PETER TEMPEL
European Commission Member of the Cabinet of Commissioner
Gunter VERHEUGEN-Enlargement
AB Genişlemeden Sorumlu Komisyoner Gunter VERHEUGEN'in Özel Kalem Müdürü
I gladly like to elaborate on the "Turkish Private Sector contribution to the entry of Turkey in the EU". In this context I would like to give you a presentation of the Commission's work programme for Turkey and thus explain Turkey's place in the enlargement process. Enlargement is the biggest challenge the Union is facing at the dawn of the new millennium. And it is, without any doubt, the key priority of the European Union.

Helsinki European Council of last December brought about a historic change in EU-Turkey relations by deciding to designate Turkey as a candidate country which, and I quote, "is destined to join the Union on the basis of the same criteria as applied to the other candidate States".

This decision is of historic importance. It brings Turkey much closer to the EU. Since this recognition we have noticed a remarkable improvement in the relations between the EU and Turkey. During the recent contacts with the Turkish authorities after Helsinki we already noticed the genuine willingness to further integrate Turkey into Europe. In fact, now that the presidential elections are over, we really hope that further internal reforms both political and economic will be taken to facilitate the integration process. It is in this respect quite important that the new President of the Republic of Turkey also considers such reforms a very first priority. The question is now what will the decisions of Helsinki further entail and, more specifically, what are the precise consequences of these decisions. As you know enlargement of the European Union is based on the fulfilment by the candidate country of the Copenhagen criteria in the political, economic and acquis related fields. The candidate country also needs to fulfil the so-called Madrid criteria, which relate to the country's administrative capacity to effectively implement and apply the acquis. The European Council of Helsinki has once more confirmed that respect for the political accession criteria is an absolute precondition for opening negotiations. These criteria cover issues of democracy, rule of law, human rights, and protection of minorities. Today, Turkey does not fulfil these criteria and hence negotiations will only be launched when Turkey fully complies with them. The economic criteria laid down in Copenhagen require the existence of a market economy and the capacity to withstand competitive pressures. Moreover, the candidate countries will have to prepare for Economic and Monetary Union. The so-called Maastricht criteria are important guidelines in this respect. The fulfilment of the Copenhagen criteria in the three mentioned fields as well as the Madrid criteria represent the objective to be achieved - and the various instruments of the pre-accession strategy are destined to assist the candidate country in its efforts to reach this goal. As is the case with regard to the other candidate states, Turkey will benefit from a pre-accession strategy and an enhanced political dialogue. Moreover, Turkey will participate in meetings between candidate countries and the Union in the context of the accession process. Among the elements, which constitute the pre-accession strategy, the Accession Partnership is, no doubt, the centrepiece. It will actually set out the short and medium-term priorities to be reached by Turkey in order to fulfil the Copenhagen criteria. It is the Commission's intention to adopt Turkey's first Accession Partnership in autumn this year at the same time as the Regular reports for all the 13 candidate countries. Turkey on her part, is expected to present a National Programme for the Adoption of the acquis, preferably before the end of 2000, in which Turkey will explain how she intends to implement the priorities described in the Accession Partnership.

The Accession Partnership is a key instrument, because it will be a useful tool for Turkey to accelerate political and economic reforms. Various important issues involved in the process of democratisation, the respect of human rights, and the protection of minorities will be addressed in this context under the political dimension. The document will also contain priorities in the economic field and in the area of administrative reform. From next year on the implementation of the Accession Partnership priorities will be closely monitored notably through the Commission's Regular reports as well as the sub-committees established under the Association Agreement. The EU-Turkey Association Council met on 11 April 2000 - it was the first meeting after the Helsinki European Council decision to grant Turkey candidate status and the first meeting after three years. But not only for these reasons it was a particularly important meeting. The Association Council paved the way for further implementing the Helsinki conclusions by adopting, among others, a Decision to create a number of sub-committees of the Association Committee.

