The Euro-Mediterranean Partnership. A Deeper Insight into the Economic and Financial Dimension

27 novembre 2021 | Report | Anglès

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Introduction

2010 is a symbolic date for the Barcelona process as it is the target date for the creation of the global Euro-Mediterranean Free Trade Zone. 15 years after the adoption of the Barcelona declaration, the founding act of the Euro-Mediterranean Partnership (EMP), the Spanish presidency put the Euro-Mediterranean relationships high on its agenda. The Spanish Presidency wanted to celebrate this anniversary by giving to the « Barcelona Process – Union for the Mediterranean a new impetus. However the difficulties linked to the creation of the Union for the Mediterranean and the Israeli-Arab conflict have largely disturbed this will to reinforce the ties between the EU and its Mediterranean neighbours.

Scheduled for June 2010, the second summit of the Head of State of the Union for the Mediterranean was postponed to November 2010, under the Belgian Presidency, this according to Mr Angel Moratinos, Spanish Minister for Foreign Affairs, in order to ensure its “complete success”[1]. But the year 2010 ended without the summit could be held as it was once again cancelled.

Initially, this report should take into account the results of the second Summit of the Union for the Mediterranean and therefore have a more forward-looking orientation. However, since the questionnaire of July 2009, the various dimensions of the Euro-Mediterranean Partnership have largely evolved. It therefore seemed appropriate to focus this report on three elements :

i) an overview that focuses on the progress of the Euro-Mediterranean Partnership in the context of the implementation of the Lisbon Treaty ( 1 December 2009) and financial and socio-economic crisis;

ii) a « thematic dossier » on the economic and financial cooperation and the implementation of the Euro-Mediterranean Free Trade Area;

iii) an analyse of the Euro-Mediterranean sectoral cooperation.

It should finally be noted that this report covers the period from June 2009 to December 2010. It therefore completes, regarding the progress of the EMP, the first report[2] published in June 2009. The thematic dossier on the Euro-Mediterranean Free Trade Area contains, however, more recent data.

Status and progress of the Union for the Mediterranean in 2010

The progressive institutionalisation of the Union for the Mediterranean

At the Euro-Mediterranean Summit of the Heads of state or governments held on 13th July 2008 at the initiative of the French presidency, the«Joint Declaration of the Paris Summit for the Mediterranean»[3] was adopted by the participants. Its objectives are the following: enhance multilateral relations, increase co-ownership of the Barcelona Process, set governance on the basis of equal footing and translate it into concrete projects, more visible to citizens.

At the Ministerial Meeting held in Marseille in November 2008[4], thus still under the French Presidency, the Heads of States and Governments agreed to build new structures including:

– a biennial Summits of Heads of State;

– a North/South rotating co-presidency;

– a joint Secretariat.

Between the end 2008 and the late summer 2009, the EMP – UfM was paralysed due to the conflict in the Gaza Strip. The Czech Presidency of the Council of European Union (January – June 2009) “focused its attention primarily on addressing the crisis and minimising its impacts.”[5]. It is thus only at the end of this period that activities began progressively to restart with the submission of a proposal regarding the Statute of the Secretariat of the Union for the Mediterranean.

The work programme identified in Marseille in November 2008 was ambitious. New fields of co-operation such as « sustainable development projects », « Food Security, Agriculture and Rural Development », « Justice, Liberty and Security » or « Human Development » were supposed to be tackled during a series of ministerial meetings[6]. However, the 2009 calendar was not respected and most ministerial conferences originally scheduled were either cancelled or were considered as failures as it was not possible to reach a consensus among the partners.

It is only during the 2009 autumn, under the Swedish Presidency, that the political dialogue restarted slowly when meetings were organised in the framework of the EMP-UfM even if, as foreseen in the Work programme for the Swedish Presidency, the focus has been on the ENP and more particularly on the Eastern Partnership[7]. Three Euro-Mediterranean Ministerial meetings were held: the first was the one of the Ministers of finance[8], the second was the Ministerial Conference on strengthening the role of women in society[9] and the third gathered the Ministers of Trade[10] with an emphasis on the Free Trade Area (See below). One should underline that, at the same period, the Swedish Presidency proposed as a priority the ratification and then the implementation of the Lisbon Treaty.

With the Spanish Presidency, (January-June 2010), the EU was expected to refocus on the Southern neighbours as the work programme clearly stated that “Spain will especially emphasise the defence of the unitary nature of the European neighbourhood policy and boost the balanced progress of its Mediterranean and Eastern dimensions »[11]. It is worth to remind that at that time the ENP action plans were to be renegotiated.

As far as the Union for the Mediterranean is concerned, the initial calendar was overloaded as (too?) many conferences were scheduled[12] on higher education and scientific research, environment…But once again, political considerations, mainly the refusal of Arab countries to accept an Israeli participation to the different meetings, consequently paralysed the process. Only the second Euromed Ministerial Conference on Tourism (Barcelona 20th May) and the fourth Ministerial Conference on Water (Barcelona 13th April) were held. However, the latter ended in failure. Indeed a “Long Term Strategy for Water in the Mediterranean” defining a common political, methodological and financial framework in order to facilitate the implementation of regional policies in this area was discussed during the meeting but no final statement was adopted at this occasion because of a reference to « occupied territories », rejected by Israel while the Arab States were opposed to the alternative formulation “territories under occupation” proposed by the European Union[13].

According to the Marseille Declaration of November 2008, the second Summit of Heads of State and Government was originally held in June 2010. The Spanish Presidency stated in his programme that the summit “will be held to address the main topics on the global agenda (economic crisis, climate change, energy, food security, etc.) from the Mediterranean standpoint. In addition, the Euro-Mediterranean Free Trade Area Project should be revamped, and the status of the implementation of the six large UfM projects approved at the Paris Summit (Solar Plan, Supporting Business, Maritime and Land Highways, Depollution of the Mediterranean, Civil Protection, and Higher Education and Research − Euro-Mediterranean University) should be assessed. A biennial work programme should also be adopted to give continuity to all four partnership dimensions. Finally, the Summit should consolidate the UfM institutional structure, ensuring the final implementation of its Secretariat.”[14]

Mr Moratinos, the Spanish Minister of Foreign Affairs, underlined in April 2010 that in order the next Summit to be a success, it should “approve a political declaration and an action plan for coming years, as well as evaluating the four large projects approved in Paris in 2008 on solar energy, sea highways, SMEs and the environment”[15].. In order to improve the political context, the EU was “working with the Quartet, with Egypt and with other Arab countries to support US Government initiatives” for a swift revival of indirect Arab-Israeli negotiations.

Still confident in the restart of dialogue in April, the position of Egypt and Syria, threatening to boycott the Summit if the Israeli foreign Minister was present has definitely derailed the Summit. [16] The Spokesman of the Quai d’Orsay, in the 11 May 2010 press briefing said that despite the efforts of Member States, “the logic of solidarity and cooperation on concrete projects should be preferred” and that UfM member countries had «discretion to determine the composition of delegations attending the Barcelona Summit in June »[17].

So, to ensure a “complete success”[18] of the Summit, Spain, France and Egypt decided to postpone it to November. “The UfM was created to resolve crises, not to create them”, stated Mr. Moratinos. But the Summit was against postponed, sine die. Jerzy Buzek, President of the European Parliament, expressed « his disappointment on that cancellation and the negative political signal it sends about the Euro-Mediterranean Partnership. The President reiterated his conviction that the implementation of the UfM projects, undertaken to help the people in the region, must not be tied to progress in the Middle East Peace Process ».[19]

Under the Belgian Presidency, two Ministerial meetings were held, however. The 9th Conference of Trade Ministers of the Union for the Mediterranean on the 11th November 2010[20] and the second UfM Employment and Labour Ministerial Conference on 21 and 22 November 2010. [21]

The impact of the crisis on Mediterranean Partner Countries

It is now possible to assess the first impacts of the financial, economic and social crisis. They are paradoxical. The subprime crisis, which started in the United States in summer 2007, had many and various affects from a Mediterranean partner country to another. Overall, it should be noted that the financial crisis as such did not have too much direct impact on most of the MPC’s. Ahmed Galal et Jean-Louis Reiffers go so far as to say in 2010 that “The FEMIP Mediterranean countries (FMCs) have reacted well to the crisis. They were protected from a severe financial crisis by the fact that their financial integration – both regionally and globally – is limited. But the shock of the crisis was nevertheless felt. It was transmitted by real effects via four main channels: exports, transfers of income, tourism and direct investment. This shock led to a reduction in growth (by 2 to 2.5 percentage points on average), had an impact on employment (with fewer jobs being created and unemployment rates rising again) and on the public budgets as a result of support measures be introduced (with deficits of 7% of GDP on average)”[22] Another paradox, “the FMCs are undergoing an external demand crisis, which raises the question of balancing their supply and, at the same time, the difficulty of managing the gap between strong domestic demand and flagging external demand pressures – which automatically imposes a strain on the current account balance”.[23] In other words, the trade deficit is likely to continue to widen in some cases.

Michael Sturm et Nicolas Sauter state that concerning the financial turmoil, Mediterranean countries were relatively well preserved because of their lack of exposure to « US mortgage-related assets that turned “toxic” », this is actually due to the state of development of the financial system of many countries in the region [24]. It is indeed an area in which the MPCs is still much progress to be made even if some provisions on free movement of capital is already included in the Euromed Association Agreements.

Paradoxically, it is the lack of integration into global financial markets that has protected the MPCs. When the financial crisis began to affect the real economies of the Member States, the situation was radically different because of the relatively extensive trade and economic integration (bilateral free trade areas) and strong dependencies of some MPCs vis à vis EU: opportunities for exports, revenues related to tourism industry (See above) but also , for example, “Workers’ remittances” [25][26].

Institutional developments and involvement of actors

At the institutional level, both European and Euro-Mediterranean, the situation has really changed since the Ministerial Conference in Marseilles in November 2008 as a new institutional architecture of the “Barcelona Process- Union for the Mediterranean” was gradually established.

The co-presidency

For the period 2008-2009, the Co-Presidency was given to France and Egypt. This Co-Presidency system was maintained in 2010 even after the implementation of the Lisbon Treaty, that is under the Spanish Presidency, which was considered as a transitional period. As for the Belgian Presidency, the transition period continued, even though it tries to start the implementation of the provisions of the Lisbon Treaty, taking into account the prerogatives of Mrs Ashton as the new High Representative assumes the functions of the former rotating Presidency for the configuration Foreign Affairs of the EU Council. Discussions were thus held to prepare the modalities of representation of Mrs Ashton into the new institutional system of the UfM and of the Lisbon Treaty including the post of President of the European Council and the new rotating presidency of the other configurations of the EU Council.

The second Summit had to appoint the future co-chairmen, according to the Marseille Declaration this decision had to be taken by consensus[27]. Moreover, the modalities for the rotating Presidency had be finally settled, in principle, in 2010. The European Parliament did not failed to note that the co-chair of the UfM should be compatible with the new treaty.[28]

The start of activities of the UfM Secretariat based in Barcelona

The establishment of the UfM Joint Secretariat[29] in Barcelona was laborious. At first, it had to agree on the host country for the headquarters of the Secretariat and in a second time on the appointment of its members. The activities of this institution were initially limited partly because of the fact that the funds necessary for its operation were the subject of lengthy negotiations.

The role and the attributions of the Joint Secretariat such as define in the Marseille Declaration [30] are the following :

“- Give an impulse to this process in terms of identification, follow-up, promotion of new projects and the search for funding and for implementation partners;

– Work in operational liaison with all structures of the process, particularly with the co-presidencies, including by preparing working documents for the decision-making bodies;

– Have a separate legal personality with an autonomous status.”

According to the Declaration, “The mandate of the Secretariat is of a technical nature while the political mandate related to all aspects of the initiative remains the responsibility of the Ministers of Foreign Affairs and Senior Officials ».

This was followed by many months of negotiations regarding the selection of the Member Country of the UfM host the headquarters of the Secretariat. It is finally Barcelona which has been chosen by the 43 Member Countries[31]. According to Marseille Declaration, Ministers mandated Senior Officials to adopt the statutes of the Secretariat on the basis of a proposal prepared by a drafting group of experts to be established for this purpose.[32] Four meetings of the drafting group of the statutes have been held in Barcelona on 25 May, 16 June, 16 July and 23 September. A provisional version of the statutes was discussed by Senior Officials on 30 September and 27 October 2009 [33]. After nearly a year of discussions, the Jordanian Ahmad Masadeh was finally appointed as Secretary General on 12th January 2010. But at their meeting on 9th February 2010, Senior Officials were unable to agree on the statutes due to the dispute between Cyprus and Turkey on the appointment of the Deputies Secretary General [34]. It was therefore only on 4th March 2010[35] that the Secretariat Headquarters was officially opened.

The six Deputies Secretary General were also appointed:

– a Palestinian, Mr Rafiq Husseini, division of Environment and water;

– an Israeli, Mr Ilan Chet, division of Higher Education and Research;

– a Turk, Yigit Alpogan, division of Transport and Urban Development ;

– a Greek, (not appointed), division of Energy;

– a Maltese, Mrs Cecilia Attard-Pirotta, division of Social and Civil Affairs;

– an Italian, Mr Lino Cardarelli, division of Projects Funding Coordination and Business Development.

In its Resolution of 20 May 2010[36], the European Parliament welcomed “ the appointment of the  Secretary General and the adoption of the statute of the Secretariat” and recommended that “ in preparation for the Barcelona Summit, the UfM’s institutional and operational structure be completed” by “providing the secretariat with necessary resources, both financial and statutory, to operate effectively and independently” and selecting its staff “on the basis of merit, with due attention to the principles of geographical distribution and gender equality”.

The Secretary General is officially took office on 28 May 2010[37], while some questions remain to be resolved such as the number of officials by delegation and above all the budget[38]. Originally planned by the Commission up to 10 million Euros, it had offered in March to contribute up to 3 million Euros. Pending the availability of these funds, the Secretariat has worked with an interim budget of 782.000 Euros for four years (May – August 2010). The issue of voluntary contributions from Member States for the funding of the Secretariat is not set[39]. This budget issue was expected to be released in November at the Euro-Mediterranean Summit.

If the activity of the Secretariat still remained limited in 2010, as Stefan Füle, European Commissioner for Enlargement and the ENP, “there are real opportunities for the Secretariat to grasp which will be beneficial to all. Apart from its principal role in the validation and visibility of projects, the Secretariat brings a genuine added value in its own right, and the Commission is ready to support it in its endeavours. Of course the Secretariat will need broad support by all UfM partners to succeed and I believe we should all be ready to provide them with good ideas. For instance, the “Conseil de coopération économique” is presently working for the Commission on identifying possible bankable projects for the Mediterranean, some of which could eventually become contributions to the work of the Secretariat as possible UfM projects.”[40]

The resignation of the first Secretary General of the UfM on 27 January 2011, confirmed, however, the inherent difficulties in the establishment of such a secretariat.

The implementation of the Lisbon Treaty

The High Representative of the Union for Foreign Affairs and Security Policy

“The High Representative of the Union for Foreign Affairs and Security Policy” is now participating in the work of the European Council. Mrs Ashton takes over some functions of the former Commissioner Mrs Ferrero Waldner with the notable exception of the European Neighbourhood Policy, assigned to Commissioner Füle, also in charge of Enlargement. It must be underlined that the High Representative is also Vice President of the European Commission (HR/VP). This new HR/VP post includes most of the functions of Mr Javier Solana, except for the post of Secretary General of the Council. Mrs Ashton however play the role of the former rotating Presidency in the field of Foreign Affairs (former GAERC) as she now chairs the new Foreign Affairs configuration of the EU Council.

According to the Treaty of Lisbon,  the High Representative shall “conduct” the common foreign and security policy, and shall “contribute by his proposals to the development of that policy, which he shall carry out as mandated by the Council. The same shall apply to the common and security defence policy” (art. 18.2 TEU).

The European External Action Service

The High Representative shall be assisted by a “European External Action Service” (EEAS). According to the Treaty of Lisbon, “this service shall work in cooperation with the diplomatic services of the Member States and shall comprise officials from relevant departments of the General Secretariat of the Council and of the Commission as well as staff seconded from national diplomatic services of the Member States”.

The Council decision of 26 July 2010 established the organisation and functioning of the European External Action Service[41] (EEAS) which is «a functionally autonomous body of the Union under the authority of the High Representative ». The EEAS is « separate from the General Secretariat of the Council and from the Commission with the legal capacity necessary to perform its tasks ». It should also be noted that it « shall be made up of a central administration and of the Union Delegations to third countries and to international organisations »[42]. In 2010, one should remember especially the progressive establishment of the EEAS at the institutional and administrative level and the first appointments. It is interesting to see in this regard the organisational chart of the EEAS[43] that clearly shows an organisation based on « a number of directorates-general comprising geographic desks covering all countries and regions of the world, as well as multilateral and thematic desks »[44]

The UfM Projects in the fields of infrastructures, civil protection and higher education: state of play

“Union of Projects” was the watchword at the launch of the UfM. It was indeed to reinvigorate the Barcelona Process, giving priority to the implementation of concrete projects of a regional nature that create a “de facto” solidarity.

Six major projects were detailed in the Annex of theJoint Declaration of the Paris Summit for the Mediterranean of July 2008[45]

  1. De-pollution of the Mediterranean (including coastal and protected marine areas, particularly in the water and waste sector)
  2. Maritime and Land Highways (development of motorways of the sea, including the connection of ports, throughout the entire Mediterranean basin as well as the creation of coastal motorways and the modernisation of the trans-Maghreb train, cooperation in the field of maritime security and safety)
  3. Civil Protection (joint Civil Protection programme on prevention, preparation and response to disasters, linking the region more closely to the EU Civil Protection Mechanism)
  4. Alternative Energies: Mediterranean Solar Plan (Market deployment as well as research and development of all alternative sources of energy, the feasibility, development and creation of a Mediterranean Solar Plan)
  5. Higher Education and Research, Euro-Mediterranean University (the Euro-Mediterranean University, with its seat in Slovenia, will develop postgraduate and research programmes and thus contribute to the establishment of the Euro- Mediterranean Higher Education, Science and Research Area. Partner countries are encouraged to make full use of possibilities offered by existing higher education cooperation programmes such as Tempus and Erasmus Mundus, including the External Cooperation Window. Particular attention should be paid to enhancing quality and to ensuring the relevance of vocational training to labour market needs).
  6. The Mediterranean Business Development Initiative (is aimed at assisting the existing entities in partner countries operating in support of micro, small and medium-sized enterprises by assessing the needs of these enterprises, defining policy solutions and providing these entities with resources in the form of technical assistance and financial instruments)

At the Ministerial Meeting in Marseille in November 2008[46], a first “state of progress in the implementation of projects listed in the Annex to the Paris Declaration” was established. It is, two years later, time assess their implementation, as this was one of the original objectives of the second UfM Summit.

At the ECOFIN Council/FEMIP Joint Ministerial Meeting, held on 7 October 2008 in Luxembourg, the EIB has been mandated to act as a coordinator of three key priority initiatives: the depollution of the Mediterranean, the Mediterranean Solar Plan and the maritime and land highways[47]. The secretariat of the UfM should play here an essential role for both technical support and project coordination, especially in seeking funding and partners.

For reasons of consistency, three of the six projects will be studied in the framework of third part. Indeed, the issue of depollution of the Mediterranean cannot be separated from cooperation in water sector and environment, the Mediterranean Solar Plan is an integral part of energy cooperation while the Mediterranean Business Development Initiative is to be taken into consideration within the framework of economic issues.

The Maritime and Land Highways Project

As the experts underline, “for 2025 a very strong increase of pressure is to be expected : multiplication by 2,6 of the road freight, 3,7 for maritime freight as well as twice the current number of travellers”.[48]

We have seen in the 2009 Report[49] that the development of a regional transport infrastructure network was one of the objectives of the Five year Work Programme adopted in 2005. During the first Euromed Ministerial Conference on transport in December 2005, Ministers asked the Euromed Transport Forum to develop a Regional Transport Action Plan for the Mediterranean Region (RTAP). Adopted in May 2007 at the 8th meeting of the Euromed Transport Forum, the RTAP [50] is the “reference for Euro-Mediterranean cooperation in the transport sector for the period 2007-2013”[51]. It comprises “a set of actions in different transport sectors (maritime, road, railways and civil aviation) and targets mainly regulatory (institutional) reform and infrastructure network planning and implementation”[52].

The RTAP is based on :

  • the transport priorities identified in the action plans in the framework of the Euro-Mediterranean Partnership or the European Neighbourhood Policy;
  • the results of the Euromed framework transport project (2003-2007);
  • the findings of additional strategic regional projects: SAFEMED (maritime safety and security), Euromed Aviation, MEDAMoS (maritime highways) and GNSS I (satellite navigation system);
  • the results of the INCO-MED projects: MEDA-TEN, DESTIN and REG-MED.

