Enlargement Strategy and Main Challenges 2006 - 2007

There has been little change in the situation as regards children's rights. Implementation of
legal provisions concerning education and employment under the age of fifteen needs to be
improved.
On trade unions' rights there was no legislative progress. Turkey does not yet meet EU and
ILO (International Labour Organisation) standards, in particular as regards the right to strike
and the right of collective bargaining.
Turkey's approach to minority rights remains restrictive. Turkey did not ratify the
international legal instruments on minority rights. As regards cultural rights, limited
broadcasting is allowed in languages other than Turkish. Restrictions on learning such
languages are maintained for the public schooling system. All private establishments offering
courses in Kurdish language closed down in August 2005. General restrictions on the use of
languages other than Turkish remain tight both in political life and when accessing public
services.
Turkey has been the subject of increased terrorist attacks, in particular from the PKK, which
is on the EU list of terrorist organisations. The EU has strongly condemned these terrorist
acts.
There is a need for Turkey to address the serious economic and social problems of the South
East and ensure full enjoyment of rights and freedoms by the Kurdish population. The large
numbers of internally displaced persons continues to cause concern.
With regard to regional issues and international obligations, Turkey has expressed
continued support for UN efforts to find a comprehensive settlement of the Cyprus problem.
However, there has been no progress towards normalisation of bilateral relations with the
Republic of Cyprus. Since signing the Additional Protocol to the Association Agreement in
July 2005 Turkey has not moved towards its full implementation and the removal of all
obstacles to the free movement of goods, including restrictions on direct transport links with
Cyprus. At its June 2006 meeting, the European Council recalled that the Council would
review implementation of the Additional Protocol in the course of 2006 and ensure follow-up
to the issues included in the EU declaration of 21 September 2005.
Relations with Greece have evolved positively but no progress has been made in resolving the
outstanding border dispute. At a meeting of Foreign Ministers of the two countries a new
package of confidence-building measures was agreed. Good neighbourly relations remain
key.
As regards economic criteria, Turkey can be regarded as a functioning market economy, as
long as it firmly maintains its recent stabilisation and reform achievements. Turkey should
also be able to cope with competitive pressure and market forces within the Union in the
medium term, provided that it firmly maintains its stabilisation policy and takes further
decisive steps towards structural reforms.
The consensus on the essentials of a market-based economy has remained broadly intact.
Stability-oriented macroeconomic policies have contributed to strong economic growth and
growing resilience to shocks. Budget deficits and government debt levels have been
significantly reduced and some key measures have been taken to enhance the social security
system. The independence of regulatory and surveillance agencies has been confirmed and
special privileges of state-owned banks are being phased out. The privatisation process has
gained momentum. The banking and non-banking financial sectors have continued to deepen,
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