EUROPE AGREEMENT

Contents
	Introduction
	PART I
	PART II
	PART III
	PART IV
	PART V
	PART VI
	PART VII
	PART VIII
	TITLE IX

TITLE VI
ECONOMIC COOPERATION

Article 72

1. The Community and Bulgaria shall establish economic cooperation aimed at contributing to Bulgaria's development and growth potential. Such cooperation shall strengthen existing economic links on the widest possible foundation, to the benefit of both Parties.
2. Policies and other measures will be designed to bring about economic and social development of Bulgaria and will be guided by the principle of sustainable development. These policies should ensure that environmental considerations are also fully incorporated from the outset and that they are linked to the requirements of harmonious social development.
3. To this end, the cooperation should focus in particular on policies and measures related to industry including investment, agriculture and agro-industrial sector, energy, transport, telecommunications, regional development and tourism. 4. Special attention shall be devoted to measures capable of fostering cooperation between the countries of central and eastern Europe with a view to a harmonious development of the region.

Article 73

Industrial cooperation
1. Cooperation shall seek to promote the following in particular:
- industrial cooperation between economic operators of both sides, with the particular objective of strengthening the private sector,
- Community participation in Bulgaria's efforts in both public and private sectors to modernize and restructure its industry, which will effect the transition from a centrally planned system to a market economy under conditions which ensure that the environment is protected,
- the restructuring of individual sectors; in this context the Association Council will examine in particular the problems affecting the sector of coal and steel and the conversion of the defence industry,
- the establishment of new undertakings in areas offering potential for growth, particularly in branches of light industry, consumer goods and market services,
- transfer of technology and know-how.
2. Industrial cooperation initiatives shall take into account priorities determined by Bulgaria. The initiatives should seek in particular to establish a suitable framework for undertakings, to improve management know-how and to promote transparency as regards markets and conditions for undertakings, and will include technical assistance where appropriate.

Article 74

Investment promotion and protection
1. Cooperation shall aim at maintaining and, if necessary, improving a legal framework and a favourable climate for private investment and its protection, both domestic and foreign, which is essential to economic and industrial reconstruction and development in Bulgaria. The cooperation shall also aim to encourage and promote foreign investment and privatization in Bulgaria.
2. The particular aims of cooperation shall be:
- the conclusion, where appropriate, by the Member States and Bulgaria of agreements for the promotion and protection of investment,
- the conclusion, where appropriate, of agreements between Member States and Bulgaria to avoid double taxation,
- to implement suitable arrangements for the transfer of capital,
- to proceed with deregulation and to improve economic infrastructure,
- to exchange information on investment opportunities in the form of trade fairs, exhibitions, trade weeks and other events,
- to exchange information on laws, regulations and administrative practices in the field of investment.
3. Bulgaria shall honour the rules on trade related aspects of investment measures (TRIMs), once these have been adopted within the GATT.

Article 75

Agro and industrial standards and conformity assessment
1. The Parties shall cooperate with the aim to reduce differences in the fields of standardization and conformity assessment procedures.
2. To this end, the cooperation shall seek: - to promote the use of Community technical regulations and European standards and conformity assessment procedures, - where appropriate, to conclude agreements on mutual recognition in these fields, - to encourage Bulgaria's active and regular participation in the work of specialized organizations (CEN, Cenelec, ETSI, EOTC), - to support Bulgaria in the European measurement and testing programmes, - to promote the exchange of technical and methodological information in the field of quality control and production process. 3. The Community will provide Bulgaria with technical assistance where appropriate.

Article 76

Cooperation in science and technology
1. The Parties shall promote cooperation in research and technological development activities. They shall devote special attention to the following: - the exchange of information on each other's science and technology policies, - the organization of joint scientific meetings (seminars and workshops), - joint R& D activities aimed at encouraging scientific progress and the transfer of technology and know-how, - training activities and mobility programmes for researchers and specialists from both sides, - the development of an environment conducive to research and the application of new technologies and adequate protection of intellectual property of the results of research, - participation of Bulgaria in the Community programmes in accordance with paragraph 3. Technical assistance shall be provided where appropriate.
2. The Association Council shall determine the appropriate procedures for developing cooperation.
3. Cooperation under the Community's framework programme in the field of research and technological development shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the legal procedures of each Party.

