2004 Regular Report on Turkey’s progress towards accession A. INTRODUCTION ....................................................................................................................................... 3 1. PREFACE.................................................................................................................................................... 3 2. RELATIONS BETWEEN THE EU AND TURKEY ............................................................................................. 5 Recent developments in bilateral relations ............................................................................................................ 5 Community assistance........................................................................................................................................... 7 Twinning ............................................................................................................................................................. 10 B. CRITERIA FOR MEMBERSHIP ........................................................................................................... 11 1. ENHANCED POLITICAL DIALOGUE AND POLITICAL CRITERIA.................................................................... 11 1.1 Developments since the Helsinki European Council..................................................................... 14 1.2 Democracy and the Rule of Law ................................................................................................... 19 The parliament .................................................................................................................................................... 19 The executive ...................................................................................................................................................... 20 National Security Council ................................................................................................................................... 21 The judicial system.............................................................................................................................................. 23 Anti-corruption measures .................................................................................................................................... 28 1.3 Human rights and the protection of minorities ............................................................................. 29 Civil and political rights...................................................................................................................................... 33 Economic and social rights.................................................................................................................................. 45 1.4 Cyprus ........................................................................................................................................... 51 1.5 Peaceful settlement of border disputes.......................................................................................... 52 1.6 General evaluation........................................................................................................................ 53 2. ECONOMIC CRITERIA ............................................................................................................................... 57 2.1 Introduction................................................................................................................................... 57 2.2 Summary of economic developments since 1999........................................................................... 57 2.3 Assessment in terms of the Copenhagen criteria........................................................................... 59 2.4 General evaluation........................................................................................................................ 70 3. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP......................................................................... 71 3.1 Chapters of the acquis................................................................................................................... 75 Chapter 1: Free movement of goods......................................................................................................................... 75 Chapter 2: Free movement of persons ...................................................................................................................... 81 Chapter 3: Freedom to provide services ................................................................................................................... 82 Chapter 4: Free movement of capital........................................................................................................................ 86 Chapter 5: Company law .......................................................................................................................................... 87 Chapter 6: Competition policy.................................................................................................................................. 90 Chapter 7: Agriculture .............................................................................................................................................. 93 Chapter 8: Fisheries.................................................................................................................................................. 98 Chapter 9: Transport policy ...................................................................................................................................... 99 Chapter 10: Taxation .............................................................................................................................................. 102 Chapter 11: Economic and Monetary Union .......................................................................................................... 104 Chapter 12: Statistics.............................................................................................................................................. 105 Chapter 13: Social policy and employment ............................................................................................................ 107 Chapter 14: Energy................................................................................................................................................. 112 Chapter 15: Industrial policy .................................................................................................................................. 117 Chapter 16: Small and medium-sized enterprises................................................................................................... 119 Chapter 17: Science and research ........................................................................................................................... 122 Chapter 18: Education and training ........................................................................................................................ 124 Chapter 19: Telecommunications and information technologies............................................................................ 126 Chapter 20: Culture and audiovisual policy............................................................................................................ 128 Chapter 21: Regional policy and coordination of structural instruments................................................................ 129 Chapter 22: Environment........................................................................................................................................ 131 Chapter 23: Consumers and health protection ........................................................................................................ 134

2 Chapter 24: Co-operation in the field of justice and home affairs .......................................................................... 137 Chapter 25: Customs union .................................................................................................................................... 146 Chapter 26: External relations ................................................................................................................................ 148 Chapter 27: Common foreign and security policy .................................................................................................. 151 Chapter 28: Financial control ................................................................................................................................. 154 Conclusion.............................................................................................................................................................. 159 3.2 General evaluation...................................................................................................................... 159 C. CONCLUSION ........................................................................................................................................ 164 D. ACCESSION PARTNERSHIP: GLOBAL ASSESSMENT................................................................ 173 ANNEXES ......................................................................................................................................................... 177

3 A. INTRODUCTION 1. Preface The European Council in Cardiff in June 1998 noted that the Commission would present a report on Turkey based on Article 28 of the Association Agreement and the conclusions of the Luxembourg European Council of December 1997. The Commission presented its first  Regular  Report  on  Turkey  in  October  1998,  together  with  the  Regular  Reports  for the other candidate countries. The Helsinki European Council meeting in December 1999 concluded that: "Turkey  is  a  candidate  State  destined  to  join  the  Union  on  the  basis  of  the  same criteria as applied to the other candidate States. Building on the existing European Strategy,  Turkey,  like  other  candidate  States,   will  benefit  from  a  pre-accession strategy to stimulate and support its reforms." As part of the pre-accession strategy, the Commission reports regularly to the European Council   on   progress   made   by   each   of   the   candidate   countries   in   preparing   for membership.  Consequently,  the  Commission  has  published  a  series  of  yearly  Regular Reports on Turkey, covering the years 1998 to 2003. The Copenhagen European Council meeting in December 2002 concluded that: “The  Union  encourages  Turkey  to  pursue  en  ergetically  its  reform  process.    If  the European Council in December 2004, on the basis of a report and a recommendation from  the  Commission,  decides  that  Turkey  fulfils  the  Copenhagen  political  criteria, the European Union will open accession negotiations with Turkey without delay.” In  its  Strategy  Paper  “Continuing  enlargement”,  which  accompanied  the  2003  Regular Reports, the Commission stated that: “The   Commission   will  next   year   assess   the   progress   made   by   Turkey   towards meeting  the  accession  criteria  as  requested  by  the  Copenhagen  European  Council. The Commission will issue a report and a recommendation before the end of October 2004 on whether Turkey fulfils the Copenhagen political criteria. This should allow the  European  Council  to  decide,  at  its  meeting  in  December  2004,  on  the  possible opening of accession negotiations with Turkey.” The Brussels European Council meeting in June 2004 concluded that: “The   Union   reaffirms   its   commitment   that   if   the   European   Council   decides   in December 2004, on the basis of a report and recommendation from the Commission, that  Turkey  fulfils  the  Copenhagen  political  criteria,  the  EU  will  open  accession negotiations with Turkey without delay.”

4 The Commission has prepared this Regular Report with a view to the Brussels European Council in December 2004. The structure followed for this Regular Report is largely the same as that used in previous years. The Report: – describes the relations between Turkey and the Union, in particular in the framework of the Association Agreement; – analyses  the  situation  in  respect  of  the  political  criteria  set  by  the  1993  Copenhagen European Council (democracy, rule of law, human rights, protection of minorities); – assesses Turkey’s situation and prospects in respect of the economic criteri   a defined by the  Copenhagen  European  Council  (a  functioning  market  economy  and  the  capacity  to cope with competitive pressures and market forces within the Union); – addresses the question of Turkey’s capacity to assume the obligations of membership, that is, the acquis as expressed in the Treaties, the secondary legislation, and the policies of the Union. In this part, special attention is paid to nuclear safety standards, which were emphasised by the Cologne and Helsinki European Councils. This part includes not only the alignment of legislation, but also the development of the judicial and administrative capacity necessary to implement and enforce the acquis. The European Council stressed the importance of this latter aspect at its meeting in Madrid in 1995 and on a number of subsequent occasions, most recently in Brussels in June 2004. At Madrid, the European Council stressed that the candidate countries must adjust their administrative structures, so as to create the conditions for the harmonious integration of these States. The Brussels European Council emphasised the importance for Turkey of ensuring decisive progress in the full and timely implementation of reforms at all levels of the administration. This Report takes into consideration progress since the 2003 Regular Report. It covers the period until 31 August 2004. In some particular cases, however, measures taken after that date  might  be  mentioned.  It  looks  at  whether  planned  reforms  referred  to  in  the  2003 Regular  Report  have  been  carried  out  and  examines  new  initiatives.  In  addition,  this Report  provides  an  overall  assessment  of  the  situation  for  each  of  the  aspects  under consideration. Furthermore, in view of the fact that the 2004 Regular Report provides the basis on which the   Commission   formulates   its   recommendation   as   to   whether   Turkey   fulfils   the Copenhagen political criteria, this Report includes an evaluation of Turkey’s track record as regards the political criteria since the Helsinki European Council meeting in December 1999.  As  regards  the  economic  criteria,  the  report  also  provides  a  dynamic,  forward- looking evaluation of Turkey’s economic performance. The Report contains a separate section examining briefly the extent to which Turkey has addressed the Accession Partnership priorities. As in previous Reports, “progress” has been measured on the basis of decisions actually taken,  legislation  actually  adopted,  international  conventions  actually  ratified  (with  due

