2005 Year of the Mediterranean

Transcription

1 2005 Year of the Mediterranean The Barcelona Process: Ten Years On > > > EUROMED European Commission

2 This brochure has been published in French, English and Arabic on the occasion of the Euromed Summit (Barcelona November 2005) within the framework of the «Regional Information & Communication campaign about the Euro-Mediterranean Partnership» managed by the European Commission (EuropeAid Co-operation Office in co-operation with DG Relex) Photos EC: pages 1, 12 (school), 13 (building a school), 24 (Jerusalem), 30 (electricity), 34 (students) EC / C. Gofas: page 12 (trader Gaza) EC / R. Halawani: page 13 (model farm Gaza) EC / M. Jauson Pons: page 18 (rural women) EC / M. Mercier: page 21 (craftsmen + background) EC / M. Osman: page 19 (maternity) EC / M. Saule: page 14 (Petra) EC Delegation in Algeria / M. Liberati: pages 8, 9 EC Delegation in Egypt: page 11 EC Delegation in Jordan: page 15 (project 2) EC Delegation in Lebanon: page 17 EC Delegation in Syria: pages 20 (initialling of the EU-Syria AA), 21 (women) EC Delegation in Israel: pages 24, 25 EC Audiovisual Library: page 15 (project 1) EPA Photo / Kerim Okten: pages 26, 27 Euromed Audiovisual: pages 4, 5, 6, 30 (computer), 33, 35 (young boys) Euromed Heritage: pages 15 (background), 34 (crafts) European Investment Bank Audiovisual Library: pages 23 (workers), 29 (barrage in background), 39 (all pictures) Panos: pages 9 (women), 14 (computer), 16 (Beyrouth) 19 (micro-credits + background), 22 (house), 23 (school), 29 (women), 30 (worker), 31 (road + textile in background), 32 (water), 35 (young girls), 37 (girl + background) Europe Direct is a service to help you find answers To your questions about the European Union Freephone number: A great deal of additional information on the European Union is available on the Internet. This can be accessed through the Europa server ( Conception/Pre-press: Mostra Communication Luxembourg: Office for Official Publications of the European Communities, 2005 ISBN European Communities, 2005 Reproduction is authorised provided the source is acknowledged. Printed in Belgium Printed on white chlorine-free paper

3 Foreword T his year, 2005, the tenth anniversary of the Euro-Mediterranean Partnership is more than a symbolic year in our relations with our Mediterranean partners. It is also a decisive year. The tenth year of any relationship commands special attention. It has been dubbed The Year of the Mediterranean, in part to celebrate the tenth anniversary of the Barcelona Declaration but also to help us focus on the continuing evolution of that partnership. It offers us the opportunity to look back, and to look forward, to take stock of what we have achieved and to discuss how to deal with the challenges we are still facing. Benita Ferrero-Waldner Member of the European Commission responsible for External Relations and European Neighbourhood Policy I personally believe that Barcelona has made a difference to people s lives in the region already. It has also permitted the European Union to reinforce its strong links and solid relations with our Mediterranean partners. Now, the Barcelona process has been reinforced by the European Neighbourhood Policy. The Neighbourhood policy builds on Barcelona s objectives and instruments, strengthening our cooperation with each country individually. There may be a feeling that the full potential of relations with our Mediterranean partners has not yet been exploited. There are areas where we need to accelerate progress. That is why Barcelona 10, and the meeting of Euro-Mediterranean Heads of State this November is so important. The Commission Communication and associated 5-year work programme, which will be discussed at the Summit in Barcelona, aims at giving a fresh impetus to the Partnership and putting the emphasis on people. We need to bring the partnership closer to our citizens concerns. The Barcelona process has, to a large extent, been an inter-governmental process. It is now high time to address more successfully questions that are of the interest of the citizens and should be at the centre of our concerns in the partnership. In a year that has seen the publication of many reports and analyses of Europe s relations with its southern partners, this publication eschews political analysis and looks instead at how our partnership has improved the lives and livelihoods of our neighbours. Over the next years I hope to see many more success stories, such as the ones illustrated in this brochure, as together we forge closer and closer ties. 1

4 Table of contents The Barcelona Process 3 > 6 The Bilateral dimension 8 > 9 Algeria 10 > 11 Egypt 12 > 13 Gaza Strip and West Bank 14 > 15 Jordan 16 > 17 Lebanon 18 > 19 Morocco 20 > 21 Syria 22 > 23 Tunisia 24 > 25 Other Euromed Partners Israel 26 > 27 Other Euromed Partners Turkey The Regional dimension 29 Political and Security Partnership 29 > 32 Economic and Financial Partnership 33 > 35 Cultural, Social and Human Partnership 35 Cross border Co-operation A major Information Campaign 36 European Investment Bank FEMIP 37 > 38 The Barcelona Process Continues > 40 Key Dates Facts & figures Further information

5 2005 > Year of the Mediterranean Bridging the Mediterranean: the Barcelona Process This brochure marks the 10 th Anniversary of the Barcelona Process. This is a continuing process November 1995 Launch of the Barcelona Process, Euro-Mediterranean Partnership, EU Conference, Barcelona April 1997 Second Euro-Mediterranean Conference, Malta Europe and its Mediterranean Partners have long been linked by history, geography and culture, Europe being currently the main source of tourism for these countries and the first destination of migrants from the Mediterranean. Today, in an increasingly globalised world, the European Union remains the main partner of Mediterranean countries both in trade of goods and services. More than 50% of the region s trade is with the EU, and for some countries the EU represents the destination of more than 70% of their exports. Europe is the largest direct foreign investor (36% of total foreign direct investment) and the EU is the region s largest provider of financial assistance and funding, with almost 3 billion per year in loans and grants. The two regions are also closely connected through The Euro- Mediterranean Partnership (the Barcelona Process) which celebrates its tenth anniversary in November This occasion prompted the Euro-Mediterranean Foreign Ministers to designate 2005 as The Year of the Mediterranean. This symbolic and important year comes in the context of profound changes in the region. A Euromed Summit of Heads of State, meeting in Barcelona in November to celebrate ten years of Partnership, will discuss not just the achievements of the past ten years, but also the challenges that lie ahead and how the evolution and strengthening of the Partnership can meet these challenges. > > The Barcelona Declaration of November 1995 launched an innovative relationship between the then 15 countries of the EU and 12 countries on the southern and eastern coasts of the Mediterranean, a relationship that works on the basis of partnership, dialogue and joint ownership to advance common objectives. In some ways the evolution of the Euro-Mediterranean Partnership can be compared to the construction of the European Union. Just as Europe s incremental move towards integration failed to attract too much media attention, neither has the Barcelona Process been a headline-maker. Nevertheless, it has continued to make solid and sustainable advances. It is, as its title implies, a process. As the Partnership ends its first and defining decade, looking back illustrates how far the process has evolved in the relatively short time span. The much vaunted aspirations set out in the Barcelona Declaration outlined peace, stability and prosperity in the whole Euro-Mediterranean region as the major objectives. This was to be achieved through the reinforcement of political and security dialogue; through an economic and financial partnership and the establishment of a Free Trade Area; and through the encouragement of mutual understanding between people and cultures. And now, the European Neighbourhood Policy, with its emphasis on increased EU engagement and prospects of enhanced support and co-operation for reform-minded countries, will help advance these objectives further. 3

6 1 July 1997 Entry into force of the Interim Association Agreement with the PLO, on behalf of the Palestinian Authority 1 March 1998 Entry into force of the EU-Tunisia Association Agreement April 1999 Third Euro-Mediterranean Conference, Stuttgart 1 March 2000 Entry into force of the EU-Morocco Association Agreement > > > > Promoting regional integration Essentially, this is an attempt to extend southwards the zone of peace and prosperity achieved within the EU, through a process of North-South, but particularly South-South integration. Regional integration in the Mediterranean region points an encouraging way forward with the signing of the Agadir Free Trade Agreement between Egypt, Jordan, Morocco and Tunisia in 2004 and Turkey s respective Free Trade Agreements with Morocco, Tunisia, Israel and the Palestinian Authority. The establishment of a Free Trade Area by 2010 is a means to an end, a way to attain the longterm goal of peace, something Europe had attained through integration. The regional dimension has been further enhanced across the Partnership s three chapters by the creation of the Euro-Mediterranean Parliamentary Assembly, by the establishment of the European Investment Bank Facility for Euro-Mediterranean Investment and Partnership (FEMIP) and by the inauguration of the Anna Lindh Foundation for the Dialogue between Cultures. The bedrock of co-operation between the EU and Partners are the Association Agreements which replace the trade and co-operation agreements concluded in the 1970s. The Partnership is implemented through a series of individual Association Agreements negotiated and concluded between the European Union and the Mediterranean Partners. The agreements cover the three main areas included in the Barcelona Declaration: political dialogue, establishment of a Free Trade Area and economic, financial, social and cultural co-operation. All agreements contain a clause defining respect for democratic principles and fundamental Human Rights as an essential element of the agreement. Agreements have been negotiated and concluded with all Partner countries and have already entered into force in Algeria, Tunisia, Israel, Morocco, Jordan, Egypt and the Palestinian Authority after ratification by the parliaments in the Euro-Mediterranean countries. All countries have agreed on a schedule of tariff dismantling, a necessary prerequisite on the road to free trade. There have been some concerns among Mediterranean Partners that the 2004 enlargement of the European Union, which incorporated eight Eastern European countries (as well as the two Mediterranean Partners Malta and Cyprus), might result in new borders being drawn, or in the creation of new dividing lines, to the detriment of relations with the Southern Partners. The European Neighbourhood Policy is a clear response to those concerns and to the changing composition and shifting borders that enlargement implies. The new policy has been designed to include and integrate neighbouring Partners into the new, enlarged economy, by offering them many new opportunities both within the new expanded market of 25 countries, and in crossborder and sub-regional co-operation. 4 > The Barcelona Process

7 The Barcelona Process is central to our relationship with our southern neighbours, and the Neighbourhood Policy can help us move even closer to them. Benita Ferrero-Waldner, Commissioner for External Relations and European Neighbourhood Policy 1 June 2000 Entry into force of the EU-Israel Association Agreement November 2000 Fourth Euro-Mediterranean Conference, Marseilles 22 April 2002 Signature of the EU-Algeria Association Agreement April 2002 Fifth Euro-Mediterranean Conference, Valencia. Adoption of the Valencia Action Plan > > > > Complementarity and co-operation Neighbourhood and Barcelona are complementary and mutually reinforcing, aiming to create enhanced relations while supporting and promoting domestic reforms. The European Neighbourhood Policy offers Partners the possibility of a stake in the EU internal market and the chance to participate in EU policies and programmes. It builds on existing systems and structures, using the Barcelona platform, to agree common Action Plans with Partners on economic and political reforms that can bring about a qualitative change in Euro-Mediterranean relations. While substantial progress has been made towards these ends, much still remains to be done. The Barcelona Process has established a comprehensive set of co-operation activities in areas ranging from trade liberalisation, economic reform and infrastructure networks to culture, education and the movement of people. It has shown that governance, Human Rights and common global challenges can be fruitfully discussed, if they are handled through dialogue and Partnership. The MEDA programme, the second largest external assistance programme of the European Union after the Phare Programme for the candidate countries, has been the principal financial instrument of the EU for the implementation of the Euro- Mediterranean Partnership. Its objectives and main areas of intervention are derived from the Barcelona Declaration. Over time it has come to focus even more on measures to accompany the reform of political, economic and social structures in the Partner countries. The bulk of resources are channelled bilaterally to Partners but there are also several regional activities aiming to promote confidence, networking and co-operation between Partners. For the period MEDA accounted for million of budgetary resources allocated for financial cooperation between the EU and its Mediterranean Partners. The figure for is million. The other important source of funding is the European Investment Bank: the EIB has lent 12.2 billion for development activities since In all, almost 3 billion in aid is made available to the Mediterranean countries every year through these two instruments. The Euro-Mediterranean Partnership is also about bringing people and cultures together through Partnership and dialogue. To this end the inauguration of the Anna Lindh Foundation for the Dialogue between Cultures in Alexandria in 2005 will help focus minds on the point that partnerships are principally about people. This will be done in a very practical way by giving present and future generations the instruments of dialogue. Young people will be encouraged to learn at least one foreign language and to acquire knowledge about all religions and cultural traditions that have shaped the Euro-Mediterranean region as the crossroad of civilisations. 5

