This document reviews progress in vocational education and training (VET) reform in the candidate countries for accession to the European Union in light of developments in European policy on vocational training. The document consists of a cross-country overview and individual overviews of VET in 12 candidate countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, Slovenia, Cyprus, and Malta. The cross-country overview begins with an executive summary of the most important transversal issues emerging from the country overviews and critical aspects considered key priorities for the modernization process (ensuring new legislative arrangements' financial and legislative sustainability; upgrading the quality of initial VET; and addressing the adult population's skill deficits). All overviews are divided into the following six sections: overall assessment; key priority areas for future assistance; initial VET; continuing VET; overview of key employment issues; and contribution to the process of innovation. Discussed within the sections on initial and continuing VET are the following topics: legal and conceptual framework, administrative and institutional framework, and financing; human resources in program administration, key features in program delivery, links with labor market/enterprises, national system for qualifications, assessment, and certification; and participation; and vocational integration of young people. (MN)