5 attention being given to implementation), and measures actually implemented. As a rule, legislation or measures which are in various stages of either preparation or Parliamentary approval have not been taken into account. This approach ensures equal treatment for all the candidate countries and permits an objective assessment of each country in terms of their concrete progress in preparing for accession. The  Report  draws  on  numerous  sources  of  information.  Turkey  has  been  invited  to provide   information   on   progress   made   in   preparations   for   membership   since   the publication  of  the  last  Regular  Report.  The  information  it  has  provided  within  the framework  of  the  Association  Agreement,  the  National  Programme  for  the  Adoption  of the  Acquis,  and  various  peer  reviews  that  have  taken  place  to  assess  its  administrative capacity  in  a  number  of  areas,  have  served  as  additional  sources.  Council  deliberations and European Parliament reports and resolutions have been taken into account in drafting the   Report.¹   The   Commission   has   also   drawn   on   assessments   made   by   various international  organisations,  in  particular  the  contributions  of  the  Council of  Europe,  the OSCE, the international financial institutions, and non-governmental organisations. 2. Relations between the EU and Turkey Recent developments in bilateral relations During   the   last   year,   the   pre-accession   strategy   has   continued   to   be   implemented. Enhanced political dialogue has continued under the Italian, Irish and Dutch presidencies. Among  the  items  discussed  were  the  political  reforms  in  Turkey,  human  rights,  Cyprus and   the   peaceful   settlement   of   disputes.   Views   were   also   exchanged   on   wider international   issues   such   as   European   Security   and   Defence   Policy,   the   Southern Caucasus,  the  Western  Balkans,  the  Middle  East  Peace  Process,  Iraq,  Iran,  Afghanistan and effective multilateralism. The process of legislative scrutiny carried out in the framework of the sub-committees of the Association Agreement has continued and intensified following the conclusions of the Copenhagen European Council. This process focused on precise sector issues. Its purpose is to guide Turkey through the requirements for implementation of the acquis, including administrative  capacity  and  enforcement.  An  enhanced  programme  of  working  groups, TAIEX seminars  and technical meetings on specific subjects supplemented the work of the sub-committees. The   participation   of   Turkey   in   the   Community   programmes   is   continuously   being intensified  and  extended  on  the  basis  of  the  Framework  Agreement  from  2002,  which allows Turkey to participate in eleven programmes and agencies (Enterprise & SMEs, the 6th  Framework  Programme  on  Research,  Combating  Discrimination,  Combating  Social Exclusion, Gender Equality, Incentive Measures in the field of Employment, Community ¹For the European Parliament the rapporteur during the reporting period was Mr Arie Oostlander.

6 Action in the field of Public Health and eContent) open to candidate countries, including three  since  the  last  Association  Council  (Fiscalis  2007,  Customs  2007  and  IDA,  the Community    programme    in    the    field    of    electronic    interchange    of    data    between administrations).   Common   work   continues   on   further   extension   of   cooperation   to additional  programmes,  in  particular  in  the  areas  of  education  and  culture.  Preparations are well advanced for participation in Leonardo da Vinci II, Socrates II and Youth. With regard to Turkish participation in Community agencies, Turkey continues its participation in  the  European  Environment  Agency  (EEA)  on  the  basis  of  the  agreement  signed  in January  2003.  Also,  cooperation  with  the  European  Monitoring  Centre  for  Drugs  and Drug  Addiction  is   continuing,  while  preparation  of  the  relevant  agreement  for   full participation is in its final stage. Discussions are under way on possible ways to establish cooperation between Turkey and the new European Aviation Safety Agency (EASA). The  Association  Agreement  has  continued  to  work  reasonably  well.  The  Association Council met in May and an Association Committee meeting was held in March. The Joint Parliamentary Committee comprising representatives of Turkey and European Parliament met  in  December  2003  and  in  April  2004.  The  Joint  Consultative  Committee  with  the Economic and Social Committee met in October 2003 and in May 2004.   The European Council of 17-18 June 2004 invited Turkey to conclude negotiations with the Commission on behalf of the Community and its 25 Member States on the adaptation of the Ankara Agreement to take account of the accession of the new Member States. The Commission   transmitted   subsequently   to   the   Turkish   authorities   the   draft   protocol required  for  the  adaptation  of  this  agreement,  which  could  not  yet  be  signed.  Pending signature, Turkey has not extended the Customs Union to the Republic of Cyprus. Certain improvements in the functioning of the Customs Union have taken place, and co- operation  between  the  Commission  and  Turkey  has  further  progressed,  in  particular concerning  technical  regulation  of  products.  However,  the  level  of  litigation  remains significant,  due  to  Turkey’s  failure  to  implement  several  commitments  taken  under Decision 1/95. As a consequence, an action plan for the widening and the deepening of the  Customs  Union  could  not  be  agreed.  The  negotiations  in  view   of  reaching  an agreement on services and public procurement have continued in 2003 and 2004 albeit at a   slower   pace.   Turkey’s   failure   to   align   its   government   procurement   legislation constitutes a significant hurdle for these negotiations. The Association Council Decision concerning  the  implementation  of  competition  rules  could  not  be  signed  because  the Turkish State Aids Monitoring Authority is not established. Trade in agricultural products is regulated by Decision 1/98 of the Association Council, but is hindered in particular by the Turkish ban on imports of most live animals and meat products  from  the  EU,  which  is  not  in  line  with  Turkey’s  international  obligations. Discussions  in  view  of  adapting  Decision  1/98,  after  accession  of  the  10  new  Member States,  have  been  concluding  at  technical  level,  but  are  subject  to  procedural  delays  on the Turkish side. The  ECSC-Turkey  Free  trade  agreement  (Decision  1/97  of  the  Association  Council)  is being implemented smoothly.

7 A revised Accession Partnership was adopted by the Council in May 2003. More details on this instrument can be found in Part D of this report. A revised National Programme for the Adoption of the Acquis was adopted in July 2003. Both  the  Accession  Partnership  and  the  National  Programme  for  the  Adoption  of  the Acquis are revised on a regular basis to take account of progress made and to allow for new priorities to be set. The share of the European Community (EU-25) in Turkey’s foreign trade has continued to increase in 2003, for a second consecutive year. Total trade in goods with the EU-25 in 2003 was 11.5% up on 2002 and accounted for 54.7% of Turkey’s overall trade. In 2003, exports  to  the  EU-25  were  12.8%  up  on  2002,  accounting  for  58.1%  (€22.7  billion)  of Turkey’s  total  export  sales.  Its  main  industrial  exports  to  the  EU-25  were  apparel, textiles, vehicles and automotive parts. Turkey’s main agricultural exports to the EU-25 were  fruits  and  nuts,  which  allowed  Turkey  to  have  surplus  in  trade  of  agricultural products.  In  2003,  imports  from  the  EU-25  were  up  by  10.6%  on  2002,  accounting  for 52.4%   (€30.6   billion)   of   Turkey’s   total   imports.   Its   main   industrial   imports   were machinery, chemicals, iron and steel. Its main agricultural imports were cereals. Currently there are two anti-dumping procedures against Turkey, one of  which is under review.  No  new  anti-dumping  or  other  trade  defence  measures  were  taken  in  2003,  nor investigations  initiated.   In  March  2004   a  safeguard  investigation  (erga  omnes)  was initiated  on  imports  of  farmed  salmon.  In  April  the  EU  adopted  a  definitive  safeguard measure on imports of preserved citrus fruits, erga omnes. Community assistance There   is   a   pre-accession   instrument   dedicated   to   assist   Turkey:   the   pre-accession financial  assistance  programme  for  Turkey  adopted  by  the  Council  in  December  2001. The procedures for programming and implementing this programme now largely mirror those  of  the  Phare  programme.  The  support  provided  by  the  pre-accession  financial assistance   programme   is   focused   on   the   Accession   Partnership   priorities   which   are intended to help Turkey meet the criteria for membership. Like  the  Phare  programme,  this  programme  provides  support  for  institution  building, investment to strengthen the regulatory infrastructure needed to ensure compliance with the acquis, and investment in economic and social cohesion. This support comprises co- financing for technical assistance, twinning (see below) and investment-support projects, to   help   Turkey   with   its   efforts   to   adopt   the   acquis   and   strengthen   the   institutions necessary   for   implementing   and   enforcing   the   acquis.   The   pre-accession   financial assistance  programme  is  also  intended  to  help  Turkey  develop  the  mechanisms  and institutions to promote economic and social cohesion; it is supported by a limited number of  measures  (investment  and  grant  schemes)  with  a  regional  or  thematic  focus.  It  may also support activities which in the other candidate countries would be financed by ISPA or SAPARD.