8 1 May 2002 Entry into force of the EU-Jordan Association Agreement March 2003 Announcement of European Neighbourhood Policy 2-3 December 2003 Sixth Euro-Mediterranean Conference, Naples 1 June 2004 Entry into force of the EU-Egypt Association Agreement March 2005 Euro-Med Parliamentary Assembly, Cairo > > > > > A greater role for civil society On the political front progress has been slower than originally anticipated. However, the development of the non-governmental platform as well as the Euromed fora is encouraging. Despite the lack of significant changes in the political scenario in many of the Partner countries, a debate on democratic transition and reform has emerged in the region. Institutionally, the architecture is in place to meet the challenges that reforms imply. However, the continuing conflicts in the region have often impeded the search for consensus. But while progress on the Middle East Peace Process is an essential element for the success of any reform policy, the ongoing conflict cannot be used as a screen to cover inaction or to avoid reforms. The UNDP s series of Arab Human Development Reports have drawn attention to the major deficits in education, gender equality and political freedoms among certain countries in the Mediterranean. The lack of individual freedoms and the subjugated role of civil society have contributed to smothering individual initiative and economic development and have resulted in disconnecting populations from decision-making processes. However, it is not Europe s role or intention to impose the necessary reforms; home-grown change is the most acceptable and durable. Europe s great catharsis after World War II involved the pioneering and development of a unique process of regional integration, as well as/and of the pooling and balancing of national sovereignty against the need for common structures and common disciplines. It has been a tremendous force for political stability. Europe can, therefore, help and support this Mediterranean quest for transition. Current circumstances demand that we work closer together to address not just the common global problems of terrorism, illegal immigration, the proliferation of weapons of mass destruction, environmental degradation, international crime, etc. but also that we jointly tackle those problems that hinder the region s development: unemployment, lack of trade competitiveness, insufficient growth and low investment. In an exercise that squares the circle, this year ten years after the signing of the Barcelona Declaration all roads return to Barcelona for the specially convened Euro-Mediterranean Summit in November. The Euro-Mediterranean Partnership has arrived at this watershed year with the knowledge and strength that experience brings to long-term relationships. While it will cheer the successes of the last ten years, the growing maturity will ensure that it is not blind to its shortcomings. Those challenges Human Rights and democracy, sustainable economic growth, and reform and education are underlined in the Commission Communication that marks this anniversary year. Suggestions for joint actions to address those challenges are in an accompanying five-year work programme. Combined with the Action Plans negotiated with Partners under the European Neighbourhood Policy, the Euro- Mediterranean Partnership prepares to enter its second decade, returning to the place of its birth for further inspiration and impetus 6 > The Barcelona Process

9 Barcelona: The Bilateral Dimension 12 April 2005 Launch of Five-Year Work Programme to reinforce the Euro-Mediterranean Partnership April 2005 Launch of Anna Lindh Euro-Mediterranean Foundation, Alexandria May 2005 Seventh Euro-Mediterranean Conference, Luxembourg November th Anniversary Conference of the Barcelona Process, Barcelona Entry into force of the EU-Lebanon Association Agreement and of the EU-Syria Association Agreement > > > > > The Maghreb and Mashreq Within the context of the Barcelona Process, the European Union enjoys a Partnership relationship with four Maghreb countries: Morocco, Algeria, Tunisia and Libya. The EU has already concluded Neighbourhood Action Plans with Morocco and Tunisia. Libya is currently an observer, but can become a full Partner of the Barcelona Process if it accepts the Barcelona acquis. The EU also maintains a special relationship with Mauritania, the fifth member of the Union of the Arab Maghreb (UAM), through the country s membership of the ACP group of states. The five countries of the Mashreq are Partners Egypt, Jordan, the Gaza Strip/West Bank, Lebanon and Syria as well as Israel and Turkey. The EU has already concluded Neighbourhood Action Plans (NAPs) with Jordan, Israel and the Palestinian Authority. The European Neighbourhood Policy and the Neighbourhood Action Plans are based on the joint definition of a set of priorities, whose fulfilment will bring neighbouring countries closer to the European Union. These priorities are incorporated in the agreed Action Plans, covering a number of key areas for specific action: political dialogue and reform; trade and measures preparing partners for gradually obtaining a stake in the EU s Internal Market; justice and home affairs; energy, transport, information society, environment and research and innovation; and social policy and people-to-people contacts. Progress in meeting the agreed priorities will be monitored in the bodies established by the Association Agreements. The Commission will report periodically on progress accomplished. On the basis of this evaluation, the EU, together with Partner countries, will review the content of the Action Plans and decide on their adaptation and renewal The Action Plans will provide a point of reference for the programming of assistance to the countries concerned. Assistance from existing sources will be complemented in the future by support from the European Neighbourhood and Partnership Instrument. 7

10 The Barcelona process > The Bilateral Dimension Algeria Liberalising trade, supporting civil society Algeria has undergone major changes over the last ten years, transforming its centralised and protected economic system into a more open economy. Unfortunately this process coincided with, and was hampered by, years of terrorist activity in the country. With this period behind it, Algeria is now able to benefit from EU aid in establishing the country s new economic structure. The EU-Algeria Association Agreement signed in 2002, which came into force in September 2005, commits both sides to liberalise bilateral trade and will help ensure that Algerian consumers and businesses benefit from the growth in trade and investment. It provides for the gradual removal of import duties on industrial products from the EU over a period of 12 years. The two parties have agreed to liberalise trade in various types of agricultural produce (no duties or quotas) and to apply tariff reductions to a list of sensitive products. The agreement will help enhance Algerian economic liberalisation and give an incentive to modernising legislation on competition and the protection of intellectual property. In the political and social fields, it aims to promote dialogue and co-operation in a number of areas: security and justice, home affairs, civil society, education and culture. European Union assistance has essentially focused on private sector and economic development, education and training, local development, institutional support and infrastructural projects. A stronger infrastructure through wide-ranging support programmes Emphasis is also being placed on the social sector and civil society through a socio-economic development project in North- East Algeria, assistance to the Algerian development associations, rehabilitation projects in zones affected by terrorism in six wilayas of North-West Algeria, support for higher education through the European Union s Tempus programme, and grants made to Algerian NGOs in the context of the European Initiative for Democracy and Human Rights (EIDHR). Some 230 million have been committed under MEDA since the year Four new programmes have been introduced which are: support for telecoms and postal services reform ( 17 million), support for journalists and the Algerian media ( 5 million), modernisation of the police force ( 8 million), and reform of professional training ( 60 million). The programme for the period covered work in four main areas: support for economic reforms and strengthening market economy institutions, infrastructural developments, developing human resources, and activities in support of the rule of law and good governance. Specific projects implemented recently include the restoration of the Beni Abbes palm grove and infrastructure developments in the commune of Bordj Etahr. The Partners strategy emphasises the social priorities: strengthening Algerian institutions, together with economic reforms; promoting the rule of law (police, NGOs, etc.); developing human resources and education, and enhancing water supply systems. A further 106 million have been set aside under the Euro- Mediterranean Partnership for the period Algeria has benefited from a total committed funding of 397 million from the MEDA programme since Almost all sectors of the economy have accordingly been the object of EU technical assistance designed to help the government in its reform programme: specialist teams are working both with the Ministries responsible for Post and Telecommunications, for Finance, Agriculture and Rural Development, for Industry and Transport, SMEs, Professional Training and Water Resources. EU assistance is also being provided to the judicial system, the police and the prison authorities. Algeria: 8 > The Bilateral Dimension

11 1 1 1 Giving Oran s youngsters a sense of purpose Lack of opportunity and social disaffection pose a major problem among the young people of Oran s old town centre. The European Union s MEDA programme has earmarked 5 million for a four-year programme to support NGO initiatives to mobilise and motivate these youngsters. One of the associations, Santé Sidi El Houari, has successfully devised and completed a three-pronged programme: a vocational instruction centre specialising in traditional building skills, which has already trained 35 young people; a cultural facility providing instruction in Arabo-Andalusian and other traditional music styles (24 alumni to date); and an information centre offering interactive classes on sensitisation to AIDS awareness and drugs prevention. Youngsters trained at this centre have since toured schools in the area and passed the message on to an audience of of their contemporaries. Europe helps Algeria s SMEs The support scheme to Algerian SMEs, launched in 2002, is helping nearly 400 of the country s small and medium-size enterprises. More than half of them are now engaged in evaluation or auditing exercises, and the remainder are benefiting from modernisation, training or consultancy programmes. With a budget of million, 57 million of which have been funded by the European Commission, the scheme aims to enhance the competitiveness of private or privatised SMEs by strengthening their operational management and improving the entrepreneurial environment. In view of the serious lack of specific investment financing instruments for SMEs, the scheme has also undertaken to facilitate access to funding for 300 of these companies, in particular ones directly associated with the initiative. The scheme is targeting those companies which, due to their image or their leadership in their chosen sector, are role models for the others. The domino effect seems to be working, judging from the increasing number of Algerian SMEs that now want to be associated with the scheme. 9

12 The Barcelona process > The Bilateral Dimension Egypt Bringing Egypt even closer to the EU Strengthened relations between the EU and Egypt over the previous ten years resulted in the signature of the Association Agreement in 2001, paving the way for trade liberalisation and leading to a future free trade area between the two Partners. As of 2004, the trade in industrial and agricultural products between Egypt and the EU has seen significant liberalisation. The Association Agreement between the European Union and Egypt, which came into force in June 2004, replaced the 1977 cooperation agreement. The Agreement aims at the setting up of an EU-Egypt free trade area over a period of 12 years. In support of this, measures have been taken to ensure that procedures for importing Egyptian products into the EU are now more flexible. For example, agricultural products, sugar confectionery, tomato sauces, soups, waters, beer, cigars and cigarettes, chutney and coffee are all now importable duty-free into the European Union. This relationship is being further enhanced by the European Neighbourhood Policy (ENP). In March 2005, the European Commission issued a Country Report assessing bilateral relations between the Union and Egypt. The report describes the current situation in selected areas of particular interest for the EU-Egypt Partnership and provides guidance for the preparation of a joint ENP Action Plan. Consultations for the conclusion of a joint Action Plan, bringing Egypt and the EU even closer, have started in The ENP is a window of opportunity: it offers Egypt enhanced political co-operation, very advanced economic integration and access to most EU programmes. Supporting industrial modernisation, social and health sector reform, and education EU assistance to Egypt in support of economic reform, dialogue on political issues and poverty reduction in the framework of the Barcelona Process is over 1 billion. Current MEDA funding focuses on support to the preparation of the ENP and to the Association Agreement, promoting the process of economic transition (support to water sector reform, development of research and innovation, Tempus) and sustainable socio-economic development (support to social reforms, health sector reform and democratisation, Human Rights, civil society and good governance). An industrial modernisation programme with a budget of 250 million, trade enhancement programmes with a total budget of 66 million, and a 33 million programme reforming technical and vocational training are among the largest ongoing programmes. Independent analyses of the effectiveness of European Union MEDA assistance to Egypt since 1995 conclude that the main impact has been to help maintain economic, social and political stability. The recent entry into force of the Association Agreement will contribute significantly to the opening up of the Egyptian economy. Egypt: 10 > The Bilateral Dimension

