6. Conclusions

6.1 Transition in central and eastern Europe to political and economic systems compatible with those in the European Union is a complex process. It involves the strengthening of democracy and civil society, the implementation of sound macro-economic policies, privatisation and industrial restructuring, legal and institutional changes, and trade liberalisation, aiming at free trade with the Union and with neighbouring countries. Although the situation varies from country to country, this process of transformation is now well underway.

6.2 The primary responsibility for the success of this process lies with the associated countries themselves. But the strategy agreed at Essen provides for additional support from the Union, including a closer working relationship with its own institutions, the adaptation of PHARE priorities to changing needs, and a major new effort to prepare the associated countries for their future integration into the internal market.

6.3 The present White Paper marks the beginning of a process and provides a guide for the associated countries in adapting their legal structures to those which are needed for future participation in the internal market. It sets out a logical sequence for adopting the necessary measures and will enable associated countries to draw up internal market work programmes adapted to each country's own economic and reform priorities. It will also enable the Union to provide the kind of support which is most needed, drawing on the necessary expertise in the Union's own institutions, in the Member States and in the private sector. The proposed Technical Assistance Information Exchange Office will greatly facilitate the provision of well targeted assistance from PHARE and from sources of expertise in the Member States.

6.4 The progressive adoption by the associated countries of internal market legislation and the establishment of the structures needed for its implementation and enforcement will support the economic reform process. Significant economic advantages to business and commerce in the associated countries and in the Union are expected. The progressive elimination of barriers will increase competitiveness and allow business to expand. At the same time, the inclusion in the White Paper's recommendations of legislation in the fields of competition, social and environmental policy, which are essential to the functioning of the internal market, will ensure that alignment takes place in a balanced way. Alignment with the internal market is to be distinguished from accession to the Union which will involve acceptance of the acquis communautaire as a whole.

6.5 Besides the specific process which it will set in motion, the White Paper will give a fresh impetus to the wider process of integration between the associated countries and the Union and will stimulate trade. As the Commission indicated in its Communication of 13 July 1994 on the pre-accession strategy, "once satisfactory implementation of competition and state aids policies (by the associated countries) has been achieved, together with the application of other parts of Community law linked to the wider market, the Union could decide to reduce progressively the application of commercial defence instruments for industrial products form the countries concerned, since it would have a level of guarantee against unfair competition comparable to that existing inside the internal market."

6.6 The White Paper process will also facilitate trade by creating favourable conditions for the conclusion of agreements on the mutual recognition of tests of the conformity of products with established industrialised standards. The purpose of such agreements would be to secure mutual acceptance of certificates, marks of conformity and test reports issued by technical bodies concerned with industrial standards in the associated countries and in the Union. It should be possible to begin negotiations on mutual recognition when the procedures followed by certification institutes, testing laboratories and similar bodies in the associated countries have been brought into line with those in the Union. The White Paper provides guidance on how this is to be achieved. It will be followed up by enhanced technical assistance from PHARE in these specialised fields.

6.7 The progressive alignment of the associated countries with the internal market will strengthen economic reform and help create a favourable environment for economic integration. Costs for public administrations and businesses in the countries concerned and in the Union will also be reduced. The Commission intends to make an analysis of these potential benefits and to present the results of this analysis to the institutions of the Union and to the associated countries.

6.8 The process of integration with the internal market has already been launched through consultations, cooperation and assistance in the framework of the Europe agreements, PHARE and in the preparation of this White Paper. Following publication of the White Paper and its consideration by the European Council, the Commission considers that the following actions should be taken to implement its recommendations.

6.9 The Commission will:

6.10 The associated countries are invited to

6.11 The member states are invited to

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