A4-0240/96

Resolution on the Commission Decision on the establishment of the Community support framework for Community structural assistance for the Greek regions concerned by Objective 1, which is the whole country

The European Parliament,

- having regard to the Commission Decision (C4-0036/96) ((OJ L 250, 26.9.1994, p. 15.)),

- having regard to the second Community Support Framework for economic and social development in Greece,

- having regard to the regional development plan (1994-1999) submitted on 10 September 1993 and amended by the annex submitted by the Greek Government to the Commission,

- having regard to petition No 307/94,

- having regard to the report by the Committee on Regional Policy and the opinion of the Committee on Social Affairs and Employment (A4-0240/96),

A. whereas the economic and social development of Greece encounters certain basic obstacles owing to:

- the remote position of the country within the European Union,

- the serious lack - and low completion rate - of social and economic infrastructure,

- the work force's low level of education and training,

- the relatively difficult fiscal situation,

- the poor performance of the principal economic sectors (especially industry and agriculture),

- the inefficiency of the public sector as regards economic development,

- the need for annual spending on defence which accounts for some 6% of GNP, a percentage which is twice as high as any other EU country,

- the need to modernize the public sector from the point of view of the provision of services and economic development in general,

B. whereas, however, the Greek economy displays certain dynamic factors which can make a contribution to economic and social development, such as:

- considerable natural resources which could be exploited (mineral wealth and agricultural products),

- favourable climatic and environmental conditions,

- an extremely rich historical and cultural heritage which could be exploited, especially in the field of tourism,

- a strategic geographical position from the point of view of opening up to the markets of the neighbouring Balkan countries,

- numerous dynamic undertakings in a good position to take advantage of trade with the countries of Central and Eastern Europe,

C. convinced that the second CSF, which is an extension of the first CSF, must constitute the basic instrument for Greece's economic and social development effort, bringing Greece's statistics closer to those of the Community average, enhancing Greek participation in progress towards Economic and Monetary Union, adapting to the new conditions created by enlargement of the European Union, assuming the role which Greece could play vis-à-vis its neighbours in the Balkans and the Mediterranean in general,

D. whereas the role of the second CSF is crucial owing both to the level of resources it makes available and the period over which it will be implemented, which coincides with the period of European economic and monetary integration,

1. Welcomes the second Community Support Framework for Greece and approves the five priority development goals:

- to reduce the regional nature of the country's economy and to promote internal integration in order to foster productive investments,

- to improve living conditions through integrated initiatives,

- to strengthen the country's economic fabric and improve its international competitiveness,

- to develop human resources and improve labour-market structures in order to promote employment,

- to reduce regional inequalities and eliminate the isolation of the island regions through 13 regional programmes;

2. Welcomes the extensive consultations and talks at national, regional and local level by successive Greek governments with the economic and social partners with a view to framing and drawing up the regional development plan 1994-1999;

3. Considers, given the importance of the CSF for the Greek economy, which will represent on an annual average 4.2% of GDP, and the slow economic growth prospects for Greece, that it is vital to improve the efficiency in the utilization of Community financing;

4. Calls on the Commission to support the endeavours of national and regional authorities to help Greece to overcome its underdevelopment;

5. Calls on the Commission to inform Parliament about the checks that it has carried out or will carry out, in collaboration with national and regional authorities, to ensure the technical quality of public works in the infrastructure field, which must meet the specifications laid down in the plans; considers, however, that in any case these checks must be regular and stringent principally in order to prevent poor workmanship which may eventually cause greater damage, especially in the sensitive sector of the environment;

6. Reminds Greece that the main bulk of Community and national appropriations must be utilized productively and strengthen the infrastructures which productive investment - whether public or private - requires, and that if the infrastructures - mainly in the areas of transport, communications and technology - are not strengthened, Greece will not attract foreign private investment and progress towards genuine convergence and cohesion will be put at risk;

7. Urges the Greek Government to make serious efforts to achieve economic modernization and restructuring, placing the emphasis on improving infrastructures in the areas of transport, telecommunications and tourism in order to maximize the effectiveness of Community resources;

