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13- SOCIAL POLICY AND EMPLOYMENT


Since the publication of the first National Programme, legislation promulgated in the field of Social Policy and Employment is as follows,
- Law No. 4641 on the Establishment and Functioning of the Economic and Social Council (Official Gazette Date: 21 April 2001 and Number: 24380)
- Law No. 4688 on Trade Union for Public Servants (Official Gazette Date: 12 July 2001 and Number: 24460)
- Law No. 4771 Repealing the Temporary Article 1 of Law no 3218 on Free Trade Zones (Official Gazette Date: 9 August 2002 and Number: 24841)
- Law No. 4747 on the Adjournment of Some Fringe Spending for the Promotion of Employment and amending Law on Social Insurance, Law on Social Security for Artisans, Merchants and Other Self Employed Persons and Law on Amendment of Decree Law No.631. (Official Gazette Date: 1 April 2002 and Number: 24713
- Law No. 4759 amending Law on Social Insurance, Law on Social Insurance for Agricultural Workers, Law on Civil Servants Retirement Fund, Law on Social Security Agency for Artisans, Merchants and Other Self Employed Persons and Law on Social Insurance for Agricultural Workers Working on Their Own Behalf (Official Gazette Date: 1 June 2002 and Number: 24772)
- Law No. 4632 on Individual Pensions Funds (Official Gazette Date: 7 April 2001 and Number: 24366)
- Labour Law No. 4857 (Official Gazette Date: 10 June 2003 and Number: 25134
- Law on the Turkish Employment Organisation No. 4904 (Official Gazette Date: 5 July 2003 and Number: 25159)
I- PRIORITY LIST
PRIORITY 13.1 Harmonisation of Turkish Labour Law with EU Legislation
Task 13.1.1 Individual and Collective Labour Law
Task 13.1.2 Health and Safety at Work
Task 13.1.3 Social Dialogue
Task 13.1.4 Equality of Treatment Between Men and Women
Task 13.1.5 Combating Discrimination
PRIORITY 13.2 Alignment with EU Acquis in the Field of Public Health and Participation in the Community Action Programme in the field of Public Health
Task 13.2.1 Participation in the Network for the Epidemiological Surveillance and Control of Communicable Diseases
Task 13.2.2 Participation in the Community Action Programme in the Field of Public Health (2003-2008)
PRIORITY 13.3 Development of Social Protection and Social Inclusion
Task 13.3.1 Development of the Social Security System
Task 13.3.2 Improvement of Social Benefits
PRIORITY 13.4 Development of a National Employment Plan Consistent with the European Employment Strategy
PRIORITY 13.5 Strengthening the Administrative Capacity of the Ministry of Labour and Social Security and Participation in European Social Fund and Dublin Foundation
II- MEASURES FOR HARMONISATION WITH THE EU LEGISLATION AND IMPLEMENTATION
PRIORITY 13.1 Harmonisation of Turkish Labour Law with the EU Legislation
1- Priority Description
Task 13.1.1 Individual and Collective Labour Law
Individual and Collective Labour Law is one of the issues which was given emphasis in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey. In this context, the Accession Partnership envisages adoption of a programme in the short term, and transposition and implementation of EU legislation in the field of Social Policy and Employment, in the medium term.
Generally speaking, there exist some differences between individual and collective labour law in Turkey and EU legislation. These differences must be removed. Another issue is amending the rigid provisions of the Labour Law, it in order to provide competitiveness in international markets.
Furthermore in the Urgent Action Plan prepared by the 58th Government;
- Legislative Amendments regulating flexible working patterns
- Necessary measures to prevent child labour
are envisaged to be regulated.
The Labour Law adopts the entire provisions of Council Directives 80/987/EEC, 2002/74/EC and 91/383/EEC and relevant provisions of Council Directive 94/33/EC. Details on the provisions of these Directives will be regulated with implementing regulations, which will be issued within 6 months following the adoption of the Labour Law. The schedule for the completion of the adoption of 98/59/EC, 2001/23/EC, 91/533/EEC, 97/81/EC, 93/104/EC and 99/70/EC, which are partially adopted with the Labour Law, is given in the Table 13.1.1
Task 13.1.2 Health and Safety at Work
In the field of health and safety at work, the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey states that the adoption of a programme for the transposition of the relevant EU legislation shall be completed in the short term, while transposition and implementation of the legislation is put forward as a medium term priority.
The implementation of the health and safety legislation also constitutes one of the important aspects of the adoption of the legislation in the field of EU Social Policy. Therefore, strengthening of the inspection systems by labour inspectors is put forward as an administrative measure within the medium term priorities of the same chapter in Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
Turkey is currently participating in the European Agency for Health and Safety at Work defined in Council Regulations 2062/94 and 1643/95. In addition, participation in the Committee for the Senior Labour Inspectors, mentioned in the Commission Decision 319/95, with observer status will be offered
Task 13.1.3 Social Dialogue
The Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey designates as a short term issue, provision of conditions for an active and autonomous social dialogue, including the abolition of restrictive provisions on trade union activities and ensuring the that trade union rights are respected. In the medium term, effective implementation is required.
Social Dialogue is handled carefully, through the commitments of Turkey within the context of both the European Union and the International Labour Organisation (ILO). Strengthening the capacities of social partners should also be given emphasis. In order to meet this requirement, which is referred in general terms in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey in terms of “put in place conditions for an active and autonomous social dialogue,” and is specifically referred to in the 2002 Progress Report and Strategy Paper in terms of “strengthening the administrative capacity of social partners,” social dialogue meetings have been held by the EU Coordination Department of Ministry of Labour and Social Security with the representatives of employees and employers since 2002, except in June and September.
In addition, the Implementing Regulation on Working Principles and Procedures of the Economic and Social Council, having an important role in the process of setting up economic and social policies and providing social agreement and cooperation, was published in the Official Gazette No. 24487 dated 8 August 2001. The Working Committee on Working Life and Employment, which is one of the 14 working committees 1) created to conduct research, give opinions, and to prepare reports on subjects within the responsibilities of the Economic and Social Council, started its activities with its first meeting on 9 July 2003.
Task 13.1.4 Equality of Treatment Between Men and Women
In the field of equality of treatment between men and women, the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey envisages the adoption of a program for the transposition of relevant EU legislation in the short term, and transposition and implementation of relevant EU legislation in the medium term. In addition, Turkey’s participation in the Community Programme on Gender Equality, was made possible by the Decision of the Council of Ministers No. 2003/5224, published in the Official Gazette No.25027 on 21 February 2003,.
In addition to the legal alignment, implementation and inspection, equality of treatment also includes informing all the relevant parties, especially NGO’s. To that end, the Community Programme on Gender Equality, under the responsibility of the Department of EU Coordination within the Ministry of Labour and Social Security, has an important role. Within this context, regular monthly seminars have been held since March 2003 with the participation of relevant parties. These meetings and results of research will be published and will be discussed in an international platform in Bratislava in Autumn 2004.
The transposition of Council Directive 2002/73/EC is completed with the Labour Law. Details of this Council Directive will be regulated by the implementing regulation, which is going to be issued within 6 months of the publication of Labour Law . The Schedule for the completion of the transposition of Council Directives 75/117/EEC, 76/207/EEC and 97/80/EC is given in Table 13.1.1
Task 13.1.5 Combating Discrimination
The Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey envisages the adoption of a programme in the short term for the transposition of relevant EU legislation in the field of combating discrimination. The legislation is expected to be transposed and implemented in the medium term.
The Memorandum of Understanding for the Community Programme on Combating Discrimination, which has been initiated within the context of Council Decision No.2000/750/EC was signed on 25 November 2002. The Memorandum of Understanding was approved by the Decision of Council of Ministers No.2003/5224 on 3 February 2003 and it has been published in the Official Gazette No. 25027 dated 21 February 2003. Turkey is going to participate in the Programme from 1 June 2003. The Department of EU Coordination of the Ministry of Labour and Social Security has been given the responsibility for the execution of the Programme
Council Directives 2000/43/EC and 2000/78/EC are partially adopted by the Labour Law. The schedule for the completion of the adoption of this legislation is given in Table 13.1.1

2- Schedule of Necessary Legislative Changes
Table 13.1.1

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
Task 13.1.1 Individual and Collective Labour Law
1 Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
2 Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
3 Council Directive 91/533/EEC of 14 October 1991 on an employer's obligation to inform employees of the conditions applicable to the contract or employment relationship New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
4 Council Directive 97/81/EC of 15 December 1997 concerning the Framework Agreement on part-time work concluded by UNICE, CEEP and the ETUC - Annex : Framework agreement on part-time work New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
5 Council Directive 93/104/EC of 23 November 1993 concerning certain aspects of the organization of working time New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
6 Council Directive 1999/70/EC of 28 June 1999 concerning the framework agreement on fixed-term work concluded by ETUC, UNICE and CEEP New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
7 Council Directive 2000/79/EC of 27 November 2000 concerning the European Agreement on the Organisation of Working Time of Mobile Workers in Civil Aviation concluded by the Association of European Airlines (AEA), the European Transport Workers' Federation (ETF), the European Cockpit Association (ECA), the European Regions Airline Association (ERA) and the International Air Carrier Association (IACA) Law on Aviation Labour Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
8 Council Directive 94/33/EC of 22 June 1994 on the protection of young people at work Law on Minimum Age of Employment and Procedures for Young People to be Employed Under 18 Years of Age Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
9 Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of working time of seafarers concluded by the European Community Shipowners' Association (ECSA) and the Federation of Transport Workers' Unions in the European Union (FST) - Annex: European Agreement on the organisation of working time of seafarers New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
10 Council Directive 91/383/EEC of 25 June 1991 supplementing the measures to encourage improvements in the safety and health at work of workers with a fixed- duration employment relationship or a temporary employment relationship Implementing Regulation on Occupational Health and Safety at Temporary or Fixed-duration Employment Ministry of Labour and Social Security 31.12.2003 31.12.2003
11 Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services New Legislation Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
Task 13.1.2 Health and Safety at Work
1 Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage improvements in the safety and health of workers at work Implementing Regulation on Occupational Health and Safety Ministry of Labour and Social Security 31.07.2003 2- 31.07.2003
2 Council Directive 89/654/EEC of 30 November 1989 concerning the minimum safety and health requirements for the workplace (first individual directive within the meaning of Article 16 (1) of Directive 89/391/EEC Implementing Regulation on Minimum Health and Safety Requirements at Workplaces Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003

Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
3 Council Directive 89/655/EEC of 30 November 1989 concerning the minimum safety and health requirements for the use of work equipment by workers at work (second individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on the Minimum Safety and Health Requirements for the Use of Work Equipment by Workers at Work Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
4 Council Directive 90/270/EEC of 29 May 1990 on the minimum safety and health requirements for work with display screen equipment (fifth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Precautions for Work With Display Screen Equipment Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
5 Council Directive 89/656/EEC of 30 November 1989 on the minimum health and safety requirements for the use by workers of personal protective equipment at the workplace (third individual directive within the meaning of Article 16 (1) of Directive 89/391/EEC)) Implementing Regulation on the Use of Personal Protective Equipment at Workplaces Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
6 Council Directive 90/394/EEC of 28 June 1990 on the protection of workers from the risks related to exposure to carcinogens at work (Sixth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Precautions Related to Carcinogens and Mutagen Substances at Work Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
7 Council Directive 1999/38/EC of 29 April 1999 amending for the second time Directive 90/394/EEC on the protection of workers from the risks related to exposure to carcinogens at work and extending it to mutagens Implementing Regulation on Health and Safety Precautions Related to Carcinogens and Mutagen Substances at Work Ministry of Labour and Social Security 31.12.2003 2. 31.12.2003



Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
8 Council Directive 97/42/EC of 27 June 1997 amending for the first time Directive 90/394/EEC on the protection of workers from the risks related to exposure to carcinogens at work (Sixth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Precautions Related to Carcinogens and Mutagen Substances at Work Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
9 Council Directive 83/477/EEC of 19 September 1983 on the protection of workers from the risks related to exposure to asbestos at work (second individual Directive within the meaning of Article 8 of Directive 80/1107/EEC) Implementing Regulation on Health and Safety Precautions for Exposure to Asbestos at Work Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
10 Council Directive 86/188/EEC of 12 May 1986 on the protection of workers from the risks related to exposure to noise at work Implementing Regulation on Noise Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
11 Directive 2002/44/EC of the European Parliament and of the Council of 25 June 2002 on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (vibration) (sixteenth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC) - Joint Statement by the European Parliament and the Council Implementing Regulation on Vibration Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
12 Council Directive 93/88/EEC of 12 October 1993 amending Directive 90/679/EEC on the protection of workers from risks related to exposure to biological agents at work (seventh individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on the Prevention of the Risks Related to Exposure to Biological Agents Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
13 Commission Directive 97/59/EC of 7 October 1997 adapting to technical progress Council Directive 90/679/EEC on the protection of workers from risks related to exposure to biological agents at work (seventh individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on the Prevention of the Risks Related to Exposure to Biological Agents Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003

Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
Implementing Regulation on Health and Safety Requirements in Underground Mines and Tunnel Construction Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
Implementing Regulation on Health and Safety Requirements in Surface Mines and Quarries Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
Implementing Regulation on Health and Safety Requirements in Underground Mines and Tunnel Construction Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
Implementing Regulation on Health and Safety Requirements in Surface Mines and Quarries Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
16 Council Directive 93/103/EC of 23 November 1993 concerning the minimum safety and health requirements for work on board fishing vessels (thirteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on the Minimum Health and Safety Requirements for Work on Board Fishing Vessels Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
17 Council Directive 90/269/EEC of 29 May 1990 on the minimum health and safety requirements for the manual handling of loads where there is a risk particularly of back injury to workers (fourth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Manual Handling Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003



Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
18 Council Directive 98/24/EC of 7 April 1998 on the protection of the health and safety of workers from the risks related to chemical agents at work (fourteenth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Precautions for Chemicals at Work Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
19 Directive 2000/54/EC of the European Parliament and of the Council of 18 September 2000 on the protection of workers from risks related to exposure to biological agents at work (seventh individual directive within the meaning of Article 16(1) of Directive 89/391/EEC) Implementing Regulation on the Prevention of the Risks Related to Exposure to Biological Agents Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
20 Council Directive 92/57/EEC of 24 June 1992 on the implementation of minimum safety and health requirements at temporary or mobile construction sites (eighth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Requirements at Construction Sites Ministry of Labour and Social Security 31.12.2003 2- 31.12.2004
21 Council Directive 92/58/EEC of 24 June 1992 on the minimum requirements for the provision of safety and/or health signs at work (ninth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Health and Safety Signs at Workplaces Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
22 Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (tenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) Implementing Regulation on Conditions of health and safety at work of pregnant workers and workers who have recently given birth or are breastfeeding Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
23 Directive 1999/92/EC of the European Parliament and of the Council of 16 December 1999 on minimum requirements for improving the safety and health protection of workers potentially at risk from explosive atmospheres (15th individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC) Implementing Regulation on Protection of Workers From Risks in Explosive Atmospheres Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
24 Council Directive 96/82/EC of 9 December 1996 on the control of major-accident hazards involving dangerous substances Implementing Regulation on the control of industrial accidents Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004

Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
25 Commission Directive 2000/39/EC of 8 June 2000 establishing a first list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC on the protection of the health and safety of workers from the risks related to chemical agents at work Implementing Regulation on Health and Safety Precautions for Chemicals at Work Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
26 Council Directive 96/29/Euratom of 13 May 1996 laying down basic safety standards for the protection of the health of workers and the general public against the dangers arising from ionising radiation Implementing Regulation on Basic Safety Standards for the Protection of the Health of Workers and the General Public Against the Dangers Arising from Ionising Radiation Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
27 Commission Directive 97/65/EC of 26 November 1997 adapting, for the third time, to technical progress Council Directive 90/679/EEC on the protection of workers from risks related to exposure to biological agents at work Implementing Regulation on the Prevention of the Risks Related to Exposure to Biological Agents Ministry of Labour and Social Security 31.12.2003 2- 31.12.2003
28 Council Directive 90/641/Euratom of 4 December 1990 on the operational protection of outside workers exposed to the risk of ionising radiation during their activities in controlled areas Implementing Regulation on the Operational Protection of Outside Workers Exposed to the Risk of Ionising Radiation During Their Activities in Controlled Areas Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004







Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
Directive on the Procedure and Principles of Inspection Ministry of Health 2005, IV. Quarter 2005, IV. Quarter
Directive on Procedure and Principles of the Issue of Medical Certificates Ministry of Health 2005, IV. Quarter 2005, IV. Quarter
Directive on Procedure and Principles of Health Education of Seamen Ministry of Health 2005, IV. Quarter 2005, IV. Quarter
Directive on the Procedure and Principles of Implementation of Tele-Medicine System Ministry of Health 2005, IV. Quarter 2005, IV. Quarter
Task 13.1.3 Social Dialogue
1 Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with regard to the involvement of employees New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
2 Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community - Joint declaration of the European Parliament, the Council and the Commission on employee representation New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
Task 13.1.4 Equality of Treatment Between Men and Women
1 Council Directive 75/117/EEC of 10 February 1975 on the approximation of the laws of the Member States relating to the application of the principle of equal pay for men and women New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004

Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
2 Council Directive 76/207/EEC of 9 February 1976 on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
3 Directive 2002/73/EC of the European Parliament and of the Council of 23 September 2002 amending Council Directive 76/207/EEC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
4 Council Directive 97/80/EC of 15 December 1997 on the burden of proof in cases of discrimination based on sex New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
New Legislation Ministry of Labour and Social Security 31.12.2004 2- 31.12.2004
Law on the Amendment of Civil Servants’ Law, Labour Law, Social Security Law and Republic of Turkey Retirement Fund Law Directorate General for Status and Problems of Women 2004, III. Quarter 31.12.2004
6 Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (tenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC)) Law on the Amendment of Civil Servants’ Law, Labour Law, Social Security Law and Republic of Turkey Retirement Fund Law Directorate General for Status and Problems of Women 2004, III.Quarter 2- 31.12.2004


Table 13.1.1 (Continued)

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
7 Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security Law Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
8 Council Directive 86/613/EEC of 11 December 1986 on the application of the principle of equal treatment between men and women engaged in an activity, including agriculture, in a self-employed capacity, and on the protection of self-employed women during pregnancy and motherhood Law Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
9 Council Directive 86/378/EEC of 24 July 1986 on the implementation of the principle of equal treatment for men and women in occupational social security schemes Law Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
10 Council Directive 96/97/EC of 20 December 1996 amending Directive 86/378/EEC on the implementation of the principle of equal treatment for men and women in occupational social security schemes Law Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
Task 13.1.5 Combating Discrimination
1 Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004
2 Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation New Legislation Ministry of Labour and Social Security 2004, III. Quarter 1- 31.12.2004
2- 31.12.2004


3- Schedule of Necessary Institutional Changes
Table 13.1.2

No Necessary Institutional Changes Period of Implementation
Task 13.1.1 Individual and Collective Labour Law (Ministry of Labour and Social Security)
1 Recruitment of 10 new personnel for the Directorate General of Labour and strengthening the infrastructure 2004-2005
2 Provision of equipment to the Directorate General of Labour 2004-2005
3 Establishment of a Commission for harmonisation of legislation 2004
4 Training of members of the Commission for harmonisation of legislation 2004-2005
Task 13.1.2 Health and Safety at Work (Ministry of Labour and Social Security)
1 Recruitment of 100 labour inspectors and 15 personnel for regional and mobile laboratories in order to increase the administrative capacity 2004-2005
2 Training of 700 labour inspectors 2004-2005
3 Establishment of regional and mobile laboratories in order to ensure the implementation of the adopted legislation in the field of health and safety at work 2004-2005
4 Establishment of a Commission for harmonisation of legislation 2004
5 Training of members of the Commission for harmonisation of legislation 2004
6 Training of social partners on the harmonised legislation 2004-2005
Task 13.1.2 Health and Safety at Work (Ministry of Health)
1 Establishment of regional tele-medicine services in order to ensure the efficient implementation of the Implementing Regulation adopting Council Directive 92/29/EEC. 2005, IV. Quarter
2 Recruitment of personnel to be employed in tele-medicine services 2005, IV. Quarter
3 Training of personnel employed in the tele-medicine services 2005, IV. Quarter
Table 13.1.2

No Necessary Institutional Changes Period of Implementation
4 Provision of equipment for the tele-medicine services 2005, IV. Quarter
5 Administrative regulations for the training of inspectors and trainers who will determine the main training standards for medical and emergency measures 2005, IV. Quarter
Task 13.1.3 Social Dialogue (Ministry of Labour and Social Security)
1 Training of the Personnel 2004-2005
2 Training of the social partners on harmonised legislation 2005
Task 13.1.4 Equality of Treatment Between Men and Women (Ministry of Labour and Social Security)
1 Strengthening the institutional structure in order to ensure participation in Community Programme on gender equality and efficient implementation 2003 - 2006
2 Establishment of a Commission for harmonisation of legislation 2005
3 Training of members of the Commission for harmonisation of legislation 2005
4 Training of the social partners on harmonised legislation 2005
Task 13.1.4 Equality of Treatment Between Men and Women (Directorate General for Status and Problems of Women)
1 Strengthening the institutional and legal base of the Directorate General for the Status and Problems of Women 2004
2 Establishment of a Law Department in the Directorate General for Status and Problems of Women 2004
Task 13.1.5 Combating Discrimination (Ministry of Labour and Social Security)
1 Recruitment of 10 personnel in order to establish the preliminary structure of the Equality Body within the Directorate General of Labour 2005
2 Participation in the Community Programme on Combating Discrimination 2003 – 2006
3 Training of members of the Commission for harmonisation of legislation 2005
4- Financing Requirements and Sources of Financing
Table 13.1.3 (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.1 Individual and Collective Labour Law (Ministry of Labour and Social Security)
I-Investment
10 units computers, monitors, printers, tables, chairs etc.
2004
11,000
11,000
II- Harmonisation with the EU Legislation and Implementation

2004 68,000 68,000
2005 68,000 68,000

2004 17,000 20,000 37,000
2005 17,000 20,000 37,000

2004 5,000 5,000
2005 20,000 20,000
2004 15,000 15,000
2005 15,000 15,000
Other 2005
2004 111,000 25,000 136,000
2005 85,000 55,000 140,000



Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.2 Health and Safety at Work (Ministry of Labour and Social Security)
I- Investment
Recruitment of office equipment for 100 inspector, generalizing the regional and mobile occupational health and safety laboratories 2004 10,460,000 31,380,000 41 840 000
Upgrading the ISGUM (The Project No. TR.02.03.01 is under the 2002 Programming of the Pre-Accession Financial Assistance) 2003 – 2005 1,160,000 3,500,000 4,660,000
II- Harmonisation with the EU Legislation and Implementation
Personnel
Salary of the 100 Inspectors and 15 personnel
2005
2,000,000
2,000,000

2004 210,000 230,000 440,000
2005 210,000 230,000 440,000

2004 50,000 50,000
2005 150,000 150,000

2004 10 000 10,000 20,000
2005 20 000 20,000 40,000
Other
Administrative Structuring in the context of Project for Upgrading the ISGUM (The Project No. TR.02.03.01 is under the 2002 Pre-Accession Financial Assistance Programme)
2003 - 2005
3,500,000
3,500,000
Sub Total 2003 - 2005 14,070,000 39,070,000 53,140,000

Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.2 Health and Safety at Work (Ministry of Health)
I- Investment
Setting Up Tele Medicine System
2005
4,251,000
12,752,000
17,003,000
II- Harmonisation with the EU Legislation and Implementation
Personnel
52 doctors, 25 captains, 73 sanitary officers
2004-2005
167,500
167,500
Training
- Training on first and emergency aid
- Training on sea adaptation
- Training on first and emergency aid at sea
- Training on Tele consultation and wired communication
- Language Training 2004 -2005 75,000 225,000 300,000
Consultancy
Translation 2003- 2005 25,000 75,000 100,000
Other
Sub Total 2003-2005 4,518,500 13,052,000 17,570,500




Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.3 Social Dialogue (Ministry of Labour and Social Security)
I- Investment
II- Harmonisation with the EU Legislation and Implementation
Personnel

2004 3,000 23,000 26,000
2005 3,000 23,000 26,000
Consultancy
2 Consultants
2004
15,000
15,000
Translation
Translation of the related EU Legislation (800 pages)
2004
8,000
8,000
Other 2004
2004 3,000 46,000 49,000
2005 3,000 23,000 26,000







Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.4 Equality of Treatment Between Men and Women (Ministry of Labour and Social Security)
I- Investment
II- Harmonisation with the EU Legislation and Implementation
Personnel
Training
Training of 3 persons in Turkey and 3 persons in the EU
2005
1,000
7,000
8,000
Consultancy
2 Consultancy Services
2005
20,000
20,000
Translation
Translation concerning the Equal Treatment For Men and Women (500 pages)
2005
5,000
5,000

2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 10,000 20,000 30,000
2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 11,000 52,000 63,000



Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.1.4 Equality of Treatment Between Men and Women (Directorate General for Status and Problems of Women)
I- Investment
II- Harmonisation with the EU Legislation and Implementation
Personnel
Salaries of 2 Legal Advisers for the Law Department in the Directorate General for Status and Problems of Women
2004
16,000
16,000
Training
Consultancy
Translation
Other
Sub Total 2004 16,000 16,000
Task 13.1.5 Combating Discrimination (Ministry of Labour and Social Security)
I- Investment
Recruitment of office equipment for 10 personnel 2005 11,000 11,000
II- Harmonisation with the EU Legislation and Implementation
Personnel
Recruitment of 10 personnel
2005
40,000
40,000
Training
Training of the 5 personnel in Turkey and 5 personnel in EU member states
2005
2,000
11500
13,500
Table 13.1.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Consultancy
2 consultancy services
2005
20,000
20,000
Translation
Translation of the legislation concerning discrimination (500 pages)
2005
5,000
5,000

2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 10,000 20,000 30,000
2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 63,000 56,500 119.500

PRIORITY 13.2 Alignment with EU Acquis in the Field of Public Health and Participation in the Programme of Community Action in the field of Public Health
1- Priority Description:
Task 13.2.1 Participation in the Network for the Epidemiological Surveillance and Control of Communicable Diseases
One of the main systems for the protection of public health is surveillance and control of communicable diseases. Harmonizing the current list of communicable diseases for which notification is compulsory with the that of European Union and strengthening the surveillance and control system in this field is deemed necessary.
Task 13.2.2 Participation in the Programme of Community Action in the Field of Public Health (2003-2008)
In order to follow the EU policies and implementation and to provide integration in the field of health, participation in the relevant Community Programme is essential. The Memorandum of Understanding for the Community Programme, which was initiated within the framework of Council Decision No. 1786/2002/EC has been signed and was published in the Official Gazette No. 25053, dated 19 March 2003.
2- Schedule of Necessary Legislative Changes
Table13.2.1

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
Task 13.2.1 Participation in the Network for the Epidemiological Surveillance and Control of Communicable Diseases
1 Decision No 2119/98/EC of the European Parliament and of the Council of 24 September 1998 setting up a network for the epidemiological surveillance and control of communicable diseases in the Community
2 2000/57/EC: Commission Decision of 22 December 1999 on the early warning and response system for the prevention and control of communicable diseases under Decision No 2119/98/EC of the European Parliament and of the Council
3 2000/96/EC: Commission Decision of 22 December 1999 on the communicable diseases to be progressively covered by the Community network under Decision No 2119/98/EC of the European Parliament and of the Council
4 2002/253/EC: Commission Decision of 19 March 2002 laying down case definitions for reporting communicable diseases to the Community network under Decision No 2119/98/EC of the European Parliament and of the Council
5 Directive 2001/37/EC of the European Parliament and of the Council of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products - Commission statement Implementing Regulation on the Procedure and Principles Concerning the Manufacturing, Labelling and Inspection of Tobacco Products to Prevent Harms associated with the Tobacco Products Tobacco, Tobacco Products and Alcoholic Beverages Market Regulatory Authority 2003, III. Quarter 2003, III. Quarter

3- Schedule of Necessary Institutional Changes
Table 13.2.2

No Necessary Institutional Changes Period of Implementation
Task 13.2.1 Participation in the Network for the Epidemiological Surveillance and Control of Communicable Diseases (Ministry of Health)
1 Strengthening the surveillance and control system for communicable diseases, institutional regulations in order to participate in EU network, training and interpretation 2004-2005
Task 13.2.2 Participation in the Programme of Community Action in the Field of Public Health (2003-2008) (Ministry of Health)
1 Participation in the Programme of Community Action in the Field of Public Health 2004-2005
4- Financing Requirements and Sources of Financing
Table 13.2.3 (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.2.1 Participation in the Network for the Epidemiological Surveillance and Control of Communicable Diseases (Ministry of Health)
I – Investment
(Recruitment of PC and Office Equipment) 2004-2005 500,000 2,000,000 2,500,000
II- Harmonisation with the EU Legislation and Implementation
Personnel
Training 2004 -2005 250,000 750,000 1,000,000
Consultancy 2005 2,500 7,500 10,000
Translation 2005 2,500 7,500 10,000
Other
Sub Total 2004-2005 755,000 2,765,000 3,520,000
Table 13.2.3 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.2.2 Participation in the Programme of Community Action in the Field of Public Health (2003-2008) (Ministry of Health)
I- Investment
II- Harmonisation with the EU Legislation and Implementation
Personnel
Training
Consultancy
Translation

2003 5,000 952,697 957,697
2004 100,000 857,428 957,428
Sub Total 2003-2004 105,000 1,810,125 1,915,125

PRIORITY 13.3 Development of Social Protection and Social Inclusion
1- Priority Description
Task 13.3.1 Upgrading the Social Security System
The Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey envisages development of the social security system and improvement of the financial structure of social security institutions
The Memorandum of Understanding for the participation in the Community Programme on combating social exclusion, which was initiated within the framework of the Council Decision No. 50/2002/EC, was signed on 25 November 2002. The Memorandum of Understanding was approved by the Decision of Council of Ministers on 3 February 2003 and published in the Official Gazette No. 25027 dated 21 February 2003.
Moreover, the Urgent Action Plan prepared by the 58th Government has envisaged;
- The separation of supply and financing of health services,
- Establishment of a general health insurance system,
- To provide unity among norms and standards in social security institutions,
- Establishment of an integrated social security network,
- Separating the long term and short term insurance programmes,
- Abolishing non premium benefits.
Task 13.3.2 Improvement of Social Benefits
Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey envisages further development of social protection in the medium term.
Participation in the Community Programme to combat social exclusion was approved by the Decision of Council of Ministers No. 2003/5224, which was published in the Official Gazette No. 25027 dated 21 February 2003. One of the main titles of the Programme is social benefits.
Not only Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey, but also the Urgent Action Plan of the 58th Government has envisaged the establishment of an integrated social service network and relevant administrative structure.
Participation in the Liaison Group for Elderly People, which takes place in Commission Decisions 93/417/EEC and 91/544/EEC will be provided with the observer status. The Social Protection Committee covered by Council Decision No. 2000/446/EC will be evaluated within the context of the Community Programme on combating social exclusion.
Moreover, Project on Social Risk Mitigation, continuing with a US $ 500 million loan provided from the World Bank, has targeted improvement of the institutional capacity of the Social Services and Child Protection Institution (SSCPI), the Fund on Promotion of Social Aid and Solidarity (FPSAS), and the State Institute of Statistics (SIS). Within the Project, US $ 36 million of the loan is allocated for the strengthening institutional capacity in the field of social services and benefits, including the establishment of a database.
2- Schedule of Necessary Legislative Changes
Legislative Changes are not foreseen for this task
3- Schedule of Necessary Institutional Changes
Table 13.3.1

No Necessary Institutional Changes Period of Implementation
Task 13.3.1 Upgrading the Social Security System (Ministry of Labour and Social Security)
1 Recruitment of new personnel for SSK, BAG-KUR and Retirement Fund in order to execute the social insurance programmes after the restructuring of the social security system 2004
2 Training of the new personnel 2005
Table 13.3.1 (Continued)

No Necessary Institutional Changes Period of Implementation
3 Strengthening the integrated social security infrastructure in order to enable automation 2005
4 Participation in the Community Programme on combating social exclusion 2003 - 2005
Task 13.3.2 Improvement of the Social Benefits (SSCPI, FPSAS and SSI)
1 Strengthening of the institutional capacity in the field of social services and benefits 2001-2006
4- Financing Requirements and Sources of Financing
Table 13.3.2 (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Task 13.3.1 Upgrading the Social Security System (Ministry of Labour and Social Security)
I. Investment
- Office Equipment for 300 Personnel
- Setting up a database and strengthening infrastructure in order to enable automation of the works 2005 10,600,000 30,000,000 40,600,000
II- Harmonisation with the EU Legislation and Implementation
Personnel
Salaries of 300 personnel
2005
2,050,000
2,050,000
Training
Training of the 20 personnel in Turkey and 20 personnel in EU Member States
2005
6,000
46,000
52,000
Consultancy
(3 ) expert , (1) organization of a seminar
2005
15,000
15,000

Table 13.3.2 (Continued) (Euro)

Requirements Year National Budget EU Resources Other Resources Total
Translation 2005 3,000 3,000

2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 10,000 20,000 30,000
2003 10,000 20,000 30,000
2004 10,000 20,000 30,000
2005 12,669,000 30,081,000 42,750,000

PRIORITY 13.4 Development of a National Employment Plan Consistent with the European Employment Strategy
1- Priority Description
The European Employment Strategy, which is one of the priority issues in the period of EU accession, has been given emphasis in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
The Development of a national employment plan consistent with the European Employment Strategy as indicated in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey will provide new options in solving unemployment problems.
The Memorandum of Understanding for the Community Programme on incentive measures in the field of employment, launched within the context of the Decision No.1145/2002/EC of the European Parliament and the Council, was signed on 25 November 2002. The Memorandum of Understanding was approved by the Decision of the Council of Ministers No. 2003/5224 on 3 February 2003 and published in the Official Gazette No. 25027 dated 21 February 2003.
Moreover, the Urgent Action Plan prepared by the 58th Government envisages;
- Efficient planning of human resources,
- Short term training and counselling services in order to improve the quality of human resources,
- Preventing unregistered employment and illegal foreign workers.
The Law on Turkish Employment Organisation No. 4904 has been published in the Official Gazette No. 25159 dated 5 July 2003.
2- Schedule of Necessary Legislative Changes
Legislative Changes are not foreseen for this priority.
3- Schedule of Necessary Institutional Changes
Table 13.4.1

No Necessary Institutional Changes (Ministry of Labour and Social Security – Turkish Employment Organisation) Period of Implementation
1 Provision of infrastructure requirements of Turkish Employment Organisation 2003 - 2004 - 2005
2 Training of the new personnel 2003 - 2004 - 2005
3 Implementation of the Active Employment Measures Project and Preparation of a Joint Assessment Paper within the context of the Joint Employment Review and National Employment Action Plans which were put forward by the Luxembourg European Council,
- Determination of Commission experts and Turkish experts to work on the Joint Assessment Paper
- Determination of Personnel Strategy for the Project
- The implementation of activities defined in the “Institutional Building” part of the Project with the support of consultant firm
- Modernisation of ISKUR Offices within the context of the Project
- Implementation of the activities given in the “active employment measures” part of the project with the support of consultant firm and CFCU
- Starting the procedures for the signing of the Joint Assessment Paper by the Commission
- Signing of the Joint Assessment Paper by the Commission 2003 - 2004 - 2005

July 2003
May 2003
Oct. 2003 – Nov. 2005
Nov. 2003 – Oct. 2005
March 2004 – Nov. 2005

