WRITTEN QUESTION E-3799/98

by Ernesto Caccavale (UPE) to the Commission

(22 December 1998)

Subject: Suspected irregularities in the use of European funds

The Commission has authorised ERDF co-financing for an operational urban development programme in the Quartiere di Pianura (Naples) as a sub-CCA for structural operations in Objective 1 areas (Campania region) for the 1996-99 period.

Recent press reports refer to agreements concluded between the Naples city authorities (the beneficiaries of the Community contribution) and the Ministry of Finance for the purpose of combining projects submitted by a private entity - the Fondazione Idis di Bagnoli (Naples) - with those to be undertaken in the Quartiere di Pianura, so that the first instalment of Community funding can be used for projects submitted by the above foundation which are ready for implementation, with subsequent funding to be allocated to the financing of projects directly relating to the Quartiere di Pianura.

Would the Commission therefore:

1. disclose the total amount of the above financing;

2. verify the legitimacy of the transfer of funds effected by the Naples city authorities and the Ministry of Finance for the benefit of the Idis foundation;

3. clarify whether or not it is possible to divert European funds obtained for one particular programme (that relating to the Quartiere di Pianura) to other projects which are logically and geographically unrelated to that programme and which have never had any links with it;

4. to clarify whether or not European funds which are intended to have an impact on employment prospects and socio-economic development in an area which is already suffering from severe problems can be used for the benefit of a private entity on an entirely discretionary basis;

5. consider the advisability of allocating financial resources to the completion of buildings such as those currently occupied by the Idis foundation, which are already earmarked for demolition since they are situated in coastal areas and are subject to planning constraints unless the required authorisation is secured, and in view of the fact that the Naples city authorities themselves have already identified a number of uses for the site in question?

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(4 February 1999)

The "Pianura - Napoli" operational programme, which the Commission approved on 18 December 1997, allocates EUR 25 million from the European Regional Development Fund for measures to be undertaken in the Pianura district.

There must be no reallocation of those resources without the Commission's formal agreement.

Since it has to date not received a proposal from the Italian authorities regarding a project to support the Idis Foundation in Naples, the Commission is not in a position to answer the questions raised about such a project. If the Member State submits a proposal, the Commission will appraise it in partnership and particularly on the basis of Article 14 of Regulation (EEC) 4253/88 and Article 5 of Regulation (EEC) 4254/88(1).

Although the Commission therefore has no grounds for suspecting irregularities in the use of funds under the "Pianura - Napoli" programme, through the Monitoring Committee it will ensure proper compliance with the rules in force.

(1) OJ L 193, 31.7.1993.