitarian aid, to protecting and pro-moting human rights and to cooperation betweennations in the most diverse fields;tJ vigorously affirms the need, in a world facing polit-ical, economic, cultural and social challenges ofincreasing complexity, to preserve and develop aforum in which universal commitments are made andin which coordinated initiatives are implemented incooperation with the regional organizations;0 points out that the success and the proper function-ing of the United N::ttions depend above all on the po-litical support of its Member States and on the re-sources which they put at its disposal, notably by full,punctual and unconditional payment of their financialcontributions;0 calls on the United Nations and its Member Statesto pursue and develop the reform progr::tmme under

way, in order to remedy the weaknesses in some areasand to be ready to take up the challenges of the nextcentury;0 hopes in this regard that progress will be made inad::tpting UN structures and institutions , including theSecurity Council;

Bull. EU 6- 1995

0 supports the Secretary-General' s moves to streng-then the Organization s preventive diplomacy capac~ities and to adjust its peacekeeping tasks and re-sources, a field in which the UN plays an irreplaceablerole, since only .the UN may decide on the use of forcein international relations;

0 also expresses its attachment to the United Nationsrevival of a global sustainable development policycentred on human beings, incorporating the achieve-ments of the major Conferences which it has orga-nized and laying stress on ::tiding the poorest coun-tries, in close consultation with bilateral donors andother multilateral agencies;

(J calls On the Secretary-General to step up further hisdrive to increase efficiency in the Organization s op-eration and in the management of its staff and finan-cial resources;

0 reaffirms that the European Union, which is by farthe Organization s largest financial provider, the lead-ing contributor in troops to peacekeeping operations,the principal donor of multilateral development aidand of humanitarian aid, intends, for its part, to con-tinue to support the United Nations.

VII Message from the European Council

to the 31st summit of the OAU

/.55. The European Council sends the Organization ofAfrican Unity, meeting at its Summit in Addis Ababafrom 26 to 28 June, a message of friendship and sup~

port in its efforts towards peace and development inAfrica. It welcomes the cooperation that has been un-dertaken between the European Union and the Orga"nization for African Unity since the Essen EuropeanCouncil in December 1994 and reaffirms its confi-dence in the OAU' s ability to play its role in thefuture of the continent of Africa.

vm - European Union statement onBurnndi

1.56. The European Council is seriously concerned atthe continuing deterioration in the situation inBurundi. It expresses its full support for the Burundiauthorities' efforts to achieve national reconciliationand restore order, provided that human rights are fullyrespected. It condemns all acts of violence andattempts at destabilization by extremists of every hue.It reafflflDs the European Union s readiness to contin-ue its steadfast support for Burundi throughout thesetrying times.

The European Council wants a conference on peace,security and stability in the region of the Great Lakesto be convened as soon as possible under the aegis ofthe United Nations and the OAU.

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Conclusions of the Presidency

IX Fimmcial cooperation with thecountries of Central and Eastern Europeand the Mediterranean

1.57. The European Council approved the table belowin line with the guidelines in paragraph 6 of the work-ing document distributed at the Council meeting on12 June 19951

(million ECU)

Central MeditelTaneanand East non-memberEuropean countriescountries

1995 1154 550

1996 1235 900

1997 1273 1000

1998 1397 1092

1999 1634 I 143

Total 6693 4685

I The Council quoted the 1993 Interinstitutional Agreementreiterating that some available funds should be left undereach heading within the respective ceilings.In view of this, the Council hoped that, when drawing upthe budget, the budgetary authority would leave someroom for manoeuvre under heading 4 in the form of somenon-earmarked appropriations that could be used to dealwith unforeseen events and developments in the situationincluding provision for the countries of Central and East-ern Europe and non-member countries in the MeditelTane-an which had been given special priority by the EssenEuropean Council.As a branch of the budgetary authority, the Council wouldbe pushing for this and was counting on the Parliament'scooperation in this matter.

Eighth EDF

1.58. The table below shows the amounts and thefinancing of the eighth EDF.

(million ECU)

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

United Kingdom

Austria

Finland

Sweden

Resources not allocated from previousEDFs

Non.utilizable resources from sev-enth EDF

Increase in humanitarian aid from

the budget in favour of the ACPStates

Conversion of special loans intogrants

Total

503

275

3000

160

750

3120

1610

670

125

1630

340

190

350

150

142

160

13 307

For the record: The OCT portion is set at 1.28% of the totalamount of the eighth EDF.Loans from Em own resources will be added to the totalamount of the EDF.

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