The European Commission published its fourth annual report on Tuesday (November 13) on the state of the enlargement process of the European Union (EU). The report praised the progress made by the candidate countries, but also called on them to make greater efforts to implement EU legislation and announced an action plan to help in this respect.

Conditions for a country to become a member of the EU include: a functioning market economy, the ability to withstand competitive pressure and market forces inside the EU, and the absorption of the acquis communitaire (all the laws passed by the EU up to the point the country joins).

The report suggests that up to 10 countries could join by 2004, but several commentators have already dismissed that prospect as unrealistic. Internal reform is also urgently required within the EU, especially on the Common Agricultural Policy (CAP) which must be changed to cope with the inefficient farming sectors in most of the candidate countries. The Structural Funds are also a problem as they go towards poorer parts of the EU – at present Spain, Portugal and Greece. These countries are concerned this money will be channelled towards the new members when they join.

If, as many assume, enlargement takes place in waves, the first to join are likely to be Cyprus and Malta. Close behind are the Central and Eastern European countries (CEECs) that have best managed the transformation to market economies i.e. the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. The laggards are Bulgaria and Romania with their barely-constructed market economies, and Turkey, which needs to instigate further economic and political reforms.

The main political problems for the candidate countries outlined in the Commission document were the fight against corruption, fraud and economic crime, trafficking of women and children, the treatment of ethnic minorities and reform of the judiciary and public administration. However, the report overall was positive with the prospect of negotiations being concluded by the end of next year.