The European Parliament will express concern about Turkey treatment of media company Dogan Yayin this week, reinforcing criticism over a lack of progress on reforms needed to join the bloc.

In a report on European Union enlargement which is due to be approved tomorrow, the assembly will urge EU governments to carry on with efforts to bring in countries from the western Balkans, provided they implement the necessary reforms.

But the new concern over press freedoms in Turkey is a setback to Ankara because the report will contribute to a debate on enlargement at an EU summit on December 10-11, which will include discussion of Turkish compliance with commitments to the EU.

The draft report, obtained by Reuters, said the parliament was ‘concerned about the situation in the area of freedom of expression and freedom of the press (in Turkey), particularly following the unprecedented fine imposed on a media group’.

It referred to Dogan Yagin, which is challenging a record 4.8 billion lira (3.2 billion dollar) tax fine after the failure of settlement talks with tax officials.

Dogan Yagin has been in dispute with the Turkish government over its critical coverage for more than a year. Critics of the government say the case against the company, which controls half of Turkey private media, is politically motivated.

The draft report praised Ankara for progress towards membership in some areas but listed shortcomings such as insufficient freedom of religion and a failure to normalise relations with EU member Cyprus.

Turkey has not carried out a promise to open its ports to the Mediterranean island, which was divided in a Turkish invasion in 1974 that was triggered by a Greek-inspired coup.

Report upbeat on Croatia, Iceland Turkey became an official EU candidate in 2005, along with Croatia, but has made only slow progress towards membership. Its accession bid faces hostility in several countries including Germany and France.

The report said Croatia should be able to finish membership talks with the EU by mid-2010. This should allow the country to become the EU 28th member state by 2012.

It said Iceland was expected to receive EU candidate status soon. The North Atlantic island applied to join the bloc this year and is widely expected to accede at the same time as Croatia or soon afterwards.

The parliament report urged EU leaders to endorse at their summit a European Commission recommendation to open entry talks with the Former Yugoslav Republic of Macedonia.

It urged Macedonia and Greece to settle a name dispute over the former Yugoslav republic. Greece has veted Macedonia accession to NATO, saying the country name implies territorial claims to Greece own province of Macedonia.

Echoing findings by the executive European Commission, the report said other Balkan countries were making uneven progress towards membership.

But it said the EU should be ready to reward the countries -- Serbia, Albania, Bosnia, Montenegro and Kosovo -- with ever closer membership prospects when they implement agreed political and economic reforms.

REUTERS