“ The Commission is convinced that the negotiation process will be essential in guiding further reforms in Turkey. By its very nature, it is an open-ended process whose outcome cannot be guaranteed beforehand. Regardless of the outcome of the negotiations or the subsequent ratification process, the relations between the EU and Turkey must ensure that Turkey remains fully anchored in European structures. Turkey’s accession would need to be thoroughly prepared in order to allow for a smooth integration which enhances the achievements of fifty years of European integration. ”

“ The prospect of accession should lead to improving bilateral relations between Turkey and its neighbours in line with principle of reconciliation on which the European Union is founded. Expectations regarding EU policies towards these regions will grow as well, taking into account Turkey’s existing political and economic links to its neighbours. Much will depend on how the EU itself will take on the challenge to become a fully fledged foreign policy player in the medium term in regions traditionally characterised by instability and tensions, including the Middle East and the Caucasus. ”

“ In order to guarantee the sustainability and irreversibility of the political reform process, the EU should continue to monitor progress of the political reforms closely, on the basis of an Accession Partnership setting out priorities for the reform process. ”

“ Sufficient public and private investment and devoting particular attention to education are important to increase the competitiveness and the growth potential of the economy. The inflow of foreign direct investment has to be encouraged by removing remaining barriers. Turkey’s alignment has progressed in many areas but remains at an early stage for most chapters. Further work is required in all areas, new legislation should not move away from the acquis, and discrimination against non-Turkish service providers, or products should be discontinued. ”

“ Although work is underway to define a more systematic approach towards the region, no integrated strategy with a view to reducing regional disparities and addressing the economic, social and cultural needs of the local population has yet been adopted. ”

“ Furthermore, important steps have been taken in facilitating the inflow of FDI and in improving the legal framework for privatisation. In order to transform the current positive dynamics into sustained growth and stability, it is of crucial importance to continue the ongoing reform process. Maintaining a stability-oriented economic policy is a key element in this respect. In particular, fiscal imbalances have to be reduced and the disinflation process has to be maintained. The business climate would be improved by streamlining administrative procedures and strengthening the rule of law. ”

“ The alignment with the acquis on personal data protection needs to be achieved. An authority dealing with personal data protection should be established and the independence of the existing financial services supervisory authorities should be safeguarded. Limitations for foreigners should also be lifted. Alignment remains limited with the acquis on the free movement of capital. The priority should be the adoption of anti-money laundering provisions, and the removal of restrictions to investment by foreigners. ”

“ The need to consolidate and broaden political reform also applies to the normalisation and development of the situation in the Southeast, including measures to improve the socio-economic situation, initiatives to facilitate the return of displaced people, and to allow for full enjoyment of rights and freedoms by the Kurds. The specific problems of non-Muslim religious communities and trade union rights also need further action. ”

“ Several Kurdish language schools recently opened in the Southeast of Turkey. Broadcasting in Kurdish and other languages and dialects is now permitted and broadcasts have started, although on a restricted scale. There has been greater tolerance for the expression of Kurdish culture in its different forms. The measures adopted in the area of cultural rights represent only a starting point. There are still considerable restrictions, in particular in the area of broadcasting and education in minority languages. ”

“ Although freedom of religious belief is guaranteed by the Constitution, and freedom to worship is largely unhampered, non-Muslim religious communities continue to experience difficulties connected with legal personality, property rights, training of clergy, schools and internal management. ”

“ Overall alignment is uneven throughout the different components of consumers protection, and is more advanced concerning non-safety related measures. The efforts to ensure an effective transposition and implementation of the acquis on product liability and to improve administrative capacity should be pursued. Turkey has continued to make efforts to align with the acquis in the area of justice and home affairs. Nevertheless, progress is required in important areas such as the reform of the judiciary and the fight against corruption. ”

“ The pre-accession strategy for Turkey should be upgraded in order to focus on the priorities outlined in the revised Accession Partnership which will be based on the Regular Report and the assessment of the issues raised by Turkey’s prospective accession. Concrete initiatives need to be developed to address the socio-economic development in the Southeast, also through the mobilisation of a substantial part of the Community assistance to Turkey. ”

