In 2007, Romania and Bulgaria will complete the fifth enlargement of the EU, which started in May 2004 with the accession of ten new Member States. However, their accession can be postponed until 2008 where recommended by the European Commission.
Romania concluded its accession negotiations in December 2004 and signed an Accession Treaty in April 2005. As of May 2006, the Accession Treaty has been ratified by Romania and 17 out of 25 Member States.
In its monitoring report of 16 May 2006, the European Commission noted Romania’s significant progress in the reform of its judiciary and in aligning its laws with the entire body of EU law (known as the acquis communautaire). It observes that Romania already fulfills the political criteria for membership and is well on the way to meeting the economic criteria. It concludes that it is still on track for accession on January 1, 2007 as long as it properly addresses various outstanding issues, including four areas of serious concern. Urgent action is required in:
- accrediting fully operational paying agencies for handling direct payments under the common agricultural policy to farmers and operators, building on progress made
- setting up a proper integrated administration and control systems for handling agricultural payments, building on progress made
- improving food safety by building up facilities for rendering collection and treatment of animal by-products in line with EU law
- introducing IT systems for tax administration that are compatible with other EU countries, to ensure proper collection of VAT throughout the EU.
The report also calls for faster reform in areas such as:
- reform of the justice system
- the fight against corruption, money laundering, organised crime, drugs and human trafficking
- strengthening of VAT and direct tax revenue
- reform of public expenditure
- control of state aid
- capital requirements for banks and investment funds,
- motor insurance
- labour law and social policy
- better treatment of the disabled, conditions in psychiatric institutions, and social inclusion of the Roma minority
- agriculture and fisheries
- the traceability and control of genetically modified organisms
- environmental legislation
The final decision on Romania’s accession date has been deferred until early October 2006, when a further evaluation will be carried out. Accession may be postponed to 2008 if the Commission finds clear evidence that there is a serious risk of Romania being manifestly unprepared to meet the requirements of membership by January 2007.