Through its European Neighbourhood Policy (ENP), the EU works with its southern and eastern neighbours to achieve the closest possible political association and the greatest possible degree of economic integration. This goal builds on common interests and on values – democracy, the rule of law, respect for human rights, and social cohesion. The ENP is a key part of the European Union's foreign policy.

Partner countries agree with the EU anENP action planor an Association Agenda demonstrating their commitment to democracy, human rights, rule of law, good governance, market economy principles and sustainable development. The EU supports the achievement of these objectives:

• financial support – grants worth €12 bn were given to ENP-related projects from 2007 to 2013;
• economic integration and access to EU markets – in 2011 trade between the EU and its ENP partners totalled €230bn;
• easier travel to the EU – 3.2 m Schengen visas were issued to citizens, and in particular to students from ENP countries in 2012;
• technical and policy support (European, 2018). 

The EU also supports the civil society which plays an important role in bringing about deep and sustainable democracy in partner countries.

Joint initiative. 

The ENP is a jointly owned initiative and its implementation requires action on both sides, by the neighbours and by the EU. The ENP benefits from greater coherence thanks to the creation of the European External Action Service which supports the High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the European Commission Federica Mogherini and the involvement of the Commissioner specifically dealing with European Neighbourhood Policy and Enlargement Negotiations European Neighbourhood Policy,Johannes Hahn (European, 2018).

Of the 16 ENP countries. 12 are currently are already fully participating as partners in the ENP, having agreed on ENP action plans. In the table 1 the ENP countries are presented. 

Table 1 ENP countries

Armenia	Israel	Morocco	Algeria*
Azerbaijan	Jordan	Palestine	Belarus**
Egypt	Lebanon	Tunisia	Libya**
Georgia	Moldova	Ukraine	Syria**

* is currently negotiating anENP action plan

**remain outside most of the structures of ENP.

 

Action plans

The ENP action plans (or Association Agendas for Eastern partner countries)

• set out the partner country's agenda for political and economic reforms, with short and medium-term priorities of 3 to 5 years
• reflect the country's needs and capacities, as well as its and the EU’s interests.

The action plans build on existing legal agreements with the EU – partnership & cooperation agreements (PCAs) or association agreements (AAs). Implementation is monitored through committees set up by these agreements. Once a year, the European External Action Service and the European Commission publishENP progress reports assessing the progress made towards the objectives of theAction Plans and the Association Agendas.

The European External Action Service and the European Commission publish yearlyENP progress reports. The next reports are planned to be published on 25 March 2015.

At the last review of its European Neighbourhood Policy in 2010-11, the EU introduced the more-for-more principle: the EU will develop stronger partnerships and offer greater incentives to countries that make more progress towards democratic reform – free and fair elections, freedom of expression, of assembly and of association, judicial independence, fight against corruption and democratic control over the armed forces.

The ENP is chiefly a bilateral policy between the EU and each partner country. But it is complemented by regional and multilateral cooperation initiatives:

• Eastern Partnership;
• the Union for the Mediterranean Partnership;
• Black Sea Synergy. 

The ENP review proposes revisedjoint priorities for cooperation, better suited to the challenges of our time and adapted to the regions’ evolutions. In addition to good governance, democracy, rule of law and human rights, three other sets of joint priorities have been identified, each of them covering a wide number of cooperation sectors: 

• economic development for stabilisation; 
• the security dimension;
• migration and mobility.

Competition:

• The existence of effective rules to ensure that companies compete fairly and effectively contributes to economic developmentand encourages innovation. As a result, consumers have more choicein the goods and services available to them and better value-for-money.
• Anti-trust policy improves economic opportunities for all and fosters inclusive development.
• Limiting state aid in a fair manner to areas where it is really necessary provides space for fair competition by better and cheaper producersand allows a more efficient use of scarce public resources.

Taxation:

1. European Neighbourhood Policy promotes good governance and the modernisation of tax systems in order to combatcross-border tax fraudand tax evasionwithout hindering trade, investment and fair competition.
2. For example, tax cooperation aiming to decrease the high excise duty differences on tobacco products (cigarettes etc.) between the EU and its partners, helps to reducecrimes such as smugglingacross common borders, increases budget revenues and contributes to a higher level of health protection.

Conclusion of the Partnership and Cooperation Agreement (PCA) from the 14th of June 1994 (came into force on the 1st of March 1998) initiated the cooperation on broad range of political, economic, trade, and humanitarian issues. The conclusion of the PCA allowed to establish a regular bilateral dialogue between Ukraine and the EU on political and sectoral levels, to introduce trade regulations based on the principles of GATT/WTO, to determine the priorities of Ukrainian legislation adaptation to the European norms and standards (acquis communautaire) in main sectors of the Ukrainian economy. 7 priorities were listed in the PCA, such as: energy, trade and investments, justice and home affairs, adaptation of Ukrainian legislation to that of the EU, environment protection, transport, border cooperation, cooperation in areas of science, technology and space.

Taking into account that the 10-year term of PCA was expiring in March 2008, Ukraine and the EU launched on the 5th of March 2007 the negotiation process on a new agreement between Ukraine and the EU. Before the new agreement is signed, the PCA is automatically prolonged upon the mutual agreement of both sides. Upon the entry of Ukraine to the World Trade Organization, on the 18th of February 2008 Ukraine and the EU launched negotiations on creating a free trade area, opening ways towards the liberalization of movement of goods, services, capital and non-tariff instruments of economic regulatory policy. On the 9th of September 2008, during the Paris Summit, Ukraine and the EU reached a political agreement that the future agreement between the sides would be an agreement of association type, based on the principles of political association and economic integration. During 15th Ukraine – EU Summit on the 19th of December 2011 the negotiations on the Association Agreement were announced completed and on the 30th of March 2012 the chief negotiators initialled the text of the future Agreement.

On the 16th of September 2014 the Verkhovna Rada of Ukraine synchronously with the European Parliament ratified the Association Agreement. Completion of all Ukrainian and the EU necessary internal procedures allowed to start from the 1st of November 2014 the provisional application of a large part of the Association Agreement for the period prior to its full entry into force after ratification of the Agreement by all EU Member States.

Thereby, the Association Agreement forms the legal basis of cooperation between Ukraine and the EU for the medium-term perspective.

In spring 2014 the Government of Ukraine together with the European Commission and the European External Action Service, jointly elaborated a document called the European Reform Agenda for Ukraine. This document includes a comprehensive list of common tasks in the context of Ukraine’s development and implementation of fundamental reforms in our state. The European Reform Agenda became, in fact, a roadmap for the Ukrainian Government in implementing of its priorities of and for the EU's respective assistance to Ukraine (European, 2018).