150
Diop
The convertibility of the Moroccan dirham, which is convertible only for current transactions, is also an issue: full integration within the EU banking market is not conceivable without full convertibility. Morocco has decided to gradually move toward full convertibility and to allow freer capital movements. However, the authorities recognize the need to strengthen the sector as a precondition for the successful liberalization of capital flows. They also fear that capital account liberalization may lead to capital flight and corruption, as foreign banks may be used as an easy channel for capital drain. The challenge for participating in the EU banking acquis is daunting. The gap between Moroccan and EU regulation is wide, a reflection of the development gap between the two entities. In the short term, it is desirable to focus on implementing the regulatory reforms in the 2006 banking law. On the supervision side, a priority is to strengthen the credit institutions’ supervision directorate at the central bank and to reinforce coordination of the supervisory authorities for the banking, insurance, and stock market operations. The ENP’s other instrument, twinning, seems more suitable to help strengthen the independence and effectiveness of the banking and insurance markets.
Maritime Transport and Port Services Morocco’s ENP action plan emphasizes the need to increase the competitiveness of the maritime sector, promote short sea shipping, introduce competition in port services, strengthen the maritime authorities, train seafarers with regard to safety and the prevention of sea pollution, implement relevant international conventions, and continue to align maritime legislation with that of the European Union. Although convergence to EU maritime legislation is cited among the goals, the action plan is not specific about what regulatory convergence with the EU acquis in maritime transport means. In the short term, convergence with EU maritime regulations is a daunting task.6 Regulation 4055/86, for example, would require the phasing out of any national restrictions that reserve the carriage of goods or passengers between countries to vessels flying the national flag (the transport of goods or passengers between states is not covered by this regulation). Existing cargo-sharing arrangements in bilateral agreements with non-EU countries are to be adjusted or phased out according to this regulation. If such agreements are not phased out, they have to be brought into conformity with EU law. Regulation 954/79 provides that the cargo-sharing formula contained in the maritime code shall not be applied between EU member states or,