WRITTEN QUESTION E-2975/00

by Ioannis Souladakis (PSE) to the Council

(25 September 2000)

Subject: Funding of European Union island regions

In the first paragraph of the Commission's answer of 24 July 2000 to my Written Question No E-1738/2000(1) concerning the funding of European Union island regions, Commissioner Barnier states that the Commission does not anticipate creating a legal basis

for such funding, despite the provisions of the Treaty of Amsterdam. Acting within its sphere of responsibilities, however, and in particular the 2001 budget guidelines, the European Parliament has decided to make such funding a budget priority, especially in view of the fact that implementation of the Amsterdam Treaty has already begun this year, 2000. It is surprising, therefore, that while the Commission should take initiatives to implement the Treaties, it appears from its answer that it is at the very least indifferent towards a matter of major importance for the development of certain regions of the EU.

What practical steps will the Council take, on the basis of a specific timetable, to create a legal basis for the funding of EU island regions pursuant to the provisions of the relevant Treaties?

(1) OJ C 113 E, 18.4.2001, p. 38.

Reply

(8 March 2001)

1. In its reply to the Honourable Member's Written Question E-1737/00 on the funding of the European Union island regions, the Council already stated that in the context of economic and social cohesion, the Structural Funds and in particular the ERDF are, in this connection, an important instrument for action, having a positive effect on the growth and convergence of the island regions of the European Union.

2. Under the new regulatory framework of the Structural Funds, the island regions in the European Union meeting the criteria of eligibility defined in the general Regulation may benefit from Community financial help under Objective 1 (regions lagging behind in development) or Objective 2 (areas undergoing social and economic conversion). The total budget of the Structural Funds for the period 2000-2006 amounts to 195 billion at 1999 prices. More than 81 % of the overall budget is concentrated on Objectives 1 and 2. Furthermore, the Council would remind the Honourable Member that, as regards the specific measures to which he refers, it should be emphasised that under Article 29(3)(a) of Council Regulation No 1260/1999 laying down general provisions on the Structural Funds(1), where the regions are located in a Member State covered by the Cohesion Fund, the Community contribution may rise, in exceptional and duly justified cases, to a maximum of 80 % of the total eligible cost and to a maximum of 85 % of the total eligible cost for the outermost regions and for the outlying Greek islands which are under a handicap due to their distant location.

3. The Council has not to date received any proposal from the Commission along the lines referred to by the Honourable Member and cannot therefore give a more precise reply to the question. However, it would remind the Honourable Member that, on the basis of Declaration No 30 annexed to the Amsterdam Treaty, the Nice European Council confirmed the need for specific measures for the benefit of island regions, in accordance with Article 158 of the TEC, in view of their structural handicaps, which impair their economic and social development, within the limits of the budget resources available (point 55 of the Presidency conclusions).

(1) OJ L 161, 26.6.1999.