8 The   decentralised   implementation   system   was   formally   accredited   by   Commission Decision  in  October  2003.    There  was  a  delay  until  June  2004  before  the  system  was operational also for the management of grant schemes whilst the authorities recruited the necessary human resources for the management of such schemes.  However, the system is now fully operational for all pre-accession programmes.  A number of MEDA projects are  still  ongoing  in  Turkey  and  are  generally  managed  by  the  Commission  through  its Delegation in Ankara. Between   1995   and   2003,   €1098   million   was   committed   to   various   programmes   in Turkey.  The 2004 Programme for Turkey consists of an allocation of €235.6 million for the National Programme. The 2004 programme focuses on the following priorities: Addressing  the  Copenhagen  political  criteria:  significant  support  will  be  provided  to the  Human  Rights  Presidency  in  the  Office  of  the  Prime  Minister  to  promote  the recently  adopted  reform  packages.    In  addition  there  are  activities  to  help  establish intermediate   courts   of   appeal,   promote   civil   society   and   provide   support   to   the establishment  of  an  ombudsman.  This  work  is  complemented  by  other  activities elsewhere  in  the  programme  which  have  an  impact  on  the  political  priorities  of  the Accession   Partnership,   such   as   those   activities   helping   improve   the   operational standards of the gendarmerie, the promotion of social dialogue and the intensification of efforts to improve the situation in south-east Turkey (€18.9 million). Approximation to the acquis: a significant effort will be made to continue to improve market  surveillance  and  conformity  assessment  systems,  adopt  EU  standards  in  the fields  of  good  laboratory  practice,  harmonise  legislation  in  the  field  of  biocides  and water and improve the regime for special waste and noise management. Support will also  be  provided  to  align  Turkey’s  legislative  frameworks  on  intellectual  property rights, consumer protection, capital markets with those of the EU. Initial steps will be taken   to   prepare   for   assimilation   of   the   agriculture   acquis   in   a   way   which   is complementary   to   the   ongoing   World   Bank   agricultural   reform   implementation programme in Turkey (€31.8 million). Strengthening  public  administration:  the  programme  includes  projects  to  strengthen the capacity of the customs administration, tax administration, food safety and control, epidemiological   surveillance,   management   of   road   transport   and   control   of   the frequency  performance  of  the  Turkish  electricity  system.  In  addition  projects  in  the social  field  will  help  improve  social  dialogue  arrangements  in  Turkey,  improve  the fight against child labour and provide a second phase for an ongoing cancer screening programme (€56.5 million). Justice   and   home   affairs:   the   programme   continues   support   to   help   implement Turkey’s    national    strategies    on    asylum    and    migration    and    integrated    border management. Other projects will help ensure protection and justice for children in the judicial  system  and  establish  a  national  probation  service  which  can  develop  non- custodial sentences for certain criminals. Developing the capacity of the gendarmerie continues  the  process  begun  in  2002/3  of  moving  towards  a  judicial  system  where convictions   are   secured   on   the   basis   of   evidence   and   not   on   the   extraction   of

9 confessions,  and  promotes  the  professionalisation  of  this  law  enforcement  agency (€11.4 million). Economic  and  social  cohesion:  this  priority  targets  the  under-developed  provisional NUTS II regions of Konya (provinces of Konya and Karaman), Kayseri (provinces of Kayseri,   Sivas   and   Yozgat),   Malatya   (provinces   of   Malatya,   Bingöl,   Elazi    and Tunceli)  and  A ri  (provinces  of  A ri,  I dir,  Kars  and  Ardahan).    Funding  is  also provided  through  the  National  Programme  for  the  Turkish  contribution  to  the  cross- border cooperation programmes with Greece and Bulgaria (€77.5 million). The   programme   also   includes   capacity   building   for   the   National   Aid   Coordinator secretariat  (primarily  in  project  preparation,  to  improve  their  capacity  to  design  pre- accession   assistance   programmes)   and   co-financing   for   Turkey’s   contribution   for participation   in   the   Sixth   Framework   Programme   and   the   Community   education programmes (Socrates, Leonardo and Youth). Although   Turkey   is   not   a   beneficiary   under   the   Phare   Regulation,   the   country’s participation  in  Phare  multi-country  programmes,  such  as  TAIEX,  is  sought  as  far  as possible  through  its  own  pre-accession  financial  assistance  envelope.  TAIEX  activities have been significantly increased in Turkey in 2004. Seminars, workshops and bilateral meetings have taken place in support of legislative scrutiny and the overall pre-accession process. Further TAIEX activities are planned for 2005. Overall the impact of Community assistance to Turkey is increasingly positive. The EU has   provided   significant   resources   in   a   number   of   important   areas   such   as   basic education,    training,    environmental    infrastructure,    reproductive    health    and    macro- economic adjustment.  These highly visible pre-2002 activities are now complemented by a   wide   range   of   activities   supported   under   the   pre-accession   financial   assistance programme. The Joint Monitoring Committee met for the first time in December 2003.  It considered  an  independent  evaluation  report  which  concluded  that  the  pre-accession programmes generally displayed adequate effectiveness (i.e. ability to meet their intended purpose).  Their efficiency, on the other hand, could be improved with better organisation of  responsibilities  among  ministries  and  increased  availability  of  staff  in  the  respective beneficiaries.    Furthermore,  the  impact  and  sustainability  of  the  programmes  is  often reliant   on   action   by   the   Turkish   government,   either   to   develop   strategies   or   enact legislation. The  Commission  has  also  sought  a  high  degree  of  complementarity  between  the  pre- accession financial assistance programme and the ongoing reform programmes supported by  the  international  financial  institutions,  particularly  the  World  Bank,  in  areas  such  as education, regulatory reform and public procurement. Turkey  is  also  a  major  beneficiary  of  assistance  from  the  European  Investment  Bank (EIB). The country was able to benefit from up to five different mandates and facilities in 2003: the EuroMed II Lending Mandate for Mediterranean countries, the Mediterranean Partnership  Facility,  the  Special  Action  Mandate  for  Turkey,  the  Turkey  Earthquake Reconstruction and Rehabilitation Assistance Facility (which expired at the end of 2003)

10 and  the  Pre-Accession  Facility.  In  total  Turkey  received  loan  financing  worth  €1.955 million  from  1992  to  2002.  In  2003  around  €600  million  was  granted  by  the  EIB  for major investment projects.  For the period from 2004, and following the enlargement in May,  the  EIB’s  external  lending  mandate  has  been  reviewed.    Turkey  is  no  longer included  in  the  EuroMed  II  Lending  Mandate  but  in  a  new  geographical  mandate  –  the South-eastern Neighbours mandate. Turkey is a full participant in the EIB’s Facility for Euro-Mediterranean  Investment  and  Partnership  which  provides  technical  assistance  for the design of projects and reforms in different economic sectors. Twinning One of the main challenges facing the candidate countries is the need to strengthen their administrative and judicial capacity to implement and enforce the acquis. As of 1998, the European  Commission  began  to  mobilise  significant  human  and  financial  resources  to help  them  with  this  process,  using  the  mechanism  of  twinning   administrations  and agencies. The  twinning  process  makes  the  vast  body  of  Member  States’  public  sector  expertise available  to  the  candidate  countries  through  the  long-term  secondment  of  civil  servants and accompanying short-term expert missions and training. Furthermore,  the  candidate  countries  can  draw  on  Member  States’  expertise  through "Twinning  light",  an  exchange  of  expertise  mechanism  to  support  projects  of  limited scope. For  Turkey,  30  projects  have  been  delivered  over  the  period  2002 - 2003.  Twinning  will again be an important element under the 2004 programme, contributing to the results of 22 projects. These span a broad range of sectors, the most numerous being in the area of justice  and  home  affairs.    In  addition,  twinning  projects  are  planned  in  the  fields  of  the internal   market,   agriculture,   environment,   transport,   the   financial   sector   (including financial control) and customs.

