The political framework

The Tacis programme is now the main

instrument through which the EU supports
the implementation of the Partnership and
Cooperation Agreements, covering areas as
diverse as advice on developing market
regulations and providing technical skills to
improve customs facilities at frontiers. The
Agreements will run for ten years at first and
may be extended beyond that. They formalise
a structure of regular meetings between the
EU and partner country at ministerial, senior
official and parliamentary levels, designed to The EU’s Member States also have strong
oversee implementation of the Agreements individual relationships with different
and look at areas for extending cooperation. partner countries independent of the EU,
Finally, each Agreement takes the observance whether in the field of trade and investment
of democratic principles and human rights by or in provision of assistance. While the
all parties as a pre-condition for its operation, provisions of the Partnership and Cooperation
and allows for its suspension should these not Agreements also apply to these bilateral
be observed by one party. The following table relationships, the policy objectives are not
sets out the status of Agreements for each generally comprehensive enough to cover
partner state (in May 2000). these relationships. In order to ensure
coordination of all activities of the EU and
Armenia entered into force 1 July 1999
its Member States, the EU has drawn up
Azerbaijan entered into force 1 July 1999
Common Strategies, so far for Russia and
Belarus signed March 1995, not yet in force;
interim agreement not yet in force Ukraine, setting out overall policy guidelines
Georgia entered into force 1 July 1999 for activities with individual countries.
Kazakhstan entered into force 1 July 1999
Kyrgyzstan entered into force 1 July 1999
The EU has recently examined the Northern
Moldova entered into force 1 July 1998
Mongolia a Trade and Cooperation Agreement of different
Dimension of its policies, with the aim of
scope entered into force in March 1993 supporting the specific needs of the Baltic Sea
Russia entered into force 1 December 1997 region and the north-west of Russia. The aim
Turkmenistan signed May 1998, not yet in force;
of this initiative is to maximise the efficiency
interim agreement not yet in force
Tajikistan no Agreement has yet been negotiated of activities in the region, addressing common
Ukraine entered into force 1 March 1998 problems which can best be tackled by
Uzbekistan entered into force 1 July 1999 countries working together.

As a stepping stone to full Agreements, interim
agreements have also been reached with the
partner states, covering trade cooperation only.
These run only until the full Agreement enters
into force, which can be a lengthy process,
needing ratification in all 15 EU Member States’
parliaments as well as in the European Parliament
and in the parliament of the partner country.
The EU and its Member States can also provide
for food aid and assistance in providing basic
shelter for people left homeless by conflict or
natural disasters. The European Community
Humanitarian Office (ECHO) has stepped in
in several of the partner countries, which
have gone through difficult phases as they
established independence.
 European Commission
External Relations Directorate-General
Directorate headquarters’ resources,
information, interinstitutional relations
Information and communication

Mailing address
CHAR, Rue de la Loi 200 Wetstraat
B-1049 Brussels
Tel (+32-2) 295 25 85
Fax (+32-2) 296 80 24

http://europa.eu.int/comm/
external_relations/index.htm

© European Communities, 2000

The European Union and
the countries of Eastern Europe,
the Caucasus and Central Asia
A developing partnership
The European Union and its Member States
are building a long-term partnership with
the countries lying to its east and further
afield in central Asia. Whilst those countries
closest to the EU are already negotiating
to join, those further east are not seen, for
the moment, as prospective members.
Nevertheless, both the EU and its partner
countries – Armenia, Azerbaijan, Belarus,
Georgia, Kazakhstan, Kyrgyzstan, Moldova,
Mongolia, Russia, Tajikistan, Turkmenistan,
Ukraine and Uzbekistan – have recognised
the value of building strong, individual
relationships. In fields such as trade, energy,
environment and the fight against crime,
both the EU and its partners have much to
gain from developing a closer partnership
and working in cooperation.
The seeds of this partnership were sown in
the beginning of the 1990s with the launch
of the European Community’s technical
assistance programme, Tacis, to support these
countries. Up until 1999, Tacis had committed
a total of €4,226 million of funding to projects
in these countries. But Tacis has changed
over the years, and is now much more than
a technical assistance programme. Each of
the partner countries has developed and
continues to develop in different ways and
at different paces since the break-up of
* This new phase is covered by Council Regulation No 99/2000 adopted on 29 December 1999 (Official Journal L 12 of 18.1.2000, p.1).
the Soviet Union. Tacis is now focused on
supporting these countries develop their
market economies and strengthen their
democratic and legal foundations.
In January 2000, a new phase* of Tacis was
launched, which is planned to provide
assistance totalling €3,138 million up until
the end of 2006. This new phase builds on
the achievements of the past decade, but
makes adjustments on the basis of experience
in the past and on the development of the
partner countries themselves. In particular
it concentrates Tacis activities on fewer
objectives, looking for benefits across more
than one of these objectives, and on projects
of sufficient scale to have a significant impact.
Recognising that the development of private
enterprise is frustrated in the partner countries
through lack of finance, Tacis funds can also
be used to support investment. Decisions on
programming will be based on a much more
extensive process of dialogue between the EU
and the partner countries than in the past,
ensuring that a wider range of input is received
but also ensuring that the EU’s own priorities
are addressed.
In parallel, since the early days of technical
assistance, the EU has developed much more
formal and active political relationships with
the partner countries, as they have grown as
independent states. Building strong trading
links between the EU and the partner states is
a major objective. But the aim is much wider:
to develop enduring political, economic and
cultural links, enhancing peace and security
and with the potential to lead to a free trade
area across Europe and the partner states.
The formalisation of these relationships has
been achieved through a set of Partnership
and Cooperation Agreements, now in force
with most of the partner states. These set out
guidelines and objectives for the relationships,
based on the foundation of democratic
principles and human rights.
 The Tacis programme

What does Tacis support?

