International Journal of Commerce and Finance, Vol. 2, Issue 1, 2016, 1-13 FUNDS USED BY THE EUROPEAN UNION IN THE CONVERGENCE APPROACH and TURKEY Ömer Özkan, (PhD) Istanbul Commerce University, Turkey Ahmet Keleş, (Ph.D. Candidate) Istanbul Commerce University, Turkey Abstract The article is to show the twinning mechanism as a convergence tool in a states accession process. Since it’s beginning in 1998 more than 1300 projects have been carried out in the scope of candidate states’ convergence process. Due to these projects the states’ administrative and judicial systems have been restructured. Thus, the capacity of Union legislation’s applicability enhanced and the programs have been used to strengthen the institutional structures in all the sectors in the scope of instrument for Pre-Accession Assistance. Starting from the December 17, 2001 various funds were launched for use in Turkey in order to ensure compliance with the EU acquis communautaire within the accession process of the state and to facilitate the fulfillment of the obligations which are specified in the Acc ession Partnership Document and National Programme of Turkey. The EU funds and their use within the scope of the approach and the contributions provided to institutions implementing the projects to the Legislative System of Turkey are to be discussed in the research. Keywords: European Union, Convergence, EU Funds, IPA, Twinning Project 1. Introduction The convergence tool of EU is the twinning projects mechanism during the new states’ accession process. Thanks to these projects, the candidate countries’ corporate structures are strengthened and restructured in line with the objectives. Thus, the capacity of Union legislation’s applicability is enhanced. Those programs are used within the scope of Pre-Accession Assistance (IPA) in order to strength the corporate structures in all sectors. The twinning projects are provided directly to some of the countries that are within the scope of Partnership and Cooperation agreements between EU and New Independent States from 2003. For example, the support programs were initiated to implement the partnership agreements between EU and those countries in order to enhance the joint work based on the objectives of Euro-Mediterranean Partnership (MEDA) Agreements. The Twinning projects, which are the tool for implementation of Partnership Agreements in the corporate structuring area, are the powerful corporate structuring tool in the context of European Neighborhood and Partnership System (ENPI). The Twinning programs are a good preparation stage in the EU enlargement process as stated in the IPA and ENPI regulations, and are created in order to structure all public capacities of candidate states in cooperation with EU. 2. Enlargement Strategy of European Union and its Convergence Approach toward the Candidate Countries The idea on United Europe of Dante Alighieri, the Italian poet, is available in the book, De Monarchia (About Monarchy) written in 1310. It had been the objective which was dream of European lawyers, historians, politicians and scientists for years. The endeavors toward United Europe were gradually enhanced upon establishment of USA, and even though there were many ideas on establishing the union after the First World War, it took time to adopt those ideas. After the Second World War, the works on united and strong Europe were accelerated and the idea on unification was begun to be declaimed. The first step toward United Europe, which was mentioned by Jean Monnet (Secretary of United Nations) during 1930s, was taken upon establishment of European Council in Strasbourg, 1949. Robert Schuman (French Minister of Foreign Affairs) published the Schuman Plan on 9 May 1950 showing the fact that the cornerstone of United In te rn a ti o n a l Jo u rn a l o f C o m m e rc e a n d F in a n c e 2 Grzegorz Zajac http://ijcf.ticaret.edu.tr Europe was the French-German friendship. He prescribed that France and Germany should have produced the coal and steel together, and all European countries should have participated in the organization to be established. Germany, France, Italy, Netherlands, Belgium and Luxembourg established the European Coal and Steel Community (ECSC) in Paris, 1951. ECSC became a supra-nationalist organization which the states granted some of their sovereignty powers to it. It provided a sustainable peace environment strengthened the unification in Europe and thus, the foundations of EU were laid down. Upon being aware of that the Unified Europe could be established on the economic foundations, six countries, the member of ECSC, had, first, signed the Convention establishing the European Economic Community (EEC) in Roma on 25 March 1957. The European Atomic Energy Community (EURATOM) was established through Roma Convention on 1 January 1958, and the single Council, Commission and Parliament were established for ECSC, EEC and EURATOM, and the Merger Treaty (Fusion Treaty) was signed in 1965, the budgets were merged and for the first time, it was begun to use the term "European Communities". Copenhagen Criteria are the essential conditions which must be met by all candidate countries that their application for EU membership is accepted on June 1993. The criteria that are brought into the force are generally as follows; Political criteria include the conditions on stable corporate structure, superiority of law, human rights and respect to the minority rights; Economic criteria envisage a well-functioning market economy and providing the capacity to resist against the market forces within EU and competition pressure; acceptance of EU acquits communautaire entails that EU should adhere to the various political, economic and financial objectives. Unless adopting the EU acquits communautaire, there will be no unification. The accession process cannot be started with the country that doesn’t meet those criteria. 