Speech by Mr Olli Rehn
Member of the European Commission, responsible for Enlargement

"Progress rewarded, next phase of reforms to begin - the Commission recommends candidate status for the former Yugoslav Republic of Macedonia"

Address to the Parliament
Skopje, 10 November 2005

President, Speaker, Members of Parliament

It is a pleasure to be in Skopje today to present the Opinion the Commission adopted yesterday on your country's application for EU membership. I am honoured to have the opportunity to present to your assembly the main conclusions and recommendations.

Almost one year ago, my first visit to the region as Commissioner for enlargement was to Skopje. I said on that visit that the EU family will be incomplete as long as the Western Balkan countries remains outside it. I also pledged that your application for EU membership would be assessed by the Commission fairly, thoroughly and objectively against the criteria for EU membership set at the Copenhagen European Council.

Twelve months later, I bring you that assessment. It gives a thoroughly researched and carefully weighed analysis of the progress made by the country - as well as of the weaknesses which remain to be addressed before the country can make further progress towards the EU.

Achievements so far

First of all, the Commission's Opinion acknowledges the important steps taken forward in the past few years.

The continuous progress made in the implementation of the Ohrid Framework Agreement is an achievement for the country as a whole. Since 2001, important reforms have been initiated in the country which have allowed a return to stability and encouraging changes in society. This process was sometimes difficult, but the Ohrid Agreement has established a process which strengthens mutual confidence between communities and provides a solid ground for addressing the challenges ahead.

This country has also made important efforts to strengthen the rule of law. The first steps have been taken to reform the police as well as the judiciary and we are pleased to see the first elements of implementation already.

The police service is already offering a new face to its citizens after internal reforms such as the establishment of mixed patrols and the first changes to make it more effective and accountable.

The debate about the modification of the Constitution to improve the independence and the efficiency of the judiciary has also sent a clear signal of the general will to go ahead with necessary reforms. I hope the necessary amendments will be made quickly to allow the next step of implementation.

We have seen the same degree of commitment to establishing economic stability. Low inflation, balanced public finances and low public indebtness indicate a macroeconomic situation which provides a sound basis for economic development. Now the country needs to create better conditions for investment, both domestic and foreign.

We have also noticed the significant efforts made to align your legislation with the EU acquis, notably in the areas of the internal market and trade. This progress reflects a developing relationship which started in 1997 through our Cooperation Agreement and further expanded with our Stabilisation and Association Agreement. The implementation of these agreements is essential for preparing a country for future accession.

However our assessment reveals that these achievements need to be consolidated through a sustained effort.

Weaknesses to be addressed

Your country is a functioning democracy with stable institutions. However, the conduct of the election process has been marred on various occasions by serious irregularities. Situations that cannot be tolerated in a democracy have been observed repeatedly - despite the recommendations by the EU to take the necessary preventive measures.

The reform of the electoral process has now been launched and I'm glad to see that the authorities are taking it seriously. It is essential that the recommendations of the OSCE be rapidly and fully implemented. The next parliamentary elections will be a test case for all stakeholders' commitment to the full integrity of the electoral process.

The strong commitment of political leaders in this country to the implementation of the Ohrid Agreement underpins the achievements I mentioned earlier. Ohrid remains critical, to strengthen the climate of confidence and foster a positive environment for EU integration.

Progress in consolidating the rule of law depends on further efforts to reform the law enforcement agencies, notably the police, and the judiciary. A particular concern is the high level of corruption which affects many aspects of the economic, social and political life of the country. It is of the utmost importance to improve your efforts in this area to make your actions more effective..

The Commission commends your country's active participation in regional and bilateral cooperation initiatives. Now it is time to sustain your efforts and resolve all the outstanding issues, to the benefit of all parties.

On the economic front, there is a broad consensus on the essentials of economic policies and socio-economic progress is at the top of citizens' concerns. These are good circumstances to proceed with the structural reforms needed to address the serious problems affecting the functioning of the market economy. The country must face institutional weaknesses, such as slow and cumbersome administrative procedures, shortcomings in the judiciary, and widespread corruption. Without a well-functioning market economy, the country will have major difficulties in developing the capacity to cope with competitive pressure and market forces within the EU.

The way to the EU also goes through the vast range of legislative and administrative changes needed to ensure that a country can take on the obligations of membership. This criterion can only be met gradually, but our analysis has shown the broad range of work that remains to be done.

In the Opinion, the Commission has divided the 33 chapters of the body of EU law into five categories, depending on the country's readiness to adopt, implement and enforce the acquis in each given area. In 15 areas, we find that you should not face major difficulties in applying the acquis in the medium term, or that you are on the right track and simply need to continue.

In the other areas, whether we believe that you can only meet the target within five years if the necessary reforms proceed quickly and profoundly; or we are doubtful you could meet the requirements of the acquis, even in the longer term, unless efforts are speeded up considerably.

In general, while the country has made significant progress in aligning legislation with the acquis, progress is much less impressive regarding the implementation and effective enforcement of this legislation. This is a major challenge.

Conclusions

I commend the efforts and dedication of all those who contributed to the progress made over the past few years. At the same time, we see that much remains to be done on the European agenda.

In the light of its assessment, the Commission considers that the country is on the right track to meet the necessary criteria for opening negotiations for accession to the European Union. However, negotiations can only be opened once your country has reached a sufficient degree of compliance with the membership criteria. The length of time that this will take depends on how quickly the weaknesses can be remedied. The draft European Partnership which accompanies the Commission Opinion will help you to remedy these weaknesses, by setting out the key tasks. The Commission has also decided to recommend that the European Union should grant the status of candidate country to your country, in recognition of the country's major achievements on the legislative framework related to the Ohrid Framework Agreement of 2001, and the progress made in the course of the four years of implementation of the Stabilisation and Association Agreement. This status would be a political recognition of a closer relationship between the EU and the former Yugoslav Republic of Macedonia on its way towards membership.

I expect that the conclusion and the recommendation by the Commission will be discussed by the Member States soon, most likely at the European Council next month.

Independently from this decision, this Commission's Opinion marks the beginning of a new phase in your European integration process. Next year, the Commission will present a report on further progress. I am confident that you will meet the historic challenges that your country has decided to face by submitting an application for EU membership. I assure you that the Commission will help you all the way along the road to the EU.