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Towards an ever closer Partnership

KAS/CSEPS/MFA Workshop on Future of EU/Israel Relations

The Konrad-Adenauer-Stiftung, the Centre for the Study of European Politics and Society at Ben-Gurion University of the Negev in cooperation with the Israeli Ministry of Foreign Affairs are holding a series of round tables which aim to come up with new ways and models for an ever-closer partnership between Israel and the EU under the European Neighbourhood Policy (ENP). It includes five two-day workshops which focus on the issues of: climate change; higher education; economic relations and industrial cooperation; approximation of legislation, norms and standards and immigration.The first workshop in this series of round tables focused on the subject of economic relations and industrial cooperation. It brought together a group of experts in specific economic fields who reflected together on the next steps in strengthening the Israeli-European relations. The recommendations and policy-oriented papers of this forum will be submitted to the EU-Israel reflection group and thus will contribute to the formal process of further economic integration between the parties.

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EU Commission Ambassador to Israel, Ramiro Cibrian-Uzal, addresses the workshop. To his left: Dr. Lars Hänsel, KAS Jerusalem; Shmuel Ravel, Israel Ministry of Foreign Affairs; Dr. Sharon Pardo, CSEPS.

During the discussion, the following issues and points were raised by different speakers:

10 December 2007 - Day I

  • Israel has to put more emphasis on services than trading in goods, which currently makes up the larger share of trade between Israel and the EU. It has to go towards a direction of harmonization in standards. We have to study this issue much more carefully.

  • Israel should move forward in mutual recognition of international standards.

  • The EU and Israel have to develop mutual confidence. Especially after September 11 we have more points for collaboration with the EU. On the other hand, during the last years Israel admitted that EU has also a legitimate interest in this region.

  • In economic regards, Israel is much more oriented to Europe and therefore it is hard to compare it with its neighbors. There should be greater differentiation in this matter. This does not mean that Israel is not willing to cooperate with other countries in the region.

  • Israel and the EU have similar policies and programs and we should be able to have a greater participation in European groups and programs. We need to establish mechanism where we can be notified in programs which are initiated in the EU and go beyond the ENP. The best situation would be to get the planning papers in advance, to see if there is something new that is planned so we could decide if we want to be part of it.

  • Israel should join the EU market, similar to the EEA model. It will create a predictable atmosphere for business. This could be very good though it require a high price, such as the EU regulations – not all of them are necessary for Israel.

  • In the Action Plan of the ENP, Israel agreed to establish a joint committee that worked and made some progress on judicial issues. It conducted seminars on the topics of human trafficing, criminal issues, introduction on the European system to judges and more. We hope to upgrade our relation with the EU and to go beyond this kind of cooperation. However, when we asked to participate in European forums that deal with these issues we did not receive many positive responds. They did not want to invite us.

  • The EU companies are mainly doing business in mid-tech and not in high-tech. They are not aware of what is happening in the high-tech sector. Out of the Israeli export to the US, 60% was high-tech, 40% was mid-tech. For Europe, the figure is 40% high-tech and 60% for mid-tech. We might do better marketing for Israeli hi-tech.

  • Israel has to change the level of protection of food and agriculture produces. It should be assisted by the Europeans in formulating a common policy in reducing this protection on agricultural products, in order to lower their price.

  • Israel does not have the same protection of the intellectual property as Europe; we should completely adopt the European protection.

  • The defense in Europe has become a more central issue, they do not exactly know yet what they want to do regarding the matter, but Israel has watched and followed these processes, since it surely has something to offer in this matter.

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Uriel Lynn, Federation of Israeli Chambers of Commerce; Prof. Jimmy Weinblatt, Ben Gurion University, and Shmuel Ravel (from left).

11 December 2007 - Day II

  • Israel should close the gender gap in the working market, as it is happening in Europe.

  • The Israeli MFA could appoint and seek the advice of an expert public health consultant on EU-Israel projects in health to back up diplomacy with the technical know-how and experience to get projects on the ground already in 2008. Any dramatic health challenges coming from Africa will hit Israel first. Europe will also benefit from an Israeli developed mechanism of training and capacity building to prevent it.

  • Israel should adopt its legislation to the 21st Century: Cross-border outlook based on international standards, friendly to the OECD and the WTO, a non-discriminative one with regulatory, pluralistic, flexible and streamlined framework and which addresses concerns of modern financial markets.

  • The objectives of Israeli agriculture policy for 2008 should be: to secure a stable supply of fresh agriculture produce at a fair price, solidify the agriculture sector and increase of exports of agricultural produce, solidify the rural sector in the peripheral regions while developing and diversifying the economical activities, animal welfare and preserving “open spaces.” With regards to the EU, Israel will not benefit from funds resulting from reforms in the EC or from any ENP funds targeting trade. There is a low probability for any funds on the public aspects of the rural sector.

  • According to the ENP report of 2006, Israel did not establish yet an independent regulatory authority for electronic communication, as it undertook to do under the ENP Action Plan. Today the ministry is covering most of the subjects and two other authorities - the Second Authority for Television and Radio and the Cable Companies. We need help from the EU, to revive the decision and even put a reasonable pressure in order to help us implementing this curtail need. It is stuck only due to the lack of political will.

  • The European regulator groups for electronic communication networks and services are forums for debating and for advice for the commission. These are very important groups of which its members are the member states and observers and they may invite other members to attend the meetings. We have requested to be admitted as observers due to the importance of us because coming closer to the European regulatory framework. However, Israel has been told that it cannot join as observers since it is not an independent authority though there is no such a rule for observers. Israel is part of the ENP so there is much point for us to be there.

  • Roaming regulation is about setting a price cap for phone calls in an external area. In June 2007 the roaming regulation was discussed in the EU. Israeli services should also be included in this arrangement. In a meeting in Rome between the MEDA countries and the ERG that was recently held, the Israeli representatives presented this request.

  • Open sky is on its way already - things are in progress, Israel should take a reconsideration on the coacher agreements. Overbooking, long delays, and cancellation of flights: the Israeli regulation deals only with overbooking and not other delay and that must change. The Israeli government must promote regulation that will allow securing traveler's money. This is very unfavorable to tourist agents who cannot compete with other European agents who do provide it.

  • It is well known that many projects start in a small framework and need to recruit funds and help in counseling and developing. EIF - European Investment Fund (PP). The EIF offers two instruments to such startups: investments and guarantees in order to those startups to get loans. Israel is not entitled to be financed by the EIF. However, during the last year the EU has developed the ATLAS 2 programme which invests in technology in Europe and Asia and the ENP countries.

  • While the EIF should approach the startups and private sector, the EIB should focus on its work with governmental institutions or municipal ones.

  • Israel is eligible to IFCF. It should map all the programs and see who is getting the money and who has difficulties in getting it. We have to work together with the SMEs to be sure that the money is not getting lost.

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The two-day workshop took place in the Konrad Adenauer Conference Center in Jerusalem.


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