1. The Post Accession Agenda of CEE New Member States What is the “Unfinished Business” ?

2.  20 years after the start of the transition  10 years after the beginning of the EU accession negotiations  Five years (two and a half for Bulgaria and Romania) since EU accession  World financial and economic crisis Context

3. The “Unfinished Business” of the Transition Agenda Uncompleted structural reforms in the policy fields of national competence in all CEE NMS:  Education  Health system  Social protection systems and social inclusion, pensions.

4. Reasons  Lack of acquis communitaire in those policy areas  Depend on the capacity and political will of national governments  Party systems’ fragmentation and fragile coalition governments some of which in minority position with a short political lifetime  Temptation to employ populism and nationalism

5. Impact  Deepen the marginalization of certain groups of society and increase the already huge regional development discrepancies  Diminish the already low citizens’ trust in the political establishments and the institutions of representative democracy.  Cause already fragile political systems to become increasingly vulnerable.

6. Economic and Financial Crisis Challenges  Risk the catching-up tendency to be reversed in most of the countries;  vulnerability of the public finances;  challenged sustainability of the economic development.

7. The “Unfinished Business” of the Accession Agenda  Unclear prospects for the Euro adoption in eight of the NMS of CEE  Accession to the Schengen area – Bulgaria and Romania (2011)  JHA Reform, Curbing Corruption – Bulgaria and Romania  Fighting Organized Crime and EU Funds Absorption - Bulgaria  Capacity for constructive co-authorship of common European policies

8. EU Membership Leverage Very limited regarding its impact on the “unfinished business” in the post accession period  EU safeguards against extremism in politics through exercising peer pressure and implementing European policies.  Insignificant and ineffective in impact on the uncompleted spheres of reform (e.g. health, education, social protection and pensions).

9. EU Membership Leverage  Cooperation and verification mechanism (CVM) in reforming the judiciary, fighting organized crime and corruption – Bulgaria, Romania  Schengen Area accession requirement – Bulgaria, Romania  Euro area accession is the only potentially effective leverage – the requirement provide for prudent macro economic policies, contributing to the sustainability of public finances.

10. The Post Accession Agenda  Ensuring stable political systems with mature political parties.  Accomplishing long-term structural reforms in the policy spheres of citizens’ concern.  Assuring functioning institutions of representative democracy, trusted by the citizens.  Creating sustainable long-term economic development and safeguarding public finances.

11. The Post Accession Agenda  Euro area accession for eight of the CEE NMS  Accomplish the transition from a EU membership of full rights to a membership of full value:  effective civic participation in the European policies formulation and implementation;  effective programming of the financial period 2013-2020.  Schengen area accession, JHA reform, fight against corruption and organized crime - Bulgaria and Romania.

12. “The Unfinished Business of the Fifth Enlargement Countries” www.eupi.eu Assya Kavrakova Program Director European Policies and Civic Participation Program Open Society Institute - Sofia E-mail: akavrakova@osi.bgakavrakova@osi.bg Web site: www.osi.bgwww.osi.bg