Progress Report Prepared by Turkey Ministry for Eu Affairs
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2013 PROGRESS REPORT PREPARED BY TURKEY MINISTRY FOR EU AFFAIRS www.ab.gov.tr REPUBLIC OF TURKEY MINISTRY FOR EU AFFAIRS Mustafa Kemal Mah. 2082.Cad. No: 4 06510 Bilkent /ANKARA TURKEY Phone: + 90 (312) 218 1300 Fax: + 90 (312) 218 1464 www.ab.gov.tr ISBN: 978-605-5197-22-3 December 2013 Prepared by Ministry for EU Affairs Printed by Fotomat Matbaacılık “According to the second paragraph of Article 5 of the Implementing Regulation on the Procedure and Principles Concerning Bandrole, affixation of banderol is not obligatory.” December 2013 2013 Progress Report prepared by Turkey Foreword by the Minister for EU Affairs and Chief Negotiator The Progress Report by Turkey is one of the most significant documents setting forth the Turkish Government’s determination in the reform process and the steps undertaken in all areas during 2013. This report was first prepared last year during the term of my predecessor, Mr. Egemen Bağış. I would like to thank Mr. Bağış who started this initiative which is significant in terms of reviewing the progress throughout the year in a holistic manner and planning the reforms for the forthcoming years. The year of 2013 which was the 50th anniversary of the Ankara Agreement, has been a period in which Turkey’s reformist character became more prominent and during which important developments have taken place in Turkey-EU relations. First of all, the European Commission’s 2013 Progress Report on Turkey, prepared with an objective and constructive spirit in comparison to the previous reports, ensured a more favorable atmosphere in Turkey-EU relations. The 2013 Report of the Commission acknowledged not only the political reforms but also Turkey’s economic success despite the global crisis, together with our progress in the alignment with the EU acquis. Besides, the opening of the Chapter on “Regional Policy and the Coordination of Structural Instruments” on 5 November 2013 was a critical milestone in ending the 3.5 years long stalemate in the accession negotiations. Furthermore, high-level dialogue meetings were held on strategic sectors such as energy and transport and cooperation mechanisms in various fields have been further enhanced. There is no doubt that this year’s most important development in Turkey-EU relations has been the major step taken which paves the way for a visa-free Europe. The Visa Liberalization Dialogue officially started with the signing of the Readmission Agreement and the Memorandum of Understanding on EU-Turkey Visa Liberalization on 16 December 2013. As underlined by Prime Minister Recep Tayyip Erdoğan, the EU accession process is the most significant modernization project of Turkey after the proclamation of the Republic. The 2013 Progress Report prepared by the Ministry for EU Affairs with a view to comprehensively and objectively reflecting the latest developments should be perceived as a sign for the Turkish Government’s determination for further reforms. I would like to sincerely thank all those who have contributed to this Report. Mevlüt Çavuşoğlu Minister for EU Affairs and Chief Negotiator Ministry for EU Affairs December 2013 2013 Progress Report prepared by Turkey ABBREVIATIONS AFAD Disaster & Emergency Management Presidency AFCOS Anti-Fraud Coordination Service BRSA Banking Regulation and Supervision Agency CBT Central Bank of the Republic of Turkey CFCU Central Finance and Contracts Unit EIPA European Institute of Public Administration EUROSTAT European Union Statistical Office ICTA Information and Communication Technologies Authority ILO International Labour Organization ISKUR Turkish Labour Institution MoLSS Ministry of Labour and Social Security OECD Organization for Economic Co-operation and Development PETKIM General Directorate of Petroleum Chemicals Industry SDIF Savings Deposit Insurance Fund SGK Social Security Institution SPK Capital Markets Board TAEK Turkish Atomic Energy Authority TAIEX Technical Assistance Information Exchange Office TEDAS Turkish Electricity Distribution Corporation TIKA Turkish Cooperation and Coordination Agency TPE Turkish Patent Institute TSE Turkish Standards Institution TUBA Turkish Academy of Sciences TUBITAK Scientific and Technological Research Council of Turkey TURKSTAT Turkish Statistical Institute TURKAK Turkish Accreditation Agency VQA Vocational Qualifications Authority WTO World Trade Organization YAYFED Publisher Collecting Societies Federation YOIKK Coordination Council for the Improvement of Investment Environment YOK Council of Higher Education Ministry for EU Affairs December 2013 2013 Progress Report prepared by Turkey TABLE OF CONTENTS Introduction and Explanations…………………………………………………………… 1 I. Political Criteria……………………………………………………………………....... 