April 2004
May 2004
4- Financing Requirements and Sources of Financing
Table 13.4.2 (Euro)

Requirements Year National Budget EU Resourcesa) Other Resources Total

2004 1,000,000 a) 3,000,000 4,000,000
2005 1,000,000 a) 3,000,000 4,000,000
Table 13.4.2 (Continued) (Euro)

Requirements Year National Budget EU Resourcesa) Other Resources Total
II- Harmonisation with the EU Legislation and Implementation

2003 855,000 855,000
2004 2,565,000 2,565,000
2005 3,420,000 3,420,000


2003 40,000 100,000 140,000
2004 80,000 800,000 880,000
2005 80,000 100,000 180,000
2003 1,000,000 1,000,000
2004 4,000,000 4,000,000
2005 4,000,000 4,000,000

2004 5,000 5,000
2005 5,000 5,000

2003 10,000 25,000 35,000
2004 31,000 234,000 265,000
2005 57,000 208,000 265,000
2003 905,000 1,125,000 2,030,000
2004 3,681,000 8,034,000 11,715,000
2005 4,562,000 7,308,000 11,870,000
a) (Project No. TR.02.05.01 is under the 2002 Pre-Accession Financial Assistance Programme)

PRIORITY 13.5 Strengthening the Administrative Capacity of the Ministry of Labour and Social Security for EU Alignment and Participation in the European Social Fund and Dublin Foundation
1- Priority Description
In the short-term priorities of the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey, it was indicated that social partners’ capacity building efforts must be supported. In the medium term, strengthening of the administrative structures is put forward as a priority.
The Ministry of Labour and Social Security, in addition to adoption of EU legislation in the field of Social Policy and Employment, will also be responsible for observing meetings of the European Social Fund, the Dublin Foundation, and several committees in the field of Social Dialogue and Health and Safety at Work. In order to follow the meetings of those committees and to be ready for the administrative regulations envisaged upon accession, it is essential to strengthen the administrative capacity of the Department of EU Coordination under the Ministry of Labour and Social Security. Within this context, it will be necessary to restructure this department as a Directorate General. In this way, it will be possible to support the units of the Ministry for in-service training and seminars as well as to participate effectively in Community programmes in the field of equal treatment, anti-discrimination, and combating social exclusion.
2- Schedule of Necessary Legislative Changes
Table 13.5.1

No Title and Number of EU Legislation Title of Draft Turkish Legislation Responsible Institution Proposed Date of the Approval of the Minister/Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into force
Law on institutional structuring Ministry of Labour and Social Security 2003, III. Quarter 1. 31.12.2003
2. 31.12.2003
Administrative Regulation to ensure participation with observer status Ministry of Labour and Social Security 1. 31.01.2004 2. 31.01.2004
3- Schedule of Necessary Institutional Changes
Table 13.5.2

No Necessary Institutional Changes (Ministry of Labour and Social Security) Period of Implementation
1 Restructuring the Department of EU Coordination as a Directorate General 2003
2 Recruitment of 30 new personnel 2004
3 Training of new personnel 2004
4- Financing Requirements
Table 13.5.3 (Euro)

Requirements Year National Budget EU Resources Other Resources Total
I-Investment
Recruitment of office equipment for 30 personnel
2004
46.000
46.000
II- Harmonisation with the EU Legislation and Implementation

2004 165,000 165,000
2005 165,000 165,000

2004 8,500 16,000 24,500
2005 8,500 16,000 24,500

2004 20,000 20,000
2005 20,000 20,000
2004 10,000 10,000
2005 10,000 10,000
2004
2005
2004 219,500 46,000 265,500
2005 173,500 46,000 219,500





14- ENERGY


The Electricity Market Law No. 4628, dated 20 February 2001, which is in conformity with Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity, was promulgated on 3 March 2001 (Official Gazette No. 24335 dated 3.3.2001).
The Natural Gas Market Law No. 4646, which is in conformity with Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas was promulgated on 2 May 2001(Official Gazette No. 24390 dated 2.5.2001).
See Annex 14.1, Annex 14.2 and Annex 14.3 for secondary legislation adopted in the field of energy.
I- PRIORITY LIST
PRIORITY 14.1 Full alignment with the internal energy market
Task 14.1.1 Ensure independence and effective functioning of the regulatory authority for the electricity and gas sectors; grant the authority the means to carry out its tasks effectively
Task 14.1.2 Remove restrictions on the cross-border trade in energy
Task 14.1.3 Ensure the establishment of a competitive internal energy market, in compliance with the electricity and gas directives
PRIORITY 14.2 Establish a programme for the adoption of the energy acquis, particularly that concerning issues other than the internal market
Task 14.2.1 Harmonization with EU legislation imposing an obligation to maintain minimum stocks in crude oil and petroleum products
Task 14.2.2 Harmonization with EU legislation in the field of energy efficiency
Task 14.2.3 Establish a programme to increase the share of energy produced from renewable sources
Task 14.2.4 Harmonization with EU legislation in the field of nuclear energy
PRIORITY 14.3 Promote the implementation of projects in Turkey listed as projects of common interest in the European Community TEN-Energy Guidelines
II- MEASURES FOR HARMONISATION WITH THE EU LEGISLATION AND IMPLEMENTATION
PRIORITY 14.1 Full alignment with the internal energy market
Task 14.1.1 Ensure independence and effective functioning of the regulatory authority for the electricity and gas sectors; grant the authority the means to carry out its tasks effectively
1- Priority Description
Ensuring the independent and effective functioning of the regulatory authority and granting the authority the means to carry out its tasks effectively is a short term requirement of the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
The Energy Market Regulatory Authority (EMRA), which is responsible for the regulation and supervision of the electricity market and the natural gas market according to the rules set by the Electricity Market Law and the Natural Gas Market Law respectively, has started functioning as of 19 November 2001. The President and the board members of the Energy Market Regulatory Board have been appointed with the Council of Ministers’ Decision No. 2001/3168 dated 6 June 2001, published in the Official Gazette No. 24571, dated 2 November 2001.
EMRA currently has a staff of 270. The Board appointed by a Decree for six years, has seven members including the President and Vice-president. The Board members may be reappointed and may not be dismissed from office before the expiry of their terms of office, except in cases where, through a court decision, it is confirmed that the President or the members of the Board have violated the prohibitions set forth in the Law, or have committed a crime in connection with the duties assigned to them by the Law whereby, a Board member’s eligibility to be a civil servant pursuant to Law No. 657 is lost, or in cases where a Board member is incapacitated for a period exceeding three months due to illness, accident or otherwise, or in cases where a Board member’s inability to continue to fulfil his/her duties for the remaining term of office has been documented by a committee report obtained from a fully equipped hospital, the Council of Ministers shall remove such a member from the office before the completion of his or her term, without waiting for the above mentioned three-month term.
The Board may not be instructed by any organization. Any lawsuit against the decisions of the Board shall be submitted to the Council of State as the court of first instance.
EMRA is financially and administratively independent. It has its own revenues and its own budget. The Energy Market Regulatory Board approves EMRA’s budget.
EMRA is responsible for issuing licenses which set out the rights and obligations of industry participants, for approving, amending and enforcing performance standards, settling disputes and setting pricing principles, market monitoring, ensuring conformity of market behaviour with the Law and license conditions in order to ensure non-discrimination, effective competition, and the efficient functioning of the market.
EMRA, also has the power and duty to issue all secondary legislation regarding the electricity and natural gas markets pursuant to the Electricity Market Law and Gas Market Law. All regulatory acts issued since the establishment of EMRA are listed in Annex 14.1 and Annex 14.2.
Tariffs regulated by EMRA in the natural gas market include transmission and supervision of conveyance tariff, retail sale tariff, wholesale tariff, connection tariff (charge) and shortage tariff. The regulated tariffs in the electricity market include the transmission tariff (connection, use of system, system operation), distribution tariff (connection, use of system), retail tariff (for non-eligible consumers), and the wholesale tariff of the Turkish Electricity Trading and Contracting Company (TETAS)
2- Schedule of Necessary Legislative Changes
Legislative changes are not foreseen for this priority.
3- Schedule of Necessary Institutional Changes
Institutional changes are not foreseen at this stage for this priority, however there are current and planned projects for strengthening of the administrative structure.

Table 14.1.1.1

No Necessary Institutional Changes – (EMRA) Period of Implementation
1 Implementation of the twinning project “Institutional Strengthening of the Energy Market Authority” a) 2003 – 2005
2 Implementing EMRA’s “Regulatory Information System” (RIS) project to be funded from EU funds 2004 – 2006
a) Project Reference No. TR-02 EY-01

4- Financing Requirements and Sources of Financing
Table 14.1.1.2 (Euro)

Requirements - (EMRA) Year National Budget EU Resources Other Resources Total
I-Investment 2003-2004 21,000 b)
35,000 c) 63,000 b)
105,000 c) 84,000 b)
140,000 c)
II- Harmonisation with the EU Legislation and its Implementation
Personnel
Training (1) 2003 – 2006 (1+2) 984,000 a) 984,000 a)
Consultancy (2) 2003 – 2006
Translation 2003 – 2005 20,000 20,000
Other
Software Programs (3) 2004 – 2006 (1+2+3) 945,000 c) 945,000 c)
Total 56,000 2,117,000 2,173,000
a)Twinning Project No. TR-02 EY-01
b) Project Reference No. TR.0202.01
c) RIS Project
Task 14.1.2 Remove restrictions on the cross-border trade in energy
1- Priority Description
Removing restrictions on the cross-border trade in energy is a medium term requirement of the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
The legal framework, which constitutes a major part of the harmonization efforts with EU legislation in the field of energy, was established by the promulgation of the Electricity Market Law No. 4628 and the Natural Gas Market Law No. 4646. In the field of cross-border trade in energy, in order for integration with the EU internal energy market, the national transmission system must work in parallel with the European transmission system, and the lack of physical interconnection capacity must be addressed. Regulating cross border trade will only be possible after these issues are addressed. Once physical capacity and necessary regulation is in place, integration with the EU internal energy market will be facilitated.
It will be possible for eligible consumers and suppliers to be involved in cross-border transaction in natural gas after physical interconnections are established and the market is fully opened up to competition.
2- Schedule of Necessary Legislative Changes
Legislative changes are not foreseen for this priority. However, evaluations on this issue continue, regarding the secondary legislation to be adopted.
3- Schedule of Necessary Institutional Changes
Table 14.1.2.1

No Necessary Institutional Changes – (EMRA) Period of Implementation
1 Training of relevant staff who will eventually be responsible for drafting regulations concerning cross-border trade and for managing implementation processes 2003 – 2005
2 Preparation of the regulation to be drafted regarding cross-border trade of energy 2003 – 2005
3 Preparation of the regulation to be drafted concerning congestion management 2003 – 2005
4- Financing Requirements and Sources of Financing
Table 14.1.2.2 (Euro)

Requirements - (EMRA) Year National Budget EU Resources Other Resources Total
I-Investment
II- Harmonisation with the EU Legislation and its Implementation
Personnel
Training 2004 600,000 600,000
Consultancy 2004 600,000 600,000
Translation 2004 50,000 50,000
Other
Total 1,250,000 1,250,000

Task 14.1.3 Ensure the establishment of a competitive internal energy market in compliance with the electricity and gas directives
Ensuring the establishment of a competitive internal energy market, in compliance with the electricity and gas directives, is a short-term requirement of the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey
The Electricity Market Law No. 4628 and Natural Gas Market Law No. 4646 determine the framework for the development of financially sound and transparent electricity and natural gas markets operating in a competitive environment under provisions of private law. Within this context, the laws set the rules for the operation of competitive electricity and natural gas markets in general, while at the same time comprising specific provisions for the privatisation of state-owed enterprises, a necessary step for the establishment of a competitive environment and also for offsetting stranded costs arising from the implementations of the previous regime. It is of vital importance to implement regional tariffs in energy and to privatise public distribution and generation companies for the establishment of a fully functioning competitive market system. Two major issues, (a) completion of alignment of national legislation with the EU energy legislation and (b) the restructuring of energy utilities, opening up of the energy market to competition, and strengthening of administrative and regulatory structures have to be considered in this context
a. Completion of alignment of national legislation with the EU energy legislation
1- Priority Description
The Electricity Market Law and the secondary legislation adopted within that framework are in conformity with Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity. All the secondary legislation issued up to now is listed in Annex 14.1. One last batch of secondary legislation that needs to be adopted will be completed in the short term (see Table 14.1.3.1).
The Natural Gas Market Law No. 4646 and secondary legislation adopted within that framework are in conformity with Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas. All the secondary legislation issued up to now is listed in Annex 14.2.
Once all regulatory measures are in place, shortcomings with respect to full alignment with EU legislation will be overcome.
2- Schedule of Necessary Legislative Changes
Table 14.1.3.1.

