Europaudvalget 2003-04
EUU Alm.del Bilag 179
Offentligt
Comprehensive monitoring report
on
Slovakia’s
preparations for membership
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A.
B.
INTRODUCTION ................................................................................................................................ 3
ECONOMIC ISSUES ........................................................................................................................... 5
1.
Economic developments ........................................................................................................... 5
2.
Implementation of recommendations for improvements........................................................... 7
COMMITMENTS AND REQUIREMENTS ARISING FROM THE ACCESSION
NEGOTIATIONS ................................................................................................................................. 9
1.
Administrative and judicial capacity....................................................................................... 11
Public administration............................................................................................................... 11
Judicial capacity ...................................................................................................................... 12
Anti-corruption measures........................................................................................................ 13
Translation of the acquis into Slovak...................................................................................... 14
2.
The chapters of the acquis....................................................................................................... 15
Chapter 1: Free movement of goods....................................................................... 15
Chapter 2: Free movement of persons .................................................................... 17
Chapter 3: Freedom to provide services ................................................................. 18
Chapter 4: Free movement of capital...................................................................... 19
Chapter 5: Company law ........................................................................................ 20
Chapter 6: Competition Policy ............................................................................... 21
Chapter 7: Agriculture ............................................................................................ 23
Chapter 8: Fisheries ................................................................................................ 27
Chapter 9: Transport policy.................................................................................... 28
Chapter 10: Taxation .............................................................................................. 29
Chapter 11: Economic and monetary union ........................................................... 31
Chapter 12: Statistics .............................................................................................. 31
Chapter 13: Social policy and employment............................................................ 32
Chapter 14: Energy................................................................................................. 34
Chapter 15: Industrial policy .................................................................................. 35
Chapter 16: Small and Medium-sized Enterprises ................................................. 36
Chapter 17: Science and research ........................................................................... 36
Chapter 18: Education and training ........................................................................ 37
Chapter 19: Telecommunications and information technologies ........................... 37
Chapter 20: Culture and audio-visual policy .......................................................... 38
Chapter 21: Regional policy and co-ordination of structural instruments.............. 38
Chapter 22: Environment........................................................................................ 40
Chapter 23: Consumer and health protection ......................................................... 42
Chapter 24: Justice and home affairs...................................................................... 43
Chapter 25: Customs union .................................................................................... 46
Chapter 26: External relations ................................................................................ 47
Chapter 27: Common foreign and security policy.................................................. 49
Chapter 28: Financial control ................................................................................. 49
Chapter 29: Financial and budgetary provisions .................................................... 50
CONCLUSION................................................................................................................................... 52
C.
D.
STATISTICAL ANNEX.............................................................................................................................. 55
2
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A.
I
NTRODUCTION
The accession negotiations with Slovakia were successfully concluded on 13 December
2002 and the Treaty of Accession was signed on 16 April 2003. In a referendum held on
16-17 May, a majority of Slovaks expressed their support for membership of the
European Union. Following ratification of the Treaty of Accession, Slovakia will join the
EU on 1 May 2004.
In its Strategy Paper “Towards the enlarged Union”, which accompanied the 2002
Regular Reports, the Commission stated that:
“Acceding countries need to implement the acquis by the date of accession, except in
cases where transitional arrangements have been agreed. Commitments undertaken
in the negotiations must be fully met before accession. The Regular Reports point to
a number of areas where further improvements need to be made in the context of the
political and economic criteria and in relationship to the adoption, implementation
and enforcement of the acquis. These should be vigorously pursued. In order to
analyse progress and to facilitate successful membership of the European Union, the
Commission will regularly monitor this and report to Council. The Commission will
produce six months before the envisaged date of accession a comprehensive
monitoring report for the Council and the European Parliament.”
The Copenhagen European Council in December 2002 concluded that:
“Monitoring up to accession of the commitments undertaken will give further
guidance to the acceding states in their efforts to assume responsibilities of
membership and will give the necessary assurance to current Member States.”
and the Thessaloniki European Council in June 2003 stated that:
“…the ten acceding States are encouraged to keep up their efforts so that they are
fully prepared to assume the obligations of membership by accession. This also
includes the necessary translation of the Community acquis. With a view to making a
success of enlargement, the monitoring of these preparations has been intensified on
the basis of reports submitted regularly by the Commission.”
As the accession date of 1 May 2004 draws closer, this report presents a comprehensive
state of play of the findings of the regular monitoring carried out by the Commission,
building upon the findings of the 2002 Regular Report for Slovakia. The report contains
two main parts.
The first part deals with economic issues. It describes briefly economic developments in
Slovakia, and then goes on to assess the implementation of the necessary economic
reforms in the areas highlighted in the conclusions of the 2002 Regular Report for
Slovakia as being in need of further improvements.
The second part gives an overview of where Slovakia stands in implementing all
commitments and requirements arising from the accession negotiations for each
acquis
chapter, both in terms of legislation and from the perspective of implementing structures,
including administrative capacity and enforcement. In view of their importance for the
implementation and enforcement of the
acquis,
the overall state of readiness of the public
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administration and the judicial system and the development of effective anti-corruption
measures are assessed in an introductory section to this part.
This report reflects the situation at the end of September 2003. It records decisions
actually taken, legislation actually adopted, measures actually implemented and
structures actually in place and functioning by that date.
For each chapter of the
acquis,
this report identifies the areas in which Slovakia is
expected to be, or is already, in a position to implement the acquis and the areas where
further action is still needed. Where relevant, the report also points out issues where
lagging or deficient preparations are a cause of serious concern. This assessment starts
from the premise that Slovakia must be fully prepared for membership from the date of
accession. In cases where transitional arrangements have been agreed in the accession
negotiations, their effect on Slovakia’s obligations is duly reflected in the assessment.
Numerous sources of information have been used to compile this report. Slovakia was
invited to provide information on its state of preparedness. The Report also draws on
information provided by Slovakia within the framework of the Association Agreement
and the accession negotiations, as well as on peer reviews that have taken place to assess
its administrative capacity in specific areas. Council deliberations and European
Parliament reports and resolutions have been taken into account in drafting it.
1
Where
relevant, the Commission has also drawn on assessments made by various international
organisations such as the Council of Europe, the OSCE and the international financial
institutions, and by non-governmental organisations.
1
For the European Parliament the rapporteur is Mr Jan Marinus Wiersma.
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B.
E
CONOMIC ISSUES
In its 2002 Regular Report, the Commission concluded that
“The Slovak Republic is a functioning market economy. The continuation of its
current reform path should enable the Slovak Republic to cope with competitive
pressure and market forces within the Union.
Improvements can be made to the macroeconomic situation, which requires urgent
measures to reduce both the fiscal and current account deficits. Expenditure reforms,
in particular in the health and pension area and as regards subsidies and
guarantees, are essential. The unemployment problem necessitates a whole range of
structural reforms, including the elimination of disincentive effects in the social
protection system and a more flexible labour legislation. Supervision of the financial
sector can be further strengthened. The effective implementation of the legal
framework for a market economy needs to be further enhanced.”
The principal purpose of this part of the Comprehensive Monitoring Report is to assess
the implementation of recommendations for improvements in the areas identified in last
year’s Regular Report. The focus is on the change since last year and not on the overall
degree of functioning of the market economy or degree of competitiveness. The
assessment can be found in Section 2. Section 1 briefly describes recent economic
developments in Slovakia including the continuation of the reform path since last year’s
Report.
1.
Economic developments
Slovakia’s macroeconomic performance has been improving considerably, although
some imbalances remain significant.
Real GDP growth accelerated further to 4.4% in
2002. In the first half of 2003, it slowed down to 3.9% as a drop in the growth
contribution of domestic demand was not fully compensated by a strengthening of the
external growth contribution. Unemployment is falling from its level of 18.6% in 2002
but remained high at 17.7% in the first half of 2003. Employment is growing from an
employment rate of roughly 57% in 2002. The current account deficit again reached
more than 8% of GDP in 2002. However, it was more than fully covered by FDI inflows
which reached almost 17% of GDP in 2002. It has dropped very significantly in the first
half of this year. After reaching a record low of 3.3% in 2002, average annual consumer
price inflation has re-surged to around 8% this year as a consequence of adjustments to
administered prices and higher indirect taxes, while core inflation remains low.
Approximating harmonised EU standards (ESA95), the general government deficit
reached 7.2% of GDP in the election year 2002. For 2003, the government targets a
deficit of 5% of GDP. General government debt decreased from 49.8% of GDP in 2001
to 44.3% of GDP in 2002 – mainly reflecting the use of part of the very high
privatisation receipts to retire government debt.
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Slovak Republic
Real GDP growth rate
Inflation rate
- annual average
- December-on-
December
Unemployment rate
- LFS definition
General government
budget balance
Current account balance
per cent
per cent
per cent
per cent
per cent of
GDP
per cent of
GDP
million
ECU/Euro
Per cent
of GDP
Main Economic Trends
1998
1999
2000
4.0
6.7
1.3
10.4
2.2
12.2
2001
3.3
7.0
2002
4.4
3.3
2003
latest
3.9 H1
6.4
August
a
9.4
August
17.7 H1
5.8
:
-4.7
-9.7
14.1
16.7
-6.4
-5.8
8.4
18.7
-10.4
-3.6
6.3
19.4
-7.3
-8.6
3.4
18.6
-7.2 p
-8.2 p
Foreign direct investment
in flow
- balance of payments
data
-1893
:
-1088
:
-772
:
-1950
7.7 p
-2059
17.0 p
million
ECU/Euro
Sources: Eurostat. National sources.
a
:
:
:
1763
4260
Moving 12 months average rate of change.
P= provisional figures
Slovakia's progress on the reform path, also in the public finance area, has received
strong new impetus. Various measures have been decided on and some have already
become effective.
The government has decided to implement a far-reaching tax reform at
the beginning of 2004, mainly consisting of the introduction of a flat income tax rate and
a unified value added tax rate, both at 19%. On the expenditure side, one of the main
decisions so far relates to reforms of the pay-as-you-go pension system. The introduction
of a funded second pension pillar is being prepared. In addition, further steps in a still
long agenda for health care and social benefits reform have been taken. The extension of
guarantees has been further limited. Measures have also been taken to reduce the
structural deficiencies in the working of the Slovak labour market, in particular by a
revision of the labour legislation. In many structural reform areas, the government
benefits from strong technical support from international financial institutions. The
strong political reform commitment will need to be maintained for years to come so that
Slovakia continues its catching up with the most advanced acceding countries.
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Main Indicators of Economic Structure in 2002
Population (average)
a
GDP per head
Share of agriculture in:
- gross value added
- employment
Gross fixed capital formation/GDP
Per Cent
Per Cent
Per Cent
4.5
6.6
29.8
b
Thousand
PPS
Per cent of EU average
5,379 P
47
Exports of goods & services/GDP
Stock of foreign direct investment
Long term unemployment rate
Source: Eurostat
P provisional data
a
b
d
e
d
Per Cent
Million Euro
Euro per head
Per Cent of labour force
72.8
4858
903
12.1
Figures have been calculated using the population figures from National Accounts, which may differ from those used in demographic statistics.
Agriculture, hunting, forestry and fishing.
Data refer to 2001.
Data refer to 2000.
2.
Implementation of recommendations for improvements
The government has been reversing the expansionary
fiscal policy stance.
Whereas
Slovakia notified a general government deficit of 7.2% of GDP for 2002 (ESA 95), the
general government deficit target for 2003 is 5.0% of GDP. The government has
committed itself to a further deficit reduction to 3.9% of GDP in 2004 and to slightly
below 3% of GDP by 2006. The authorities have already reacted to budget execution
risks in 2003, which stem predominantly from lower than planned tax revenues, by
advancing planned excise tax increases. They seem to be prepared to take further
measures, if necessary. For 2004, they have decided to implement fundamental and
potentially growth enhancing tax reforms, consisting in particular of the introduction of
a flat personal and corporate income tax rate and of a unified value added tax rate, all at
19%. By their very nature, these changes make any revenue forecast highly uncertain and
pose a high risk for budget execution, thus necessitating a very conservative budgeting
approach and underscoring the need for a swift continuation of structural expenditure
reforms.
The restrictive fiscal policy stance supports a narrowing of Slovakia’s high
current
account deficit.
The current account deficit amounted to more than 8% of GDP in both
2001 and 2002. The more stringent fiscal policy of the new government, together with
the accelerated increase in administered prices in 2003 and 2004, has a dampening effect
on domestic demand. It also contributes to a more balanced policy mix and has allowed
the National Bank of Slovakia to reduce its key interest rate from 8.25% in April 2002 to
currently 6.25%. Together with market interventions, this has helped to mitigate the
appreciation pressure on the Slovak crown and prevented an associated loss in
competitiveness. Altogether, the current account deficit narrowed to slightly below 5% of
GDP in the 12 months ending in June 2003, mainly due to very strong export growth.
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The preparation of additional
public expenditure reforms,
which are necessary to
underpin the envisaged fiscal consolidation , has gained very strong momentum.
However, most of the necessary measures still need to be further specified, appropriately
sequenced and implemented.
The government decided on further parametric changes to
the pay-as-you-go pension system for the beginning of 2004. However, these reforms
remain incomplete, in particular with respect to the targeted increase in the retirement
age. Furthermore, the government is preparing the introduction of a funded pension
pillar. Additional steps have been taken to improve the financial situation of the health
care system,
inter alia
by introducing co-payments for health care services. Nevertheless,
a long reform road still lies ahead in this area. The extension of guarantees has been
limited. However, both guarantees and subsidies should be thoroughly screened to
implement additional reductions, also in connection with Slovak Railways and
agriculture. The development of a detailed medium-term fiscal framework, which
consistently embeds and sequences necessary expenditure reductions, is still lagging
behind.
The Slovak government has been moving more decisively to tackle the deep-seated
structural
unemployment problem.
Steps against major shortcomings mentioned in last
year’s Regular Report and the Joint Assessment of Employment Policy Priorities and
subsequent progress reports have been implemented or are under discussion. The
continuation of reforms in the health and social protection systems are of the utmost
importance and should reduce disincentives for employment creation and acceptance,
partly by reviewing social assistance benefits and lowering social contribution rates.
Similar effects are likely to result from the tax reforms scheduled for next year.
Furthermore, specific measures and programmes exist or are being considered to foster
employment creation by SMEs, to strengthen regional mobility (partly by ameliorating
the housing situation) and to reduce skill mismatches (partly by active labour market
measures), although the effectiveness and efficiency of these programmes need to be
continuously reviewed.
Progress has been made as regards
financial sector supervision
but the authorities need
to continue to safeguard the expanding financial sector against stability risks.
Both the
legal framework and the implementation capacity in the supervisory area have been
strengthened. A more detailed assessment of related issues is given in Part 3 of this
Report (Chapter 3 - Freedom of services).
Further measures to improve the
legal framework
for a market economy have been
instituted. Its
effective implementation
is also being enhanced. Nevertheless, additional
vigorous efforts in the area need to be pursued.
Examples of the further strengthening of
the legal framework are the substantial acceleration in price liberalisations in 2003, the
introduction of a highly regarded collateral law, and the above mentioned improvements
in the labour legislation. A new bankruptcy act is being prepared. Slovakia has also
embarked on an ambitious reform of the judicial sector. It aims, inter alia, at reducing the
heavy workload of judges by recruiting Higher Court Officials, applying case
management systems, reinforcing training, also on managerial capacity, and at combating
corruption. The effective implementation of the legal and administrative framework,
however, will require further significant efforts (see also Section B.1 on the Judicial
System).
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C.
C
OMMITMENTS
NEGOTIATIONS
AND
REQUIREMENTS
ARISING
FROM
THE
ACCESSION
As we approach the actual date of accession and the entry into force of the mutual rights
and obligations enshrined in the Treaty of Accession, it is necessary to focus efforts on
ensuring that Slovakia is fully prepared in all areas of the
acquis
from the start of its
membership. In other words, Slovakia must meet its commitments and requirements
arising from the accession negotiations.
In the 2002 Regular Report on Slovakia, the Commission found that:
Slovakia is generally meeting the commitments it has made in the negotiations.
Bearing in mind the progress achieved since the Opinion, the level of alignment and
administrative capacity that Slovakia has achieved at this point in time, and its track
record in implementing the commitments it has made in the negotiations, the
Commission considers that Slovakia will be able to assume the obligations of
membership in accordance with the envisaged timeframe. In the period leading up to
accession, Slovakia needs to continue its preparations, in line with the commitments
it has made in the accession negotiations.
As regards the administrative capacity to implement the acquis, the overall findings were
as follows:
Concerning the administrative capacity, Slovakia has largely achieved a sufficient,
though still rather fragile, capacity to ensure effective implementation and
enforcement of the acquis, notably in the area of the internal market and the various
Community policies. Slovakia needs to ensure the full operation of the
administrative structures, in particular with a view to guaranteeing the uniform and
predictable implementation of the acquis. Particularly close attention is required
regarding the structures necessary to implement that part of the acquis which will be
applicable only upon accession, in particular as regards sound and efficient
management of EC funds.
