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2.9 European Union Harmonization Activities
Turkey’s screening process, which is the first phase of EU accession negotiations after Turkey was given a candidate country status by the EU, began on 3 October 2005 and ended on 13 October 2006. The EU harmonization process of Turkey continues. Table 2.9.1 shows developments in the chapters in which the CBRT participated in this screening and negotiations process.
The current situation in EU Chapters that directly concerns the CBRT is as follows: negotiations on chapters “18. Statistics” and “32. Financial Control” were opened on 26 June 2007, while chapters “4. Free Movement of Capital” and “17. Economic and Monetary Policy” were opened to negotiations on 19 December 2008 and 14 December 2015, respectively. “Chapter 9. Financial Services” is one of the eight chapters that were suspended by a resolution passed at the EU summit of 14 15 December 2006, mandating that their negotiations be blocked until the EU Commission verifies that Turkey fulfills its commitments with respect to Southern Cyprus. Nevertheless, in the framework of harmonization with EU acquis in Chapter 9, Turkey put into force the Law No. 6493 on 27 June 2013. This Law also provides harmonization with the relevant EU legislation in “Chapter 4. Free Movement of Capital.” “Chapter 33. Financial and Budgetary Provisions” was opened to negotiations on 30 June 2016. However, one more technical criterion has been introduced for the provisional closure of these negotiations in addition to the full implementation of the Annex Protocol.
Since the onset of technical negotiations with the European Commission, three of six closing benchmarks for “Chapter 32. Financial Control” have been satisfied. Of these three benchmarks, the CBRT has contributed to the closing criterion of “legal and administrative alignment with the Council Regulation (EC) 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting.” Among the chapters with which the CBRT is indirectly involved, “Chapter 28. Consumer and Health Protection” was opened to negotiations on 19 December 2007, “Chapter 6. Company Law” on 17 June 2008, and “Chapter 16. Taxation” on 30 June 2009. Opening benchmarks have been established for “Chapter 19. Social Policy and Employment,” while “Chapter 2. Free Movement of Workers” is still under review by the European Council.
The CBRT continues to provide the Turkish Ministry of Foreign Affairs, Directorate for EU Affairs with information concerning the developments in the chapters for which it is responsible so that the Ministry can monitor the progress being made in Turkey’s harmonization with the EU Acquis and forward this information to the European Commission.
Table 2.9.1: The Status of the Chapters in which the CBRT Participated in the Screening Process and Accession Negotiations
| Directly Related Chapters |
Final Status in Negotiations |
Indirectly Related Chapters |
Final Status in Negotiations |
|---|---|---|---|
| 4. Free Movement of Capital | Negotiations commenced (19 December 2008) | 2. Free Movement of Workers | In progress at the Council level |
| 9. Financial Services | Negotiations suspended (14-15 December 2006) | 6. Company Law | Negotiations commenced (17 June 2008) |
| 17. Economic and Monetary Policy | Negotiations commenced (14 December 2015) | 16. Taxation | Negotiations commenced (30 June 2009) |
| 18. Statistics | Negotiations commenced (26 June 2007) |
19. Social Policy and Employment | Opening benchmarks defined |
| 32. Financial Control | Negotiations commenced (26 June 2007) Added to Positive Agenda |
28. Consumer and Health Protection | Negotiations commenced (19 December 2007) |
| 33. Financial and Budgetary Provisions | Negotiations commenced (30 June 2016) |
Economic and Financial Dialogue with the EU
On 3 May 2018, an “Economic and Financial Dialogue” meeting of experts was held in Brussels. At the meeting, participants discussed assessments of the progress that Western Balkan countries and Turkey had made in the first phase of their Economic Reform Programs (ERP) and the countries’ responses to the assessments and corrections they requested to be made in the European Commission’s final declaration.
On 15 May 2018, a meeting of high level officials was held in Brussels as part of the Economic and Financial Dialogue between the EU and the Western Balkans and Turkey. During this meeting, participants debated a Draft Joint Resolution prepared by the Economic and Financial Committee (EFC) secretariat concerning candidate countries (Albania, Macedonia, Montenegro, Serbia, Bosnia Herzegovina, Kosovo, and Turkey) that had been drawn up at the 3 May 2018 meeting of EFC experts. At this meeting, the text of the joint resolution was finalized for submission and approval at the Economic and Financial Affairs Council (ECOFIN) EU and Candidate Countries Ministerial Dialogue Meeting.
On 25 May 2018, a meeting of Economic and Financial Dialogue between the EU and the Western Balkans and Turkey was held in Brussels. This meeting, which is the highest-level meeting with respect to economic dialogue between the EU and candidate countries, was attended by economy/finance ministers of member and candidate states. At this meeting, the text of the joint resolution prepared at the EFC High-Level Officials Meeting that took place on 15 May 2018 was approved.
On the other hand, the spring and fall Economic Forecast by Candidate Countries meetings that are held twice a year in Brussels by the European Commission took place on 14 April and 18 October 2018, respectively. During these meetings, EU Commission economists and other participants discussed economic and financial forecasts, data and information on related matters.
Moreover, the Turkey EU Association Committee set up under the Ankara Agreement between Turkey and the EU held its 126th meeting on 28 November 2018 in Brussels. The meeting focused on the ERP, the economic governance pillar of the EU expansion strategy.