Article 77

Education and training
1. Cooperation shall aim at a harmonious development of human resources and at raising the level of general education and professional qualifications in Bulgaria, both in public and private sectors, taking into consideration the priorities of Bulgaria. Institutional frameworks and plans of cooperation will be established (building on the European Training Foundation, when established, and the Tempus programme). Participation of Bulgaria in other Community programmes shall also be considered in this context.
2. The cooperation shall focus in particular on the following areas:
- reform of the education and training system in Bulgaria,
- initial training, in-service training and retraining, including the training of public and private sector executives and senior civil servants, particularly in priority areas to be determined,
- cooperation between universities, cooperation between universities and firms, and mobility for teachers, students, administrators and young people,
- promoting teaching in the field of European Studies within the appropriate institutions,
- mutual recognition of periods of studies and diplomas,
- teaching Community languages and the Bulgarian language,
- training translators and interpreters and promoting the use of Community linguistic norms and terminology.

Article 78

Agriculture and the agro-industrial sector
1. Cooperation in this area shall have as its aim the modernization, restructuring and privatization of agriculture and the agro-industrial sector in Bulgaria. It shall endeavour notably to: - develop private farms and distribution channels, methods of storage, marketing, management etc.,
- modernize the rural infrastructure (transport, water supply, telecommunications), - improve land-use planning, including construction and urban planning,
- improve productivity and quality by using appropriate methods and products; provide training and monitoring in the use of anti-pollution methods connected with inputs,
- restructure, develop and modernize processing firms and their marketing techniques,
- promote complementarity in agriculture,
- promote industrial cooperation in agriculture and the exchange of know-how, particularly between the private sectors in the Community and Bulgaria,
- develop cooperation on animal and plant health, agrifood health (in particular ionization) including veterinary legislation and inspection, vegetal and phytosanitary legislation with the aim of bringing about gradual harmonization with Community standards through assistance for training and the organization of checks,
- develop ecologically clean regions, technologies and crops,
- develop and promote effective cooperation on quality assurance systems compatible with the Community models,
- promote integrated rural development in Bulgaria, - exchange information in respect of agricultural policy and legislation.
2. To these ends, technical assistance shall be provided by the Community as appropriate.

Article 79

Energy
1. Within the framework of the principles of the market economy and the European Energy Charter, the Parties shall cooperate to develop the progressive integration of the energy markets in Europe. 2. Cooperation shall include among others technical assistance when appropriate in the following areas: - formulation and planning of energy policy, including its long-term aspects, - management and training for the energy sector, - the promotion of energy saving and energy efficiency, - the development of energy ressources, - improvement of distribution as well as improvement and diversification of supply, - the environmental impact of energy production and consumption, - the nuclear energy sector, - opening up the energy market to a greater degree, including facilitating transit of gas and electricity, - the electricity and gas sectors, including the consideration of the possibility of the interconnection of the supply networks,- modernization of energy infrastructures,- the formulation of framework conditions for cooperation between undertakings in
this sector, - the transfer of technology and know-how.

Article 80

Nuclear safety
1. The aim of cooperation is to provide for a safer use of nuclear energy.
2. Cooperation shall mainly cover the following topics:
- improvement of the operational safety of Bulgarian nuclear power plants,
- evaluation of the feasibility of backfitting the existing power plant equipped with VVER-440 reactors,
- upgrading training of management and other personal of nuclear installations,
- upgrading Bulgaria's laws and regulations on nuclear safety and strengthening the supervisory authorities and their resources,
- nuclear safety, nuclear emergency preparedness and management,
- radiation protection, including environmental radiation monitoring,
- fuel cycle problems and safeguarding of nuclear materials,
- radioactive waste management,
- decomissioning and dismantling of nuclear installations,
- decontamination.
3. Cooperation will include exchange of information and experience and R& D activities in accordance with Article 76.