No Title and Number of EU legislation Title and Number of Draft Turkish legislation Responsible Institution Proposed Date of the Approval of the Board / Minister / Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into Force
Balancing and Settlement Code EMRA 2003, IV. Quarter 2- 2003, IV. Quarter
Implementing Regulation on Demand Forecast EMRA 2003, IV. Quarter 2- 2003, IV. Quarter
Implementing Regulation on Security of Supply and Quality EMRA 2003, IV. Quarter 2- 2003, IV. Quarter
Possible regulations concerning governance EMRA 2004, II. Quarter 2- 2004, II. Quarter
Implementing Regulation on Measurement EMRA 2003, IV. Quarter 2- 2003, IV. Quarter
3- Schedule of Necessary Institutional Changes
Institutional changes are not foreseen at this stage for this priority.
4- Financing Requirements and Sources of Financing
Financing requirements are not foreseen at this stage for this priority.
b. Restructuring of energy utilities, opening up of the energy market to competition, strengthening of administrative and regulatory structures
1- Priority Description
Energy utilities, except the ones which are within the scope of the privatisation programme, operate under the aegis of the Ministry of Energy and Natural Resources. Therefore restructuring of these utilities following unbundling / separation falls under the responsibility of the Ministry of Energy and Natural Resources:
- Turkish Electricity Authority (TEK) has been separated into two corporations namely the Turkish Electricity Generation and Transmission Company (TEAS) and the Turkish Electricity Distribution Company (TEDAS) in accordance with the provisions of Decree No. 93/4789 dated 12 August 1993.
- TEAS, a vertically integrated company operating in the electricity market, has been separated into three companies, Electricity Generation Company (EUAS), Turkish Electricity Generation Company (TEIAS) and the Turkish Electricity Trading and Contracting Company (TETAS), as envisaged in the Electricity Market Law and implemented by Decree No. 2001/2026.
- As of the end of 2003 tendering will take place for the progressive privatisation of EUAS and TEDAS.
- According to the Natural Gas Market Law, the Petroleum Pipeline Corporation (BOTAS) will need to partially or fully transfer its natural gas purchase and sale contracts at the latest by 2009, until total annual imports fall to 20% of annual national consumption.
- After 2009 BOTAS is envisaged to be divided into three companies engaged in transmission, storage, and trade (import and sale); companies responsible for storage and trade will be privatised, whereas the transmission company will continue as a public enterprise.
- Unbundling of accounts of the transmission, storage and trade activities will be completed by the end of 2003.
- In 2000 31.5% of TUPRAS shares were privatised. As of 11 October 2002, public shares in TUPRAS on the stock exchange amounted to 34.2%. The tender announcement for the remaining 65.76% of the public shares of TUPRAS for privatisation through block sales was realized as of June 2003. The privatisation of the company is planned to be completed within 2003.
- 51% of public shares in Petrol Ofisi Corporation (POAS) were privatised within the year 2000, the rest of the shares were transferred to the private sector through sales in August 2002, thereby completing the privatisation of POAS.
In order to harmonize with EU legislation in the energy sector, to ensure the effective implementation of legislation, and to open up the markets to full competition, it is important that the transfer of long-term gas contracts are realized, that BOTAS is restructured according to different gas activities, and that current distribution companies are privatised.
BOTAS has proposed a gas transmission and transit assistance project, with a budget of 1,800,000 Euro to be funded through EU sources, during the 2003 Pre-accession Financial Assistance Programme. The project aims to provide legal and know-how support to BOTAS in accounting, transfer of current gas purchase contracts, establishment of a grid code, designing of new transmission agreements and reassessment of existing ones, improvement of the transmission network, cross-border trade, transit operations, technical operability and international commitments, organisation, information flow, reporting, maintenance and repair of the transmission system, publishing of an electronic bulletin board and training
2- Schedule of Necessary Legislative Changes
Institutional changes are not foreseen for this priority. However, in cases where it is necessary to realise the above-mentioned activities, regulation efforts will come on the agenda.
3- Schedule of Necessary Institutional Changes
Necessary administrative structuring for the restructuring of energy utilities, opening up of the energy market to competition, strengthening of administrative and regulatory structures in accordance with the acquis has been described above, under Priority Description.
4-Financing Requirements and Sources of Financing
Financing requirements are not foreseen at this stage for this priority.
PRIORITY 14.2 Establish a programme for the adoption of the energy acquis, particularly concerning issues other than the internal market
Task 14.2.1 Harmonisation with EU legislation imposing an obligation to maintain minimum stocks in crude oil and petroleum products
1- Priority Description
Turkey, as a permanent member of the International Energy Agency (IEA), regularly notifies the IEA Secretariat of its petroleum stocks, and complies with the requirement of maintaining 90 days of petroleum stocks in accordance with IEA commitments and relevant EU legislation.
The objective of the Petroleum Market Law is to ensure that guidance, surveillance and inspection activities are regulated for market activities that are related to the transparent, egalitarian and stable supply of petroleum from foreign or domestic sources either directly or after being processed, to consumers safely, economically and within a competitive environment. According to the draft law, it is necessary to maintain national stocks of petroleum for at least 90 days of the net import share of the daily average consumption of the previous year, in order to satisfy the requirements for emergency petroleum stocks arising out of international commitments, for the continuity of the markets, and the elimination of risks in cases of crisis and emergency.
The draft law also envisages the establishment of a commission. This commission shall be responsible for determining, increasing and management of the actual number of days of national petroleum stocks, for the supply of national petroleum stocks, for the determination of the type, quantity and storage place of the national petroleum stocks, for petroleum and service purchases in connection with national stocks, for taking necessary decisions and measures with respect to stocks and stocking activities, for preparation of proposals to be submitted to the Council of Ministers and for sales from stocks in cases of emergency. The Council of Ministers is responsible for determining the procedures and principles of the commission’s working method.
2- Schedule of Necessary Legislative Changes
Table 14.2.1.1

No Title and Number of EU legislation Title and Number of Draft Turkish legislation Responsible Institution Proposed Date of the Approval of the Minister / Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into Force
1 Council Directive 68/414/EEC of 20 December 1968 imposing an obligation on Member States of the EEC to maintain minimum stocks of crude oil and/or petroleum products Petroleum Market Law Ministry of Energy and Natural Resources 2003, III. Quarter 2003, III. Quarter
Table 14.2.1.1 (Continued)

No Title and Number of EU legislation Title and Number of Draft Turkish legislation Responsible Institution Proposed Date of the Approval of the Minister / Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into Force
2 Council Directive 98/93/EC of 14 December 1998 amending Directive 68/414/EEC imposing an obligation on Member States of the EEC to maintain minimum stocks of crude oil and/or petroleum products Petroleum Market Law Ministry of Energy and Natural Resources 2003, III. Quarter 2003, III. Quarter
3- Schedule of Necessary Institutional Changes
Table 14.2.1.2

No Necessary Institutional Changes – (Ministry of Energy and Natural Resource) Period of Implementation
1 Establishment of regulatory authority responsible for the petroleum market and a commission for the management of petroleum stocks by promulgation of the Petroleum Market Law 2004
4-Financing Requirements and Sources of Financing
Table 14.2.1.3 (Euro)

Requirements - (Ministry of Energy and Natural Resource) Year National Budget EU Resources Other Resources Total
I- Investment
2004 1,000,000 1,000,000
2005 500,000 500,000
II- Harmonisation with the EU Legislation and its Implementation
Personnel (salary for 250 people) 2004 2,500,000 2,500,000
2004 200,000 200,000
2005 200,.000 200,000

Table 14.2.1.3 (Continued) (Euro)

Requirements - (Ministry of Energy and Natural Resource) Year National Budget EU Resources Other Resources Total
2004 200,000 200,000
2005 200,000 200,000
Translation
Other
Total 4,000,000 800,000 4,800,000

Task 14.2.2 Harmonisation with EU legislation in the field of energy efficiency
1- Priority Description
Harmonisation with EU legislation in the field of energy efficiency is a short-term priority of the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
Turkey assigns utmost importance to energy efficiency in order to realise its energy conservation potential and to fulfil its commitments arising out of international agreements. As indicated in the eighth “Five-Year Development Plan”, measures will be taken to control and reduce greenhouse gas emissions originating from transport, energy, industry and residential sectors in order to increase energy efficiency and realise energy savings.
The final objective is to increase energy efficiency in Turkey in parallel with relevant EU legislation and to establish the proper administrative capacity for the efficient implementation of EU legislation.
Preparation of an energy efficiency draft law, which will set forth the general framework for energy efficiency issues, is underway. Existing legislation is as follows:
- Implementing Regulation on the Measures to be Taken to Increase Energy Efficiency in Industrial Establishments was published in the Official Gazette No. 22460 dated 11October 1995,
- Implementing Regulation on Insulation for New Buildings was published in the Official Gazette No. 24043 dated 8May 2000.
Present legislation and implementations fulfil to a large extent the requirements of Council Directive 93/76/EEC of 13 September 1993 to limit carbon dioxide emissions by improving energy efficiency (SAVE).
The Ministry of Industry and Trade, in the framework of EU energy efficiency legislation, has harmonized and published 11 out of the 13 Directives under its responsibility.
All legislation published in the field of energy efficiency with corresponding EU legislation is listed in Annex 14.3. Market surveillance and control of Turkish legislation corresponding to Directive 92/42/EEC and 96/57/EC listed in the annex, will begin in the medium-term.
It must be noted that Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product information of the consumption of energy and other resources by household appliances, is a directive of a general nature. This directive has not been harmonised, because its contents were dealt with under other regulations issued in conformity with directives that fall under the responsibility of the Ministry of Industry and Trade. Therefore, this directive does not appear in the schedule of necessary legislative changes.
The main organisations responsible for energy efficiency policies and activities are the Ministry of Energy and Natural Resources and the General Directorate of Electrical Power Resources Survey and Development Administration National Energy Conservation Centre (EIEI/UETM). EIEI/UETM has been carrying out training, energy audit, and legislation preparation and public awareness promotion activities for enhancing energy efficiency in all end-use sectors. In addition, EIEI/UETM conducts energy efficiency projects in Turkey in cooperation with international organisations such as the World Bank, EU, the Japan International Cooperation Agency (JICA), and the German Technical Cooperation Agency (GTZ).
Public transport measures in connection with Council recommendation of 4 May 1976 on the rational use of energy in urban passenger transport, are taken by municipalities in accordance with Article 19.5 of the Municipality Law, dated 1930. Details of energy efficiency activities related to urban transport can be found in Annex 14.4.

