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Following on from the guidelines already drawn up by the European Councils in Lisbon (June 1992), Corfu (June 1994) and Essen (December 1994) and the Commission proposals, the European Union (EU) decided to establish a new framework for its relations with the countries of the Mediterranean basis with a view to forming a partnership. This partnership became a reality at the Barcelona Conference of 27 and 28 November 1995, which brought together the Ministers for Foreign Affairs of the 15 EU Member States and the following 12 Mediterranean non-member countries (MNCs): Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey. The League of Arab States and the Arab Maghreb Union (AMU) were also invited, as was Mauritania (as a member of the UMA).

This Conference laid the foundations of a process designed to build a multilateral framework for dialogue and cooperation between the EU and its Mediterranean partners. At the meeting, a Declaration and a work programme were unanimously adopted by the 27 participating countries. This Euro-Mediterranean Declaration establishes a multilateral framework bringing together economic and security aspects and also comprises a social, human and cultural dimension.

In the preamble, the participants affirm their desire to go beyond the traditional bilateralism that has long characterised Euro-Mediterranean relations and to give these relations a new dimension, based on comprehensive cooperation and solidarity. This lasting multilateral framework is based on a spirit of partnership, with due regard for the characteristics peculiar to each of the participants. The new multilateral framework is also the counterpart to a strengthening of bilateral relations.

The Euro-Mediterranean partnership is not intended to replace the other activities and initiatives undertaken in the interests of the peace, stability and development of the region. The participants support the realisation of a just, comprehensive and lasting peace settlement in the Middle East based on the relevant United Nations Security Council resolutions and principles mentioned in the letter of invitation to the Madrid Middle East Peace Conference, including the land for peace principle.

The new, comprehensive Euro-Mediterranean partnership focuses on three key aspects:

• the political and security aspect aims to establish a common area of peace and stability;
• the economic and financial aspect hopes to allow the creation of an area of shared prosperity;
• the social, cultural and human aspect aims to develop human resources and promote understanding between cultures and exchanges between civil societies.

Political and security partnership

The participants in the Barcelona Conference decided to establish comprehensive, regular political dialogue to complement the bilateral dialogue provided for in the association agreements. In addition, the Declaration sets out a number of common objectives in matters of internal and external stability. The parties undertook to act in accordance with the United Nations Charter and the Universal Declaration of Human Rights as well as other obligations under international law, in particular those arising out of regional and international instruments. Respect for human rights and fundamental freedoms (including freedom of expression, freedom of association and freedom of thought, conscience and religion) is reaffirmed on several occasions. The Declaration stipulates that it is important to give favourable consideration, through dialogue between the parties, to exchanges of information on matters relating to human rights, fundamental freedoms, racism and xenophobia.

The parties agree to develop the rule of law and democracy in their political systems, while recognising in this framework the right of each of them to choose and freely develop its own political, socio-cultural, economic and judicial system.

The signatories also undertake to respect their sovereign equality and the equal rights of peoples and their right to self-determination. Respect for territorial integrity, the principles of non-intervention in the internal affairs of another partner and the peaceful settlement of disputes were highlighted as key elements of the relations between the Conference participants.

The parties also agreed to combat terrorism and organised crime and to combat the drugs problem in all its aspects.

Moreover, the participants undertook to promote regional security and to work to prevent the proliferation of nuclear, chemical and biological weapons through adherence to and compliance with international and regional non-proliferation regimes and the various arms control and disarmament agreements. The parties will also pursue a Middle East zone free of weapons of mass destruction.

Economic and financial partnership

The creation of an area of shared prosperity in the Mediterranean requires sustainable and balanced socio-economic development and an improvement of the living conditions of the populations, an increase in the employment level and the encouragement of regional cooperation and integration. With a view to achieving these objectives, the EU and its partners agreed to establish an economic and financial partnership based on:

• the progressive establishment of a free trade area;
• the implementation of appropriate economic cooperation and concerted action in the relevant areas;
• a substantial increase in the European Union's financial assistance to its partners.

The free trade area (FTA) is to be set up by means of the new Euro­Mediterranean agreements and free trade agreements to be concluded between the MNCs themselves. The parties have set 2010 as the target date for the gradual establishment of this area which will cover most trade in compliance with the World Trade Organisation (WTO) obligations. Tariff and non­tariff barriers to trade in manufactured products will be progressively eliminated in accordance with timetables to be negotiated between the partners. Trade in agricultural products will be liberalised in stages, as will trade in services.

To facilitate the establishment of the Euro-Mediterranean FTA, the EU and MNCs defined four priority areas:

• the adoption of suitable measures as regards rules of origin (progressive introduction of cumulation of origin), certification, protection of intellectual and industrial property rights, and competition;
• the pursuit and the development of policies based on the principles of market economy and the integration of their economies taking into account their respective needs and levels of development;
• the adjustment and modernisation of economic and social structures, giving priority to the promotion and development of the private sector, the upgrading of the productive sector and the establishment of an appropriate institutional and regulatory framework for a market economy. They will likewise endeavour to mitigate the negative social consequences which may result from this adjustment, by promoting programmes for the benefit of the neediest populations;
• the promotion of mechanisms to foster transfers of technology.

The work programme sets out some practical measures designed to promote free trade, such as the harmonisation of customs rules and procedures, the harmonisation of standards and the elimination of unwarranted technical barriers to trade in agricultural products.

The increase in economic cooperation and concerted action between the EU and the MNCs relates primarily to a number of important areas:

• investment and internal savings: MNCs must progressively eliminate obstacles to direct foreign investment and encourage internal savings in order to support economic development. The creation of an environment conducive to investment could, according to the Declaration, lead to the transfer of technology and increase production and exports. The work programme highlights the importance of giving greater thought to the definition of these obstacles to investment and to means, including in the banking sector, of promoting such investment;
• regional cooperation as a key factor in promoting the creation of an FTA;
• industrial cooperation and support for small and medium-sized enterprises (SMEs);
• stepping up environmental cooperation;
• promoting the role of women in development;
• creating joint instruments for the conservation and rational management of fish stocks;
• developing dialogue and cooperation in the energy sector;
• developing cooperation in the area of water resource management;
• modernising and restructuring agriculture.