8. Considers that in implementing the policy to develop transport infrastructures there must be a balanced distribution between road infrastructure on the one hand and rail and port infrastructure on the other, so as to lay the foundations for the development of an environment- friendly transport system, as called for in the fifth action programme on the environment, and for sustainable development;

9. Regrets that, during implementation of the first CSF the appropriations were not, however, sufficient to bring about significant changes in the Greek economy and indispensable preparations for the creation and operation of mechanisms to allow the smooth and rapid implementation of the future second CSF and for the maturing of the first projects to be covered by the latter were not made, but believes that the appropriations of the second CSF will be put to good use, particularly in the sectors of aid to SMEs, to research and development and to tourism, and will assist Greece in its programme of modernization and restructuring;

10. Urges the Greek authorities and the Commission to ensure that the projects funded under the CSF are accompanied by an integrated development strategy for the regions where the projects are undertaken, so as to enhance the effects of synergy for the local economy and avert any possible adverse effects as regards environmental, social or regional planning matters;

11. Welcomes the Greek Government's decision to improve the procedure for implementing public works and believes that that improvement is a precondition for the effective implementation of the infrastructure projects included in the second CSF and the Cohesion Fund; believes, however, that there is substantial further scope for modernizing the system of commissioning and implementing public works and that efforts should be made to move towards the systems applying in other Member States where Community programmes are implemented with fewer problems; expresses, moreover, its satisfaction with the work of the joint guidance committee; believes, however, that other measures must be taken to create a more flexible and transparent public administration so that the implementation of Community programmes can proceed smoothly, notably by strengthening the participation of regional and local authorities and prefectures in the assessment, tendering and project management procedures;

12. Notes the existence of shortcomings in the take-up of ESF funds and expects the Greek government to take more and urgent steps in the direction of modernizing public administration by putting emphasis on managerial skills and techniques;

13. Calls upon the Commission to consider carefully progress made in the organization and management of projects financed by the CSF and to provide appropriate support via the technical assistance aspects of the ESF for the establishment of training focused on this particular area;

14. Expresses its support for priorities identified under Objective 1 and welcomes the active consultation and involvement of both social partners and regional authorities in the planning, programming and monitoring of projects;

15. Welcomes the beneficial impact of the ESF upon education and training structures but is particularly worried of delays in the presentation of projects in the fields of initial and continuing education, of measures to combat exclusion from the labour market and of health and social assistance;

16. Expresses its satisfaction at the Greek public administration's attempt to modernize with the creation of the MOD (Unit for Organizing the Management of the second CSF) whose central aim is to meet the needs of the existing administrative structure in terms of the staff and technology transfer required for the swift and effective implementation of the programmes co- financed by the European Union;

17. Considers that the prolonged delay in the take up of resources from the second CSF and, principally, of resources regarding major projects, is due largely to a delay in the beginning of implementation, because it became necessary radically to amend the institutional framework for the management and implementation of major public projects; considers however that the rate of implementation must be speeded up henceforth as must the flow of Community funds, given that these delays will not benefit the Greek economy;

18. Considers the establishment of a Greek investment centre to be a particularly significant measure which contributes enormously to the modernization of Greece's public administration and efforts to attract investment;

19. Expresses, however, its concern at the delays that have been noted in taking up resources from the second CSF and calls on the contracting parties, i.e. the Commission of the European Communities and the Greek Government, to make the necessary efforts and take all the indispensable measures to speed up the flow of Community funds;

20. Stresses the enormous importance of the principle that Community funding and national expenditure on regional development are complementary and expects that principle to be fully maintained; also considers that it is particularly significant, if the desired development and convergence is to be achieved, to give greater priority to activating the private sector and promoting major projects by self-financing;

21. Points out that Greece, as a Member State of the Union, has received Community assistance from the Structural Funds but it needs considerably greater investment funds if the annual rate of development of GNP is to increase so as to allow the convergence of Greek productivity and per capita income with the EU average;

22. Instructs its President to forward this resolution to the Council, the Commission and the Greek Government and Parliament.