As part of its continuous monitoring, the Commission services addressed letters to
Slovakia in March and June 2003 expressing concern over its preparedness in the sectors
of insurance and investment services and securities markets within the free movement of
services chapter, the setting-up of a Paying Agency and of the Integrated Administration
and Control System and the upgrading of agri-food establishments within the agricultural
chapter, the final definition and actual establishment of the administrative structures for
the management of the Structural and Cohesion Funds within the chapter on regional
policy and co-ordination of structural instruments, and the Public Internal Financial
Control sector within the financial control chapter, and calling for urgent action to
remedy these shortcomings.
In order to give further guidance to Slovakia in its preparation efforts and to give the
necessary assurance to current Member States and other future Member States, this part
of the comprehensive monitoring report, in Section 2, gives an overview of where
Slovakia currently stands in implementing all commitments and requirements arising
from the accession negotiations for each of the 29 chapters of the
acquis.
It covers the
whole body of the
acquis,
on a chapter-by-chapter basis, both in terms of legislation and
from the perspective of implementing structures, including administrative capacity and
enforcement.
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The principal commitment undertaken by Slovakia in the accession negotiations is to be
fully prepared for membership in all areas by the date of accession. In a number of areas,
however, commitments were made to put in place and implement the acquis according to
specific timetables even before accession. This report examines the extent to which these
commitments have been met, and where delays have occurred, but the principal focus of
the assessment remains the requirement that Slovakia must be fully prepared as from
accession. Naturally, in cases where transitional arrangements have been agreed, their
effect on Slovakia’s obligations is duly reflected in the assessment. On the other hand, it
should be underlined that, in order for Slovakia to make effective use of its eligibility for
Community structural funds from 1 January 2004, the relevant acquis in areas such as
public procurement, state aid and environmental protection will need to be fully
respected from 1 January 2004 in relation to the implementation of structural funds
actions
2
.
For each chapter, a conclusion is provided, which is structured in the following way.
Firstly,
it identifies those areas where Slovakia is essentially meeting the commitments
and requirements arising from the accession negotiations and is expected to be, or is
already, in a position to implement the acquis from accession. This does not exclude the
possibility that certain actions are still to be taken, but these should under foreseeable
circumstances not pose particular difficulties.
In a
second
paragraph, the assessment identifies any areas where important further action
is still needed in order to complete preparations for membership. In some cases these
preparations are on-going, but enhanced efforts or quicker progress may be called for.
These are issues which can still be remedied taking into account the accession date of 1
May 2004 but which require the special attention of the authorities.
Thirdly,
where relevant, the assessment also identifies issues that are of serious concern.
These are areas where serious shortcomings exist which are likely to persist after
accession unless immediate remedial action is taken. These issues require the urgent
attention of the authorities. In view of their importance for the implementation and
enforcement of the
acquis,
the
overall
state of readiness of the public administration and
the judicial system and the development of effective anti-corruption measures, together
with the question of the translation of the acquis into Slovak, are evaluated in a separate
Section 1.
2
See also the Commission Communication on the implementation of commitments undertaken by the
acceding countries in the context of accession negotiations on Chapter 21 - Regional policy and
coordination of structural instuments, 16 July 2003 (COM(2003) 433 final).
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1.
Administrative and judicial capacity
Public administration
The Law on the Public Service and the Law on the Civil Service, which entered into
force in April 2002, set the legal framework for public administration. They aim at
creating a professional, impartial, politically neutral, efficient and flexible civil and
public service. The key institution responsible for the implementation of the Civil
Service Law is the Civil Service Office, established in March 2002. Its functions range
from recruitment, training and information to preparing secondary legislation. The
relevant secondary legislation was enacted in 2002 and 2003, with some delays in the
beginning. The staffing of the new office is nearly complete but considering the broad
range of competencies of the office the number of staff seems to be quite limited.
Transparent procedures for the recruitment of civil servants are in place. Recruitment on
the basis of the Civil Service Law has started with some delays due to procedural
problems. A recent amendment to the law empowering the head of the Civil Service
Office to delegate the competencies for recruitment to the service offices (e.g.
ministries), however, has made it possible to speed up the recruitment process. A new
salary scheme has been introduced into implementing regulations, aiming to ensure
adequate criteria and transparent procedures.
Slovak citizens have free access to information on the activity of the public
administration, and this right is being widely used.
Administrative control procedures are in place. The citizen’s right of recourse against
public service actions is guaranteed, including the right to put cases to the Office of the
Ombudsman and the Parliamentary Committee responsible for individual complaints and
petitions. Codes of ethics for civil servants and employees in the public administration
have been published. The control department of the Civil Service Office performs both
internal and external control functions.
There is no long-term strategy for training civil servants. Training is carried out by
various public and private bodies. There is a need to structure and intensify training
activities in the public sector.
On the basis of a constitutional amendment adopted by Parliament in February 2001,
self-administration at municipal level has been complemented at regional level with eight
self-administrative regions. The first elections for regional self-administrative bodies
were held in December 2001. A number of relevant laws have already been enacted, but
the legislation and implementation of the reform are not yet completed. The most
important outstanding point concerns fiscal decentralisation, which is due to be in place
at the beginning of 2005. It is important that the transfer of functions and fiscal
decentralisation go hand in hand, ensuring a timely and proper functioning of a
democratic, efficient and sustainable self-administration.
One of the four Deputy Prime Ministers is responsible for coordination of EU affairs. He
is assisted by a Secretary of State and a section within the Ministry of Foreign Affairs
specifically dealing with these issues. The level of staffing in sectors dealing with issues
related to European integration seems, in general, still insufficient. The Government has
acknowledged the necessity to increase the level of staffing in this area and is in the
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process of filling the remaining vacancies. Flexible measures and incentives have been
introduced to attract qualified staff. There is an urgent need to stick to these plans,
notably in the area of regional policy. The high turnover of civil servants, many of whom
leave for the private sector, continues to be a problem.
Judicial capacity
The judicial system in Slovakia comprises three tiers: district courts, regional courts and
the Supreme Court. At present, there are 55 district courts and 8 regional courts.
Regional courts function both as courts of appeal to the district courts and, in certain
cases, as courts of first instance. The Government is planning to reduce the number of
district courts. The Supreme Court is the highest judicial authority in the country,
working as a court of cassation, and as a court of appeal in cases dealt with at first
instance by a regional court. Finally, the Constitutional Court is an independent
authority, set up to protect compliance with the constitution.
Judicial independence is laid down in the constitution and in a number of laws. The
relevant legislation provides for transparent and open recruitment procedures, as well as
provisions for remuneration.
On the basis of a constitutional amendment adopted in 2001 a Judicial Council has been
set up, comprising 18 members, nominated by the judiciary, the Ministry of Justice,
Parliament and the President of Slovakia. The Judicial Council decides,
inter alia,
on the
assignment and transfer of judges, elects and recalls chairpersons of disciplinary court
panels, and submits to the President proposals for appointing and recalling judges. It
nominates also the candidates for the post of the President and Vice President of the
Supreme Court, and comments on draft budgets for the judiciary and on draft legislation
concerning the organisation of the judiciary. Apart from an urgent need for permanent
premises, the Judicial Council still lacks sufficient material, funding, staff and technical
resources, and its financial independence should be ensured. Efforts aimed at improving
the technical equipment and software, as well as the premises, of ordinary courts, should
continue.
The length of proceedings, in particular in civil and commercial cases, remains
problematic. However, additional recent amendments to the Code of Civil Procedure are
aimed at further alleviating this situation. The heavy caseload has stayed at a high level.
In 2002, the number of cases filed reached approximately 900 000, thus staying at about
the same level as in the two previous years. Judicial proceedings have an average length
of almost 18 months in civil cases. The average length of criminal proceedings was
around 4 months.
The level of public trust in the efficiency and fairness of the judicial system remains low.
The current system of disciplinary proceedings needs upgrading in terms of transparency
and adequacy of sanctions. Given that the disciplinary system is principally based on
judicial self-regulation, its efficiency to a large extent depends on the willingness of the
judiciary. Also, more efficient implementation by the respective judicial organisations of
the professional codes of ethics, including a system of sanctions with a deterrence effect,
would be most desirable.
The Court management system, which allows the random allocation of civil and
commercial cases, started to be implemented in the reporting period through pilot
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projects. This pilot phase has demonstrated that the system improves the efficiency of the
court’s administrative proceedings and reduces the delays in first-instance proceedings.
The full implementation of the Court management system at the Supreme Court would
therefore be a welcome step forward, as would the expansion of the system to cover all
ordinary courts, including their criminal law departments. In order to further increase the
efficiency of court management, the implementation of the Act on Higher Court Officials
should continue without delay.
The Judicial (training) academy is currently in the process of being established. Training
of judges and court personnel at this institution needs to be launched without delay,
including elements of training curricula aimed both at improving management skills
within the judiciary and at preparing it for post-accession requirements as regards the
implementation of EC law, where considerable deficiencies still exist.
Anti-corruption measures
There is a continuously high public and professional perception of widespread corruption
in Slovakia, and tackling it should be a priority. The most affected areas appear to be the
health care sector, education, the police and the judiciary. Corporate crime is a specific
problem in Slovakia and the business climate is still characterised to a certain degree by
legal uncertainty. There is a need for strict enforcement of the existing rules. The public
awareness of the need to fight corruption, including in the media is increasing.
The Government elaborated a National Programme for the Fight against Corruption in
1999, on the basis of which Action Plans were drawn up the following year. Its
implementation is ongoing. According to the Government, three quarters of the 1 500
concrete actions have been carried out or addressed to a large extent. Many of the
proposed actions, however, appear to be vague.
The Laws on Conflict of Interests, on the Special Prosecution Office and on the
Specialised Court for Corruption are currently being discussed in Parliament and should,
once adopted, represent an important instrument in improving the fight against
corruption. As regards transparency in the financing of political parties, further reforms
are needed, including an appropriate regulation of membership fees, of tax breaks for
donors and of efficient supervision of party financing. Specific measures should also be
considered in order to regulate lobbying. The Law on Free Access to Information has
contributed to increasing transparency within the administration and to reinforcing the
fight against corruption.
Although measures such as the introduction of the random allocation of cases and the
change in the Commercial Registry procedure should assist in reducing the risk of
corruption and bias in the judiciary, there is a need for focused ethical training at all
levels of legal education.
In December 2002, the Government decided to change the institutional framework of the
fight against corruption. A new department for the fight against corruption was
established within the Government Office, which is directly subordinated to the Deputy
Prime Minister and the Minister of Justice. This new department replaced the former
Central Co-ordination Unit and the Steering Committee. It is in charge of implementing
and co-ordinating the anti-corruption policy formulated by the Government and is
involved in the drafting of various relevant laws. Given the clear need for efficient co-
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ordination of the anti-corruption policy, the current staff within the department should be
reinforced. Furthermore, a special anti-corruption unit was established within the General
Prosecution Office. It is planned to increase its current staff numbers from 4 to a total of
9 prosecutors. However, a specific problem is the overlap still existing among law
enforcement agencies involved in the fight against corruption and financial crimes.
The Civil Code, amended in June 2002, created the legal conditions for ratifying the
Council of Europe Civil Law Convention on Corruption, which was approved in March
2003 by the Slovak Parliament. Slovakia is a party to the Council of Europe Convention
on Money Laundering, Search, Seizure and Confiscation from the Proceeds from Crime
and to the Criminal Law Convention on Corruption, as well as to the OECD Convention
on Combating Bribery of Foreign Public Officials in International Business Transactions.
It continues to participate actively in the monitoring of anti-corruption measures adopted
by the OECD Working Group on Bribery in International Commercial Transactions, and
participates in the Council of Europe Group of States against Corruption, GRECO (see
also Chapter 24 - Co-operation in the field of Justice and Home Affairs).
A GRECO evaluation mission visited Slovakia in September 2000. Several of the
recommendations resulting from this expert mission have in the meantime been
implemented or are in the process of being implemented, notably the reform of the
judiciary, of the licensing system and of the investigation procedures, raising awareness
about corruption among the population and media and extending the powers of the
Supreme Audit Office. Slovakia is strongly encouraged to continue to follow up these
recommendations.
Translation of the acquis into Slovak
In accordance with Articles 2 and 58 of the Act of Accession, all acts adopted by the
Union’s institutions and the European Central Bank prior to accession become applicable
to the new Member States and are to be published in the Official Journal of the European
Union in the new official languages. While the EU institutions take responsibility for the
final revision and publication of the translations, it falls to the acceding states to produce
the translations and to ensure a thorough legal and linguistic revision.
After a slow beginning, Slovakia is now providing a constant and high number of revised
texts and is on track. A credible planning has been established by the Translation
Coordination Unit in consultation with the EU institutions, and Slovakia is now meeting
the needs of the legal revisers. The voluminous translations of the agriculture acquis is
being revised at full speed and the flow of texts is catching up with the schedule. After a
rather weak start, the quality of the Slovak version of the
acquis
appears now to be
satisfactory in most texts. Problems in older texts which were translated in the earliest
stages and which do not meet the expected standard still need to be tackled.
Therefore, if the present flow is maintained, there should be no major problems for the
timely publication of the Special Edition of the Official Journal in Slovak.
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2.
The chapters of the acquis
As indicated, the following review of Slovakia’s ability to assume the obligations of
membership has been structured in accordance with the list of 29 acquis chapters.
Accordingly, this section opens with an assessment of the acquis relating to the
cornerstones of the internal market which are known as the “four freedoms”, and
continues with a systematic review on each of the chapters, covering all aspects of the
acquis,
including sectoral policies, economic and fiscal affairs, regional policy,
environment, justice and home affairs, external policies, and financial questions.
Chapter 1: Free movement of goods
The principle of the free movement of goods implies that products must be traded freely
from one part of the Union to another. In a number of sectors, this general principle is
supplemented with a harmonised regulatory framework, following the “old approach”
(imposing precise product specifications) or the “new approach” (imposing general
product requirements). The transposition of harmonised European product legislation
represents the vast majority of the content of this chapter. In addition, efficient
administrative capacity to apply horizontal and procedural measures in areas such as
standardisation, certification and market surveillance is essential. This chapter also
covers detailed EC rules on public procurement, requiring specialised implementing
bodies.
The
horizontal and procedural measures
necessary for the administration of the
Community product
acquis
in the new approach sector are largely in place. The
implementing structures for standardisation, metrology, accreditation, conformity
assessment and market surveillance are all in place. Improvements to administrative
capacity should continue particularly as regards market surveillance to ensure full
operational efficiency by the date of accession. Slovakia’s Institute for Standardisation
(SUTN) and the Slovak Ministry of Transports Posts and Communications are full
members of CEN and CENELEC, and ETSI respectively.
Slovakia has transposed almost all of the
sectoral legislation
under the
new approach
and in general the legislative transposition has been found to be in line with the
acquis.
Full transposition of the
acquis
on cableways and toys is still pending.
As regards the
old approach
directives, Slovakia has transposed most of the
acquis
in
these product sectors. Transposition of the chemicals
acquis
has largely been completed.
However, the directive on methods of sampling and analysis for fertilisers remains to be
fully transposed. Having recognised that the identification of "new" chemical substances
on its market is a matter of priority, Slovakia should provide for the appropriate
notification of such substances in accordance with the
acquis.
The transposition of the pharmaceutical
acquis
remains to be completed. Renewal in line
with EU requirements of all marketing authorisations for pharmaceuticals currently on
the Slovak market has not yet been completed. The transposition of the
acquis
on
registration of medicines has been completed but its practical implementation needs to be
improved. Also, preparations need to be completed, including the necessary legislative
changes, for the application by the date of accession of both the centralised procedure for
marketing authorisations and the procedure for the mutual recognition of registrations.
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Further amendment of existing legislation is also required in order to ensure the
introduction of the 90-days period for issuing price orders in line with the EC rules on
the transparency of price regulation, as well as to fully align with the
acquis
on good
clinical testing and good clinical practice.
Implementing legislation on foodstuffs, cosmetics, motor vehicles and agricultural and
forestry tractors, as well as on the classification of wood, remains to be adopted. Minor
changes to legislation on the composition of glass need to be introduced. As concerns
foodstuffs in particular, considerable progress has been made but legislative alignment
remains to be completed in a number of areas. In the field of food safety, much progress
has also been made on improving co-ordination between agencies and this process needs
to be completed. Aspects of food safety are also covered under
Chapter 7 – Agriculture.
Slovakia has taken the steps necessary to ensure the creation, reinforcement, and
operational capacity of the institutions required to manage the
acquis
in nearly all of the
sectors covered by the old approach sector directives. However, further attention is
required in particular as regards the administrative structures necessary in the area of
food safety in relation to implementing the Rapid Alert System for Food and Feed
(RASFF) and the Hazard Analysis Critical Control Points (HACCP) systems.
In the field of
public procurement,
further amendments to the Public Procurement Act
are required to ensure full alignment with the
acquis,
in particular concerning the
definition of bodies governed by public law and cases where the negotiated procedure
can be used. The Slovak Public Procurement Office is well organised and operating
effectively. However, training of staff should continue particularly in view of the
expected legislative changes.