It should be mentioned, among the 34 actions identified, the action 1: “It is essential that transport planning and policy are better coordinated at different levels, more specifically between national master plans or transport strategies, the ENP action plans and the Euro-Mediterranean partnership. Actions proposed in the RTAP should therefore be tailored to the national needs and reflected in national transport strategies and/or, if relevant, the ENP action plans.”[53]

The “Motorways of the sea” project was identified as a priority in the UfM Paris Declaration. The regional programme MedaMos[54], financed under the ENPI up to EUR 4,8 million for the first phase (2007-2009) and led by the Euromed Transport Forum aims at developing the potential of intermodal maritime transport to allow the development of sustainable, safe and secure markets, and a greater cohesion in this area. The project focuses on the conception and selection of a number of “motorways of the sea” to connect the Eastern (non-EU) and Southern Mediterranean Transport Systems and the Trans European Transport Network (TEN-T)[55]. Beneficiary countries are: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Occupied Palestinian Territories, Syria, Tunisia and Turkey. Out of the total number of initiatives presented in 2008, four pilot projects have received specific technical assistance :

  • Haifa – Trieste;
  • Bejaia-Barcelona and Bejaia-Marseille;
  • Genova – Rades-Marseille;
  • Agadir – Port-Vendres.

This programme “is not indented to run pilot projects. The experts involved should only prepare their implementation, identify the material and immaterial obstacles and provide advices regarding the means to be developed to overcome these difficulties”[56].

It is at the closing meeting of MEDAMoS I[57], held in November 2009, that MEDAMOS II 2010-2013, with a budget EUR 6 million, was launched. It should allow for further improvements regarding the current various pilot projects and for the selection of new projects.[58]

The Ministerial meeting on sustainable development projects was held in Paris on 25 June 2009[59]. According to Saki Aciman, “one of the most important conclusions drawn in this conference in terms of the transport sector is the agreement in favour of the coordination and exploitation of the synergies that may emerge between the Euromed Transport Forum and the new UfM initiative.”[60] The technical worshop held on transport, which preceded the Meeting, considers useful the existence of the two levels because he believes the Forum should provide a common vision of the strategy to be followed in the field of transport concerning the leadership and the reflection on the Euro-Mediterranean cooperation. The UfM and its Secretariat, headquarter in Barcelona, will provide the dynamic and the execution of projects identified as priorities in the field of transport. During the workshop, the list of 17 priority infrastructure projects produced by the Euromed Transport Forum was also presented.[61] The projects in this area are identified and technical assistance programmes established. The issue funding remains however on the table. In this regard, it should be noted that “The workshop noted the existence of a net financial breach in the field of transport between the available financial resources and the projects proposed for implementation. It was reminded that the Union for the Mediterranean offers an opportunity that must be used to address the issue of scarcity of funds.”[62]

Civil Protection

According to the Marseille Declaration, the Prevention, Preparedness and Response to Natural and Man-made Disasters Programme “will contribute to the development of stronger prevention, preparedness and response capacities in civil protection at international, national and local level. It will also aim to bring the Mediterranean Partner Countries progressively closer to the European Civil Protection Mechanism and the envisaged European civil protection network against disasters Furthermore, the joint Civil Protection project on prevention, preparation and response to disasters is one of the main priorities for the region.(…) The collaboration between the civil protection institutions in the EU member states and the Mediterranean Partner countries for strengthening the cooperation in the field of training and on operational level is suggested. »

The “Programme for Prevention, Preparedness and Response to Natural and Man-made Disasters” (PPRD South 2009-2012) has started in March 2009, with a total budget of EUR 5 million. It is managed by a consortium led by the Italian Civil Protection Authority, together with the UN International Strategy for Disaster Reduction (UN/ISDR) and the Civil Protection Authorities of France, Egypt and Algeria. The beneficiary countries are: Jordan, Lebanon, Morocco, Syria, the Palestinian Authority, Tunisia, Turkey, Israel, Albania, Bosnia-Herzegovina, Croatia and Montenegro. The overall objective of the Programme is “to contribute to the development and reinforcement of the quality of civil protection services in the Euro-Mediterranean region and to support the continuation of institutional cooperation in the field, both between the EU and the Mediterranean partners countries and among themselves, thereby promoting political and social stability »[63].

Higher Education and Euro-Mediterranean University

The Euro-Mediterranean University EMUNI was established in 9th June 2008 in Piran (Slovenia). EMUNI works as network of networks, with 118 institutions from 32 partner countries [64] whose mission is to develop postgraduate and research programmes, and thus contribute to the establishment of the Euro-Mediterranean Higher Education, Science and Research Area.[65]

In the Annex of the Declaration of the Paris Summit the EMUNI is presented as one of the six “priority project”. The annex states that the creation of a “Euro-Mediterranean University (with its seat in Slovenia) can contribute to the understanding among people and encourage cooperation in higher education, following up on the objectives of the Catania Process and of the First Euro-Mediterranean Ministerial Conference on Higher Education and Scientific Research (Cairo, June 2007)”[66]. In 2009, several pilot projects in relation to the priority areas of the Union for the Mediterranean have been implemented.

Unfortunately the second meeting of the Euromed Ministers of Higher Education and Research, originally scheduled for April 2010, has been postponed. On this occasion, it was planned to take stock of the implementation of the Cairo Declaration, including the various programmes such as Tempus IV (modernising higher education), Erasmus Mundus I(enhance quality in higher education through Scholarships and Academic Cooperation) and Erasmus Mundus External Cooperation Window (support for the mobility of the students and the professors). A new action plan should also be adopted.

The new projects proposed

Among the new multilateral projects proposed, we must point, from the French side, in addition to the issue of the ‘Mediterranean Bank’:

  • a Euro-Mediterranean arbitration Court;
  • a Treaty on investment guarantee;
  • a Pact for food security in the Mediterranean-countries;
  • a cultural television channel for the Mediterranean;
  • a Mediterranean Youth Office that will provide mobility for Mediterranean students;
  • a Mediterranean cancer Plan;
  • a sustainable urban development Agency.[67]

At the level of the European Parliament, the Peillon Report [68] points out that alongside the six major projects of the UfM, it would be recommended that new projects should be quickly inserted on the agenda by the General Secretary and sectoral ministerial meetings.

The EP stresses the importance of developing “new projects focusing on education, school and university exchanges and research as ways of bringing the peoples on both sides of the Mediterranean closer together and fostering development” and “considers that priority should be given, with the active involvement of civil society, to the creation of a genuine Euro-Mediterranean higher education, science and research area”[69].

The EP also calls for “new projects designed to promote cultural exchanges and mutual understanding between societies” through “the adoption of a Euro-Mediterranean strategy for cultural affairs and the development of intercultural and interreligious dialogue”.[70]

Finally, it should be noted that the EP proposes among the priorities of the UfM cooperation a “greater convergence of Euro-Mediterranean agricultural policies”[71] and “ recommends the adoption of a UfM project on women’s entrepreneurship and enhancement of their involvement in public life”[72]

The projects of Mediterranean Youth Office (MYO) and “Mediterranean Erasmus programme “ are also on the table. In the context of the MYO, it would be expected “to implement a pilot project for youth mobility, or a Mediterranean Erasmus”. “Mediterranean scholarships, access to a platform for internship and jobs, in partnership with business, and facilities for visa, residence and exercise of a first work experience are considered in this particular framework”[73].

Ministerial Euromed meetings in 2010

The “Work Programme for 2009”, adopted at the meeting of Euro-Mediterranean Foreign Ministers on 3 and 4 November in Marseille, established a list of priorities for the development of sectoral strategies, themselves defined by the 2005 Work Programme and a timetable for the Euromed Ministerial Conferences. Due to the cancellation of the Summit as originally planned in 2010, no new Work Programme could be adopted. We will therefore concentrate on sectoral policies for which a ministerial Conference has been held in 2010.

Trade issues

See Part II of this study.

Tourism

In accordance with the decisions taken at the first Ministerial Conference in Fes in April 2008, a second conference was held in Barcelona in May 2010. To reach the objective to “cooperate to enhance the impact of tourism on job creation, infrastructure development and cultural understanding while ensuring economic, social and environmental sustainability ». A Work programme should have been presented at the occasion of this second Conference. However this was not the case, as Ministers postponed this presentation for the next meeting planned in Cyprus in 2012. Note that in the Final Declaration[74], the term “cooperation” is no longer used and was replaced by “best practices, common projects, experts and expertise” in the field of sustainable tourism. To this end, Ministers welcome “public and private initiatives” that “foster flow in the Euro-Mediterranean Region, promote the development of sustainable and ethical tourism activities in Euro-Mediterranean region and take measures to support the development of R&D, life-long learning, training and investments in tourism”. They invited the Euro-Mediterranean Partners to present projects to the Secretariat of the Union for the Mediterranean. It should also be noted that the issue of illegal tourism in Occupied Territories was debated at this occasion.

Employment

At the Second Euro-Mediterranean Ministerial Conference on Employment and Labour held in Brussels on 21-22 November 2010[75], Ministers reviewed the progress made in the implementation of the Framework for Actions elaborated during the first Conference in 2008 and set nine new priorities to strengthen it.

1. Boosting employment creation to avoid a jobless recovery in particular through support of micro, small and medium sized enterprises and the provision of micro-credit facilities;

2. Enhancing decent work opportunities through an integrated approach based on economic, fiscal and social policies;

3. Tackling high youth unemployment and under-employment enhancing education systems, reducing the school drop-out rate, vocational guidance and the modernisation of apprenticeship opportunities;

4. Enhancing women’s participation in economic and social life;

5. Skills development matching the changing needs of labour markets enhance the quality of education, develop attractive vocational training and to complement it with effective incentives for life-long learning, also allowing for a new role for companies;

6. Enhancing the capacity of public employment services through the exchange of best practices;

7. Prioritizing poverty alleviation, the role of NGOs should be strengthened in this context;

8. Modernising social protection and developing a social protection floor, to ensure adequate income support and access to healthcare and made sustainable;

9. Promoting effective social dialogue and cooperation between employers and social partners This dialogue could be extended to civil society.

At regional level, Ministers call for an enhanced policy dialogue and the implementation of “concrete actions”.

This so called “enhanced policy dialogue” could be based on five axes:

1 Promote networking between experts on employment issues. Note that the creation of a Euro-Mediterranean Observatory for Health and Safety at Work is envisaged;

2. Encourage partners to take leadership for thematic initiatives and reinforce bilateral cooperation, such as conferences on specific topics (as Morocco and France in the field of vocational training management);

3. Promote social dialogue at the regional level, through the annual Euro-Mediterranean Social Dialogue Forum. This Forum held its first meeting in Barcelona in March 2010[76] and is called to contribute to the implementation of the Framework for Actions;

4. Encourage the Union for the Mediterranean Secretariat to improve coordination among donors, including donors from the private sector, with a view to promoting projects on the employment and social dimension;

5. Make use of available expertise from the European Training Foundation as well as from the bilateral, regional or multilateral institutions and highlight the importance of continued cooperation with international organisations.

The Third Euro-Mediterranean Ministerial Conference on Employment will be convened in 2012.

Gender Equality

During the second Ministerial conference on “Strengthening the Role of Women in Society” which took place on 11th and 12th November 2009 in Marrakesh[77], progress in the Common Framework of actions (2006-2011) adopted in Istanbul was reviewed. Recognising that “important efforts” remained, Ministers underlined the need to adopt concrete actions in the fields of political and civil rights, economic rights and cultural and social rights. “In the same spirit, they reiterated the opportunity to integrate civil, political, social, economic and cultural rights of women in the programme of the Euro-Mediterranean dialogue, including in the framework of the Association Agreements, the European Neighbourhood Policy action plans and in the programmes and projects set up by the EU. They also underlined the need to ensure consistency between the various regional initiatives and the bilateral co-operation projects with the EU”[78].

Referring to the Declaration of the Paris Summit for the Mediterranean, Ministers “encourage Partners to come forward with concrete projects” and welcome that new projects have been proposed by different Partners for the Union for the Mediterranean, namely :

– The Foundation of Women for the Mediterranean (France, Lebanon, Jordan, Morocco);

– Educational and Training project for vulnerable girls and women (Jordan);

– Women Safety project for vulnerable girls and women(Jordan);

– Women Empowerment and Protection Media Network (Jordan);

– ICT for Poverty Reduction (Egypt);

– Centre for the Political Empowerment of Women (Egypt).

It should be noted that Ministers “propose to integrate gender equality as one of the priority project areas of the Union for the Mediterranean framework. To this end, Ministers will promote initiatives on voluntary and coordinated financing of projects on strengthening of the role of women in society”[79].

At the regional level, the Programme ”Promoting gender equality between men and women in the Euro-Mediterranean” is implemented since 2008 and for three years (until May 2011). This programme, financed in the framework of ENPI, aims at supporting the existing dynamics to promote gender equality and ensure the follow-up to the Istanbul Ministerial Conclusions[80]. It is also necessary to mention the EU Plan of Action on Gender Equality and Women’s Empowerment in Development 2010-2015[81].

The objective of a Free Trade Area for 2010: Sate of play and prospects within the framework of a globalised trade context

The Euro-Mediterranean Free Trade Area in the context of a proliferation of preferential trade agreements concluded by the EU

Originally planned to counterbalance the implementation of North American Free Trade Agreement (NAFTA – January 1994), the idea of an Euro-Mediterranean Free Trade Area (FTA) is presented in November 1995 in Barcelona as being one of the main objectives of the new Euro-Mediterranean Partnership (EMP). It should be understood that the FTA allowed the EC and its Member States to enter into new preferential agreements in accordance with article XXIV of GATT, a real legal obligation with the creation of the WTO in Marrakesh and the establishment of a new dispute settlement body. The Barcelona Declaration is very clear in this regard: “The free-trade area will be established through the new Euro Mediterranean Agreements and free-trade agreements between partners of the European Union. The parties have set 2010 as the target date for the gradual establishment of this area which will cover most trade with due observance of the obligations resulting from the WTO.”

The basic idea was to gradually create an extensive network of bilateral free trade areas and customs union composed of :

i) 8 bilateral FTAs with Morocco, Algeria, Tunisia, Egypt, Jordan, Lebanon, Syria and the Occupied Palestinian Territories;

ii) strengthening of the former partial FTA with Israel;

iii) the Customs Union with Turkey (FTA bilateral agreements were to be concluded between Turkey and Arab countries);

iv) horizontal free trade agreements between the Arab Mediterranean countries et between them and the EEA countries and if possible with candidates for EU membership.

Today, it is clear that since 1995, the conclusion by the EC and its Member States of association Agreements (or others)[82] establishing free trade areas has increased. In addition, the granting of such agreements is no longer restricted to the neighbours of the EU. To realise this, it is sufficient to consult the following tables regularly updated by the DG Trade of the European Commission and covering the preferential trade agreements notified to the GATT (Article XXIV)[83].

Table 1 : Customs Union

Partners  OJ Reference  Date of entry into forceDate of notification to GATT/WTO  Status of GATT/WTO examinationComments
AndorraL/374, 31.12.9001.07.9125.02.98Factual examination concludedExchange of Letters.
TurkeyL/35, 13,02.9631.12.9522.12.95Factual examination concludedDecision 1/95 of the EC Turkey Association Council.  
San MarinoL/359, 09.12.9201.12.92  Interim agreement, pending entry into force of Customs Union also signed on 16.12.91. MFN exemption for customs regime with Italy recognised by the GATT Havana Conference.  

Table 2 : Free Trade Areas

Europe

Partners  Nature of agreementOJ ReferenceDate of entry into forceDate of notification to GATT/WTOStatus of GATT/WTO examinationComments
Faroe Islands .Free Trade AgreementL/53, 22.2.9701.01.9719.02.97Factual examination concludedReplaces earlier (1991) trade agreement
NorwayFree Trade AgreementL/171, 27.06.7301.07.7313.07.73Working Party report adopted 
IcelandFree Trade AgreementL/301, 31.12.7201.04.7324.11.72Working Party report adopted 
SwitzerlandFree Trade AgreementL/300, 31.12.7201.01.7327.10.72Working Party report adoptedFTA also covered Liechtenstein, which now participates in EEA.
The former Yugoslav Republic of MacedoniaStabilisation and Association Agreement (SAA)  L/084, 20.03.04 L/085, 23.03.04 C/213e, 31.07.01  01.05.0423.10.01Factual examination concludedProvisions first applied under Interim Agreement
Croatia .Stabilisation and Association AgreementL/26, 25.01.0501.02.0520.12.02Factual examination concludedProvisions first applied under Interim Agreement
Albania  Stabilisation and Association AgreementL 104 24.04.2009 L 300 31.10.2006L 107 28.04.2009  01.04.0907.03.07 (goods) 07.10.09 (services)Factual examination concluded for trade in goods, on going for trade in services  Provisions first applied under Interim Agreement
Montenegro  Stabilisation and Association AgreementL 108 29.04.2010  01.05.10  16.01.08 (goods) 18.06.10 (services)Factual examination ongoing for trade in goods and servicesProvisions first applied under Interim Agreement
Bosnia and HerzegovinaInterim Agreement on trade and trade related mattersL 186 15/07/2008 L 233 30/08/2008 L 169 30/06/2008  01.07.0811.07.08Factual examination ongoing for trade in goodsInterim agreement, pending entry into force of SAA.
Serbia  Interim Agreement on trade and trade related mattersL28/2, 30.01.1001.02.1031.05.2010Factual examination ongoing for trade in goodsInterim agreement, pending entry into force of SAA.

These agreements are of particular importance for the MPCs because they involve several (potential) candidates for accession to the European Union. The accession of Croatia is for instance scheduled for 1st July 2013. The importance, for the MPCs, of the Member countries of the European Economic Area (EEA) and EFTA is obvious together with the specific sectoral agreements concluded with Switzerland, a major trade partner of the EU.

The following table provides an overview of the Euro-Mediterranean agreements including their status at the level of the GATT/WTO examination procedure.

Table 3 : Mediterranean

Partners  Nature of agreementOJ Reference  Date of entry into forceDate of notification to GATT/WTOStatus of GATT/WTO examinationComments
Algeria  Association AgreementL/265, 10.10.0501.09.0524.07.06Factual examination not startedEuro-Mediterranean Agreement replaces cooperation agreement (L/263, 27.09.78) notified to GATT on 28.07.76 (report adopted 11.11.77)
EgyptAssociation AgreementL/345, 31.12.0301.06.0404.10.04WTO consideration on-going.Euro-Mediterranean Agreement; replaces cooperation agreement (L/266, 27.09.78) notified to GATT on 15.07.77 (report adopted 17.05.78)
Israel  Association AgreementL/147, 21.06.0001.06.0020.09.00Factual examination concludedEuro-Mediterranean Agreement; trade provisions initially applied under Interim (1995) Agreement
Jordan  Association AgreementL/129, 15.05.0201.05.0220.12.02Factual examination concludedEuro-Mediterranean Agreement, signed on 24.11.97
Lebanon  Interim AgreementL/262, 30.09.0201.03.0304.06.03WTO consideration not started.Euro-Mediterranean Agreement signed on 17.06.02; replaces cooperation agreement (L/267, 27.09.78) notified to GATT on 15.07.77 (report adopted 17.05.78)
Morocco  Association AgreementL/70, 18.03.0001.03.0013.10.00Factual examination concludedEuro-Mediterranean Agreement
Palestinian Authority  Association AgreementL/187, 16.07.9701.07.9730.06.97Factual examination not startedInterim Euro- Mediterranean Agreement
Syria  Co-operation AgreementL/269, 27.09.7801.07.7715.07.77Working Party report adopted 17.05.78Euro-Mediterranean Agreement signed in October 2004. It has not entered into force yet.
Tunisia  Association AgreementL/97, 30.03.9801.03.9823.03.99Factual examination concludedEuro-Mediterranean Agreement

Only four Euromed Association Agreements were reviewed until now, the factual examination being completed with Tunisia, Morocco, Jordan and Israel. For the others partners, the examination has not yet started. One should note that in the case of Syria, it is the « cooperation agreement » in its old version.

It should be noted that at international level, the regional economic Pan-Euro-Mediterranean integration is important. As pointed out by Jo-Ann Crawford and Roberto Fiorentino « The other major cluster of RTAs [regional trade agreements] is the one consisting of preferential agreements between developed and developing countries. The EU and the EFTA States account for over half of these RTAs through the Euro-Mediterranean agreements with partner countries in North Africa and the Middle East and several other bilateral agreements with countries such as Chile and Mexico. The United States is catching up having rapidly concluded several RTAs with developing country partners and with several more on its negotiating agenda”[84]. The table below contains the preferential agreements with Chile, Mexico but also with countries of Africa, Caribbean and Asia.