11 B. CRITERIA FOR MEMBERSHIP 1. Enhanced political dialogue and political criteria The political criteria for accession to be met by the candidate countries, as laid down by the Copenhagen European Council in June 1993, stipulate that these countries must have achieved “stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities.”² In its 1998 Regular Report on Turkey, the Commission concluded: “On the political side, the evaluation highlights certain anomalies in the functioning of the public authorities, persistent human rights violations and major shortcomings in the treatment of minorities. The lack of civilian control of the army gives cause for concern.  This  is  reflected  by  the  major  role  played  by  the  army  in  political  life through the national security council. A civil, non-military solution must be found to the  situation  in  south-east  Turkey,  particularly  since  many  of  the  violations  of  civil and political rights observed in the country are connected in one way or another with this  issue.  The  Commission  acknowledges  the  Turkish  government's  commitment  to combat  human  rights  violations  in  the  country  but  this  has  not  so  far  had  any significant  effect  in  practice.  The  process  of  democratic  reform  on  which  Turkey embarked in 1995 must continue. In    addition    to    resolving    these    problems,    Turkey    must    make    a    constructive contribution to the settlement of all disputes with various neighbouring countries by peaceful means in accordance with international law." In its 2003 Regular Report, the Commission found that: “Over  the  past  year  the  Turkish  governmen  t  has  shown  great  determination  in accelerating  the  pace  of  reforms,  which  have  brought  far-reaching  changes  to  the political and legal system. It has also taken important steps to ensure their effective implementation,  in  order  to  allow  Turkish  citizens  to  enjoy  fundamental  freedoms and human rights in line with European standards. Four major packages of political reform  have  been  adopted,  introducing  changes  to  different  areas  of  legislation. Some of the reforms carry great political significance as they impinge upon sensitive issues    in    the    Turkish    context,    such    as    freedom    of    expression,    freedom    of 2 In  the  meantime,  through  the  entry  into  force  of  the  Treaty  of  Amsterdam  in  May  1999,  the political criteria defined at Copenhagen have been essentially enshrined as a constitutional principle in the Treaty on European Union. Article 6(1) of the consolidated Treaty on European Union reads: "The Union is founded on the principles of liberty, democracy, respect for human rights and fundamental freedoms and the  rule  of  law."  Accordingly,  Article  49  of  the  consolidated  Treaty  stipulates  that  "Any  European  State which respects the principles set out in Article 6(1) may apply to become a member of the Union." These principles  were  emphasised  in  the  Charter  of  Fundamental  Rights  of  the  European  Union,  that  was proclaimed at the Nice European Council in December 2000.

12 demonstration,  cultural  rights  and  civilian  control  of  the  military.  Many  priorities under   the   political   criteria   in   the   revised   Accession   Partnership   have   been addressed. Progress is being made in streamlining the functioning of public administration and government.  The  government  has,  in  particular,  started  reforms  with  a  view  to promoting a more transparent management of human resources in the public service. This also serves to strengthen the fight against corruption. The duties, powers and functioning of the National Security Council (NSC) have been substantially  amended,  bringing  the  framework  of  civil-military  relations  closer  to practice  in  EU  Member  States.  The  role  of  the  Secretary  General  of  the  NSC  has been   reviewed   and   its   executive   powers   have   been   abolished.   There   are   still representatives of the NSC in civilian boards such as the  High Audio Visual Board (RTÜK)  and  the  High  Education  Board  (YÖK).  F ull  parliamentary  control  over military expenditures must be ensured both in terms of approving the budget and in terms of auditing. More  efforts  are  still  needed  to  enhance  the  efficiency  and  the  independence  of  the judiciary. Already, the judicial system has been strengthened with the establishment of a new system of family courts. The competence of military  courts to try civilians has been abolished. Positive changes have been made to the system of State Security Courts,   in   particular   the   abolition   of   incommunicado   detention.   However,   the functioning  of  these  courts  still  needs  to  be  brought  fully  in  line  with  European standards in particular with the rights of the defence and the principle of a fair trial. On  the  ground,  implementation  of  the  reforms  is  uneven.  In  some  cases,  executive and   judicial   bodies   entrusted   with   the   implementation   of   the   political   reforms relating to fundamental freedoms adopted by Parliament have narrowed the scope of these reforms by establishing restrictive conditions, hindering the objectives initially pursued.  The  government  has  recognised  that  the  reforms  are  not  being  put  into practice systematically and has set up a Reform Monitoring Group in order to ensure their implementation. Turkey  has  ratified  the  Civil  Law  Convention  on  Corruption,  so  that  on  1  January 2004  it  will  become  a  member  of  the  Council  of  Europe’s  Group  of  States  against corruption (GRECO). However, in spite of several initiatives, corruption remains at a persistently high level and affects many spheres of public life. Turkey has ratified major international as well as European Conventions such as the International Covenant on Civil and Political Rights, on Social and Economic Rights and Protocol 6 of the European Convention on Human Rights. It is, however, of great concern that Turkey has not executed many judgments of the ECtHR,  by  means  of  ensuring  payment  of  just  satisfaction  or  reversing  decisions made in contravention of the ECHR. One example is the Loizidou case, as it is now five years since the EctHR ruled on this matter.

13 The  fight  against  torture  and  ill-treatment  has  been  strengthened  and  the  Turkish legal  system  has  come  closer  to  European  standards  in  this  respect.  The  scale  of torture has declined but there are still reports about specific cases, which continues to cause concern. The  reform  of  the  prison  system  has  continued  and  rights  of  detainees  have  been improved. In practice, the right of access to a lawyer is not always ensured. The  possibility  of  retrial  has  been  introduced  but  in  practice  few  cases  have  been subject to retrial. In the case of Zana and others, retrial has so far largely resulted in a repetition of the previous trial, leading to persistent concerns about the respect for the rights of the defence. The adoption of the reform packages has led to the lifting of several legal restrictions on the exercise of freedom of expression. The enforcement of the revised provisions of   the   Penal   Code   has   led   to   many   acquittals   although   cases   against   persons expressing non- violent opinion continue to occur. A number of persons imprisoned for   non-violent   expression   of   opinion,   under   provisions   that   have   now   been abolished, have been released. Notable  progress  has  been  achieved  in  the  area  of  freedom  of  demonstration  and peaceful assembly where several restrictions have been lifted. Nevertheless, in some cases of peaceful demonstration, the authorities have made a disproportionate use of force. As   regards   freedom   of   association,   some   restrictions   have   been   eased,   but associations  still  experience  cumbersome  procedures.  Cases  of  prosecution  against associations and particularly human rights defenders continue to occur. The  law  on  political  parties  has  been  amended  to  make  closure  of  parties  more difficult.   However,   HADEP   has   been   banned   by   the   Constitutional   Court   and DEHAP is facing proceedings with a view to its closure. Concerning freedom of religion, the changes introduced by the reform packages have not  yet  produced  the  desired  effects.  Executive  bodies  continue  to  adopt  a  very restrictive  interpretation  of  the  relevant  provisions,  so  that  religious  freedom  is subject   to   serious   limitations   as   compared   with   European   standards.   This   is particularly the case for the absence of legal personality, education and training of ecclesiastic    personnel,    and    full    enjoyment    of    property    rights    of    religious communities. Measures   have   been   taken   to   lift   the   ban   on   radio   and   TV   broadcasting   and education in languages other than Turkish. So far, the reforms adopted in these areas have produced little practical effect. The lifting of the state of emergency in the Southeast has in general  eased tensions amongst  the  population.  There  has  been  greater  tolerance  of  cultural  events.  The programme  for  the  return  to  villages  proceeds  at  a  very  slow  pace.  Serious  efforts