Tacis funding supports actions which
respond to immediate needs in the partner
states by providing technical assistance.
But equally important is that these activities
provide enduring benefits in the countries
concerned, so that the skills and experience
gained through a project are not lost when
its funding runs out. It is this aspect of Tacis
assistance – building lasting ability in govern-
ment and industry – which means that the
funding available brings returns far greater
than the initial investment.
The main element of Tacis support aims at
transferring know-how and expertise to
organisations in the partner countries.
This may be done through organised formal
training, or through cooperation or twinning
between organisations, as well as by experts
from the EU working in the partner
countries. In general, a partner from the EU
works with the organisation in the Tacis
country on a specific project. Tacis funding
may be used to purchase specific supplies
needed for a project, but these supplies
should normally continue to be used for their
original purpose. Tacis also supports technical
assistance for the provision of investment
finance. Finally, Tacis funding may now, in
specific cases, be used as investment capital,
for example for new small businesses in the
partner countries.
The majority of Tacis funding is allocated
through national programmes, specific to
each country. Multi-country programmes are
used for areas like environmental protection
or the promotion of transport networks
which do not fit neatly into country borders.
A cross-border programme has also been set
up to promote cooperation and develop
better physical links between neighbouring
communities in different countries.
Rewarding quality
To ensure the highest quality and intro-
duce an element of competition in project
selection, an incentive scheme is being
phased gradually into the Tacis program-
me, accounting for a small proportion of the
budget. The best projects – linked to the areas
as above set out in the relevant national
programme – will be selected following calls
for proposals, giving countries the prospect
of increasing their overall allocation of Tacis
assistance.

Institutional, legal and Private sector and Consequences of

administrative reform economic development changes in society

The areas where Covers the organisation Involves supporting Comprises reform of
Tacis funding is and policies of public entrepreneurship the health, pension,
used are designed administration at and small companies, social security and
to complement each national, regional and including through insurance systems,
other, and each local level; developing industrial partnership, as well as particular
national or multi- legal systems and their as well as the develop- attention to the conse-
country programme operation along with ment of the banking quences of industrial
focuses on no more the skills of legal pro- and finance system and restructuring and
than three of the fessionals; education the market framework developing employ-
following fields, so and training and the needed to underpin ment services such
that each can be development of civil enterprise. as retraining.
most effective. society.
 How does Tacis work?
Indicative programmes – for national, multi-
country and cross-border programmes – are
established on the basis of dialogue between
the EU and the partner state(s) concerned,
providing overall objectives and structure to
Tacis support for three or four years. Each partner
country has set up a structure to coordinate
external assistance, supported by Tacis-funded
experts (both local and from the EU).

Each year (or second year for the smaller
countries) a more detailed action programme
is adopted, setting out the projects to be
supported and the funding available, within
the guidelines set out in the indicative
programme. Technical assistance projects
outlined in the action programmes are then
put out to tender, under which organisations
from the EU (and now also from the Central
European countries) are selected to implement
projects, bringing their expertise to beneficiaries
in the partner states. Investment activities
are also set out in the action programmes.
Individual projects are designed to meet
specific objectives, but should also have a
wider and enduring impact. In most cases the
project should develop, in the partner country,
processes and knowledge which can be
applied in other situations, either in the same
field or in others. To ensure that each project
has the maximum impact, and that resources
are not spread too thinly, projects generally
have a value of at least two million euro in
Russia and Ukraine, and one million euro in
the other partner countries.
A limited number of “small project programmes”
are used to address very specific tasks, such as
advice to governments in particular fields such
as trade regulation, cooperation in higher
education, or encouraging EU investment in
the partner countries. Since their objectives
are not set with pre-defined beneficiaries
in mind, they are organised in a different
manner, with specific priorities set each year.

Infrastructure Environmental Rural Nuclear

networks protection economy safety

Covers transport, Includes developing Developing legal and In addition, for those partner
telecommunications, sustainable environ- regulatory frameworks, countries which have nuclear
energy pipelines and mental policies and including for private installations, Tacis works to
transmission networks, practices, promoting land ownership, promote an effective safety
and border-crossings. harmonisation with increasing access to culture, support the establish-
EU environmental finance and training, ment of strategies for the
standards, and and improvement of management of spent fuel,
promotion of energy distribution systems decommissioning and waste
technologies and and access to markets. management, as well as
sustainable manage- contributing to international
ment of natural initiatives such as the G7/EU
resources, including initiative for the closure of
energy sources. Chernobyl.