3 II. Economic Criteria……………………………………………………………………... 22 2.1The existence of a functioning market economy……………………………………....... 22 2.2 The capacity to cope with competitive pressure and market forces within the 29 Union………………………………………………………………………………………. III. Capacity to Assume Obligations of Membership……………………...……………. 32 Chapter 1: Free Movement of Goods………………………………………………………. 32 Chapter 2: Freedom of Movement for Workers……………………………………………. 38 Chapter 3: Right of Establishment and Freedom to Provide Services……………………... 39 Chapter 4: Free Movement of Capital……………………………………………………… 41 Chapter 5: Public Procurement……………………………………………………………... 43 Chapter 6: Company Law…………………………………………………………………... 45 Chapter 7: Intellectual Property Law……………………………………………………….. 51 Chapter 8: Competition Policy……………………………………………………………... 56 Chapter 9 : Financial Services……………………………………………………………… 58 Chapter 10: Information Society and Media……………………………………….............. 62 Chapter 11: Agriculture and Rural Development……………………………………........... 69 Chapter 12: Food Safety, Veterinary and Phytosanitary Policy……………………………. 75 Chapter 13: Fisheries……………………………………………………………………….. 83 Chapter 14: Transport Policy……………………………………………………………….. 85 Chapter 15: Energy…………………………………………………………………………. 91 Chapter 16: Taxation……………………………………………………………………….. 101 Chapter 17: Economic and Monetary Policy……………………………………………….. 103 Chapter 18: Statistics……………………………………………………………………….. 105 Chapter 19: Social Policy and Employment………………………………………………... 110 Chapter 20: Enterprise and Industrial Policy……………………………………………….. 131 Chapter 21: Trans-European Networks…………………………………………………….. 135 Chapter 22: Regional Policy and Coordination of Structural Instruments……................... 137 Chapter 23: Judiciary and Fundamental Rights…………………………………………..… 143 Chapter 24: Justice, Freedom and Security………………………………………………… 169 Chapter 25: Science and Research…………………………………………………………. 179 Chapter 26: Education and Culture………………………………………………………… 183 Chapter 27: Environment and Climate Change…………………………………………….. 191 Chapter 28: Consumer and Health Protection…………………………………………….... 202 Chapter 29: Customs Union………………………………………………………………… 207 Chapter 30: External Relations……………………………………………………………... 213 Chapter 31: Foreign, Security and Defence Policy…………………………………………. 217 Chapter 32: Financial Control ……………………………………………………………… 220 Chapter 33: Financial and Budgetary Provisions……………………………………........... 224 IV. Work Under Financial Cooperation ……………………………………...…......... 225 V. Projects Carried Out by the Ministry for EU Affairs………………...………….. 235 VI. Activities Realized in the Context of the European Union Communication 250 Strategy (EUCS)…………………………..………………………………………….. VII. Significance of the EU Process………………………………………………………. 257 Ministry for EU Affairs December 2013 2013 Progress Report prepared by Turkey INTRODUCTION AND EXPLANATIONS The 2013 Progress Report by Turkey sets forth the work carried out and the progress achieved in the context of the European Union (EU) accession process during the January-December 2013 period under the “Political Criteria”, “Economic Criteria” and the “Ability to Assume the Obligations of Membership” titles. The Turkey-EU Financial Cooperation and Civil Society Dialogue and Communication are two key components of the accession process as emphasized in the Negotiating Framework Document for Turkey dated 3 October 2005. Therefore, the report also covers Civil Society Dialogue projects implemented by the Ministry for EU Affairs and activities carried out under Turkey’s European Union Communication Strategy (EUCS) in the last year. The Ministry for EU Affairs is among the institutions responsible for ensuring the effective use of the grants extended in the context of Turkey-EU Financial Cooperation; hence the report summarizes the work undertaken to this end. The progress achieved regarding the Copenhagen Political Criteria and the Accession Partnership Document is presented through the following broad perspective: • Legislation adopted or drafted, • Work and activities for alignment with the EU practices, including administrative capacity building. The information presented in the Report has been compiled considering the work of public institutions and organizations, the reports prepared by the EU institutions and results of the work carried out under the coordination of the Ministry for EU Affairs. This Report has been prepared to present first-hand information on the progress achieved by Turkey in the past year, taking into account criticisms and recommendations by the European Commission. Furthermore, the Report aims to inform the relevant stakeholders and the public by demonstrating that there are many dimensions to the EU accession process apart from the political criteria, such as economic and financial issues, alignment with the acquis and