Tableau 4 : Others

Partners  Nature of agreementOJ ReferenceDate of entry into forceDate of notification to GATT/WTOStatus of GATT/WTO examinationComments
Chile  Association Agreement, and Additional ProtocolL/352, 30.12.02 L/38, 10.02.05  01.02.03 (trade) 01.03.05 (full)  03.02.04Factual examination concludedAssociation Agreement signed in November 2002
Mexico  Economic Partnership, Political Coordination and Cooperation AgreementL/276, 28.10.00 L/157, 30.06.00 L/245, 30.09.00  01.07.0025.07.00Factual examination concludedDecision 2/2000 on EC Mexico free trade area in the context of global agreement signed in December 1997
South Africa  Trade, Development and Co-operation AgreementL/311, 04.12.9901.01.0002.11.00WTO consideration ongoing.Under an Exchange of Letters, the provisions establishing an FTA in Goods are applied provisionally from 01.01.00 pending entry into force of the full agreement.
CARIFORUM States[85]Economic Partnership Agreement  L/289, 30.10.08Pending16.10.08WTO consideration ongoing.Succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Date of signature: 15 October 2008 (Haiti signed on 11 December 2009)
Ivory CoastInterim Economic Partnership AgreementL/59, 03.03.09Pending11.12.08WTO consideration ongoingAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Date of signature: 26 November 2008
Cameroon  Interim Economic Partnership AgreementL/57, 28.02.09Pending24.09.09WTO consideration ongoingAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Date of signature: 15 January 2009
Korea, Republic of.Free Trade AgreementL/127, 14.05.11Pending7.07.11PendingThe FTA is provisionally applied since 1 July 2011

If the above table summarises the current situation, the following give a very clear idea of the turmoil of the map of preferential agreements to be concluded by the EU in the months and years ahead.

Table 5 : EPAs under preparation

PartnersNature of agreementComments
EAC (Burundi, Kenya, Rwanda, Tanzania, Uganda)Interim Economic Partnership AgreementAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Negotiations on a more comprehensive Economic Partnership Agreement ongoing
ESA (Comoros, Madagascar, Mauritius, Seychelles, Zambia, Zimbabwe).Interim Economic Partnership AgreementAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Signed on 29 August 2009 by Mauritius, Seychelles, Zimbabwe and Madagascar. Negotiations on a more comprehensive Economic Partnership Agreement ongoing
Pacific (Papua New Guinea, Fiji).Interim Economic Partnership AgreementAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Papua New Guinea signed on 30 July 2009. Fiji signed on 11 December2009. Negotiations on a more comprehensive Economic Partnership Agreement ongoing
SADC (Botswana , Lesotho, Namibia, Mozambique, Swaziland)Interim Economic Partnership AgreementAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Botswana, Lesotho, Swaziland and Mozambique signed in June 2009. Negotiations on a more comprehensive Economic Partnership Agreement ongoing
West Africa (Ghana) .Interim Economic Partnership AgreementAgreement on trade in goods which succeeds the trade provisions of the Cotonou Agreement which expired on 31 December 2007. Negotiations on a more comprehensive Economic Partnership Agreement ongoing

Table 6 : FTA Negotiations

Far East

CountryNegotiating DirectivesCurrent StatusNext Steps
IndiaNegotiating authorisation and directives of April 2007Negotiations launched in June 2007, 11 rounds held, last one in November 2010, followed by a number of intersessional meetings including chief negotiators meetings and meetings at Director General level. Negotiations are currently in an intense phase focusing on the hard core issues but work remains to be done. Important issues include market access for goods (improve coverage of both sides’ offers), the overall ambition of the services package and achieving a meaningful chapter on government procurement.Joint commitment expressed at the EU-India Summit on 10 December to intensify the negotiations with a view to concluding swiftly if possible. A number of meetings has thus been scheduled for the coming months.
SingaporeBased on 2007 ASEAN negotiating directives (see below).In December 2009, EU Member States agreed that the Commission should start bilateral FTA negotiations with Singapore. A consultation of stakeholders is completed. Negotiations were launched in March 2010 and the seventh negotiating round has taken place in the week of 6 June 2011.EU Trade Commissioner De Gucht and Singapore’s Minister of Trade and Industry, Lim, met on 15 July 2011. They noted good progress in FTA negotiations and agreed to intensify work on the outstanding issues. Both sides expect to complete negotiations later this year. The 8th negotiating round is foreseen for the week of 10 October 2011.
MalaysiaBased on 2007 ASEAN negotiating directives (see below).On 10 September, EU Member States agreed that the Commission could start FTA negotiations with Malaysia. The negotiations were officially launched in Brussels on 5 October 2010. A consultation of stakeholders is completed. The fourth round of FTA negotiations took place in Kuala Lumpur in July 2011.The fifth in Brussels 18 – 21 October; the sixth round in Kuala Lumpur 7-11 February 2012.
ASEAN  Negotiating authorisation and directives of April 2007.Negotiations with a regional grouping of 7 ASEAN countries launched in July 2007. 7th Joint Committee in March 2009 agreed to “take a pause” in the regional negotiations.In December 2009, EU Member States agreed that the Commission will pursue FTA negotiations in a bilateral format with countries of ASEAN. Negotiations with Singapore and Malaysia were launched in 2010. The Commission continues exploratory informal talks with other individual ASEAN members with a view to assessing the level of ambition at bilateral level. Vietnam has given a political signal that it is ready to engage in a bilateral FTA with the EU and are ongoing.

It should be stated here that, today, India has become a major trading partner of the European Union. The conclusion of the FTA will thus certainly have an impact on the Euromed trade relations, not least in terms of the share of Mediterranean countries in the total of EU international trade exchanges.

North America

CountryNegotiating DirectivesCurrent StatusNext Steps
CanadaNegotiating directives obtained in April 2009Negotiations were launched in May 2009 and the content of the CETA (Comprehensive Economic and Trade Agreement) and its general modalities were agreed in June 2009. Eight negotiating rounds have been held (in October 2009, January, April, July and October in 2010 and January, April and July 2011). The last one took place in Ottawa on 11-15 April 2011. Good progress has been made.A ninth round is foreseen for 7-21 October 2011

It should be remember that there is no basic agreement today between the EU and the United States. Mexico, however, a member of NAFTA, has a free trade area with the EU and Canada is in negotiations to conclude such an agreement. This is a great importance for countries such as Israel, Morocco and Jordan which have concluded FTAs both with the United States and the EU.

Latin America

CountryNegotiating DirectivesCurrent StatusNext Steps
ANDEAN Community Negotiations for a multiparty trade agreement (MTA) with Colombia and Peru were concluded in February 2010. Contacts are maintained to explore the possibility to include Ecuador in the MTA.– Initialling of the Agreement took place on 13 April – Commission proposal for signature of the Agreement is being finalised.
Central America The negotiations with Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) for an Association Agreement including an FTA pillar were concluded in May 2010. The legal and linguistic review of the text of the Agreement negotiated with Central America has been finalised.– The agreement was initialled on 22 March. – Translation and preparation of Commission proposal for signature of the Agreement is ongoing
MERCOSURNegotiating Directives of 1999Negotiations with Mercosur were officially relaunched at the EU-Mercosur summit in Madrid on 17 May 2010. Six negotiation rounds (the last one from 04-08 July) have taken place since then. Until now, rounds have focused on the normative part of the agreement.The next rounds of negotiations are scheduled in Montevideo (07 -11 November) and in Brussels (March 2012). The parties are working on the preparation of their market access offers.

East Europe

CountryNegotiating DirectivesCurrent StatusNext Steps
Ukraine Negotiations launched in February 2008, 17 rounds held so far. Last one took place 20-24 June 2011 in Kiev. Good progress in a lot of areas.18th round of negotiations will take place in 19-23 September in Brussels.

Source: European Commission, DG Trade, Overview FTA and other trade negotiations, 14 September 2011, http://trade.ec.europa.eu/doclib/docs/2006/december/tradoc_118238.pdf

The agreement with Ukraine is of great importance for the MPCs as it will be the first neighbourhood association agreement aimed at establishing a “a deep and comprehensive free trade area” (DCFTA; See below).

The conclusion is that the economic and commercial context in 2010 is very different from the 1995 one. The proliferation of preferential regional agreements between the EU and the world must be taken into account in the second phase of the Euro-Mediterranean integration process, that is the transition of a partial free trade area (mainly industrial goods) to deep free trade areas covering agriculture and services as well as advanced legislative harmonisation in technical no-tariff barriers to trade (standards, certification and conformity assessment, rules of origin, etc.).

However, one must be aware that the Mediterranean partners are not all in the same situation in terms of the implementation of their EMAA. The next section will thus address this specific issue.

Current Status of the FTA in 2010 and ongoing negotiations

It is possible to establish a first state of play of the implementation of the Euromed FTA taking into account the date of the entry into force of the Euro-Mediterranean Association Agreements (EMAA) and adding the 12 years corresponding to the duration of the tariff dismantling foreseen in the EMAA. Of course, this can only be a first indicative item as everything depends on the effective implementation of the provisions of the agreement by each partner.

Table 7 : Euro-Mediterranean Association Agreements : Status  on  31 December 2010

(See also the above table on the notification of the agreements to the WTO)

CountryStatusDate signedEntry into force+ 12 years
AlgeriaSignedApril 2002September 2005Sept. 2017
EgyptSignedJune 2001June 2004June 2016
IsraelSignedNov 1995June 2000June 2012
JordanSignedNov 1997May 2002May2014
LebanonSignedJune 2002April 2006April 2018
MoroccoSignedFeb 1996March 2000March 2012
Palestinian AuthoritySigned (Interim Agreement)Feb 1997July 1997July 2009
SyriaInitialled (December 2008)   
TunisiaSignedJuly 1995March 1998March 2010  

Source: http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/euromed/

The situation is clear enough, only Tunisia (that signed his Euromed agreement even before the Barcelona Conference was held) and the Palestinian Territories (the Interim Agreement provides an FTA but the reality is still very far from a normalised situation) had a tariff dismantling schedule likely to meet the 2010 target date. Morocco was not far from reaching the deadline while Israel, which already implemented the provisions of a partial free trade agreement since 1975, is not to be compared to other MPCs. The rest of the tariff dismantling process will continue to run until 2018.

In November 2010, DG Trade of the European Commission made a brief overview on the symbolic date set by the Barcelona Declaration, highlighting the following:

i) “The EU is the first trade partner for Southern Mediterranean countries, representing its first source of imports and its largest market for exports. Euro-Mediterranean total trade was almost €200 billion in 2009 (EU exports to Southern Mediterranean countries: €114 billion; Southern Mediterranean countries exports to the EU: €86 billion) – representing almost 10% of total EU external trade, and more than 40% of total Southern Mediterranean trade Between 2004 and 2008, Southern Mediterranean exports to and imports from the EU have grown by an average of, respectively, 11% and 8% a year. In 2009, trade registered a strong contraction in account of the impact of the global crisis (-20% compared to 2008), but in the first quarter of 2010 the trend has recovered”;

ii) “Deepening South-South economic integration is an essential element towards the establishment of a fully-fledged Euro-Mediterranean Free Trade Area and to increase the economic potential for the Southern Mediterranean region as a whole. Southern Mediterranean partners are in the process of setting up a network of free trade agreements amongst each other. This will not be concluded by 2010, despite progress made in recent years. The Agadir Agreement (Tunisia, Morocco, Jordan, and Egypt) has been in place since 2007 and open to other Arab Mediterranean countries. In addition, a number of free trade agreements have been concluded by Israel and by Turkey with Southern Mediterranean partners and other free trade agreements are being negotiated”[86].

Regarding the economic situation of the MPCs in 2010, the FEMIP Report, for that year, underlines that economic activity has “strengthened progressively” and that “all the countries in the region recorded robust growth. The recovery was driven by the pick-up in both external and domestic demand, underpinned by supportive monetary and fiscal policies. However, growth was less vibrant than in other emerging and developing countries. Moreover, it has so far been unable to make a dent in unemployment, witch remains the most daunting development challenge for the region”.[87]

In a more general way, most of the assessments on the economic integration aspect are relatively mitigated. Indeed, the South-South trade dimension remains a major concern. If the Agadir Agreement (Tunisia, Morocco, Jordan and Egypt) and the agreements establishing a FTA between Turkey and some Arab Partners[88] were welcomed, much remains to be done at this level.[89] Theconclusions of the 8th Euro-Mediterranean Ministerial Trade Conference stressed in this regard “the importance of completing by 2010 (or shortlythereafter) the network of free trade agreements between Turkey and Southern Mediterranean countries was highlighted. The implementation of the Agadir Agreement between Morocco, Tunisia, Jordan and Egypt has shown an increase of trade flows amongst the partners, although there is still potential. Ministers stressed the importance of fully implementing this agreement, which remains open to other eligible Mediterranean partners, and to reinforce actions to tackle non tariff obstacles to trade and to ensure that business is aware of the opportunities offered by this agreement ».[90]

At the North-South level, integration has been ongoing since the launch of the regional negotiations on the liberalisation of trade in services and right of establishment in 2006 following the Ministerial Conference in Marrakesh. Following the 2007 Lisbon Ministerial Conference, bilateral negotiations were launched in 2008 with Egypt, Israel, Morocco and Tunisia and other MPCs afterwards (See the table hereinafter). The implementation of the “Euromed Trade Road Map beyond 2010”, adopted by the December 2009 Trade Ministers meeting in Brussels also clarified a number of questions (See below). Bilateral negotiations in the field of agricultural, processed agricultural and fisheries products will continue as well as in the following technical areas :

i) sanitary and phytosanitary issues;

ii) the establishment of  dispute settlement mechanisms for the trade provisions of the EMAA;

iii) Bilateral Agreements on Conformity Assessment and Acceptance of industrial products (ACAAs). Note that they will allow free movement of industrial products in specific sectors through mutual acceptance of conformity certificates. The ACAAs aim to cover all sectors where the legislation is harmonised at EU level. A partner having reached that stage would in fact become part of a free trade area for industrial products between the EU, the EEA and Turkey. »[91]

DG Trade of the European Commission summarizes the general situation in the Maghreb and Middle East as follows[92]:

  1. “Progress made especially on North-South relations: the network of Association Agreements has been established, with the only exception of Syria, though the coverage of these Agreements is essentially limited to trade in goods.
  2. Negotiations on the liberalisation of trade in services and establishment : Discussions in 2006-2007 took place at regional Euro-Mediterranean format. In 2008, bilateral negotiations started with Morocco, Egypt, Tunisia and Israel.
  3. Negotiations on further liberalisation for agricultural, processed agricultural and fisheries products : Negotiations were concluded with Jordan in 2005, Israel and Egypt in 2008, and Morocco in 2009 (agreement signed in 2010). They continue with Tunisia.
  4. Dispute Settlement Mechanism :Negotiations concluded with Tunisia, (agreement signed in December 2009), Lebanon (signed in 2010), Jordan (initialled in December 2009), Morocco (signed in 2010) and Egypt (signed in 2010). They are ongoing with other Mediterranean partners (Israel and Palestine) and the aim is to conclude the remaining bilateral protocols as soon as possible.
  5. Negotiations on Agreements on Conformity Assessment and Acceptance of Industrial Products (ACAA): Agreement signed with Israel in May 2010 in the pharmaceutical sector. Preparations are on-going to launch negotiations in the near future with other Southern Mediterranean partners.
  6. Bilateral negotiations have been launched to complement the current trade agreements, particularly on the liberalisation of services and establishment and on the dispute settlement mechanism. Further negotiations to deepen the existing Association  Agreements on trade-related regulatory areas are foreseen in the future in the Euromed Trade Roadmap beyond 2010, which was generally endorsed at the 8th Union for the Mediterranean Trade Ministerial in Brussels on 9 December 2009” (See below).

The following table summarises the situation country by country.

Table 8 : Euromed by country

Partner CountriesCurrent StatusNext Steps
EgyptNegotiations were concluded in June 1999. The Association Agreement was signed in June 2001. The trade provisions entered into force provisionally on 1 January 2004 and the whole Association Agreement entered into force on 1 June 2004. Agriculture negotiations have been concluded in 2008, and the Agreement entered into force on 1 June 2010. DSM protocol signed in November 2010.Bilateral negotiations on the liberalisation of trade in services and establishment are under way.
IsraelAssociation Agreement signed in November 1995 and entered into force in June 2000.  Agri negotiations have been concluded in 2008. Conformity Assessment and Acceptance of Industrial Products (ACAA) Agreement signed with Israel in May 2010 in the pharmaceutical sector.Bilateral negotiations on the liberalisation of trade in services and establishment and on DSM are under way.
JordanAssociation Agreement signed in November 1997 and entered into force in May 2002. Agri negotiations concluded in 2005. DSM protocol initialled in December 2009.Services and establishment negotiations in regional mode.
LebanonConcluded in January 2002. Association Agreement signed in June 2002, Interim Agreement entered into force on 1 February 2003. AA Entered into force in April 2006. DSM protocol signed in November 2011.Services and establishment negotiations in regional mode. Agri negotiations not yet started.
MoroccoAssociation Agreement signed in February 1996 and entered into force in March 2000. Agriculture negotiations concluded in December 2009 and agreement signed in December 2010. DSM protocol signed in December 2010.Bilateral negotiations on the liberalisation of trade in services and establishment continue. Further negotiations to deepen the current Association Agreement on Agreements in trade-related regulatory areas will be launched as soon as there is substantial progress in the above negotiations.
AlgeriaAssociation Agreement signed in April 2002 and entered into force in September 2005.No additional negotiations on agricultural, processed agricultural and fisheries products, liberalisation of trade in services and establishment of DSM protocol.
Occupied Palestinian TerritoryAssociation Agreement signed in February 1997. Interim Agreement entered into force in July 1997.Services and establishment negotiations in regional mode and on DSM under way. Agri negotiations not yet started.

Source : European Commission , DG Trade, http://trade.ec.europa.eu/doclib/docs/2006/december/tradoc_118238.pdf

The “deep and comprehensive FTA” and the  Economic community  between the EU and its ENP partners

The long term objective, in terms of economic integration, was proposed in 2006 by the European Commission as being the creation of an« Economic community between the EU and its ENP partners »[93]. This was confirmed by the Communication of the 25th May 2011« A new response to a changing Neighbourhood ».

The Agreement with Ukraine (see table 6) is of great importance for the MPC as it will be the first neighbourhood association agreement aimed at establishing a “deep and comprehensive Free Trade Area”(DCFTA) which should serve as a reference for similar agreements with four other countries of Eastern Partnership. The European Commission states in this regard that « Association Agreements (AAs), most of which include DCFTAs, offer each Eastern Partnership country the opportunity to choose the level of ambition it wishes to pursue in driving forward integration and reform. With sustained commitment and support by the EU, partner countries can use the Agreement for regulatory and institutional convergence. They include alignment with EU laws, norms and standards leading progressively to economic integration in the internal market. »[94]

Beyond the simple free trade, the objective is to focus on more technical aspects. The Communication on the revision of the ENP states that the current strategy consist in “regulatory convergence in areas that have an impact on trade, in particular sanitary and phytosanitary rules (SPS), animal welfare, customs and border procedures, competition and public procurement.[…] For the most advanced partners, a DCFTA can lead to a progressive economic integration with the EU Internal Market. Through progressive approximation of EU rules and practices, DCFTAs require a high degree of commitment to complex and broad-ranging reforms. This requires strong institutional capacity. The reforms can be politically challenging and require the involvement of the business community as well as other interested parties.[…]In the shorter term, for those partners not ready or willing to embark on DCFTA negotiations, other measures can be taken to boost and facilitate trade. »[95]

However, analysts are again divided, Cremed states for instance that « A deeper integration that brought MED countries’tariffs and non-tariff barriers into line with those of EU countries would have a ripple effect on trade between the two blocs. However, there is little hope of substantially increasing trade amongst MED countries themselves, primarily due to the low level of complementarity between their trade structures and their low GDPs. Some authors have argued that even if the trade barriers (tariff or non-tariff) were dramatically reduced, given their current GDP growth rates, MED countries would take some 40 years to reach their full trade potential with the EU. Trade barriers (both formal and informal) are particularly important. For example, in some countries, certain goods are subject to quotas, in particular, consumer goods that compete with local goods. Additionally, the public sector has a monopoly on the import of certain goods through State-owned companies or State boards of trade. Import processes are extremely complicated due to technical inspections and customs clearance procedures. These inspections are sometimes conducted in order to ensure that imported goods comply with sanitary and safety regulations. »[96]

It is not possible to deal here with all the issues related to the deep and comprehensive free trade area. Studies and articles published by the IEMED in 2010, are therefore of special interest in this regard, notably:

– Azzam Mahjoub, « L’impact potentiel de la Zone de libre échange euro-méditerranéenne dans les économies du sud et de l’est de la Méditerranée : un essai d’évaluation », IEMED EU ISS, April 2010, http://www.iemed.org/publicacions/10papers6w.pdf

– Ivan Martin, « Intégration économique en Méditerranée : au-delà de la zone de libre-échange » 2010, IEMED, Mediterranean Yearbook 2010, http://www.iemed.org/anuari/2010/farticles/Martin_Ingration_fr.pdf

-Alfred Tovias, “A Deeper Free Trade Area and Its Potential Economic Impact”, 10 Papers for Barcelona 2010, IEMED EU ISS, September 2010, http://www.iemed.org/publicacions/10papers10.pdf

The FEMIP, the issue of a Euro-Mediterranean Bank and the Inframed Infrastructure Fund

The FEMIP in 2010

According to the FEMIP Annual Report, 2010 is a “record year”[97]. The key figures in this report are:

– EUR 2.6 billion was invested by FEMIP in the Mediterranean partner countries, 60% more than in 2009;

– 18 projects benefited from FEMIP financing and private equity operations in the energy, transport, water, industrial human capital and health sectors;

– 43% of the total financing was dedicated to the private sector and 57% to the public sector;

– EUR 1.3 billion was disbursed, a tangible indicator of the implementation of investment projects on the ground;

– EUR 14.2 million was allocated to technical assistance operations, helping promoters in the day-to-day management of their projects.”

