EU / CZECH REPUBLIC RELATIONS

Transcription

1 MEMO/98/69 Brussels, 29 September 1998 EU / CZECH REPUBLIC RELATIONS GENERAL DATA Population 10.3 million Total Area km2 Density 131 inhabitants per km2 Neighbouring countries Austria, Germany, Poland and Slovakia Ethnic profile Czech 81.3 %, Moravian 13.2 %, Slovak 3.0 % and 2.5 % others (minorities: ca Roma, Germans, Poles) Languages Czech Religion Atheist 45%, Roman Catholic 30%, Protestant 15, Hussites 8%, 2 % undecided Life expectancy 70.5 years (male), 77.5 years (female) GDP/capita (in pps.) USD in 1997 (PPS) (Eurostat) (60% of EU average) Average monthly wage 8170 CZK in 1996 (CSO) (+/- ECU) Land Use Agriculture 54 %, Forest 33 %, Water 2 %, other 11 % Labor Force 49 % of pop. in active employment: 50.5 % in the tertiary sector, 42.8 % in the secondary sector, 6.7 % in the primary sector Currency Czech Crown (full external convertibility: 1 ECU = 35 Czech Crowns, August 1998) EU / CZECH REPUBLIC RELATIONS The present contractual relationship between the Czech Republic and the EU is regulated by the Europe Agreement which entered into force on 1 February 1995 (O.J. L 348/94). The trade related part of the Agreement had earlier come into force in March 1992 in the form of an Interim Agreement. The Czech Republic applied for membership of the Union on 17 January 1996 and the Commission s Opinion on the Czech Republic s application for membership of the Union was published on 15 July The Commission Services are currently drafting a First Regular Report updating the Opinion of July Accession negotiations began on 31 March ASSISTANCE AND FINANCIAL SUPPORT

2 Summary Over the period , G24 Assistance to Eastern Europe amounted to 86 billion ECU, of which 7%, or 6.4 billion ECU, went to the former CSFR and 4 %, or 3.3 billion ECU to the Czech Republic. Global Assistance to the Czech Republic Over the period , G24 Assistance to Eastern Europe amounted to 86 billion ECU, of which 4 %, or 3.3 billion ECU, went to the CR. A total of 25 billion ECU, or 29 %, was provided by the G24 as grants to Eastern Europe. More than 3.8 % of this grant aid went to the CR. EU Phare ProgrammeFrom 1990 to 1997, Phare provided 493 MECU of grants distributed over the Support following sectors: Environment (29.6 MECU), Private Sector Development ( MECU), Human Resources Development - including TEMPUS - (85.1 MECU), Infrastructure (84.4 MECU), Social Sector Development (17.3 MECU), Civil Society Development (7.2 MECU), General TA Facility and General Institution Building (59.2 MECU), Cross Border Cooperation (115 MECU). Phare Support Multi-Country MIP Cross Border Cooperation The new Phare Policy Guidelines aim at concentrating assistance further on preparation of accession of the associated countries. Since 1998 Phare concentrates on two main requirements: 1) Institution Building; 2) Investment Support. The Multiannual Financial allocation to the Czech Republic will be approximately 330 MECU for the period (including Cross Border Cooperation). The Czech Republic also participates in and is a beneficiary of all Phare funded Multi-Country programmes The CBC programme cofinances activities that have a cross border impact and are related to the INTERREG II programme in specified areas of the border regions of North, West and South Bohemia for the Czech-German and of South Bohemia and South Moravia for the Czech-Austrian CBC programme. The annual allocation for the CBC programme is 25 MECU for the Czech-German programme (started in 1994) and 9 MECU for the Czech-Austrian programme (started with 6 MECU in 1995). Phare Support The Phare programme has made an overall positive contribution to the transition process in the Czech Republic and its integration with the EU. The overall allocation between 1990 and 1997 was 493 MECU (excl. allocations under multicountry programmes). Its distribution is shown in the table below. 2

3 Allocation (in MECU) Sectors/Years Totals Major allocations for: Environment 20 2, Private sector Human resources Privatization, Regional Development, Foreign Investment, Development of SMEs Labour Market Restructuring, Education, TEMPUS, Pilot Schools. Infrastructure Energy, Telecommunication Transport Social sector Civil society Agriculture; land registration Cross Border Cooperation GTAFs; general institution building * 49.2 Europe Agreement; Customs Statistics and Trade; Public Administration; Aid Management Opening of EC Programmes TOTAL

4 Phare in the Czech Republic Multi-Country Programmes COP 1997 As indicated above, from 1990 to 1997, Phare provided 493 MECU of grants distributed over the following sectors: Environment (29.6 MECU), Private sector (95.3 MECU), Human Resources Development -including TEMPUS- (85,1 MECU), Infrastructure (84.4 MECU), Social sector (17.3 MECU), Civil society (7.2 MECU), General TA Facility and general Institution Building (59.2 MECU), Cross Border Cooperation (115 MECU). In addition to the national programmes listed above, the Czech Republic participates in and is a beneficiary of all 37 funded multi-country programmes. The Phare Programme 1997 had the function of making the transition to the new Phare orientations (see below). The 1997 Country Operational Programme (COP) addresses important areas where increased pre-accession efforts are necessary. The programme amounting to ECU 32 million focuses on: 1) Institution building (ECU 18 million), by supporting activities for the adoption, implementation and enforcement of the Community acquis, including the modernisation of public administration and participation in Community programmes; 2) Civil society (ECU 3 million), whereby civil society organisations will be reinforced - an essential element in the further consolidation of a democratic society; 3) Economic and social cohesion and competitiveness (ECU 11 million), with a focus on preparation for participation in the Community s Structural Funds. In total the EU committed ECU 60 million to the Czech Republic in This includes ECU 32 million for the national programme; ECU 3 million for the TEMPUS programme; and ECU 25 million for cross-border co-operation with Germany. EU Trade with Czech Republic: *1 Billion ECU exp/imp Annual rate of change Share of Czech Rep. in extra EU trade EU exp. EU imp. Balance % EU exp. EU imp. exp. imp. % % % % ,1 4,8 +1, ,24 0, ,9 6,4 +1, ,46 1, (EUR12) 10,1 7,8 +2, ,70 1, (EUR15) 11,7 9,0 +2, ,03 1, ,0 9,8 +4, ,24 1, (Jan-Apr) 4,3 3,1 +1, ,8 11,7 +4, ,20 1, (Jan-Apr) 5,0 3,5 +1, ,27 1, (Jan-Apr) 5,4 4,6 +0, ,24 1,92 *1 January to April Annual rate of change is calculated over the same period of

5 Macro-Economic Indicators Czech Republic f 1999f GDP at constant prices (a) 6,4 3,9 1, Agricultural production (a) 4,0-1,4 Industrial production (a) 9,2 7,4 2, Consumer price index (a) 9,1 8,8 8, Unemployment rate, in % (b) 3,0 3,5 5, Budget balance, % GDP (c) 0,6 0,0-1,2 Trade balance, $ bn -3,7-5,9-4,6-2,5 -( ) Current account, $ bn -1,4-4,3-3, ( ) Gross foreign debt, $ bn (b) 16,5 20,4 21,4 Debt-export ratio, % (d) (a) Percentage change over (the same period of) the previous year (b) End of period (c) Consolidated state budget deficit, accrual basis (1995: state budget) (d) Gross hard-currency debt as a percentage of hard-currency exports Source: DG II, July Forecasts (1998, 1999) - Czech Statistical Office (August 3, 1998) 5