2.1. EU Enlargement Process The First Enlargement Process is the summit held in Hague, 1969; the first enlargement process resulted the accession of UK, Ireland and Denmark to the Community on 22 January 1972 upon starting the accession process, taking two years, of UK, Ireland, Denmark and Norway that would like to access to the Community, and the number of member increased from six to nine. The Second and Third Enlargement Process; the Accession Treaty was signed between Greece and EU on May 1979; and after the Treaty was approved, the number of member increased to 10 upon accession of Greece to EU on 1 January 1981. Spain and Portugal; the accession process for those countries started during 1978-1979 and resulted the accession of those countries to the Union in 1986, and thus, the number of member of the Union became twelve. Fourth enlargement process; upon accession of Austria, Sweden, Finland to EU in 1995, EU enlarged toward the Center and Northern Europe, and the number of member became fifteen. Copenhagen Summit was another important milestone during the enlargement process of European Union. During the Summit in 2002, the accession process was completed with Check Republic, Hungary, Poland, Slovakia, Estonia, Latvia, Lithuania, Slovenia, GCASC (Greek Cypriot Administration of Southern Cyprus) and Malta. 10 candidate countries signed the Accession Treaty in Athena on 16 April 2003 and became the EU Member countries on 1 May 2004 (Tezcan, 2015). It was stated that Turkey met the political criteria sufficiently on 3 October 2005 and was decided to start the accession process (Tezcan, 2015). Fifth Enlargement Process; European Commission offered the roadmap to Bulgaria and Romania on 13 November 2002 in order to make them full Members of Union in 2007, and they became the member on 1 January 2007 (Tezcan, 2015). Thus, the number of EU member became 27 and the official languages 23. Sixth Enlargement Process; Croatia became the 28th member of EU on 1 July 2013 and thus, the number of official languages in EU became 24, and population reached to 508 million (Tezcan, 2015). 2.2. Today’s EU Enlargement Policy EU determined the problematic areas specific to structure of each candidate country waiting for accession to EU through the experiences gained during the enlargement processes, and laid down them as the customized criteria to such countries. After the enlargement wave during 2004 and 2007, the enlargement fatigue that was felt throughout EU and the debt crisis, which affected EU within the Euro Zone in 2010, brought the problems arising from The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 3 http://ijcf.ticaret.edu.tr enlargement into the forefront. This made the enlargement receded into background for EU in the priority list, and made the conditions for accession to EU more difficult (Tezcan, 2015). At this point, EU Council began to have a voice more efficiently in the enlargement policy, and the Commission, having attitude toward enlargement, began to make the special attempts on enlargement policy considering the special case of each country and the difficulties that it encountered. The Positive Agenda, which was started to accelerate the accession process with Turkey, was implemented based on this approach. European Commission adopted the new approach which put the superiority of law into the center of EU membership process in the Enlargement Strategy Document in 2012. At the framework of new approach, it was envisaged that the negotiation chapters of “Jurisdiction and Fundamental Rights” and “Justice, Freedom and Security” would be negotiated with priority, be followed studiously during the accession process and would be the last negotiation chapters to be closed (Karluk, 2013). European Commission declared in the 2013-2014 Enlargement Strategy that it would attach a special importance to the subjects on superiority of law, economic governance, strengthening of democratic institutions, fundamental rights and good relations with the neighbors during 2014 (Karluk, 2013). 2.3. The EU’s Convergence Model of Candidate Countries Now, EU is an economic and political community consisting of 28 countries. Other countries such as Turkey, continuing the accession process with EU, Macedonia, Serbia and Bosnia-Herzegovina also try to become the member of EU. The question whether any convergence occurred between the countries within the enlarged EU is one of the primary questions about the decision enforcement related to EU toward the future from commencement of Union to today. The convergence fact, which is defined as becoming similar of various economic indicators between one group country or region during the course of time, is assessed in two processes which are separate from, but integrate each other within EU: Real and nominal convergence (Atalay, 2007). The real convergence is considered as the economic criteria which are one of Copenhagen Criteria that are the criteria of accession to EU. It means convergence of economies to each other in the indicators related to living standard, notably the gross national product per capita, harmonization of business cycles and similarity of production and commercial structures (Atalay, 2007). It is stated in the establishment objectives of union that the benefits, which EU countries gain from the membership, are determined as “Directing the community policies and activities so as minimizing the economic development differences between the regions and providing the economic development of underdeveloped regions”. 1 Convergence analyses primarily give information about at which level the enlargement matches with the union’s objectives. Nominal convergence may be identified with the Maastricht Criteria that are the criteria on accession to Economic and Monetary Union. It means the convergence of economies in the areas such as inflation, budget deficit, public debt and stability of exchange rate (Atalay, 2007). It is provided the convergence of countries that will be involved in the Economic and Monetary Union through the convergence in the real and nominal senses, and tried to secure the economic stability. 