1.

The programme established by Regulation (EC) No 1488/96 (hereinafter referred to as the ‘MEDA programme’) represents the European Community's main financial instrument for the implementation of the Euro-Mediterranean partnership. The programme has the main purpose of encouraging and supporting the reform of the economic and social structures of the Mediterranean partners, notably in preparation for free trade with the European Community.

2.

The MEDA programme is founded on the respect for democratic principles and the rule of law, as well as the respect for human rights and fundamental freedoms, of which they are an essential element and whose violation would justify the taking of appropriate measures.

3.

The MEDA programme is to build on the experience gained through the operation of the instruments of the redirected Mediterranean policy, namely the bilateral financial protocols and a facility for regional cooperation. After four generations of financial protocols with the Mediterranean partners it has become necessary to seek an improvement in the system of delivery of cooperation activities. If the MEDA programme is to be capable of responding to the challenge of significantly intensified cooperation, both in new and existing domains, then it is necessary to increase flexibility in the programming. This is to avoid dispersion of the cooperation effort over too wide a number of activities and beneficiaries and to give an incentive for rapid and efficient implementation of commitment and payment credits. Equally, the MEDA programme must be capable of adaptation over time as lessons are learned through its implementation and as the needs and priorities of the Mediterranean partners evolve in the light of socioeconomic challenges. In particular, a sufficiently high degree of flexibility for the amounts allocated to untied budgetary support in the indicative programmes should be maintained in order to adapt the financial allocations to the pace of reform and to the progress achieved in macroeconomic stabilization.

4.

The extra flexibility of the MEDA programme needs to be complemented by a clear programming methodology in order to enhance effectiveness of planning and implementation. In particular it is necessary to give the partners an indication of the resources which are to be made available over the coming years. Such multiannual programming will increase the possibilities for interventions having a medium-term policy impact. Regulation (EC) No 1488/96 (hereinafter referred to as the MEDA Regulation) contains a financial reference figure of ECU 3 424,5 million for the period 1995 to 1999 (1), which is to be partitioned between bilateral programmes and a regional programme. The MEDA indicative programmes should identify activities which contribute to the attainment of the wider objectives of the partnership. However, it is an important principle of the new programming approach that these may be revised, in accordance with implementation performance, together with the accompanying indicative bilateral financial allocations. Care will be taken to ensure transparency, adequate project monitoring and overall consistency of action undertaken using budget appropriations.

5.

Ultimately the successful socioeconomic development of the Mediterranean partners will depend on their own efforts. Thus, to be effective the indicative programmes must be based on a shared understanding of the economic, social and political challenges facing each partner and the region as a whole. A regular and rich dialogue both at bilateral and regional level is therefore a precondition for the success of the MEDA programme. The indicative programmes will concentrate on a limited number of priority sectors to be fixed in dialogue with these countries as well as in coordination with the bilateral efforts of Member States and other donors and in particular on those areas where the Community can make the most positive contribution by drawing on its stores of experience and know-how. With this aim the Commission shall take care to provide for the necessary coordination with the Member States and other donors in its programming and programme implementation so as to ensure the best synergies with their respective activities and interventions. The Commission and the Member States will consult closely throughout the design and drafting of the indicative programmes and during the formulation of individual project proposals. Each indicative programme and project proposal shall contain a reference to relevant studies on past experience and results.

6.

As it pursues the goal of sustainable economic and social development the Commission will, in the analysis contained within the indicative programmes and in its identification and design of programmes of cooperation, consider carefully the issues of environmental equilibrium, financial and economic viability, sustainability, gender repercussions and local institutional capacity (including those for research and technological development and technology transfer). The Commission, further in its analysis, will consider carefully the effectiveness of past Community activities, and the actions being supported by Member States and other donors. Such target groups as the neediest strata of the population, women and youth should receive particular attention in the analysis. At a bilateral level, the MEDA programme will provide support to the partners in the fields of economic transition and strengthening of socioeconomic equilibrium. Environmental impact assessment forms will be required for the relevant projects of bilateral and regional programmes, according to Community legislation in this field. The Commission should include appropriate conditionality in the project proposal and ensure coherence with Bretton Woods' criteria when necessary, in conformity with Annex II to the MEDA Regulation.

7.

8.

Support will be given through the measures set out in the MEDA Regulation. Furthermore, from the ongoing dialogue with the partners it has been possible to develop the following general guidelines.

9.

The activities undertaken at bilateral and regional level are to be complementary and/or mutually reinforcing to enable the political and economic impact of the MEDA programme to be sustained and the objectives jointly adopted in the Barcelona Declaration more effectively reached. Drawing from its own experience, it is the Union's view that the future prosperity and stability of its partners rest on increased cooperation between themselves in the economic, social and political spheres. The elimination of barriers will foster economies of scale and greater market opportunities thus encouraging investment, facilitating the exchange of ideas and increasing mutual understanding. The regional indicative programme will reflect the progress made in the framework of the Barcelona process in taking action at a multilateral level on issues of common concern, as laid down in the agreed declaration, and will strengthen the activities in support of decentralized cooperation. However, regional activities will not displace funding of bilateral activities. Each indicative bilateral programme will include information on all activities, financed under any Community regional cooperation programme which affects or will affect that particular partner country.

