EU – Accession negotiations

Integration process accelerated

Negotiations about the accession of the Republic of Croatia to the European Union continued in 2009. By the end of the year, the formation of a working group for drafting the Accession Treaty at EU level and the adoption of the Financial Package for Croatia's Accession in the amount of EUR 3.5 billion for the first two years of Croatia's membership, assuming that Croatia will accede on 1 January 2012, gave the negotiation process impetus and additional optimism.

The results achieved on the path towards membership in the European Union only obtain their full significance when regarded within the context of the substantially changed political circumstances in which accession negotiations are being conducted. Negotiations are particularly complex in view of additional dimensions to the overall process in respect to contents, technical and methodological elements and time frames, primarily reflected in the application of the benchmark mechanisms, due to EU experience obtained in accession negotiations with the countries in the fifth round of enlargement. The completions of the accession negotiations and the Accession Treaty before the end of 2010 as well as full membership in the European

Union at the earliest possible date remain the most important strategic goals of the Republic of Croatia.

In 2009, preconditions were achieved for the opening and closing of a number of chapters particularly significant for the economy and its competitiveness, including financial services, energy, agriculture, taxes and customs union, and for chapters crucial for the internal market, pertaining primarily to the four fundamental freedoms – free movement of services, workers, goods and capital. With a view of making full use of the potential of future EU investments, Croatia has also put great emphasis on the creation of an adequate administrative structure for efficient management of pre-accession funds.

A total of 28 chapters open and 17 provisionally closed

After the Republic of Slovenia had blocked negotiation talks for a year, the Intergovernmental Conference held in October was marked by a significant breakthrough - a total of 11 negotiating chapters were opened and provisionally closed. Despite the blockade, Croatia continued to work on other tasks within the negotiation process and to meet benchmarks of individual chapters throughout the year, so that at the end of the year a total of 28 chapters were open and 17

were provisionally closed. Negotiation positions for 31 chapters were also submitted.

In 2009, three Intergovernmental Conferences were held, two at the level of Heads of Delegations (foreign affairs ministers) and one at the level of Deputy Heads of Delegations (chief negotiators). Also, in the same period, four Intergovernmental Conferences were postponed, three of them during the Czech and one during the Swedish Presidency. During the Czech EU presidency, not one chapter was formally opened or provisionally closed due to Slovenia's blockade of the negotiations.

Six negotiation chapters were opened at the Intergovernmental Conference in Brussels on 2 October: 4 - Free Movement of Capital (3 benchmarks set for closing), 11 - Agriculture and Rural Development (3 benchmarks), 12 - Food Safety, Veterinary and Phytosanitary Policy (3 benchmarks), 16 – Taxation (3 benchmarks), 22 - Regional Politics and Co-ordi-nation of Structural Instruments (7 benchmarks) and 24 - Justice, Freedom and Security (6 benchmarks). At the same conference five chapters were provisionally closed: 2 - Freedom of Movement for

Workers, 6 - Company Law, 18 – Statistics, 21 - Trans-European Networks, and 29 - Customs Union.

At the session of the Intergovernmental Conference on 27 November, also held in Brussels, negotiating chapters 9 - Financial Services, 15 – Energy, 28 - Customer and Health Protection were provisionally closed.

The ninth session of the Intergovernmental Conference was held in Brussels on 21 December, at which time negotiations were closed for Chapters 3 - Right of Establishment and Freedom to Provide Services, and 19 - Social Policy and Employment.

Croatia continued to fulfil political criteria

Since the beginning of the negotiation process, a total of 23 benchmarks have been set for opening eleven negotiating chapters. The Republic of Croatia submitted all relevant documents on the fulfilment of agreed benchmarks for the opening of negotiations to the EU bodies. By the end of 2009, the fulfilment of 16 benchmarks for opening nine chapters was confirmed. The Republic of Croatia received an invitation to submit negotiating positions for these chapters. Benchmarks for opening Chapters 23 - Judiciary and Fundamental Rights, and 8 - Competition Policy are still being

processed. In this context, the EU Council discussed whether benchmarks for the opening of Chapter 23 - Judiciary and fundamental rights have been met. Although the European Commission expressed a positive view of the fulfilment of benchmarks for the opening of this chapter and suggested that negotiations start, a lack of consensus between the Member States on the quality of Croatia's co-operation with the International Criminal Tribunal for the Former Yugoslavia prevented this chapter from being opened. With regard to Chapter 8 - Competition Policy, consultations with the European Union on the remaining benchmark for opening the chapter regarding the shipbuilding sector were successfully closed. At the end of 2009, additional consultations were still held with the European Commission regarding the second privatisation cycle of the Croatian shipbuilding industry.

The Republic of Croatia received a total of 82 closing benchmarks for 26 chapters. In 2009, benchmarks were set for the closing of six chapters: 4 – Free Movement of Capital, 11 – Agriculture and Rural Development, 12 – Food Safety, Veterinary and Phytosanitary Policy, 16 – Social Policy and Employment, 22 – Regional Policy and Coordination of Structural Instruments, and 24 – Justice, Freedom and Security. Relevant documents on the fulfilment of a total of 45 benchmarks for closing 16 chapters have been submitted to EU bodies;

in 2009, 29 closing benchmarks for eight chapters were submitted: 2 - Freedom of Movement for Workers, 3 - Right of Establishment and Freedom to Provide Services, 9 - Financial Services, 15 - Energy, 18 - Statistics, 19 - Social Policy and Employment, 28 - Consumer and Health Protection, and 32 - Financial Control.