Article 81

Environment
1. The Parties shall develop and strengthen their cooperation on environment and human health, which they have judged to be a priority.
2. Cooperation shall concern:
- effective monitoring of pollution levels; systems of information on the state of the environment,
- combating local, regional and transboundary air and water pollution,
- sustainable, efficient and environmentally effective production and use of energy; safety of industrial plants,
- the management of water resources for border waterways, including transboundary waterways, in compliance with the principles of international law and in particular in conformity with the provisions of the Convention on the protection and use of transboundary watercourses and international lakes,
- classification and safe handling of chemicals,
- water quality, particularly of transboundary waterways (including the Danube and of the Black Sea),
- effective prevention and reduction of water pollution, especially of sources of drinking water,
- waste reduction, recycling and safe disposal, implementation of the Basle Convention,
- the environmental impact of agriculture; soil degradation, salinity and acidification,
- the protection of forests and flora and fauna; restoring ecological stability of the countryside,
- land-use planning, including construction and urban planning, - coastal zone management, - use of economic and fiscal instruments,
- global climate change and its prevention,
- environment education and awareness,
- implementation of regional international programmes, inter alia of the Danube Basin and the Black Sea.
3. Cooperation shall take place notably through: - exchange of information and experts, including information and experts dealing with the transfer of clean technologies,
- training programmes,
- harmonization of laws (Community standards) regulations standards, norms and methodology,
- cooperation at regional level, possibly including the implementation of joint programmes at international level, particularly as regards the management, the protection and quality of the waters of transboundary waterways; cooperation within the framework of the European Environment Agency once it comes into existence,
- development of strategies, particularly with regard to global and climatic issues, - environmental impact studies,
- improvement of the environmental management, inter alia water management.
4. Protocol 8 lays down the arrangements applicable to the management, protection and quality of the waters of transboundary waterways.

Article 82

Transport
1. The Parties shall develop and strengthen their cooperation so as to enable Bulgaria to: - restructure and modernize transport,
- improve the movement of passengers and goods and the access to the transport market by removing administrative, technical and other obstacles,
- facilitate Community transit through Bulgaria by road, rail, inland waterway and combined transport,
- achieve operating standards comparable to those in the Community.
2. Cooperation shall include the following in particular:
- economic, legal and technical training programmes,
- the provision of technical assistance and advice, and exchange of information.
3. Cooperation shall include the following priority areas: - road transport, including the gradual easing of transit conditions,
- the management of railways and airports, including cooperation between the appropriate national authorities,
- the development of a road network and the modernization, on major routes of common interest and trans-European links, of road, inland waterway, railway, combined transport port and airport infrastructure, - land-use planning including construction and urban planning,
- the upgrading of technical equipment to meet Community standards, particularly in the fields of road and rail transport, multimodal transport and transhipment,
- the setting up of consistent transport policies compatible with those applicable in the Community,
- the promotion of joint technological and research programmes in accordance with Article 76.

Article 83

Telecommunications and postal services
1. The Parties shall expand and strengthen cooperatio
n in this area, and shall to this end initiate notably the following actions:
- exchange information on telecommunications and postal services policies,
- exchange technical and other information and organize seminars, workshops and conferences for experts of both sides,
- conduct training and advisory operations,
- carry out transfers of technology and know-how in all elements of telecommunications and postal services,
- have the appropriate bodies from both sides carry out joint projects,
- promote European standards, systems of certification and regulatory approaches, - promote new communications facilities, services and installations, particularly those with commercial applications.
2. These activities shall focus on the following priority areas:
- development and application of a sectorial market policy in telecommunications and postal services in Bulgaria, of legal and regulatory acts and procedures,
- the modernization of Bulgaria's telecommunications network and its integration into European and world networks,
- cooperation within the structures of European standardization,
- the integration of trans-European systems; the legal and regulatory aspects of telecommunications, - the management of telecommunications in the new economic environment: organizational structures, strategy and planning, purchasing principles.

Article 84

Banking, insurance and other financial services
1. The Parties shall cooperate with the aim of establishing and developing a suitable framework for the encouragement of a banking, insurance and financial services sector in Bulgaria.
2. Cooperation shall focus on:
- the improvement of efficient accounting and audit systems in Bulgaria based on European Community standards,
- the strengthening and restructuring of the banking and financial systems,
- the improvement and harmonization of supervision and regulation system of banking and financial services,
- the preparation of glossaries of terminology, - the exchange of information in particular in respect of proposed legislation,
- the preparation and translation of Community and Bulgarian legislation.
3. To this end, the cooperation shall include the provision of technical assistance and training.