10.

In order to reach target populations more effectively and to widen the participation in the MEDA programme to the different parts of civil society that are included in the scope of the Euro-Mediterranean partnership, the Commission will strive to design and implement its activities together with the actors who are directly concerned and who have the expertise necessary for successful design and implementation of interventions. The Commission will pay close attention to the careful management and the periodic review of the impact of such programmes.

11.

Concerning the bilateral programmes, the priorities are to be decided taking into account the stage of development of each country's economy and society as well as the capacity of its institutions. In the light of the conclusion or implementation of association agreements, the indicative programmes are to be decided taking into account the needs of the Mediterranean partners, their capacity to absorb funds and the progress made in structural reform process, as well as the priorities identified with them, in particular those emerging from the conclusions of the economic dialogue and from the association agreements themselves. A considerable effort will be made to promote programmes which could contribute to the development of democracy and respect for human rights. Among the aspects and fields of economic and social development suitable for financial support, the following are general indications of the main thrust of bilateral indicative programmes between the Community and individual Mediterranean partners, during the first years of the MEDA programme.

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13.

14.

The programme of Turkey will prioritize interventions related, on the one hand, to the necessary economic adaptation and, on the other hand, support to social services and the environment, and will have the general objective of supporting the establishment of a customs union. Thus measures are to be taken to promote the competitiveness of SMEs and to develop the administration through institutional cooperation. Moreover, projects and programmes in the field of the environment shall be undertaken. Activities in the social sectors shall focus on the needs of the poor and on education and health.

15.

The Mediterranean partner countries need help to prepare for free trade with the Community and to raise the standard of living. The wider objective of Community interventions will be to increase the competitiveness of the partners' economies, with a view to achieving sustainable economic growth, in particular through improved export performance.

To this end assistance will be given in particular in the following fields:

16.

In order to alleviate the short-term costs of economic transition and better prepare societies for the future, it is particularly important that this process should be accompanied by appropriate measures in the field of social policy.

17.

The development of civil society should be supported through measures to promote human rights, democratization and the rule of law. Support for such measures may include decentralized cooperation. Cooperation in the field of research and technological development and technology transfer is to be stimulated, bringing in contact private and public actors. Cultural activities are to be supported which promote dialogue and exchange between cultural associations and networks. Trans-Mediterranean information and communication activities should be strengthened in the framework of the development of a truly Euro-Mediterranean information society. Social partners and non-governmental organizations should be encouraged to play an active role.

18.

Regional cooperation shall be complementary to bilateral cooperation and shall address the three main areas of the Euro-Mediterranean partnership. Among the aspects and fields of economic and social development suitable for financial support mentioned in the Barcelona Declaration and in Annex II to the MEDA Regulation, the following are indications of the main thrust of current regional indicative programmes between the Community and Mediterranean partners. Due account shall be taken of the progress made at the meetings organized in the context of the follow-up to the Barcelona inter-ministerial conference. The overall aim shall be to encourage better understanding between the partners through increased knowledge of regional problems in the political, economic, social and cultural fields, facilitating the exchange of best practice and transfer of know-how and promotion of joint projects of common interest. Furthermore the European Union will continue to provide support to the Middle East Peace Process.

19.

In the political field, as in the case of bilateral programmes, through measures falling within the scope of the MEDA Regulation, support may be given to:

20.

In the economic and financial fields assistance will be given to prepare for the free trade area by promoting competitiveness and facilitating the economic transition in particular in the fields of customs regulations, rules of origin, statistics, norms and veterinary and phyto-sanitary regulations, as well as banking and stock markets.

Appropriate measures will be taken in the fields of transport, energy (where the Euro-Mediterranean Energy Forum will act as a coordinating instrument), telecommunications and information technology, regional cooperation, tourism, the environment, science and technology, water and fishing. Networking among research and development centres and economic operators to facilitate the transfer of know-how and the development of joint ventures and business opportunities will also be supported.

21.

In the social and cultural spheres, decentralized programmes of exchanges between the civil societies of the European Union and the Mediterranean partners will be implemented in the fields of academia, media, local government, technology and other fields of mutual interest.

Further measures such as dialogues, projects of common interest or networking will be taken, as identified in the framework of the Euro-Mediterranean partnership, to support local government, cultural dialogue, media, youth exchanges, exchanges between civil society. Research and technology development, technology transfer, information and communication activities will be strengthened through recourse to modern information technology.

Finally, technical assistance may be given with the aim of combating drugs, terrorism and international crime. Measures could address the exchange of information and experience, the compatibility of data, and the strengthening of legal systems.

22.

The Commission shall pay the greatest attention to the careful management of the bilateral and regional indicative programmes and the individual projects and programmes financed through them. They will be subject to periodic review and ex-post evaluation. Such analyses will include an assessment of the extent to which specific objectives have been realized, the economic viability and cost-effectiveness of the various activities, as well as their contribution to the overall Euro-Mediterranean partnership. Particular attention will also be paid to the way in which the indicative programmes and projects have addressed the key issues set out in these guidelines. The results of such analyses will be shared with the Member States.