3. EUROPEAN UNION FUNDS Various funds were allowed by EU for being used2 by Turkey from 17 December 2001 in order that Turkey complies with the EU acquits communautaire during accession process of Turkey to European Union (EU), and in this context, to facilitate that Turkey fulfills its obligations under the Accession Partnership Document provided by EU and National Program issued by Turkey. The second term of Instrument for Pre-accession Assistance (IPA) in the European Union’s IPA II program started so as covering 2014-2020 as of 1 January 2014. Approximately 4.5 billion Euro was allocated by EU to our country 1 Council of the European Union, “Article 158 of Treaty, Establishing the European Communities”, 2001 2 Letter from Ministry of EU to the Ministry of Internal Affairs, Letter related to EU Funds, 2010 4 Grzegorz Zajac http://ijcf.ticaret.edu.tr under the Instrument for Pre-accession Assistance based on the methods and principles changed during the new period (IPA II) for 7 years3. Table 1: EU funds “EU Funds consist of (6) programs as follows: a. Instrument for Pre-Accession Assistance (IPA), b. Multi-Beneficiary and Multi-Annual Programming (MMIPD), c. Technical Assistance and Information Exchange Office (TAIEX), ç. Supporting of Integration Process to EU (SEI), d. Support Program for Improvement in Management in the Central and Eastern European Countries (SIGMA), e. Community Programs.”4 Furthermore, Social Transformation (MATRA), Economic Transformation (PSO) and Environment Programs (G2G.NL)5 are created by the Netherlands government in order to provide the assistance from EU Member countries to the EU candidate countries in accordance with the decision taken by EU Council. The annual share is paid by the participant countries that are participant of Community Programs in order that they may benefit from those Funds only. Other funds are the donations and no share is paid. However, 25% is contributed to the section related to the material procurement of project budget in the projects that are implemented within the scope of IPA. 3.1. Pre-Accession Fiscal Cooperation Program (IPA) 3 Ministry of EU, Turkey-EU relations during 62nd Government, 2014, s. 14. 4 Ministry of EU, Annotation related to EU Funds, 2010 5 Ministry of EU, Turkey-EU relations during 62nd Government, 2014, s. 10. The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 5 http://ijcf.ticaret.edu.tr Upon giving to Turkey the candidate country status during 1999 Helsinki Summit, the fiscal cooperation mechanism between Turkey and European Union was restructured as being in other candidate countries. In this scope, “Framework Regulation related to Pre-Accession Financial Aid for Turkey” was adopted by EU Council as of 17 December 2001. In the Pre-Accession Fiscal Cooperation Program, the Accession Partnership Document, Progression Report, adaptation to the acquits communautaire regarding the legal, administrative, economic and social priorities in the National Program and Pre-National Development Plan, creating the administrative capacity, economic and social adaptation projects are executed. The Prime Ministry Circular, no. 2001/41 and dated 18 July 2001, was issued in order to program, implement, monitor, evaluate and direct the projects by Turkey itself, instead of by EU Commission. Pursuant to the provisions of Circular, the units6 such as National Fiscal Aid Coordinator, Fiscal Cooperation Commission, National Fund and National Authorization Officer, Partnership Monitoring Commission and Central Finance and Procurement Unit are created. The project offers, which are issued by the state institutions and organizations under the coordination of Secretary General of EU, are delivered to the EU Commission through the letter signed by the Minister of Foreign Affairs. Following the approval by (28) representatives from the member countries in PHARE Steering Committee of EU Commission, the “Financial Minute” is signed between EU Commission and Turkey and comes into force upon being published in the official journal. At the next stage, the financial source to be donated by EU to Turkey is transferred to the “National Fund” in the Undersecretariat of Treasury. National Fund is managed by the Central Finance and Contracts Unit (CFCU) on behalf of Undersecretariat of Treasury. The “Fiscal Cooperation Committee”, consisting of the representatives from the Ministry of Foreign Affairs, the Ministry of Finance, Undersecretariat of State Planning Organization, Undersecretariat of Treasury and Secretary General of European Union, was formed in order to provide the necessary harmonization between the works that are carried out at the framework of fiscal cooperation. Fiscal Cooperation Committee is responsible for distributing, implementing and evaluation of financial sources according to the priorities7. Furthermore, there is a “Joint Monitoring Committee”, consisting of the National Financial Assistance Coordinator, National Authorization Officer, and the representatives from the Fiscal Cooperation Committee and European Commission, and meets at least once a year. Sector Monitoring Sub-committees were formed under the Joint Monitoring Committee. The Ministry of Internal Affairs is the member of Sector Monitoring Committee, no. 1 on Justice-Freedom and Security together with the Political Criteria. The reports from the Joint Monitoring Committee include the general matters related to the projects and those reports are also sent to the Ministry of Internal Affairs. Memorandums of Understanding, which create the legal infrastructure related to this new structuring on fiscal cooperation between EU and Turkey, and the Central Finance and Contracts Unit and National Fund are formed through it, were signed on 14 February 2002. The aforesaid documents were approved by TGNA (Turkish Grand National Assembly) on 30 January 2003 and came into force upon being published in the Official Journal on 4 February 2003.8 EU Commission passed its decision on which the created mechanism met the necessary requirements on 8 October 2003, and the actual implementation of projects within the scope of financial assistances was started from this date. In this scope, total budget size of (152) projects in all sectors is beyond Euro 1.5 billion involving; (a) 18 projects amounting Euro 126 million in 2002, (b) 28 projects amounting Euro 144 million in 2003, (c) 38 projects amounting Euro 126 million