FROM THE COMMISSION ON CYPRUS’S PROGRESS TOWARDS ACCESSION *********************** 8 November 2000 Table of contents A. Introduction.............................................................................. 5 a) Preface .............................................................................................................5 b) Relations between the European Union and Cyprus ...................................7 Recent developments under the Association Agreement (including bilateral trade) ........................................................................................................................... 7 Accession Partnership................................................................................................. 8 Community Aid .......................................................................................................... 8 Twinning..................................................................................................................... 9 Negotiations ................................................................................................................ 9 B. Criteria for membership ....................................................... 10 1. Political criteria.................................................................................... 10 Introduction............................................................................................................... 10 Recent developments ................................................................................................ 10 1.1. Democracy and the rule of law.....................................................................11 The Parliament.......................................................................................................... 11 The Executive ........................................................................................................... 11 The judicial system ................................................................................................... 12 Anti-corruption measures.......................................................................................... 14 1.2. Human rights and the protection of minorities...........................................14 Civil and political rights............................................................................................ 15 Economic, social and cultural rights......................................................................... 16 Minority rights and the protection of minorities....................................................... 17 1.3. The situation in the northern part of the island..........................................17 1.4. The efforts for a political settlement ............................................................20 1.5. General evaluation.........................................................................................22 2. Economic criteria................................................................................. 23 2.1. Introduction....................................................................................................23 2.2. Economic developments ................................................................................23 2.3. Assessment in terms of the Copenhagen criteria ........................................25 The existence of a functioning market economy ...................................................... 25 The capacity to cope with competitive pressure and market forces within the Union......................................................................................................................... 30 2.4. General Evaluation........................................................................................32 2.5. The economic situation in the northern part of the island.........................32 3. Ability to assume the obligations of membership............................. 35 Introduction............................................................................................................... 35 3.1. The chapters of the acquis.............................................................................37 2 Chapter 1: Free movement of goods..............................................................37 Overall assessment.................................................................................................... 38 Chapter 2 Free movement of persons ............................................................40 Overall assessment.................................................................................................... 40 Chapter 3: Freedom to provide services ........................................................41 Overall assessment.................................................................................................... 42 Chapter 4 Free movement of capital..............................................................44 Overall assessment.................................................................................................... 44 Chapter 5: Company law................................................................................45 Overall assessment.................................................................................................... 46 Chapter 6 Competition....................................................................................47 Overall assessment.................................................................................................... 48 Chapter 7: Agriculture....................................................................................49 Overall assessment.................................................................................................... 51 Chapter 8: Fisheries .......................................................................................53 Overall assessment.................................................................................................... 53 Chapter 9: Transport Policy...........................................................................54 Overall assessment.................................................................................................... 56 Chapter 10: Taxation......................................................................................57 Overall assessment.................................................................................................... 58 Chapter 11: Economic and Monetary Union ................................................59 Overall assessment.................................................................................................... 60 Chapter 12: Statistics......................................................................................60 Overall assessment.................................................................................................... 61 Chapter 13: Social policy and employment ...................................................62 Overall assessment.................................................................................................... 63 Chapter 14: Energy.........................................................................................64 Overall assessment.................................................................................................... 65 Chapter 15: Industrial Policy.........................................................................66 Overall assessment.................................................................................................... 66 Chapter 16: Small and medium-sized enterprises.........................................67 Overall assessment.................................................................................................... 67 Chapter 17: Science and Research ................................................................68 Overall assessment.................................................................................................... 69 Chapter 18: Education and training..............................................................69 Overall assessment.................................................................................................... 70 Chapter 19: Telecommunications and Information Technologies...............71 Overall assessment.................................................................................................... 71 Chapter 20: Culture and audio-visual policy.................................................72 3 Overall assessment..........................................................................................72 Chapter 21: Regional policy and co-ordination of structural instruments ..73 Overall assessment.................................................................................................... 73 Chapter 22: Environment...............................................................................74 Overall assessment.................................................................................................... 75 Chapter 23: Consumers and health protection..............................................77 Overall assessment.................................................................................................... 78 Chapter 24: Co-operation in the fields of justice and home affairs .............78 Overall assessment.................................................................................................... 81 Chapter 25: Customs Union...........................................................................84 Overall assessment...................................................................................................