2- Schedule of Necessary Legislative Changes
Table 14.2.2.1

No Title and Number of EU legislation Title and Number of Draft Turkish legislation Responsible Institution Proposed Date of the Approval of the Minister / Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into Force
1 31998Y1217(01):*Council Resolution of 7 December 1998 on energy efficiency in the European Community Energy Efficiency Law Ministry of Energy and Natural Resources - EİEİ / UETM 2004, II. Quarter 1- 2004, IV. Quarter
2- 2004, IV. Quarter
2 Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings Necessary amendments in the Regulation on Heat Insulation in Buildings to align with the Directive 2002/91/EC Ministry of Public Works and Settlement 2005, IV. Quarter 2- 2005, IV. Quarter
3 Commission Directive 2002/31/EC of 22 March 2002 implementing Council Directive 92/75/EEC with regard to energy labelling of household air-conditioners Communiqué on the energy labelling of household air-conditioners Ministry of Industry and Trade 2003, IV. Quarter 2- 2003, IV. Quarter

3- Schedule of Necessary Institutional Changes
Institutional changes are not foreseen at this stage for this priority for the Ministry of Industry and Trade.
Table 14.2.2.2

No Necessary Institutional Changes – (Ministry of Energy and Natural Resources) Period of Implementation
1 Strengthening the administrative capacity of EİEİ/UETM 2004
2 Obtaining funds for energy efficiency investments (grants, low-interest credits etc.) 2004 – 2005
Table 14.2.2.3

No Necessary Institutional Changes – (Ministry of Public Works and Settlement) Period of Implementation
Carrying out necessary research for the formulation of a performance strategy for buildings
A Research Group will be established following a tendering procedure, to formulate an energy performance strategy for buildings, cooperate with relevant institutions and determine a final strategy 2003-2004
Preparation and publication of necessary legislation
a- Re-structuring of the Ministry of Public Works and Settlement to be able to carry out all the procedures regarding construction materials and energy performance 2003-2004
b- Establish a system for the certification of buildings 2004-2005
c- Determine an inspection mechanism 2004-2005
Training
a- Training of public sector staff 2003-2005
b- Informing the private sector 2003-2005
4- Financing Requirements and Sources of Financing
Financing requirements are not foreseen at this stage for this priority for the Ministry of Industry and Trade. However, training needs for the implementation of Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels are given in Table 1.1.3 under the heading Free Movement of Goods.
Table 14.2.2.4 (Euro)

Requirements - (Ministry of Energy and Natural Resources /EIEI) Year National Budget EU Resources Other Resources (JICA) a) Other Resources (GTZ) b) Total
I- Investment
2004 40,000 50,000 90,000
2005 60,000 50,000 110,000
II- Harmonisation with the EU Legislation and its Implementation
2004
2005
2004 50,000 50,000 100,000
2005 50,000 50,000
2004 750,000 300,000 1,050,000
2005 400.000 300.000 700,000
2004 10,000 10,000
2005 10,000 10,000
2004
2005 (1+2+3) 1,250,000 c) 1,250,000
Total 100,000 1,270, 000 1,200,000 800,000 3,370,000
a)The JICA project covering the period 2000-2005 is worth around 6 million US dollars, including a project equipment grant of 2.1 million US dollars.
b) The budget of the GTZ Project for 2003-2005 is around 1.2 million Euro. Various activities to increase the administrative capacity for technical studies in the building sector and an energy management plan for municipalities are carried out under this program. The numbers in this column show the allocated budget of the GTZ project, all of which is a grant and therefore there is no national contribution.
c)The project “Improvement of Energy Efficiency in Turkey” is under the 2003 Financial Cooperation Programming.
Table 14.2.2.5 (Euro)

Requirements – (Ministry of Public Works and Settlement) Year National Budget EU Resources Other Resources Total
I-Investment
II- Harmonisation with the EU Legislation and its Implementation
Personnel a) 2004-2005 60,000 – 80,000 60,000-80,000
Training b) 2004-2005 200,000 – 400,000 200,000-400,000
Consultancy c) 2004-2005 150,000 – 300,000 150,000 – 300,000
Translation d) 2004-2005 20,000 – 30,000 20,000 – 30,000
Other (Research) e) 2004-2005 400,000 – 500,000 400,000 – 500,000
Total 830,000 – 1,310,000 830,000-1,310,000
a) Expenses for staff which will be employed only in studies concerning energy performance of buildings during the implementation of the legislation to be harmonised and the monitoring, assessment and implementation activities of the research group
b)Amount required for the training of staff and institutions responsible for the implementation of the legislation to be harmonised.
c) Expenses for experts during the assessment of the research results.
d) Amount required for the translation of the legislation to be harmonised.
e) Amount to be determined after offers are received for the tender of the project to be realized.

Task 14.2.3 Establish a programme to increase the share of energy produced from renewable sources
1- Priority Description
Establishing a programme to increase the share of energy produced from renewable sources is a short-term priority of the Council Decision of 19 May 2003 for the Accession Partnership with the Republic of Turkey.
Turkey assigns due importance to the utilization of renewable energy sources in the energy balance, in order to decrease energy import dependency and to improve security of energy supply. The Eighth Five Year Development Plan also indicated that “Measures shall be taken towards developing and penetrating new and renewable energy sources by ensuring its increasing share within final consumption, taking into account the protection of the environment”. The preparation of a Renewable Energy Draft Law is on the agenda, and a grant has been obtained from the World Bank for this purpose. The final objective is to establish the necessary legal and regulatory basis for the increasing use of renewable energy sources without disturbing the free market conditions and system.
Provisions in the Electricity Market Law that aim to support the use of renewable energy sources are listed in Annex 14.5.
2- Schedule of Necessary Legislative Changes
Table 14.2.3.1

No. Title and Number of EU legislation Title and Number of Draft Turkish legislation Responsible Institution Proposed Date of the Approval of the Minister / Council of Ministers Proposed Date of
1- Adoption by the Parliament
2- Entry into Force
1 Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market Renewable Energy Law Ministry of Energy and Natural Resources / EİEİ 2003, IV. Quarter 1- 2004, II. Quarter
2- 2004, III. Quarter
2 Council Resolution of 26 November 1986 on a Community orientation to develop new and renewable energy sources (386Y1209(01)) Renewable Energy Law Ministry of Energy and Natural Resources / EİEİ 2003, IV. Quarter 1- 2004, II. Quarter
2- 2004, III. Quarter
3 Council Resolution of 27 June 1997 on renewable sources of energy (397Y0711(01)) Renewable Energy Law Ministry of Energy and Natural Resources / EİEİ 2003, IV. Quarter 1- 2004, II. Quarter
2- 2004, III. Quarter
4 Council Resolution of 8 June 1998 on renewable sources of energy (398Y0624(01)) Renewable Energy Law Ministry of Energy and Natural Resources / EİEİ 2003, IV. Quarter 1- 2004, II. Quarter
2- 2004, III. Quarter
5 Council Recommendation of 9 June 1988 on developing the exploitation of renewable energy sources in the Community (88/349/EEC) Renewable Energy Law Ministry of Energy and Natural Resources / EİEİ 2003, IV. Quarter 1- 2004, II. Quarter
2- 2004, III. Quarter
3- Schedule of Necessary Institutional Changes
Table 14.2.3.2

No. Necessary Institutional Changes – (Ministry of Energy and Natural Resources ) Period of Implementation
1 Increasing administrative capacity of the unit within EIEI responsible for renewable energy sources 2004
4-Financing Requirements and Sources of Financing
Table 14.2.3.3 (Euro)

Requirements – (Ministry of Energy and Natural Resources) Year National Budget EU Resources Other Resources Total
I- Investment
2004 10,000 10,000
2005
II- Harmonisation with the EU Legislation and its Implementation

2004 80,000 – 100,000 80,000 – 100,000
2005
2004 75,000 75,000
2005 75,000 75,000
2004 75,000 100,000 83,000 a) 258,000
2005
2004 5,000 5,000
2005

2004 30,000 – 40,000 30,000 – 40,000
2005
Total 200,000 – 230,000 250,000 83,000 533,000 – 563,000
a) 98,000 US Dollars World Bank Grant
Task 14.2.4 Harmonisation with EU legislation in the field of nuclear energy
1- Priority Description
The establishment of a programme for the adoption of the energy acquis, particularly that concerning issues other than the internal market is a short term priority in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey; harmonisation with EU legislation in the field of nuclear energy is a component of this priority.
Turkish Atomic Energy Authority (TAEA), is the authority responsible for the licensing and inspection of nuclear plants and sources of radiation in accordance with its Establishment Law No. 2690.
Turkey has concluded a full scope safeguard agreement with the International Energy Agency in the field of nuclear safety. The Protocol in the annex of this agreement came into force in July 2001.
The Regulation on the Count and Control of Nuclear Materials published by TAEA (Official Gazette No. 23106 dated 10.9.1997), is in harmony with Commission Regulation (Euratom) No 3227/76 of 19 October 1976 concerning the application of the provisions on Euratom safeguards, amended by 220/90/Euratom and 2130/93/Euratom.
2- Schedule of Necessary Legislative Changes
Legislative changes are not foreseen for this priority.
3- Schedule of Necessary Institutional Changes
Institutional changes are not foreseen at this stage for this priority.
4-Financing Requirements and Sources of Financing
Financing requirements are not foreseen at this stage for this priority.

PRIORITY 14.3 Promote the implementation of projects in Turkey listed as projects of common interest in the European Community TEN-Energy Guidelines
Promoting the implementation of projects in Turkey listed as projects of common interest in the European Community TEN-Energy Guidelines is a medium-term priority in the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
The European Union attaches great importance to the development of trans-European Energy Networks in order to attain security of supply. The objective is the development of a competitive European energy market free of internal borders, through TEN-Energy. TEN-Energy will be extended to cover neighbouring countries; moreover, regional electricity, gas and oil trade will be developed through projects of common interest. Necessary measures will be taken to realize the potentials of oil and natural gas exports to European markets.
In order to develop TEN-Energy, the Commission identified energy network projects of common interest, with an impact on both EU member states and other relevant countries for the completion of the internal market and attainment of security of supply.
The Recommendation attached to the Association Council Decision, signed on 6 March 1995, which came into force on 1 January 1995, envisages the initiation of information and opinion exchange in macroeconomic issues. In addition, priority areas have been identified for common activities in order to realize cooperation between the parties in a wide range of areas including the participation of Turkey in trans-European infrastructure projects in energy, transport, and telecommunication.


In the Framework of TEN-Energy Projects;
Turkey-Greece Natural Gas Pipeline Interconnection: This project is among both the common interest and priority projects identified by the European Commission.
The economic feasibility study for the Turkey-Greece Natural Gas Pipeline Interconnection projects was financed by the EU TEN Programme and by the Greek Public Natural Gas Company (DEPA), and was completed on 26 March 2002. DEPA made an application for EU TEN funds on 17 April 2002 for financing engineering and environmental impact assessment (EIA) studies of the project. The European Commission agreed to cover 50% of the cost of engineering and EIA studies on 31 November 2002. The grant agreement came into force on 22 December 2002.
Turkey-Greece Electricity Grid Interconnection and the Connection of the Turkish Electricity Network to the Union for the Co-ordination of Transmission of Electricity (UCTE) system: This project is among the projects of common interest, which aim at realizing electricity connections with third countries, especially candidate countries and the reciprocal and secure functioning of the systems.
The minutes of agreement for the Turkey-Greece electricity interconnection were signed on 28 March 2002. According to the minutes of agreement, a 400 kV capacity line will be constructed between Babaeski (Turkey) and Philippi (Greece). The line will be completed by the end of 2006. Feasibility and assessment studies have been financed through the TEN Programme.


















Annex-14.1

Most of the secondary legislation under the framework of the Electricity Market Law No. 4628 are issued in conformity with Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity.


