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EUROPEAN COMMISSION Brussels, 12.10.2011 SEC(2011) 1208 Final

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EUROPEAN COMMISSION Brussels, 12.10.2011 SEC(2011) 1208 Final EUROPEAN COMMISSION Brussels, 12.10.2011 SEC(2011) 1208 final COMMISSION STAFF WORKING PAPER ANALYTICAL REPORT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Commission Opinion on Serbia's application for membership of the European Union {COM(2011) 668 final} TABLE OF CONTENTS A. Introduction.................................................................................................................. 3 a) Application for membership ........................................................................................ 3 b) Relations between the EU and Serbia .......................................................................... 4 c) Contents of the Analytical Report................................................................................ 7 B. Criteria for membership ............................................................................................... 8 1. Political criteria............................................................................................................ 8 1.1. Democracy and the rule of law .................................................................................... 8 1.1.1. Parliament .................................................................................................................... 9 1.1.2. The executive............................................................................................................. 11 1.1.3. Public administration ................................................................................................. 14 1.1.4. Judicial system........................................................................................................... 16 1.1.5. Anti-corruption policy................................................................................................ 20 1.1.6. Civilian oversight of security forces .......................................................................... 22 1.2. Human rights and the protection of minorities .......................................................... 23 1.3. Regional issues and international obligations............................................................ 33 1.4. General evaluation..................................................................................................... 37 2. Economic criteria....................................................................................................... 40 2.1. Economic developments ............................................................................................ 40 2.2. Assessment in terms of the Copenhagen Criteria ...................................................... 43 2.2.1. The existence of a functioning market economy ....................................................... 43 2.2.2. The capacity to cope with competitive pressure and market forces within the Union .................................................................................................................................... 51 2.3. General evaluation..................................................................................................... 54 3. Ability to assume the obligations of membership...................................................... 54 3.1. Chapter 1: Free movement of goods .......................................................................... 55 3.2. Chapter 2: Freedom of movement for workers.......................................................... 58 3.3. Chapter 3: Right of establishment and freedom to provide services ......................... 60 3.4. Chapter 4: Free movement of capital......................................................................... 62 3.5. Chapter 5: Public procurement................................................................................... 64 EN 1 EN 3.6. Chapter 6: Company law............................................................................................ 65 3.7. Chapter 7: Intellectual property law........................................................................... 67 3.8. Chapter 8: Competition Policy................................................................................... 68 3.9. Chapter 9: Financial Services..................................................................................... 70 3.10. Chapter 10: Information society and media............................................................... 72 3.11. Chapter 11: Agriculture and rural development......................................................... 75 3.12. Chapter 12: Food safety, veterinary and phytosanitary policy .................................. 77 3.13. Chapter 13: Fisheries..................................................................................................79 3.14. Chapter 14: Transport policy ..................................................................................... 80 3.15. Chapter 15: Energy.................................................................................................... 82 3.16. Chapter 16: Taxation.................................................................................................. 86 3.17. Chapter 17: Economic and Monetary Policy ............................................................. 88 3.18. Chapter 18: Statistics..................................................................................................89 3.19. Chapter 19: Social Policy and employment............................................................... 91 3.20. Chapter 20: Enterprise and industrial policy.............................................................. 95 3.21. Chapter 21: Trans European Networks...................................................................... 97 3.22. Chapter 22: Regional policy and coordination of structural instruments .................. 99 3.23. Chapter 23: Judiciary and fundamental rights ......................................................... 101 3.24. Chapter 24: Justice, freedom and security ............................................................... 106 3.25. Chapter 25: Science and research ............................................................................ 112 3.26. Chapter 26: Education and Culture.......................................................................... 113 3.27. Chapter 27: Environment ......................................................................................... 115 3.28. Chapter 28: Consumer and health protection........................................................... 121 3.29. Chapter 29: Customs Union..................................................................................... 123 3.30. Chapter 30: External relations.................................................................................. 126 3.31. Chapter 31: Foreign, Security and Defence Policy.................................................. 128 3.32. Chapter 32: Financial Control.................................................................................. 130 3.33. Chapter 33: Financial and budgetary provisions...................................................... 132 3.34. General evaluation................................................................................................... 133 Statistical Annex .................................................................................................................... 136 EN 2 EN A. INTRODUCTION a) Application for membership Serbia presented its application for membership of the European Union on 22 December 2009. Subsequently, on 25 October 2010, the Council of the European Union requested the Commission to submit its opinion on this application, in line with the procedure laid down in Article 49 of the Treaty on European Union, which states: 'Any European State which respects the values referred to in Article 2 and is committed to promoting them may apply to become a member of the Union. The European Parliament and national Parliaments shall be notified of this application. The applicant State shall address its application to the Council, which shall act unanimously after consulting the Commission and after receiving the consent of the European Parliament, which shall act by a majority of its component members. The conditions of eligibility agreed upon by the European Council shall be taken into account.' Article 2 states that 'the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. These values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.' This is the legal framework within which the Commission submits its Opinion and the present analytical report. The Feira European Council in June 2000 had acknowledged that Western Balkan countries participating in the Stabilisation and Association Process were 'potential candidates' for EU membership. The European perspective of these countries was further confirmed by the Thessaloniki European Council in June 2003, which endorsed the "Thessaloniki Agenda for the Western Balkans”. This agenda remains the cornerstone of the EU policy towards the region. The European Council of December 2006 renewed the EU's commitment "that the future of the Western Balkans lies in the European Union" and reiterated that "each country's progress towards the European Union depends on its individual efforts to comply with the Copenhagen criteria
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