in 2004, (ç) 35 projects amounting Euro 300 million in 2005, (d) 35 projects amounting Euro 441.650.000 on in 2006.9 6 PM Circular, PM Circular, no. 2001/41 and dated 18 July 2001, http://www.ab.gov.tr/index.php?p=231&l=1 7 PM Circular, 2001/41 8 Memorandum of Understanding between Turkey and European Commission related to Formation of Central Finance and Contracts Unit (CFCU), Annex No. 1, 14 February 2002, http://www.cfcu.gov.tr/files/addendum_no1_tr.doc 9 Ministry of EU, Personal Interview, 2015. http://www.cfcu.gov.tr/files/addendum_no1_tr.doc 6 Grzegorz Zajac http://ijcf.ticaret.edu.tr The projects are implemented in the tender method, and the tenders are announced on service, procurement and currently the construction, even if in the less number. Significant number of project is implemented by using the twinning mechanism envisaging the cooperation of EU member countries with the concerned state institutions. In the twinning mechanism, Turkish state institutions are brought together with the state institutions of EU member countries and it is allowed them to work together. In the twinning mechanism, the representative from the state institution of one EU member country works in a Turkish state institution minimum for one year. Another method, which is not used frequently, is to conclude the contracts directly with the international organizations, especially which have the know-how on certain subjects. In the Twinning project mechanism, the view is mentioned by EU Commission, stating that first, the work on corporate structuring and adaptation to EU acquits communautaire should be carried out, and that this work may be carried out upon working with a member country on legislation and best practices, and that at the second stage, the infrastructure projects may be implemented, and this system was implemented in the former candidate countries. 10 30% of twinning projects consist of legislation (bill drafting, strategy document, action plan), 10% material procurement and 60% training provided by the foreign experts in Turkey. Project training also covers the business visits of less number of staff in the EU member countries. The subsistence and national travel allowances of staff, who participate in the business visit, are paid by EU from the project budget and international travel expenses by Turkey. The project offers related to the next year are sent by the state institutions to the General Secretary of EU in September per year. The project offers, which are deemed proper by the General Secretary of EU, are notified to the EU Commission as “Turkish Project Offers”, and following the examination by the Commission, the project offers, which had the pre- approval during the meeting held upon participation of the representatives from the concerned institutions and EU Commission under the coordination of Secretary General of EU, are listed.11 The project receipt, involving the details of listed project offers, is issued by the representatives from the concerned institutions and EU Commission and sent to the Secretary General of EU with the official letter from the concerned institution. At the next stage, the project receipts are sent by the Secretary General of EU to the EU Commission with the letter signed by the Minister of Foreign Affairs. The project receipts, which are approved by the Project Steering Committee, are circulated throughout the EU countries in order to determine the country that will implement the project. (The Project Steering Committee (PHARE Steering Committee)12 is the affiliate of EU Commission’s General Directorate of Enlargement and consists of the representatives from (28) member countries after 01 January 2007. It is a committee which passes the high-level decisions related to the projects that are implemented in the new member countries and candidate countries. The Committee meets (4) times a year. The officers of EU Commission avoid submitting change of decision which is passed to the Committee, because it is not easy to obtain the consensus of (28) member countries. After the projects are approved in Brussels, the Financing Agreement is concluded between Turkey and EU Commission. This programming process takes about (9) months. The country that will implement the project is determined by Turkey.13 The prepared project contract is signed by the officer from the selected country/international organization, officer from the concerned Ministry of country that offers the project, officer from the concerned institution, President of Central Finance and Contracts Unit and the Chairman of the Turkish Delegation of EU Commission. As is, the project contract is an international agreement. “Direct Donation Program” was initiated covering the project implementation with the international organizations within the scope of Fiscal Cooperation in 2003. All costs are paid by EU from the project budget in Direct Donation Program. In case of project cancellation, the sanctions may be imposed such as; a. Protesting Turkey at the Ministry of Foreign Affairs, 10 Secretary General of European Union Directorate of Education and Corporate Structuring, Twinning Mechanism and Turkey, Ankara, 2011, s.1. 11 a.g.e., s. 3. 12 a.g.e., s. 8. 13 a.g.e., s. 9. The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 7 http://ijcf.ticaret.edu.tr b. Being obliged to compensate the expenses which are incurred by the Turkish state institutions from the project budget until such time, (In case of cancelling a project which is implemented within the scope of Fiscal Cooperation Program, all expenses, incurred by the EU Commission for the project until such time, is claimed from the concerned country together with the legal interest as a legal obligation, and the said amount is requested from the concerned state institution.), c. Pending the negotiations, ç. Criticizing Turkey and the Turkish state institution, cancelling the project with the high expressions in the progression report issued by EU Commission, d. Blocking our membership, representation in the international organizations and assigning the personnel in the BDK movements and missions that are implemented under the EU