In the
non-harmonised area
Slovakia has conducted initial screening of its national
legislation possibly in contradiction with the principle of free movement of goods; this
screening must now be completed and any barriers thus discovered must be removed.
New legislation on retail chain stores adopted in July 2003 and containing a number of
provisions incompatible with free movement will need to be amended or revoked.
Slovakia is still to adopt horizontal legislation introducing a mutual recognition clause
covering existing legislation. Minor amendments are required to ensure complete
transposition of the
acquis
concerning cultural goods. Alignment with the arms control
directive is essentially satisfactory. Preparations for full application of the regulation on
the control of product safety at external borders is under way. Effective co-ordination
between the market surveillance authorities and the customs services involved will need
to be assured.
Conclusion
Slovakia is essentially meeting the requirements for membership as regards the
horizontal and procedural measures
necessary for the management of Community
legislation in the new approach sectors, the
new approach sectoral legislation,
and in
the area of
public procurement.
Once the remaining aspects of the new approach
acquis
are put in place, Slovakia should be in a position to implement this
acquis
from
accession.
Slovakia is partially meeting the requirements in respect of the
old approach sectoral
legislation
and in the
non-harmonised area.
In order to complete preparations for
membership in this area, Slovakia needs to give priority to adopting the
acquis
in the
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remaining sectors. In addition to the completion of the alignment in the field of
foodstuffs, efforts should continue to improve the administrative capacity in the area of
food safety. Additional efforts should be made to provisionally notify "new" chemical
substances prior to accession so as to ensure the continued marketing of such substances.
Slovakia must pay particular attention to completing the screening of its national
legislation in the light of the principle of free movement and to ensuring the
implementation and enforcement of the principle of mutual recognition.
Chapter 2: Free movement of persons
The acquis under this chapter provides for non-discriminatory treatment of workers who
are legally employed in a country other than their country of origin. This includes the
possibility of cumulating or transferring social security rights, which requires
administrative cooperation between Member States. In order to facilitate the practice of
certain professions, the acquis under free movement of persons also includes specific
rules concerning mutual recognition of qualifications and diplomas; for certain
professions a harmonised training curriculum must be followed to be able to use the
professional title. Furthermore, this area also covers the residence and voting rights of
EU citizens in any Member State.
In the field of
mutual recognition of professional qualifications,
Slovakia’s legislation
is not yet fully in line with the
acquis.
Legislation aimed at transposing the relevant
sectoral rules concerning doctors, dentists, general care nurses, midwives, pharmacists,
commercial agents, has been adopted and needs now to be implemented. Legislation
concerning veterinary surgeons, architects and lawyers urgently needs to be adopted and
implemented. As regards the general system of recognition, alignment is largely
complete, with only some minor outstanding issues. Although the necessary
administrative structures for implementing the
acquis
on the mutual recognition of
professional qualifications are in place, further strengthening is needed. In particular, the
remit of the administrative bodies concerned will need to be adapted following the
adoption of the relevant legislation, and sufficient training provided to ensure the correct
application of recognition procedures.
In the area of
citizens’ rights
legislative alignment has been largely completed, except as
regards the right to participate in the European Parliament elections and as regards equal
treatment in access to education. The main administrative structures for implementation
are in place.
As for
free movement of workers
a transitional arrangement has been agreed. For the
first two years following accession, current Member States will apply national measures,
or bilateral agreements, to regulate the access of workers from Slovakia to their labour
markets. These arrangements may continue up to a maximum of seven years. Slovakia
has adopted legislation aiming at full transposition of the
acquis
in this area.
With regard to
co-ordination of social security systems
no transposition into national
legislation is needed to achieve alignment with the
acquis.
A number of bilateral
agreements with current Member States, which rely on the same principles as the EU
rules in this area, have been agreed. However, the necessary administrative structures
need to be further developed.
Conclusion
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Slovakia is essentially meeting the commitments and requirements in the area of
citizens’ rights, free movement of workers
and
co-ordination of social security
systems.
Some legislative adjustments need to be made as soon as possible to allow EU
citizens to participate in the European elections of June 2004. Equal treatment in the
access to education must be ensured. The ongoing measures to ensure adequate
administrative capacity in these areas should continue.
The requirements relating to the
mutual recognition of professional qualifications
have partially been met. In order to complete preparations for membership in this area,
Slovakia must urgently ensure the adoption and implementation of the remaining
outstanding legislation covering certain sectoral directives, in particular for lawyers.
Slovakia also has to reinforce its administrative capacity to implement the
acquis
on all
aspects of mutual recognition of qualifications.
Chapter 3: Freedom to provide services
Under this chapter, Member States must ensure that the right of establishment and the
freedom to provide services anywhere in the EU is not hampered by national legislation.
In some sectors, the
acquis
prescribes harmonised rules which must be respected if the
internal market is to function; this concerns mainly the financial sector (banking,
insurance, investment services and securities markets) but also some specific professions
(craftsmen, traders, farmers, commercial agents). Harmonised rules concerning personal
data protection and certain information society services must also be respected.
In the field of the
right of establishment and the freedom to provide non-financial
services,
the remaining legal and administrative restrictions need to be removed,
particularly those that discriminate against non-nationals. Potential restrictions remain to
be identified by Slovakia in the light of the relevant case law of the Court of Justice. This
screening must now be completed. New Slovak legislation on retail chain stores adopted
in July 2003 and containing a number of provisions incompatible with EC provisions on
freedom to provide services will need to be amended or revoked. Some changes are
required to the business licensing regime in Slovakia in order to bring it into line with the
acquis.
In Slovak legislation regulating economic activity, a clear distinction should be
made between economic operators providing services in Slovakia temporarily and those
established permanently, in order to ensure the free provision of cross-border services.
This distinction is currently not reflected in the Commercial Code and the Sole Traders
Act.
In the field of financial services, Slovak legislation is largely in line with the
acquis
in
the
banking sector.
Legislation remains to be fully transposed, however, as regards the
directive on electronic money institutions and the need to cover foreign branches of
Slovak banks in the deposit guarantee scheme.
The National Bank of Slovakia (NBS) is essentially well positioned to deal with the
acquis-related
tasks as a supervisory authority in the field of banking. However, the
number of on-site examinations by the NBS should be stepped up, the training and
number of prudential supervisors increased, the concepts of interest-rate risk and
operational risk anchored in the supervisory process, and enhanced co-ordination with
the Financial Market Supervision Office implemented.
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As regards the
insurance sector,
legislative alignment remains to be completed. The
insurance legislation will need to be amended to address the remaining gaps as regards
life, non-life and insurance accounts directives. Recent amendments to the legislation on
motor insurance aim at fully aligning with the acquis in this area. The administrative
capacity of the supervisory authority, the Financial Market Supervision Office, should be
further strengthened, including through the hiring of more staff and continued training.
In the field of
investment services and securities markets,
the legislation is broadly in
line, although further legislative amendments are still needed, as well as the
transposition of recent
acquis.
The directive on financial collateral remains to be
transposed. Slovakia benefits from a transitional period as regards the full application of
EC investor compensation rules. Legislation needs to be introduced to reflect the
timetable for the phasing-in up until end 2006. The administrative capacity of the
Financial Market Supervision Office should be further improved.
Concerning the
protection of personal data and the free movement of such data,
a
number of shortcomings in the Slovak legislative transposition still need to be addressed.
Also, the viability of the human and financial resources allocated to the Data Protection
Office needs to be assured.
As regards
information-society services,
the directives on conditional access and e-
commerce needs to be transposed and implemented before accession. The necessary
administrative structures are in place, but further development is required to ensure
proper implementation of these directives.
Conclusion
Slovakia is essentially meeting the requirements for membership and is expected to be in
a position to implement the
acquis
in the area of
banking services
as well as
investment
services and security markets
by the time of accession. It should complete preparations
in these sectors.
Slovakia is meeting the majority of the requirements for accession in the areas of
insurance
and
information-society services
and the
protection of personal data.
In
order to complete preparations for membership, a number of important directives remain
to be fully transposed in these areas. This work must now be accelerated. Enhanced
efforts are also needed to remove all administrative and legal restrictions on the freedom
to provide the
right of establishment and the freedom to provide non-financial
services.
Chapter 4: Free movement of capital
Under this chapter, Member States must remove all restrictions in national law on the
movement of capital between themselves, but also with third countries (with some
exceptions) and adopt EU rules to guarantee the proper functioning of cross-border
payments and transfers of all forms of capital. The acquis under this chapter also includes
harmonised rules on payments systems and the fight against money laundering, requiring
adequate enforcement capacity.
In the area of
capital movements and payments,
Slovakia is broadly in line with the
acquis,
with the remaining alignment taking place according to schedule, in particular as
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concerns the relaxation of restrictions on institutional investors. The supervisory
institutions and procedures are also being strengthened.
In accordance with the transitional arrangement it has been granted, Slovakia will
remove restrictions on the
acquisition
of agricultural land and forests by EU nationals
and by EU companies by 2011 at the latest.
In the field of
payment systems,
Slovakia has completed legislative alignment. As
concerns implementing structures, the real time gross settlement system is scheduled to
be implemented at the beginning of 2004. A permanent body for the out-of-court
settlement of disputes between banks and customers has been set up.
In the area of
money laundering,
the relevant directives have been transposed into
national legislation. Slovakia is also completing implementation of the Financial Action
Task Force recommendations, in particular through the phasing-out of anonymous
accounts. As concerns administrative structures, further reinforcement of the Financial
Investigation Unit and improved co-ordination between the various bodies dealing with
money laundering are needed (see
also chapter 24 – Justice and home affairs).
Conclusion
Slovakia is essentially meeting the requirements for membership and should be in a
position to implement the
acquis
in the area of
free movement of capital
from
accession. A limited number of specific issues still need to be addressed in these areas
before accession and the few remaining restrictions on capital movements, not covered
by transitional arrangements, will need to be removed. The bodies involved in the fight
against money laundering need to continue to be strengthened.
Chapter 5: Company law
Under this chapter, Member States must adopt and apply harmonised rules required for
the proper operation of companies in the internal market. They concern five legislative
fields: company law in the strict sense, accounting law, intellectual property rights,
industrial property rights, and the recognition and enforcement of judgements in civil and
commercial matters as well as of contractual obligations.
In the field of
company law
as such, Slovak legislation is broadly in line with the
acquis.
A number of inconsistencies in the transposition of the company law directives remain,
however, notably with respect to the Second Directive (co-ordination of safeguards) and
with regard to a provision of the Code of Civil Procedure allowing provisional entries in
the Register regardless of the legal validity of the decision. Administrative capacity
needs to be further improved, particularly as regards the operation of the commercial
register and registration procedures and the need to further increase legal certainty in that
area.
With regard to
accounting,
Slovakia’s commitments have been met and it is expected to
be in a position to implement the
acquis
in this field from the date of accession.
Administrative capacity appears to be adequate.
In the field of
protection of intellectual and industrial property rights (IPR),
Slovakia
is largely meeting its commitments on copyright and related rights. Legislation remains
to be adopted as regards the recent information society directive.
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As agreed in the accession negotiations, specific transitional rules will apply in relation
to pharmaceutical product patents, involving the non-application of Community
exhaustion to certain exports from Slovakia, as regards the granting of supplementary
protection certificates for medicinal and plant protection products, as well as in relation
to the extension of registered or pending Community trademarks to the territory of
Slovakia.
As regards enforcement of IPR, administrative structures are in place but need to be
strengthened. Particular attention should be paid to the effectiveness of the administrative
and judicial bodies (e.g. customs services, the police, the judiciary) involved in IPR
enforcement and the fight against piracy and counterfeiting, especially cable
retransmission piracy. Co-ordination and co-operation between these bodies should be
improved and adequate resources and continued training provided.
The
Regulation replacing the Brussels Convention
on mutual recognition and
enforcement of foreign judgements in civil and commercial matters will be directly
applicable upon accession, and accession to the
Rome Convention
will only be possible
upon accession. Slovakia should designate the relevant courts or other authorities to
ensure swift implementation of these provisions
(see also Chapter 24 - Justice and home
affairs).
Conclusion
Slovakia is essentially meeting the requirements for membership, and is expected to be in
a position by accession to implement the
acquis,
in the areas of
company law
and
accounting,
and the
Regulation replacing the Brussels Convention
and the
Rome
Convention.
The transposition of the company law
acquis
will need to be completed and
the operation of the commercial register and registration procedures improved.
The majority of commitments and requirements arising from the accession negotiations
in the field of the
protection of intellectual and industrial property rights
have been
met. Further legislative adjustments are required in respect of copyright and related
rights, and information society rules. Although the legislation is mostly in line, enhanced
efforts are in particular needed to strengthen the enforcement of intellectual and
industrial property rights. Better co-ordination and training of enforcement bodies is
required (mainly, customs, police and judiciary) and the efficient functioning of a well-
trained judiciary should be given particular attention.
Chapter 6: Competition Policy
The competition
acquis
covers both anti-trust and state aid control policies. It includes
rules and procedures to fight anti-competitive behaviour by companies (restrictive
agreements between undertakings and abuse of dominant position), and to prevent
governments from granting state aid which distorts competition in the Internal Market.
Generally, the competition rules are directly applicable in the whole Union, and Member
States must fully co-operate with the Commission on the enforcement of these rules.
In the
anti-trust
sector, Slovak legislation covers the main principles of Community
anti-trust rules as regards restrictive agreements, abuse of dominant position and merger
control. However, Slovakia still needs to ensure that its legislation is not in contradiction
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with the more recent Community block exemptions. Preparations should continue for the
application of the EC's new procedural regulation.
Slovakia has the necessary implementing structures in place, and its Antimonopoly
Office (AMO) is functioning well. Further efforts are needed to raise awareness of anti-
trust rules among all market participants and to build up a credible and transparent
competition culture. Special training for judges should be further developed.
The enforcement record is generally satisfactory. However, in order to ensure further
strengthening, priority needs to be given to cases which most seriously distort
competition and more deterrent sanctions should be imposed. Internal guidelines on a
more stringent enforcement policy recently approved by the AMO should now be put
into practice.
In the field of
state aid,
Slovakia has adopted state aid rules covering the main principles
of the
acquis.
Fine-tuning of the legislative framework taking into account latest
developments in the
acquis
should continue.
The necessary implementing structures are in place. The Slovak State Aid Office has
managed to maintain its independence, but still needs to improve its performance.
Further efforts are needed to raise awareness of state aid rules among all market
participants and aid grantors to build on work already carried out in this area. Slovakia
must also pay further attention to training of the judiciary.
The enforcement record is generally satisfactory, but Slovakia should pay more attention
to the assessment of aid schemes given the importance of gaining experience in this area
in view of the possibilities under the structural funds. The SAO should pay particular
attention to state aid control in sensitive sectors.
Slovakia benefits from two transitional periods during which fiscal aid can be granted to
one company in the steel sector, to be discontinued at the end of 2009 at the latest,
depending on the fulfilment of certain conditions, and to one company in the automotive
sector, to be discontinued by the end of 2008, also subject to certain conditions. There
are serious concerns as to compliance with one of the conditions for granting aid to one
company in the steel sector, namely as regards a production limitation. It is imperative
that Slovakia ensures full compliance with the conditions for granting aid attached to the
exceptional transitional arrangements granted.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the
anti-trust
area and is expected to be in a position to
implement this
acquis
from accession. Slovakia should complete the fine-tuning of the
legislative framework and ensure further strengthening of enforcement in this area.
Slovakia is meeting the majority of the commitments and requirements arising from the
accession negotiations in the
state aid
area. In order to complete preparations for
membership, attention should be paid to raising awareness of state aid rules among all
market participants and aid grantors, to training the judiciary and to continued
improvements to the enforcement record.
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There are serious concerns as regards the fulfilment of the conditions specified in the
Accession Treaty for the exceptional transition arrangement in the steel sector. Slovakia
must pay urgent attention to ensuring that the conditions specified in the Accession
Treaty for the exceptional transition arrangement in the steel sector are fully respected.
Unless immediate remedial action is taken, Slovakia will not meet the requirements for
EU membership in this area by accession.
Chapter 7: Agriculture
The agriculture chapter covers a large number of binding rules, many of which are
directly applicable. The proper application of these rules and their effective enforcement
by an efficient public administration are essential for the functioning of the common
agricultural policy. This includes the setting up of management systems such as a Paying
Agency and the Integrated Administration and Control System, which are covered under
”horizontal issues” below, and also the capacity to implement rural development actions.
The acceding countries must be ready to be integrated into the common market
organisations for a range of agricultural products, including arable crops, fruits and
vegetables, and meat. Finally, this chapter covers detailed rules in the veterinary field,
which are essential for safeguarding animal health and food safety in the internal market,
as well as in the phytosanitary field, including issues such as seed quality, harmful
organisms and plant protection products.
