WRITTEN QUESTION E-3672/01

by Daniela Raschhofer (NI) to the Commission

(17 January 2002)

Subject: Development of administrative structures in the Czech Republic

In its 2001 report on the Czech Republic's progress towards accession the Commission considered that the necessary structures and administrative capacity for utilising the structural funds needed to be set up and developed. It was of decisive importance that the capacity of the administrative bodies be improved, in order to enable the Czech Republic to manage Structural Fund aid without difficulty. The Commission also ascertained that corruption is causing serious concern, especially in State administration.

The Frankfurter Allgemeine newspaper was even more negative about the development of administrative capacity for the receipt of funding from the Structural Funds and the Cohesion Fund in its report No 287 of December 2001, in which it stated that a start had not even been made.

1. How large is the actual deficit with regard to the development of administrative structures?

2. What period of time does the Commission estimate necessary for the completion of national structures?

3. Is it likely that the structures will be effectively completed before 2004?

4. If not, how would the Commission propose finding a solution for the proper utilisation of funding in the Czech Republic?

5. How does the Commission intend to combat corruption in State administration independently from OLAF, whose work is dependent on reports from Member States?

Answer given by Mr Verheugen on behalf of the Commission

(18 February 2002)

1. The administrative structures relevant to the management of the Structural Funds are not yet fully operational in all candidate countries, including the Czech Republic. The Commission is fully aware of this situation, and has consistently encouraged the Czech authorities to define its implementation structures and proceed quickly with the nomination of the managing and paying authorities for the future Community Support Framework. The need to reinforce staff where necessary has also been acknowledged. In addition, the Commission has particularly stressed the need for the Czech Republic to develop an appropriate pipeline of projects, which could be eligible for financing under the Structural and Cohesion Funds. To that end, support has been allocated from the PHARE programme to increase the country's absorption capacity. Within the context of the negotiations under Chapter 21 Regional Policy the Commission will closely monitor the development of an adequate administrative capacity and will assist the Czech authorities in identifying the specific areas that need further targeted support through the pre-accession instruments at its disposal.

2. The years 2002 and 2003 will be crucial in that regard. It is especially important that the appointment of the managing and paying authorities is supported by an adequate allocation of resources both in terms of financial means and human resources to make these administrative structures fully operational by the time of accession. Several twinning projects will be financed by the Commission to help in this effort, and are already bringing the elements together to encourage concerted moves towards tighter co-ordination and management.

3. The Commission is aware that the completion of the preparations in terms of administrative structures before 2004 represents a significant amount of work. However, a lot of progress has been achieved in recent years with the creation of the regions and the territorial reorganisation, the establishment of the Ministry of Regional Development, while the experience gained from the pre-accession instruments (PHARE, ISPA, Sapard) has been also extremely valuable. Therefore, the Czech Republic should be able to complete the structures by 2004 if it continues and deepens its efforts.

4. If the administrative structures required for the operation of the Structural Funds according to Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds(1) do not ensure the proper use of Community funds the Czech Republic will then be treated like any other Member State. This means that the Czech Republic would not then be able to fully benefit from the Community funds it could be eligible for. The Commission is currently concentrating its efforts at monitoring and assistance to precisely prevent such a situation from arising.

5. The Commission is concerned with the problem of corruption in the Candidate Countries, including the Czech Republic. However, the Czech authorities have introduced significant legislative and administrative steps to intensify the fight against corruption and economic crime. In relation to the use of Community funds, the Supreme Audit Office, a state body of the Czech Republic, has been more assertive in its controlling activities, and has developed a working relationship with the European Anti-Fraud Office (OLAF). The Commission has consistently encouraged the Czech Government to introduce a Civil Service Act, which would strengthen the professionalism and independence of civil servants and act as an effective deterrent.

(1) OJ L 161, 26.6.1999.