coordination. e. In this scope, disregarding the project offers to be made by the Turkish state institution cancelling the project for the future and excluding it from the international organizations within EU constitution may be in question. The Fiscal Cooperation Program is regulated by EU again as “Instrument for Pre-Accession” (IPA) so as being implemented during period covering 2007-2013. There are (5) main topics in the Instrument for Pre-Accession. Those are as follows; a. Developing the Corporate Capacity, b. Regional and Cross Border Cooperation, c. Regional Development, ç. Human Resources, d. Rural Development.14 3.2. Multi-Beneficiary and Multi-Annual Programming (MMIPD) The aim of program is to solve the problem of integration with EU which the Balkan countries encounter and to have the reforms that are necessary to become the member of EU implemented. The project offers within the scope of MMIPD Program are made by EU Commission, Candidate Countries (Turkey, Croatia) Potential Candidate Countries (Albania, Bosnia-Herzegovina, Macedonia, Kosovo, Montenegro and Serbia) and EU Member Countries (minimum two countries). The international organizations (United Nations, Organization on Security and Cooperation in Europe - OSCE, Interpol, Europol, Eurojust and South East European Cooperation Initiative-SECI) may also participate in the projects. Implementation period of projects varies between (3) years and (6) years. Secretary General of EU is responsible for the coordination of MMIPD Program in Turkey. (2) Projects were offered by the EU Commission related to participation of Turkey in justice and internal affairs within the scope of MMIPD Program until today. The Ministry of Internal Affairs did not participate in the said projects (Project of Supporting the Social Institutions and Criminal Justice: Witness Protection Project in the Organized Crimes). Since more than one country and international organizations participate in the projects within the MMIPD Program, it is almost impossible to cancel the project or to leave of any institution from the project. However, in case leaving from the project, EU Commission claims all expenses incurred for that country within the scope of project together with the legal interest until such time from the concerned country, and the said amount is also claimed from the concerned state institution. 3.3. Technical Support and Information Exchange Office (TAIEX) It was established as the affiliate of EU Commission’s General Directorate of Enlargement in 1996 in order to assist to the candidate countries of EU in the works of adaptation to legislation.15 TAIEX Fund was made available to Turkey from 15 March 2002. The budget of activities to be carried out within the scope of TAIEX is limited. The information exchange is provided via expert support, business visit, workshops and seminars in order to meet the short-term needs in 14 a.g.e., s. 15. 15 General Information about TAIEX, http://www.ab.gov.tr/index.php?p=42118, (Accession Date: 11.11.2015) http://www.ab.gov.tr/index.php?p=42118 8 Grzegorz Zajac http://ijcf.ticaret.edu.tr establishing the administrative structures that are necessary for adaptation of legislation and implementation in the candidate countries.16 For example, Gendarmerie General Commandership participated in (26) activities which were carried out by other state institutions and organizations within the scope of TAIEX with (101) staff during 2001-2008. (The said activities are generally the Seminaries and Workshops on the Protection of Financial Interests of EU and Euro Forgery, Environmental Crimes, Crimes related to the Cultural Assets, New EU Legislation on Refuge and Immigration, Freedom of Expression, Anti-Terrorism, Illegal Trafficking of Narcotics and Human between Turkey and EU.) (1) workshop and (1) business visit, among the offers made by Gendarmerie General Commandership within the scope of applications for the 3rd term of TAIEX in 2008, were accepted by EU Commission. The execution of any activity, which is approved in TAIEX Fund, is fully under the initiative of institution which makes the offer. The activity is kept waiting in the program for two years, and at the end of two years, if it is not executed yet, it is omitted from the program itself, and the budget, allocated to the activity, is returned to the EU Commission. 3.4. Fund for Support Activities to Strengthen the European Integration Process-SEI It is executed under the coordination of Secretary General of EU in order to meet the short-term technical support needs related to the works on project preparation and adaptation to EU acquits communautaire of institutions during the European Union (EU) adaptation process. SEI Fund is also similar to TAIEX. However, the program of any activity in SEI is planned in coordination with the Secretary General of EU or Central Finance and Contracts Unit (CFCU). In the event that any activity within the scope of SEI is cancelled, the budget allocated to the activity is used by Secretary General of EU for another activity. SEI is executed in three fields. Those are; a. Supporting the preparation of projects that are planned to be implemented by using EU funds (feasibility and detailing works for the projects), b. Strengthening the adaptation to EU acquits communautaire (developing of corporate capacity and human resources), c. Supporting of institutions responsible for coordination of EU Pre-Accession Fiscal Cooperation Program (such as Central Finance and Contracts Unit).17 The activities that may be demanded at this framework may be executed such as; a. Issuing the technical specifications of projects (Methods of preparing the tender files on procurement of construction, audit and material in line with the PRAG (Practical Guide) rules, forming the EU legislation on tender), b. Technical assistance activities (Administrative legislation examinations, issuing the bill drafts, etc. in order to adapt the EU acquits communautaire), c. Works on increasing the awareness related to the EU Fiscal Cooperation process (training on project loop, etc.), ç. Business visits, participation in the conferences, organizing the