13 Building a community in the Egyptian desert Before the project started I was producing two to three tonnes of tangerines, says Nagah Hassen, a 35 year old farmer who lives in the Bustan project area of the Noubaria region. Now, thanks to the fixed sprinkler irrigation system, I am producing 15 tonnes. Nagah, who comes from the Delta region, was given 5 feddan (2.1 hectares) of land as part of a desert land reclamation programme: the Bustan Agricultural Development scheme, which covers 30,000 feddan (12,600 hectares) of cultivable area, 14 villages and 6,000 beneficiaries plus their families. Mona, the wife of a university graduate from Mansoura, is increasing her family s income by rearing rabbits: the Bustan administration provided her with a cage and four rabbits, one male and three females, plus 100 kilos of fodder. I now have 30 rabbits she says, and I sell them for 12 Egyptian pounds ( 1.5) per kilo. One of the purposes of the project was to integrate women into the development process. We have created 16 NGOs at the village level says Ehsam Ibrahim, chief of the Rural Family Development Unit. Nearly 500 women are involved in activities that range from children s nurseries, literacy classes and health campaigns to training people in how to raise chickens, rabbits, goats, how to bury rubbish rather than burn it, how to process and preserve food, how to keep water safe. Another innovation is the democratically elected board of a water users association. The EU-funded Bustan Agricultural Development project was handed over to the Egyptian government on December 31, The lessons learned during the seven years of implementation are included in a manual of the methodologies used. We hope it will be taken into consideration for other projects of this kind concludes Manuel Ancillotti, project team leader. Basic products for industrial growth Egypt s construction industries, benefiting from recent economic growth, are fuelling domestic demand for iron and steel products. This, allied with developments in the heavy industry sector, has prompted the decision to enhance domestic steelmaking capacity. In support of this major initiative, the European Investment Bank is contributing to the financing of a flat steel facility, including a new hot rolling mill extension, at the El-Dikheila plant of the Alexandria National Iron & Steel Company (ANSDK). The facility will enable the plant, which previously only produced bar and wire rod, to expand into flat products at higher output rates and meet the growing domestic demand. Reproductive health and family planning in Upper Egypt The Qena and Sohag governorates in Upper Egypt record the highest fertility and illiteracy rates in the country, as well as early marriages and high infant death rates. To improve the quality and use of reproductive health and family planning services, an EU-funded project was launched in March 1997 which targeted 11 districts and covered a population of 3.5 million. The programme upgraded health and advisory services in ways that ranged from enlisting qualified female doctors to empowering women through the distribution of micro-credits. Midwives were trained to make women conscious of the importance of medical control during pregnancy: I have to admit that they helped us a lot in changing the mentality of both men and women, says Dr. Irene Leverenz, the project director: As many of them came from the same community, they had no difficulty in getting attention. This project has reduced the fertility rate from 4.7 to 4.2, increased the use of contraceptives from 47% to 59%, upgraded and equipped some 135 reproductive health units, employed 414 doctors, and trained 600 nurses and 335 midwives, as well as religious and community leaders. 11

14 The Barcelona process > The Bilateral Dimension Gaza Strip and West Bank Supporting the creation of a viable Palestinian state The Palestinian territories have come a long way since the start of the Barcelona Process. The substantial assistance from the EU has been a major factor in the significant political, economic and judicial reform which has taken place. The EU is committed to continue improving the humanitarian and economic situation of the Palestinians, whilst it aims, at the same time, at working towards the implementation of the roadmap with the aim of establishing a democratic and viable Palestinian state living in peace and security with Israel. The EU relationship with the Palestinian territories is characterised by both humanitarian and emergency assistance, and long-term support for democratic transition and the peace process. In the framework of the Barcelona Process, the EU has maintained and supported its Palestinian Partner from the start, which has helped to ensure that there is a politically and economically viable partner now. The Interim Association Agreement on Trade and Co-operation between the EU and the PLO (for the benefit of the Palestinian Authority), which integrated the Palestinians into the Barcelona Process, came into force in July The key areas it addresses are social and economic development. The recently adopted EU-Palestinian Authority Action Plan will continue to encourage and support both the Palestinian Authority s national reform objectives and its further integration into European economic and social structures. It will also help provide more targeted financial support for the areas identified as joint priorities in the Neighbourhood Action Plan (NAP), such as efforts for the resolution of the Middle East conflict; political dialogue; the strengthening of the rule of law, of the respect for Human Rights and of institutions; and the development of trade relations. The main instruments to achieve these objectives are the Interim Association Agreement on Trade and Co-operation and the Commission's financial assistance programme. Emergency assistance and long term support The EU is the single biggest donor to the Palestinians: European assistance, which dates back to 1971, has totalled 1.5 billion since the start of the Oslo process in The EU s assistance in the years , which was predominantly fire-fighting, proved essential both in maintaining a minimum functioning of public services and in sustaining the Palestinian economy. More recent EU-funded projects in the Gaza Strip and West Bank have been supporting the implementation of longer-term objectives (support to Palestinian institution-building and the democratic and economic reform processes) in addition to emergency aid (e.g. to refugees, health and higher education services). The EU has extensively promoted the process of democratic transition and elections in the Palestinian territories, with support to the electoral process totalling 14 million in technical assistance since This is to be continued in the run-up to legislative elections. In January 2004 the EU deployed its largest-ever election observation mission, led by the former French Prime Minister and MEP Michel Rocard, to monitor the Palestinian Authority presidential elections. The European Union (excluding bilateral Member State assistance) expects to make up to 280 million available in 2005 for emergency and humanitarian aid and institution-building support. This includes a 60 million package to help revive the Palestinian economy and infrastructure, create institutions capable of assuming the new governance responsibilities that arise following the disengagement from the Gaza Strip, and provide social services support. Palestine: 12 > The Bilateral Dimension

15 Establishment of the Palestinian Authority Central Elections Commission The necessity of a well-established Central Elections Commission (CEC) was proved after the unexpected death of President Arafat. As a result of this electoral process, the Palestinian people will benefit from a democratically elected and internationally recognised leadership, which will enable them to start to face the difficult challenges that lie ahead (Mr. Michel Rocard, MEP, head of the Election Observation Mission for the presidential elections deployed by the European Union). The European Commission was instrumental in establishing the Palestinian CEC and provided assistance to develop a strong working body in terms of financial management, administrative procedures, operations, logistics and procurement. This was followed by support to a number of core activities such as voters registry, and prepolling and polling activities for national elections (both legislative and presidential). Today CEC operations continue in preparation for the elections to the Palestinian Legislative Council. The Building Business Bridges programme The objective of this programme is to prepare Jewish and Arab Israelis and Palestinian students to work together in a multi-cultural environment and enhance their vision of the possibilities of developing co-operative ventures. The Building Business Bridges (BBB) programme consists of several components: the academic component, a fully accredited MBA programme taught by the Graduate School of Business of Haifa University; the Middle East enrichment curriculum covering a wide range of political, social and economic Middle East and Israeli-Palestinian issues; local, regional and international study missions; and a final project which provides participants with the oppor-tunity to work with local and inter-national companies in assessing the feasibility of new business activities in the region. BBB s objectives extend beyond the actual participants themselves to the communities and businesses that they can influence in the future. The programme trains future business leaders and encourages them to create a climate of Arab-Jewish economic co-operation. One of the participants is Ali Hijawi, a Palestinian manager with a pharmaceutical company who has been travelling to the Israeli University of Haifa for two days every week to follow the BBB programme. The study programme has allowed me to get to know both Palestinians and Israeli Arabs personally says Ali. After two years in the programme not only do I have business connections, I also have friends. By May 2005, over 150 young leaders had graduated from the BBB programme, creating a strong network of Palestinian and Israeli business leaders. 13

16 The Barcelona process > The Bilateral Dimension Jordan The Barcelona Process aims at building an area of shared prosperity across the Mediterranean Sea, gradually establishing a free trade area between the EU and 12 Mediterranean partners, and creating a unique partnership in the areas of security and political, economic, and cultural cooperation. The Jordan Times, 10 March 2004 Towards a successful and privileged partnership In the framework of the Barcelona Process, the EU-Jordan relationship is dynamic and characterised by constructive cooperation. Jordan is a strongly committed Partner that has seen significant economic progress and has made good use of EU assistance. The Association Agreement (in force since 2002) provides the required institutional structure and strong foundation for Jordan to take full advantage of the privileged Partner status offered by the European Neighbourhood Policy. A strong commitment to co-operation with the European Union European Union assistance to Jordan has contributed to the country s rapid progress towards becoming a functioning market economy, led by an active private sector and a reduced involvement of the state in economic activities. It has seen real progress in the development of the free trade area for industrial goods set out in the Association Agreement, more recently extended to agricultural products. Jordan is a country strongly committed to the reinforcement of cooperation with the European Union and is by far the best performer in the application of MEDA funding, with 68% of commitments disbursed. The success of such assistance programmes is a reflection of the country's advanced position in implementing the Association Agreement, and its absorption capacity and commitment to the Barcelona Process of trade liberalisation and related economic reform. This provides encouragement to the EU in its attempt to align policy objectives and financial assistance. Paving the way to a promising future The Neighbourhood Action Plan is the first in the region to include among its priorities dialogue on political development (democracy, development of an independent and impartial judiciary, freedom of expression and media, equal treatment of women, and civil society development). As a result, the political aspects of the Partnership may receive more attention in the next phase of EU-Jordan relations. The other main priorities relate to the development of trade and investment to support economic growth and job creation; to the upgrading of the transportation, energy and IT sectors; to addressing migratory trends and freedom of movement; and to promoting the Jordanian Sustainable Development Strategy and poverty reduction. The European Union s MEDA programme in Jordan has focused on projects that seek to contribute to economic transition. Priorities have included budgetary aid, investments in infrastructure and the water sector, cultural co-operation, trade enhancement, institution-building, and economic and social reforms. Projects relating to the alleviation of poverty through decentralised local government measures, and the promotion of good governance and Human Rights are also addressed in the MEDA II programme. The EU has allocated over 650 million in MEDA financial assistance to Jordan since Jordan: 14 > The Bilateral Dimension

17 1 2 Through the economic and financial partnership embedded in the Association Agreement, the EU emerges as a key player in assisting Jordan's efforts to face the challenges posed by economic reforms and liberalization. The major guiding principles and objectives for Jordan's bilateral co-operation with the EU will continue to include: (a) assisting Jordan in facing social, economic and institutional challenges, as well as supporting Jordan's transformation and modernization process; and (b) consolidating and enhancing the Euro-Mediterranean Partnership defined by the Barcelona Declaration of 1995 and further developed by the Euro-Mediterranean Ministerial Meetings. Ministry of Planning and International Co-operation, Hashemite Kingdom of Jordan 1 Poverty reduction through local development Signed in November 2004 in Brussels, in the presence of King Abdullah and European Commission President Jose-Manuel Barroso, the Poverty Reduction through Local Development Programme enjoyed a high-profile launch. The programme addresses both poverty reduction, and local administrative development and decentralisation. Or addresses poverty reduction as well as local administrative. For the first time in Jordan the municipalities are to be the main beneficiaries of the 30 million budget. They will design, finance and implement comprehensive local development strategies and plans aimed at tackling the social needs of citizens, particularly the most deprived. While the selected municipalities will be benefiting from intensive support, a broad country-wide capacity-building programme aiming at overall improvement of municipal management, budgeting, revenue generation and service delivery capacity will also be launched. 2 Sharaka Programme for the Promotion of Human Rights and Democratisation Through its support to NGOs and community-based organisations, the European Union has become a major player in the area of Human Rights and Democratisation in Jordan. The EU's Sharaka programme, implemented in co-ordination with the Ministry of Planning, is the first of its kind, providing comprehensive financial and technical support to Human Rights NGOs throughout the Kingdom. The programme includes a grant, a training, and a promotion component. Seven projects were selected in 2003 and six more in Through this 2 million programme, projects ranging from legal counselling for vulnerable groups, advocacy and compliance of domestic laws with international standards, Human Rights education in schools, and economic, social and political rights of women are being implemented throughout Jordan by local NGOs. EJADA Industrial modernisation programme This programme aims at supporting private sector development in Jordan through direct services to SMEs and SME support institutions, financial support schemes to SMEs, vocational training and human resources development, institutional strengthening and policy support. As a result, 250 SMEs have benefited from upgraded technical assistance, business incubators have been created and marketing groups have been formed, leading to an increase in exports. An important outcome of EJADA support is the design, establishment and mentoring of a national programme, JUMP (Jordan Upgrading and Modernisation Programme), which can follow up EJADA s activities, building on its achievements. 15

