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European Neighbourhood Policy (ENP)

The rationale behind the European Neighbourhood Policy (ENP) is to prevent the emergence of new dividing lines on the European continent after the EU enlargement on 1 May 2004 by establishing privileged relationships with old and new neighbors of the EU in a way that is distinct from EU membership. The policy was first outlined by the European Commission in March 2003 in its Communication on Wider Europe. In May 2004 the European Commission presented the European Neighbourhood Policy Strategy Paper, setting out in concrete terms how the European Neighbourhood Policy will work, bringing together the principal instruments at the disposal of the Union and its Member States.

Scope and underlying principles

The ENP is addressed to the EU's neighbors without in most cases accession prospects, in particular those that have come closer to the EU as a result of enlargement. This applies as far as the World Bank's Europe and Central Asia (ECA) region is concerned, to Ukraine, Belarus and Moldova as well as the three countries of the South Caucasus, Armenia, Azerbaijan, and Georgia. There are eight countries around the Mediterranean which are also included in the ENP. These countries are covered by the World Bank's Middle East and North Africa (MNA) region. Assistance to neighboring countries with accession prospects, such as the countries of the Western Balkans and Turkey, is covered under a separate Pre-Accession Strategy.
The privileged relationship offers the EU's neighbors the opportunity to participate in various EU activities through close political, security, economic and cultural cooperation. One main objective and incentive is the potential extension of the EU Internal Market to neighboring countries. Thus, the goal of the ENP is to bring added value to both the partner countries and the EU by going beyond existing cooperation.

Method

The method to meet the goals of the ENP consists in defining a set of priorities in jointly agreed "Action Plans" together with the respective partner countries. The aim of these Action Plans is to bring the neighboring countries as close as possible to the European Union. The Action Plans are based on two principles: joint ownership and commitment to common values, including democracy, the rule of law, good governance and respect for human rights, and to the principles of market economy, free trade and sustainable development, as well as poverty reduction. The Action Plans will be differentiated, i.e. identify a number of key priorities and offer a real incentive for reform with each country. This tailor-made approach takes into account the specificities of each neighbor, its needs and capacities as well as its existing state of relations with the EU. The Action Plans will have a minimum duration of three years and are subject to renewal by mutual consent.

Monitoring

Monitoring should reinforce joint ownership. Therefore, monitoring will take place within the bodies under the Partnership and Cooperation Agreements or Association Agreements. These bodies bring together representatives of partner countries, member states, the European Commission and the Council Secretariat.
As a basis for the monitoring exercise, partner countries will be asked to provide detailed information. Taking this information into account the European Commission will draw up periodic country reports, covering progress in implementation of bilateral agreements and related reforms as well as areas which require further efforts.

A new financial instrument for ENP

In line with the priorities set out in the Action Plans the EU will provide financial support to the countries concerned. Assistance will mainly come from the TACIS and MEDA programs and will be complemented by a new financial instrument, the European Neighbourhood Instrument (ENPI) from 2007 onwards. The ENPI will focus on cross-border cooperation, bringing together regions of Member States and partner countries sharing a common border. For the period 2004-2006, the EU will provide 255 million Euros for the European Neighbourhood Policy. For the next financial perspective 2007-2013, the Commission proposed a substantial increase in the annual amounts to be allocated to the European Neighbourhood Instrument.

The Role of the World Bank in ENP

The World Bank is closely cooperating with the ENP countries as well as the EC so as to align its country assistance strategy and accompanying programs to support compliance with the ENP Action Plans.




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