workshop or seminary in EU countries with SEI on the bases of aforesaid matters, however, it is not possible to make request such as including the material procurement or making construction.18 3.5. Support Program on Developing the Management in the Central and East European Countries (SIGMA) SIGMA Program is a program which was started with the common initiative of EU and OECD in 1992. At the beginning, it was planned for Central and East Europe, but then, enlarged toward the Western Balkan countries. Program targets a quality public management. In this scope, (9) primary areas were determined. Those are the design and application reform, external and internal audit, fiscal issues, legal framework, service to the citizen, justice, policy 16 Technical Support and Information Exchange Office (TAIEX) 2002, http://ec.europa.eu/enlargement/taiex/index_en.htm, (Accession Date: 09.11.2015) 17 Ministry of EU Directorate of project Implementation, Activities of Supporting the Integration Process to European Union SEI, Ankara 2012, s.6. 18 a.g.e., s.12 http://ec.europa.eu/enlargement/taiex/index_en.htm The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 9 http://ijcf.ticaret.edu.tr and strategy, public integrity system, public expense management, public procurement regulation policies (Acar, 2011). The organizations such as Anti-Fraud and Corruption Office (OLAF) of EU, European Agency for Restructuring (EAR), European Neighborhood and Partnership Instrument (ENPI) may participate in the SIGMA projects upon request by the institution which offers the project. a. Community Programs; There are (21) “Community Programs” available to Turkey in order that the activities related to integration of Turkey to EU are executed, except the projects which are executed within the scope of EU Fiscal Cooperation Program. The community programs are created in order to support the placing of Europeanism consciousness and innovation and entrepreneurship understanding and to contribute to the creation of common solutions to the problems which Union encounters with upon developing the cooperation between the EU member countries. The candidate countries must provide the contribution to the program cost in order to participate in the Community Programs. The contribution is determined based on the Gross National Product or population of each country. Some part of the said contribution is paid from the EU’s funds themselves in the payment of contribution in order to support the candidate countries. However, since there is not any amount to be donated in the funds allocated to Turkey from 2007, the Ministry of Foreign Affairs requests the institutions which would like to participate in the Community Programs to pay the contribution themselves. Under these circumstances, it is quite difficult that the institutions participate in the community programs. The candidate countries should sign a Memorandum of Understanding involving the information about accession principles and contribution to be paid with the European Commission in order to participate in the Community Programs. The Memorandum of Understanding is signed individually for each program. Turkey, which gained the candidate country status during the Helsinki Summit in 1999, acquired the right of participation in all EU programs which are open to the candidate countries as a principle. “Framework Convention on General Principle related to the Participation of Republic of Turkey in the Community Programs between the Republic of Turkey and European Community” was prepared in order to establish the legal basis for participation of Turkey in all Community programs which are open to all candidate countries (Karluk, 2014). The aforesaid convention was approved by Turkey on 26 February 2002 and came into force upon being published in the Official Journal on 05 September 2002. Text of the same convention was approved by EU on 17 December 2001 and also came into the force upon being published in the Official Journal of EU on 02 March 2002 (Karluk, 2014). According to the Framework Convention which consists of total (10) articles, all programs that are open to the participation of candidate countries from East and Central Europe are also made available for participation of Turkey, and it is envisaged that Turkey shall contribute financially to the general budget of European Union for all programs which it will participate in. Through the contribution to be provided, the projects or initiatives prepared in Turkey are subjected to the same conditions, rules and procedures as those applied to the member countries. 3.6. AGIS Program It is targeted to provide the high level of patronage to EU citizens in the fields of freedom, security and justice, developing the EU policies valid in such fields, information exchange, and to support the education and research.19 Three sub-programs were added to AGIS Program in 2007 as follows; a. Prevention of and Fight against the Crime, b. Criminal Justice, c. Management and Prevention of the Results of Other Risks related to the Terrorism and Security20. 3.7. PERICLES Program The activities are carried out on increasing the awareness in currency, enhancing the mutual trust by developing the cooperation environment, and organizing the high level of education activities. 19 Sakarya University International Relations Coordinatorship, Financial Assistance Available to Turkey, Project Support and Donation Programs, 2009 20 AGIS Program 10 Grzegorz Zajac http://ijcf.ticaret.edu.tr The third countries having the specialism on a specific field and EU candidate countries are invited to the program. The staff of anti-fraud institutions, intelligence staff, the staff of national central banks and commercial banks, judicial staff and advocates specialized on this field may obtain the support from program. 