These subcommittees will serve a twofold task: they are destined to monitor closely the implementation of the Accession Partnership priorities and to discuss approximation of Turkish legislation with the Community acquis. By fulfilling the latter task the Commission will start the work to - and I quote - "prepare a process of analytical examination of the acquis", to which the Helsinki European Council had invited the Commission. This approach allows us to gain mutual knowledge and a better understanding of the situation in Turkey and the EU and to identify problematic harmonisation areas for which technical assistance will eventually be needed. The information we will receive in these meetings will be crucial in order to prepare Accession Partnership and Regular report. Therefore we intend to convoke still before summer the first meetings of sub-committees in the fields of agriculture and fisheries, the internal market as well as transport, energy and environment. The Association Council adopted another politically important Decision at its meeting on 11 April: to open negotiations with Turkey on an agreement aimed at the liberalisation of services and the mutual opening of procurement markets between the Community and Turkey. These negotiations are considered as another important element of Turkey's pre-accession strategy and preparations for a first round of talks in the forthcoming weeks are underway.

Participation in Community programmes and agencies is an important instrument in preparing candidate countries for EU membership. The Helsinki conclusions explicitly stated that Turkey's participation in Community programmes and agencies will be on the same footing with other candidate countries. Together we are now working with Turkey to make this a reality. Participation in Community programmes is a good way to better understand our policies in different fields including our working methods. All these initiations mean a new momentum for the further development of our relations. This will also be backed up with substantial financial means in order to encourage necessary political and economic reforms. Hence, the Union will support Turkey also in this way towards her accession to the EU. There will be a doubling of financial resources on an annual basis. During the period 1996-1999, Turkey received an annual average of just over _ 90 million. From 2000 onwards the yearly allocation will be around _ 180 million. All funds for Turkey will be pre-accession oriented and from 2001 clearly linked to the priorities set out in the Accession Partnership. The financial envelope includes Turkey´s share in Meda II as well as the funds foreseen in the framework of the two "European strategy/pre-accession" regulations. As requested by the Helsinki Council, the Commission will also propose a single framework co-ordinating all sources of EU financial assistance for pre-accession. In this context a draft framework regulation is under preparation, which will create the legal basis for the establishment of the Accession Partnership. Allow me now a few words first on the political situation in Turkey and its impact on EU-Turkey relations and then I will turn to our economic relations before I come to the contribution, which the private sector can provide in making the way ahead a success.

The Commission followed with great interest the presidential elections, which recently have taken place and noticed with satisfaction that the government has managed to maintain stability during the election process. The overall political stability during the recent period is encouraging. It should allow further steps towards reforms in this respect. We consider the appointment of the new President of the Republic of Turkey, Ahmet Necdet SEZER, positive. His statements, expressing commitment to democratic reform and the respect of human rights, give hope that Turkey will continue with her reform process, which was initiated in particular in the last quarter of 1999. The Commission has very much welcomed the start of this reform process. Despite these positive signals, our political opinion remains critical. A number of events has given cause for concern: for instance, 18 members of the pro-Kurdish HADEP Party were sentenced to 3 years and nine months in jail; 3 HADEP mayors were put in custody and finally released. And, last but not least, on 28 March, Mr. BIRDAL, whose health situation still seems worrying, was taken back to prison to serve his four and half month prison sentence.

Hence, and more in general further progress in democratic reforms and improvement of the human rights record are of major importance for the European Union and for our public at large. It would be extremely useful if Turkey takes further reform steps on issues like the penal code, the new code to enhance the independence of the judiciary, freedom of expression, and the rights of minorities.

Let me now turn to the economic situation in Turkey.

In general, the state of the Turkish economy leads to optimism from our side. It is quite clear that the current desinflation and stabilisation programme established together with the IMF start to bring its first positive results. It brings about further structural reforms, which could not be finished in the eighties because of the political climate at that time. The aim to bring inflation down to single digit figures within two years is indeed very important. Together with the World Bank, the Commission will also help to bring about further structural reforms in the different sectors: social, fiscal and agricultural. Moreover, we fully realise that 1999 was a specifically difficult year for Turkey in economic terms. It is clear that Turkey suffered from the Asian and Russian crisis but also certainly from the two earthquakes, which affected main parts of industrial production. It is therefore not a surprise to anyone that the overall SDP shrunk with around 6%. However, the relative fast recovery of the economy after this difficult period combined with the current climate of political stability showed how vital your economy is. Again, reasons for us to be optimistic which is supported by recent growth in exports of around 9%. Economic relations between Turkey and the Union date already a long time back and they cover a wide range of products. Turkey is our seventh largest customer while at the same time Turkey is our twelfth supplier of goods. From a contractual point of view our relations in the economic field are unique. Turkey is the only candidate country, with which we have a Customs Union. The functioning of the Customs Union is a success. Trade flows have increased significantly. The relevant joint Committee manages the Customs Union well. As you know, we have created a separate regime for trade in agricultural goods. Since 1998 specific rules are in place to further liberalise trade on both sides. The implementation of our common decisions has been subject of frequent consultations. Unfortunately we have to conclude that some difficulties exist especially in the animal sectors. Now, with the new momentum after Helsinki, we hope that problems in these sectors can also be solved. As far as industrial products are concerned, in general it is important to further align Turkish legislation with EU rules. Also here we consider that swift progress is possible. There is a readiness to provide technical assistance if this is considered necessary. The rather low level of foreign direct investments in Turkey needs further attention. The FDI figures are amongst the lowest of all OECD countries. Investors are well aware of the potential and benefits of the Turkish market. Different international companies are already present in Turkey. Further improvements especially in the macro-economic stabilisation would be very welcome. In that respect the inflation figure of around 2 % in April was rather encouraging.