Article 85

Audit and financial control cooperation
1. The Parties shall cooperate with the aim of developing efficient financial control and audit systems in the Bulgarian administration following standard Community methods and proceedings.
2. Cooperation shall focus on: - the exchange of relevant information on audit systems,
- the unification of audit documentation,
- training and advisors' operations.
3. To this end, technical assistance shall be provided by the Community as appropriate. Article 86 Monetary policy At the request of the Bulgarian authorities, the Community shall provide technical assistance designed to support the efforts of Bulgaria towards the introduction of full convertibility of the leva and the gradual approximation of its policies to those of the European Monetary System. This will include informal exchange of information concerning the principles and the functioning of the European Monetary System.

Article 87

Money laundering
1. The Parties will establish a framework for cooperation aimed at preventing the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular.
2. Cooperation in this area shall include administrative and technical assistance with the purpose of establishing suitable standards against money laundering equivalent to those adopted by the Community and international fora in this field, including the Financial Action Task Force (FATF).

Article 88

Regional development
1. The Parties shall strengthen cooperation between them on regional development and land-use planning.
2. To this end, any of the following measures may be undertaken: - the exchange of information by national, regional or local authorities on regional and land-use planning policy, and, where appropriate, the provision of assistance to Bulgaria for the formulation of such policy, - joint action by regional and local authorities in the area of economic development, - study of a joint approach for the development of regions situated on Bulgaria's border with the Community, - exchange visits to explore the opportunities for cooperation and assistance, - the exchange of civil servants or experts, - the provision of technical assistance, with special emphasis on the development of disadvantaged areas, - the establishment of programmes for the exchange of information and experience, by methods including seminars.

Article 89

Social cooperation
1. With regard to health and safety, the Parties shall develop cooperation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community. Cooperation shall comprise the following in particular:
- the provision of technical assistance,
- the exchange of experts,
- cooperation between firms,
- information and administrative and other relevant assistance to firms and training operations,
- cooperation in public health.
2. With regard to employment, cooperation between the Parties shall focus notably on:
- the organization of the labour market,
- job-finding and careers advice services,
- the planning and the implementation of regional restructuring programmes,
- the encouragement of local employment development. Cooperation in this field shall be realized through actions such as the performance of studies, provision of the services of experts and information and training.
3. With regard to social security, cooperation between the Parties shall seek to adapt the Bulgarian social security system to the new economic and social situation, primarily by providing the services of experts and information and training.

Article 90

Tourism The Parties shall increase and develop cooperation between them, which shall include:
- facilitating the tourist trade and, where appropriate, reducing relevant formalities,
- assistance to Bulgaria for the privatization of the tourist sector as well as for the working out of efficient state and company policies for establishing optimal legal administrative and financial mechanisms for its further development,
- increasing the flow of information through international networks, data bases, etc.,
- transferring know-how through training, exchanges, seminars,
- studying the opportunities for joint operations (cross-border projects, town-twinning, etc.),
- exchanging views and providing for appropriate exchanges of information on major issues of mutual interest affecting the tourism sector.

Article 91

Small and medium-sized enterprises
1. The Parties shall aim to develop and strengthen small and medium-sized enterprises (SMEs), in particular in the private sector, and cooperation between SMEs in the Community and Bulgaria.
2. They shall encourage the exchange of information and know-how in the following areas:
- improving, where appropriate, the legal, administrative, technical, tax and financial conditions for the setting-up and expansion of SMEs and for cross-border cooperation,
- the provision of the specialized services required by SMEs (management training, accounting, marketing, quality, control, etc.) and the strengthening of agencies providing such services,
- the establishment of appropriate links with Community operators in order to improve the flow of information to SMEs and promoting cross-border cooperation (for example the business cooperation network (BC-NET), Euro-info Centres, conferences, etc.).
3. Cooperation will include the supply of technical assistance in particular for the establishment of appropriate institutional support for SME's, at both national and regional level, regarding financial, training, advisory, technological and marketing services.