3.8. Jean Monnet Program It is a one year scholarship granted for master degree on headings of EU acquis communautaire. The French Jean Monnet, who was considered as the originator of EU, is the person who prepares the text of well-known Schuman Declaration advocating the idea of integrating Europe. Therefore, EU institutions attach the great importance to carry on his name, Jean Monnet. The EU professorship chairs, established under the name of Jean Monnet in many European countries including Turkey, are supported and it is encouraged the establishment of new ones. Jean Monnet scholarships have been, for the first time, initiated with the agreement between Turkey and European Commission in 1989. 500 persons have benefited from the scholarship since 1990. The participation is provided in the seminars which, especially are organized by the Gendarmerie of EU countries such as France, Spain and Portugal within the scope of “Framework Program on Cooperation of the Law Enforcement Officers and Judicial Authorities-AGIS program”. Moreover, besides the AGİS Program, program of Protection of Euro Against Fraudulent (PERICLES) and JEAN- MONNET Higher Education Scholarship Programs were participate in once of each. 3.9. Framework Programs The Framework Programs were created by European Union within the scope of Community Programs in order to converge the various policies and applications of candidate countries in the science, research and technology development areas to each other from 1984. EU Framework Programs are the primary Community Programs which multi-national research and technology development projects are supported within European Union (EU). The Framework Programs, which the first one started in 1984, are the multi-annual programs, and the scope and the budget allocated to the program are enhanced pro rata the years. The primary objective of Framework Programs is to strengthen the scientific and technologic fundamentals, support the industrial competition and to encourage the interstate cooperation (Demirkıran, 2010). Within the scope of strategy which is mentioned during the Summit Meeting held by EU on March 2000 and called Lisbon Strategy, it is aimed that EU becomes the ''the most dynamic information-based economy of the world”. The Framework Programs provide the financial support to the “projects” which will contribute to realizing of Lisbon objectives of EU and will create the economic and social value added in Europe (Demirkıran, 2010). No quota was allocated to the countries that participate in the Framework Programs of EU. The financial support is provided as a result of objectively evaluation of projects which meet the requirements indicated in the project offer invitations by the referees. The legal entities that would like to take the share from this pool are supported on the basis of their project achievements disregarding their nationalities and whether they reside in the candidate or associated countries (Norway, Liechtenstein, Israel, Switzerland and Iceland). The candidate or associated countries that participate in the Framework Programs have the same rights and responsibilities as the EU member countries. Framework Programs include; a. The first framework program 1984-1987, b. The second framework program 1987-1991, c. The third framework program 1991-1994, ç. The fourth framework program 1994-1998, d. The fifth framework program 1998-2002 (The external participation was provided without payment of contribution by Turkey), e. The sixth framework program 2002-2006 (The participation was provided upon payment of contribution at Euro 231 million by Turkey, but only Euro 48 Million was returned), f. The seventh framework program 2007-2013 (Euro 425 Million of contribution was paid by Turkey.). The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 11 http://ijcf.ticaret.edu.tr g. The 7th framework program, which started on 01 January 2007 and will be enforced until 2013, aims to collect all EU initiatives related to the research under the joint roof in order to achieve the Lisbon objectives (Akçam, 2006). ğ. It is expected that the scope of 7th framework program, which was built upon the achievements of previous Framework Programs, would play a key role to re-implement the Lisbon Strategy together with its organization, application structures and administrative tools (Akçam, 2006). h. The cases that includes 7. Framework Programme; I. It is expected that it would take seven years, instead of four years different than other Framework Programs, II. Emphasizing the research themes rather than tools, III. Simplifying the activities and application tools, IV. Focusing on research-development which meets the European industry’s needs through the Technology Platforms and the activities of new Joint Technology Initiatives, V. Forming the European Research Council which provides the support to the Europe’s best scientific activities, VI. Integration of international cooperation, VII. Developing of Information Zones, VIII. Forming the financial structure including the risk sharing in order to enhance the participation of private sector in the research activities, IX. Having 9 sub-zones under the Special Cooperation Program. ı. Legal and real entities, which are established in accordance with the national/international legislation and EU legislation, may apply to the Framework Programs. In this scope, the universities, research centers, industrial organizations and non-governmental organizations as well as the state institutions may also participate in the Framework Programs. The minimum number of participant in the projects and the requested qualifications vary according to the project type. The primary requirement that is requested in all applications to the Framework Programs is the cooperation. In general, there must be minimum (3) different EU member countries, and (3) independent organizations from the candidate countries or associated countries in the project. After the minimum number of participant is obtained, the international organizations and third country’s organizations may also participate in the projects. 