WRITTEN QUESTION E-0940/00

by Raffaele Costa (PPE-DE) to the Commission

(29 March 2000)

Subject: Turin and the Italian proposal on the coverage of Objective 2 areas

On 1 October 1999, Italy submitted its proposal on the coverage of Objective 2 areas for the period 2000-2006; the proposal was, however rejected. The statistics used by Italy based on local employment systems conflicted with the Eurostat statistics on the administrative provinces referred to by the Commission (benchmarks for all Member States). Italy thus has to adjust its proposal.

This matter is of particular concern to Turin and its 936 000 inhabitants: according to the 1995-1997 unemployment statistics for the province, Turin should not be eligible for funds under Objective 2 (unless workers that have been laid off and are recipients of income support from the Cassa Integrazione earnings supplement fund are included in the statistics a fair argument which the EU for some reason rejects); more recent statistics (1996-1998), meanwhile, appear to qualify the province and most of the city of Turin for inclusion in Objective 2.

For 2000-2006, Italy is entitled to approximately ITL 4 000 billion (for Objective 2) of EU funds. Piedmont could receive some ITL 1 400 billion (taking into account national co-financing) over seven years and Turin should receive over 100 billion per year (even on the basis of the old statistics).

Turin is still awaiting authorisation from Brussels, however. Does the Commission foresee any fresh obstacles? What outstanding issues need to be resolved? How long will it take for the procedures to be finalised, albeit tardily? Can Italy be assured that it will receive co-financing?

Is the Commission aware of the fact that each day's delay is a step backwards for the population of Piedmont and for Turin in terms of economic recovery?

Answer given by Mr Barnier on behalf of the Commission

(12 May 2000)

Italy sent the Commission its Objective 2 zoning proposal on 1 October 1999. The Commission replied on 11 October that the proposal was unacceptable owing to non-compliance with Article 4(4) of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds(1). This requires areas meeting the criteria of paragraphs 5 and 6 of that Article to account for at least 50 % in population terms of each country's Objective 2 areas.

To ensure identical treatment of the Member States the same statistical series must be used for verification of these criteria in each of them. Thus in line with Article 4(2) the Commission on 23 June 1999 sent all Member States concerned by Objective 2 the statistics pertaining to the criteria. As decided by the Council these were the figures available at the time of the Berlin European Council. For the unemployment rate this means that the figures considered are those for 1995, 1996 and 1997. These figures have been used to zone for Objective 2 in the eleven Member States for which the Commission has already drawn up the list of eligible areas for the 2000-2006 programming period.

On the basis of the figures the Province of Turin does not meet the criteria of Article 4(5) and (6). The Commission pointed out however that the zones of the province could perfectly well be submitted as national priority areas for Objective 2 under the criteria of paragraphs 7 to 9 of Article 4.

On 11 October 1999 the Commission invited Italy to draw up with all speed a revised Objective 2 zoning proposal in line with the regulatory provisions unanimously adopted by the Council after full consideration of the situation. The Commission regrets that no proposal has yet been received. It has several times drawn to Italy's attention the need for urgent action so as not to penalise the areas in question. Italy is the only Member State for which it has not yet been possible to adopt Objective 2 zoning.

The Commission Decision of 1 July 1999 sets at 2 522 million (1999 prices) Italy's Structural Fund allocation for Objective 2 for the 2000-2006 programming period. This is unaffected by the delay in designating the qualifying areas.

As soon as the list of these has been adopted by the Commission on the basis of a revised proposal, it will fall to Italy to decide how the allocation is to be split between the areas concerned. Assistance must be concentrated on those worst affected.

(1) OJ L 161, 26.6.1999.