Regulations and Communiqués Date and Number of the Official Gazette
Electricity Market Licensing Regulation
Regulation amending the Electricity Market Licensing Regulation
Regulation amending the Electricity Market Licensing Regulation
Regulation amending the Electricity Market Licensing Regulation 04.08.2002, No. 24836
14.11.2002, No. 24936
28.02.2003, No. 25034
28.04.2003, No. 25092
Electricity Market Tariffs Regulation 11.08.2002, No. 24843
Electricity Market Grid Code 22.01.2003, No. 25001
Electricity Market Distribution Code 19.02.2003, No. 25025
Electricity Market Eligible Consumer Regulation
Regulation Amending the Electricity Market Eligible Consumer Regulation 04.09.2002, No. 24866
21.03.2003, No. 25055
Electricity Market Import and Export Regulation
Regulation Amending the Electricity Market Import and Export Regulation 04.09.2002, No. 24866
28.02.2003, No. 25034
Electricity Market Customer Services Regulation
Regulation Amending the Customer Services Regulation 25.09.2002, No. 24887
28.02.2003, No. 25034
Regulation Regarding the Principles and Procedures for Audits, Pre-examinations and Investigations in the Electricity Market 28.01.2003, No. 25007
Electricity Market Regulation on Alterations in the Contracts of Legal Undertakings Carrying Out More Than One Market Activity and on the Transfer of the Transmission Activity and Relinquished Activities 28.11.2002, No. 24950

Regulations and Communiqués Date and Number of the Official Gazette
Communiqué Regarding Financial Settlement 30.03.2003, No. 25064
Communiqué Regarding Connection and Use of System 27.03.2003, No. 25061
Communiqué Regarding Regulatory Accounting Guidelines 24.01.2003, No. 25003
Communiqué Regarding Determination of Transmission and Distribution Connection Charges
Communiqué Regarding Regulation of Distribution System Revenue
Communiqué Regarding Regulation of Retail Service Revenue and Retail Prices
Communiqué Regarding Regulation of Transmission System Operation Revenue
Communiqué Regarding Regulation of Transmission System Revenue 11.08.2002, No. 24843
11.08.2002, No. 24843
11.08.2002, No. 24843
11.08.2002, No. 24843
11.08.2002, No. 24843
Communiqué Regarding Meters 22.03.2003, No. 25056













Annex-14.2

Secondary legislation published according to the Natural Gas Market Law No. 4646, in conformity with Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas, are shown below:


Regulations and Communiqués Date and Number of the Official Gazette
Natural Gas Market License Regulation 07.09.2002, No. 24869
Natural Gas Market Tariff Regulation 26.09.2002, No. 24888
Natural Gas Market Internal Installations Regulation 18.09.2002, No. 24880
Natural Gas Market Transmission Network Operation Regulation 26.10.2002, No. 24918
Natural Gas Market Facilities Regulation 26.10.2002, No. 24918
Natural Gas Market Certificate Regulation 25.09.2002, No. 24887
Natural Gas Market Distribution and Customer Services Regulation 03.11.2002, No. 24925
Regulation Regarding the Principles and Procedures for Audits, Pre-examinations and Investigations in the Natural Gas Market 28.01.2003, No. 25007
Communiqué Regarding Liquefied Natural Gas (LNG) 08.04.2003, No. 25073
Communiqué Regarding the Application of Gross Calorific Value in Retail Sales of Natural Gas Distribution Companies 31.12.2002, No. 24980
General Communiqué Regarding Accounting Implementation and Financial Reporting 23.05.2002, No. 24763




Annex-14.3
Measures completed in Energy Efficiency

No Title of the EU Legislation Corresponding Turkish Legislation Date and Number of the Official Gazette Date of entry into force
1 Council Directive 78/170/EEC of 13 February 1978 on the performance of heat generators for space heating and the production of hot water in new or existing non- industrial buildings and on the insulation of heat and domestic hot-water distribution in new non-industrial buildings Regulation on the performance of heat generators for space heating and the production of hot water in new or existing non- industrial buildings and on the insulation of heat and domestic hot-water distribution in new non-industrial buildings (Ministry of Industry and Trade) 14.12.2000, No. 24260
13.12.2001, No. 24612 14.12.2001
13.12.2001
2 Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels Regulation on new hot water boilers (Ministry of Industry and Trade) 31.03.2002, No. 24712
19.03.2003, No. 25053 31.03.2003
19.03.2003 (mandatory from 01.01.2004 on)
3 Commission Directive 94/2/EC of 21 January 1994 implementing Council Directive 92/75/EEC with regard to energy labelling of household electric refrigerators, freezers and their combinations Communiqué on energy labelling of household electric refrigerators, freezers and their combinations (Ministry of Industry and Trade) 24.03.2002, No. 24705 24.09.2002
4 Commission Directive 95/12/EC of 23 May 1995 implementing Council Directive 92/75/EEC with regard to energy labelling of household washing machines Communiqué on energy labelling of household washing machines (Ministry of Industry and Trade) 20.08.2002, No. 24852 20.02.2003
5 Commission Directive 95/13/EC of 23 May 1995 implementing Council Directive 92/75/EEC with regard to energy labelling of household electric tumble driers Communiqué on energy labelling of household electric tumble driers (Ministry of Industry and Trade) 20.08.2002, No. 24852 20.02.2003
6 Directive 96/57/EC of the European Parliament and of the Council of 3 September 1996 on energy efficiency requirements for household electric refrigerators, freezers and combinations thereof Regulation on energy efficiency requirements for household electric refrigerators, freezers and combinations thereof (96/57/AT) (Ministry of Industry and Trade) 22.01.2003, No. 25001 31.12.2005

No Title of the EU Legislation Corresponding Turkish Legislation Date and Number of the Official Gazette Date of entry into force
7 Commission Directive 96/60/EC of 19 September 1996 implementing Council Directive 92/75/EEC with regard to energy labelling of household combined washer-driers Communiqué on energy labelling of household combined washer-driers (Ministry of Industry and Trade) 20.08.2002, No. 24852 20.02.2003
8 Commission Directive 97/17/EC of 16 April 1997 implementing Council Directive 92/75/EEC with regard to energy labelling of household dishwashers Communiqué on energy labelling of household dishwashers (Ministry of Industry and Trade) 20.08.2002, No. 24852 20.02.2003
9 Commission Directive 98/11/EC of 27 January 1998 implementing Council Directive 92/75/EEC with regard to energy labelling of household lamps Communiqué on energy labelling of household lamps (Ministry of Industry and Trade) 20.08.2002, No. 24852 20.02.2003
10 Commission Directive 2002/40/EC of 8 May 2002 implementing Council Directive 92/75/EEC with regard to energy labelling of household electric ovens Communiqué on energy labelling of household electric ovens (Ministry of Industry and Trade) 26.02.2003, No. 25032 26.02.2004
11 Council Resolution of 15 September 1986 on improving energy efficiency in industrial firms in the Member States (31986Y0924(01)) Regulation on the measures to be taken by industrial firms in order to improve energy efficiency (Ministry of Energy and Natural Resources) 11.11.1995, No. 22460 11.11.1995
12 Final Act of the Conference on the European Energy Charter - Annex 3: Energy Charter Protocol on energy efficiency and related environmental aspects (21994A1231(53)) Energy Charter Agreement on energy efficiency and related environmental aspects (Ministry of Energy and Natural Resources) 06.02.2000, No. 23956 01.02.2000
(ratified in the TGNA)
13 Directive 2000/55/EC of the European Parliament and of the Council of 18 September 2000 on energy efficiency requirements for ballasts for fluorescent lighting Regulation on energy efficiency requirements for ballasts for fluorescent lighting (2000/55/AT) (Ministry of Industry and Trade) 02.05.2003, No. 25096 02.05.2003 (mandatory from 15.01.2005 on)
14 Directive 2000/84/EC of the European Parliament and of the Council of 19 January 2001 on summer-time arrangements Decision on the re-arrangement of the implementation of summer-time in order to further benefit from day-light (Ministry of Energy and Natural Resources) 14.03.1998
Annex-14.4
ENERGY EFFICIENCY RELATED ACTIVITIES IN URBAN TRANSPORT
1. ISTANBUL METROPOLITAN MUNICIPALITY / Istanbul Electricity, Streetcar, Trolleybus General Directorate (IETT)
The total number of vehicles within the boundaries of Istanbul Metropolitan Municipality is 1,000,000, of which 2377 are public transport vehicles of IETT.
IETT has taken a series of measures to keep exhaust emissions of municipality vehicles under control in conformity with Turkish Standards. The following measures have been taken to decrease exhaust emissions.
- Fuelling 100% of buses with natural gas is designated as an important issue.
- Environmentally friendly green bus project was initiated in 1993. In this context, the number of buses with natural gas engines has reached one hundred. Efforts continue to increase this number to 236.
- Privatisation activities in public transport aim at creating new opportunities.
- In order to address high operation costs and fuel consumption arising as a result of the great distances between bus pools and main stations, parking lots have been made available in various points of the city between 1996 and 1997 in order to decrease “dead miles” and realize fuel conservation.
- EURO2 and EURO3 standards are accepted as basic criteria when purchasing new buses. Currently there are 550 buses complying with EURO 2 and EURO3 standards.

The “Smart Station Project” and the “Bus Surveillance Project” both have the objective of providing passengers with detailed information about time schedules and routes of IETT buses in order to promote the use of public transport. The following will be achieved by these projects:
- Rotation of IETT buses will be further coordinated.
- Passenger intensity will be evenly distributed.
- Supervision systems that are easier to implement will be introduced.
- Automatic ticketing system will contribute to reducing passenger intensity in stations.
- Statistical and real time traffic circulation reports will be registered.
- Busses will be monitored and guided by the centre and relevant breakdown /accident units.
Currently there is a 42 kilometre railway system (underground, light rail train and streetcar) of which 8 kilometres are subway, total daily capacity is 120,000 passengers. In the next decade 250 kilometres of additional railway will be integrated with the current system and passenger capacity will increase to 2.5 million passengers per day.
2. ANKARA METROPOLITAN MUNICIPALITY / Electricity, Gas, Bus General Directorate (EGO)
Ankaray Light Rail Train Project: The 8725 meters long Ankaray Project was initiated in 1996 to increase public transport awareness and to realize fuel conservation. Total capacity is 340,000 passengers per day, 175,000 passengers per day were transported in 2002. An additional 9 kilometre line will be completed in 2005.
Subway: The operation of a double tiered, fully automatic, fast railway transport system began in 1997, with an entire length of 14.6 kilometres. Currently the daily capacity is 500,000 passengers, and 175,000 passengers were transported in 2002. Efforts are underway to construct 15 kilometres of additional lines to the current capacity.
Parking lots have been designated in the city centre close to Ankaray and Subway stations, to decrease the trafficking of private cars.
Currently there are 1240 buses operated by the municipality, of which 267 fulfil the EURO2 standard. Total capacity of the bus fleet is 512,000.
3. İZMİR METROPOLITAN MUNICIPALITY
A planned project aims at the rehabilitation and the standard improvement of the public transport system. For this purpose, bus-boat-subway systems are being integrated.
The subway system is 11.6 kilometres long, with a capacity of 90,000 passengers per day.
The electrification and signalisation of the suburban lines between Alsancak-Cumaovası and Basmane-Aliağa, which have a total length of 79 kilometres and are currently operated by the Turkish National Railway Company, will be completed by the end of 2003. In addition the Improvement of Infrastructure Project, for which the municipality is currently tendering, aims at improving these 79 kilometres lines so that they become suitable for high standard passenger transport. Once this project is completed the operation of lines will be transferred from the Railway Company to the Metropolitan Municipality.
Izmir Metropolitan Municipality owns 1400 buses. The total capacity of the fleet together with the buses operated by the private sector is 1,000,000 passengers per day. 345 buses carry the EURO2 standard.
4. ADANA METROPOLITAN MUNICIPALITY
A 13.5 kilometre subway system with a 330,000 passengers per day capacity is under construction. Another subway project of 6.5 kilometres is being planned.
The municipality owns 139 buses, all which carry the EURO2 standard. Total capacity of the fleet is 90,000 passengers.
5. BURSA METROPOLITAN MUNICIPALITY
The light rail train system under construction will be 21 kilometres long with a capacity of 210,000 passengers per day. The construction of 17.5 kilometres with a capacity of 132,000 passengers per day has been completed. Efforts to expand the system are underway.
The municipality owns 236 buses and the total daily capacity is 28,000 passengers. 50 of the 102 buses operated by the private sector carry the EURO2 standard.
6. KONYA METROPOLITAN MUNICIPALITY
The municipality owns 233 buses. The capacity of the fleet is 140,000 passengers 50 of the buses carry the EURO2 standard.
The light rail train system is 25 kilometres long with a capacity of 100,000 passengers per day. Studies are underway to increase the system to 45 kilometres.