18 The Barcelona process > The Bilateral Dimension Lebanon Reinforcing the state of law The Barcelona Process built on and enhanced the 1977 Co-operation Agreement between Lebanon and the then European Community, with the EU-Lebanon Association Agreement. The entry into force of the 2002 Agreement is imminent. Since becoming part of the Euro-Mediterranean Partnership, Lebanon has pursued a policy of political reform and economic liberalisation. The MEDA programme has contributed to these developments. Building on the existing Association Agreement, the Lebanese Government has welcomed the European Neighbourhood Policy, and a Neighbourhood Action Plan (NAP) is now being negotiated. This will provide for joint commitments in two essential areas: actions that reinforce adherence to shared values in areas such as democracy and the rule of law, administration of justice and Human Rights, certain aspects of foreign and security policy; and initiatives that bring the EU and Lebanon closer together in a number of priority fields. The last of these include economic and social development policy, and trade and internal market policy, including sectors such as energy, transport, environment, maritime affairs and fisheries, information society, research and innovation, justice and home affairs, and people-to-people contacts. The ENP Action Plan will be a way of implementing the much needed political and economic reform agenda now being defined by the current Lebanese government. Boosting the private sector and stimulating good governance The European Union the European Community, the Member States and the European Investment Bank is Lebanon s leading donor. Early projects and programmes funded through MEDA have focused mainly on economic transition and reform, the rehabilitation of public institutions, industrial modernisation and balanced social development. More recently, the focus is on boosting the private sector and stimulating good governance in parallel with programmes aiming at reinforcing the state of law. The National Indicative Programme for foresees a total funding of 50 million focusing on four main priorities: support for European Neighbourhood initiatives and promotion of the implementation of the Association Agreement; support for the knowledge economy (vocational training, Tempus, scientific cooperation); strengthening the competitiveness of the private sector; and water reform and developing environmental protection. The country has benefited from a total committed funding of 256 million from the MEDA programme since Grants under this programme are complemented by the financing of risk capital and interest subsidies related to loans provided by the European Investment Bank. Since 1978 a total amount of 479 million in EIB loans has been committed for Lebanon. The European Commission s Humanitarian Office (ECHO) has also been providing support to the Palestinian refugees in Lebanon through Lebanese and European NGOs. Lebanon: 16 > The Bilateral Dimension

19 1 1 Making things gives meaning to life Ibtissam, turning 40, has the smile of a young girl. Until a few months ago, as a single woman from a village in southern Lebanon, she had no reason to look forward to any other future than life with her family. Now, wearing the work clothes required by the health regulations a white blouse, gloves and a head cap she carefully removes the white skin of an orange that will provide natural pectine for an equally natural orange marmalade. The conversation in the Rashaya co-operative revolves around the next sale of their products in Beirut central market, a place she hardly knows. Making things she says, gives meaning to life, it makes you feel useful, that you can learn something new and better yourself. The work gives Ibtissam and her colleagues an additional income of a month, a significant sum in a relatively poor region. It is one of the benefits of a comprehensive scheme to train 500 women from rural areas in agrifood processing techniques and 100 farmers in the cultivation of medicinal herbs. The project comprises two co-operatives, one at Rashaya specialising in the production of fruit juices, sauces and jams, and the other at Ebl el-saki growing medicinal plants (sage, lavender and oregano) for use in essential-oil soaps. The project, launched in 2001, has three objectives: to give women an opportunity to improve their living standards by popularising apprenticeships in the various stages of co-operative life, to help farmers increase their incomes with specific crops, and to enhance hygiene standards in domestic food production. AFKAR: putting ideas into action AFKAR means idea in Arabic. It is indeed a way to put ideas into action. It is the first MEDA programme aimed at strengthening Lebanese civil society by stimulating local NGOs and giving them equal opportunities. Three fields of intervention were established in the call for proposals: promotion of good citizenship, intercommunity dialogue, and providing legal support for vulnerable groups. Projects are financed to a maximum of This was a first experience, so success was not guaranteed: who was brave enough to fill in the EU forms!!, said one Lebanese NGO. Plus, being a MEDA project, the beneficiary has to be a ministry and an NGO-administration partnership has created some difficulties. But the result was a positive surprise: 83 projects were presented but only 16 selected for financing, due to the limited budget. They cover all domains and are highly diversified: an awareness campaign about Human Rights and democracy toward youth, training social trainers for promotion of dialogue, increasing the capacity of journalists and reporters in the election process, juvenile justice, etc. My only disappointment is that I could not anticipate such a quality of requests, said the Head of Delegation during the presentation ceremony. Solid waste management: good governance by local authorities 10 projects with a balanced geographical distribution will be financed for a total of almost 5 million under this programme managed by the Ministry of Administrative Reform. Municipalities and clusters of municipalities will now be able to implement projects related to solid waste management (households, hospitals, slaughterhouses, markets, agricultural and industrial waste) at various or all levels: collection, sorting and transfer, recycling, mechanical treatment, etc. This programme represents a double challenge of good governance for local authorities. First, it obliges municipalities to have a regional vision of development, by encouraging them to gather in clusters in order to be able to present a project. Secondly, by administering the programme through an official call for expressions of interest, the approach guarantees transparency and ensures equal opportunity. Another call for expressions of interest has been launched with the remaining 5 million in order to finance additional projects. 17

20 The Barcelona process > The Bilateral Dimension Morocco A multifaceted dialogue Morocco has seen the implementation of a wide range of economic, socio-economic, institutional and legal reforms over recent years, changes to which the European Union has contributed, and it is the leading beneficiary of EU financial assistance. Moreover, the EU is Morocco s main trading partner, and has recently concluded the European Neighbourhood Action Plan with Morocco, thus enhancing these relations. The EU-Morocco Association Agreement was signed in Brussels on 26 February 1996 and, following its ratification by the Parliaments of the 15 EU Member States, the European Parliament and the Moroccan Parliament, entered into force on 1 March The European Union is Morocco s largest trading partner, representing 72% of its exports and 54% of its imports. The Association Agreement provides for the gradual liberalisation of trade over 12 years, by the end of which period a free trade area will have been established: it also includes a timetable to dismantle customs tariffs for industrial products coming into the country. There is to be progressive and reciprocal liberalisation of trade for agricultural products. Discussions on further mutual concessions began in 2002 and are still ongoing. The European Union has encouraged Morocco to enter into a free trade agreement with Tunisia, Egypt and Jordan: known as the Agadir Agreement, this lays the foundation for a fully fledged Euro-Mediterranean Free Trade Zone planned for The recently concluded Neighbourhood Action Plan highlights the following priorities: Human Rights reforms; the fight against terrorism; liberalisation of services; promotion of foreign direct investment; the fight against poverty; support for education, training, scientific research and IT; measures relating to migratory trends; and upgrading of the transportation and energy sectors. Morocco is the leading beneficiary of EU financial assistance granted in the framework of the MEDA Programme the major instrument accompanying Morocco s reform process. EU assistance strategy has focused on sectoral interventions: support to economic reforms, business upgrading, infrastructure projects, and support for the implementation of the Association Agreement. Another area has been support for the environment, largely through EIB interest rate subsidies. Health, human resources and rural development to the fore The main outcome of the MEDA programme in Morocco has been the implementation of a wide range of reforms, economic, socioeconomic, institutional and legal. Projects approved in included financial sector adjustment ( 52 million), health sector reform ( 50 million), justice reform ( 28 million), rural development in Khenifra province ( 9 million), solid waste management in Essaouira ( 2 million), and water sector adjustment ( 120 million). A major infrastructural project is the construction of the Rocade highway linking the northern provinces of Tangier, Tetouan, Chefchaouen, Al Hoceima, Nador and Berkane. Since then, MEDA has invested a further 426 million in five priority areas: institutional support and reform of the public administration ( 81 million); a trade facilitation programme with projects to support the restructuring of private enterprises, the liberalisation of the transport sector, and the implementation of the Association Agreement ( 132 million); human resource development with the focus on vocational training and higher education ( 58 million); and projects in the area of migration with programmes to improve the socio-economic development of the poorer regions of the country, to channel legal immigration, and to contribute to a more effective control of illegal immigration ( 115 million). 40 million has also been allocated for programmes to protect the environment (including interest rate subsidies on loans from the European Investment Bank) and to protect argan trees (Argania spinosa, a species native to Morocco) so as to provide job opportunities for rural women. A further 275 million have been set aside under the Euro- Mediterranean Partnership for the period Overall Morocco, with a total committed funding of 1.3 billion from the MEDA programme since 1995, has been the principal beneficiary in the Euro-Mediterranean region > The Bilateral Dimension

21 Practical support for Morocco s small and medium-size enterprises This long-term programme running from January 1997 to June 2004 featured 470 support schemes involving 363 Moroccan SMEs. The type of assistance reflected the needs of individual companies: drafting of strategic analyses or development of business plans in 278 of the cases; 165 general consulting assignments involving 220 SMEs in total; and 66 cases of support for applications for quality certification (ISO or HACCP). The programme also included 23 cases of institutional support to professional associations. An impact study conducted end-2004 concluded that during 2003, thanks to this EU initiative, the growth rate in turnover had been in excess of 6 per cent in more than half the SMEs surveyed. This compares with an average of 4.8 per cent growth recorded during the same period by the top 500 Moroccan companies. Enhanced health facilities for eastern province The European Union is co-funding a programme initiated by the Moroccan Ministry of Health to upgrade healthcare facilities in the outlying eastern province of the country close to the frontier with Algeria a region that is particularly under-resourced with such services. The project provides for the renovation of five provincial hospitals and 10 new health centres, and for the training of co-ordination and administrative personnel. A better education for Morocco s youth The EU is contributing to a major overhaul of the Moroccan education system, including strategic planning, teaching policy and the popularisation of education with the public. The planning aspect provides for simulation studies and research into the schooling methods appropriate to poor urban areas. As regards teaching policy, the programme includes the evaluation of specific curricula and results, an action plan to reduce the dropout rate in eight disprivileged rural provinces, and teacher training. The success of education promotion programmes aimed at 6-15 year olds has permitted the re-equipment and reactivation of 287 schools in the poorer rural areas. From mountain to desert: support for Moroccan subsistence farming Working in tandem with Morocco s Ministry of Agriculture and Rural Development, the European Union has helped finance improvements for subsistence farmers living in remote or disfavoured areas of the country the Atlas mountains, the fringes of the Sahara and elsewhere. The scheme provides assistance in two ways: by enabling farmers to purchase small items of equipment, tools, etc. at subsidised prices; and by partial reimbursement of improvements undertaken. More than farmers have benefited from the scheme: 70% of them are working on holdings of 10 hectares or less, and 83% have never before had access to credit. The aim of the scheme, in addition to improving the living standards of the local community, is to increase the supply of vegetables and fruit to the Moroccan domestic market. 19