The following table summarises the operations signed in 2010.

Table 9: Operations signed by EIB in 2010

CountriesTA operationPromoterContract volume EUR ‘000
EgyptEgyptian Power Transmission Project (EPTP) – Short-term technical advisor  COWI195
JordanConsultancy services for the feasibility study on the Miyahuna operations support project  Hashemite Kingdom of Jordan180
MoroccoHealth project – Organisational aspect Ministry of Health of Morocco1 924
SyriaTechnical assistance for the implementation of the Syrian municipal and environment infrastructure project  Ministry of Local Administration and Environment3 907
SyriaSupport for the Project Implementation Unit (PIU) of the Deir Ali II Power Plant project  Public Establishment for Electricity Generation and Transmission3 606
TunisiaStudy into updating of Greater Tunis’s sanitation master planSewerage National Office1 163
TunisiaTechnical assistance to Société Tunisie Autoroutes (STA)STA915
Total  11 890

Source : European Investment Bank, «FEMIP  2010 Annual Report », p. 69, http://www.eib.org/attachments/country/femip_annual_report_2010_en.pdf

As the EIB document was published in December 200 and is entitled  « Union for the Mediterranean – Role and vision of the EIB » it underlines that « in accordance with the targets of its operational plan, FEMIP will continue to finance the UfM’s priority projects during the period 2010-2012 and strengthen its commitment on a political level through close collaboration with the UfM’s Secretariat in Barcelona, to which two EIB employees will be seconded. The EIB’s main remit will be to evaluate the “bankability” of the UfM’s projects and ensure coordination among multilateral and bilateral institutions active in the region. »[98] It must be remembered that “FEMIP’s participation in the UfM’s projects quickly became one of the EIB’s pillars of action in the Mediterranean partner countries. As soon as 2009, 80% of funding concerned the priorities set out in the Paris Declaration of July 2008 and in the conclusions of the meeting of Foreign Affairs Ministers in November 2008 in Marseille”. [99]

The issue of the Euro-Mediterranean Bank

The issue of the creation of a Euro-Mediterranean Bank is not new. It comes back regularly on the table of negotiations. In August 2010, a committee of experts was commissioned by Nicolas Sarkozy to work on the financing of the Union for the Mediterranean. According to the report presented by Charles Milhaud[100], they are three options: the creation of an ex nihilo Bank, requiring a significant capital raising, or the creation of a Euro-Mediterranean Bank, based on existing structures, in this case the European Investment Bank (EIB) become a shareholder at 35 to 50%. Last option: the creation of a Mediterranean public fund. The Commission is in favour of the second option as “this new institution would focus on supporting the private sector, in particular through assistance for long-term financing, helping SMEs gain access to bank credit, developing guarantees, stimulating financial markets, supporting innovative investment funds and transferring financial technology through technical assistance. It would also assume the areas of activity of the FEMIP in order to ensure operational consistency with the EIB.”

The report acknowledges that “the proposed solution (Option 2) is ambitious. It is however, fundamentally justified according to the Working Group, since it is the only option suited to deal with the full extent of the challenges posed by the need for accelerated growth in the countries of the Southern Mediterranean. Historically, efforts aimed at regional integration have always been accompanied by the creation of a financial “spearhead”, as was the case for the European Union with the EIB, and then the EBRD. The Working Group therefore feels that a Union for the Mediterranean with no dedicated financial instrument would find itself significantly hampered in its work.”

These options were originally intended to be presented at the second Summit of Heads of State and Government of the UfM.

The Inframed Infrastructure Fund

On 26th May 2010, Caisse des Dépôts (CDC), Cassa Depositi e Prestiti (CDP), the European Investment Bank (EIB), Caisse de Dépôt et de Gestion (CDG) and EFG Hermes have launched « InfraMed Infrastructure ».[101] This InfraMed fund is “dedicated to investments in infrastructure in the Southern and Eastern Mediterranean region. With initial commitments of EUR 385 million, the new fund is targeting commitments of EUR 1 billion”[102]..This fund “providing funding to sustainable urban, energy and transport infrastructure projects on the Southern and Eastern shores of the Mediterranean”. “The Fund will invest primarily in Greenfield projects, compliant with minimum requirements with respect to environmental protection, social impact, transparency and procurement, and with a view to generally holding investments over a longer term than traditional private equity infrastructure funds, the Company being rooted in a philosophy of long term economic return.”

The main features of Inframed are:

  1. A round table based on the North/South Partnership;
  2. An investment strategy promoting sustainable development;
  3. A fund with a regional focus;
  4. A governance structure that combines independence of the management team and takes into account the institutional nature of long-term major sponsors (« InfraMed Infrastructure SAS », Investors Board and Strategic Board, « InfraMed Management SAS »)[103].

The original timetable was the following:

– First closing of the Fund in Paris on 26 May 2010, shortly before the Union for the Mediterranean Forum in Barcelona (7 June 2010);

– Creation of local funds, InfraMaroc and InfraEgypt, by 26 February at the latest;

– Final closing of InfraMed Infrastructure : 18 months after launch date at the latest.[104]

Unfortunately, the uncertainties of the UfM have somewhat disrupted this timetable. However, this is one of the first answers about the new funding specific to the UFM.

Meetings of the Ministers of Economy and Trade of the Union for the Mediterranean

The 8th Trade Ministerial Conference of the Union for the Mediterranean(9 December 2009)

The 8th Trade Ministerial Conference of the Union for the Mediterranean, held in Brussels on 9th December 2009[105] led to the adoption of particularly important conclusions.

Regarding the liberalisation of trade on services and establishment, Ministers stressed « the need to accelerate negotiations while maintaining a high level of ambition in all four modes of supply given their expected benefits in terms of increased investments in the Euro-Mediterranean region ». Regarding the issue of the rules of origin, Ministers « welcomed the significant progress made by the Pan-Euro-Med working group concerning the single regional convention on preferential rules of origin for the Pan-Euro-Mediterranean area, which will replace the current network of protocols, will allow the inclusion of the Western Balkans into the Pan-Euro-Mediterranean system and will pave the way for the simplification of Pan-Euro-Mediterranean rules of origin ».

But more important is, the already mentioned, Euromed Trade Roadmap beyond 2010 which was approved at the Ministerial meeting. In summary, the Roadmap « identifies concrete actions that can enhance economic integration and boost Euro-Mediterranean trade and investment by 2010 and considers progressively turning the existing Euro-Mediterranean Association Agreements into deep and comprehensive Free Trade Agreements. ». Ministers stressed « the importance of timely and effectively implementing the actions and measures defined therein », in particular:

i) given the highest priority to « the conclusion of the on-going negotiations »;

ii) implement « the concrete initiatives as soon as possible in 2010 » (in particular the implementation of the trade and investment facilitation mechanism);

iii) remove “non tariff barriers and to include regulatory issues, so as to allow real market access and contribute to a more favourable investment climate.” Ministers expressed their commitment “to the launching beyond 2010 of bilateral negotiations on a package of non tariff and regulatory issues”;

iv) the “network of Free Trade Agreements in the Mediterranean region needs to be completed and subsequently reinforced by moving beyond trade in goods to cover services, investment and regulatory issues”.

Finally, Ministers stressed that “the Roadmap should be a dynamic work programme for the years to come. Ministers have agreed that the Senior Officials Working Group should meet in principle twice a year to monitor the implementation of the Roadmap and propose any necessary adaptation or modification to the Euro-Mediterranean Trade Ministers for decision.”

The Joint Ministerial Meeting of the Union for the Mediterranean ECOFIN and FEMIP ( 18 May 2010)

Ministers of Economy and Finance from countries of both rims of the Mediterranean gathered in Brussels, on 18 May 2010, for a “Euro-Mediterranean ECOFIN meeting held together with a Facility for Euro-Mediterranean Investment and Partnership (FEMIP) Ministerial meeting ».

After an update on the impact of the economic crisis on the Mediterranean countries, Ministers noted that « the stimulus packages implemented in the Euro-Mediterranean region have been instrumental in reducing the crisis impact and in supporting the economic recovery ». They mainly agreed « on the need to design a comprehensive exit strategy from the non-conventional stimulus packages to be implemented ». Moreover, “besides the short term measures”, the idea is to design “a broad agenda of structural reforms essential to realize the regions´ growth potential”. This programme should « remain focused on the four priority areas identified during the 5th Euromed ECOFIN Ministerial Meeting, held in Skhirat, Morocco: (i) improving the business climate –especially for micro, small and medium enterprises- to facilitate firms to invest, create jobs and promote growth; (ii) further liberalizing trade and opening the economy to increase competitiveness, efficiency and productivity; (iii) upgrading public institutions and governance systems; and (iv) consolidating macroeconomic stability”.

At financial level, Ministers specify that the Mediterranean countries “should continue working on ambitious programs to develop financial systems to ensure safe liberalisation and their integration in the global markets”.

Ministers also recalled that “the key role that the Secretariat of the UfM will play translating these objectives into concrete projects visible for citizens. According to its statute, the Secretariat will promote and follow-up on projects, search for funding and implementation partners and work as the focal point for multi-source funding of UfM priority projects”. Finally, regarding the FEMIP, Ministers noted “the need to provide easier access to finance for Micro, Small and Medium Enterprises (MSMES) in the region, taking into account the findings of the feasibility study financed by the FEMIP Trust Fund on the Mediterranean Business Development Initiative, which is another UfM priority project, for which contributions by countries from both rims of the Mediterranean will be done on a voluntary basis”(See below)[106].

The Ninth Trade Ministerial Conference of the Union for the Mediterranean (11 November 2010)

The 9th Trade Ministerial Conference of the Union for Mediterranean was held in Brussels on 11th November 2010[107]. After recalling the need to ensure the respect of the principles and rules of international law concerning the settlements in the Arab Occupied Territories, Ministers, in the framework of the conclusions, stressed the need to work on strengthening the FTA.

Three key issues were highlighted :

Completing ongoing negotiations between the EU and Southern Mediterranean Countries

– At the level of bilateral negotiations on the liberalisation of trade in services and establishment, Ministers noted that progress in 2010 had been limited and reiterated the importance of these negotiations launched in 2008 with Egypt, Israel, Morocco and Tunisia;

– At the level of trade liberalisation of agricultural products,  Ministers encouraged the signature of the agreement with Morocco and the need of launching negotiations with other countries;

– Reinforce the institutional and legal framework for Euro-Mediterranean trade. Here, it is mainly the negotiations on the establishment of a dispute settlement mechanism that has been put forward, Ministers welcoming  the signature of protocols with Egypt and Lebanon;

– Regarding the negotiations on Agreements on Conformity Assessment and Acceptance of Industrial Products (ACAA), Ministers encouraged the launching of negotiations with the largest number of Mediterranean partners in 2011.

Establihing a network of free trade Agreements amongst Southern Mediterranean Countries

In this framework, Ministers welcomed the conclusion of free trade agreements between Lebanon and Turkey in August 2010. Ministers insisted on the need of fully implementing the Agadir Agreement and encouraged the accession of the Palestinian Authority.

Reinforcing the Pan-Euro-Mediterranean system of cumulation of origin

Here, Ministers stressed the need for a rapid conclusion of the regional Convention on pan-Euro-Mediterranean preferential rules of origin.

Two others points were addressed. On one hand, the need to implement new initiatives that can enhance economic integration and boost Euro-Mediterranean trade and investment (were mentioned: the need to establish the Euro-Mediterranean trade and investment facilitation mechanism and the need to fight against piracy and counterfeiting on specific industrial sectors). On the other hand, the perspective offered to the Euro-Mediterranean trade partnership beyond 2010. The accent is put here on non tariff barriers.

Finally, note the Annex 2 on « Working priorities to strengthen Euro-Mediterranean trade relations during 2011 »[108] emphasising five elements:

i) The Euro-Mediterranean trade and investment facilitation mechanism;

ii) Enhanced cooperation with the business community on Euro-Mediterranean trade and investment relations;

iii) Reinforced cooperation in the area of fight against piracy and counterfeiting in the Euro-Mediterranean region;

iv) Enhanced sectoral cooperation.

Bilateral financial cooperation : ENPI, Indicative National and Regional Programmes

The European Neighbourhood and Partnership Instrument (ENPI), adopted in October 2006 and  implemented gradually from 2007[109], allowed to adopt a single set of rules and procedures for all ENP Countries and Russia. Under article 32, this regulation shall apply from 1st January 2007 to 31 December 2013.

It should be noted that Article 1 of the financial regulation states that « Community assistance shall be used for the benefit of partner countries » but that this « Community assistance may be used for the common benefit of Member States and partner countries and their regions, for the purpose of promoting cross-border and trans-regional cooperation ». This is one of the most innovative aspects of the ENPI that allow to combine financial instruments originally intended to EU Member States with financial instruments for external relations.

The objective of the ENPI is to provide « Community assistance for the development of an area of prosperity and good neighbourliness involving the European Union, and the countries and territories listed in the Annex »[110].

Regarding the scope of assistance, it is clear that Article 2 provides a very large number of potential areas of cooperation outlined below :

a) promoting political dialogue and reform;

b) promoting legislative and regulatory approximation towards higher standards in all relevant areas (…) encourage the progressive participation of partner countries in the internal market and the intensification of trade;

c) strengthening of national institutions and bodies responsible for the elaboration and the effective implementation of policies in areas covered in association agreements;

d) promoting the rule of law and good governance ( public administration and the impartiality and effectiveness of the judiciary);

e) promoting sustainable development in all aspects;

f) pursuing regional and local development efforts, in both rural and urban areas;

g) promoting environmental protection, nature conservation and sustainable management (…);

h) supporting policies aimed at poverty reduction

i) supporting policies to promote social development, social inclusion, gender equality, non-discrimination, employment and social protection including protection of migrant workers;

j) supporting policies to promote health, education and training;

k) promoting and protecting human rights and fundamental freedoms;

l) supporting democratisation, inter alia, by enhancing the role of civil society organisations and promoting media pluralism, as well as through electoral observation and assistance;

m) fostering the development of civil society and of nongovernmental organisations;

n) promoting the development of a market economy;

q) ensuring efficient and secure border management;

r) supporting reform and strengthening capacity in the field of justice and home affairs, including issues such as asylum, migration and readmission (…)

s) supporting administrative cooperation;

t) promoting participation in Community research and innovation activities;

u) promoting cooperation between the Member States and partner countries in higher education and mobility of teachers, researchers and students;

v) promoting multicultural dialogue, people-to-people contacts;

w) supporting cooperation aimed at protecting historical and cultural heritage;

x) supporting participation of partner countries in Community programmes and agencies;

y) supporting cross-border cooperation through joint local initiatives to promote sustainable economic, social and environmental development in border regions and integrated territorial development across the Community’s external border;

z) promoting regional and sub-regional cooperation and integration.

This is a very long list. We must therefore refer to the priority actions identified in the ENP Action Plans and Country Strategy Papers (CSP) and National Indicative Programmes (NIP) for each partner.

The financial envelope proposed by the European Commission was originally of 15,33 billion Euros for 2007-2013. Finally, the financial envelope for ENPI is EUR 11,181 billion, broken down as follows:

(a) a minimum of 95% of the financial envelope will be allocated to the country and multicountry programmes referred to in article 6, paragraph 1, point a) i);

(b) up to 5 % of the financial envelope will be allocated to the cross-border cooperation programmes referred to in article 6, paragraph 1, point a) ii).

One should refer to the Report on “Status & Progress 2009” for the 2009 indicative breakdown of allocations by country and by programme and instrument[111].

The European Parliament Report on the review of the European Neighbourhood and Partnership Instrument of 28 January 2009[112] states that “the visibility of the Community assistance should be increased through targeted communication with stakeholders and the general public”. The Report recommends that “contacts be developed to that end with civil society and local authorities, as they are closer to the citizens and therefore represent a competent and effective level at which to act”.[113]

The Report also states that “sectoral and general budget support under the ENPI should be made available only to governments which are able to implement it in a transparent, effective and accountable manner and where it constitutes a real incentive” and 3calls on the Commission to review the appropriateness of budget support in countries which have problems with budgetary management and control procedures and high levels of corruption”.

Another item is highlighted, “the importance of clarifying the relationship between the ENP as a framework policy and the regional ENP initiatives such as the Black Sea Synergy, the Union for the Mediterranean and the future Eastern Partnership, and of enhancing the coordination and complementarity of those initiatives and of the different Community assistance instruments”[114] and to conclude that “the need to increase the ENPI financial envelope in order to enable the ENP to attain its increasingly ambitious objectives and to support its new regional initiatives”.

The Opinion of the Committee on budgets attached to the EP Report on the review of the European Neighbourhood and Partnership Instrument[115] is worth quoting because it rapporteur expressed his “concerns about the high level of requested budgetary transfers for chapter 19 08 which already amount to a cumulative increase of EUR 410 million in commitments and EUR 635 million in payments for the years 2007 and 2008”.

The EP Committee on regional development stresses in its Opinion “the need to improve coordination of territorial cooperation under the economic, social and territorial cohesion policy with the external component of cross-border cooperation, with candidate countries, ENP countries, the Russian Federation and countries neighbouring the outermost regions”[116].

In order to revise the National Indicative Programmes (NIPs), the European Commission has developed a number of “concept notes” which allowed to start a reflection in the European Commission for the preparation of the 2011-2013 NIPs in the framework of the mid term review of the Country Strategy Papers (CSP) and the National Indicatives Programmes (NIP). The NIPs are crucial in the establishment of the priority sectors and programmes for the Commission cooperation for the period 2011-2013.[117]

National Indicative Programmes were finally adopted in March 2010. The following table summarizes the financial breakdowns and key priorities for cooperation. Note that for the first time, a NIP was adopted for Libya, thus still within the framework of the former political regime. It totaled EUR 60 million.[118]

Table 10 : Breakdown of PIN 2011-2013

CountriesOverall budget for bilateral EU assistanceIncrease or decrease compared to 2007-2010Areas eligible for support mentioned in the framework of the CSP or ENP Action plan
AlgeriaEUR172 million, i.e. EUR 57,33 million a year on average+ 4,2%Human rights reform; Reform in the field of justice, migratory flows and terrorism; Diversification of the economy; Sustainable development; Development of education; Reinforcement of social programmes; Facilitation of trade; Development of infrastructure.
EgyptEUR 449,29 million, i.e. EUR 149,76 million a year on average+ 5,4%Supporting reforms in the areas of democracy, human rights, good governance and justice; Developing the competitiveness and productivity on the economy; Ensuring the sustainability of the development process with effective social, economic and environmental policies and better management for natural resources.
Israel EUR 6 million0%Acquis related activities in key ministries; Activities in the field of higher education; Events for the exchange and dissemination of information on acquis and ENP Action Plan issues
JordanEUR 223 million i.e. EUR 74,33 million a year on average+ 12,2%Supporting political and security reforms in the areas of democracy, human rights, good governance, justice and the fight against extremism; Trade and investment development; Sustainability of the development process. Institution building, financial stability and support to regulatory approximation.
LebanonEUR 150 million i.e. EUR 50 million a year on average+ 7%Lebanon’s political reform; Social and economic reforms; the recovery and reinvigoration of the economy
LibyaEUR 60 million i.e. EUR 20 million a year on averageFirst yearImproving human capital quality; improving   sustainability of economic and social development;  taking into account the challenge of migration management
MoroccoEUR 580,5 million i.e. EUR 193,5 million a year on average+ 13,48%Development of social policies; Economic modernisation; Institutional support; Good governance and human rights an Environmental protection
SyriaEUR 129 million i.e. EUR 43 million a year on average+32,3%Support for political and administrative reform, Support for social reform.
TunisiaEUR 240 million i.e. EUR 80 million a year on average+ 6,6%Employment; Programme of Support to Integration II; Programme of Support to Business; Justice.