3.10. MATRA, FLEX and G2G.NL Programs There are PSO, MATRA, FLEX and G2G.NL Programs which are supported by the Netherlands’ Government in accordance with the EU Commission’s decision, except the funds made available by EU Commission. MATRA means the “Social Transformation” in Dutch. This program aims to contribute to the formation of environment and structuring related to the implementation of EU acquits communautaire in the candidate countries, to support the civil society and private entrepreneurship, and to create the strong interaction mechanism between the citizens and public authorities during the candidature process. The priority of National Program is taken as basis in the activities to be carried out within the scope of MATRA. MATRA Projects are limited with the transferring of specialty and information to the beneficiary country, technical assistance, consultancy and education activities and creating of mechanisms related to the implementation of EU acquits communautaire. The infrastructure development activities, material procurement, humanitarian aid, inspection, research and academic studies are not financed within the scope of MATRA.21 The project budget should maximum be Euro 400.000 and the project is completely financed from the MATRA budget, but no contribution is provided from the national budget. The equipment such as hardware, software and technical materials may be purchased with maximum 10% of the project budget. 15 MATRA Projects were executed in Turkey until today. 21 Ministry of EU, MATRA,FLEX and G2G.NL Programs, http://www.ab.gov.tr/files/Mali_Yardimlar/Matra/list_of_projects_long_programmes_2008.xls (Accession Date: 09.11.2015) http://www.ab.gov.tr/files/Mali_Yardimlar/Matra/list_of_projects_long_programmes_2008.xls 12 Grzegorz Zajac http://ijcf.ticaret.edu.tr The primary topics are determined as the riot policing, strengthening of justice, improvement of prison system, migration and development of Lisbon Strategy, strengthening the capacity of fighting against the organized crimes and anti-corruption within the MATRA Program for the period 2009-2010. PSO (Programma Samenwerking Oost Europa) Pre-Accession Program aims to support Turkey in order that it meets the economic criteria necessary for its EU membership. Program is carried out under the coordination of Netherlands’ Ministry of Economy, and includes providing the financial support to the full-scale and long-term projects including the information and experience exchange between Turkey and Netherlands, transferring of business, material and service. The business visits, seminary or short-term projects are also realized within the scope of PSO. The state institutions and private sector firms may participate in the PSO Program individually or jointly. 15 PSO Projects were executed in Turkey until today. The priorities are determined as protection of private sector from the crisis, strengthening of free market economy and financial management in conformity with EU in PSO Program during 2009-2010. G2G.NL Program supports the projects related to the harmonization of primary and secondary EU acquis communautaire on environment and the environmental module within the big project. G2G.NL Program is executed under the coordination of Netherlands’ Ministry of Housing, Map Planning and Environment, and its total budget is Euro 4.300.000. The aim of G2G.NL is to support the state institutions in the EU candidate countries on development and implementation of national policy related to environment conforming to the EU acquis communautaire. 8 G2G.NL Projects were execute din Turkey until today.22 In the G2G.NL Program, the priorities are determined as protection of water resources, waste management, renewable energy and food safety and development of rural area for 2009-2010. 4. CONCLUSION Determining which factors of EU candidate countries mostly play the role during the real convergence process is also very important regarding formation of policies of the candidate countries during the accession process. It is assumed that good understanding of which factors direct the real convergence process of new candidate countries during the EU accession process and detailed examination of country examples would be loadstar for Turkey regarding the policies to be followed in the future period. In this scope, it is considered that Turkey, which is strengthened and developed with the corporate twinning projects to be formed through EU funds and has the corporate structure in the EU standards, would be stronger in the journey to Europe. References Ministry of EU, Turkey-EU relations during 62nd Government, 2014, s. 10. Letter from Ministry of EU to the Ministry of Internal Affairs, Letter related to EU Funds, 2010 Ministry of EU, Annotation related to EU Funds and Projects, Ankara, 2010, s. 1. SGEU Directorate of Education and Corporate Structuring, Twinning Mechanism and Turkey, Ankara, 2011, s.1. AKÇAM Seda, Avrupa Birliğinde Bilgi Toplumuna Geçiş Çalışmaları, 2006, TOBB Bilgi Hizmetleri Dairesi, s. 16. ATALAY, S. Serpil Uzmanlık Yeterlilik Tezi, Türkiye Cumhuriyet Merkez Bankası Dış İlişkiler Genel Müdürlüğü, Ankara, 2007, s. 1. PM Circular, PM Circular, no. 2001/41 and dated 18 July 2001, http://www.ab.gov.tr/index.php?p=231&l=1 DEMİRKIRAN Özlem ve Diğerleri, Türkiye-Avrupa Birliği İlişkilerinde Son Dönem, Niğde Üniversitesi İİBF Dergisi, 2010, Cilt:3, Sayı:1, s.57-75. KARLUK, S. Rıdvan, Avrupa Birliği, İstanbul: Beta Yayıncılık, 2014, s. 1. KARLUK, S. Rıdvan, Avrupa Birliği Türkiye İlişkileri, İstanbul: Beta Yayıncılık, 2013, s. 392. Memorandum of Understanding between Turkey and European Commission related to Formation of CFCU (Central Finance and Contracts Unit), Annex No. 1, 14 February 2002, http://www.cfcu.gov.tr/files/addendum_no1_tr.doc 22 Ministry of EU Personal Interview, 2015. http://www.ab.gov.tr/index.php?p=231&l=1 http://www.cfcu.gov.tr/files/addendum_no1_tr.doc The Scope of State Aid and Public Service Obligation for Airports and Air Carriers in the Light of European Law 13 http://ijcf.ticaret.edu.tr General Information about TAIEX, http://www.ab.gov.tr/index.php?p=42118, (Accession Date: 11.11.2015) TAIEX (Technical Support and Information Exchange Office) 2002, http://ec.europa.eu/enlargement/taiex/index_en.htm, (Accession Date: 09.11.2015) TEZCAN Ercüment, İlhan Aras, Altuğ Günar, Avrupa Birliğinin Doğu Avrupa ve Batı Balkanlar Genişlemesi, İstanbul: Sentez Yayıncılık, 2015, s. 46. http://www.ab.gov.tr/index.php?p=42118 http://ec.europa.eu/enlargement/taiex/index_en.htm