WRITTEN QUESTION E-2069/00

by Daniela Raschhofer (NI) to the Commission

(27 June 2000)

Subject: Cohesion Fund annual report for 1998

The Cohesion Fund annual report for 1998, which the Commission presented on 15 October 1999, mentions that the London School of Economics (LSE) was given the task of developing economic models, including econometric models, in order to ascertain the social and economic effects of the Cohesion Fund. According to the annual report this study appeared in 1999. The LSE model was applied to a range of selected projects. At the end of 1998 no results were yet available.

Can the Commission answer the following:

- Where was the LSE study published?

- How does one obtain access to the LSE study?

- In what respects do conventional assessment models differ from the assessment model developed by the LSE?

- How does one obtain access to the results of the assessment?

- Which projects were assessed in these investigations?

- Are there differences between the results obtained by the LSE assessment model and those obtained by conventional assessment methods?

The Commission's departments have agreed on detailed reference values for a retrospective assessment programme with which it proposes to assess 120 projects.

- Which projects have been assessed in this way?

- What results have been obtained, concerning the impact on employment of the projects receiving support? Have durable jobs been created as a result of the projects assessed?

Answer given by Mr Barnier on behalf of the Commission

(7 September 2000)

The Commission entrusted a study to the London School of Economics in July 1995 in order to assess the economic and social impact of the Cohesion fund on the beneficiary Member States and on the wider economy of the Community. The study has been published by the Commission(1).

The study was aimed to develop evaluation techniques in the fields of infrastructure investment impact and regional economic analysis. It was based on an innovative approach, which led to the development of three distinct modelling approaches. Among main results, the study shows that there is a strong, positive relationship between public infrastructure investment and private investment in the cohesion Member States over the longer term, and that the Cohesion fund investments give rise to significant employment impacts both in the short term and long term. In addition, it produces clear evidence that regional income and spillover effects may exceed in some cases those resulting from more traditional approaches to project appraisal such as cost-benefit analysis.

The models have been further tested and applied to a wider range of projects in the transport and environment fields financed by the Cohesion fund. The results of such applications will be made available in the annual reports of the Cohesion fund.

With regard to the ex-post evaluation of projects assisted by the Cohesion fund, the Commission has evaluated so far, with the help of independent experts, 31 environment and 40 transport projects. The results are generally favourable, in particular on employment. In the area of transport, Cohesion fund assistance has generated about 2200 direct jobs in the construction phase. In the area of environment, it is estimated that the assisted projects have created as a whole the equivalent of 43,000 person hours of construction work and 460 permanent jobs.

(1) ISBN 92-828-7238-6 (volumes 1, 2, 3).