Sources : National Indicative Programmes (NIPs) South 2011-2013: ENPI Info Centre wrap-up, http://www.enpi-info.eu/main.php?id=88&id_type=3&lang_id=450.
NIPs: http://ec.europa.eu/world/enp/documents_en.htm and own calculations.

As a comparison, here are the bilateral budget breakdowns for the countries of the Eastern Partnership and the multi-country programmes.

Table 11 : Bilateral budget breakdowns with the countries of the Eastern Partnership and the multi-country programmes (in EUR million)

CountriesEUR million
Algeria172
Armenia157.3
Azerbaijan122.5
Egypt449.3
Georgia180.3
Israel6
Jordan223
Lebanon150
Libya60
Moldova273.1
Morocco580.5
Syria129
Tunisia  240
Ukraine 470.1
Multi-Country Programmes 
Regional Programme East262.3
Interregional Programme757.7

The mid-term review of the national programme for Belarus, the plurinational programme for Euromed Partnership as well as cross-border cooperation programme were at that time still underway. All together the 19 programmes and the assistance provided for the Occupied Territories represent a total of EUR 5.7 billion.

It should be noted that a first Euromed Regional Indicative Programme has been published for the period 2007-2010[119]. The table of the Annex 1 of the document contains the details of the financing.

Table 12 : Regional Support Allocation – Financial  Breakdown for 2007-2010

Programme heading/Title2007200820092010Million EUR
      
Global Allocation106,96,18,931,9
      
Political, Justice, Security and Migration Cooperation     
Confidence building Measures : civil protection4,4   4,4
Confidence building Measures: partnership for peace55 1020
Justice, security and migration (JSM)  13 13
Policy analysis   88
Sustainable Economic Development     
Investment promotion and reform dynamisation to attract investments6   6
Transport and energy cooperation 914 23
South-South regional economic integration  4 4
Environmental programme 91533
Technical assistance and risk capital support for FEMIP32323232128
Information society Development 5  5
Social Development and Cultural Exchanges     
Gender equality and civil society  8  816
Information et communication II  12  1022
Euromed Youth  5 5
Dialogue between cultures and cultural heritage177  24
TOTAL94,473,983,191,9343,3

Source : ENPI Regional Strategy Paper (2007-2013) and Regional Indicative Programme  (2007-2010) for the Euro-Mediterranean Partnership, Annex I, http://ec.europa.eu/world/enp/pdf/country/enpi_euromed_rsp_en.pdf

One should also mention a European Commission Decision of 4 August 2010 approving the 2010 Annual Action Programme for the Mediterranean region[120], which is more precise. It consists of the following priority actions: “Euromed Police III” (EUR 5 million) , “Euromed Justice III”( EUR 5 million), “Euromed Migration III” (EUR 5 million),”Partnership for Peace”(EUR 10 million), “Assistance to FEMIP” (EUR 32 million), “Euromed Aviation II”(EUR 4 million), “Euromed Road, Rail and Urban Transport”(EUR 5 million), “Euromed Programme on Sustainable Water Management and de-pollution of the Mediterranean” (EUR 22 million) and the Overall Allocation (EUR 10,9 million)[121]. “The maximum contribution of the European Union to the 2010 Action Programme is set at EUR 91.9 million”.

For a general overview of multilateral projects and programmes, we should also refer to the document published by the European Commission (EuropAid) entitled « Our Neighbours: Panorama of Regional Programmes and Projects in the Mediterranean Countries 2010»[122].

A second Regional Indicative Programme for the Euro-Mediterranean Partnership has been published for 2011-2013[123]. The total amount is EUR 288 million. The four priorities are the following:

i) Common regional institutions, confidence building measures and media development (support to the Union for the Mediterranean Secretariat, Civil protection, Partnership for peace, Information and Training Seminars for Euro-Mediterranean Diplomats, Regional Media, Information and Communication Programme);

ii) Regional integration, investment, regulatory convergence (Enhancing investment promotion, business development and industrial cooperation; Transport Infrastructure; Support to the information society; Support to the FEMIP; Statistics);

iii) Sustainable development ( environment, water, energy);

iv) Social inclusion and cultural dialogue (Gender equality, Dialogue between cultures and cooperation on culture, Civil Society including youth).

Table 13 : Regional Support Allocation – Financial  Breakdown for 2011-2013

Priority areaApprox. % 
1. Common regional institutions, confidence building measures and media development16
2.  Regional integration, investment, regulatory convergence (including approximately 30% of the total regional allocation for the FEMIP).43
3. Sustainable development15
4. Social inclusion and cultural dialogue14
5. Global allocation12
Total100

Source : European Neighbourhood and Partnership Instrument (ENPI), Regional Indicative Programme (2011-2013) for the Euro-Mediterranean Partnership, http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/enpi-south/documents/regional_indicative_programme_2011-2013_en.pdf

The Euro–Mediterranean sectoral cooperation

Industrial regional Cooperation and the Mediterranean Business Development Initiative

At the 8th Conference of the Ministers for Industry, held in Nice in November 2008[124], a work programme for 2009-2010 has been adopted[125]. This programme establishes 6 priorities :

– Continue implementing the Euro-Mediterranean Charter for Enterprise;

– Combine efforts to conclude bilateral Agreements on Conformity Assessment and Acceptance (ACAAs) and thereby facilitate trade in industrial products Mediterranean industrial cooperation;

– Continue the dialogue on the future of the textile and clothing sector;

– Closely monitor growth in investment in the Mediterranean;

– Increase capacities for technological and non-technological innovation;

– Support on the issue of sustainable industrial development.

The list of activities implemented in this regard in 2009-2010 and published by the European Commission[126] gives an overview of the state of the Euro-Mediterranean industrial cooperation. In the field of programmes/projects to support business development in MED countries, one could mention examples such as for Egypt the programme “Research, Development and Innovation II” (EUR 20 million) or for Syria the programme “Industry for growth and employment” (IGEP, EUR 20 million). The large number of conferences and meetings (organised especially in the framework of TAIEX programme) held such as “Getting SMEs on the road to recovery” (organised in Madrid on 31 May-1st June 2010) should also be mentioned.

The Euro-Mediterranean Charter for Enterprise

The Euro-Mediterranean Charter for Enterprises, adopted in 2004 during the Caserta meeting, contains “common principles on which the Mediterranean partners can base enterprise policy. The ambition is to create an environment conducive to investment and private sector development as well as to define common strategies and projects, both at national and regional level »[127] It includes the following lines of action:

– Simple procedures for enterprises;

– Education and training for entrepreneurship;

– Improved skills;

– Easier access to finance and investment-friendly taxation;

– Better market access;

– Innovative companies.

A first assessment report on the implementation of the Euro-Mediterranean Charter for Enterprise has already been presented in 2008[128]. At the Nice Conference, Ministers undertook this time to :

– accelerate the implementation of laws and regulations applicable to undertakings and programmes benefiting undertakings (in particular, small and medium-sized enterprises (SMEs)) and verify their impact on the strengthening of the private sector;

– continue efforts to establish a business-friendly environment, including the simplification of legislation, regulations and procedures applicable to undertakings, in particular as regards tax compliance and foreign trade;

– encourage teaching and training systems to develop entrepreneurial skills and attitudes at all levels;

– improve the identification of undertakings’ training needs and recommend the continuous evaluation of training given;

– create conditions which ensure better access to financing, including venture capital, in particular for innovative undertakings. It will be important inter alia to improve the legislative, regulatory and institutional framework governing access to credit;

– strengthen the ability of businesses to innovate in order to become more competitive, define a global strategy to encourage innovation, improve human resources and increase the volume of investment in research and development, facilitate cooperation in the field of innovation, in particular as regards services and non-technological innovation;

– promote mechanisms for consultation of the private sector which are open, transparent and constructive;

– verify the impact on undertakings of publicly-financed programmes supporting undertakings;

– optimise the use of information and communication technologies, improve the exchange of information on public procurement contracts.

In 2009 and 2010, the Mediterranean partners continued to implement the Charter. In its 2010 Activity Report [129], the European Commission mentions the involvement of Mediterranean Partner Countries (participation in meetings, twinning, re-examination of the indicators…). The issue of revision of the charter was the subject of consultations. Amendments have been prepared in the areas of skills development, access to finance, market access and innovation.

During the Meeting of the Working Party on Euro-Mediterranean industrial cooperation that took place in February 2010, it was envisaged to organise a new assessment[130]. During the November meeting, proposals were made for the years 2011-2012. The Charter is to be revised or not after a new assessment. The implementation of recommendations will continue, with a focus on « capacity building »[131] a follow-up and an evaluation of progress at national and regional level, new fields will also be explored (sustainable enterprise development).

Promoting Investment

At the 2008Nice Ministerial Conference, Ministers underlined “that promoting European investments in the southern Mediterranean countries is a key for both North and South countries ».

In accordance with the 2009-2010 Work Programme, the promotion of investment will therefore:

– Improve the business climate by Charter implementation;

– and the implementation of the regional ‘Invest in MED’ programme launched in April 2008 which aims at developing sustainable trade relationships, investments and enterprise partnerships between the two rims of the Mediterranean.

It should be noted that this programme includes a regional part (Euromed) and as well as a sub regional one (South-South) and that most of the activities are organised around a sectoral approach. Funding under the ENPI is EUR 9 million for 2008-2011 and the programme is managed by the MED-Alliance consortium (made up of ANIMA, Eurochambres, ASCAME, UMCE/Business MED, UNIDO and Euroméditerrannée).

The actions under the Programme[132] are the following:

  • Organises sector-based business-to-business meetings for SMEs;
  • Facilitates institutional match-making between EU and Mediterranean business support organisations;
  • Holds thematic regional and sub-regional investment workshops (best practices) and conferences;
  • Carries out technical assistance missions and training of Southern ENPI trainers;
  • Promotes marketing, information and results dissemination;
  • Produces strategies, studies and guidelines.

In the Activity Report for 2009-2010[133], the Commission indicates that Invest in Med “has launched 48 initiatives for the development of specific business sectors (technical textile, housing insulation, photovoltaic, cosmetics, port logistics, fruits and vegetables packaging, etc.) or to improve a cross cutting issue (women entrepreneurship, access to finance, involvement of Diasporas, traceability, etc.). It also developed a resource centre to facilitate business and investment in the region: FDI observatories, web directories, guidebooks, opportunities promotion)”.

During the meeting in Nice, Ministers also agreed to create a new working group which “will investigate on how to encourage EU investment flows to the south” and will work on a comprehensive promotion plan.

Trade facilitation for industrial products

To achieve this goal, the legal and technical approximation of the Mediterranean countries with the European Union system must be strengthened in the field of technical legislation, standards and conformity assessment procedures (See the negotiations state of play in the previous tables).

In Nice in 2008, Ministers called, for the sectors already harmonised at EU level, to conclude bilateral Agreements on Conformity Assessment and Acceptance (ACAAs) between the EU and each Mediterranean partner country, as well as between Mediterranean partners themselves. To do this, the MED countries were invited to send their legislation to the European Commission. In order to help them to bring their legislation closer to the ‘acquis communautaire’, Med Partners can benefit from a technical assistance (by TAIEX). One of the objectives is also to develop and strengthen of the necessary quality infrastructures to fulfil the requirements of the ACAAs (Market surveillance structure, conformity assessment bodies, etc). The Mediterranean countries are also encouraged to cooperate more closely with the European standardisation agencies.

For the sectors whose legislation is not harmonised at EU level, Ministers recommended a cooperation between the European Union and the Mediterranean partners in order to disseminate information on trade facilitation mechanisms such as the “mutual recognition mechanisms” existing in the European Union.

Innovation and technology transfer

The above mentioned 2009-2010 Work Programme indicates that the objective is to “improve enterprise competitiveness and job creation, boost the most competitive sectors, convert the least competitive, encourage the creation of innovative companies, increase product quality and the effectiveness of processes in traditional manufacturing and service companies and in sectors with a higher intensity of innovation, promote technology transfer and non-technological innovation and address the challenges of globalisation.”[134]

Ten activities are listed to reach this objective such as:

– the implementation of the recommendations on innovation dimension in the Charter;

– the participation in the ‘Medibitkar’ project (2006-2009), supported by the EU, and the valorisation of the results of the programme in national policies and measures for innovation;

– the information on European innovation policies (regional seminar held in Cairo on 7-8 December 2009);

– the participation in the Enterprise Europe Network.[135]

The Dialogue on the future of the textile and clothing sector

The Dialogue on the future of the textile and clothing sector has been launched after the 2004 Caserta Ministerial Conference. The 2009-2010 Work Programme, for its part, sets out two objectives:

– The “Strengthening the Capacity building of the social partners”. The objective of the dialogue is here to “improve the capacity of the social partners in the textile / clothing sector in the MED countries to help companies manage structural changes and adapt to the new conditions of the market.” It is also designed to “encourage the participation of the social partners in the social dialogue at sectoral level”[136]. A Seminar on sharing experience and good practice has been organised in this respect in November 2009 (Euro-Mediterranean Workshop on Textile and Clothing[137]);

– The promotion of “innovation in the textile and clothing sector” to “evolve towards production with higher value added”. A Euro-Mediterranean Conference on Technical Textiles and Innovation in the Euro-Mediterranean Region was held in Brussels on 11 March 2010, TAIEX being used to fund these activities.

Sustainable industrial development and energy efficiency

At the 2008Nice Conference, Ministers “wanted the issue to be at the heart of Euro-Mediterranean industrial cooperation”, with respect to the issues and development projects launched at the Union for the Mediterranean’s Summit (Mediterranean Solar Plan, Mediterranean Water Strategy, depollution, Maritime Land Highways). The Work programme sets, as objective for the years 2009-2010, to “take more account of these aspects in public policies and private-sector initiatives at the Euro-Mediterranean level”. The Work Programme[138] identifies ten activities to be undertaken in this framework that revolve around two axes: activities related to environmentally-friendly products and production processes and those which concern renewable energy and energy efficiency.

The MED countries were informed about the EU’s policies, activities and projects in the field of sustainable enterprise’s development at a regional seminar organised by TAIEX in Brussels on 17 November 2009. The question of including the issue of the sustainable development in the Mediterranean Charter is also under consideration and proposals have been made in this regard.[139] Regarding the financing of these activities, “Ministers were very keen to see the emergence of national and private initiatives to respond to these proposals, since Community funding can provide only occasional support through the TAIEX and Twinning instruments within the framework of the 2009-2010 work programme”.[140]

The Mediterranean Business Development Initiative

The Mediterranean Business Development Initiative (MBDI) is one of the six major projects identified at the Paris Summit for the Mediterranean on 13 July 2008. As underlined by the economic leaders of the Mediterranean in their final declaration in June 2010, “More than 90% of the Euro-Mediterranean companies are SMEs. They are the engine of economic growth and job creation in the region. At the same time, they are facing the most difficulties to access finance, to get administrative coaching or facilitation assistance”.[141]

The aim of the MBDI, as stated in the Declaration of the Paris Summit for the Mediterranean, is to assist “the existing entities in partner countries operating in support of micro, small and medium-sized enterprises by assessing the needs of these enterprises, defining policy solutions and providing these entities with resources in the form of technical assistance and financial instruments”. Note that this initiative “will be based on the principle of co-ownership and its activities are expected to be complementary to those of the existing entities working in the field. Contributions by countries from both rims of the Mediterranean will be done on a voluntary basis”. The guiding principles of this initiative are: added value, market orientation and joint responsibility in order to ensure complementarity with existing instruments.

The EIB has been involved in this initiative an is responsible for conducting a feasibility study financed by the FEMIP Trust Fund[142]. This study, which began in 2009, is based “on an analysis of existing financial cooperation schemes and field visits to partner countries in order to identify market niches that need to be developed”. Finalised in 2010, the study proposes a business plan for the medium term (three years). At the Joint Ministerial Meeting ECOFIN/FEMIP, held in Rome in May 2010, Ministers approved the conclusions of this study, highlighting “the need to provide easier access to finance for Micro, Small and Medium Enterprises (MSMES) in the region”.[143] The study sets forth a EURO 2.2 billion action plan for SMEs on four years of which: EURO 650 million to develop micro-finance, EURO 600 million to develop equity investments in SMEs, EURO 250 million for existing guarantee mechanisms and to create a Mediterranean counter-guarantee fund.

The EIB, through FEMIP, is therefore fully involved in this project, with the UFM Secretariat. The EIB “will submit technical proposals for concrete implementation of the MBDI, coordinated jointly by FEMIP, the European Commission and the interested parties on the basis of its extensive experience in financing SMEs”.

In this regard, the CEPS/IEMED Working Group on “SME Financing in the Mediterranean”[144] insists in its declaration of May 2010 on the need of a “prompt implementation of the proposed actions under the MBDI within a comprehensive outreach and friendly-user strategy to ensure a wide local public awareness in the Mediterranean countries. To be successful, the institutional setting of the MBDI is crucial. The Group is sympathetic to the option of creating an autonomous unit within the EIB with decentralised local operations. At this stage, this option may be the optimal way in terms of costs, functionalities and avoiding delays. To assess its effectiveness, an impact assessment should be conducted two years following the start of operations of MBDI”.

As the Milhaud Report points out, “nearly 80% of the transactions signed by the FEMIP in 2009 were for the priority areas of the Paris Declaration of July 13th, 2008 and the final declaration by Ministers of foreign affairs (Marseille, November 2008)”[145]. About Business Development, FEMIP has provided EUR 27 million to acquire stakes in three regional funds in the Mediterranean (one of which is the Middle East Venture Capital Fund, the first of its kind to be based in the Palestinian Territories), a local currency loan granted to a microfinance association in Egypt, four loans totalling EUR 390 million were also provides for the industrial sector in Tunisia, Morocco, Israel and Syria. In 2010, the EIB states that “EUR 42 million was invested into the private equity sector, more than half of which actually went in support to capital development of SMEs in the region ».[146]

Economic leaders insist that “this priority of the UfM should not be limited to access to finance, but also address the crucial issues of entrepreneurs coaching, training, and promotion of national and international partnerships to develop technologies”[147].

The de-pollution of the Mediterranean and cooperation in the Water sector [148]

The project of the de-pollution of the Mediterranean is based on an existing initiative ‘Horizon 2020’, a global initiative to fight against the pollution in the Mediterranean, adopted in 2006. This issue is also one of the priorities of the future ‘Euro-Mediterranean Strategy for Water’, whose main lines were defined in the 3rd ministerial meeting on Water, held in Jordan in 2008 and that was to be adopted at the 4th Conference on Water in Barcelona on 13 April 2010.

The “Horizon 2020” Initiative to fight against the pollution of the Mediterranean

In November 2005, at the summit held for the 10th anniversary of the Euro-Mediterranean Partnership , the Member States committed to intensify efforts to significantly reduce the pollution of the Mediterranean by 2010 in the framework of the “Horizon 2020” initiative [149].

At the 3rd Euro-Mediterranean Ministerial Conference on the Environment held in Cairo in 2006[150], a timetable for the actions was adopted , which is based on four pillars :

i) Projects to reduce the most significant pollution sources focussing on industrial emissions, municipal waste and urban waste water, responsible for up to 80% of pollution in the Mediterranean Sea;

ii) Capacity-building measures to help neighbouring countries create national environmental administrations that are able to develop and police environmental laws;

iii) Using the Commission’s Research budget to develop and share knowledge of environmental issues relevant to the Mediterranean;

iv) Developing indicators to monitor the success of Horizon 2020.

This initiative does not create new political processes and new institutions but is based on the existing action programmes in the region.

The de-pollution of the Mediterranean is one of the six regional projects identified in the Annex to the Paris Declaration: “Building on the Horizon 2020 programme, the de-pollution of the Mediterranean, including coastal and protected marine areas, particularly in the water and waste sector, will therefore be of major benefit for the lives and livelihoods of its people”.[151]

It consists of developing, on the basis of the first results of the “Horizon 2020” initiative, a consolidated investment programme comprising a series of projects designed to reduce pollution in the Mediterranean Sea with the participation of the private sector. In late 2008, the three sub-groups (Pollution Reduction Projects, Capacity building measures, Review, Monitoring and Research) created in accordance with the timetable were operational[152].