Horizontal issues
The legal framework in view of establishing the
Paying Agency
and the related
procedures remain to be adopted in Slovakia. Notwithstanding the creation of a
provisional section of the Agricultural Paying Agency within the Ministry of Agriculture
in April 2003, the establishment of the Paying Agency will urgently need to be
accelerated. A great deal of work remains to be done (such as agreements with delegated
bodies, written procedures and development of the IT system), if Slovakia is to have a
functioning Paying Agency by the date of accession.
The establishment of a functioning
Integrated Administration and Control System
(IACS) is still seriously delayed from both a technical and an organisational point of
view. Most of the preparations are still at the planning stage, except for the setting up of
the land parcel identification system. Given the work still to be done, and the time
remaining, there must now be serious doubts as to whether Slovakia can have a
functioning system in place by the date of accession.
Regarding
trade mechanisms,
the legal framework needs to be adopted and the
authority responsible for export refunds and licensing, i.e. the Paying Agency,
established. The relevant control tasks will be under the responsibility of the customs
services. The administrative structures and procedures still need to be established in most
fields.
Concerning
quality policy,
administrative structures remain to be fully set up. In the
field of
organic farming,
administrative structures are mostly in place, but need to be
strengthened.
Slovakia is expected to have implemented the
Farm Accountancy Data Network
(FADN) by accession.
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State aid
measures in the field of agriculture remain to be brought in line with the
acquis
by accession.
As concerns direct payments to farmers, the Slovak government has decided to apply the
single area payment scheme (SAPS) in the first years after accession.
Common market organisations
The responsible authority for intervention as well as inspection and authorisation of
payments for
arable crops
will be the Agricultural Paying Agency, which still remains
to be established. The Agricultural Intervention Agency is to be the implementing body.
The establishment of the actual structures, including intervention centres and storage
premises, needs to be accelerated. Further progress is required as regards the
acquis
on
fibre crops, dried fodder and potato starch.
The Intervention Agricultural Agency is responsible for managing most elements of the
sugar
common market organisation (CMO). Although most of the necessary legal rules
have been enforced, practical implementation of the different mechanisms of the CMO of
sugar should be accelerated. Enhanced efforts are required to establish administrative
structures and procedures for full application of the CMO.
Implementing legislation as regards marketing standards for
fruit and vegetables
and
producers' organisations has been adopted. However, detailed rules still remain to be
adopted regarding the operational programmes and control of operational funds.
Administrative structures are in place, but the relationship between inspection bodies
remains to be clarified, producer organisations should be further encouraged and
mechanisms for reporting entry prices should be established. Due attention must be given
to the application of marketing standards on the national market.
In the area of
wine and alcohol,
most of the implementing legislation concerning the
CMO for wine has been adopted. Labelling rules on brandy remain to be brought in line
with the
acquis.
There has been progress in finalising the vineyard register, which still
needs to be fully completed to cover the whole territory. The register of replanting rights
acquired before accession needs to be provided. Administrative structures are partially in
place.
A
milk
quota system is in place in Slovakia. Further legal and administrative adjustments
are, however, necessary in order to achieve full compliance with the
acquis,
in particular
with regard to control. Other mechanisms of the CMO, such as intervention and trade
with third countries, remain to be set up.
Legislative measures have been adopted regarding carcass classification for
beefmeat,
sheepmeat and pigmeat
as well as for beefmeat labelling. Legislative measures for a
price reporting system remain to be adopted. The beef carcass classification regulation
has been adopted but is still in its initial stage of implementation and a control system for
classification and price reporting needs to be set up immediately. In addition, the training
system must be improved to include more practical aspects and an examination,
including a practical test, must be carried out.
For
eggs and poultry,
legislative measures for the marketing standards, price reporting
and reporting of production statistics remain to be adopted.
Rural development
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The Agriculture Act, which will complete the administrative organisation for rural
development in Slovakia, still remains to be adopted. Slovakia’s absorption capacity for
SAPARD funds has increased, which is an encouraging sign that administrative capacity
to use these funds has improved. However, the take-up of SAPARD funds has been slow.
There is a need for the Slovak authorities to examine the reasons for this and to take
appropriate action. Slovakia has transmitted a formal draft Rural Development
Programme for EAGGF Guarantee expenditure to the Commission.
Veterinary and phytosanitary issues
Transposition of legislation on transmissible spongiform encephalopathies (TSEs) and
animal by-products
has taken place, but still needs to be completed and adapted. TSE
surveillance is close to compliance, but some shortcomings need to be remedied (notably
as regards laboratory capacity). A total feed ban has not yet been implemented. Official
controls in the fields of special risk material removal and disposal of risk material need to
be strengthened.
The establishment of the
veterinary control system in the internal market
has not yet
been fully accomplished. Slovakia has not yet joined ANIMO, the computerised network
linking veterinary authorities. The
acquis
for identification and registration of animals
has been transposed. A central computer database for bovine animals is operational, but
needs upgrading in order to fulfil EU requirements. According to information provided
by Slovakia, identification of bovines has been completed nearly to 95 %, although a
significant number of small holdings are not yet registered. Enhanced efforts are needed
to complete the registration of holdings and animal identification, especially for species
other than bovine. The legislation for financing of veterinary inspections and controls
still needs to be finalised. Work is also needed to transpose legislation regarding
veterinary checks of imports from third countries and rules for imports. Enhanced efforts
are required to bring border inspection posts into compliance with EU requirements.
Regarding
animal disease control measures,
national contingency plans-on-foot and
mouth disease and classical swine fever, Newcastle disease and avian influenza have
been provided. Slovakia has joined the Animal Disease Notification System (ADNS).
Transposition of legislation on
trade in live animals and animal products
still needs to
be completed.
Transposition of legislation on
public health
protection has been largely finalised, but
needs to be adjusted. The upgrading of establishments needs urgent attention in particular
in the meat, milk and fish sectors. Transitional arrangements have been granted for a
meat and a fish establishment until three years after the date of accession. Products from
these establishments will be restricted to the national market in line with the commitment
given by Slovakia that all establishments continuing in operation after accession will be
in compliance with the
acquis.
However, there is a high probability that a significant
number of agri-food establishments will not be in compliance with the relevant EU
requirements at the date of accession.
The
acquis
on
common measures (including zoonoses)
has been transposed. Attention
must be given to improving the implementation of control systems in relation to residues
and veterinary medicinal products.
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The
acquis
in the field of
animal welfare
has been largely transposed. Administrative
structures are in place at central, regional and district level for supervision and
monitoring of the compliance with the animal welfare legislation.
In the field of
zootechnics,
legislative transposition still needs to be completed.
The
acquis
for
animal nutrition
remains to be transposed. Further efforts are needed to
build up the capacity of the inspection and control bodies and to bring official controls in
line with EU requirements.
In the field of
phytosanitary
legislation, transposition of the
acquis
on harmful
organisms is well advanced, but further adjustments are needed to ensure full
compliance. Registration for plant passport purposes remains to be completed and
implemented. Transposition of the legislation on marketing of seeds and propagating
material should be accelerated. Most legislation on plant protection products is in place,
but controls at the user level should be improved in order to ensure full implementation.
Legislation on maximum residue limits for pesticides and on methods of sampling for
pesticide residues still needs to be adopted. Controls in the area of pesticide residues in
food need to be strengthened through the extension of the range of analysis and enhanced
laboratory capacity.
Slovakia has to ensure that international veterinary and phytosanitary agreements are
brought into compliance with the EU
acquis
by accession.
As regards food safety, transposition of the legislation is still behind schedule and needs
to be speeded up and completed. Further adjustments are needed in order to ensure full
alignment with the European food safety framework. As regards the administrative
structures, legislation on the Rapid Alert System for Food and Feed (RASFF) remains to
be put in place – the contact point has been appointed but is not yet fully operational,
and co-ordination on food safety issues within the Ministry of Agriculture should be
enhanced. Aspects of food safety are also covered under
Chapter 1 – Free movement of
goods.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations, in (as far as the horizontal issues are concerned)
quality policy,
organic farming,
the
Farm Accountancy Data Network
(FADN) and
state aid;
and, as
far as the common market organisations (CMOs) are concerned, in
arable crops, fruit
and vegetables, milk, sheep and pigmeat,
and
eggs and poultry;
and in
rural
development.
In the veterinary and phytosanitary field, the requirements relating to
animal disease control measures, trade in live animals and animal products, animal
welfare, zootechnics and animal nutrition
have essentially been met. Subject to good
progress being maintained in these areas, Slovakia should be in a position to implement
the
acquis
by accession.
Slovakia is partially meeting the commitments and requirements for membership as
regards
trade mechanisms,
the CMOs for
sugar, wine
and
beefmeat,
and in the
veterinary field the
veterinary control system in the internal market
(as regards
veterinary checks for import from third countries and animal identification),
TSEs and
animal by-products
(feed ban),
common measures
(residue controls) and
phytosanitary issues
(only as regards controls on maximum residue limits for
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pesticides). Unless efforts are accelerated in these areas, there is a risk that functioning
systems will not be in place at accession.
There are serious concerns about Slovakia’s preparations to set up its
Paying Agency
and to implement the
Integrated Administration and Control System
(IACS) and
about
public health
protection as regards the upgrading of agri-food establishments.
Substantial additional efforts are urgently needed in these areas. Unless immediate
remedial action is taken, Slovakia will not be in a position to implement the
acquis
in
these areas by the date of accession.
Chapter 8: Fisheries
The
acquis
on fisheries consists of regulations, which do not require transposition into
national legislation. However, it requires the introduction of measures to prepare the
administration and the operators for participation in the Common Fisheries Policy (in the
areas of market policy, resource and fleet management, inspection and control, structural
actions and state aid). In some cases, existing fisheries agreements or conventions with
third countries or international organisations need to be adapted.
In the field of
resource and fleet management and inspection and control,
Slovakia
has adopted the relevant legislation. The State Statistics Office is in charge of collecting
fish-related data. Administrative capacity in this sector should be further strengthened.
In the area of
structural actions,
the fisheries sector will benefit from the Sectoral
Operational Programme for Agriculture and Rural Development. However, the Paying
Agency remains to be established.
In the area of
market policy,
the setting-up of the administrative structures regarding
producers’ organisations remains to be completed. The State Veterinary and Food
Administration is the authority responsible for supervision of placing fish and fishery
products on the market and for control of imported fish. In general, administrative
capacity regarding controls of the implementation of common marketing standards, and
collection and transmission of data concerning the price reference regime, should be
enhanced.
As regards
state aid
to the fisheries sector, Slovakia must bring its national State Aid
schemes into conformity with the
acquis.
Slovakia has not concluded any
international fishing agreements.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations, and is expected to be in a position from accession to implement
the
acquis
in the area of
fisheries.
However, as regards structural actions, the legal
framework for the establishment of the Paying Agency remains to be completed.
Furthermore, administrative capacity needs to be strengthened in general and, more
particularly, administrative structures as regards producers’ organisations need to be set
up.
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Chapter 9: Transport policy
EC transport legislation aims at improving the functioning of the Internal Market by
promoting efficient and environment- and user-friendly transport services. The transport
acquis
covers the sectors of road transport, railways, aviation, maritime transport and
inland waterways. Member States are required to adopt and implement legislation
concerning technical and safety standards as well as social standards. In order to further
develop the European Single Transport Market, EC legislation also includes rules on
market liberalisation. An important aspect of EC maritime policy is the establishment of
Union-wide maritime safety standards.
The extension of the
trans-European transport networks
has been defined. The
necessary administrative capacity, in both qualitative an quantitative terms, needs to be
reinforced in the road and rail sector in order to prepare for the significant investments
that will be needed in transport infrastructure .
In the land transport sector, Slovakia needs to complete its legislative alignment with the
road transport
acquis.
Framework legislation is in place and in line with the
acquis.
Secondary legislation is still being adopted according to schedule in order to complete
alignment with the
acquis.
Alignment with the fiscal and social
acquis
has been
completed, but the latter in some cases requires modifications in order to be completely
in line with the
acquis.
In the technical field, implementing legislation remains to be
adopted, notably with regard to speed limitation devices, technical roadside inspections
of commercial vehicles, digital tachographs and transportable pressure equipment.
Slovakia has agreed to a transitional arrangement put forward by the EU concerning
gradual reciprocal access to the cabotage market in the road haulage sector (for a
maximum duration of five years). Further efforts are needed in terms of enforcement of
legislation, in particular as far as the social and technical
acquis
are concerned.
Administrative capacity is in place, but further strengthening should continue, especially
by increasing the number of staff and training specialised staff in key supervisory and
control functions. Concerning roadside and company checks in particular, the system
needs to be redesigned in order to increase the quantity, quality and efficiency of checks.
Training has to be increased and equipment improved accordingly. Co-ordination
between relevant enforcement authorities needs to be improved considerably.
Transposition of the
rail transport
acquis
is taking place according to schedule. The
process remains to be completed, in particular with regard to the interoperability
directives. In the framework of the ongoing reorganisation process, the capacity of
railway administration needs to be further strengthened. The Railways Regulatory
Authority remains to be established.
On
inland waterways
transport, legislative alignment is not yet completed, in particular
as regards safety advisors for the transport of dangerous goods, the reciprocal recognition
of navigability licences, the technical requirements for inland waterway vessels and the
systems of chartering and pricing. The administrative capacity is satisfactory.
In the area of
air transport,
framework legislation is in place but not entirely in line with
the
acquis,
in particular with regard to licensing, security and ground handling.
Secondary legislation is still being adopted in order to complete alignment with the
acquis,
including Joint Aviation Requirements (JARs) implementation. Full membership
of the Joint Aviation Authorities remains to be achieved through the implementation of
an Action Plan; Slovakia should make particular efforts to become a member before
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accession as required by the
acquis
and irrespective of the setting up of the European
Aviation Safety Agency (EASA).
In the field of
maritime transport,
framework legislation is in place and in line with the
acquis.
However, the adoption of implementing legislation remains to be completed, in
particular in relation to the
acquis
adopted under the “Erika” packages relevant to
Slovakia. Administrative capacity is satisfactory.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
negotiations as regards
trans-European transport networks, rail transport, inland
waterways, air transport
and
maritime transport,
and is expected to be in a position
to implement the
acquis
in these areas by the time of accession. Slovakia needs to
complete the legal alignment in the areas of rail transport, as well as in the areas of
inland waterways, air transport and maritime transport. Slovakia needs to reinforce its
administrative capacity in the rail sector and to prepare for the significant investments
that will be needed in transport infrastructure. Moreover, Slovakia must establish the
Railways Regulatory Authority.
Slovakia is meeting the majority of commitments and requirements in the areas of
road
transport.
In order to complete preparations for membership, enhanced efforts are
required by Slovakia in order to ensure enforcement of legislation, in particular as far as
the social and technical
acquis
are concerned. Administrative capacity needs to be further
strengthened, in particular concerning roadside and company checks and as regards
Roadside Technical Inspections of heavy commercial vehicles.
Chapter 10: Taxation
The acquis on taxation largely covers indirect taxation, as concerns VAT (value-added
tax) and excise duties. It lays down definitions and principles of VAT. Excise duties on
mineral oils, tobacco products and alcoholic beverages are regulated at EU level as
concerns the structure of the duty, the level of minimum rates and the holding and
movement of excisable goods. As concerns direct taxation, the acquis covers some
aspects of corporate taxes and aims mainly at removing obstacles to cross-border
activities between enterprises. Finally, the Community legislation in the area of
administrative co-operation and mutual assistance provides tools to prevent intra-
Community tax evasion and tax avoidance on both direct and indirect taxation.
In the area of indirect taxation, further transposition of the
acquis
on
VAT
is still
required. Transposition should be completed in particular as concerns broadening the
currently applicable definition of taxable persons, introducing the special schemes for
farmers, investment gold and second-hand goods, aligning remaining discrepancies as
regards taxable transactions, the taxable scope and the taxable amount. Particular
attention should be given to the transposition of the intra-community regime.
Furthermore, Slovakia should align the scope of exemptions, except in the areas where it
has obtained transitional periods (see below).
Slovakia was granted transitional periods to continue the application of the reduced VAT
rate on the supply of construction work for residential housing not provided as part of a
social policy and excluding building materials (until 31 December 2007), the supply of
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heat energy for heating and the production of hot water by private households and small
entrepreneurs who are not registered for VAT (until 31 December 2008) and the supply
of natural gas and electricity (until one year after accession). Derogations were also
granted as concerns the application of a VAT exemption on international passenger
transport, and the application of a VAT exemption and registration threshold of € 35 000
for small and medium sized enterprises.
As concerns administrative capacity, further extensive efforts should continue to
modernise and enhance the efficiency of the Tax Directorate, which is overall weak and
suffers from insufficient staffing. Priority should be given to reducing the excessive
volume of VAT refunds, and improving tax collection, control procedures and audit
functions, also by developing an efficient system of risk analysis. Staff policy and
training should be improved.
As concerns
excise duties,
some further efforts are necessary in order to complete
alignment with the
acquis.