14 are  needed  to  address  the  problems  of  internally  displaced  persons  and  the  socio- economic  development  of  the  region  in  a  comprehensive  fashion  and  of  cultural rights in general. In   the   conclusions   of   the   Thessaloniki   European   Council,   and   the   Accession Partnership, Turkey is encouraged to strongly support the efforts of the UN Secretary General  towards  a  settlement  of  the  Cyprus  problem.  Turkey  has  expressed  its support  on  different  occasions  for  a  settlement  to  the  Cyprus  problem.  Turkey  has indicated  that  an  agreement  aiming  to  establish  a  customs  union  with  the  northern part of Cyprus will not come into effect. Relations   between   Turkey   and   Greece   have   continued   to   improve.   Efforts   are continuing  to  put  in  effect  new  confidence  building  measures.  Exploratory  contacts on the Aegean between the two foreign ministries have also continued. Turkey  decided  to  give  its  agreement  as  a  NATO  member  to  the  modalities  of participation  of  non-EU  European  allies  in  EU-led  operations  using  NATO  assets. This  has  solved  a  problem  which  had  hitherto  hindered  the  effective  launch  of  the European Security and Defence Policy. Overall, in the past 12 months Turkey has made further impressive legislative efforts which   constitute   significant   progress   towards   achieving   compliance   with   the Copenhagen   political   criteria.   Turkey   should   address   the   outstanding   issues highlighted  in  this  report,  with  particular  attention  to  the  strengthening  of  the independence  and  the  functioning  of  the  judiciary,  the  overall  framework  for  the exercise  of  fundamental  freedoms  (association,  expression  and  religion),  further alignment  of  civil-military  relations  with  European  practice,  the  situation  in  the Southeast and cultural rights. Turkey should ensure full and effective implementation of  reforms  to  ensure  that  Turkish  citizens  can  enjoy  human  rights  and  fundamental freedoms in line with European standards. Furthermore,  Turkey  should  provide  determined  support  for  efforts  to  achieve  a comprehensive settlement of the Cyprus problem.” The  section  below  provides  an  assessment  of  developments  in  Turkey,  seen  from  the perspective of the Copenhagen political criteria, including the overall functioning of the country’s executive and its judicial system. Such developments are in many ways closely linked to developments regarding its ability to implement the acquis, in particular in the domain of justice and home affairs. Specific information on the development of Turkey’s ability to implement the acquis in the field of justice and home affairs can be found in the relevant  section  (Chapter  24  -  Co-operation  in  the  field  of  justice  and  home  affairs)  of part of this Report. 1.1 Developments since the Helsinki European Council The  decision  of  the  European  Council  in  Helsinki  in  December  1999  that  Turkey  is  a candidate for membership has proved to be a robust catalyst for Turkey to embark upon a

15 process  of  far-reaching  constitutional  and  legislative  reforms.  Following  decades  of sporadic progress and partly because of a political consolidation after the 2002 elections, there   has   been   a   substantial   institutional   convergence   in   Turkey   towards   European standards.   Political   reforms   have   introduced   changes   ranging   from   improved   civil liberties and human rights to enhanced civilian control of the military. Civil society has grown stronger. The reform process has clearly addressed major issues and, importantly, highlighted a growing consensus in favour of liberal democracy. A  Department  for  EU  affairs  was  set  up  in  2000  to  co-ordinate  all  Turkey’s  policies related to the pre-accession process. A National Plan for the Adoption of the Acquis was adopted  in  2001  and  revised  in  2003.  Political  reforms  in  line  with  the  Accession Partnership  have  been  introduced  by  means  of  a  series  of  constitutional  and  legislative changes  adopted  over  a  period  of  three  years  (2001-2004).  There  have  been  two  major constitutional  reforms,  in  2001  and  2004,  and  eight  legislative  packages  adopted  by Parliament  between  February  2002  and  July  2004.  Numerous  other  laws,  regulations, decrees and circulars detailing how these reforms should be implemented were issued. In the  past  few  years,  the  Turkish  government  has  undertaken  efforts  to  ensure  effective implementation of the reforms. The Reform Monitoring Group, a body set up under the chairmanship of the deputy Prime Minister responsible for human rights, was established to supervise the reforms across the board and to solve practical problems. This body has in  particular  tried  to  overcome  bureaucratic  inertia  and  bottlenecks,  including  in  the provinces.  As  regards  democracy  and  the  rule   of  law,  following  some  unsuccessful attempts of the previous years, the prospect of public administration reform received new impetus in early 2002. An Action Plan was adopted, which sets out proposals for a major overhaul  of  the  public  management  system  and  the  restructuring  of  the  relationships between  central  government,  provincial  authorities  and  municipalities.  A  series  of  laws reforming  public  administration  and  local  government  were  adopted  by  Parliament  in July 2004 although subsequently vetoed by the President. Civilian  control  of  the  military  has  been  strengthened.  The  duties,  functioning  and composition of the National Security Council were changed. As part of the constitutional amendments, the NSC was made an advisory body with no executive powers and with a majority of civilians. In August 2004, a civilian was for the first time appointed Secretary General of the National Security Council. In order to enhance budgetary transparency the Court  of  Auditors  was  granted  permission  to  audit  military  and  defence  expenditures. Extra-budgetary   funds   have   been   included   in   the   general   budget   allowing   for   full parliamentary   control.   Military   representatives   in   civilian   bodies   such   as   the   High Education Board and the High Audio-Visual Board have been removed. The competence of military courts was narrowed and they will no longer try civilians for offences related to  criticizing  the  military  service.  The  government  has  increasingly  asserted  its  control over  the  military.  Although  the  process  of  aligning  civil-military  relations  with  EU practice is underway, the Armed Forces in Turkey continue to exercise influence through a series of informal channels. Important changes have been made to the judicial system. The principle of the primacy of international and European human rights conventions over domestic law was enshrined in the  Constitution.  State  Security  Courts  were  abolished  and  some  of  their  competencies

16 were transferred to newly created Regional Serious Felony Courts. Parliament adopted a new Civil Code and a new Penal Code, which will enter into force in April 2005. A draft new  Code  of  Criminal  Procedure  and  draft  Laws  on  the  Establishment  of  the  Judicial Police  and  on  the  Execution  of  Punishments  remain  to  be  adopted.  Other  structural changes  included  the  creation  of  Intermediate  Courts  of  Appeal  and  a  family  courts system  throughout  the  country.  There  has  been  progress  in  aligning  the  rights  of  the defence  with  the  relevant  European  standards.  A  Justice  Academy  was  established  and training on international law and human rights for judges and prosecutors has intensified. The  higher  courts,  such  as  the  Court  of  Cassation,  have  delivered  judgements  applying the    amended    provisions    adopted    by    the    various    packages    of    political    reforms. Nonetheless,   there   is   sometimes   still   a   restrictive   interpretation   of   the   reforms,   in particular by prosecutors. Turkey  has  ratified  the  OECD  Convention  on  Combating  Bribery,  the  UN  Convention Against Corruption, Council of Europe Civil Law and the Criminal Law Conventions on Corruption and the Convention on money laundering. Since 1 January 2004, Turkey has been a member of the Council of Europe’s Group of States against corruption (GRECO). A  number  of  anti-corruption  measures  have  been  adopted,  in  particular  in  establishing ethical rules for public servants. A Parliamentary report about corruption cases involving former members of the government was published in July 2003. Despite these legislative developments,  corruption  remains  a  very  serious  problem  in  almost  all  areas  of  the economy and public affairs. As  regards  human  rights  and  the  protection  of  minorities,  Turkey  has  signed  and/or ratified several international conventions such as the International Covenant on Civil and Political Rights and the International Covenant on Social and Cultural Rights, albeit with reservations.  Constitutional  amendments  were  introduced  allowing  for  the  signature  of the Rome Statute of the International Criminal Court. Turkey  has  made  increased  efforts  since  2002  to  comply  with  the  decisions  of  the European Court of Human Rights (ECtHR). The possibility of retrial in civil and criminal cases in which the ECtHR has found violations was introduced. Retrials have taken place and led to a number of acquittals. The case of Leyla Zana and colleagues is emblematic of the difficulties experienced by the different branches of the judiciary when it comes to the interpretation of the reforms. Based  on  the  fact  that  Turkey  has  clearly  demonstrated  its  commitment  and  ability  to fulfil   its   statutory   obligations   as   a   Council   of   Europe   member,   the   Parliamentary Assembly   of   the   Council   of   Europe   decided   in   June   2004   to   end   the   monitoring procedure  opened  since  1996.  Turkey  will  however  be  subject  to  a  post-monitoring procedure,  which  will  focus  on  a  number  of  areas  pertaining  to  Turkey’s  obligations under  the  European  Convention  for  the  Protection  of  Human  Rights  and  Fundamental Freedoms (ECHR). The death penalty was abolished in all circumstances according to Protocol N°13 to the ECHR which was signed in January 2004. Turkey also ratified Protocol N°6 to the ECHR