In 2009, the Commission published a first progress report on the implementation of the first phase of the Initiative[153]. The Mediterranean Hot Spot Investment Programme (MeHSIP)[154] involves several multilateral and bilateral financial institutions under the EIB coordination and is primarily focus on providing support to the Horizon 2020 initiative and its partner countries in the implementation of priority pollution reduction investment projects[155]. In June 2009, 45 projects(from an initial list of 131) for a total amount of EUR 3,5 billion were in the phase of identification or securitisation of their funding.[156] However, the European Commission states that “The necessary funds for this second phase are estimated to be up to EURO 5.4 million. The second phase would aim to support implementation by treating broader issues linked to the sectors addressed by the various projects (urban waste water, municipal waste or industrial emissions)”[157].

The Water projects discussed at the Ministerial meeting on sustainable development projects

The first Ministerial meeting on sustainable development projects was held in Paris on 25 June 2009, in accordance with the timetable established at the Ministerial meeting in Marseille in November 2008.

The conclusions of the Workshop on Water and Environment indicate that around 100 projects  have been collected: “Among these projects, will start in 2009 the extension of one of the two biggest purification plant in Cairo, Egypt, which is part of the Horizon 2020 Initiative of depolluting the Mediterranean sea. It is a project amounting 233 millions Euros which will assure the waste water treatment for 2 millions additional people and the strengthening of sanitary and environmental security of the low Nile valley. An important project of a desalination plant for Gaza, amounting to 400 millions Euros has also been listed. The Franco-Egyptian copresidency wishes that a common priority shall be recognized for the water distribution projects in the Gaza strip”.[158]

The organisation of a conference on the contribution of local authorities on water is also planned. Ministers stated that “the local authorities networks working in the Mediterranean have taken initiatives for reinforcing the cooperation in the water sector, mainly in water sanitation in South-East cities of the Mediterranean. Several concrete projects will come out from these cooperations and are bent to be part of the UfM and to take advantage of its financing”. This conference, organised by the Mediterranean Commission of United Cities and Local Governments was held in Lyon on 23 and 24 November 2009. It allowed to formulate the recommendations of local and regional authorities on the Water Strategy of the Union for the Mediterranean, to identify the projects of decentralized cooperation to be presented at the Union for the Mediterranean and to reinforce the support from important donors for the projects led by Mediterranean authorities.[159]

The Strategy for Water in the Mediterranean (SMW)

In the Declaration adopted at the Paris Summit in 2008, the Heads of States and Governments stressed that: “the importance of water is acknowledged, the Euro-Mediterranean Ministerial Conference in Jordan in October 2008 will define a Mediterranean water strategy, promoting conservation of water resources, diversifying water provision resources and efficient and sustainable use of water”. In the Declaration of the Euro-Mediterranean Ministerial Conference on Water in December 2008[160], the Ministers agreed to develop a Water Strategy for the Mediterranean and approved the guidelines and timetable for its preparation.

This coordinated and integrated Strategy “will tackle problems that go beyond the means of any one country, organisation or initiative, in particular those related to the impact of climate change and environmental needs, that call for a co-ordinated approach and increased cooperation”. It will “include two main goals: conservation of water quality including the prevention of further deterioration of water resources and the balance between the quantity of water used and the quantity of water available including mitigating and preventing the consequences of droughts and water scarcity”. It will “consider the most appropriate instruments to reach the objectives of the Strategy, with a view to achieve economic growth, social prosperity, equitable access and adequate supplies of water, and environmental protection, notably through improved efficiency of all water uses, appropriate governance arrangements, legislation and institutional arrangements, effective national and local planning, innovative financial mechanisms, tariff policies, standards, labels, alternative solutions, keeping in mind the differences in national situations and the need to increase the citizen’s awareness by promoting the wide participation of civil society aiming at building the culture of water”.

The projects to be developed should relate to the 5 priority concerns listed in the Annex 2:

i) Adaptation to climate change;

ii) Balance between supply and demand;

iii) Conservation and rehabilitation of natural environments;

iv) Depollution of the Mediterranean;

v) Technologies and efficient use of water.

The Water Expert Group [161] was mandated with the European Commission to elaborate further the Strategy for Water in the Mediterranean as well as to assist its implementation and follow-up.

A first indicative list of projects related to integrated management of water resources, access to safe water and sanitation ands adaptation to climate change, proposed by some UfM Members States was presented. The Group of experts met in Athens in September 2009, in Cairo in November 2009 and in Madrid in March 2010.

The IVth Euro-Mediterranean Ministerial Conference on Water held in Barcelona on 13 April 2010. The Final draft of the “Strategy for Water in the Mediterranean”[162], written in March 2010, was to be adopted at this occasion. It aims being to agree on a common political, methodological, and financing framework to facilitate the implementation of regional policies in the water field. But as we have already seen, a question of drafting (the reference to “Occupied Territories”[163]) prevented the adoption of the document and the Final Declaration of the Conference.

The SWM identifies four major priority themes:

i) Enhancing effective governance for integrated water resources management;

ii) Adapting to climate change and enhancing drought and flood management;

iii) Promoting water demand management, efficiency and non-conventional water;

resources, and protecting quality of water and biodiversity;

iv) Optimizing water financing, water valuation and appropriate instruments, with emphasis on innovative mechanisms.

The main SWM cross-cutting objectives, that are common to all thematic fields addressed and for which implementation should be considered as constantly progressing, include :

i) Ensure the integration of policies, which properly take into consideration all the legitimate water uses and demands, including the environmental needs, as well as all categories of waters including groundwater, coastal and transboundary waters. Promote the establishment of management organizations at appropriate levels i.e. at catchment area.

ii) Enhance and facilitate the participation of all stakeholders throughout the various levels and segments of society, with emphasis on gender-balanced and poverty alleviation considerations, by establishing mechanisms, which encourage broad-based involvement. Promote the establishment of active user associations.

iii) Increase citizens’ awareness on the value of water and its culture, enhance education for environment and sustainable development and promote changing of consumption and production patterns. Support the media to play a more systematic and constructive communications role with regard to water issues.

iv) Ensure the capacity building of water management and environmental protection administrations, technicians, farmers and all competent stakeholders to empower them to better fulfil their roles. Address training needs, including training of trainers, and facilitate knowledge and expertise exchange at national, local and transboundary levels to respond to current and future challenges.

v) Secure comparable water data collection and monitoring also employing appropriate indicators, through access to reliable information structured in improved national and regional data collection and information systems in coherence with international standards.

vi) Support research in all water aspects as a way to achieve the necessary development and address challenges, such as desertification climate change and other emerging pressures. Make necessary investments in applied research, technological development, full use and rehabilitation of traditional knowledge and techniques, transfer of appropriate technology and political science i.e. management, law and economics. Link scientific research outcomes with policy development, application and monitoring.

vii) Establish and support fair and socially sensitive valuation and cost recovery, including tariffs to support operation and maintenance costs and fees collection, aiming to contribute in securing provision of good water services to the people and protection of the environment.

viii) Ensure optimal use of available instruments and tools e.g. Best Available Techniques (BATs) and Best Environmental Practices (BEPs) which are environmentally friendly as well as Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) as valuable mechanisms while developing plans, programmes and infrastructures.

If the MWS does not seems to be put into question at this stage, delegations should continue negotiations to reach a consensual text.

EIB financing in the water sector

Between 2003 and 2008, FEMIP has provided EUR 692 million in loans to support projects that ease population’s access to water resources[164]. The financial breakdown by country is the following: Egypt 8 %, Tunisia 8 %, Morocco 16%, Syria 7 %, Lebanon 15 %, Israel 46 %.

In 2009, 6 projects have benefited from loans for a total amount of EURO 355,978,067 broken down as follows:[165]

Table 14 : Loans signed in 2009-2010

NameCountrySignature dateSigned Amount
SY MUNICIPAL & ENVIRONMENT INFRASTRUCT Framework loan for investment schemes in Syrian citiesSyria20/11/200925,000,000
IWSP Framework loan for water supply and wastewater schemes in four governorates in Nile DeltaEgypt30/09/200970,000,000
HADERA DESALINATION PLANT EXTENSION Increase in production capacity of Hadera desalination plantIsrael11/06/200925,220,000
SOUTH NORTH WATER CONVEYOR Construction of water extraction and transport system, including 325 km pipeline, to supply drinking water mainly to Greater Amman areaJordan17/05/200973,670,252
SOUTH NORTH WATER CONVEYOR Construction of water extraction and transport system, including 325 km pipeline, to supply drinking water mainly to Greater Amman areaJordan15/05/200992,087,815
KESRWAN WATER AND WASTEWATER PROJECT Construction of wastewater treatment plant, sewerage network and sea outfall in Tabarja, near JouniehLebanon03/04/200970,000,000
Total Amount  355,978,067

Source : http://www.eib.org/projects/loans/sectors/water,-sewerage.htm?start=2009&end=2010&region=mediterranean-countries&country=

In 2010, a new project for Syria has been signed.

SYRIA H2020 WATER Modernisation of water supply and wastewater collection and treatment infrastructure in north-west Syria  Syria06/12/201055,000,000

Regional projects in the water sector

The MEDA Water Programme[166]

Having started in 2002, the MEDA Water Programme intents to improve local water management conditions through co-operation of non-profit organisations from EU countries and non-profit organisations in the Mediterranean countries, capacity building, construction of demonstration plants, and technology transfer. Three technical components have to be taken into account: (i) water supply and wastewater reuse (in agriculture and in an urban set-up), (ii) irrigation water management and (iii) improvement of decision-making structures in irrigation, rural water supply and sanitation, and drought management. Out of more than 40 applications, 9 projects were selected for implementation. Implementation of the first projects started in May 2003 and activities will last until the end of 2008. The available budget for MEDA Water was EURO 40 million under the MEDA Regional Indicative Programming and involved seven partner’s countries : Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territory, Syria, Tunisia, and Turkey (the main beneficiaries being Morocco and Jordan). Nine consortia of non-profit organisations (NGOs, Universities and Government Agencies) received grants for the implementation of measures related to local water management. The programme was performed by 69 organisations from participating countries, 20 NGO’s, 23 Universities, 16 research Institutes and 9 governmental Agencies[167].

The regional project “Sustainable Water Management and De-pollution of the Mediterranean”

To support the implementation of the Horizon 2020 Initiative and the Mediterranean Water Strategy, 22 million euros from the regional budget of ENPI South (2009-2013) was released for the regional project “Sustainable Water Management and de-pollution of the Mediterranean”.[168].The participating countries are Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Occupied Territories, Syria and Tunisia.

This programme carries forward the results achieved by two earlier regional programmes (SMAP[169] and MEDA Water[170]) and promotes the enforcement of sustainable water management policies and the dissemination of good practices in the region. It supports activities aligned with the four priorities of the Mediterranean Water Strategy (MWS), namely: water governance, water and climate change, water financing and water demand management.[171]

Cooperation in the energy sector and the Mediterranean Solar Plan

At the Euro-Mediterranean Ministerial Conference on Energy, held in Limassol on 17th December 2007[172], a Priority Action Plan 2008-2013 has been adopted. The Action Plan has three priority areas :

i) Ensuring the improved harmonization of energy markets and legislations and pursuing the integration of energy markets in the Euro-Mediterranean region;

ii) Promoting sustainable development in the energy sector;

iii) Developing initiatives of common interest in key areas, such as infrastructure extension, investment financing and research and development.

In the Sectoral Progress Report on the Implementation of the European Neighbourhood Policy in 2009[173], it is noted that Mediterranean ENP partners pursued the implementation of the “Priority Action Plan particularly in terms of gas and electricity rings, regulatory convergence, the creation of a Maghreb electricity market and a Euro- Mashraq natural gas market”. The cooperation with Egypt also progressed with the signature of a Memorandum of Understanding UE-Egypt on strategic partnership in the field of energy.

Regarding the regional projects in the field of energy, the following should be mentioned:

i) The project “Electricity Market Integration in Maghreb”, which supports the development of an integrated electricity market between Algeria, Morocco and Tunisia and between these countries and the EU. The budget for 2007-2010 is EUR 4,9 million;[174]

ii) The project “Euro-Arab Mashreq Gas Market Project” (EAGM II), which supports the development of an integrated gaz market and concerns Egypt, Iraq, Lebanon, Syria and Turkey. For 2010-2013, the budget (EU Contribution) is EUR 5 million;[175]

iii) The Project “MED-EMIP – Energy cooperation” which is a platform for energy policy dialogue aiming at the integration of energy markets and the promotion of improved security and sustainability. The budget for 2007-2010 is EUR 4,1 million (MEDA);[176]

iv) The project “MED-ENEC II- Energy efficiency in construction” which encourages energy efficiency in the construction sector, through capacity building, fiscal and economic instruments and pilot projects. The beneficiary countries are : Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinan Territory, Syria, Tunisia, Turkey. The budget for 2009-2013 is EUR 5 million.[177]

v) The Project “MED-REG II” which aims at strengthening cooperation  between the EU energy regulators and those of the Mediterranean Partner Countries helping them to developed a modern and regulatory framework  and concerns  Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territory. The budget for 2010-2012 is EUR 1 119 200.[178]

The Mediterranean Solar Plan

The Mediterranean Solar Plan (MSP) is one of the new initiatives of the Union for the Mediterranean. In the Annex of the Paris Declaration, Ministers state that “The recent activity on energy markets in terms of both supply and demand, confirms the need to focus on alternative energy sources. Market deployment as well as research and development of all alternative sources of energy are therefore a major priority in efforts towards assuring sustainable development. The Secretariat is tasked to explore the feasibility, development and creation of a Mediterranean Solar Plan”.

The MSP was presented at a first conference held in Paris in November 2008[179]. It aims at increasing the use of renewable energies and enhancing energy efficiency of each country and of the region as a whole. The objectives of the MSP are:

i) the setting-up of additional capacity of low carbon electricity generation, including solar, in the countries surrounding the Mediterranean, with a total capacity of 20 Gigawatt by 2020;

ii) the consumption of a part of electricity generated by the local market and the export part of production to the European Union to ensure the project profitability;

iii) the realisation of significant efforts to control energy demand and increase energy efficiency and energy savings in all countries of the region.

The timetable for the implementation of MSP follows three steps:

i) 2008: definition of objectives and preparation of MSP;

ii) 2009-2010: pilot phase with the setting-up of “immediate action plan” consisting in pilot projects to start during the French Egyptian presidency of the UfM, to test the regulatory, financial and institutional mechanisms set up;

iii) 2010-2011: large-scale deployment phase of renewable energy and energy efficiency projects.

More than 150 projects or “intention of projects” were presented to the French Egyptian presidency of the UfM[180] (solar, wind and energy efficiency). The identification phase of the projects thus continues.

In the Strategy Paper[181] examined by the Mediterranean Solar Plan Experts Group during its meeting of 10 February 2010, the urgency of the task is explained: “Energy demand is projected to rise significantly, while fossil fuel prices will most likely continue to follow an unstable and most likely rising trend. To address these challenges, the countries of the EU and the other member countries of the Union for the Mediterranean need to intensify their efforts to develop adequate policies in the field of energy efficiency and energy savings, renewable energies and reduction of greenhouse gas emissions”.

The Strategy Paper states that the MSP will focus on the following :

– Setting up of an adequate legal, regulatory, economic, institutional and organisational environment;

– Examine and promote, in cooperation with the International Financial Institutions, the best use of all possibilities to finance investments in renewable energy sources;

– Promote the development of electricity interconnections in order to establish a viable “green electricity” import and export framework;

– Support energy efficiency initiatives and energy savings to realize the anticipated goals of energy savings by 2020;

– Facilitate extensive co-operation on all technology aspects;

– Avail all EU carbon mechanisms for the benefits of both Mediterranean sides in purpose of improving the economics of the projects under MSP;

– Continue regular dialogues between the stakeholders of the MSP for close coordination and successful implementation of MSP;

The deployment phase will be supported by a master plan to be presented in 2011 and covering the period 2011-2020.

The MSP complements existing Euro-Mediterranean activities done under a number of regional energy projects, funded under the European Neighbourhood and Partnership Instrument (ENPI)[182] mentioned above: EAMGM II; Electricity market integration in Maghreb; MED-EMIP; MED-ENEC II and MED-REG II.

Note that the MSP is supported by various instruments :

– the project “Paving the Way for the Mediterranean Solar Plan[183], launched in September 2010 ( with a budget of  EURO 5 million for 3 years);

FEMIP [184] (since 2002, FEMIP devoted a total of EUR 3.7 billion to the energy sector, spread over 26 operations, this represents more than a third of the aggregate financing provided in the region, all sectors combined);[185]

– the Neighbourhood Investment Facility (NIF). Since its launch in June 2008, the NIF has approved 12 projects in the South Mediterranean, with a total investment of over EURO 5 billion. In addition to the 4 ongoing projects directly focused on the MSP and renewable energy[186], 5 new projects are planned in these fields in 2010.

A Conference on the Mediterranean Solar Plan was organised by the Spanish Presidency in Valencia in May 2010[187], coordinated with the 8th FEMIP Conference “Energy in the Mediterranean Region: the challenges ahead”. In the paper “Mediterranean Solar Plan: the need to move forward”[188], the issue of funding is still highlighted :”The conclusion that can be noted in terms of the funding of the Mediterranean Solar Plan, given the high costs involved, is that it will not be viable if there is no solution to the high funding requirements through facilitating mechanisms. The challenge of mobilising the funding expected in order to reach 20 GW in 2020 requires major incentives and, in the short term, if the Plan is to have credibility”.

The pre-study Report on the “Financing of Renewable Energy Investments in Southern and Eastern Mediterranean region» was presented by the EIB. According to the analysis of the IPEMED, it appears that “the electricity capacity of the projects identified amounts to 10 GW, about half of the 2020 goal, but only about 2.1 GW corresponds to projects which are at an advanced stage of development, of which, however, only 0.6 GW have a financial plan”[189]. It seems that the deficit is partly due to the profitability of renewable energy projects; in fact, compared to the cost of conventional energy, the cost of wind power is generally twice as high and the solar is 4 times more expensive.

Two scenarios have been established in the framework of the FEMIP study. The less ambitious one, would see the more mature projects implemented and a capacity of 4,1 GW reached by 2020 while a more ambitious one would allow all the projects identified to expire in ten years. “The two scenarios correspond to 19% to 53% of the MSP target for 2020 respectively”. It is suggested to develop the solar projects identified (almost 6 GW), whereas most mature projects identified relate to on-shore wind energy. The FEMIP study also assessed the need to launch the projects identified taking into account the cost of different technologies. As a guide, it is established that the investment cost on project in the advance stage of preparation (2,1 GW) now stands at EUR 1,5 billion. For the less ambitious scenario, the need for investment is EUR 7 billion by 2020, for the second scenario, it amounts to EUR 21 billion. These investments concern mostly solar projects.

Currently, funds are available up to EUR 5 billion, as announced by the EIB, AFD and KfW at the Euromed Ministerial Conference on Sustainable Development Projects in June 2009[190]. At the FEMIP Conference, other funding have been studied such as “Feed in tariff”, the creation of a carbon fund (which should be operational late 2010), the participation of Clean Technology fund (managed by the World Bank) and the creation of a Mediterranean clean energy fund.

Another obstacle to the implementation of the MSP was also noted, it is the loss of interconnections between North and South. Two projects were approved in order to overcome it:

– Desertec[191]: consortium of 17 companies, which aims to create by 2050, for about EUROS 400 billion, a vast network of wind and solar installations in North Africa and Middle East, eventually expected to provide up 15% of electricity consumption in Europe;

– Transgreen[192] : a consortium of 13 companies whose purpose is to study the feasibility of a grid to transport electricity between the northern and southern shores of the Mediterranean, developing electricity interconnections around the Mediterranean Basin, the goal is to provide at short term a master plan on a first mesh networks of 5 GW.

The Presidency conclusions of the Conference on the MSP, however, indicate that “it is also necessary to coordinate industrial initiatives already in place (such as Desertec, Transgreen, Clean Technology Funds) and new ones related to the MSP”.[193]

Cooperation in the environmental sector and climate change and the integrated maritime policy

The last Ministerial Conference on the environment was held in Cairo in November 2006[194]. Under the terms of the 2008 Marseille Declaration, a new meeting was scheduled for 2009 but did not take place. One should recall here that the “Horizon 2020” Initiative is the cornerstone of the environmental strategy in the Mediterranean (See cooperation in the water sector).

The integrated maritime policy and cooperation in the field of maritime security and safety

The integrated maritime policy

As part of the Marseille Final statement, it is stated that “Studying the process of developing a harmonised maritime policy and promoting a foreseeable maritime strategy for the Mediterranean shall take particular consideration within the Euromed Partnership in 2009 and beyond. A sectoral Euromed working group composed of national experts is clearly needed to formulate the guidelines, visions, priorities, objectives, means of implementation and funding mechanisms of such a policy, taking into account the variances between the Euromed countries. The task should take place in complete coordination and cooperation with both the competent regional and national entities to provide the guidance and technical assistance.”