Slovakia needs in particular to introduce the suspension
scheme for domestic movements of tobacco products and alcoholic beverages and
complete alignment for mineral oils. Furthermore, the suspension scheme needs to be
extended to intra-community movements for all the EU harmonised excisable goods. In
addition, Slovakia needs to further align its legislation as concerns some exemptions and
definitions in the area of cigarettes – including the introduction of a single mixed
specific/ad valorem excise duty structure – and tobacco products and alcoholic
beverages. The gradual increase of excise duties on cigarettes is proceeding according to
schedule, and should reach the EU minimum rate level on 31 December 2008, thereby
conforming with the transitional period agreed during negotiations. Slovakia was also
granted a derogation to continue applying its excise duty scheme for small fruit grower's
distillation, provided that the quantity does not exceed 50 litres of fruit spirit per year per
household and that the reduced excise rate is not less than 50% of the standard national
duty rate for alcohol. In this respect, Slovakia needs to align its legislation to the
conditions of the derogation by accession.
Slovakia needs to accelerate the ongoing restructuring of its administrative structures, in
order to be able to apply and effectively implement the
acquis
in the area of excises.
Attention should be focused on the transfer of competencies for tobacco products and
alcoholic beverages from the Tax Directorate to the customs authorities, which will be in
charge of enforcing the
acquis
on excises as from accession. Audit functions should also
be strengthened in the area of excises.
In the area of
direct taxation,
Slovakia remains to complete transposition of the
directives on Mergers and on Indirect Taxes on the Raising of Capital, and to transpose
the directives on the Taxation of Savings Income and on Interest and Royalties. In order
to comply with the principles of the Code of Conduct for Business Taxation, Slovakia
should amend its legislation providing foreign investors with 100% corporate income tax
credits by removing the requirement of foreign participation. The capacity of the tax
administration is sufficient, however efforts should continue to improve tax collection
and audit procedures.
On
administrative co-operation and mutual assistance,
Slovakia is taking the
necessary steps to transpose the
acquis
and implement it by accession, both from the
legislative point of view and as concerns organisational structures including information
technology systems. The central liaison office (CLO) was set up, while the excise liaison
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office (ELO) remains to be established. Preparations for the VAT Information Exchange
System (VIES) and for the System for Exchange of Excise Data (SEED) databases are
ongoing and proceeding according to plan. The setting up of SEED for tobacco products
and alcoholic beverages should be addressed in particular. Furthermore, Slovakia should
take the necessary steps as concerns the establishment of the application for "VAT on e-
services”.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
direct taxation
and
administrative co-operation
and mutual assistance
and is expected to be by accession in a position to implement the
acquis
in these areas. Slovakia needs to adopt legislation to complete alignment,
Slovakia should maintain the current pace of its ongoing efforts to set up the IT systems
allowing for the exchange of computerised data with the Community and its Member
States.
Slovakia is meeting the majority of the requirements for membership in the area of
VAT
and
excise duties,
in which legislative alignment should be accelerated. Slovakia needs
to devote particular attention to strengthening significantly its tax administration in both
areas. As regards VAT, enhanced efforts are required notably as concerns audit
procedures, collection and control. In the area of excises, increased attention must be
given to completing efficiently the transfer of competencies on all the remaining
excisable products to the Custom Administration.
Chapter 11: Economic and monetary union
EC legislation on Economic and Monetary Union (EMU) contains specific rules ensuring
the independence of central banks in Member States, prohibiting indirect financing of the
state by the central bank, and disallowing privileged access of the public sector to
financial institutions. These rules must be transposed into the national legislation, despite
the fact that Slovakia will not yet adopt the euro as a currency from accession. EMU
policy also includes the co-ordination of exchange rate and economic policies, adherence
to the stability and growth pact and the statutes of the European System of Central
Banks.
Slovakia has met the commitments and requirements arising from the accession
negotiations in the area of
economic and monetary union
and is in a position to
implement the
acquis
as from accession.
Chapter 12: Statistics
The
acquis
in the field of statistics requires adoption of basic principles such as
impartiality, reliability, transparency, confidentiality of individual data and dissemination
of official statistics. It also covers methodology, classifications and procedures for data
collection in various areas such as statistical infrastructure, macro-economic and price
statistics, business statistics, transport statistics, external trade statistics, demographic
and social statistics, agricultural statistics and regional statistics. The focal point of the
statistical system of a country is the National Statistical Institute, which acts as the
reference point for the methodology, production and dissemination of statistical
information.
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Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
statistics
and is expected to be in a position to
implement the
acquis
as from accession. Slovakia needs to improve the quality and the
timeliness of data in certain domains such as national accounts, business and agriculture
statistics. Particular efforts should focus on addressing weaknesses concerning the
production of regional statistics.
Chapter 13: Social policy and employment
The
acquis
in the social field includes minimum standards in fields such as labour law,
equal treatment of women and men in employment and social security, and health and
safety at work. Specific binding rules have also been developed in public health (on
tobacco control and surveillance and control of communicable diseases) and recently also
with respect to non-discrimination on grounds of racial or ethnic origin, religion or
belief, disability, age or sexual orientation. The European Social Fund (ESF) is the main
financial tool through which the EU supports the implementation of its Employment
Strategy and contributes to social inclusion efforts (implementation rules are covered
under Chapter 21, which deals with all structural instruments). The acceding countries
are expected to be able to participate in social dialogue at European level, and in the EU
policy processes in the areas of employment, social inclusion and social protection.
As regards
labour law,
most of the EC legislation has been correctly transposed into
Slovak law, especially after the adoption, in May 2003, of new amendments to the
Labour Code. Transposition of legislation is still required in the areas of working time
for seafarers and mobile workers in civil aviation. Transposition of legislation of the new
acquis,
i.e. involvement of workers in the European Company, is foreseen after
accession. The independent guarantee fund for employees is in place and functioning
well.
Slovakia has transposed all the necessary legislation in the field of
equal treatment of
women and men.
However, some legal adjustments are necessary to achieve full
alignment. The pensionable age for male and female civil servants will have to be
equalised upon accession, when the pension scheme constitutes pay within the meaning
of the Treaty and EC case law. Furthermore, some adjustments to the Labour Code will
be necessary as regards access to employment as well as provisions concerning the
protection of women in employment, yet leading to their discrimination. Implementing
structures are in place, but further strengthening is needed in order to ensure enforcement
of the legislation.
In the area of
health and safety at work,
most of the legislation has been adopted and is
expected to be in force as from accession. However, some further adjustments are
necessary in order to achieve correct transposition of the
acquis,
in particular concerning
the Framework Directive on the introduction of measures to encourage improvements in
the safety and health of workers at work (protective and preventive services, information,
training and consultation of workers) as well as concerning the Directive on mobile
and/or temporary construction sites. Transposition of legislation should still be
completed in the area of work at height (new acquis). The use of risk premiums to
compensate for hazardous working conditions should be abolished. The authorities
responsible for the enforcement of health and safety legislation are in place, but further
strengthening, in terms of both staffing and technical facilities, is needed. Close co-
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operation and co-ordination between the different authorities should be systematically
planned and practised in order to ensure integrated labour inspection.
As regards
social dialogue,
the administrative framework is in place. However, the
system needs to be progressively improved. In particular, autonomous bipartite social
dialogue should be promoted in order to increase its coverage in terms of the labour force
and enterprises covered by collective agreements. The social partners’ administrative
capacity, primarily for entering into social dialogue at European level, needs to be
reinforced, too.
In the field of
public health,
the legislative transposition of the tobacco
acquis
remains
to be completed. As regards surveillance and control of communicable diseases, further
measures are necessary in order to reach the necessary capacity to meet the EC
requirements in this field. The Case Definitions Decision needs to be implemented.
Significant efforts need to be made in the area of intervention epidemiology, and
laboratory facilities should be strengthened. Efforts should continue in order to develop a
health monitoring system with a view to obtaining health data and indicators comparable
with the Community health monitoring system. Attention should be paid to the
improvement of the health status of the population and to health expenditure.
Concerning
employment policy,
efforts are still needed to effectively implement the
priorities identified in the Joint Assessment of the Employment Priorities (JAP) in a
much more coherent and effective way. It is important to enhance employment rates, in
particular for women and older workers, and to address regional imbalances. The reform
of the education and training systems, including the lifelong learning system, needs to be
accelerated. There is also a need to promote active and preventive labour market policies
and to increase incentives for people to work. Important efforts are needed to improve
policy co-ordination and ensure appropriate allocation of resources.
As regards the
European Social Fund (ESF),
the development of administrative
structures for management has been delayed and requires continuous attention. Further
efforts are needed to enhance professional capacities of staff in central and regional
bodies. Intermediate bodies should be more involved in the preparation of programming.
Co-operation between the Ministries of Labour and Education should be improved. In
general, there is a concern about the preparedness of mainly the regional administration
to ensure proper implementation of the ESF programmes. Preparations for participation
in the transnational operations of the EQUAL initiative need to be intensified.
The Commission and Slovakia are finalising the Joint Memorandum on Social Inclusion
(JIM), which identifies key challenges and possible policy orientations for promoting
social inclusion.
On this basis, an integrated strategy and a National Action Plan on
social inclusion will have to be developed. Analytical work and social statistics systems
on poverty and social exclusion should continue to be developed in line with the EU
commonly agreed indicators on social inclusion.
In the field of
social protection,
sustained efforts are required to implement the reforms
that have been introduced, including the health care reform and pension reform, which
will help to further improve the level and efficiency of social protection.
Concerning
anti-discrimination,
the EC legislation is only very partially transposed,
especially as regards sexual orientation, disability and race or ethnic origin. Legislation
remains to be fully aligned with the
acquis
and the equality body required by the
acquis
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needs to be established. Despite continuous efforts across all sectors, the situation of the
Roma minority remains very difficult. The majority of the persons belonging to the
Roma community are still exposed to social inequalities, social exclusion and widespread
discrimination in education, employment, the criminal justice system and access to
public services. Living conditions, including housing and infrastructure, as well as health
status, are essentially far below the average. The gap between good policy formulation
and its implementation on the spot has not significantly diminished. Considerable efforts
need to be continued and reinforced to remedy this situation.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
labour law, equal treatment of women and men,
health and safety at work, social dialogue, employment policy, social inclusion
and
social protection,
and is expected to be in a position to implement this
acquis
from
accession. Some legal adjustments are needed in the fields of labour law, equal treatment
of women and men, and health and safety at work. Implementing structures need to be
further strengthened in the areas of equal treatment of women and men as well as health
and safety at work. The system of social dialogue should be progressively improved. As
regards employment policy, the effective implementation of the priorities identified in
the Joint Assessment Paper is necessary to prepare for full participation in the European
Employment Strategy.
Slovakia is partially meeting the requirements for membership in the areas of
public
health, European Social Fund
and
anti-discrimination.
In order to complete
preparations for membership, Slovakia must still complete legislative transposition as
regards tobacco legislation and take further measures in the field of surveillance and
control of communicable diseases. With regard to European Social Fund, including
EQUAL, while progress has been achieved during the last few months, further efforts are
urgently needed in order to strengthen the administrative capacity for management,
implementation, monitoring, audit and control at national and regional level. In addition,
considerable efforts should aim at improving the situation of the Roma minority.
Significant efforts are required in order for Slovakia to be in line with the anti-
discrimination
acquis
by accession.
Chapter 14: Energy
EU energy policy objectives include the improvement of competitiveness, security of
energy supplies and the protection of the environment. The energy
acquis
consists of
rules and policies, notably regarding competition and state aids (including in the coal
sector), the internal energy market (for example, opening up of the electricity and gas
markets, promotion of renewable energy sources, crisis management and oil stock
security obligations), nuclear energy and energy efficiency. This chapter also covers
important aspects of the safety of nuclear installations.
With respect to
security of supply,
and in particular oil stocks, legislation in Slovakia is
in line with the
acquis.
The administrative capacity of the Administration of State
Material Reserves is in place and functions well. Building up of oil stocks is - despite
some delay for certain oil product categories - essentially taking place in accordance with
the transitional arrangement Slovakia has been granted, namely to reach the 90 days of
oil stocks required by the acquis by the end of 2008. Efforts need to be sustained.
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In the field of
competitiveness and the internal energy market
(electricity and gas
sectors), transposition of the acquis is taking place according to schedule. The framework
legislation, the Energy Act and the Network Industry Regulation Act, is largely in line
with the acquis. Slovakia needs to ensure that electricity imports can take place without
restrictions. Implementing legislation is largely in place but needs to be completed.
Market opening in the gas and electricity sectors takes place in line with the
commitments taken. Presently 37% of the electricity market and approximately 35% of
the gas market are open for competition. Electricity and gas price distortions have been
removed in line with the commitments made. The regulatory body, the Network Industry
Regulatory Office, whose task is to oversee the gas and electricity markets, is established
but needs to be further strengthened. Slovakia should transpose the recently adopted
electricity and gas directives in line with the timetable provided for by this acquis.
In the area of
energy efficiency and renewable energy
legislation is in place with the
exception of the newest acquis, which should be transposed according to the timetables
provided for in the directives. Administrative structures in this area, with the Slovak
Energy Inspectorate and the Energy Agency as main institutions, are in place but need to
be strengthened. The Slovak Energy Policy for 2000 supports energy efficiency and
renewable energy sources.
In the field of
nuclear energy and nuclear safety,
Slovakia meets the commitments and
requirements arising from the accession negotiations and is in a position to implement
the Euratom
acquis
as from the date of accession. Slovakia has confirmed its
commitment to closing Unit 1 of the Bohunice V1 nuclear power plant by 2006, and Unit
2 by 2008. The EU provides financial assistance to Slovakia's closure effort. During the
accession negotiations, Slovakia furthermore committed itself to providing further
information on measures taken to implement the recommendations of the June 2001
Council Report on Nuclear Safety in the Context of Enlargement. Slovakia provided such
information in June, July and September 2001, and in March, April and June 2002. In
June and September 2003, Slovakia submitted additional information covering recent
progress made regarding all recommendations concerning nuclear power plants, and also
reporting on developments in the field of radioactive waste. Slovakia should continue to
pay attention to further strengthening the capacity of its currently established radioactive
waste management agency.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations as regards
energy,
and is expected to be in a position to
implement the acquis in this area by accession. Slovakia needs to continue to
progressively build up oil stocks in line with the schedule agreed during the negotiations,
and to continue its efforts to respect the closure commitments for certain units of the
Bohunice NPP; and to open up the electricity and gas markets as planned. In addition,
Slovakia must complete alignment by adopting implementing legislation as regards the
newest
acquis
on energy efficiency. It also needs to continue to further strengthen
administrative capacity in the energy sector.
Chapter 15: Industrial policy
EC industrial policy seeks to enhance industrial competitiveness and rates of
employment, whilst operating in markets open to international competition. Its aim is to
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speed up adjustment to structural change, encouraging an environment favourable to
initiative and to the development of undertakings throughout the Community. EC
industrial policy mainly consists of policy principles and horizontal and sectoral
industrial policy communications.
Slovakia’s
industrial strategy
essentially complies with the concepts and principles of
EC industrial policy, i.e. it is market-based, stable and predictable. The basic legal
framework for business activity is in place, although enforcement of relevant legislation
still poses problems, in particular as regards bankruptcy and insolvency procedures. The
necessary administrative structures are in place.
In the area of
privatisation and restructuring,
the implementation of the restructuring
policy in a manner that conforms to the competition and state aid
acquis
remains an area
for special attention so as to create efficient and competitive firms. The necessary
administrative structures in this area are in place.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the
industrial policy
area and is expected to be in a position to
be able to implement the
acquis
as from the date of accession. The effective
implementation of the legal framework for business activity should be enhanced.
Chapter 16: Small and Medium-sized Enterprises
SME policy aims to improve the formulation and co-ordination of enterprise policy
across the internal market with a view to supporting the development of SMEs. In doing
so, it seeks to improve the overall business environment in which SMEs operate. SME
policy consists largely of consultation fora and Community programmes, as well as of
communications, recommendations and exchanges of best practices.
Slovakia is generally meeting the commitments and requirements arising from the
accession negotiations in the chapter
small and medium-sized enterprises.
Alignment
with the new Commission recommendation on the SME definition should be carried out.
Slovakia should adopt its draft mid-term SME strategy and enhance the co-ordination of
its SME support schemes. The implementation of the European Charter for Small
Enterprises should be maintained.
Chapter 17: Science and research
Due to its specificity, the
acquis
in the field of science and research does not require any
transposition in the national legal order. However, the necessary implementing capacity
needs to be created to allow for effective participation in activities under the Framework
Programmes in the field of research.
Slovakia has met the commitments and requirements arising from the accession
negotiations in the area of
science and research
and will be in a position to implement
the
acquis
as from accession.
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Chapter 18: Education and training
Education, training and youth is primarily the competence of the Member States. The
Community’s acquis consists of a directive on education of the children of migrant
workers, and of action programmes and recommendations. The necessary implementing
capacity needs to be in place to allow for effective participation in the Community
programmes related to this chapter (Leonardo da Vinci, Socrates and Youth).