“ REINFORCING AND SUPPORTING THE REFORM PROCESS WITH TURKEY
Overall, implementation of reforms needs to be vigorously pursued. More specifically, the policy of zero tolerance towards torture should be implemented through determined efforts on all levels of the Turkish state to eradicate remaining instances of torture. Further development of civil society is important. ”

“ The rules regarding the free movement of persons are a third. It is likely that there will be, as in previous enlargement rounds, a need for substantial and specific arrangements and in some areas long transition periods. In the case of free movement of persons permanent safeguards can be considered. The Commission will refine its analysis in the course of negotiations before presenting a concrete approach for each of these issues. ”

“ The public procurement Law still contains discrepancies with the acquis. Turkey should speed up the efforts to remove technical barriers to trade, and to increase compliance with the Decision 1/95 of the Association Council establishing the Customs Union, and to take the necessary steps to implement free circulation of products in the non-harmonised areas. No progress has taken place concerning the free movement of persons, and overall legislative alignment is still at a very early stage. ”

“ In the area of industrial policy, there is a large alignment with the EC principles of industrial policy. Turkey has adopted an industrial strategy, but privatisation and restructuring are not progressing as planned. Steel sector and state owned banks in particular needs to be restructured. Despite progress in the framework legislation, foreign direct investment remains low. Concerning small and medium sided enterprises, access to finance has improved, and the Turkish policy is broadly in line with the EU enterprise policy. ”

“ Cultural rights for the Kurds have started to be recognised. The state of emergency has been lifted everywhere; although the situation is still difficult, the process of normalisation has begun in the Southeast. Finally, on the enhanced political dialogue, Turkish foreign policy is contributing positively to regional stability.
Turkey has substantially progressed in its political reform process, in particular by means of far reaching constitutional and legislative changes adopted over the last years, in line with the priorities set out in the Accession Partnership. ”

“ Much will depend on future economic developments in Turkey. The launch of accession negotiations should help the continued efforts of Turkey to ensure macroeconomic stability and promote investment, growth and social development. Under these conditions, Turkey’s GDP is expected to grow more rapidly than the EU average. ”

“ Long transition periods and a permanent safeguard clause can be considered to avoid serious disturbances on the EU labour market. However, the population dynamics of Turkey could make a contribution to offsetting the ageing of EU societies. ”

“ In 1963 Turkey and the EEC entered into an Association Agreement containing a membership perspective. In 1995, a customs union was formed and, in Helsinki in December 1999, the European Council decided that Turkey is a candidate for accession to the EU. The Copenhagen European Council in December 2002 concluded that “if the European Council in December 2004, on the basis of a report and a recommendation from the Commission, decides that Turkey fulfils the Copenhagen political criteria, the European Union will open accession negotiations with Turkey without delay”. ”

“ Turkey is undertaking strong efforts to ensure proper implementation of these reforms. Despite this, legislation and implementation measures need to be further consolidated and broadened. This applies specifically to the zero tolerance policy in the fight against torture and ill-treatment and the implementation of provisions relating to freedom of expression, freedom of religion, women’s rights, ILO standards including trade union rights, and minority rights. ”

“ Turkey should also be able to cope with competitive pressure and market forces within the Union, provided that it firmlymaintains its stabilisation policy and takes further decisive steps towards structural reforms. ”

“ Turkey would need considerable time to make a number of agricultural sectors more competitive in order to avoid substantial income losses for Turkish farmers. Under present policies Turkey would be eligible for substantial support. In the veterinary area, major efforts would have to be made to improve the animal health situation and controls at the eastern borders in order to avoid serious problems upon accession. ”

“ The acquis concerning regional policy is relevant for the implementation of Structural and Cohesion Funds. Very limited development has been made and the overall level of alignment with the acquis is limited. Substantial efforts would therefore be necessary to make appropriate use of the EU’s structural instruments. Necessary institutions need to be created and administrative capacity to be reinforced. ”

“ Improving the efficiency of the commercial judiciary is of particular importance in this context. The banking sector’s surveillance and prudential rules should continue to be aligned with international standards. The privatisation of state-owned banks and enterprises should be accelerated. ”

“ Co-operation both at national level among all relevant administrative bodies and with the EU should be improved on issues such as illegal migration and trafficking, including through the negotiation of a readmission agreement. ”