Article 92

Information and the audiovisual sector
1. The Community and Bulgaria shall take appropriate steps to stimulate the effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and professional circles in Bulgaria with more specialized information, including, where possible, access to Community databases.
2. The Parties shall cooperate in the promotion of the audiovisual industry in Europe. The audiovisual sector in Bulgaria could most notably take part in activities set up by the Community in the framework of the Media programme under procedures laid down by the bodies responsible for managing each activity and in accordance with the provisions of the Decision of the Council of the European Communities of 21 December 1990, which established the programme. The Community will encourage the Bulgarian audiovisual sector to participate in the appropriate Eureka programmes. The Parties shall coordinate and, where appropriate, harmonize their policies regarding the regulation of cross-border broadcasting, technical norms in the audiovisual field and the promotion of European audiovisual technology. Cooperation could include inter alia the exchange of programmes, bursaries and facilities for the training of journalists and other media professionals.

Article 93

 Consumer protection
1. The Parties shall cooperate with the aim of achieving full compatibility between the systems of consumer protection in Bulgaria and the Community.
2. To this end, cooperation shall comprise, within existing possibilities: - the exchange of information and experts, - access to Community databases, - training operations and technical assistance.

Article 94

Customs
1. The aim of cooperation shall be to guarantee compliance with all the provisions scheduled for adoption in connection with trade and to achieve the approximation of Bulgaria's customs system to that of the Community, thus helping to ease the steps towards liberalization planned under this Agreement.
2. Cooperation shall include the following in particular:
- the exchange of information,
- the development of appropriate infrastructure of crossing points between the Parties,
- the introduction of the single administrative document and the combined nomenclature by Bulgaria,
- the interconnection between the transit systems of the Community and Bulgaria,
- the simplification of inspections and formalities in respect of the carriage of goods,
- the organization of seminars and training periods, - support in the introduction of modern customs information systems. Technical assistance shall be provided where appropriate.
3. Without prejudice to further cooperation foreseen in this Agreement, and in particular Article 97, the mutual assistance between administrative authorities in customs matters of the Parties shall take place in accordance with the provisions of Protocol 6.

Article 95

Statistical cooperation
1. Cooperation in this area shall have as its aim the development of an efficient statistical system to provide, in a rapid and timely fashion, the reliable statistics needed to support and monitor the process of economic reform and contribute to the development of private enterprise in Bulgaria.
2. The Parties shall cooperate in particular:
- to strengthen Bulgaria's statistical apparatus,
- to bring about harmonization with international (and particularly Community) methods, standards and classifications,
- to provide the data needed to maintain and monitor economic reform,
- to provide private-sector economic operators with the appropriate macro-economic and micro-economic data,
- to guarantee the confidentiality of data,
- to exchange statistical information.
3. Technical assistance shall be provided by the Community as appropriate.

Article 96

Economics
1. The Community and Bulgaria will facilitate the process of economic reforms and integration by cooperating to improve understanding of the fundamentals of their respective economies and the devising and implementing of economic policy in market economies.
2. To these ends the Community and Bulgaria will:
- exchange information on macro-economic performance and prospects and on strategies for development
- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it,
- through the programme of Action for Cooperation in Economics (ACE) in particular, encourage extensive cooperation among economists and managers in the Community and Bulgaria, in order to expedite the transfer of know-how for the drafting of economic policies, and provide for wide dissemination of the results of policy-relevant research.

Article 97

Drugs
1. The cooperation is in particular aimed at increasing the efficiency of policies and measures to counter the supply and illicit traffic of narcotic drugs and psychotropic substances and to reduce the abuse of these products.
2. The Parties shall agree on the necessary methods of cooperation to attain these objectives, including the modalities of the implementation of common actions. Their actions will be based on consultation and close coordination over the objectives and the policy measures in the fields targeted in paragraph 1.
3. Cooperation between the Parties will comprise technical and administrative assistance which could deal in particular with the following areas: - the drafting and implementation of national legislation,
- the creation or strengthening of institutions and information centres and of social and health centres,
- increasing the efficiency of the institutions engaged in combating illicit drug trafficking,
- the training of personnel and research,
- the prevention of diversion of precursors and other essential chemicals used for the purpose of illicit manufacture of narcotic drugs or psychotropic substances, by establishing suitable standards equivalent to those adopted by the Community and relevant international bodies, in particular the Chemical Action Task Force (CATF). The Parties may agree to include other areas.