Slovakia has met the commitments and requirements for membership in the area of
Community programmes,
and will be in a position to implement this
acquis
from
accession. The implementing capacity for Community programmes will need to be
enhanced to benefit from additional allocations for decentralised actions following
accession.
In the area of
education of children of migrant workers,
due implementation of the
acquis
needs to be ensured.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
education and training
and is expected to be in a
position to implement this
acquis
from accession. Efforts to implement the
acquis
on
education of children of migrant workers should be ensured.
Chapter 19: Telecommunications and information technologies
The
acquis
in the field of telecommunications consists mainly of the 1998 regulatory
framework and a 2000 regulation, and is aimed at the elimination of obstacles to the
effective operation of the single market in telecommunications services and networks,
and the achievement of universally available modern services. A new regulatory
framework on electronic communications was adopted in 2002 and must be
implemented. As regards postal services, the objective is to implement the single market
by opening up the sector to competition in a gradual and controlled way, within a
regulatory framework, which assures a universal service (1997 and 2002 acquis).
In the field of
telecommunications,
Slovakia’s framework legislation is partially in line
with the 1998-2000
acquis.
While the need to align the legislation more closely with the
acquis,
especially with regard to interconnection, has been recognised by the
government, attempts to transpose the
acquis
in particular on local loop unbundling have
failed so far. As a result, the introduction of the market opening, which was scheduled
for the beginning of 2003, has been seriously obstructed. Interconnection tariffs, which
should be published in order to conform with the
acquis,
are still confidential and new
operators are unable to enter the market on an equitable commercial basis. The re-
balancing of tariffs and the achievement of affordable universal service needs also to be
ensured. Neither carrier selection nor preselection have been implemented so far, even
though the law obliges operators to provide users with at least one of these facilities, and
plans for the implementation of number portability need to be brought in line with the
acquis.
The 2002
acquis
remains to be adopted. While the necessary administrative
structures are in place, resources are too limited. Full separation of regulatory and
operational functions has not yet been fully achieved, as the national regulatory authority
does not yet have its own separate budget chapter.
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In the area of
postal services,
legislative alignment remains to be completed, particularly
as regards the second postal directive. Implementation has only partly begun. The
administrative structures are in place.
Conclusion
Slovakia is partially meeting the commitments and requirements arising from the
accession negotiations in the
telecommunications
and
postal services
area. In order to
complete preparations for accession, the telecommunications market must be opened
effectively and legislation has to be aligned (including for interconnection and local loop
unbundling) and the 2002
acquis
must be transposed. Enhanced efforts are necessary to
setting reasonable terms for interconnection tariffs and to ensuring the re-balancing of
tariffs and an affordable universal service. Attention must be also given to the
effectiveness and independence of the national regulatory authority. In order to complete
preparation for membership in the field of postal services, Slovakia should accelerate the
transposition and implementation of the
acquis
in this field. Substantially enhanced
efforts are required in the fields of telecommunications and postal services.
Chapter 20: Culture and audio-visual policy
The culture and audio-visual policy chapter requires legislative alignment with the
Television without Frontiers directive and contains the community programmes Culture
2000, Media Plus and Media Training. Alignment with the Television without Frontiers
directive creates the conditions for the free movement of television broadcasts within the
Community. It implies basic common requirements concerning advertising; the
protection of minors and public order; and the promotion of European works.
Slovakia has met the commitments and requirements arising from the accession
negotiations on
culture and audio-visual policy
and will be in a position to implement
the
acquis
by accession.
Chapter 21: Regional policy and co-ordination of structural
instruments
The
acquis
under this chapter consists mostly of regulations, which do not require
transposition into national legislation. They define the rules for drawing up, approving
and implementing Structural Funds programmes and Cohesion Fund actions. These
programmes are negotiated and agreed with the Commission, but implementation is the
responsibility of the Member States. It is essential that Member States respect
Community legislation in general, for example in the areas of public procurement,
competition and environment, when selecting and implementing projects, and have the
necessary institutional structures in place to ensure implementation in a sound and cost-
effective manner from the point of view of both management and financial control.
Slovakia has agreed with the Commission on a NUTS classification of its
territorial
organisation.
The essential features of the
legislative framework
are in place, such as the ability to
ensure multi-annual budget programming and provisions ensuring budgetary flexibility.
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The legislative framework for financial control and compliance with other Community
policies is monitored in other chapters. However, in order to make effective use of
eligibility for structural funds from 1 January 2004, the relevant
acquis
in areas such as
public procurement, state aid and environmental protection will need to be fully
respected from that date. The timely alignment and implementation of the public
procurement legislation needs to be ensured, and the notification of state aid schemes
must be accelerated.
The necessary
institutional structures
for the preparation and implementation of the
Structural and Cohesion Funds have all been put in place. However, the design of the
delivery structure placed under the responsibility of the Managing Authorities needs to
be completed and the division of tasks between the Managing Authorities and the
intermediate bodies needs to be clearly defined. Staffing levels in the Managing
Authorities and the intermediate bodies have been addressed and need now to be
consolidated; adequate training needs to be provided. The Ministry of Finance has been
designated as single Paying Authority. However, the possibility that the Paying
Authority may delegate essential responsibilities related to the certification function to
the seven intermediate bodies in the line ministries in charge of implementation is not
acceptable under Community rules.
The bodies responsible for implementation of the specific financial control provisions,
including the 5% and 15% on-the-spot checks, have been designated. Training of
auditors needs to be a priority. Inter-ministerial co-ordination has improved.
The
programming
documents and specifically the Development Plan (DP), Operational
Programmes and the two Single Programming Documents, including the programme
complements, have been submitted. The ex ante evaluation was submitted with the DP.
It is expected that a system will be set up in order to establish a minimum level of
monitoring by January 2004. The key indicators to allow monitoring need to be defined
and a full monitoring system needs to be established.
Considerable and sustained efforts are needed to establish an pipeline of projects that are
ready to be implemented in technical and financial terms to enable Slovakia to benefit
fully from Community funds as soon as the programme starts.
The
financial management and control
system is in the process of being established.
Slovakia has still to complete the drafting of procedure manuals in relation to financial
control, auditing, certification of expenditure, and correction of irregularities of future
Structural and Cohesion Funds expenditure, including the detailed responsibilities of the
Paying Authority, the Managing Authorities and the Intermediate Bodies in the field of
financial management and control.
Additionality will be verified before approval of the Community Support Framework.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
negotiations on this chapter as regards
territorial organisationand programming.
Provided the further work programme is carried out as envisaged, Slovakia should be in a
position to meet requirements in these areas by the start of the programme. Concerning
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legislative framework Slovakia needs to make sure that final beneficiaries will be in a
position to effectively apply the rules and procedures resulting from the new public
procurement law. As regards programming it needs to focus on setting up a functioning
monitoring system and on establishing an adequate pipeline of well-prepared projects.
Slovakia is only partially meeting the requirements for membership in relation to the
legislative framework, institutional structures
and
financial management and
control
for the implementation of actions under the Structural and Cohesion Funds.
Significant additional attention must be paid to the definition of the institutional
structures and in particular of the tasks of the various authorities concerned, their co-
ordination both at central level and between the central level and the regions, and to
efforts to boost the recruitment of the qualified staff needed. They must be prepared to
apply effectively the new rules on public procurement in line with EU requirements, in
order to benefit from Community funding from 1 January 2004.Finally, in the area of
financial management and control, the responsibilities of the various bodies need to be
clarified (ensuring compliance with the principle of functional independence) and
procedures must be elaborated.
Chapter 22: Environment
Community environment policy aims to promote sustainable development and protect the
environment for present and future generations, and is based on the integration of
environmental protection into other Community policies, preventive action, the polluter
pays principle, fighting environmental damage at source, and shared responsibility. The
acquis
comprises over 200 legal acts covering horizontal legislation, water and air
pollution, management of waste and chemicals, biotechnology, nature protection,
industrial pollution and risk management, noise, and radiation protection. Ensuring
compliance with the
acquis
requires significant investments, but also brings significant
benefits for public health and reduces costly damage to forests, buildings, landscapes and
fisheries. A strong and well-equipped administration at national, regional and local level
is imperative for the application and enforcement of the environment
acquis.
Horizontal legislation
is in place and is in line with the
acquis,
except for the recent
acquis
on strategic environmental impact assessment, which needs to be transposed and
implemented by July 2004 in line with the Directive. Administrative capacities are in
place and function adequately.
In the
air quality
sector, legislation is in place and is in line with the
acquis.
Administrative capacities are in place and function adequately. Air quality plans and
programmes need to be completed. However, the capacity to establish and implement
plans and programmes needs to be enhanced. As regards volatile organic compound
emissions from the storage and distribution of petrol, a transitional arrangement until 31
December 2007, with intermediate targets, has been agreed for certain installations in
Slovakia.
In the field of
waste management,
legislation is in place and is in line with the
acquis,
except for an amendment to the Waste Act on PCB/PCT and the recent
acquis
on end-of-
life vehicles, which need to be transposed by accession. Administrative capacities are in
place and function, but more staff is needed at ministerial and regional levels. A
deregistration system for end-of-life vehicles and inventories of PCB/PCT need to be
established by accession. The establishment of waste collection systems and recovery
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and disposal facilities needs to continue. Compliance with the
acquis
requirements needs
to be ensured in this respect. As regards packaging waste, a transitional arrangement
until 31 December 2007, with intermediate targets, has been agreed.
In the area of
water quality,
legislation is in place and is in line with the
acquis,
except
for the recent framework
acquis
on water, which needs to be completed by accession.
Administrative capacities are largely in place and function, but nevertheless require
strengthening. The monitoring of drinking water needs to be further enhanced, and
programmes for nitrates and dangerous substances need to be adopted by accession.
Transitional arrangements until 31 December 2015 for urban waste water and until 31
December 2006 for discharges of certain dangerous substances, with intermediate
targets, have been agreed.
In the field of
nature protection,
legislation is in place and is in line with the
acquis.
Further efforts are needed to finalise the preparation of a list of proposed sites of
Community interest and to designate special protection areas by accession, and to apply
the relevant protection measures. Close attention needs to be paid to ensuring proper
consultation while avoiding delays. Even if technical and institutional capacities,
including administrative capacities, have been improved, further strengthening is still
required, including in terms of enforcement needs.
The legislation on
industrial pollution and risk management
is in place and is in line
with the
acquis,
except for the recent
acquis
on national emission ceilings, which needs
to be completed by accession. While administrative capacities are largely in place and
function, enhanced efforts are required to further strengthen the administrative capacity
and to ensure that permits are issued and complied with as regards all new installations
subject to the rules on integrated pollution and prevention control (IPPC) by accession
and that, regarding existing installations, they continue to be issued and complied with
until October 2007. Transitional arrangements until 31 December 2011 for IPPC, until 31
December 2007 for certain large combustion plants, and until 31 December 2006 for
incineration of waste have been agreed for certain categories of activities and operations
at certain installations in Slovakia.
The legislation concerning
chemicals and genetically modified organisms
(GMOs) is
in place and is in line with the
acquis.
Attention must be paid to its implementation.
Administrative capacities are in place and function. Co-ordination between the
organisations involved needs to continue to be enhanced.
Transposition of the
acquis
on
noise
is proceeding according to schedule and the
legislation is in line with the
acquis,
except for the recent
acquis
on ambient noise, which
needs to be transposed by July 2004 in line with the Directive. Administrative capacities
are in place and function adequately.
As regards
nuclear safety and radiation protection,
legislative alignment has been
largely completed and the legislation is in line with the
acquis,
except for shipments of
radioactive waste, which needs to be transposed by accession. Administrative capacities
in this area are largely in place and function adequately.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be in a position to implement the
acquis
in the
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areas of
horizontal legislation, air quality, waste management, water quality, nature
protection, industrial risk management, chemicals and genetically modified
organisms, noise
and
nuclear safety and radiation protection
by accession. Slovakia
needs to finalise legal alignment as regards the following areas: horizontal legislation,
waste management, water quality, industrial pollution, noise, and nuclear safety and
radiation protection. It needs to complete air quality plans and programmes and continue
to enhance water quality monitoring. Establishment of waste collection systems and
recovery and disposal facilities needs to continue. Moreover, Slovakia must pay
particular attention to implementation in the water sector, especially as regards drinking
water quality, and must finalise the necessary programmes. In addition, Slovakia must
make further efforts to finalise its lists of proposed nature protection sites and special
bird protection areas by accession. Close attention needs to be paid to ensuring proper
consultation while avoiding delays. Administrative capacity for nature protection,
including enforcement, requires further strengthening.
Slovakia is partially meeting the commitments and requirements for membership in the
area of
industrial pollution.
In order to complete preparations for membership,
enhanced efforts are required to further strengthen the administrative capacity and to
ensure that permits are issued and complied with as regards all new IPPC installations by
accession and that, regarding existing installations, they continue to be issued and
complied with until October 2007.
Chapter 23: Consumer and health protection
The
acquis
covers protection of the economic interests of consumers (concerning
misleading and comparative advertisement, price indication, consumer credit, unfair
contract terms, distance and doorstep selling, package travel, timeshare, injunctions for
the protection of consumers’ interests, and certain aspects of the sale of consumer goods
and associated guarantees) as well as the general safety of goods (liability for defective
products, dangerous imitations and general product safety). Recently adopted legislation
includes rules on general product safety and distance marketing of consumer financial
services. The acceding countries need to effectively enforce the
acquis
through
appropriate judicial and administrative systems, including market surveillance and a role
for consumer organisations.
Slovakia has achieved a high level of alignment as regards
safety-related measures.
As
regards the directive on product liability, some minor adjustments are still required.
However, alignment with the revised directive on general product safety still needs to be
completed. The institutional and administrative framework for
market surveillance
relating to general product safety is in place. However, the capacity of the main bodies in
charge of market surveillance activities should be further developed. Stronger
involvement of other bodies such as trade federations and consumer NGOs in market
surveillance activities is needed. While customs seems well integrated into the market
surveillance system, training of customs officers with regard to new legislation on
general product safety is a priority.
As regards
non-safety related measures,
Slovakia has aligned its legislation with most
aspects of the
acquis,
though some minor modifications are required to existing
measures. Also, measures to transpose the acquis in the areas of timeshare property,
injunctions for the protection of consumer interests, unfair terms in consumer contracts,
certain aspects of the sale of consumer goods and associated guarantees remain to be
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adopted. The relevant institutional and administrative framework is in place but a
strengthening of overall administrative capacity, both in terms of human and financial
resources, is still needed. Furthermore, a system of out of court settlement of consumer
disputes should be developed.
With regard to
consumer organisations,
there is a high level of co-operation between
the non-governmental consumer organisations and the Slovak authorities. However, the
role of these NGOs in implementing consumer policy and their financial and human
resources should be strengthened. Improvements are necessary also to increase the level
of consumers’ and businesses’ awareness of their rights and responsibilities.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
safety-related measures
and
consumer
organisations
and is expected to be in a position to implement this
acquis
as from
accession. Slovakia needs to complete alignment of the
acquis
on the revised general
product safety directive.
Slovakia is meeting the majority of the requirements for membership in the area of
market surveillance
and
non-safety related measures.
In order to complete
preparations for membership, Slovakia needs to complete alignment in the non-safety
related area and also to improve market surveillance to ensure the proper enforcement of
legislation on safety and non-safety related measures including by strengthening the
administrative capacity and structures.
Chapter 24: Justice and home affairs
The most developed part of this chapter is the Schengen
acquis,
which entails the lifting
of internal border controls. However, much of this
acquis
will not apply to the acceding
countries upon accession, but only after a later separate Council Decision. The Schengen
Implementation Action Plan aims at preparing this on the basis of a credible schedule for
the introduction of the Schengen provisions. Binding rules which must be put in place as
from accession include part of the rules on visas, rules on external borders and the acquis
on migration, asylum, police co-operation, combating organised crime, fight against
terrorism, fraud and corruption and drugs, customs co-operation as well as human rights
legal instruments. On issues such as border control, illegal migration, drugs trafficking
and money laundering, organised crime, police and judicial co-operation, data protection
and the mutual recognition of court judgements, acceding countries need to be equipped
to meet adequate standards of administrative capacity. The establishment of an
independent, reliable and efficient judiciary and police organisation are also of
paramount importance.
Preparation with regard to the Schengen provisions (Schengen
Action Plan)
relevant for
accession is still broadly satisfactory, but significant efforts will be needed after
accession to prepare for the lifting of internal borders and full implementation of the
Schengen
acquis
on the basis of a further decision to be taken by the Council. The
preparation for the integration into the Schengen Information System (SIS) II is still at a
preliminary stage, in terms of development of national applications, and should be
accelerated.
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Slovakia has completed its legislative alignment in the field of
data protection,
including the use of personal data by the police. The supervisory authority, the Office for
Personal Data Protection, is operational and its financial and institutional independence
has been guaranteed, however its staffing still needs to be further strengthened.
On
visa policy,
Slovakia has not yet achieved full alignment with the EU visa
acquis.