17 and  any  remaining  reference  to  the  death  penalty  in  existing  Turkish  legislation  was removed. With   respect   to   the   enforcement   of   human   rights,   a   number   of   bodies   have   been established  such  as  the  Human  Rights  Presidency,  the  Human  Rights  Boards  and  the Human  Rights  Office  within  the  Ministry  of  Interior.  The  Human  Rights  Committee  of Parliament  has  conducted  several  investigations  leading  to  the  publication  of  several general as well as special reports. However, the impact of these bodies on the ground is as yet very limited. Concerning  civil  and  political  rights  more  specifically,  considerable  efforts  have  been made  to  strengthen  the  fight  against  torture   and  ill-treatment,  in  particular  through abolishing  incommunicado  detention  and  improving  the  rules  for  pre-trial  detention, access to a lawyer and medical examinations. Nonetheless, on the ground, detainees are not  always  made  aware  of  their  rights  by  the  law  enforcement  bodies.  The  authorities have adopted a zero tolerance policy towards torture and legislative measures have been adopted to limit the de facto impunity of the perpetrators of torture. Under the new Penal Code  such  perpetrators  will  be  more  severely  punished.  Although  torture  is  no  longer systematic,  numerous  cases  of  ill-treatment  including  torture  still  continue  to  occur  and further efforts will be required to eradicate such practice. Since   2000,   the   prison   system   has   improved   significantly.   Institutions   such   as   the Enforcement   Judges   and   Monitoring   Boards   have   been   established   with   a   view   to enhancing  detainees’  rights.  A  number  of  recommendations  of  the  Committee  for  the Prevention of Torture have been implemented. Since  2001,  several  changes  have  been  made  to  enhance  the  general  framework  for  the exercise  of  fundamental  freedoms.  The  scope  of  these  freedoms  has  been  extended. Various  laws,  including  the  Anti-Terror  Law,  have  been  amended,  lifting  several  legal restrictions on the exercise of freedom of expression. The situation of people sentenced for   non-violent   expression   of   opinion   is   now   being   addressed   and   several   persons sentenced   under   the   old   provisions   were   acquitted   or   released.   At   the   same   time, numerous provisions in different laws can still be interpreted to unduly restrict freedom of   expression   and   prosecutors   continue   to   open   criminal   proceedings   against   those expressing non violent opinion. Constitutional  amendments  have  strengthened  the  freedom  of  the  press.  Press  freedom was  further  improved  via  the  adoption  of  a  new  Press  Law  which  abrogates  sanctions such  as  the  closure  of  publications,  the  halting  of  distribution  and  the  confiscation  of printing machines. However, the frequency of prosecutions against journalists is a cause of concern. Amendments to the Law on Public Meetings and Demonstrations have led to the lifting of several restrictions on the exercise of freedom of association and peaceful assembly. If adopted, the new Law on Associations, which was initially passed by Parliament in July 2004 and vetoed by the President, will be significant in terms of reducing the possibility of   state   interference   in   the   activities   of   associations.   New   institutions   such   as   the

18 Department for Associations have contributed to the transfer of competencies previously falling under the responsibility of the police to civilians. Measures were taken to end the systematic  recording  of  all  meetings  and  demonstrations  and  to  prevent  and  punish  the disproportionate  use  of  force  by  security  forces.  Reports  suggest,  however,  that  human rights  defenders,  including  human  rights  associations,  are  still  subject  to  harassment  by judicial means. The  Law  on  Political  Parties  was  amended,  limiting  the  possibility  for  parties  to  be dissolved.  However,  in  the  last  five  years,  two  important  political  parties  were  banned, including  the  main  opposition  party  in  2001.  Several  provisions  of  the  law  fall  short  of European standards. As regards freedom of religion, although freedom of religious belief is guaranteed in the Constitution   and   freedom   to   worship   is   largely   unhampered,   non-Muslim   religious communities continue to experience problems related to legal personality, property rights, training of clergy, schools and internal management.. As  regards  economic  and  social  freedoms,  the  principle  of  equality  of  men  and  women has  been  strengthened.  Under  the  new  Penal  Code,  perpetrators  of  “honour  killings” should  be  punished  with  life  imprisonment,  virginity  tests  will  be  prohibited  unless formally authorised by a judge or a prosecutor, and sexual assault in marriage will qualify as a criminal offence. However, on the ground, violence against women remains a serious problem. Children’s rights were strengthened through the ratification of the relevant international conventions, legislative adjustments as well as other practical measures. However, child labour remains an issue of serious concern. Significant   constraints   remain   on   the   right   to   organise   and   the   right   to   collective bargaining, including the right to strike. Turkey has still not accepted Article 5 (“right to organise”)  and  Article  6  (“right  to  bargain  collectively”  including  the  right  to  strike)  of the  European  Social  Charter.  Although  an  Economic  and  Social  Council  was  formally established  in  2000  with  a  view  to  promoting  social  dialogue,  such  dialogue  remains weak. Regarding   minority   rights,   cultural   rights   and   the   protection   of   minorities,   the Constitution  was  amended  to  lift  the  ban  on  the  use  of  the  Kurdish  language.  Changes were introduced after some delay allowing radio and TV broadcasting in languages and dialects other than Turkish including Kurdish and the possibility to teach such languages was introduced. Subsequently, Kurdish language courses have opened and television and radio broadcasting in several different languages, such as Kurdish, Arabic and Bosnian, has  begun.  There  has  also  been  greater  tolerance  towards  the  use  of  Kurdish  during cultural   events   in   the   Southeast.   While   such   progress   is   significant,   there   are   still considerable  restrictions  on  the  exercise  of  cultural  rights,  including  in  the  areas  of broadcasting and education.