Let me conclude by saying that the success of the pre accession strategy and thus Turkey's way to EU membership depends on the contribution of all players involved. This certainly also applies to the Turkish private sector. We know that you are willing to play that role. The private sector has understood the importance of integration and of accession very well. You are rightly very active and helpful to our work. This certainly has also to do with the fact that a large part of your industry is competitive and well integrated into the European economy. The overall volume of our trade of around £40 billion clearly demonstrates this. You are, however, also aware that some economic branches need further restructuring. This was already recognised for the banking sector, where reforms have started. Further the support of the private sector to the reform process launched by the government is crucial. This relates for example to the fiscal reforms of which we are aware that the burden of reform will have to be born by the business community. The rate of unregistered labour in Turkey is unfortunately too high. Moreover, the better functioning of the labour market needs further attention. The unemployment rate is too high especially among the young people. Further training and human resource development in that respect are indispensable.

Helsinki has created new incentives to EU-Turkey relations. The main aim is now that both sides implement the several commitments made as outlined. As indicated the business sector has an important role to play in what I consider or common challenges.

PETER TEMPEL: "TÜRK ÖZEL SEKTÖRÜNÜN TÜRKİYE'NİN AB'YE GİRMESİNE KATKILARI"

Size Komisyon'un Türkiye için oluşturduğu çalışma programını tanıtmak istiyorum…
Helsinki Zirvesi'nde alınan tarihi kararlar tam olarak hangi sonuçları doğuracaktırş

Demokrasi, yasalarla yönetim, insan hakları ve azınlık haklarının korunması görüşmelerinin başlayabilmesi için gerekli kriterleri oluşturduğu Helsinki'de tekrar vurgulanmıştır. Türkiye bugün bu kriterlere uymamaktadır...AB-Türkiye Birliği Konseyi üç yıl aradan sonra 11 Nisan 2000'de tekrar toplandı. Bu toplantıda alınan önemli bir karar, Birlik Komitesi'nin altında çeşitli alt-komiteler oluşturmak yolundaydı… Bu alt komiteler, adaylık kriterlerinin uygulanmasını izleyecek ve Türk yasalarının Birlik kurallarına yaklaştırılmasını görüşecekler…

11 Nisan'da alınan bir başka önemli karar, Birlik ve Türkiye arasındaki tedarik pazarlarının karşılıklı açılması ve servislerin serbest bırakılmasıyla ilgili bir anlaşma için görüşmelerin başlamasıydı… …Birlik Türkiye'yi üyelik yolunda destekleyecektir. Yıllık bazda mali kaynaklar iki misline çıkacaktır… Genelde Türk ekonomisinin durumundan ümitliyiz…Asya ve Rusya'daki krizler ve zelzele nedeniyle 1999'da Türk ekonomisinin zor bir yıl geçirdiğini biliyoruz…

Birliğin Türkiye ile ekonomik ilişkileri eskidir…Türkiye bizim 7. büyük müşterimiz ve 12. tedarikçimiz… Bildiğiniz gibi, ziraat ürünleri için yeni bir rejim yarattık…

Sanayi ürünlerine gelince Türk yasalarının AB kurallarıyla uyum sağlaması gerekmektedir... Türkiye'de nispeten düşük düzeydeki yabancı doğrudan yatırım da daha çok ilgi gerektirmektedir… Sonuçta Türkiye'nin AB'ye adaylık yolundaki stratejisinin başarısı, ilgili tüm oyuncuların katkısına bağlıdır…

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