The strategy adopted by the European Commission in November 2009 meets different maritime challenges (security, fisheries, aquaculture, environmental protection, climate change, etc.) facing the Mediterranean basin[195] is based on improving governance of maritime affairs which should balance economic development together with environmental protection.

New actions should in particular:

– encourage stakeholders and administrations to define more comprehensive priorities for maritime affairs;

– strengthen cooperation between stakeholders and administrations in all sectors related to the maritime field, throughout the Mediterranean basin;

– assist Member States in exchanging best practices by means of the existing Community funds for territorial cooperation;

– offer technical assistance under the European Neighbourhood Policy and Partnership Instrument to Mediterranean countries which are not members of the EU. This assistance may – allow them to adopt a more integrated approach to maritime affairs;

– encourage the ratification and application of the United Nations Convention on Law of the Sea (UNCLOS);

– create a working group dedicated to Integrated Maritime Policy in order to promote dialogue and cooperation with non-EU Mediterranean countries;

– intensify multilateral cooperation with all sectors through specific studies and the better application of international and regional agreements governing maritime activities.

One should also mentioned a proposal for a regulation of the European Parliament and of the Council “establishing a Programme to support the further development of an Integrated Maritime Policy”[196]. The financial envelope for the implementation of the program is set in the proposal to « EUR 50000 million » and « cover the period from 1st January 2011 to 31 December 2013 ».

Cooperation in the field of maritime security and safety

The Paris Declaration of 2008 mentions the importance of developing greater cooperation in maritime security. For now on, it is the regional cooperation projects SAFEMED I and II that can be used to advance cooperation in this area.[197]

The project SafeMed II, with a budget of EUR 5,5 million, implemented by the IMO’s Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea (REMPEC), is part of the Euromed Transport Programme. It aims to mitigate the existing imbalance in the application of the maritime legislation between the EU Member States and the Mediterranean partners countries. Among its activities is the allocation of grants for the World Maritime University in Malmö and the International Maritime Law Institute in Malta. The project’s beneficiaries are: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey. More recently, following the allocation of additional funds, the European Commission decided to include Albania, Bosnia and Herzegovina, Croatia and Montenegro in the project SafeMed II, for some of the activities”.[198]

The work of the Euro-Mediterranean Transport Forum and its working groups, a place for discussion of regulatory reform and harmonisation of the legislation on standards of maritime security and safety, is also to be underlined here.[199]

Climate change

In the framework of the Marseille Final Statement[200], Ministers recalled the “need to intensify co-operation on climate change through the establishment of a Euro-Mediterranean Climate Change Network to provide the forum for the sharing of information and experience as well as to build relationships in an informal working environment in support of regional efforts to combat climate change. Euro-Mediterranean interaction on climate change may lead to enhancement of capabilities of implementation of projects and programmes of mutual interest”. Ministers also recalled the need to examine the impact of the climate change phenomena on the tourism sector in the Euro-Mediterranean region and underlined that the environmental pressures may severely impact coastal areas, in particular around the Mediterranean.

No significant progress has been made regarding the implementation of these proposals in the framework of the UfM-EMP. However, as outlined in the “Sectoral Progress Report- Implementation of the European Neighbourhood Policy in 2009”[201], international progress have been made, particularly in the context of negotiations on the after Kyoto Protocol, to be replaced in 2012, and in the implementation of the Copenhagen Agreement.

Food security

The Mediterranean is one of the most deficient area in agricultural products in the world. The Mediterranean is actually very dependant on international markets to feed its population. Southern countries have increased their imports of cereals by 20 in forty years, due to the dynamic demand (human and animal) significantly higher than that of production. Price volatility for agricultural products on world markets and the consequences of the financial and economic crisis accentuate the issue of food security in the Mediterranean.

The Marseille Declaration in November 2008 highlighted the importance of “projects related to sustainable rural development, to the development and promotion of quality products and the coordination of agricultural research on topics such as water stress resistant plant species and water resources management”.

The Ministerial Conference of the UfM on food security, agriculture and rural development scheduled on 15 and 16 June 2010 in Cairo has unfortunately been postponed. Priorities (indicated at the meeting of Ministers of Agriculture of the EU) were selected as follow : food security, market regulation, agricultural research, sustainable rural development; health and plant health issues, increased investment in agriculture, and agricultural product quality policy. The aim of the meeting “is to adopt a charter on food security, define priority actions and decide on the working methods and timetable, determine the Secretariat’s mandate, mobilise the various actors and the providers of funds and make an initial inventory of projects already developed”[202].

Also to be noted is the resolution of 20 May 2010 of the European Parliament where it underlined the “need to establish a regional agricultural policy in line with the Euro-Mediterranean Road Map for Agriculture, to preserve local food production and food security, and to promote production, distribution and diversification of typical Mediterranean products and the development of small and middle farming adapted to sustainable development; in the light of growing food insecurity in many Mediterranean partner countries, calls on the Commission to accept partner requests regarding extended safeguards and quick procedures to implement them in times of food crises”.[203].

There is also a note of IPEMED, dated January 2010, which proposes to conclude an “agricultural, food and sustainable rural development Agreement”, to be added to the “opportunity window” opened by the cap reform for 2013. The agreement will be “based on a goal of food security in the long term for the area by guaranteeing supply of strategic products for local populations, and co-development for food chains players. The agreement will be largely based upon strategic partnerships between the entrepreneurs involved in the Euro-Mediterranean food system Partnership. It will securely be in line with a double logic of solidarity and complementarily provided by the geographical and cultural proximity”.[204].

Conclusion

2010 was first marked by many vicissitudes at the UfM level. The fact that the Summit could not take place greatly disrupted the Euro-Mediterranean relations, as important decisions were to be taken on that occasion. The difficulties encountered in the setting up of the Secretariat of the UfM did not help. However, one must understand that the period was particularly difficult because it was about putting in place simultaneously the new structures at the UfM and understanding what could be the new competences, following the implementation of the Lisbon Treaty, all of this in a context of global financial, economic and social crisis.

2010 should have been the year of the Euro-Mediterranean Free Trade Area. However, it is clear that it will take several years to complete all the objectives of the Barcelona Declaration of 1995. On the other hand, we must also highlight the fact that most partners are engaged in negotiations in the field of (processed) agricultural products, services, or right of establishment and committed towards the approximation of their legislations in many areas relating to non-tariff barriers to trade. What appears crucial for the future is to see how, internationally, the Euro-Mediterranean regional economic integration will be positioned. The negotiation of new regional free trade agreement by the EU with other third countries will necessarily have an impact on the economic and trade importance of the Mediterranean partners for the EU. Partners must therefore draw clear conclusions in this regard.

2010 was a turning point in several respects. For the ENP, it was the transition to a second phase (2011-2013). The overall assessment remains relatively mixed but this report shows that the financial and technical cooperation has been gradually shifted, notably with the adoption of the new NIPs and that despite problems, particularly related to the postponement of many ministerial meetings, cooperation continues at a relatively good pace, the EIB playing a crucial role at this level.

Notes

[1] http://www.eu2010.es/en/documentosynoticias/noticias/may23_moratinosupm.html

[2] « Report on the Euro-Mediterranean Partnership Status and Progress 2009 », Erwan Lannon and Ivan Martin,  http://www.iemed.org/publicacions/10_02_25_Report_BCN_Progress_Lannon_Martin.pdf

[3] Joint Declaration of the Paris Summit for the Mediterranean Paris, 13 July 2008, http://www.ue2008.fr/webdav/site/PFUE/shared/import/07/0713_declaration_de_paris/Joint_declaration_of_the_Paris_summit_for_the_Mediterranean-EN.pdf

[4] Final Statement of the Marseille Meeting of the Euro-Mediterranean Ministers of Foreign Affairs, http://ue2008.fr/webdav/site/PFUE/shared/import/1103_ministerielle_Euromed/Final_Statement_Mediterranean_Union_EN.pdf

[5] Achievements of the Czech Presidency in the EU Council – Europe without Barriers, p. 33,  http://www.eu2009.cz/en/czech-presidency/programme-and-priorities/achievements/achievements-of-the-presidency–24392/

[6] http://ue2008.fr/webdav/site/PFUE/shared/import/1103_ministerielle_Euromed/Final_Statement_Mediterranean_Union_EN.pdf

[7] Swedish Presidency, Work programme for the Swedish Presidency of the EU, 1 July- 31 December 2009, http://www.se2009.eu/polopoly_fs/1.6255!menu/standard/file/Arbetsprogram%20f%C3%B6r%20det%20svenska%20ordf%C3%B6randeskapet%20i%20EU%201%20juli-31%20dec%202009.pdf

[8] Union for the Mediterranean finance ministers’ meeting, Brussels, 7 July 2009,  http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/109064.pdf

[9] Second Ministerial conference on strengthening the role of women in society – Marrakesh, 11th and 12th of November 2009,  http://www.euromedgenderequality.org/image/file/77-09-GSC%20Ufm%20Conclusions%20Strengthening%20the%20role%20of%20Women-12%20Nov%20-%20en%20(3).doc

[10] Union for the Mediterranean finance ministers’ meeting, Brussels, 7 July 2009, http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/109064.pdf, 8th Union for the Mediterranean Trade Ministerial Conference Brussels, 9 December 2009, http://trade.ec.europa.eu/doclib/docs/2009/december/tradoc_145575.pdf

[11] http://www.eu2010.es/export/sites/presidencia/comun/descargas/Spanish_Presidency_Program.pdf

[12] Conferences scheduled but postponed : April 25-26 2010 : Euro-Mediterranean Ministerial Conference on Higher Education, Research and Innovation, in Brdo, Slovenia ; May 11-12 2010 : Euro-Mediterranean Ministerial Conference on justice, Italy ; June 15-16 2010 : Euro-Mediterranean Ministerial Conference on Food Security, Agriculture and Rural Development, Cairo, Egypt

[13] Med water conference ends in failure due to Israel-Arab row, http://www.eubusiness.com/news-eu/mideast-environment.448

[14] http://www.eu2010.es/export/sites/presidencia/comun/descargas/Spanish_Presidency_Program.pdf

[15] EU and Egypt discuss situation in the Middle East and prospects for forthcoming Europe-Mediterranean summit

[16] L’Union pour la Méditerranée exposée à de nouveaux blocages, 17 mai 2010

[17] Psokesman of the Quai d’Orsay, Press briefing, 11 May 2010 

[18] European Parliament, Delegation to the Parliamentary Assembly of the Union for the Mediterranean, Minutes, Meeting of the 24 November 2010

[19] http://www.europarl.europa.eu/meetdocs/2009_2014/documents/dmed/pv/850/850527/850527en.pdf

[20] 9th Union for the Mediterranean Trade Ministerial Conference

[21] Chair’s conclusions of the Second Euromed Ministerial Conference on Employment and Labour, 21- 22 November 2010, http://www.ilo.org/public/english/region/eurpro/brussels/downloads/employment.pdf

[22] Ahmed Galal and Jean-Louis Reiffers, « The crisis and ways out of it in the Mediterranean countries », EIB, Luxembourg, November 2010, http://www.eib.org/attachments/country/femip_study_femise_en.pdf

[23] Ibid.

[24] Michael Sturm and Nicolas Sauter, “The impact of the global financial turmoil and recession on Mediterranean countries’ economies”, European central Bank, Occasional Paper series August 2010, p. 7., http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp118.pdf

[25] FEMIP Annual Report 2010 states that “Workers’ remittances recovered in 2010, but the return of expatriate workers from Libya may depress remittance flows in 2011, particularly to Egypt and Tunisia.”. The Joint Conclusions of the Union for the Mediterranean ECOFIN and FEMIP Ministerial Meeting Brussels, 18 May 2010 state that “the spill over effects stemming from the downturn in advanced economies, in the form of declining trade, tourism, worker remittances and capital inflows, rising financing costs and growing uncertainty, had significantly slowed down their growth rate in 2009.”,http://register.consilium.europa.eu/pdf/en/10/st18/st18154.en10.pdf

[26]  We can also refer to the Recommendation of the Economic, financial, social affairs and education of EMPA on « Mediterranean post crisis management » , rapporteurs Mme. Dominique Vlasto (PPE) du Parlement européen et M. Wolfgang GroBruck, http://sdapem.files.wordpress.com/2010/03/recommandation-econ-comm-14-march-2010-en.pdf. « The Impact of the Global Crisis on Neighbouring Countries of the EU”, Occasional Papers 48| June 2009 Directorate-General for Economic and Financial Affair, http://ec.europa.eu/economy_finance/publications/publication15398_en.pdf. “Economic crisis and investment in the Arab region”, IEMED 2010, http://www.iemed.org/anuari/2010/aarticles/Al_Hamad_Crisis_en.pdf, World Bank, “MENA Regional Economic update: Recovering from the crisis”, April 2010, http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/0,,contentMDK:22577735~pagePK:146736~piPK:146830~theSitePK:256299,00.html

[27] « Co-presidency 4. From the EU side, the co-presidency must be compatible with the external representation of the European Union in accordance with the Treaty provisions in force. 5. From the Mediterranean partners side, the co-president must be chosen by consensus for a non-renewable period of two years.

[28] European Parliament resolution of 19 February 2009 on the Barcelona Process: Union for the Mediterranean (2008/2231(INI)), http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P6-TA-2009- 077+0+DOC+XML+V0//EN&language=EN

[29]  http://www.ufmsecretariat.org

[30] Union for the Mediterranean, Final Statement, Marseille, point 12, http://ue2008.fr/webdav/site/PFUE/shared/import/1103_ministerielle_Euromed/Final_Statement_Mediterranean_Union_EN.pdf

[31] Didier Billion et Barah Mikaïl (sous la direction de), « L’Union pour la Méditerranée un an après » IRIS, Paris, 6 juillet 2009, http://www.affaires-strategiques.info/IMG/pdf/Dossier_UPM.pdf

[32] Union for the Mediterranean, Final Statement, Marseille, Point 16.

[33] Council of European Union, Brussels, 16 December 2009 , Union for the Mediterranean , “Draft EU Guidelines and Proposal for a Work Programme for 2010”, http://www.statewatch.org/news/2010/jan/eu-council-mediterranean-guidelines-17594-rev1-09.pdf

[34] The statutes of the Secretariat could not be adopted along with the designation of the SG, because of the lack of agreement between Cyprus and Turkey on the validity of the mechanism for the appointment of the deputies SG (3 appointed by the EU and 3 by the MPCs).

[35] http://www.ufmsecretariat.org/en/history/

[36] European Parliament resolution of 20 May 2010 on the Union for the Mediterranean (2009/2215(INI)), http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2010-0192+0+DOC+XML+V0//EN&language=EN

[37] Medafrique, UE/Méditerranée: entrée en fonctions officielle du Secrétaire général de l’UpM, 1er juin 2010, http://www.medafrique.info/news/show.php?login=&token=&id=1297

[38] Union for the Mediterranean,Final Statement, Marseille. Point 16. b) Funding: The running costs of the Secretariat (support staff, equipment etc) will be funded from an operating grant on a shared and balanced basis by the Euro-Mediterranean partners, on a voluntary basis and the Community budget. Funding from the Community budget will come from existing resources within the ENPI (and other relevant instruments) within the Financial Framework ceilings.

[39] “All the partners of the Union for the Mediterranean are urged to make available their voluntary contributions as soon as the statutes are adopted so that the body can present a preliminary budget for adoption by Senior Officials.”, Draft EU Guidelines and Proposal for a Work Programme for 2010, http://www.statewatch.org/news/2010/jan/eu-council-mediterranean-guidelines-17594-rev1-09.pdf

[40] Štefan Füle European Commissioner for Enlargement and Neighbourhood Policy, Address to the “For’UM” meeting, Union for the Mediterranean “For’UM” meeting Marseille, 27 May 2010, 27 May 2010, http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/269&format=HTML&aged=0&language=EN&guiLanguage=en

[41] Council decision of 26 July 2010 establishing the organisation and functioning of the European External Action Service, OJ L 201, 3.8.2010, pp. 30-40.

[42] First whereas and article 1 of the Council decision of 26 July 2010.

[43] EEAS Organisation, http://www.eeas.europa.eu/background/docs/organisation_en.pdf

[44] Council decision of 26 July 2010, article 4.

[45] Joint Declaration of the Paris Summit for the Mediterranean, 13 July 2008 http://www.ue2008.fr/webdav/site/PFUE/shared/import/07/0713_declaration_de_paris/Joint_declaration_of_the_Paris_summit_for_the_Mediterranean-EN.pdf

[46] Union for the Mediterranean, Final Statement, Marseille, 3-4 November 2008 http://ue2008.fr/webdav/site/PFUE/shared/import/1103_ministerielle_Euromed/Final_Statement_Mediterranean_Union_EN.pdf

[47] See also « Union for the Mediterranean – Role and vision of the EIB», December 2010,  http://www.eib.org/attachments/country/union_for_the_mediterranean_en.pdf

[48] « Développement urbain et Mobilité en Méditerranée », document de travail, p.8. Forum 27 mai 2007, http://www2.ccimp.com/forum/actus.htm

[49] E. Lannon et I. Martin, « Report on Satute and progress of the Euromed Partnership – 2009 », IEMED, 2010, p. 9.

[50] RTAP – Regional Transport Action Plan for the Mediterranean Region 2007-2013,  http://www.euromedtransport.org/monitoring_tool/image/documents/rtap_en.pdf

[51]  IEMed, “Barcelona Euromed Forum union for the Mediterranean: Projects for the future”, IEMed Documents, January 2010, p. 54. http://www.iemed.org/documents/documents4.pdf

[52] RTAP – Regional Transport Action Plan for the Mediterranean Region 2007-2013, p. 5.

[53] RTAP – Regional Transport Action Plan for the Mediterranean Region 2007-2013, p.17.

[54] http://www.enpi-info.eu/mainmed.php?lang_id=450&searchtype=simple&id=6064&id_type=1

[55] http://www.enpi-info.eu/mainmed.php?id=41&id_type=10

[56] IPEMED, Les notes IPEMED, 7 February 2010,  http://www.ipemed.coop/fr/publications-r17/les-notes-ipemed-c48/les-autoroutes-de-la-mer-des-perspectives-prometteuses-en-mediterranee-a184.html

[57] 7th EuroMed Transport Sub Working Group on Motorways of the Sea, 20 November 2009,  http://euromedtransport.org/Fr/image.php?id=1757

[58] For the 5 projects retained in July 2009, Formal Memorandum of Agreements were formally signed in the first months of 2010 between East Mediterranean port partners and their European counterparts : – Egypt : Alexandria / Trieste and Alexandria/ Koper; – Jordan : Aqaba / Genoa; – Syria : Tartus / Livorno; – Lebanon : Beiruth/ Castellon.

[59] First Ministerial Meeting on Sustainable Development Projects, Declaration of the French-Egyptian copresidency, Paris, 25 June 2009, http://www.ufm-water.net/meetings/ministerielle-developpement-durable-paris-25-juin/

[60] Saki Aciman « The Union for the Mediterranean and transport sector », in Barcelona Euromed Forum – Union for the Mediterranean : Projects for the Future” IEMEDDOC, January 2010, p. 55,  http://www.iemed.org/documents/documents4.pdf

[61] See Saki Aciman « The Union for the Mediterranean and transport sector », in Barcelona Euromed Forum – Union for the Mediterranean : Projects for the Future” IEMEDDOC, January 2010, p. 56, http://www.iemed.org/documents/documents4.pdf

[62] http://www.ufm-water.net/meetings/ministerielle-developpement-durable-paris-25-juin/

[63] See the website of the PPRD South Programme: http://www.euromedcp.eu/

[64] Union for the Mediterranean, “Draft EU Guidelines and Proposal for a Work Programme for 2010”, http://www.statewatch.org/news/2010/jan/eu-council-mediterranean-guidelines-17594-rev1-09.pdf

[65] EMUNI Website, http://www.emuni.si/en/strani/29/EMUNI-University.html

[66] Joint declaration of the Paris Summit for the Mediterranean, 13 July 2008, http://www.eu2008.fr/webdav/site/PFUE/shared/import/07/0713_declaration_de_paris/Joint_declaration_of_the_Paris_summit_for_the_Mediterranean-EN.pdf

[67] Speech of Caroline Cornu, Henri Guaino’s assistant, Forum de Paris : « L’UPM ? Elle vit ! Elle avance ! », Forum de Paris avril 2010, http://www.lejmed.fr/Caroline-Cornu-au-Forum-de-Paris-L.html

[68] Peillon Report, http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&reference=A7-2010-0133&language=EN

[69] EP Resolution, 20 May 2010, Point 34

[70] EP Resolution, 20 May 2010, Point 35

[71] EP Resolution, 20 May 2010, Point 21

[72] EP Resolution, 20 May 2010, Point 42

[73]  Le Jmed, http://www.lejmed.fr/Eric-Besson-chez-Ahmad-Massadeh-SG.html

[74] Final Declaration of the 2nd Euro-Mediterranean Ministerial Conference on Tourism, Barcelona, 20 May 2010.http://www.eu2010.es/export/sites/presidencia/comun/descargas/agenda/turismo/UNION_FOR_THE_MEDITERRANEAN_INGLxS_20052010_.pdf

[75] Second Euro-Mediterranean Ministerial Conference on Employment and Labour, Brussels, 21-22 November 2010. http://register.consilium.europa.eu/pdf/en/10/st17/st17042.en10.pdf

[76] First meeting of the Euro-Mediterranean Social Dialogue Forum, 11 March 2010, Barcelona – Synthesis report, ec.europa.eu/social/BlobServlet?docId=6118&langId=en

[77] Union for the Mediterranean, Second Ministerial Conference on strengthening the role of women in society, Marrakesh, 11th and 12th of November 2009, http://eeas.europa.eu/euromed/women/docs/2009_11_conference_en.pdf

[78] Point 34 of the Conclusions

[79] Point 42 of the Conclusions.