Seventh National Programme for the Integration of the Republic of Croatia into the European Union

Drafted in coordination with the Ministry of Foreign Affairs and European Integration and in co-operation with all state administration bodies, the seventh National Programme for the Integration of the Republic of Croatia into the European Union (NPIEU - 2009) was adopted by the Croatian Government on 29 December 2008. It stipulates all the obligations of state administration bodies and other institutions involved in the preparation process for accession to the European Union.

The NPIEU - 2009 is structured around criteria for EU membership: fulfilment of political criteria, economic adjustments and the ability to assume the obligations of EU membership. Along with a significant number of legal acts, the NPIEU also contains an overview of implementing measures to effectively meet undertaken obligations

and achieve readiness for membership. The Overview of Legislative Activities for 2009 is also a part of the NPIEU. It was forwarded to the Croatian Parliament for adoption on 13 February 2009 according to the established procedure. In line with this, 82 acts, 241 subordinate regulations and 125 implementing measures were adopted in 2009.

The Ministry of Foreign Affairs and European Integration is the national co-ordinator for the implementation of TAIEX (Technical Assistance and Information Exchange instrument) - the European Commission technical assistance programme for the alignment of national legislation. By providing technical assistance to the Republic of Croatia in line with established priorities under the obligations pertaining to the negotiation process of the Republic of Croatia for full EU membership, the programme proved a success in 2009. Apart from the State Administrative Bodies, other beneficiaries from Croatia also expressed their interest in this form of co-operation (regulatory agencies, non-governmental organisations, the Croatian Chamber of Economyand others). Representatives of the Ministry participated in

regular meetings between TAIEX co-ordinators from the Member States and TAIEX technical assistance beneficiary countries, in order to summarise results of the existing co-operation and to define the best possible modalities of future co-operation.

Fulfilment of political criteria - continuation of reforms

In 2009, the Republic of Croatia continued implementing the Stabilisation and Association Agreement within the framework of the foreseen mechanisms. At the meetings of bodies founded by the Agreement (Councils, Committees and their subcommittees), positions were exchanged regarding the achievements of the Republic of Croatia in meeting all the obligations assumed under accession talks and the Stabilisation and Association Agreement. European partners were acquainted with all the activities that Croatia was undertaking with a view to meeting political and economic criteria, and criteria pertaining to alignment with the acquis.

Croatia has truly invested significant effort in the implementation of the set political criteria and important social reforms. The 89 per cent accomplishment of the Action Plan of the Judicial Reform Strategy demonstrates the progress made: an objective and transparent system

of employment, traineeship, appointment and promotion of judges was established; the backlog of cases was reduced by a total of 51 percent; changes to all of the most important Procedure Acts were prepared and implemented to accelerate court proceedings. A rationalisation in the number of courts and state attorney's offices also increased the efficiency of the judiciary.

A strong legislative and organisational mechanism was established for combating corruption. Supervision of the implementation of anti-corruption measures has been organised at the highest political level. Many high-level corruption cases were prosecuted, and the implemented measures helped increase the number of verdicts by 138 per cent in 2009. Special attention was paid to fighting corruption in public companies. Good regional cooperation was established aimed at combating organised crime and Croatia will insist on its further strengthening.

In 2009, the Republic of Croatia continued to fully co-operate with the International Criminal Tribunal for the Former Yugoslavia. A special Working Group was formed that conducted numerous additional actions, about whose activities Croatia regularly reported to the Hague Tribunal. Competent state authorities continued with investigations, indictments and criminal proceedings against perpetrators of war crimes, in compliance with European standards.

In the reform of the state administration special emphasis was placed on the strengthening of necessary capacities for its implementation. Systematic efforts were invested in human resources development and training of civil servants at all levels.

The protection of human rights and fundamental freedoms was also in the focus of attention. The Anti-discrimination Act and Free Legal Aid Act have been fully implemented. Special attention was given to the protection of children’s and women's rights. Attention has also been focused on increasing employment of and representation of minorities at national, local and regional levels. The Republic of Croatia has also continued to encourage the voluntary return of refugees and displaced persons. Measures and activities under the Action Plan for the Accelerated Implementation of the Housing Care Programme for Former Tenancy Right Holders were implemented on a regular basis.

Final tasks: technical adaptation of the acquis communautaire

Technical adaptation of the acquis communautaire began in October. This refers to a technical procedure whereby Croatian terminology and competent institutions for specific areas, technical and

professional terms and definitions in Croatian, and sometimes in English, are entered into EU legislation. Work on the technical adaptation of the EU acquis communautaire follows the methodology applied during the accession of Bulgaria and Romania. The performed technical adaptations will therefore not be a part of the Accession Treaty, as was the case with the ten states that joined the EU in 2004, but will be adopted following the usual legislative procedure and published in the Official Journal of the European Union just before Croatia's accession.

Translating Croatian legislation and the acquis communautaire: emphasis on technical and legal editing

Upon the accession of Croatia into the European Union, Croatian will become one of the official languages, while the Croatian version of the acquis, in accordance with the principles of multilingualism, will become an authentic and official text of EU legal regulations. Therefore the Croatian versions of treaties, regulations, directives, decisions and recommendations which represent EU legal regulations, require not only linguistic, but also technical and legal editing. However, it should be emphasised that Croatia is only preparing draft versions while EU

proof-read by native speakers. Draft versions of Croatian legislation in English are published on the the Ministry's web pages. The page currently contains about 500 translated acts and subordinate acts.

Institutional relations between Croatia and the EU