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Turkey 2018 Report EUROPEAN COMMISSION Strasbourg, 17.4.2018 SWD(2018) 153 final COMMISSION STAFF WORKING DOCUMENT Turkey 2018 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2018 Communication on EU Enlargement Policy {COM(2018) 450 final} - {SWD(2018) 150 final} - {SWD(2018) 151 final} - {SWD(2018) 152 final} - {SWD(2018) 154 final} - {SWD(2018) 155 final} - {SWD(2018) 156 final} EN EN Table of Contents 1. INTRODUCTION ....................................................................................................................... 3 1.1. Context ......................................................................................................................... 3 1.2. Summary of the report .................................................................................................. 3 2. FUNDAMENTALS FIRST: POLITICAL CRITERIA AND RULE OF LAW CHAPTERS ............................. 8 2.1. Functioning of democratic institutions and public administration reform ................. 10 2.1.1 Democracy ................................................................................................................ 10 2.1.2 Public administration reform .................................................................................... 19 2.2. Rule of law and fundamental rights ............................................................................... 22 2.2.1 Chapter 23: Judiciary and fundamental rights .......................................................... 22 2.2.2 Chapter 24: Justice, freedom and security ................................................................ 41 3. FUNDAMENTALS FIRST: ECONOMIC DEVELOPMENT & COMPETITIVENESS .............................. 52 3.1. The existence of a functioning market economy............................................................ 52 3.2. The capacity to cope with competitive pressure and market forces within the EU ....... 58 4. REGIONAL ISSUES AND INTERNATIONAL OBLIGATIONS ........................................................... 60 5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP ........................................................ 62 5.1. Chapter 1: Free movement of goods .......................................................................... 62 5.2. Chapter 2: Freedom of movement for workers .......................................................... 64 5.3. Chapter 3: Right of establishment and freedom to provide services .......................... 65 5.4. Chapter 4: Free movement of capital ......................................................................... 65 5.5. Chapter 5: Public procurement ................................................................................... 66 5.6. Chapter 6: Company law ............................................................................................ 68 5.7. Chapter 7: Intellectual property law ........................................................................... 69 5.8. Chapter 8: Competition policy ................................................................................... 70 5.9. Chapter 9: Financial services ..................................................................................... 71 5.10. Chapter 10: Information society and media ............................................................... 72 5.11. Chapter 11: Agriculture and rural development ......................................................... 73 5.12. Chapter 12: Food safety, veterinary and phytosanitary policy ................................... 74 5.13. Chapter 13: Fisheries .................................................................................................. 75 5.14. Chapter 14: Transport Policy ..................................................................................... 76 5.15. Chapter 15: Energy ..................................................................................................... 78 5.16. Chapter 16: Taxation .................................................................................................. 80 5.17. Chapter 17: Economic and monetary policy .............................................................. 81 5.18. Chapter 18: Statistics .................................................................................................. 82 1 5.19. Chapter 19: Social policy and employment ............................................................... 83 5.20. Chapter 20: Enterprise and industrial policy .............................................................. 85 5.21. Chapter 21: Trans-European Networks ...................................................................... 87 5.22. Chapter 22: Regional policy and the coordination of structural instruments ............. 87 5.25. Chapter 25: Science and research ............................................................................... 88 5.26. Chapter 26: Education and culture ............................................................................. 89 5.27. Chapter 27: Environment and climate change ........................................................... 90 5.28. Chapter 28: Consumer and health protection ............................................................. 92 5.29. Chapter 29: Customs union ........................................................................................ 94 5.30. Chapter 30: External relations .................................................................................... 95 5.31. Chapter 31: Foreign, security and defence policy ...................................................... 96 5.32. Chapter 32: Financial control ..................................................................................... 98 5.33. Chapter 33: Financial and budgetary provisions ...................................................... 100 ANNEX I – RELATIONS BETWEEN THE EU AND TURKEY .......................................................... 102 ANNEX II – STATISTICAL ANNEX.............................................................................................. 104 2 1. INTRODUCTION 1.1. Context Turkey remains a key partner for the European Union. Turkey has been linked to the EU by an Association Agreement since 1964 and a Customs Union was established in 1995. The European Council granted the status of candidate country to Turkey in December 1999 and accession negotiations were opened in October 2005. Within the framework of accession negotiations, 16 chapters have been opened so far and one of these was provisionally closed. The Turkish government reiterated its commitment to EU accession but this has not been matched by corresponding measures and reforms. On the contrary, Turkey has been moving away from the European Union. The Presidency conclusions of December 2016 stated that under the currently prevailing circumstances, no new chapters are considered for opening. The EU and Turkey continued their dialogue and cooperation in the areas of joint interest including with a number of high-level visits, Leaders' meetings in May 2017 and March 2018 and a High Level Political Dialogue in July 2017. Dialogue was pursued on foreign and security policy, notably on Syria, Libya and Iraq, and a counter-terrorism dialogue was held in November 2017. Turkey and the EU further developed their cooperation in the areas of energy, transport and economy and trade, supported by high level dialogues. In December 2016, the Commission adopted a recommendation to open negotiations in view of the extension and modernisation of the EU-Turkey Customs Union, which has since been under consideration in the Council. During 2017, the implementation of the March 2016 EU-Turkey Statement has continued to deliver concrete results in reducing irregular and dangerous crossings and in saving lives in the Aegean Sea. Turkey sustained its outstanding efforts to provide massive and unprecedented humanitarian aid and support to more than 3.5 million refugees from Syria and some 365 000 refugees from other countries. Turkey and the EU further built on the fruitful cooperation under the Facility for Refugees in Turkey. By the end of December 2017, the full envelope of EUR 3 billion had been contracted, with 72 projects and almost 1.2 million of the most vulnerable refugees benefited from monthly cash-transfers. Disbursements reached EUR 1.95 billion to date. 1.2. Summary of the report1 The state of emergency declared in the wake of the attempted coup of 15 July 2016 remains in force, aiming at dismantling the Gülen movement, designated by the Turkish authorities as a terror organisation responsible of the coup attempt, as well as at supporting the fight against terrorism, against the background of repeated attacks in Turkey. The EU, which immediately and strongly condemned the attempted coup, reiterated its full support for the country's democratic institutions, and recognised Turkey's legitimate need to take swift and proportionate action in the face of such a serious threat. However, the broad scale and collective nature, and the disproportionality of measures taken since the attempted coup under the state of emergency, such as widespread dismissals, arrests, and detentions, continue to raise serious concerns. Turkey should lift the state of emergency without delay. Serious shortcomings affect the 31 decrees taken to date under the state of emergency. They have not been subject to a diligent and effective scrutiny by parliament. Consequently, the decrees have long not been
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