22 The Barcelona process > The Bilateral Dimension Syria A more far-reaching Association Agreement After a slow start, EU relations with Syria are moving forward. Now with the Association Agreement expected to be signed, and the performance of the MEDA funding also improving, the benefits of Partnership should become clearer. Syria can and should become a more active Partner and take up the opportunities within the European Neighbourhood Policy. Negotiations for an Association Agreement the second main pillar of the EU-Mediterranean Partnership, replacing the co-operation agreement signed in 1977 started in 1998, but little progress was made in the first four years. The EU offer was along the same line as the Association Agreements already concluded, in chronological order, with Tunisia, Israel, Morocco, the PLO on behalf of the Palestinian Authority, Jordan, Egypt, Lebanon and Algeria. While Association Agreements with all other Mediterranean Partners have been signed or entered into force, negotiations with Damascus were only finalised with the initialling of the Agreement in October The Agreement with Syria has since been submitted to the political authorities on both sides for final approval and signature. The difficulties of this long negotiation derived from various factors of a political and economic nature which required substantial work by the parties. The agreed text is similar in pattern to other Euro-Mediterranean agreements, but the long time for its negotiation allowed it to benefit from the experience of the Association Agreements signed with the other Mediterranean Partners. Hence, more far-reaching and substantial provisions in a number of areas, such as the fight against terrorism and weapons proliferation, tariff dismantlement on agricultural products, technical barriers to trade, trade in services, government procurement, intellectual property rights and trade dispute settlement mechanisms are included in the Agreement with Syria. EU-Syrian co-operation has helped establish a relationship of trust and confidence in many of the areas concerned and it may be expected that, if this trend continues, the pace and quality of project implementation will improve overall. Even before its signature, co-operation has concentrated on the main subjects covered by the Association Agreement. Once the Agreement has been signed, co-operation in all sectors will be more focused on its implementation, while the EU objective is to eventually agree and implement with Syria an Action Plan in the framework of the European Neighbourhood Policy. Institutional capacity building and trade enhancement While Syria participated in the Barcelona Process from the start, the framework convention necessary for the implementation of co-operation under the MEDA programme was only signed in 2000 and project work commenced the following year. The European Union, which is Syria s main development aid donor, has so far allocated over 259 million in the framework of the MEDA programme, with the European Investment Bank contributing a further 580 million in loans. The first MEDA programme focused on promoting institutional reform, business development and infrastructure projects, and MEDA II added health and education to these priorities. The 80 million National Indicative Programme for includes 18 million which are conditional on the signature of the Association Agreement. This programme covers the same priority sectors as before, with the addition of a major trade enhancement programme in support of the Association Agreement. It breaks new ground in Syria by establishing a programme of support to civil society development. The EU is also committed to helping Syria address environmental issues. It has, for example, provided over to a LIFE LOCUS project aimed at promoting sustainable development and environmental protection in local rural communities affected by poverty, pollution and inadequate resources. This is flanked by a far-reaching 18 million Municipal Administration Programme, which will also put environment in urban communities on the top of the agenda of local councils. An additional 8 million has also been given to fund a project to provide clean water and sanitation to an area near Damascus which includes two Palestinian refugee camps. Syria: 20 > The Bilateral Dimension

23 Project for vulnerable kids co-funded by the EU A social centre for children with special needs is being co-funded by the EU as part of a project to provide technical assistance to Syrian associations dealing with vulnerable children and adolescents, including those with special needs. The objective of the project is extending social services to children and adolescents with and without disabilities in the poorer areas of Damascus and Aleppo. The project includes improvements to the Zahret Al Mada in Social Centre, raising awareness of disability prevention and gender issues, promoting the involvement of specialist staff doctors, nurses and physiotherapists and establishing a network of institutions and associations dealing with disability. Helping Syria s small and medium-size enterprises The Syrian-European Business Centre (SEBC) is an EU-funded programme fostering development of the Syrian economy by enhancing the international competitiveness of the private sector and the effectiveness of its business support institutions ( Established in 1996, the Centre has already achieved impressive results: support to over companies and training for some managers. In addition, one single Syrian participation to an international trade fair organised by the SEBC procured 25 million in direct orders for Syrian companies. By 2006 the Centre will have provided technical assistance, training and capacity-building services to Syria s SMEs from some 27 million in EU funding. From 2007 onwards, the centre will continue its activities as a national institution with Syrian ownership. The EU will continue providing assistance to Syrian small businesses through an innovative 15 million SME support programme, where SEBC will play the co-ordinating role. 21

24 The Barcelona process > The Bilateral Dimension Tunisia The first Euro-Mediterranean agreement to come into force Tunisia was the first of the Euro-Mediterranean Partners to put its Association Agreement into effect. It is the most advanced of the EuroMed Partners in terms of the introduction of a free trade area with the European Union, which is its main trading partner. Progress on the democratisation process and reinforcement of the rule of law is now a main challenge for Tunisia, which is one of the main beneficiaries of EU financial co-operation (the MEDA Programme). The recently concluded European Neighbourhood Action Plan advances on these developments. The Euro-Mediterranean Association Agreement with Tunisia, signed in 1995 and in effect since 1998, aims to develop a free trade area between the European Union and Tunisia by As the first Euro-Mediterranean agreement to come into force, it has been a model for the Association Agreements with the other Mediterranean Partners. In terms of the introduction of the free trade area, Tunisia is the most advanced of the EuroMed Partners. The country started dismantling tariffs in 1996, even before the entry into force of the Association Agreement. Moreover, it has concluded free trade agreements with Egypt, Jordan, and Morocco (the Agadir Agreement) and with Turkey. Today 80% of Tunisian exports go to the EU, with the Union providing 71% of Tunisia s imports. The recently concluded Neighbourhood Action Plan highlights the following priorities: reforms guaranteeing democracy, the state of law and Human Rights; the fight against terrorism; promotion of foreign direct investment, competition and entrepreneurialism; support for scientific research, advanced education and the information society; co-operation on employment and social policies; liberalisation of services; convergence of technical regulations and norms; upgrading of the transportation and energy sectors; and measures relating to migratory trends and freedom of movement. From institution building to SME development Tunisia is one of the main beneficiaries of EU financial co-operation in the Euro-Mediterranean Partnership (MEDA Programme), coming after Morocco and Egypt. Programmes under MEDA concentrate on many areas including: strengthening of governance and the rule of law; budgetary aid accompanying structural and sectoral economic reforms such as structural adjustment facilities, modernisation of ports and reform of the healthcare system; improved competitiveness of the economic system by means of a programme supporting the reform of the public administration ( 20 million); an industrial modernisation scheme ( 50 million); support for small and medium-size enterprises ( 20 million); improving job prospects for young people by both modernising higher education and vocational training and promoting access to the EU s Tempus programme. Other projects are ongoing in sectors like rural development, environment protection, cultural dialogue, training for Tunisian journalists ( 2 million), and local development and civil society actions, including direct grants to NGOs ( 7 million). The overall budgets for EU programmes in favour of Tunisia in the framework of the mainstream MEDA programme are 248 million for the period and 144 million for The country has benefited from a total committed funding of 757 million from the MEDA programme since Additional EU funds are allocated to Tunisia by means of regional programmes and thematic actions (Human Rights, NGO, etc.). Tunisia: 22 > The Bilateral Dimension

25 Supporting reform of the basic education system in Tunisia The Tunisian government has been engaged for the last 15 years in a vast reform of the country s basic education system. The European Union has supported this process with a budget of 40 million in order to enhance Tunisia s human resources potential across the board: efforts are concentrated on the less favoured regions of the country and on the most vulnerable sectors of the population, the aim being to prepare citizens for the impact of social, political and economic change. The programme has produced significant results. In terms of numbers, the strategy has fully achieved its objectives in the case of children up to six years, since over 99% of them now attend school regularly. Similarly, the school attendance rate of children between six and 12 years has increased from 85% for the school year to 97% for , with the same rate for girls as boys. In the qualitative sense, a new approach based on essential competence levels has been tested and progressively introduced since Embodying a rigorous training approach based on continuous evaluation of knowledge levels, individual analysis of student errors and personalised corrective action, this methodology results in a better grounding in fundamental learning, enhanced quality of know-how and a reduction in school dropouts. The programme involves some 2 million children enrolled in the two basic education cycles, of whom have learning problems. The educational establishment comprises some officials, of whom are teachers and educational support staff. ETE: gearing up Tunisian industry for the future More than 500 companies, 10% of Tunisia s industrial establishment, benefited from the Euro-Tunisia- Enterprise (ETE) scheme which came to an end in This managerial and technical assistance scheme, funded by the EU to the tune of 20 million, provided companies with help in the form of modernisation plans and quality standards, industrial partnerships, training sessions and pilot programmes. ETE experts, Tunisian and European, prepared detailed upgrading strategies for 300 of these companies. Assistance was also provided to public bodies and Chambers of Commerce on enhancing their services to Tunisian industry. A subsequent survey of ETE programme beneficiaries showed they had significantly outperformed their competitors in terms of value-added, managerial standards and exports. Encouraged by the success of this scheme, the EU is now financing a 50 million Industrial Modernisation Programme which will continue the work of ETE but also provide assistance in the fields of international standards, metrology and finances. 23

26 The Barcelona process > Other Euro-Mediterranean Partners Israel A good partnership that is moving forward In the framework of the Barcelona Process, the EU-Israel relationship has developed into a strong working partnership. The EU s Association Agreement with Israel, which has enabled the EU to support and encourage reform, now provides the basis for developing further the political, economic and social relationship through the ENP. Commitments have already been made (end- 2004) through the ENP Action Plan to effect these changes. The EU s Association Agreement with Israel, which entered into force on 1 June 2000, provides for political dialogue, free trade, economic co-operation, as well as co-operation in a wide range of activities that include transport, environment, energy, education, science and culture. The agreement stresses the importance of Human Rights and democratic principles, and provides for regional co-operation with neighbouring Partners as a way of promoting stability and peace in the Mediterranean area. While differences may remain over the Middle East conflict, the Association Agreement has ensured that the channels for dialogue between countries in the region are always open. On the trade front, industrially advanced Israel moved rapidly to dismantle its tariffs on EU goods, becoming the first Euro-Med Partner to enter into reciprocal free trade with the EU for industrial products. The Association Agreement includes provisions on freedom of establishment and liberalisation of services, free movement of capital, and competition rules. Discussions on a services accord and on further liberalisation of agricultural trade are anticipated to start by the end of 2005, or early From Association Agreement to Action Plan The European Neighbourhood Action Plan concluded with Israel in December 2004 translates the opportunities for strengthening co-operation set out in the Association Agreement into concrete activities and undertakings, both for the EU and Israel. The Plan places emphasis on the resolution of the Middle East conflict, on the fight against terrorism, and on the need to combat anti-semitism, racism and discrimination. It stresses the need to solve Human Rights and Common Foreign and Security Policy issues, as well as the importance of ensuring the non-proliferation of weapons of mass destruction, and encouraging the membership of international organisations. Other key points cover greater economic integration with the EU s internal market; reinforced co-operation both on migration issues and on the transportation, energy, and science and technology sectors; increased emphasis on environmental issues; and closer co-operation on peopleto-people contacts in education, culture, civil society and public health. The ENP strategy has led to progress in joint activities between Israel and the Palestinian Authority launched in 2005, in the form of financial and political support for Joint Israeli-Palestinian Energy and Joint Transport Offices to improve co-ordination in electricity and gas networks and usage, as well as in road and rail transport. A trilateral EU-Israeli-Palestinian trade working group has been set up to help facilitate trade matters between Gaza Strip/West Bank, Israel and the EU, as well as internally between the Gaza Strip/West Bank, and its neighbours. While not eligible for bilateral MEDA funding, Israel participates actively in a wide variety of MEDA regional projects including EUMEDIS, ANIMA, SMAP and the EuroMed Youth, Heritage and Audiovisual programmes. In addition, Israeli civil society has participated in several EU-funded joint programmes with Palestinian NGOs aimed at furthering tolerance and understanding between communities and, ultimately, peace between the two populations caught up in the Middle East conflict. Israel: 24 > Other Association Agreement in the Region