19 The state of emergency, which had been in force for 15  years in some provinces of the Southeast,  was  completely  lifted  in  2002.  Provisions  used  to  limit  pre-trial  detention rights  under  emergency  rule  were  amended.  Work  has  started  in  co-operation  with international  organizations  in  order  to  address  the  weaknesses  of  Turkey’s  programme aimed at returning internally displaced persons to their villages. However, no integrated strategy  aimed  at  reducing  regional  disparities  and  addressing  the  economic,  social  and cultural needs of the local population has yet been adopted. A Law on Compensation of Losses  Resulting  from  Terrorist  Acts  was  adopted  in  July  2004.  The  Law  on  Social Reinsertion, which provided partial amnesty for people previously involved in activities of illegal organisations has had limited impact. The security situation in the Southeast has considerably  improved   since  1999,  although  there  have  recently  been  a  number  of incidents which resulted in casualties. On the ground, the situation of internally displaced persons remains critical. A number of obstacles, including the village guard system and the absence of basic infrastructure, currently prevent displaced people from returning to their villages. On  the  enhanced  political  dialogue,  Turkish  foreign  policy  has  evolved  significantly. Since   1999,   relations   with   Greece   have   developed   positively.   A   series   of   bilateral agreements   have   been   signed   and   several   confidence   building   measures   have   been adopted. A series of exploratory talks have taken place in the recent period. As regards Cyprus, the issue of the division of the island and the initiatives related to its reunification  have  been  high  on  the  political  agenda  throughout  the  last  few  years.  On several  occasions,  the  Turkish  government  expressed  its  support  for  efforts  to  find  a comprehensive  settlement  to  the  Cyprus  problem  through  the  continuation  of  the  UN Secretary General mission of good offices, although until 2003, it was difficult to discern a  clear  position.  In  the  past  year,  in  a  significant  policy  shift,  Turkey  has  actively supported the efforts of the UN Secretary General to achieve a settlement of the Cyprus problem.  Turkey  supported  the  Annan  Plan  on  a  comprehensive  solution  of  the  Cyprus problem and the subsequent referendum which took place on the island. 1.2 Democracy and the Rule of Law The parliament There has been one parliamentary election since 1999. A clear majority emerged from the November  2002  elections  for  the  AK  Party,   which  enjoys   an   absolute  majority   in Parliament. The activities of Parliament have been dominated by political and economic reforms. Since 1999, the Constitution has been amended several times. Currently,  there  are  368  AKP,  168  CHP,  4  DYP,  and  9  independent  deputies  in  the parliament. There   has   been   a   strong   consensus   between   the   government   party   and   the   main opposition  party  (CHP)  on  the  policy  of  pursuing  accession  to  the  EU,  meaning  that many  EU  related  reforms  have  been  adopted  by  a  large  majority.  The  package  of

20 constitutional  amendments  of  May  was  adopted  with  457  votes  in  favour,  many  more than the 367 requirement. Similarly, the AKP and the CHP deputies worked closely in the Parliamentary Committees dealing with the reform of the Turkish Penal Code. Since  the  previous  Regular  Report,  Parliament  has  adopted  a  number  of  EU  related reforms,  related to both  the Copenhagen political criteria and the  European Community acquis. Examples include the Law on the Right to Information (9 October 2003), the Law on the abolition of some of the articles of the Law on NSC and NSC General Secretariat (10   December   2003),   the   Law   on   Public   Financial   Management   and   Control   (10 December 2003), the Law Amending the Law on Banking (12 December 2003), the Law Amending the Law on the Establishment, Duties and Trial Procedures of Juvenile Courts (7   January   2004),   the   8^th   Harmonization   Package   implementing   the   Constitutional Amendments   of   May   2004   (June   2004),   the   amendments   to   the   Law   on   Public Employees  Trade  Unions,  the  Law  on  Social  Insurance  (June  2004),  the  new  Law  on Associations (July 2004), the legislative package Reforming Public Administration (July 2004),  the  Law  on  Compensation  of  Losses  Resulting  from  Terrorist  Acts  (July  2004), the new Penal Code (September 2004) and the Law establishing the Intermediate Courts of Appeal (September 2004). Between October 2003 and July 2004, the Turkish Grand National Assembly  adopted a total  of  261  new  laws.  The  work  of  Parliamentary  Committees  has  been  central  to  this process. The EU Harmonization Committee, which was established in April 2003 to work as  a  consultative  body  in  the  pre-accession  process,  has  given  its  opinion  on  numerous pieces of legislation. The Committee invited representatives of the European Commission and  of  the  Council  of  Europe  to  some  of  its  discussions,  such  as  on  the  draft  Turkish Penal Code and the Local Administration Law. The  Parliamentary  Committee  on  Human  Rights,  which  monitors  the  developments  in human rights issues, has continued its work in the reporting period (see point 1.3 Human rights and the protection of minorities). The executive The three-party coalition government which had ruled Turkey since 1999 was, following the  early  elections  in  November  2002,  replaced  by  a  one-party  government.  In  the  last two years, Turkey has enjoyed greater stability, overcoming the consequences of the two serious financial crises of 2000 and 2001. Political and economic reforms received new impetus because of the determination of the government to meet the Copenhagen criteria. During the last year, the government has clearly given priority to working for the opening of  negotiations  for  accession  to  the  European  Union.  EU  related  reforms  and  their implementation  has  been  a  permanent  item  on  the  weekly  agenda  of  the  Council  of Ministers since December 2003. A Deputy Prime Minister has been appointed to report to the  Council  on  progress  in  implementing  the  National  Programme  for  Adoption  of  the Acquis.  The  cabinet  has  also  received  regular  briefings  about  the  state  of  play  of  the implementation of the reforms.

21 In order to support the implementation of the human rights reforms, the government set up a Reform Monitoring Group in September 2003 (see point 1.3  Human  rights  and  the protection of minorities). The European Union Secretariat General continues to play an important coordinating role as regards the alignment with and implementation of EU norms and standards as well as programming  of  financial  cooperation  in  support  of  these  objectives.  There  is  some concern  that  the  human  and  administrative  resources  of  the  EUSG  are  not  sufficient  to fulfil its mandate. In  the  reporting  period  the  President  of  the  Republic  exercised  his  right  of  veto  eight times, in particular in areas connected to reforms of public administration and education. The  President  continued  to  chair  the  NSC  and  also  chaired  the  extraordinary  state summits on Cyprus. Parliament  adopted  in   June  and  July  2004  a   package  on  the  reform  of  the  public administration. This includes in particular a Framework Law on Public Sector Reform, a Law  on  Special  Provincial  Administration,  as  well  as  a  Law  on  Municipalities  and Metropolitan Municipalities. Taken together, the purpose of the four laws is to reform the division of competences and duties  between  the  four  levels  of  administration  (central,  provincial,  metropolitan  and municipal)  and  to  improve  performance.  In  principle,  this  wide  ranging  and  ambitious reform aims to convert the country’s centralised, hierarchical and secretive administrative system into a decentralized, participatory, transparent, responsive and accountable model. If  successful,  this  would  contribute  to  modernise  Turkey’s  administrative  culture.  The broad thrust of the reform is in line with the need to upgrade the public administration to modern standards and practices. A successful reform would underpin Turkey’s future EU accession  efforts.  Nonetheless,  it  is  important  that  such  a  challenging  set  of  reforms  is both  feasible  and  sustainable.  In  particular,  an  impact  analysis,  an  implementation  plan and a budgetary and fiscal framework are needed. Apart from the law on Metropolitan Municipalities, the reforms could not enter into force as several articles under these laws were vetoed by the President on the grounds that they violate  the  relevant  constitutional  provisions,  in  particular  those  related  to  the  unitary character  of  the  public  administration.  As  a  result,  Parliament  will  have  to  review  the legislation. National Security Council Since 1999, civilian control of the military has been strengthened. The constitutional and legal framework has been amended to clarify the position of the armed forces versus the civilian  authorities.  A  number  of  changes  have  been  introduced  over  the  last  year  to strengthen civilian control of the military with a view to aligning it with practice in EU member States.