Annex-14.5
EMRA legislation to promote the use of renewable energy sources:
Article 5, paragraph (p) of the Electricity Market Law:
“In addition to the duties set out in other provisions of this Law, the Board shall also have the following duties:
...
p) With regard to the environmental effects of the electricity generation operations, to take necessary measures for encouraging the utilization of renewable and domestic energy resources and to initiate actions with relevant agencies for provision and implementation of incentives in this field.”
According to the Electricity Market Licensing Regulation, generation facilities based on renewable resources are defined as “The generation facilities based on wind, solar, geothermal, wave, tide, biomass, biogas and hydrogen energy and the river and canal type hydroelectric generation facilities without reservoirs and hydroelectric generation facilities with reservoirs and an installed capacity of 20 MW or below”
Electricity Market Licensing Regulation Article 12:
“The legal entities applying for licenses for construction of facilities based on domestic natural resources and renewable energy resources shall only pay one percent of the total licensing fee. The generation facilities based on renewable energy resources shall not pay annual license fees for the first eight years following the facility completion date inserted in their respective licenses. The provisions of this paragraph shall not be applicable for generation facilities based on domestic natural resources and renewable resources that are operating within the scope of existing contracts.
…..
For generation facilities based on renewable energy resources; in case of delays for more than ten percent of the period indicated in the licenses for facility completion, the licensees shall not benefit from the exception of not paying annual license fees for the first eight years as indicated in this Regulation. The annual license fees to be paid by such legal entities shall be calculated and collected according to the average generation amounts indicated during application”
Electricity Market Licensing Regulation Article 30:
“Retail licensees, while purchasing energy for sales to non-eligible consumers, are obliged to give priority to generation facilities based on renewable resources, if the price of the energy generated by such a facility is less than or equal to TETAS's wholesale price and a cheaper supplier cannot be found” 1)
Electricity Market Licensing Regulation Article 38:
“TEIAS and/or distribution licensees shall assign priority for system connection of generation facilities based on domestic natural resources and renewable resources.”


15- INDUSTRIAL POLICIES



I- PRIORITY LIST
Priority 15.1 Implementation of anhe Industrial Policy for Turkey
Priority 15.2 Develop and implement a promotion strategy for foreign investment.
II- MEASURES FOR HARMONISATION WITH THE EU LEGISLATION AND IMPLEMENTATION
PRIORITY 15.1 Implementation of an Industrial Policy for Turkey
1- Priority Description
The need to prepare an industrial strategy for our country during the pre-accession period was identified at the meeting of the Industry, Trade and ECSC Products Subcommittee, held on 16 May 2001 in Istanbul. The said subcommittee is one of the subcommittees established between Turkey and the European Union for the adoption of the EU acquis. This necessity was also mentioned in the European Commission’s 2002 Regular Report On Turkey’s Progress Towards Accession. Therefore, a draft Industrial Policy for Turkey has been prepared under the coordination of the State Planning Organisation (SPO), with the participation of related organisations, and was submitted to the European Commission. EU representatives expressed that they regarded the draft policy paper positively in general and made some suggestions about its content during the Subcommittee Meeting held in Brussels on 17 July 2002.
The draft document has been revised by taking into consideration the recommendations of the EU side and the policies and measures contained in the Government Programme and in the Urgent Action Plan. In this context, an action plan is attached in the annex of the document, including priority measures.
The “Industrial Policy for Turkey” document has been prepared under the coordination of the State Planning Organization, with contributions from the Ministry of Industry and Trade, the Undersecretariat of the Treasury, the Undersecretariat for Foreign Trade, the Secretariat General for EU Affairs, the Small And Medium Industry Development Organisation (KOSGEB), the Turkish Patent Institute, the Union of Chambers of Commerce, Industry, Maritime Trade and Commodity Exchanges of Turkey (TOBB), and the Confederation of Turkish Craftsmen and Artisans (TESK).
This document, which is based on the 8 th Five Year Development Plan (2001-2005) and the Government Programme, has been prepared as a medium term policy paper in order to define the general framework of the industrial policy. The text of the document covers the current situation with regard to industrial production, institutional framework, objectives, policies to be implemented, and priority measures. This document will be revised over the following years in accordance with developments and necessities.
The main objective of industrial policy in Turkey is to provide sustainable growth in an outward oriented structure by increasing the competitiveness and efficiency of industry within a global competitive environment.
Industrial policy aims to improve a competitive business environment in which entrepreneurs and undertakings can take initiatives, create opportunities, and use their potential. However, in Turkey, industrial policy is not an independent policy area. It is a horizontal policy area crossing different policy areas such as foreign trade, investment, technology, SMEs, quality, environment, labour and competition. In addition, it covers sectoral policies developed in line with the specific needs of these sectors.
It is expected that the implementation of the policies and measures specified in this document will contribute to the improvement of industry in the upcoming period. Additional measures will be introduced after the existing difficulties have been overcome and the economy is stabilized.
The “Industrial Policy for Turkey” document will be submitted to the European Commission after becoming official

PRIORITY 15.2 Develop and implement a promotion strategy for foreign investments
1.Priority Description
Developing and implementing a strategy for the promotion of foreign investment in Turkey is designated as a short-term priority in the area of industry policy by the Council Decision of 19 May 2003 on the Accession Partnership with the Republic of Turkey.
From the 1980s onwards, the promotion of the inward flow of foreign direct investment has been an important goal for the Turkish Government in order to strengthen the production infrastructure, increase the capabilities of Turkish industry, and increase the country’s competitive power.
As a result of the liberalisation of the economy and particularly, of the foreign investment regime, Turkey witnessed a gradual increase in inward foreign investment figures until the mid-1990s. Nevertheless, the foreign direct investment level stagnated thereafter, and despite its strong potential, Turkey has not benefited much from the global flow of foreign investments.
A number of studies were conducted in co-operation with the World Bank - Foreign Investment Advisory Service (FIAS) in order to find out the reasons for the low level of private sector investments, and particularly foreign investment in Turkey, and of Turkey’s under-performance in terms of attracting foreign investments, and to develop a reform programme to rationalise the Turkish system.
In this framework, the Analysis of the Foreign Direct Investment Environment was followed by the Determination of Administrative Barriers to Investment Project, which was carried out with a strong political will from the government, as well as support from the public institutions and the private sector. Two further projects were also conducted to develop an appropriate legal framework for foreign direct investments and an effective investment promotion strategy.
In connection with the results of these studies, the Government of the Republic of Turkey has initiated a comprehensive reform programme to modernise and streamline the legal, regulatory and administrative framework. For this purpose, Council of Ministers enacted a Decision on 11 December 2001, which identifies the following key areas and the structure of the reform programme process:
- Company registration
- Employment (working licences for foreigners)
- Sectoral licensing
- Land access and site development
- Taxation and state aids
- Customs and technical standards
- Intellectual property rights
- Foreign direct investments legislation
- Investment promotion
- SMEs
Concerning the structure of the reform process, the Council of Ministers’ Decision set up 10 Technical Committees corresponding to 10 key areas of the reform envisages that the work on regulatory reform be guided by the Undersecretary of the Prime Ministry, under the auspices of the Coordination Committee for the Improvement of the Investment Environment (CCIIE) composed of the presidents of the Technical Committees and the representatives of the Ministry of Finance, the Ministry of Industry and Trade, the Undersecretariat of the Treasury, the Undersecretariat for Foreign Trade, the State Planning Organisation, the Turkish Industrialists’ and Businessmen’s Association (TUSIAD), the Union of Chambers of Commerce, Industry, Maritime Trade and Commodity Exchanges of Turkey (TOBB), the Foreign Investors’ Association (YASED), and the Turkish Exporters Board (TIM). The Undersecretariat of the Treasury carries out the secretariat services for the CCIIE.
Council of Ministers issued another Decision on 31 December 2002 to show its support for the Reform Programme. With this Decision, the presidency of the Committee was given to the Minister of State Responsible for the Treasury.
The current stage of improvements within the context of the reform programme can be summarized as follows:
The Foreign Direct Investment Law No. 4875, prepared by taking into consideration the best international practices and recommendations of the FIAS study, was adopted and published in the Official Gazette No. 25141 on 17 June 2003. The Foreign Direct Investment (FDI) Law, which abolishes the authorisation procedure and the minimum capital requirement for the start-up of foreign capital companies in Turkey, foresees that the definitions of enterprise and entrepreneur be in compliance with international standards. In addition, with this law, principles such as the freedom of transfer of investment shares in cases of national act (tax and other state applications), transfer of profits and dividends and company liquidation or sales, and principles of freedom of employment of foreign technical staff, which are established in the current Law No. 6224 Concerning the Encouragement of Foreign Investment, are protected. Furthermore, current provisions of the Constitution and other laws concerning acquisition of real estates, international arbitration, and protection against expropriation are confirmed with this new law.
The Law on Working Licences of Foreigners, which simplifies procedures for the recruitment of foreigners, has been approved by the Parliament and was published in the Official Gazette No. 25040 on 6 March 2003. The same technical committee also drafted a law on compulsory recruitment of special groups (e.g. handicapped, ex-convicts, terror victims).
Law No. 4842 on Amendments to Some Laws was published in the Official Gazette No.4842 on 24 April 2003, in order to facilitate automatic implementation of investment allowances, which is a major example of state aids.
In order to simplify company registration and eliminate duplications, the relevant Law No. 4884 Amending the Turkish Commercial Code, Law on Tax Procedure, Law on Stamp Duty, Labour Law and Social Insurance Law was approved and published in the Official Gazette No. 25141 on 17 June 2003.
The Draft Law amending the Decree Law on the Establishment and Duties of the Turkish Patent Institute, which aims to strengthen the capacity and infrastructure of the Turkish Patent Institute, was submitted to Parliament on 7 January 2003. The technical committee on Investment Promotion has developed a model for a Turkish Investment Promotion Agency and drafted the Law on the Establishment of the Investment Promotion Agency. The Law was submitted to the Prime Ministry. With this arrangement, it is aimed to establish the necessary infrastructure for promoting foreign direct investments in a general framework, and to set up and implement a promotion strategy for foreign direct investments.
The Undersecretariat of Customs has implemented a reform programme to improve its administrative capacity and effectiveness. Important steps have been taken to harmonise customs laws and implement regulations and procedures in line with European Union legislation.
2. Schedule of Necessary Legislative Changes
Legislative changes are not foreseen for this priority. For all the necessary legislative changes in order to abolish restrictions on foreign investments (of EU origin) see Table 4.1.1. in Chapter 4- Free Movement of Capital.
3- Schedule of Necessary Institutional Changes
There are two institutions directly related to FDI: The Directorate General of Foreign Investments, under the Undersecretariat of the Treasury, and the Investment Promotion Agency of Turkey (IPA). The Directorate General of Foreign Investments deals with regulatory issues, FDI statistics, and the reform project. The Investment Promotion Agency of Turkey will be established once the related Law is passed by Parliament.
As part of this specialisation at the institutional level, the General Directorate for Foreign Investments will need to undergo a transformation process to ensure the fulfilment of its new function as a policy-making body acting on accurate statistical information, while the IPA will be established as a new institution to be co-governed by public and private sectors.
Although the fact that necessary additional personnel and training requirements will be defined according to the needs of the newly established institution, it is obvious that the current staff of the General Directorate for Foreign Investments will need additional training on the basis of European Member State experiences to fulfil the function of policy-developer.

4- Financing Requirements and Sources of Financing3
Table 15.2.1 (Euro)

Requirements - (Undersecretariat of Treasury) Year National Budget EU Resources Other Resources Total
I-Investment 2004 150,360 350,840 501,200
II- Harmonisation with the EU Legislation and Implementation
Personnel
Training
Consultancy 2004-2006 3,400,000 3,400,000
Translation
Other
Total 150,360 3,750,840 3,901,200
__________________
Signatürü

YA
TAKSiM;
YA
ÖLÜM








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