[80] http://www.euromedgenderequality.org/

[81] See the Commission Staff Working Document

[82] See the Global Cooperation Agreement EU – Mexico (Council Decision of 28 September 2000 concerning the conclusion of the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part (2000/658/EC)

 OJ L 276, 28/10/2000, p.44, http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32000D0658).

[83] European Commission, DG Trade, Overview of FTA and other trade negotiations, 14 September 2011, http://trade.ec.europa.eu/doclib/docs/2006/december/tradoc_118238.pdf

[84] Jo-Ann Crawford and Roberto V. Fiorentino The Changing Landscape of Regional Trade Agreements, Discussion Paper n° 8, World Trade Organization, Geneva, Switzerland, pp. 6 and 7, http://www.wto.org/english/res_e/booksp_e/discussion_papers8_e.pdf

[85] Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, Saint Christopher and Nevis, Suriname, Trinidad and Tobago

[86] European Commission, DG Trade, “The Euro-Mediterranean Free Trade Area – State of play », Nov 2010 http://trade.ec.europa.eu/doclib/docs/2010/november/tradoc_146863.pdf

[87] European Invetment Bank, « Annual Report FEMIP 2010 », http://www.eib.org/attachments/country/femip_annual_report_2010_en.pdf

[88] See on this topic, Cremed, Euro-Mediterranean Trade Integration and Its Relationship to Trade Liberalisation Processes, Mediterranean Year Book 2010, IEMed, Barcelona, 2011, http://www.iemed.org/anuari/2010/aarticles/CREMED_trade_en.pdf

[89] See Information Note of the European Parliament, « Bilan des relations commerciales entre l’Union européenne et les pays méditerranéens », http://www.europarl.europa.eu/meetdocs/2009_2014/documents/inta/dv/bilanrelationscommerciales_ue-med_/bilanrelationscommerciales_ue-med_fr.pdf

[90] Height Euro-Mediterranean Ministerial Trade Conference, Brussels, 9 December 2009, Conclusions, http://trade.ec.europa.eu/doclib/docs/2009/december/tradoc_145575.pdf

[91] Joint Communication of the High Representative of the EU for Foreign Affairs and Security policy and the European Commission « A new response to a changing Neighbourhood » COM(2011) 303, Brussels, 25 May 2011

[92] European Commission, DG Trade, http://trade.ec.europa.eu/doclib/docs/2006/december/tradoc_118238.pdf

[93] Communication« A new response to a changing Neighbourhood »., Brussels, 25th May 2011 http://ec.europa.eu/world/enp/pdf/com06_726_en.pdf

[94] Communication « A new response to a changing Neighbourhood », Brussels, 25th May 2011, p. 15, http://ec.europa.eu/world/enp/pdf/com06_726_en.pdf

[95] Communication « A new response to a changing Neighbourhood », Brussels, 25th May 2011, p. 8 and 9.

[96] Cremed, « Euro-Mediterranean Trade Integration and its relationship to Trade Liberalisation Processees », Mediterranean Yearbook 2010, IEMed, 2010, http://www.iemed.org/anuari/2010/aarticles/CREMED_trade_en.pdf

[97] European Investment Bank, « FEMIP 2010 Annual Report », http://www.eib.org/attachments/country/femip_annual_report_2010_en.pdf

[98] EIB, « Union for the Mediterranean – Role and vision of the EIB », December 2010, p. 3. http://www.eib.org/attachments/country/union_for_the_mediterranean_en.pdf

[99] Ibid p. 3.

[100] The financing co-development in the Mediterranean, Final Report, High level Group chaired by Charles Milhaud, http://www.tresor.bercy.gouv.fr/publi/rap_milhaud1009_en.pdf

[101] See Inframed website,  http://www.inframed.com/cms/Genesis.html?PHPSESSID=efdb662afecc5cee160a1833b47c3d3c

[102] « As a major contribution to the Union for the Mediterranean: InfraMed Infrastructure Fund is launched with EUR 385 millions at First Close The Fund volume is targeted at EUR 1 billion» , BEI/10/78, 26 May 2010 http://europa.eu/rapid/pressReleasesAction.do?reference=BEI/10/78&format=HTML&aged=1&language=EN&guiLanguage=en

[103] http://www.eib.org/attachments/inframed-note-de-presentation-en_fin.pdf

[104] Ibid.

[105] 8th Union for the Mediterranean Trade Ministerial Conference, Brussels, 9 December 2009, Conclusions, http://trade.ec.europa.eu/doclib/press/index.cfm?id=472&serie=279&langId=en

[106] Joint Conclusions of the Union for the Mediterranean ECOFIN and FEMIP Ministerial Meeting (Brussels, 18 May 2010), http://register.consilium.europa.eu/pdf/en/10/st18/st18154.en10.pdf

[107] 9th Union for the Mediterranean Trade Ministerial Conference, Brussels, 11 November 2010, Chair’s summary of discussions, http://trade.ec.europa.eu/doclib/docs/2010/november/tradoc_146988.pdf

[108] Annex 2 « Working priorities to strengthen Euro-Mediterranean trade relations during 2011 »,http://trade.ec.europa.eu/doclib/docs/2010/november/tradoc_146990.pdf

[109] Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument, OJ L 310, 9.11.2006, pp. 1–14.

[110] Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Palestinian Authority of the West Bank and Gaza Strip, Russian Federation, Syria, Tunisia and Ukraine.

[111] Report on the Euro-Mediterranean Partnership « Status & Progress 2009 », Erwan Lannon & Iván Martín, IEMED, 2010, http://www.iemed.org/publicacions/10_02_25_Report_BCN_Progress_Lannon_Martin.pdf

[112] Foreign Affairs Comittee, Rapporteur : Konrad Szymański, 28 January 2009.

[113] Report on the review of the European Neighbourhood and Partnership Instrument, 28 January 2009, point 6.

[114] Report on the review of the European Neighbourhood and Partnership Instrument, 28 January 2009, point 15.

[115]  Opinion of the Committee on budgets annexed to the EP report on  the review of the European Neighbourhood and Partnership Instrument, Rapporteur : Simon Busuttil.

[116]  Opinion of the Committe on regional development on  the review of the European Neighbourhood and Partnership Instrument, Rapporteur : Petru Filip, Point 3.

[117]  The Mid-Term Review of ENPI Strategy Papers and Indicative Programmes, Information Note for Civil Society Organisations.

[118] European Commission, « EU strengthens the European Neighbourhood Policy with increased funding for the period 2011-2013 », IP/10/221, Bruxelles, le 2 March 2010, http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/221&format=HTML&aged=0&language=FR&guiLanguage=en

[119] ENPI Regional Strategy Paper (2007-2013) and Regional Indicative Programme (2007-2010) for the Euro-Mediterranean Partnership, http://ec.europa.eu/world/enp/pdf/country/enpi_euromed_rsp_en.pdf

[120] European Commission Decision C(2010)5136 of 4 August 2010 approving the 2010 Annual Action Programme for the Mediterranean region to be financed under Article 19 08 01 01 of the general budget of the European Union.

[121] Annual Action Programme for the Neighbourhood South- Action Fiches, http://ec.europa.eu/europeaid/documents/aap/2010/af_aap_2010_enpi-s.pdf

[122] European Commission Europaid, « Our Neighbours: Panorama of Regional Programmes and Projects in the Mediterranean Countries- 2010 », 2010, http://ec.europa.eu/europeaid/where/neighbourhood/documents/infonotes_south_2010_en.pdf

[123] European Commission, Europaid, Regional Indicative Programme (2011-2013) for the Euro-Mediterranean Partnership, http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/enpi-south/documents/regional_indicative_programme_2011-2013_en.pdf

[124] Conclusions of the Conference of the Ministers for Industry of the European Union for the Mediterranean , Nice, 5 and 6 November 2008, http://ec.europa.eu/enterprise/policies/international/files/conclusions_of_the_conference_en.pdf

[125] Euro-Mediterranean industrial cooperation 2009-2010 work programme,  http://ec.europa.eu/enterprise/policies/international/files/2009_2010_work_programme_en.pdf

[126] Euro-Mediterranean industrial cooperation – List of activities implemented in 2009-2010,  http://ec.europa.eu/enterprise/policies/international/files/2009-2010-activity-report_en.pdf

[127] Euro-Mediterranean Charter for Entreprise,  http://ec.europa.eu/enterprise/policies/international/files/euromedcharterf1949_fr.pdf

[128] Report on the implementation of the Euro-Mediterranean Charter for Entreprise, 2008 enterprise policy assessment

[129] http://ec.europa.eu/enterprise/policies/international/files/2009-2010-activity-report_en.pdf

[130] Final Report – Meeting of the Working Party on Euro-Mediterranean industrial cooperation, Brussels, 10-11 February 2010, http://ec.europa.eu/enterprise/policies/international/files/2010_02_10_11_final_report_en.pdf

[131] http://ec.europa.eu/enterprise/policies/international/files/meeting-26-october-2010-presentations-corman_en.pdf

[132] European Commission, Europaid, « Regional Cooperation – An overview of programmes and projects »,  http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/documents/infonotes_enpisouth_regional_cooperation_en.pdf

[133] http://ec.europa.eu/enterprise/policies/international/files/2009-2010-activity-report_en.pdf

[134] http://ec.europa.eu/enterprise/policies/international/files/2009_2010_work_programme_en.pdf

[135]  http://www.enterprise-europe-network.ec.europa.eu/index_en.htm

[136] http://ec.europa.eu/enterprise/policies/international/files/2009_2010_work_programme_en.pdf

[137] http://ec.europa.eu/enterprise/policies/international/files/2009-2010-activity-report_en.pdf

[138] http://ec.europa.eu/enterprise/policies/international/files/2009_2010_work_programme_en.pdf

[139] http://ec.europa.eu/enterprise/policies/international/files/2009-2010-activity-report_fr.pdf

[140] http://ec.europa.eu/enterprise/policies/international/files/conclusions_of_the_conference_en.pdf

[141] Barcelona euro-mediterranean Business Declaration 2010,http://www.ueapme.com/IMG/pdf/100604-JointDeclarationEuroMedBarcelona_FINAL_EN.pdf

[142] European Consultants Organisation (ECO), Study in Support of the implementation of the Mediterranean Business Development Initiative, March 2010, http://www.eib.org/attachments/country/study_in_support_of_the_implementation_o_mbdi_en.pdf

[143] Joint Conclusions of the Union for the Mediterranean ECOFIN and FEMIP Ministerial Meeting (Brussels, 18 May 2010), http://register.consilium.europa.eu/pdf/en/10/st18/st18154.en10.pdf

[144] Declaration of High-Level CEPS-IEMED Working Group1, « SME Financing in the Mediterranean: Meeting the Challenges Ahead”, http://www.iemed.org/documents/10_05_07_Declaracio_pymes.pdf

[145] http://www.tresor.bercy.gouv.fr/publi/rap_milhaud1009_en.pdf

[146] http://www.eib.org/attachments/country/femip_smes_2011_en.pdf

[147] http://www.ueapme.com/IMG/pdf/100604-JointDeclarationEuroMedBarcelona_FINAL_EN.pdf

[148] See the website « Cooperation in the water sector – Union for the Mediterranean »,http://www.ufm-water.net/

[149] http://ec.europa.eu/environment/enlarg/med/horizon_2020_en.htm

[150] European Commission, DG Environment, http://ec.europa.eu/environment/enlarg/med/pdf/cairo_declaration_en.pdf

[151] Annex to the Joint Declaration of the Paris Summit, http://www.ue2008.fr/webdav/site/PFUE/shared/import/07/0713_declaration_de_paris/Joint_declaration_of_the_Paris_summit_for_the_Mediterranean-EN.pdf

[152] Horizon 2020 –Timetable for the first phase (2007-2013) Annex to the Cairo Declaration of the Euro-Mediterranean Ministerial Conference on the Environment 20 November 2006, http://ec.europa.eu/environment/enlarg/med/pdf/2020_timetable_phase1_en.pdf

[153] http://www.uni-mannheim.de/edz/pdf/sek/2009/sek-2009-1118-en.pdf

[154] http://ec.europa.eu/environment/enlarg/med/pdf/mehsip_report.pdf

[155] Regarding pollution reduction projects, the Commission has provided €800.000 of EC budgetary funding through the FEMIP support fund, to finance the first phase of the Mediterranean Hot-Spot Identification Programme (MeHSIP) Project Preparation and Implementation Facility (PPIF). http://www.statewatch.org/news/2010/jan/eu-council-mediterranean-guidelines-17594-rev1-09.pdf

[156] http://www.eib.org/attachments/press/2010-060-fiche-thematique-2010-femipfr.pdf

[157] http://www.eib.org/attachments/press/2010-060-fiche-thematique-2010-femipfr.pdf

[158] Declaration of the French-Egyptian copresidency ,The First Ministerial Meeting on Sustainable Development Projects,Paris – June 25th, 2009, http://www.ufm-water.net/meetings/ministerielle-developpement-durable-paris-25-juin/conclusion_ministerial_20090625_FR.pdf

[159] http://www.commed-cglu.org/spip.php?article347

[160] http://www.medaquaministerial2008.net/dcl/Water_-_EN_FINAL__265-08_.pdf

[161] composed of government designated representatives of national authorities in charge of water policy of Euro-Mediterranean countries having the capacity to take decisions

[162] Annex 1. of the Declaration of the IV Euro-Mediterranean Ministerial Conference on Water (Barcelona, 13 April 2010) Union for Mediterranean, http://www.commed-cglu.org/spip.php?article451

[163] Annex1 par 3 of the final draft“The Strategy aims at contributing, inter alia, to preserving scarce water resources, improving water governance, enhancing water and sanitation services and their durability, safeguarding public health, preserving the ecosystems’ functions, promoting sustainable development, poverty eradication, peace, international security and justice, respect for human rights and gender equity, eradication of the root causes of difficulties [including in occupied territories][opposition from Israel], and social exclusion in the Region.”

[164] http://www.eib.org/attachments/country/femip_water_supply_en.pdf

[165] http://www.eib.org/projects/loans/sectors/water,-sewerage.htm?start=2009&end=2010&region=mediterranean-countries&country=

[166] http://www.medawater-rmsu.org/

[167] http://www.enpi-info.eu/main.php?id=8&id_type=3&lang_id=469

[168] http://www.enpi-info.eu/mainmed.php?id=330&id_type=10

[169] The SMAP programme encouraged integrated coastal zone management around the Mediterranean. The budget was 15 million euros for 2005-2008, http://www.enpi-info.eu/mainmed.php?id=32&id_type=10&lang_id=450

[170]  See the website: http://www.medawater-rmsu.org/

[171] Actions undertaken: – Conducts capacity building activities. – Supports the implementation of demonstration projects in integrated water management, coastal zone management and H2020 – Identifies good practices and success stories in the region and elsewhere – Organises events aiming to mobilise Partner Countries and donors, discuss thematic issues, harmonise policies, facilitate dialogue. – Mobilise finance to support infrastructure development – Develops a communication and awareness-raising strategy targeting decision makers and stakeholders.

[172] http://www.med-enec.com/docs/Euro-Med%20Energy%20Partnership%2012-07-Cyprus.pdf

[173] http://ec.europa.eu/world/enp/pdf/progress2010/sec10_513_en.pdf

[174] See ENPI Info Center, http://www.enpi-info.eu/mainmed.php?id=25&id_type=10

[175]  See ENPI Info Center, http://www.enpi-info.eu/mainmed.php?id_type=10&id=302

[176] See ENPI Info Center, http://www.enpi-info.eu/mainmed.php?id=26&id_type=10

[177] See ENPI Info Center, http://www.enpi-info.eu/mainmed.php?id=303&id_type=10

[178] See ENPI Info Center, http://www.enpi-info.eu/mainmed.php?id=304&id_type=10&lang_id=450

[179] http://www.developpement-durable.gouv.fr/IMG/spipwwwmedad/pdf/Presentation_Plan_Solaire_Mediterraneen_cle0a6c26-1.pdf

[180] « Le plan solaire méditerranéen et la sobriété énergétique : un nouveau paradigme en Méditerranée », Samir Allal et Houda Ben Jannet Allal, in « Energy and global economic crisis : The chance for progress »,10 papers for Barcelona 2010, IEMED – ISS, oct 2009, p. 60, http://www.iemed.org/publicacions/10papers2010_2.pdf

[181] Mediterranean solar Plan – Strategy Paper, http://ec.europa.eu/energy/international/international_cooperation/doc/2010_02_10_mediterranean_solar_plan_strategy_paper.pdf

[182] http://www.enpi-info.eu/list_projects_med.php?subject=5

[183] http://www.enpi-info.eu/mainmed.php?id_type=4&id=18579

[184] Recall that at the FEMIP Ministerial Meeting combined with the ECOFIN Council in October 2008, FEMIP has been mandated to coordinate financially the Mediterranean Solar Plan.

[185]  “FEMIP and the energy challenge in the Mediterranean”, 31 May 2010, http://www.eib.org/attachments/country/femip_energy_en.pdf

[186] European Commission, Europaid, http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/irc/investment_projects_south_fr.htm

[187] Spanish Presidency, Conference on the Mediterranean Solar Plan, 11-12 May 2010, Valencia, http://www.mediterraneansolarplan-conference.es/index.php/lang.en

[188] Spanish Presidency, Conference on the Mediterranean Solar Plan, 11-12 May 2010, Valencia, Point 10, http://www.mediterraneansolarplan-conference.es/uploads/documentos/documentos_PSM_necesidad_de_un_paso_adelante_485be6a3.pdf

[189] http://www.ipemed.coop/spip.php?article540

[190] Declaration of the French-Egyptian copresidency ,The First Ministerial Meeting on Sustainable Development Projects,Paris – June 25th, 2009

[191] http://www.desertec.org/

[192] This project, signed in Paris on 5th July 2010, includes thirteen companies

 www.transgreen.eu/

[193] Presidency summary, http://www.mediterraneansolarplan-conference.es/uploads/documentos/documentos_20100602_MSP_Conf_Conclusions_fdedc4ab.pdf

[194] http://ec.europa.eu/environment/enlarg/med/3rd_conf_en.htm

[195] Communication from the Commission to the Council and the European Parliament – Towards an Integrated Maritime Policy for better governance in the Mediterranean (COM/2009/0466 final), http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009DC0466:EN:NOT

[196] Proposal for a regulation of the European Parliament and of the Council “establishing a Programme to support the further development of an Integrated Maritime Policy », SEC(2010) 1097 final, http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2010&nu_doc=0494

[197]  SafeMed Project, http://www.safemedproject.org

[198] Safemed Project, http://www.safemedproject.org/activites-1/le-projet-safemed-ii-aide-les-beneficiaries-a-se-preparer-au-vimsas

[199] See the website Euromed Transport project, http://www.euromedtransport.org/49.0.html?&L=1

[200] Final Statement, Marseille, 3-4 November 2008, http://ue2008.fr/webdav/site/PFUE/shared/import/1103_ministerielle_Euromed/Final_Statement_Mediterranean_Union_EN.pdf

[201] p.14, http://ec.europa.eu/world/enp/pdf/progress2010/sec10_513_en.pdf

[202] http://register.consilium.europa.eu/pdf/en/10/st07/st07832.en10.pdf

[203] European Parliament resolution of 20 May 2010 on the Union for the Mediterranean, point 22.

[204] Les notes IPEMED, n)6, january 2010, http://www.ipemed.coop/adminIpemed/media/fich_article/1316526334_LesnotesIPEMED_6B_FoodSecurity_ENG.pdf