27 Scientific and technical co-operation between the EU and Israel Israel was the first non-european country to be associated with the EU s Framework Programme for Research and Technical Development (RTD). The Partnership, which began with the Fourth Framework programme in August 1996, is now extended into the Sixth Framework Programme ( ). This Sixth Programme is a key part of the EU's strategy to create a European Research Area, an Internal Market for science and knowledge in which Israel will play a full role. These Framework Programmes permit Israeli universities, research institutes and companies to participate in hundreds of research projects with their European counterparts. Support to Israel from the Euro-Med Partnership Israel is not eligible for bilateral funding under MEDA, but has been involved in a wide variety of Euro-Med regional programmes: young Israelis participate in youth exchange programmes with their European and Mediterranean counterparts under the Euro-Med Youth Action Programme; Israeli filmmakers have benefited from funding and training under the Euro-Med Audiovisual Programme; Israeli universities participate in the FEMISE forum of economic institutes while chambers of commerce and employers associations have participated in programmes like UNIMED and ArchiMedes; bodies like the Israel Antiquities Authority participate in Euromed Cultural Heritage. MEDA also supports cultural activities in Israel (e.g. the Cinema Europa and DanceEuropa festivals) and encourages cultural co-operation between Israel and the other Mediterranean Partners. Israeli organisation joins Galileo global satellite navigation project In September 2005 Israel s MATIMOP became a member of the Galileo Joint Undertaking (GJU). MATIMOP is a nonprofit organisation under the Ministry of Industry, Trade and Labour that promotes technological and R&D co-operation and technology transfer activities between Israeli and foreign industries. MATIMOP has committed to contribute 18 million to the GJU for activities in the development phase of the Galileo programme. Contracts with other Israeli entities will be developed shortly and will include infrastructure and applicationoriented activities. The GJU was set up in 2002 by the European Union (EU) and the European Space Agency (ESA) to manage the development phase of Galileo, the European global satellite navigation programme: this includes the selection of the future Galileo concessionaire, the integration of EGNOS and the management of Galileo-related activities within the Sixth Framework Programme. 25

28 The Barcelona process > Other Euro-Mediterranean Partners Turkey An active participant in Euro-Mediterranean regional projects Turkey has a unique status in the Euro-Mediterranean Partnership. Now a pre-accession country, Turkey benefits from a different set of relations and funding from that of its neighbours. Its prospects for future integration with the EU are also clearly different. Nevertheless Turkey is a Partner in the Barcelona Process, thus participating in and contributing to bilateral and regional activities within this framework. Turkey has had a long association with the project of European integration, from its first application to join the then European Economic Community (EEC) in July 1959 to the 1999 recognition of Turkey as a candidate on the same footing as other candidate countries. It follows that Turkey clearly has a different relation to its EU neighbours than the other Euro-Med Partners but, as for them, mutual trade between Turkey and the EU is a key factor in EU-Turkey relations. Since the Customs Union between Turkey and the EU was established in 1995, Turkey has become the Union s seventh biggest trading partner and the EU is Turkey s main trading partner. Turkey also entered into a free trade agreement with Morocco, Tunisia and the Palestinian Territories in Overall, the impact of EU assistance to Turkey is increasingly positive. The EU has provided significant resources in a number of important areas such as basic education, training, environmental infrastructure and economic adjustment. The Accession Partnership, adopted in 2001 and revised in 2003, provides the roadmap for determining priorities for progress before Turkey s accession. Turkey also has a National Plan for the Adoption of the Acquis (NPAA), revised in 2003, which outlines the government s own strategy for the harmonisation of its legislation with that of the EU (both the Accession Partnership and the NPAA are revised on a regular basis to take account of progress made and to allow for new priorities to be set). Following the opening of negotiations for membership, the European Commission is to produce a revised Accession Partnership document, which will identify priority areas in which Turkey needs to make progress, and will serve as the basis for financial programming in future years. Turkey has benefited from financial assistance and other forms of co-operation, designed to stimulate and support its reform process as part of the pre-accession strategy. Since 2001, Turkey is the beneficiary of primarily a dedicated pre-accession financial assistance instrument to help it meet the criteria for EU membership: this is focused on institution building, investment to strengthen the regulatory infrastructure needed to ensure compliance with the acquis, and investment in economic and social cohesion. Prior to this, Turkey was a beneficiary of the MEDA funds. MEDAfunded projects in recent years have included exchanges and cooperative ventures with other EuroMed Partner countries and EU Member States in the following fields: institutional development, police co-operation, migration, energy, transport, culture, and SME and business development. Around 1.15 billion of EU financing was allocated for projects committed between 1996 and 2004 inclusive. The budgetary allocation for 2005 is 300 million, and 500 million for The priorities for the 2005 financial programme include supporting the implementation of the Copenhagen political criteria, including some closely related subjects in the sector of justice, freedom and security, supporting economic and social cohesion by targeting the poorest regions in Turkey, promoting the implementation of the acquis related to the customs union, the internal market, agriculture, environment, and promoting political and social dialogue between the EU and Turkey. EU assistance is not the only source of financial support for helping Turkey to meet its Accession Partnership priorities. The country is also a major beneficiary of assistance from the European Investment Bank (EIB), with Turkey receiving EIB loans worth million from 1992 to Turkey: 26 > Other Partnership in the Region

29 27

30 Barcelona: The Regional Dimension In addition to the bilateral relations and the supporting financial assistance provided to the Mediterranean Partners, the Barcelona Process has an important regional dimension. One of the key Barcelona objectives is the promotion of regional and sub-regional integration. The ENP has also added cross-border co-operation to the regional dimension. These objectives are supported by the MEDA assistance programme, through the regional co-operation programmes, amounting to around 10% of the overall MEDA budget. The general aim of Regional co-operation is to promote closer integration between the 35 Partners. More specifically, regional co-operation is intended to be a catalyst to reinforce the effects of bi-lateral co-operation. It is also designed to intensify South- South co-operation (i.e. between Mediterranean Partners) and to tackle issues that have a cross-border dimension. MEDA regional programmes cover all three chapters of the Euro- Mediterranean Partnership. The Political and Security chapter of the Euro-Mediterranean Partnership contains two complementary elements, aimed at the creation of a region of peace and stability: political dialogue at bilateral and regional level, and partnershipbuilding measures (PBM). In the framework of this, the MEDA regional programme funds a variety of activities, from training of diplomats and supporting the creation of policy institute networks, to training and exchange programmes in the areas of justice, police and migration. In the economic and financial partnership, the regional-level objectives are to conduct a dialogue on the alignment of sectoral economic policies; to foster co-operation between non-government entities (such as chambers of commerce, economic institutes and trade promotion bodies); to carry out regional projects which complement the bilateral measures; and to support the setting up of the free-trade area, including support to the subregional free trade agreements. The aim of the social, cultural and human partnership is to bring people on both sides of the Mediterranean basin closer, to promote better mutual understanding and to improve their perception of each other. These goals have been directly addressed by a variety of regional activities, specifically those working on cultural heritage, audio-visual, youth, media, women, and the development of civil society areas. Notably, the recently established Anna Lindh Euro-Mediterranean Foundation for the Dialogue between Cultures has been set up to promote better understanding in the region. Justice, police and migration: debate and networking in the MEDA Region for the first time Judges and senior police officers from all the Mediterranean countries (including Israel and the Palestinian Territories) have sat for the first time at the same table to discuss and exchange experiences on highly sensitive issues, like terrorism, drug fighting and reform of justice. These high level fora are a pilot initiative laying the foundations for future operational networks in such controversial fields. Also for the first time another hot issue, migration, has been addressed in a global, deep and multifacetted way. The First Annual Report on Mediterranean Migration, published on 18 October 2005 ( paves the way for a better understanding of the migratory phenomenon and its economic, legal and political dimensions. 28 > The Regional Dimension

31 Political and Security Partnership: towards a peaceful and stable Mediterranean area Within the framework of the political and security partnership, there are MEDA regional activities in the areas of Partnership Building Measures, justice, police and migration. The Partnership Building Measures include the establishment of a network of Euro-Mediterranean Foreign Policy Institutes (Euro- MeSCo), a training programme for diplomats, and the creation of the Euro-Mediterranean Parliamentary Assembly. There is also a disaster management and civil protection project. The regional programme on Justice, Police and Migration aims at encouraging reform of and co-operation between judicial systems, combating organised crime and drugs and terrorism, as well as ensuring a joint approach to issues relating to migration. This programme includes a EuroMed Justice project, a Euro-Med Police co-operation project and a migration project. In general these projects involve establishing networks for exchange and cooperation, training activities and monitoring and analysis. In addition, there are a number of Middle East Peace Projects which aim to support the Middle East peace process and increase regional co-operation between Israelis and Palestinians/Arabs in a number of fields. Economic and Financial Partnership: economic transition and private-sector development The Economic and Financial Chapter of the Barcelona Declaration aims both at accelerating sustainable socio-economic development, and at improving living conditions and employment rates in the Mediterranean region. It additionally seeks regional integration and co-operation. To achieve these long-term objectives, the economic and financial partnership is focused on the progressive establishment of a free trade area, economic co-operation and concerted actions, and financial assistance to the Partners. In supporting the establishment of a free trade area the Partners must tackle the two interrelated problems of facilitating trade (South-South as much as North-South) and of deepening regulatory convergence (e.g. norms and standards, intellectual and industrial property protection, competition policy). The Euro- Mediterranean Forum of Economic Institutes network (FEMISE) that comprises about 30 European and Mediterranean economic research institutes is established to better assess the social and economic impact of the Euro-Mediterranean Association Agreements and the institutional and economic progress made by the Mediterranean Partners towards these goals. 29

32 The Industrial Co-operation strategy provides support in a number of areas: The EuroMed Market, supporting Mediterranean administrations understanding of EU regulatory frameworks; the new EuroMed Innovation and Technology project, designed to help bodies supporting innovation in the Mediterranean Partners; EuroMed Quality, launched to promote quality control and standardisation; and the Investment Promotion Programme (ANIMA) which aims at increasing foreign direct investment in the Mediterranean Partners countries. Given that two of the most powerful weapons against long-term unemployment are education and training, the MEDA programme features an Education and Training for Employment project. This aims to support Partners in combating and preventing long-term unemployment, particularly among the young and women, mainly through supporting policy implementation, capacity building and best practice exchange for educational institutions. The EU and the EIB, along with other international and multilateral financial institutions, have helped the Mediterranean Partners to implement substantial economic reforms. This support has taken place through direct budgetary support to Structural Adjustment or Sectoral Facilities. In terms of private-sector development and industrial co-operation, the EC is involved in a range of bilateral and regional activities for which over 1.6 billion has been committed since The bilateral activities cover SMEs and industry development; trade and quality promotion; privatisation and investment; and financial sector and EIB-managed instruments. The regional level activities include support to economic networks, industrial co-operation and business-to-business meetings. Numerous Business Centre projects have been implemented in almost all MEDA partners: the activities of these focused on upgrading companies, promoting exports, trade activities and enterprise partnerships, and developing industrial policies for SMEs under the MEDA Industrial Modernisation Programmes. Infrastructure development constitutes a key factor in increasing the competitiveness of the Mediterranean region. In the sectors of transport, energy and telecommunications, regional programmes bring together policy makers and experts to exchange and co-ordinate strategies and harmonise regulatory environments. These programmes aim at facilitating investment in, and integrating and interconnecting, the energy, transport and telecommunications sectors in the region. The Euro-Mediterranean co-operation in the transport sector in particular aims at strengthening maritime safety and security, promoting the integration of Euro-Med navigation systems in various modes by benefiting from the GALILEO satellite navigation services, establishing efficient transport links with the Trans-European Transport Network and developing a regional transport plan for the area. A number of programmes also finance specific projects to enhance co-operation between the European and Mediterranean Partners, notably in the areas of energy and the information society (EUMEDIS). Interconnecting the countries around the inland sea: the Mediterranean Electric Ring (MedRing) project Agencies and private-sector organizations in 11 countries Algeria, Tunisia, Egypt, Jordan, Lebanon, Syria, Turkey, Greece, Italy, France, Spain are collaborating to link the EuroMed countries to the existing European grid. The immediate aim is to increase energy security in the entire region and ensure more efficient power flows at lower cost, using fewer generating plants. The technology uses synchronous interconnections between national transmission grids, a daunting task in view of the varying operational and technical characteristics of the existing infrastructure. The long-term implication of the MedRing project which will construct ten new cross-border lines is a cut in the primary electricity reserve requirements of all the countries in the region. 30 > The Regional Dimension