Slovakia still has to terminate the visa-free agreements with Cuba, South Africa and
Seychelles. Slovakia is not yet fully aligned with the “positive” visa list and should
accelerate this process as regards the remaining countries. In addition, the law on
expatriate Slovaks needs to be amended, so as to achieve full alignment with the
acquis
on the necessary requirements. As regards implementation and administrative capacity,
Slovakia is in the process of extending to all embassies and consulates the on-line system
capable of securing direct contact between visa-issuing authorities and the central
authorities. The full range of equipment necessary to detect forged and falsified
documents has not yet been completely provided to all diplomatic and consular missions.
As regards the management of the future
external borders,
Slovakia has not yet
achieved full alignment with the EU
acquis.
Particular attention should be given to
completing alignment of the border regime in respect of the border with the Czech
Republic and to finalising co-operation agreements on border control and crime
prevention with Poland, Hungary and Ukraine. Implementation of the relevant parts of
the Schengen Action Plan is ongoing. Slovakia is continuing its efforts to upgrade its
equipment for border control and border surveillance, in particular at the border with
Ukraine. However, attention is still needed as regards the recruitment and training of
staff, reinforcing and upgrading the technical equipment and the allocation of sufficient
financial means at all borders to fully implement the Schengen Action Plan. Inter-agency
co-operation needs also to be further improved.
In the area of
migration,
Slovakia’s legislation is largely in line with the EU
acquis.
However, the new Act on the Residence of Aliens still needs to be amended as regards
the level of protection in the event of expulsion and the resources necessary to be granted
the status of long-term resident. Slovakia has concluded readmission agreements with
current and future Member States, in particular countries of origin of illegal immigration.
However, efforts to negotiate further readmission agreements with third countries should
continue. Administrative structures are in place. To improve the fight against illegal
immigration a central service with analytical and operational tasks, the National Unit to
combat illegal immigration within the Border and Aliens Police, has been established.
Nevertheless, illegal immigration continues to pose serious problems in Slovakia and still
requires special attention.
In the field of
asylum,
Slovakia has largely aligned its legislation with the
acquis,
with
the adoption of the new Asylum Act, in June 2002. However, the Act ensures only
partial alignment with the Dublin and the EURODAC Regulations and the necessary
alignment should be completed. The administrative capacity of the Migration Office, in
particular the staff in charge of processing the asylum claims, should be substantially
strengthened. Professional training provided to staff both in the Migration Office and in
the Border and Aliens Police should also be reinforced. Moreover, co-operation between
the Migration Office and the Border, Aliens Police and the Police should continue to be
improved at both local and central level. The completion of a comprehensive Migration
Strategy should be ensured. Reception camps still need to be expanded and improved.
Slovakia should also accelerate its preparation for active participation in EURODAC and
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Dublinet and still needs to take the necessary measures to ensure the establishment of its
National Access Points.
In the area of
police co-operation and combating organised crime,
Slovakia has
largely aligned its legislation, in particular through the latest amendments to the Code of
Criminal Procedure, reforming the pre-trial procedure, adopted in June 2002.
Administrative structures are in place but need to be further strengthened. Efforts are still
required to ensure that Slovakia has an accountable, reliable and fully co-ordinated
police organisation by accession. Continuous attention is needed concerning co-operation
and co-ordination between the police and the prosecuting and judicial bodies as well as
rationalisation of tasks and competencies between the Police and the Judicial Police.
International co-operation is supported by sufficient co-operation agreements, in
particular by the conclusion of an agreement with Europol. Attention should be paid to
the timely preparation of national procedures in order to ensure the swift ratification of
the Europol Convention upon accession to the EU. The UN Convention against
Transnational Organised Crime and its three Protocols still need to be ratified.
In the
fight against terrorism,
Slovakia has ratified the most important Conventions in
this area, in particular the 1999 UN Convention for the Suppression of the Financing of
Terrorism. Furthermore the amendment to the Criminal Code which entered into force in
September 2002 introduced terrorism as a new criminal offence. Slovakia should prepare
for accession to the Convention on Mutual Assistance in Criminal Matters between
Member States of the EU.
As regards the
fight against fraud and corruption,
Slovakia has partly aligned its
legislation with the
acquis.
However, Slovakia has still to complete alignment with the
provisions of the Convention on the Protection of the European Communities’ Financial
Interests and its Protocols, especially as regards the liability of legal persons, so that
ratification can be accomplished. Furthermore, the Council of Europe Civil Law
Convention on Corruption needs to be ratified. Slovakia should also ensure alignment of
its legislation with the Council Framework Decisions on the protection of the euro
against counterfeiting and full implementation of this
acquis.
Slovakia has yet to
designate a National Central Office dealing with banknote and coin analysis. As regards
implementation capacity, further progress has been made in the establishment of a
Special Prosecutor for combating corruption and organised crime and specialised courts
for the fight against corruption. However, corruption remains a cause for concern and
Slovakia should continue its efforts to implement the National Programme for the fight
against corruption. The capacity of the relevant structures of the General Prosecutor’s
office needs to be reinforced, as does the staff of the newly established Department for
the Fight against Corruption, under the supervision of the Minister of Justice. As regards
corruption, see also
Section C.1. – Administrative and judicial capacity.
On the
fight against drugs,
Slovakia has largely completed its legislative measures. The
Government has continued to implement the National Programme for the Fight against
Drugs, which covers the period 1999-2003 and encompasses a wide range of issues
including prevention, drug supply reduction, treatment and re-socialisation. In addition, a
Special Unit for the fight against drugs has been established in the Customs Department.
As regards preparation for co-operation with the European Monitoring Centre for Drugs
and Drugs Addiction, a National Focal Point has been established.
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Slovakia has completed its legislative alignment with the
acquis
on
money laundering.
A Financial Intelligence Unit is in place and its staff has been increased; however, its
equipment and training should be further reinforced. Inter-agency co-operation should be
improved. Slovakia also needs to withdraw the reservation it lodged in respect of Article
6 of the 1990 Council of Europe Convention on Money Laundering (see
also Chapter 4 –
Free movement of capital).
In the area of
customs co-operation,
Slovakia is in the process of aligning its legislation.
Inter-agency co-operation is provided for, as well as co-operation with business
organisations on the basis of memoranda of understanding. Slovakia should continue
preparations for accession to the 1995 Convention on the use of IT for Customs Purposes
by establishing an appropriate IT system, which will allow for the development of risk
assessment. Slovakia should also continue to implement the Action Plan on the fight
against corruption in the customs administration.
In the area of
judicial co-operation in civil and criminal matters,
legislative
alignment, where still necessary, is ongoing. Slovakia should be ready upon accession to
apply the relevant conventions. Particular attention is needed for alignment with the
Council Framework Decision of 13 June 2002 on the European arrest warrant and the
surrender procedure between Member States.
As regards the
reform of the judiciary
in general, a detailed analysis is provided in
Section C.1. – Administrative and judicial capacity.
All the
human rights legal instruments,
under the justice and home affairs
acquis,
have
been ratified by Slovakia.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be able to implement by accession the
acquis
in
the areas of
migration, police co-operation and combating organised crime,
the
fight
against terrorism, drugs
and
money laundering, customs co-operation, judicial co-
operation in civil and criminal matters and human rights legal instruments.
Slovakia is partially meeting the commitments and requirements for membership in
relation to the
Schengen Action Plan, data protection, visa policy, external borders,
asylum
and the
fight against fraud and corruption.
In order to complete preparations
for membership in this area, Slovakia needs to adopt and implement the relevant
legislation. Particular attention must be given in the field of asylum to the technical and
organisational preparations necessary to fully implement EURODAC and Dublin II by
accession, as well as to the implementation of the National Programme for the fight
against corruption. Furthermore, overall inter-agency co-operation needs to be further
improved and co-ordination structures strengthened.
Chapter 25: Customs union
The Customs Union acquis consists almost exclusively of legislation which is directly
binding on the Member States and does not require transposition into national law. It
includes the Community’s Customs Code and its implementing provisions; the
Combined Nomenclature, Common Customs Tariff and provisions on tariff
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classification, customs duty reliefs, duty suspensions and certain tariff quotas; and other
provisions such as those on customs control of counterfeit and pirated goods, drugs
precursors and cultural goods and on mutual administrative assistance in customs matters
as well as Community agreements in the areas concerned, including transit. Member
States must ensure that the necessary enforcement capacities, including links to the
relevant EC computerised customs systems, are in place.
Slovakia’s
customs legislation
is in line with the
acquis
as it stood in 2001 except for
some provisions on drugs precursors. Implementation of the non-aligned provisions and
in particular the 2002 and 2003
acquis
will take place upon accession, when the EC
customs legislation becomes directly applicable. National provisions superseded by the
acquis are to be repealed at the time of accession and agreements on mutual
administrative assistance in customs matters are to be amended as necessary.
As regards the development of
administrative and operational capacity
Slovakia
should continue to carry out its plans for reorganisation in terms of closure of customs
offices and redeployment of staff as a result of accession, when the volume of customs
work decreases owing to the conversion of external to internal trade. Preparations for the
application of measures and provisions that will be introduced only at the time of
accession should also be continued, in particular in terms of staff training. Customs
offices’ capacity to combat fraud and economic crime, in close co-operation with other
enforcement bodies, should continue to be strengthened, in particular in the area of
intellectual property.
Measures will have to be taken to complete the development and implementation of the
computerised customs system and solve all the other interconnectivity-related issues, in
particular for the computerised entry-processing system and the link to the integrated
tariff system.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be in a position by accession to implement the
customs union
acquis
with the necessary administrative and operational capacity. In
completing preparations for accession, the Slovak authorities must ensure that the
computerisation projects are completed according to schedule.
Chapter 26: External relations
The main element in this chapter, the common commercial policy, is made up of directly
binding EU legislation which does not require transposition into national law. Acceding
countries were requested to align before accession with the acquis on dual-use goods
and, where applicable, with export credits. Acceding countries committed themselves to
ensure compatibility with the acquis of their bilateral agreements with third countries. In
the area of humanitarian aid and development policy, countries need to ensure the
capacity to participate in the EU development and humanitarian policies.
Administrative structures for dealing with the issues related to the
common commercial
policy
are essentially in place and sufficient.
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Slovakia has co-ordinated its positions and policies with the Commission with regard to
the Doha Development Agenda. Slovakia should continue close co-operation and co-
ordination with the Commission, mainly in order to carry on preparing the convergence
of its GATS commitments and MFN exemptions into the EU ones (consolidation EU 25),
to be finalised upon accession. Slovakia has co-operated with the EU in the process of
third stage notification as concerns integration under the Agreement on Textiles and
Clothing.
On trade in dual-use goods, Slovakia’s legislation is largely aligned with the
acquis.
However, further alignment, in particular regarding the list of dual-use items, needs to be
achieved, as export control regimes continue to adopt decisions, which the EU integrates
into its legislation. Membership in all export control regimes is a crucial factor enabling
implementation of control export by Slovakia. Based on the Thessaloniki Action Plan to
support the acceding countries’ membership in export control regimes, the EU supports
Slovakia’s accession to the regimes to which it has already applied but is not yet a
member (Missile Technology Control Regime). Full alignment as regards the
Community general export authorisation can only take place upon accession.
Legislative alignment in the area of export credits has been broadly completed.
Slovakia has assessed the compliance of its
bilateral agreements with third countries
with its EU obligations. The treaties to be terminated or modified have been identified
and negotiations with third countries are ongoing to ensure the necessary modifications
by accession. Following the signature of the Memorandum of Understanding regarding
its bilateral investment treaty with the USA, Slovakia must ensure swift ratification of
the additional protocols to the BIT, which were also signed with the US, in order for the
adaptations to enter into force by the date of its accession to the EU. Among other
agreements, the Foreign Investment Protection Agreement with Canada and the trade
agreement with Japan need to be brought into conformity with the
acquis.
In the area of
humanitarian aid and development policy,
the Slovak government has
taken the necessary measures to ensure that the country’s policy in these areas is in line
with EU principles, in particular with the guidelines laid down by the OECD
Development Assistance Committee as well as with the commitments and objectives that
Slovakia has approved in the context of the UN and other international organisations.
Slovak administrative capacity in this area requires some strengthening.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be able to implement the
acquis
on the
common commercial policy
and
humanitarian aid and development policy.
Slovakia is meeting the majority of the commitments and requirements for membership
in relation to
bilateral agreements with third countries.
In order to complete
preparations in this area, Slovakia has to finalise the steps it has taken towards
renegotiating or terminating its bilateral agreements to make sure that they are
compatible with the
acquis
upon accession.
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Chapter 27: Common foreign and security policy
The acquis related to the common foreign and security policy (CFSP) is essentially based
either on legally binding international agreements or on political agreements to conduct
political dialogue in the framework of CFSP, to align with EU statements, and to apply
sanctions and restrictive measures where required.
Slovakia has the required administrative capacity to participate in the
political dialogue.
With regard to alignment with
EU sanctions and restrictive measures, statements,
declarations and démarches,
Slovakia has the necessary legislation in place and fulfils
its obligations in a satisfactory way. The implementation of the EU Code of Conduct for
Arms Exports and the fight against unauthorised weapon transfers deserve continuing
attention. The administrative structures in this area are in place and satisfactory.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the chapter on the
common foreign and security policy,
and is
expected to be able to participate in the political dialogue and to align with EU
statements, sanctions and restrictive measures by accession.
Chapter 28: Financial control
The acquis under this chapter consists mostly of general, internationally agreed and EU-
compliant principles of public internal financial control that need to be transposed into
the control and audit systems of the entire public sector. In particular, the acquis requires
the existence of adequate ex ante financial control and functionally independent internal
audit systems; an independent external audit of the public internal financial control
systems in the public sector; an appropriate financial control mechanism for EU pre-
accession funding and future structural action expenditure; and arrangements on the
protection of EC financial interests. In addition, an anti-fraud co-ordination service,
capable of co-operating with the Commission’s Anti-fraud Office OLAF at an
operational level, is to be designated.
In the area of
public internal financial control,
Slovakia has put framework and
implementing legislation in place, which is in line with the
acquis.
The process of
institution building is advanced, but the establishment of internal audit units in all
budget-spending centres with internal audit focusing on system-based and performance-
audit functions remains to be completed. The newly set-up internal audit units need to be
adequately staffed with well-trained and experienced personnel. The necessary
recruitment procedures have been launched.
In the field of
external audit,
legislative alignment has been largely completed. The
Supreme Audit Office (SAO), however, needs to continue to incorporate international
audit standards into its current work. The necessary administrative structures are in place.
The SAO is functionally and operationally independent and its audit services
satisfactorily cover all public and EU funds.
As regards
control over structural action expenditure,
framework and implementing
legislation in Slovakia is in place and in line with the acquis. Appropriate administrative
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structures are being set up but Slovakia should continue to enhance its administrative
capacity to manage the pre-accession funds and future structural funds in order to fully
meet the requirements for financial control and internal audit. Recruitment of additional
staff for the pre-accession funds, as well as the Structural and Cohesion Funds, has
started, accompanied by training measures. Slovakia needs to reinforce and accelerate
efforts leading to the extended decentralised implementation system (EDIS) for ISPA
and Phare, including allocation of further human resources.
In the area of the
protection of EC financial interests,
Slovakia should refine the
framework and implementing legislation, in particular with a view to further defining the
powers of the anti-fraud co-ordination service (AFCOS). The basic administrative
structure has been set up, following the establishment of the AFCOS, located in the
Control Section of the Government Office. An administrative co-operation arrangement
was agreed with OLAF, and AFCOS has taken initial steps to define co-operation with
other relevant Slovak institutions and bodies by means of co-operation agreements. Its
administrative capacity should now be substantially reinforced, with a view to
implementing effective operational co-operation with other relevant Slovak institutions
and bodies as well as with OLAF.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations as regards
public internal financial control
and
external audit,
and is expected to be in a position to implement this
acquis
from accession. Attention
must be paid to strengthening the operational and administrative structures in the area of
public internal financial control.
Slovakia is meeting the majority of the commitments and requirements in the areas of
control over structural action expenditure
and the
protection of the EC financial
interests.
As regards structural action expenditures, Slovakia must accelerate efforts to
complete preparations for the extended decentralised implementation system. On the
issue of protection of the EC financial interests, the legal framework must be further
refined and administrative capacities must be substantially strengthened.
Chapter 29: Financial and budgetary provisions
Chapter 29 covers the rules concerning the financial resources necessary for the funding
of the EC budget (‘own resources’). These own resources are made up mainly from
contributions from Member States based on 1) traditional own resources from customs
and agricultural duties and sugar levies, 2) a resource based on VAT and 3) a resource
based on the level of gross national income (GNI). Member States must ensure the
creation of appropriate administrative capacity to adequately co-ordinate and ensure the
correct calculation, collection, payment and control of own resources and reporting to the
EU for implementation of the own resources rules.
As regards the
traditional own resources (TOR),
a national reporting system on cases
of fraud and irregularity has been established in Slovakia but the procedures for reporting
to the Commission in line with the OWNRES system still need to be introduced. The
systems and procedures for collecting and accounting sugar levies still need to be set up.
