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Europe Daily Bulletin No. 8177
GENERAL NEWS / (eu) eu/enlargement

Poland and EU settle tricky issue of farmland sales and cigarette taxation - Other results of accession negotiations on Thursday

Brussels, 21/03/2002 (Agence Europe) - An overview of the results of the accession negotiations that took place at deputy-level on Thursday with ten of the twelve candidate countries negotiating accession to the EU (Slovenia and Latvia did not attend due to insufficient preparation):

  • Poland. Two important chapters were closed - free circulation of capital (including the sensitive issue of the sale of Polish farmland) and taxation. In terms of sales of farmland, Poland finally won a 12 year transition period after accession in which the acquisition of farmland by EU citizens would be subject to the granting of a permit by the Polish authorities. Farming communities already present in Poland that have leased land will have the option of buying it after a transition period of 3 or 7 years (depending on the region) without having to get a permit first. Jan Truszczynski, the Polish negotiator, said he was satisfied and pleased with the agreement, that took account of the specific nature of Poland and "improved the atmosphere and prospects" of the negotiations to come on other difficult chapters. Mr Truszczynski warned against excessive optimism, however, since the agreement should not necessarily be seen as being a forerunner of easy negotiations on the agricultural chapter, where the EU and Poland still hold very divergent opinions. In terms of the taxation chapter, Poland won a derogation (until the end of 2008) to align its cigarette excise duties (lower than in the EU) with the minimum required by EU legislation. Poland has now closed 22 of the 31 negotiating chapters.
  • Lithuania. Lithuania also closed the taxation chapter after winning a transition period until the end of 2009 for aligning its cigarette duties with the minimum rates imposed by the Community acquis. Lithuania has now closed 24 of the 31 negotiating chapters. It also continued negotiations over energy on Thursday. According to the Lithuanian negotiator, Petras Austrevicius, all the technical problems (liberalisation of the gas and electricity markets in line with the timetable set in the current directives, derogation until 2009 to achieve the minimum energy reserves of 90 days national consumption, etc) have been resolved, but the chapter cannot be concluded due to the issue of closing the Ignalina nuclear plant. The EU is insisting the plant be fully closed by 2009, but Lithuania is calling for greater financial aid to this effect. Without greater funding from the EU, Ignalina cannot be shut down on schedule - the government will soon be putting forward forecasts of the total cost of shutting down the plant (which produces around 70% of the nation's electricity supplies).
  • Bulgaria. No additional chapters were closed on Thursday (the total number of closed chapters currently stands at 14), but negotiations were launched on the remaining chapters - agriculture and Economic and Monetary Union (EMU). The Bulgarian negotiator Meglene Kuneva voiced the hope that three chapters would be concluded in April (free circulation of goods, social policy and EMU) with the entire negotiating process being concluded in 2003.
  • Malta. Richard Cachia Caruana, the Maltese negotiator, was able to conclude negotiations over the Justice and Home Affairs chapter on Thursday, bringing the total number of closed chapters to 21.
  • Romania. No chapters were closed on Thursday, but five new chapters were opened - free circulation of goods, free circulation of individuals, energy, regional policy and the environment. The chief Romanian negotiator Vasile Puscas said that Romania aimed to open negotiations on all the remaining chapters this year (on top of the five chapters opened on Thursday, there are still some seven chapters for which negotiations have not started yet). He said that the entire accession negotiating procedure should be completed at the beginning of 2004. To date, Romania has closed 9 of the 31 chapters. Mr Puscas stressed the importance in Romania's eyes of being able to benefit from a new EU pre-accession strategy at the end of the year (with additional pre-accession aid) and also from a roadmap that is adjusted to take account of the fact that Romania (along with Bulgaria) will probably not be part of the first wave of new Member States.
  • Cyprus. Only one chapter was on the agenda (taxation) but additional negotiations will be necessary before it can be closed. Cyprus has closed 24 chapters so far.
  • Slovakia. The chapter on taxation has been closed (total: 23 chapters closed), notably with a transition period until the end of 2008 for aligning duties on cigarettes. Slovak negotiator, Jan Figel, asserted that he saw "clear potential" for the two sides to concluded negotiations by the end of the year
  • Estonia. The Baltic country has closed four supplementary chapters: free movement of persons, justice and home affairs, transport, customs union (total number of chapters closed: 24). Estonia has also finished negotiations on the "veterinary and phytosanitary" part of the agriculture chapter.
  • Czech Republic. No closure on Thursday. Total number of closures is 24.
  • Hungary. Formally, there was no supplementary chapter closed on Thursday, but the "veterinary and phytosanitary" agriculture chapter - following on from Estonia and Slovenia -is no considered resolved. Hungary has so far closed 24 chapters.

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