33 Blue Paper on Euro-Med Transport Co-operation The recent Blue Paper on Transport in the Mediterranean Region, to be adopted in the December 2005 Euro-Med Ministerial Conference on Transport, analyses the requirements for the development of the Regional Transport System and sets out a strategy for co-operation to achieve this. The strategy focuses on institutional reform, development of infrastructure networks (North South and South-South), improved safety and security of maritime transport; improved efficiency of transportation in the region through enhanced transport logistics and multimodal transport; promotion of regulatory convergence in air transport sector, notably on safety, security and air-traffic issues; and increased involvement of the MEDA Partners in the Galileo project. A stitch in time: support for Mediterranean textile and clothing SMEs The textile and clothing industries of the southern Mediterranean, which employ some 7.7 million workers generating close to 250 billion in annual revenue, are mainly small businesses. EMED TEX NET, a project of the EUMEDIS programme, was an IT support scheme to prepare these businesses for January 1, 2005, when global quotas on textiles and clothing were scrapped. The scheme, channelled through the portal, featured three main components: business intelligence (market information, sourcing trends, regulations, technical innovations); access to business contacts and trade through a web forum and various aids; and benchmarking and improvement tools including online training. Masterminded by the Paris Chamber of Commerce, the scheme brought together 10 countries, 18 professional and research organisations and a group of textile enterprises. 31

34 The promotion and protection of the environment is an essential dimension of the Partnership. The challenges related to water scarcity and environmental degradation are addressed at the regional level through the SMAP environmental programme and the Local Water Management Programme. (See box below). The bilateral agreements are to be complemented by a subregional economic agreement, the Agadir agreement, launched by Egypt, Jordan, Morocco and Tunisia in February This subregional co-operation is supported by the EU with a MEDA contribution for the new Agadir agreement secretariat. (See third box below). SMAP: Protecting a common environment A key element of the Euro-Mediterranean Partnership is reconciling economic development with the protection of the environment. It has led to the Short and Medium-term priority environmental Action Programme (SMAP), which covers policy orientations and funding allocations at both regional and national levels. SMAP actions prioritise integrated water management; integrated waste management; hot spots (covering both polluted areas and threatened bio-diversity systems); integrated coastal zone management; and combating desertification. Preserving and managing marine and coastal biological diversity This three-year project helps seven Mediterranean countries Algeria, Cyprus, Israel, Malta, Morocco, Syria and Tunisia conserve and manage marine and coastal biological diversity. The project has contributed to developing management plans in protected areas, particularly coastlines, and identifying sites hosting habitats of interest that might become protected areas. A particular feature of the project, which includes underwater surveys, is that it covers entire ecosystems. Other aspects include capacity-building, the potential for tourism development, and fisheries management. The project has been managed by the Regional Activity Centre for Specially Protected Areas (RAC/SPA), based in Tunisia, with the participation of France, Italy and Spain. ( EU creates Technical Unit to support Agadir free trade area The European Union has signed a contract to set up a Technical Unit based in Amman, Jordan, to manage the Agadir Agreement for free trade concluded/signed/reached between Jordan, Egypt, Morocco and Tunisia. The contract comes as part of a 4 million financing agreement between the European Commission s Delegation and the Jordanian Ministry of Planning and International Co-operation. The Agadir Agreement is expected to create an integrated market of more than 100 million people. It allows Jordan, Egypt, Morocco and Tunisia to cumulate their rules of origin so that they can export to the EU duty-free and quota-free. If one country s input into a product is not large enough for that product to be exported freely to the EU, input from the other three countries can be added until the required value-added percentage is reached. 32 > The Regional Dimension

35 Cultural, Social and Human Partnership: dialogue between cultures in the Mediterranean Region The third chapter of the Barcelona Process is supported by the activities of the cultural, social and human partnership. The MEDA regional activities highlight the importance of the inter-cultural and inter-religious dialogue as well as the role of the media and the development of human resources in the cultural field. The Euromed Audiovisual programme aims to develop the audiovisual sector in the Southern Mediterranean region by boosting co-operation between public and private operators and by promoting the transfer of technology and knowhow, encouraging co-operation between producers and distributors at Euro-Mediterranean level. It also seeks to support the promotion and circulation of films from the EU and the Partners while supporting the film and TV heritage of the region. Euromed Audivisual projects include original productions and co-productions, promotion activities, the preservation of local audiovisual heritage and film festivals. The Euromed Heritage programme ( launched in 1998 aims at the preservation and development of the cultural heritage of the Partners. The programme covers projects ranging from the conservation and preservation of archaeological and historical sites and traditions and music to awareness raising and training activities. 33

36 The Anna Lindh Foundation for the Dialogue between Cultures One of the most recent initiatives of the Partnership was to set up, in Alexandria in 2004, the Anna Lindh Euro-Mediterranean Foundation for Dialogue between Cultures. The Foundation will pursue its title s aim through a process of intellectual, cultural and civil society exchange. The ultimate objective is to promote mutual understanding, tolerance and appreciation of the different cultures on the shores of the Mediterranean. Each Partner is establishing a network of institutions and organisations already active at the national level, with a lead organisation nominated to co-ordinate that country s activities. These groups will be brought together in a network of networks dedicated to achieving the Foundation s aim. Saved from the desert sand: the ancient private libraries of Timimoun The aim of the ManuMed project is to conserve and inventory manuscripts held in small libraries dotted throughout North Africa and the Near East, thus preserving the books and the wisdom they contain. Many of these collections are at risk from insects, heat, oxidation, and the acidity of desert sand. These threats represented a particularly danger for the ancient private libraries of the desert town of Timimoun, Algeria, in the remote Gourara region of the Sahara. The ManuMed team set out to help save these libraries. For centuries, the town's leading families had collected books and manuscripts because they believed that to own a book was to possess knowledge, and that knowledge was power. Twenty-nine private libraries and some ancient volumes have somehow survived in Timimoun, heaped on shelves in rooms dusty with age: illuminated Korans, histories, mediaeval works of grammar, medicine, science and geography. A heritage precious to Mediterraneans and Europeans alike. Prodecom: reviving the traditional arts and crafts Traditional arts and crafts are living expressions of local cultures. Sustaining them brings benefit both to the communities that produce them and others. In the Prodecom project ( the Euro-Mediterranean Partners have combined commitment, creativity and marketing to revive traditional skills. In its first three years, the project set up: a permanent sales and promotion space in Paris for arts and crafts providing training opportunities, alternative tourism services and integration policies for immigrant populations; traditional handicrafts cultural centres in Istanbul and production workshops in Iznik (ceramics) and Kandira (weavings); a two-year product development training scheme in Jordan, the Turath Empowerment Programme; and support for women s co-operatives in the West Bank, the Gaza Strip, Lebanon and Jordan fostering self-employment for refugees and women living in secluded rural areas. EuroMed Heritage Journalistic Award A journalistic prize for the best articles published on Euro-Mediterranean Cultural Heritage has been awarded by the European Commission as part of 2005 Year of the Mediterranean. The competition, open to journalists under 35 years from EU countries and the Mediterranean Partners, was organised by the MEDA-funded Heritage Programme managed by the European Commission s EuropeAid Co-operation Office. 34 > The Regional Dimension

37 It was such a great experience to be among a huge number of different nationalities, and to share ideas with them. Lina, Jordanian girl Cross-border Co-operation Giving a voice to young people The EuroMed Youth Programme, launched in 1999, provides for a permanent dialogue promoting understanding and cohesion between the younger generations of the 35 Partner countries. Its activities include youth exchanges, voluntary service, language training and a range of support measures. The programme also aims to aid their integration into the social and professional lives of their countries, and develop the active citizenship of young women in particular. More than young people have participated in these projects to date ( I n preparation for the European Neighbourhood Policy, the financial assistance to be provided to the Partners will be partly awarded from the new MEDA Neighbourhood Programme (MNP). The purpose of the MNP is to fill the gap between the current regional programme, the bilateral country programmes and the Neighbourhood Instrument from 2007 onwards. The MNP has the advantage of the flexibility to respond to urgent political and economic priorities, identified in the ongoing dialogues with the Mediterranean Partners, which cannot be addressed through any of the other current programmes of co-operation. The new MEDA Neighbourhood (Indicative) Programme (MNIP) allows for support to cross-border and transnational co-operation. Cross-border co-operation aims at the promotion of integrated regional development between bordering regions. Transnational co-operation, however, involves national, regional and local authorities, with the aim to promote better integration between Member States and neighbouring countries. While it is understood that no budgetary funds under MEDA can cover activities inside the EU, the MNP will include support to cover co-operation between Morocco and Spain, and Morocco and Gibraltar. Although presently limited in scope, future programmes could extend to co-operation in infrastructure, economic, social and cultural domains 35

38 A major Information Campaign highlighting the challenges and achievements of the EuroMed Partnership F or some time now the representatives of the 35 Partner countries have recognised that the Barcelona Process lacks the visibility it deserves: public opinion on both sides of the Mare Nostrum barely realises what is at stake, the objectives and the issues and more importantly, what has already been achieved. For these reasons, the European Commission has allocated a budget of over 10 million to the creation and implementation, from end-2004 to June 2006, of a major information campaign in association with the most important media in the region. This programme is being organised by European Commission headquarters in close collaboration with the EU Delegations in the partner countries and in consultation with the MEDA Partners. Hundreds of hours of TV programmes devoted to various aspects of political, economic and cultural co-operation have been in development since the beginning of 2005 and are broadcasted on satellite networks like Al-Arabiya (the MBC news network) and TV5 Monde, and national networks such as ERTU (Egypt), JRTV (Jordan), Canal Algérie, Keshet (Israel) and NBN (Lebanon). In addition, hundreds of hours of radio programmes will be broadcast, in French and Arabic, on the RFI and RMC Middle East networks. Full editorial pages, special supplements and inserts have also been appearing regularly in leading newspapers in Egypt (Al- Ahram), Israel (Yedioth), Lebanon (L'Orient-Le Jour, le Commerce du Levant, As-Safir), Morocco and Jordan. To support and maximise the impact of this programme, the European Commission is arranging a series of meetings, media conferences and training programmes, and developing a website, brochures, leaflets and posters, as well as organising specialist teams to promote the campaign to the public. For more information: europeaid-euromedinfo@cec.eu.int (site under construction) Dozens of special programmes, interviews, talk shows and magazines are being devoted to the most important issues of trans-mediterranean life: youth, the role of women and civil society, employment, mobility, economic and trade relations, cultural interchanges, etc. 36 > The Barcelona Process continues...