22 As  regards  the  duties,  functioning  and  composition  of  the  National  Security  Council,  a Regulation  was  adopted  in  January  2004  implementing  previous  legislative  changes  of July  2003.  The  new  Regulation  abrogates  the  far-reaching  executive  powers  of  the Secretariat of the National Security Council to follow up, on behalf of the President and the Prime Minister, any recommendation made by this body. In particular, the regulation implements   the   provision   which   abrogated   the   following:   “ the   Ministries,   public institutions and organizations and private legal persons shall submit regularly, or when requested,   non-classified   and   classified   information   and   documents   needed   by   the Secretariat General of the NSC”. Under the abovementioned Regulation, the office of the Secretariat General of the NSC is transformed into a body  serving the purely  consultative function of the NSC.  Its role is now limited to the definition of the agenda. The Secretariat is no longer able to conduct national  security  investigations  on  its  own  initiative.  It  no  longer  manages  directly  the special  funds  allocated  to  it  which  are  now  under  the  exclusive  control  of  the  prime minister. Further changes concern the internal restructuring of the NSC, with a substantial staff  reduction  and  the  abolition  of  some  units.  In  August  2004,  a  senior  diplomat  was appointed  as  the  first  civilian  Secretary  General  of  the  NSC  by  the  President  upon  the proposal of the Prime Minister in accordance with the changes introduced in July 2003. Under the new Regulation, the frequency of the NSC meetings has been reduced to once every  two  months,  except  when  it  is  convened  on  the  request  of  the  Prime  Minister  or directly  by  the  President.  Over  the  last  period,  this  rule  has  been  respected.  Legislation that  came  into  force  in  December  abolished  the  secret  status  of  decrees  governing  the activities of the NSC General Secretariat. Measures   have   been   adopted   enhancing   the   transparency   of   military   and   defence expenditure.   As   regards   ensuring   control   by   the   civilian   authorities   over   military expenditure two significant reforms have been adopted. Firstly,  in  December  2003  the  Law  on  Public  Financial  Management  and  Control  was amended  to  allow  the  inclusion  of  extra-budgetary  funds  in  the  budgets  of  the  relevant administration  i.e.  Defence  Ministry  as  of  1  January  2005  and  the  dissolution  of  these funds  by  31  December  2007.  This  relates  in  particular  to  the  Defence  Industry  Support Fund (SSDF) which is used for major arms procurement purchases and which is expected to reach US$1.3 billion in 2004. The abovementioned provisions have also contributed to strengthening   the   role   of   the   Under   Secretariat   for   Defence   in   defining   budgetary appropriations in the field of military expenditures. Secondly,  new  provisions  were  adopted  concerning  the  ex  post  audit  of  military  and defence   expenditure.   A   regulation   was   adopted   in   February   enabling   the   Court   of Auditors,  on  the  request  of  the  President  of  Parliament,  to  audit  military  and  defence expenditures. A constitutional amendment adopted in May 2004 deletes the exemption of the “ state property in possession of the Armed Forces in accordance with the principles of  secrecy  necessitated  by  national  defence”    from  the  control  of  the  Court  of  Auditors. Appropriate  enabling  legislation  will  be  needed  to  allow  this  important  reform  to  be applied in practice.

23 Through   recent   constitutional   and   legislative   changes,   the   member   of   the   Higher Education Board (YÖK), who was selected by the Chief of General Staff was removed. Similarly, a member appointed by the Secretary General of the National Security Council has been removed from the High Audio-Visual Board (RTÜK). Defence expenditure has been reduced. According to recent data, education spending is for  the  first  time  higher  that  defence  spending.  The  2004  budget  figures  indicate  that, while  defence  spending  is  US$5.6  billion,  or  2.59%  of  GNP,  education  spending  is US$6.7 billion, or 3.06% of GNP. Despite  the  abovementioned  developments,  there  are  still  provisions  on  the  basis  of which the military continues to enjoy a degree of autonomy. As regards the institutional framework, there are legal and administrative structures which are not accountable to the civilian structures. Civilians can be tried before military courts for certain crimes. The  role  and  the  duties  of  the  Armed  Forces  in  Turkey  are  defined  in  several  legal provisions.  Depending  on  their  interpretation,  some  of  these  provisions  taken  together could   potentially   provide   the   military   with   a   wide   margin   of   manoeuvre.   This   is particularly the case for Article 35 and Article 85/1 of the Turkish Armed Forces Internal Service  Law,  which  defines  the  duties  of  the  Turkish  armed  forces  as  to  protect  and preserve the Turkish Republic on the basis of the principles referred to in the preamble of the Constitution, including territorial integrity, secularism and republicanism. It  is  also  the  case  for  article  2a  of  the  National  Security  Council  Law  which  defines national security in such broad terms that it could, if necessary, be interpreted as covering almost every policy area. The  armed  forces  in  Turkey  continue  to  exercise  influence  through  a  series  of  informal mechanisms. On various occasions, military members of the NSC expressed their opinion on political, social and foreign policy matters in public speeches, briefings or statements to the media and declarations. Overall,  reforms  over  the  last  year  concerning  the  functioning  of  the  NSC  have  further shifted the balance of civil-military relations towards the civilians and encouraged public debate in this area. Apart  from  formal  reforms  to  the  legal  and  institutional  framework,  it  is  important  that the civilian authorities fully exercise their supervisory functions in practice, in particular as  regards  the  formulation  of  the  national  security  strategy  and  its  implementation, especially concerning relations with neighbouring countries, as well as the control of the defence budget. The judicial system Since  1999,  some  important  improvements  have  been  made  to  the  Turkish  judicial system. The State Security Courts have been abolished and replaced by Regional Serious Felony Courts (also referred to as Heavy Penal Courts). New specialised courts have been

24 set up in order to improve the efficiency of the judicial system. Legal amendments have improved the rights of defence. A Justice Academy has been established and training on international  law  and  human  rights  for  judges  and  prosecutors  has  been  intensified. Judges  and  prosecutors  have  a  considerable  role  to  play  in  the  implementation  of  the reforms. In   June   2004,   on   request   of   the   President   of   the   Constitutional   Court,   the   Venice Commission   of   the   Council   of   Europe   gave   its   opinion   on   a   draft   constitutional amendment aimed at reforming the Constitutional Court. As  part  of  the  package  of  constitutional  amendments  adopted  in  May  2004,  the  State Security  Courts  were  abolished.  Jurisdiction  over  most  of  the  crimes  falling  within  the competence  of  the  State  Security  Courts  –  principally  organised  crime,  drug  trafficking and  terrorist  offences  –  has  been  transferred  to  newly  -created  regional  Serious  Felony Courts. Some crimes formerly heard by the State Security Courts, notably under Article 312  of  the  Penal  Code,  have  been  transferred  to  the  jurisdiction  of  the  existing  Serious Felony  Courts.  The  rules  of  procedure  applying  by  the  Regional  Serious  Felony  Courts are identical to those applied by other Serious Felony Courts save that the former courts exercise  jurisdiction  over  a  wider  geographic  area  and  the  maximum  period  which  can elapse  between  detention  and  charge  is  forty-eight  rather  than  twenty-four  hours.  The office  of  the  Chief  Public  Prosecutor  for  State  Security  Courts  was  also  abolished; prosecutions  before  the  Regional  Serious  Felony  Court  are  handled  by  the  office  of  the Chief  Public  Prosecutor.  Suspects  before  both  types  of  Serious  Felony  Courts  enjoy identical  rights,  including  the  right  to  consult  a  lawyer  as  soon  as  they  are  taken  into custody. The package of constitutional amendments adopted in May 2004 also revised Article 90 of   the   Constitution,   enshrining   the   principle   of   the   supremacy   of   international   and European  treaties  ratified  by  Turkey  over  domestic  legislation.  Where  there  is  conflict between  international  agreements  concerning  human  rights  and  national  legislation,  the Turkish courts will have to apply the international agreements. A new Penal Code was  adopted in September 2004, replacing the 80  years old existing Penal  Code.  In  general,  the  Code  adopts  modern  European  standards  in  line  with  the recent developments of criminal law in many European countries. It strengthens sanctions against  certain  human  rights  violations  and  introduces  new  offences  reflecting  recent developments   in   international   criminal   law   such   as   genocide   and   crimes   against humanity,   discrimination   and   abuse   of   personal   data   (detailed   assessment   of   the legislation is given in section 1.3 Human rights and the protection of minorities). The Justice Academy, which was legally established in July 2003, started to operate. The Academy is responsible for training both candidate judges and prosecutors as well as for the  continuing  training  of  serving  judges  and  prosecutors.  The  Academy  also  provides training  for  Ministry  of  Justice  personnel,  lawyers  and  notaries.  Between  January  and July  2004,  the  Academy  trained  210  candidate  judges  and  prosecutors.  In  September 2004, the Academy will start training a further 239 candidate judges and prosecutors and will provide continuing training for 660 judges and prosecutors. As well as Turkish law