EU: Bulgaria and Romania will face strict monitoring for up to three years after they join the EU on January 1st, 2007, to ensure they implement reforms further.
The European Commission yesterday outlined a number of areas of "continuing concern" in both states and threatened to impose sanctions unless these were tackled.
In its final monitoring report on Bulgaria and Romania's preparedness for EU membership, the commission highlighted problems in both states with the fight against corruption, judicial reform and the establishment of payment agencies for EU funds.
However, the EU executive concluded they had made further progress in preparing for membership and demonstrated "their capacity to apply EU principles and legislation".
The issues of greatest concern is in the field of justice and home affairs in Bulgaria, where the commission noted "contract killings of persons rarely resulted in successful investigations and prosecutions". It also urged Bulgaria to adopt new constitutional amendments removing any ambiguity regarding judicial independence.
Despite being praised for implementing a range of reforms in the field, Romania was urged to set up a national integrity agency capable of properly scrutinising politicians assets.
The commission also warned both states that there was a real risk that payment agencies to disburse EU agricultural funding would not be up and running in time for accession. The commission said it would set up a special regulatory mechanism to ensure that there were no undue payments made in the first years of accession.
The report also lists a series of "safeguard measures" or sanctions that can be applied if either country fails to implement reforms. For example, the commission will decide in 2007 whether to withdraw 25 per cent of agricultural aid depending on whether the proper payment agencies have been established.
In the judicial field, it may suspend the obligation of existing EU states to recognise court judgments or executive warrants in both states. Bulgarian and Romanian food products could also face an EU export ban if they do not manage to implement systems to ensure they comply with EU food safety laws. The report says the commission will undertake strict monitoring of Romania and Bulgaria in these areas to ensure reforms are implemented. The first report will be issued on March 31st, 2007, and monitoring will continue for three years.
The commission's recommendation means that both states will almost certainly be accepted into the EU club in January following ratification of the accession treaties in all EU states. France, Germany, Denmark and Belgium are yet to ratify the accession treaty, but few observers expect this to be a hurdle. EU leaders are expected to sign off on membership at a summit in December, which ironically is also likely to signal the need to slow down enlargement and insist on far tougher entry criteria.
The emphasis in the report on applying sanctions to Romania and Bulgaria if they fail to implement more reforms demonstrates a change of political climate in the EU.
Many old member states, particularly France and the Netherlands, which rejected the EU constitution in referendums last year, are suffering from "enlargement fatigue".
Public concern about immigration prompted by the previous "big bang" enlargement in May 2004 and the increased stress placed on the EU institutions is causing political leaders to question the merits of further enlargement.
Commission president José Manuel Barroso indicated this week that institutional EU reform is required before any future enlargement, putting in jeopardy Croatia's possible entry in 2009/2010.
Meanwhile, France has changed its constitution to ensure a referendum take places before a new enlargement is agreed after Croatia.
Indeed, Romania and Bulgaria are lucky that under their accession treaties signed in 2005 the commission only had the power to delay EU entry by a year until January 1st, 2008. This meant that even though both states still have reforms to implement, the commission decided it was better to encourage reform rather than risk destabilising the governments and upsetting public opinion by recommending a one-year delay.
The queue of states seeking EU membership - Turkey, Former Yugoslav Republic of Macedonia, Bosnia, Serbia and Ukraine to name a few - will face tougher entry criteria due to enlargement scepticism. For example, Turkey and Croatia must complete 35 negotiating chapters (areas where they must ensure their law complies with EU law) before they can join.
In comparison, Romania and Bulgaria had to complete just 31.