39 The European Investment Bank FEMIP The Barcelona Process undertaking to establish a free trade area between the southern and northern shores of the Mediterranean by 2010 calls for not only substantial financial support but also firm political will on both sides of the Mediterranean. Philippe de Fontaine Vive, Vice-President, European Investment Bank 1 I n Barcelona, in March 2002, European Member States endorsed the creation of a special instrument to accelerate the process of development in the Euro-Mediterranean Partner countries. Recognising the need for an additional initiative, the Euro- Mediterranean Investment and Partnership Facility (FEMIP) puts the priority on the development of the private sector and on regional integration projects: there is a need to bridge the gap between the oil-exporting nations, where progress has been slow, and the other countries of the region. Particular attention is paid to incentives designed to attract private-sector financing and investment. In addition to funding infrastructure projects that favour economic development and enhance quality of life, FEMIP is now contributing to programmes in the education and health sectors of the Partner countries. The European Investment Bank operates regional offices in both the Maghreb (Tunis and Rabat) and the Mashreq (Cairo). In total the European Investment Bank has lent 14 billion to the Euro- Mediterranean Partners since Boosting cement production in Algeria The Algerian Cement Company Spa (ACC) received a USD 15 million FEMIP loan in 2004 to co-finance the expansion of its cement plant, located near M Sila, 240 kilometres south-west of Algiers. ACC, a subsidiary of the leading Egyptian group Orascom Construction Industries (OCI), is the only private-sector cement producer in Algeria. The construction of the M Sila plant, successfully implemented on a greenfield site over the period , had already benefited from loans and mezzanine finance made available by FEMIP. Such follow-up investment was co-financed in close co-ordination with other international financial institutions (International Finance Corporation-IFC and Deutsche Entwicklungsgesellschaft-DEG), local and international commercial banks (Caisse Nationale d Épargne et de Prévoyance CNEP, Citibank-Algeria, Citibank International London, and Eksport Kredit Fonden EKF) which had also participated in the financing of the first production line. The continued involvement of the lenders demonstrates their sustained confidence in the role and opportunities of private-sector investors in Algeria. ACC is also an exemplary South-South private-sector investment, building on the experience of the OCI group and bringing together Egyptian, Algerian and European investors for the development of a crucial economic sector for the Algerian economy. It ties in with the objectives of FEMIP, which aim at liberalising Partner countries economies and strengthening economic co-operation within the region. The investment will generate major economic benefits for the Algerian economy. Its aim is to meet significant demand in the country for cement and concrete for housing construction, for which a pressing social need currently exists in Algeria s main urban centres. In addition, the expansion will create employment, exploit local raw materials and replace imports, hence enabling the country to make appreciable hard currency savings. 37

40 Social housing project assures better living conditions for Moroccan families The Infrastructures Logement Social loan, granted to Holding d Aménagement Al Omrane (Al Omrane) a Moroccan development company specialising in urban areas earmarked for social housing construction-, represents a first for FEMIP in the social housing sector outside the EU. The project will help improve the living conditions of Moroccan households, by financing primary infrastructure both in residential districts that suffer from a lack of basic amenities, and in new urban development areas. Through this 71 million loan to Al Omrane, the FEMIP will help to eliminate shanty towns and to upgrade slum areas, and it will contribute to alleviate the social housing shortage in the Partner country. The project comes under the Cities without Slums programme, which aims to build low-cost dwellings a year. FEMIP has developed a co-ordinated approach firstly with the Agence française de Développement (AFD), that is currently preparing a complementary scheme; secondly with the World Bank which is developing a project to support institutional reform in this sector, and thirdly with the European Commission, which will include the eradication of shanty towns among its priorities for Through this project, FEMIP will contribute to the achievement of one of the United Nations Millennium Development Goals: ensuring environmental sustainability by significantly improving the lives of at least 100 million slum dwellers by Exploiting Egypt s natural gas reserves, earning foreign exchange The Damietta LNG project involves the construction of a liquefied natural gas (LNG) plant and its storage and export equipment with a production capacity of 4.9m LNG t/yr, representing one of the world s largest single LNG trains. The project is located in the industrial port of Damietta, on the Egyptian Mediterranean coast. The project is a joint venture between, on the one hand, two leading European energy companies, Union Fenosa and ENI, and, on the other hand, Egyptian companies, sharing the benefits of gas liquefaction on an equal basis. The project aims at making an efficient use of natural gas reserves in Egypt and facilitating the export of gas to Europe: accordingly, it will contribute to the regional integration of energy networks in the Mediterranean and help increase and diversify energy supplies to Europe. The loan underpins FEMIP s support for Egypt s new role as a prominent oil and gas producing country, the main benefits to the country being: increased foreign exchange earnings; participation of national companies in profitable projects involving large investments; transfer of international technologies and technical skills; job creation, and further industrial and economic development. FEMIP s capacity to attract long-term commercial funding and guarantees on this transaction were viewed by the Government of Egypt and the project sponsors as critical factors for the success of the operation. The sponsors of the project considered FEMIP s participation essential to its success, with particular emphasis on the risk-sharing mechanism provided. The loan, 50% of which was financed under the Mediterranean Partnership Facility, provides a good illustration of the excellent use FEMIP can make of this instrument. By supporting privatesector development, with long-term finance to an energy-sector project of major interest to Egypt and the European Union, the loan fully complies with the criteria set out in the Facility. 38 > The European Investment Bank

41 The Barcelona Process continues... T he tenth Anniversary of the Barcelona Process is not the end of the road. It is merely a milestone. The road leads on, as the Partners complete their Association Agreements and move to formulate and implement the Neighbourhood Policy Action Plans. The journey will see the MEDA project financing programme replaced in 2007 by the European Neighbourhood and Partnership Instrument (ENPI), focusing the assistance on the implementation of the European Neighbourhood Policy Action Plans, the completion of a Euro-Mediterranean Free Trade Area to all sectors, including agriculture and services, the strengthening of Euro- Med s own institutions, and much more. A recent innovation is the concept of twinning, where EU Member States send experts to help boost the capacity of Mediterranean Partners administrations. Where appropriate, short-term specialist services and training including traineeships with European administrations, schools and professional bodies can be provided. While twinning operates on the basis of specific projects, it also helps build long-term relationships. This concept is already being applied successfully on behalf of the new Member States of the EU, including Malta and Cyprus. Although the Euro-Mediterranean Partnership owes its origins to governments and institutions, its future resides in its acceptance and recognition by the Mediterranean people, in particular the younger generations. The UNDP Arab Human Development Reports have called for further progress in political reform, education and women s rights the most recent, published in April 2005, talks of the freedom deficit and these priorities have been confirmed in the declarations of Sana a and Alexandria, and the conclusions of the Arab League Tunis Summit in As part of this process of advancing the role of women and empowering young people, the European Union is committed to increasing bilateral co-operation substantially in the field of education and vocational training. An overriding priority is promoting a sense of ownership in the Partnership, especially for people on the southern coast. It means the Euro-Mediterranean Partners will continue to place greater emphasis on democracy and Human Rights, economic reform and growth, and education. On the economic front, the Partners will focus particular attention on encouraging more industrial investment in the Euro-Mediterranean region and the further liberalisation of trade in agriculture, processed agriculture products and fisheries, as well as services and right of establishment. Greater South-South economic integration is essential in attracting such investments. The February 2005 report published by the FEMISE forum of economic institutes said: Deeper integration entails not only the dismantlement of tariff barriers, but also removing non-tariff barriers to trade, improving the environment for investment and financial flows, harmonisation and/or mutual recognition of regulations, harmonisation of rules, procedures and legal frameworks (e.g. with respect to competition policy, labour law, commercial law ), liberalising labour mobility and improvements in infrastructure. 39

42 Upcoming initiatives in the Barcelona Process timelines 2005 > Mandate on the agricultural liberalisation > Mandate on the liberalisation of services and investment 2006 > Completion of the European Neighbourhood Policy Action plans > Sub-regional conferences on Human Rights > Euro-Mediterranean Conference on gender equality > Timetable to eliminate pollution from the Mediterranean by 2020 > Feasibility study for Euro-Mediterranean Development Bank > Scholarship scheme for university students 2007 > Conference on management of migratory flows and social integration > Increased bilateral co-operation in the education sector 2008 > Conclusion of South-South free trade agreements leading to establishment of Euro-Mediterranean Free Trade Zone 2010 > Inauguration of Euro-Mediterranean Free Trade Zone 40 > A major Information Campaign

43 Key Dates Association Agreement and European Neighbourhood Policy, Country Opened Negotiations Signed Entered info force ENP Action Plan Other Algeria 2002 April 2004 October (Ratification) Egypt 1995 November 2001 June 2004 May (trade and traderelated provisions effective since 2003) 2004 September (extend to EU+35) 2004 May Open Negotiations 2005 Finalisation of negotiations 2004 February Signed Agadir agreement Gaza & West Bank 1997 February (Interim AA) 1997 July 2005 Adopted Israel 1995 November 2000 June 2004 April (extend AA to EU+35) 2004 September Adopted 2005/6 expected to join Pan Euro-Mediterranean system of cumulation of rules of origin Jordan 1997 November 2002 May 2005 June Adopted 2004 February Signed Agadir agreement 2005/6 expected to join Pan Euro-Mediterranean system of cumulation of rules of origin Lebanon 2002 June Expected: 2005/ Under discussion Morocco 1996 February 2000 March 2005 March Concluded 2004 February Signed Agadir agreement Syria 2004 June Text initialed Expected: 2005/6 Tunisia 1995 June 1998 March 2005 March Concluded 2004 February Signed Agadir agreement Turkey Sources: Euromed information notes, June 2005 Europa website : February (signed FTA with Morocco & Tunisia) 41

44 Facts & Figures MEDA Programme Commitments & Payments ( million) (MEDA I) (MEDA II) Commitments Payments Commitments Payments Bilateral Co-operation Algeria West Bank & Gaza Egypt Jordan Lebanon Morocco Syria Tunisia Total Bilateral Regional Co-operation TOTAL > Facts & figures

45 Breakdown by sector of MEDA bilateral activities in 2004 Social development 38% Economic reform 18% Institutional support 24% Rural development 2% Multisector projects 3% EIB loans 6% Transport and Infrastructure 6% Support to civil society 2% Environment 1% From MEDA I to MEDA II: a considerable improvement in results In terms of financial performance, MEDA II shows a very clear improvement on MEDA I. Taking the Mediterranean countries as a whole, including regional co-operation activities, the payments/ commitments ratio has doubled over the last three years, growing from 29% for MEDA I ( ) to 77% for MEDA II ( ). This improvement has continued through MEDA II, with a payments/commitments ratio that rose from 56% in 2000 to 115% in A second important factor has been a 100% take-up of all available credits over the last four years. This has been matched by 100% utilisation of payment credit facilities over the same period. million MEDA I ( ) MEDA II ( ) Commitments Payments A commitments/payments ratio three times higher MEDA I ( ) 29% MEDA II ( ) 77% Accelerated progress under MEDA II % % 43

46 Further Information European Union EU Delegations in Partner Countries EuropeAid Co-operation Office The MEDA programme EU Directorate-General for External Relations Euromed Synopsis European Investment Bank EU Directorate-General for Trade Algeria Egypt Gaza Strip and West Bank Jordan Lebanon Morocco Syria Tunisia Israel Turkey 44 > Further Information

47 MEDA National Delegations to the European Union Mission of the Algerian Democratic People s Republic to the EU Avenue Molière 207 B-1050 Brussels info@algerian-embassy.be Mission of the Egyptian Arab Republic to the EU Avenue de l'uruguay 19 B-1000 Brussels embassy.egypt@skynet.be Palestinian General Delegation to the EU Rue Franklin 111 B-1000 Brussels deleg.palestinienne@skynet.be Israeli Mission to the EU Avenue de l'observatoire 40 B-1180 Brussels press-eu@brussels.mfa.gov.il Mission of the Hashemite Kingdom of Jordan to the EU Avenue F.D. Roosevelt 104 B-1050 Brussels jordan.embassy@skynet.be Lebanese Mission to the EU Rue G. Stocq 2 B-1050 Brussels ambassadeliban@brutele.be Mission of the Kingdom of Morocco to the EU Avenue F.D. Roosevelt 2 B-1050 Brussels mission.maroc@skynet.be Mission of the Syrian Arab Republic to the EU Avenue F.D. Roosevelt 1 B-1050 Brussels syria.mission@skynet.be Mission of the Tunisian Republic to the EU Avenue de Tervueren 278 B-1150 Brussels amb.detunisie@brutele.be Turkish Permanent Delegation to the EU Rue Montoyer 4 B-1000 Brussels info@turkdeleg.org 45

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