Turkey Progress Reports En1

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    COMMISSION OF THE EUROPEAN COMMUNITIES

    Brussels, 6.11.2007SEC(2007) 1436

    COMMISSION STAFF WORKING DOCUMENT

    TURKEY 2007 PROGRESS REPORT

    accompanying the

    COMMUNICATION FROM THE COMMISSION

    TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

    Enlargement Strategy and Main Challenges 2007-2008

    {COM(2007) 663 final}

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    TABLE OF CONTENTS

    1. Introduction................................................................................................................ 4

    1.1. Preface......................................................................................................................... 4

    1.2. Context ........................................................................................................................ 4

    1.3. Relations between the EU and Turkey..................................................................... 4

    2. Political criteria and enhanced political dialogue ................................................... 6

    2.1. Democracy and the rule of law ................................................................................. 6

    2.2. Human rights and the protection of minorities..................................................... 11

    2.3. Regional issues and international obligations ....................................................... 24

    3. Economic criteria ..................................................................................................... 26

    3.1. The existence of a functioning market economy ................................................... 26

    3.2. The capacity to cope with competitive pressure and market forces within the

    Union ......................................................................................................................... 30

    4. Ability to assume the obligations of membership ................................................. 32

    4.1. Chapter 1: Free movement of goods....................................................................... 32

    4.2. Chapter 2: Freedom of movement for workers..................................................... 34

    4.3. Chapter 3: Right of establishment and freedom to provide services .................. 35

    4.4. Chapter 4: Free movement of capital..................................................................... 36

    4.5. Chapter 5: Public procurement.............................................................................. 37

    4.6. Chapter 6: Company law......................................................................................... 38

    4.7. Chapter 7: Intellectual property law...................................................................... 39

    4.8. Chapter 8: Competition policy................................................................................ 40

    4.9. Chapter 9: Financial services.................................................................................. 41

    4 10 Ch t 10 I f ti i t d di 43

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    4.17. Chapter 17: Economic and monetary policy ......................................................... 51

    4.18. Chapter 18: Statistics............................................................................................... 52

    4.19. Chapter 19: Employment and social policy........................................................... 53

    4.20. Chapter 20: Enterprise and industrial policy........................................................ 55

    4.21. Chapter 21: Trans European networks ................................................................. 56

    4.22. Chapter 22: Regional policy and coordination of structural instruments.......... 56

    4.23. Chapter 23: Judiciary and fundamental rights..................................................... 58

    4.24. Chapter 24: Justice, freedom and security ............................................................ 63

    4.25. Chapter 25: Science and research .......................................................................... 67

    4.26. Chapter 26: Education and culture........................................................................ 68

    4.27. Chapter 27: Environment........................................................................................ 68

    4.28. Chapter 28: Consumer and health protection....................................................... 70

    4.29. Chapter 29: Customs union..................................................................................... 71

    4.30. Chapter 30: External relations ............................................................................... 73

    4.31. Chapter 31: Foreign, security and defence policy................................................. 74

    4.32. Chapter 32: Financial control................................................................................. 76

    4.33. Chapter 33: Financial and budgetary provisions.................................................. 77

    STATISTICAL ANNEX........................................................................................................ 78

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    1. INTRODUCTION

    1.1. Preface

    Following the conclusions of the Luxembourg European Council in December 1997, theCommission has reported regularly to the Council and the Parliament.

    This report on progress made by Turkey in preparing for EU membership largely follows thesame structure as in previous years. The report:

    briefly describes the relations between Turkey and the Union;

    analyses the situation in Turkey in terms of the political criteria for membership;

    analyses the situation in Turkey on the basis of the economic criteria for membership;

    reviews Turkey's capacity to assume the obligations of membership, that is, the acquis

    expressed in the Treaties, the secondary legislation, and the policies of the Union.The period covered by this report is from 1 October 2006 to early October 2007. Progress ismeasured on the basis of decisions taken, legislation adopted and measures implemented. As arule, legislation or measures which are under preparation or await Parliamentary approvalhave not been taken into account. This approach ensures equal treatment across all reports and

    permits an objective assessment.

    The report is based on information gathered and analysed by the Commission. In addition,many sources have been used, including contributions from the government of Turkey, theMember States, European Parliament reports1, and information from various international andnon-governmental organisations.

    The Commission draws detailed conclusions regarding Turkey in its separate communicationon enlargement2, based on the technical analysis contained in this report.

    1.2. Context

    The Helsinki European Council of December 1999 granted the status of candidate country toTurkey. Accession negotiations with Turkey were opened in October 2005.

    The Association Agreement between Turkey with the then EEC was signed in 1963 andt d i f i D b 1964 T k d th EU f d t i i 1995

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    In December 2006 the Council decided that negotiations will not be opened on eight chaptersrelevant to Turkey's restrictions regarding the Republic of Cyprus and that no chapter will be

    provisionally closed until the Commission confirms that Turkey has fully implemented theAdditional Protocol to the Association Agreement.

    At the same time, the Council emphasised that the screening process would continue, and thatchapters for which technical preparations have been completed would be opened inaccordance with established procedures, in line with the Negotiating Framework. So far,negotiations have been opened on 4 chapters (science and research, industrial policy,

    statistics, financial control) and provisionally closed on one (science and research). In

    addition, the EU informed Turkey about the progress needed to reach a satisfactory level ofpreparedness to start negotiations on 14 chapters.

    The enhanced political dialogue between the EU and Turkey has continued. Politicaldialogue meetings were held in June 2007 at ministerial level and in March and September2007 at political director level. These meetings focused on the main challenges faced byTurkey in terms of the Copenhagen political criteria and reviewed progress being madetowards fulfilment of Accession Partnership priorities. Foreign policy issues were also

    regularly discussed.

    The EC-Turkey customs union contributed to a further increase in bilateral EU-Turkey trade,which reached 85 billion in 2006, thereby making Turkey the EU's seventh trading partner.The reduction of national mandatory product standards supported this positive trend. The EUasked Turkey to remove all remaining restrictions on the free movement of goods, includingrestrictions on means of transport regarding Cyprus. A number of Turkeys commitments ontechnical barriers to trade, import licenses, state aid and enforcement of intellectual property

    rights remain unfulfilled. No progress can be reported concerning Turkey's long-standing banon imports of live bovine animals, beef and other animal products.

    The EU provides guidance to the authorities on reform priorities through the AccessionPartnership. Progress on these reform priorities is encouraged and monitored through the

    bodies set up under the Association Agreement. The Association Committee met in March2007. Eight sectoral sub-committees have been held since November 2006.

    Another round of negotiations

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