Adequate administrative arrangements for managing the A and B accounts and
generating the related statements need to be established.
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Continued efforts are required for the correct calculation of the
VAT-based resource,
in
particular as regards the calculation of the weighted average rate in accordance with
ESA95.
For calculation of the
GNI-based resource,
further fine-tuning is needed by Slovakia to
improve the quality and reliability of the national accounts and GNI calculations in line
with ESA95, including their exhaustiveness.
All institutions necessary for application of the own resources system in Slovakia exist,
except as concerns the sugar levies. A unit within the Ministry of Finance co-ordinates
own resources issues and is operating effectively.
Conclusion
Slovakia is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
financial and budgetary provisions
and is
expected to be in a position to implement the relevant
acquis
by accession. Slovakia
should now focus attention on completing preparations under this chapter by further
improving the calculation of the VAT-based resource, establishing the procedures for the
A and B accounts and sugar levies, and finalising procedures for sending reports on cases
of fraud and irregularity to the Commission (OWNRES).
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D.
C
ONCLUSION
Slovakia’s macroeconomic performance has been improving considerably, although
some imbalances remain significant. Slovakia's progress on the reform path, also in the
public finance area, has received strong new impetus. Various measures have been
decided on and some have already become effective.
As regards the areas, where last year’s report suggested improvements, some progress
has been made, but challenges remain. The government has been reversing the
expansionary fiscal policy stance. The restrictive fiscal policy stance supports a
narrowing of Slovakia’s high current account deficit. The preparation of additional
public expenditure reforms, which are necessary to underpin the envisaged fiscal
consolidation, has gained very strong momentum. However, most of the necessary
measures still need to be further specified, appropriately sequenced and implemented.
The Slovak government has been moving more decisively to tackle the deep-seated
structural unemployment problem. Progress has been made as regards financial sector
supervision, but the authorities need to continue to safeguard the expanding financial
sector against stability risks. Further measures to improve the legal framework for a
market economy have been instituted. Its effective implementation is also being
enhanced. Nevertheless, additional vigorous efforts in the area need to be pursued.
As regards overall administrative and judicial capacity, sufficient conditions are in place
for the implementation of the
acquis
by the Slovak public administration and judiciary,
but there is room for further improvements. In the field of public administration, the
number of staff in sectors dealing with issues related to European integration should be
increased, accompanied by a long term strategy for training. With respect to the ongoing
decentralisation of the public administration, it is important that the transfer of functions
and fiscal decentralisation go hand in hand. As regards the judicial sector, the
administrative capacities of the Judicial Council need to be strengthened and its financial
independence ensured. Further efforts are necessary to reduce the duration of court
proceedings in civil and commercial cases, and as regards judicial training. The fight
against corruption should continue to receive high priority, in particular as regards strict
enforcement of existing rules. Further legislative measures should be taken in the areas
of conflict of interests, financing of political parties and lobbying.
As regards the implementation of the
acquis
in specific policy areas, the findings of this
report are set out below.
Firstly, it should be noted that Slovakia has reached a
high level of alignment with the
acquis
in most policy areas.
It is expected to be in a position to implement the
acquis
as required in the following
areas by accession: horizontal and procedural measures, new approach legislation and
public procurement in the
free movement of goods
chapter; citizens’ rights, free
movement of workers and co-ordination of social security systems, in terms of
free
movement of persons;
the banking sector and the investment services and securities
markets in the area of
free movement of services; free movement of capital,
including
money laundering;
company law
and accounting; and anti-trust in the
competition policy
chapter. In the area of
agriculture,
Slovakia is expected to be in a position by accession
to implement the
acquis
in a number of horizontal areas, in most common market
organisations, in rural development, and in the veterinary field as regards animal disease
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control measures, trade in live animals and animal products, animal welfare, zootechnics
and animal nutrition as well as in the phytosanitary field in general; and in
fisheries.
Slovakia is also expected to be in a position to implement the
acquis
by accession in :
trans-european transport networks, rail transport, inland waterways, air transport and
maritime transport, as regards
transport policy;
direct taxation and administrative co-
operation as regards
taxation; economic and monetary union; statistics;
as regards
social
policy and employment,
labour law, equal treatment of women and men, health and
safety, social dialogue, employment policy, social inclusion and social protection;
energy
policy;
industrial policy; small and medium-sized enterprises; science and research;
education and training; culture and audio-visual policy;
programming in the area of
regional policy and co-ordination of structural instruments;
horizontal legislation, air
quality, waste management, water quality, nature protection, chemicals and genetically
modified organisms, noise, and nuclear safety and radiation protection in the area of
environment;
safety-related measures and consumer organisations in the field of
consumer and health protection;
many areas in the field of
justice and home affairs;
customs union;
common commercial policy and humanitarian aid and development
policy in the
external relations
chapter; common foreign and security policy; public
internal
financial control
and external audit; and
financial and budgetary provisions.
Secondly, in certain areas Slovakia partially meets the commitments and requirements
and needs to make
enhanced efforts
in order to complete its preparations for accession.
This includes the old approach legislation and the non-harmonised area in the field of
free movement of goods;
mutual recognition of professional qualifications in the
free
movement of persons
chapter; in the area of
free movement of services,
insurance,
information society services, protection of personal data, right of establishment and the
freedom to provide non-financial services; protection of intellectual and industrial
property rights in the field of
company law.
In the
agricultural
area, it concerns trade
mechanisms, the common market organisations for sugar, wine, and beefmeat, in the
veterinary field the veterinary control system, transmissible spongiform encephalopathies
(TSEs) and animal by-products, and common measures, and in the phytosanitary field
controls on maximum residue limits for pesticides.
This also includes the fields of: road
transport;
VAT and excise duties in the field of
taxation;
public health, the European Social Fund, and anti-discrimination in the area of
social policy and employment; telecommunications and information technologies
including postal services; legislative framework, institutional structures and financial
management and control as regards
regional policy and co-ordination of structural
instruments;
industrial pollution in the area of
environment;
market surveillance and non-
safety-related measures in the field of
consumer and health protection;
in the field of
justice and home affairs
with respect to the Schengen Action Plan, data protection, visa
policy, external borders, asylum and the fight against fraud and corruption;
external
relations,
as regards bilateral agreements with third countries; control over structural
action expenditure and protection of the EC financial interests in the area of
financial
control.
Thirdly, Slovakia must take immediate and decisive action to address four issues of
serious concern
in two chapters of the
acquis
if it is to be ready by the date of accession.
This concerns the
competition policy
field as regards the fulfilment of the conditions
specified in the Accession Treaty for the transitional arrangement granted in the steel
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sector. It also concerns the field of
agriculture,
as regards Slovakia’s preparations for
setting up the Paying Agency, for implementing the Integrated Administration and
Control System and for upgrading the agri-food establishments in the area of public
health protection.
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1465023_0055.png
S
TATISTICAL ANNEX
1998
Basic data
Population (average)
Total area
National accounts
Gross domestic product at current prices
Gross domestic product at current prices
Gross domestic product per capita b) at current
prices
Gross domestic product at constant prices (nat.
currency)
Employment growth
Labour productivity growth
Unit labour cost growth
Gross domestic product per capita b) at current
prices
GDP per capita b) at current prices in PPS
Labour productivity (GDP per person employed in
PPS)
Structure of production
- Agriculture
- Industry (excluding construction)
- Construction
- Services
Structure of expenditure
- Final consumption expenditure
- household and NPISH
- general government
- Gross fixed capital formation
- Stock variation
- Exports of goods and services
- Imports of goods and services
Inflation rate
Consumer price index
:
10,100
775.0
19.6
3,600
5,391
49,035
1999
5,395
49,035
2000
in 1000
5,401
in km²
49,035
2001
5,380a)
49,035
2002
5,379p
49,034
1000 Mio Slovak Koruna
835.7
18.9
3,500
908.8
21.3
in ECU/Euro
4,000
4,300
4,700
989.3
22.8
1,074
25.1
1000 Mio ECU/euro
% change over the previous year
4.0
1.5
2.4
1.3
-3.2
4.7
-3.3
10,500
:
10,400
2.2
-2.5
4.9
:
:
11,000
3.3
0.9
:
:
11,400
4.4
0.1
in Purchasing Power Standards
in % of EU-15 average
50
51
49
53
46
52
47
53
47
54
% of Gross Value Added c)
5.3
27.1
7.1
60.5
75.9
54.1
21.8
36.2
-1.5
59.2
69.9
4.7
29.2
5.5
60.7
76.1
56.3
19.8
30.3
-2.1
61.0
65.4
4.7
27.6
5.4
62.4
76.0
55.8
19.8
29.5
-2.4
71.8
74.2
4.5
26.7
5.1
63.8
76.6
56.3
20.0
31.3
0.7
74.0
82.5
4.5
26.4
5.4
63.6
76.2
56.2
19.9
29.8
1.4
72.8
79.9
as % of Gross Domestic Product
% change over the previous year
6.7
10.4
12.2
7.0
3.3
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1465023_0056.png
1998
Balance of payments
-Current account
-Trade balance
Exports of goods
Imports of goods
-Net services
-Net income
-Net current transfers
-
of which: government transfers
- FDI (net) inflows
Public finance
General government deficit/surplus
General government debt
Financial indicators
Gross foreign debt of the whole economy
Gross foreign debt of the whole economy
Monetary aggregates
- M1
- M2
- M3
Total credit
Average short-term interest rates
- Day-to-day money rate
- Lending rate
- Deposit rate
ECU/EUR exchange rates
- Average of period
- End of period
- Effective exchange rate index
Reserve assets
-Reserve assets (including gold)
-Reserve assets (excluding gold)
External trade
Trade balance
Exports
Imports
Terms of trade
Exports with EU-15
Imports with EU-15
-2,097
9,555
11,652
:
55.7
50.1
2,820
2,497
39.54
43.21
70.0
15.5
14.5
13.0
:
12.2
3.4
10.9
:
-1,893
-2,097
9,555
11,652
17
-140
327
0
1999
-1,088
-1,035
9,572
10,607
47
-283
184
-1
:
2000
-772
-994
12,872
13,866
475
-380
128
-6
2,317
2001
-1,950
-2,373
14,118
16,491
535
-349
237
-10
1,763 e)
2002
-2,059 e)
:
:
:
:
:
:
:
4,260 e)
in Mio ECU/euro
in % of Gross Domestic Product
-4.7
28.9
-6.4
43.8
-10.4
46.9
-7.3
48.1
-7.2p
42.6p
in % of Gross Domestic Product
34.2
37.8
32.4
33.1
as % of exports
57.3
61.6
3.6
12.4
:
13.6
11.7
10.7
12.8
44.12
42.40
:
13.9
8.0
9.8
8.5
42.60
43.93
% per annum
7.3
9.7
6.2
43.30
42.78
60.9
5,045
4,691
45.7
4.3
13.8
:
16.1
44.7
5.3
15.9
:
:
5.9
16.9
:
14.5
7.2
9.0
5.6
42.69
41.50
58.3
8,853
8,496
1000 Mio ECU/euro
(1ECU/euro=..Slovak Koruna)
1990=100
63.0
63.7
Mio ECU/euro
3,722
3,358
4,715
4,338
Mio ECU/euro
-1,025
9,602
10,627
:
59.4
51.7
-980
12,876
13,856
:
as % of total
59.0
48.9
59.9
49.8
60.5p
50.3p
-2,373
14,118
16,491
:
-2,263p
15,252p
17,515p
:
previous year=100
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1465023_0057.png
1998
Demography
Natural growth rate
Net migration rate (including corrections)
Infant mortality rate
Life expectancy :
Males:
Females:
Labour market (Labour Force Survey)
Economic activity rate (15-64)
Employment rate (15-64), total
Employment rate (15-64), males
Employment rate (15-64), females
Employment rate of older workers (55-64)
Average employment by NACE branches
- Agriculture and forestry
- Industry (excluding construction)
- Construction
- Services
Unemployment rate, total
Unemployment rate, males
Unemployment rate, females
Unemployment rate of persons < 25 years
Long-term unemployment rate
Social cohesion
Inequality of income distribution
Early school-leavers
Population in jobless households (persons aged
0-65)
Standard of living
Number of cars
Main telephone lines
Number of subscriptions to cellular mobile
services
Infrastructure
Railway network
Length of motorways
75
288
222
285.5
92.2
:
:
:
:
:
:
:
23.2
8.1
30.2
9.2
52.4
69.0
60.6
67.8
53.5
22.8
68.6
76.7
0.8
0.2
8.8
1999
0.7
0.3
8.3
68.9
77.0
2000
0.4
0.3
8.6
at birth
69.1
77.2
2001
-0.2
0.2
6.2
69.5
77.5
2002
-0.1
0.2
7.6
69.9p
77.6p
per 1000 of population
per 1000 live-births
% of population
69.0
58.1
64.3
52.1
22.3
7.2
29.4
9.0
54.3
16.7
16.6
16.9
32.0
7.7
69.6
56.8
62.2
51.5
21.3
in % of total
6.9
29.3
8.0
55.8
18.7
18.9
18.5
36.9
10.1
6.3
29.1
7.9
56.7
19.4
19.8
18.9
38.9
11.3
6.6
30.1
8.1
55.3
18.6
18.4
18.8
37.7
12.1
70.4
56.8
62.0
51.8
22.4
69.5
56.8
62.4
51.4
22.8
as % of the total population of the same age group
% of labour force
ratio of top quintile to lowest quintile
:
:
11.8
:
:
13.0
:
:
11.6
:
5.6
12.9
% of population aged 18-24
% of population aged 0-65
per 1000 inhabitants
229
308.2
123.1
236
314.0
205.0
240
289.3
399.2
247
260.8
543.5
in km per 1000 km²
75
295
75
Km
296
296
302
75
75
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1998
Industry and agriculture
Industrial production volume indices d)
Gross agricultural production volume indices
Innovation and research
Spending on Human
expenditure on education)
Resources
(public
4.55
103.6
94.0
1999
97.9
97.5
2000
108.7
87.7
2001
107.3
109.9
2002
106.8
105.3E
previous year=100
as % of GDP
4.45
4.06
as % of GDP
4.12E
4.03E
Gross domestic expenditure on Research &
Development
Level of Internet access - households
Environment
Total greenhouse gases emissions
Energy intensity of the economy
Share of renewable energy
Modal split of freight transport
p=provisional figures
E=estimate data
0.79
0.66
0.67
:
:
per 1000 inhabitants
:
:
:
:
:
tonnes CO2 equivalent per capita
72.6
70.7
66.9
708.4p
17.8
62.9
:
:
:
62.9
:
:
:
:
kg of oil equivalent per 1000 euro of GDP
1,106.3p 1,112.8p
15.5
57.8
16.3
61.6
as % of total electricity consumption
as % of total freight transport
a) Data are recalculated on Population Census results.
b) Figures have been calculated using the population figures from National Accounts, which may differ from those used in
demographic statistics.
c) Including FISIM.
d) Data of the year 1998 are indices of the goods industrial production, as from 1999 indices of the industrial production
are compiled according to the EU methodology; adjusted from influence of number of working days.
e) Source: Website of the National Bank
Methodological notes
Inflation rate
For
details
please
refer
to
the
following
link
to
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/ecobac_ir.htm
Finance
Public finance:
The general government deficit / surplus refers to the national accounts concept of
consolidated general government net borrowing / net lending (EDP B.9) of ESA95. General government
debt is defined as consolidated gross debt at end-year nominal value.
External trade
Imports and exports (current prices).
The data is based upon the special trade system. Trade Classification:
Trade in goods are recorded using the commodity classification according to the Combined Nomenclature.
Imports are recorded on CIF basis, exports on FOB basis.
Imports and exports with EU-15.
Data declared by the Slovak Republic.
Labour market
Indicators are harmonised annual figures with the exception of average employment by NACE branches
and unemployment rate of persons < 25 years, which are for the 2
nd
quarter of the respective year. The
results are based on the European Union Labour Force Survey (LFS). The EU LFS is conducted on a
quarterly basis in accordance with Council Regulation (EEC) No. 577/98 of 9 March 1998.
58
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1465023_0059.png
For
details
please
refer
to
the
following
link
on
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/emploi.htm
Social cohesion
For
details
please
refer
to
the
following
link
on
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/socohe.htm
Industry and agriculture
Industrial production volume indices.
Data on goods production in 1998 include estimates for enterprises
and for tradesmen. Since 1999 Industrial production index is calculated on the basis of data on industrial
products; data on industrial services; for enterprises with 20 and more employees and selected enterprises
up to 19 employees; data are adjusted from the influence of different number of working days.
Gross agricultural production volume indices.
The gross agricultural output is calculated on the basis of
the turnover at current prices. Agricultural output index is recalculated to the constant prices of
corresponding period of the previous year.
Innovation and research
For
details
please
refer
to
the
following
link
to
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/innore.htm
Environment
For
details
please
refer
to
the
following
link
to
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/enviro.htm
Sources
Total area, External trade, Demography, Standard of living, Infrastructure, Industry and agriculture:
National sources. Other indicators: Eurostat.
59