WRITTEN QUESTION E-1349/02

by Pere Esteve (ELDR) and Carles-Alfred Gasòliba i Böhm (ELDR) to the Commission

(13 May 2002)

Subject: Structural Fund discrimination affecting the province of Teruel

The EP report A3-0115/93 (drawn up by the Committee on Regional Policy, Regional Planning and Relations with Regional and Local Authorities) of 30 March 1993 on areas with exceptionally low population densities (rapporteur: Mr Moretti)) points out that demographic imbalance has a distorting effect on the facts in statistical data, thereby invalidating the information units used to map out areas receiving Structural Fund assistance. It expresses the view that the indicators used to determine areas eligible for Structural Fund assistance, in particular per capita GDP, fail to reflect the complexity of the problem of underdevelopment within the European Union and to determine the priorities of Community regional policy. The report recommends the acquisition of data on units below NUTS III level in order to define problems more precisely.

Subsequently the Commission drew up a proposal for an amended regulation(1), which lays down objective, clear, impartial and lasting criteria. Even so, the current categories NUTS 1, 2 and 3 do not correspond to these objectives and the criteria laid down in the current proposal are frequently

ignored, so that the ultimate aim of providing truly comparable regional statistics is jeopardised. The proposal for a regulation still allows the possibility of introducing levels lower than the current NUTS categories (4 and 5), but they are unlikely to be useful for the purposes of recognising depressed regions.

In Spain the province of Teruel, which belongs to the Autonomous Region of Aragon, has two particular characteristics it belongs to the most imbalanced region in Spain and has one of the highest rates of depopulation. The continuing reduction in the population and its gradual ageing mean that although the figures relating to wealth remain the same, the per capita GDP quotient is increasing. These factors mean that the indicator does not reflect the province's actual level of development, a problem pointed out in paragraph 1 of the EP's report.

Is the Commission aware of the existence of this distortion?

In the circumstances, will the Commission propose any reform on the subject aimed at drawing up new criteria for choosing between developed and less developed areas with a view to 2006? Is there any possibility that Teruel might be given special consideration (such as that given to island and outermost regions), because of its low population density, in the run-up to 2006?

(1) COM(2001) 0083, OJ C 180 E, 26.6.2001, p. 108.

Joint answerto Written Questions E-1349/02 and E-1396/02given by Mr Barnier on behalf of the Commission

(3 July 2002)

Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds(1) sets eligibility criteria for areas to be covered by Objectives 1 and 2 of these Funds during the 2000-2006 programming period. Objective 1 areas must be regions of level II of the Nomenclature of Territorial Statistical Units (NUTS) and Objective 2 areas must be NUTS level III regions or the most seriously affected zones within such regions.

Teruel is a NUTS III terrritorial unit and so cannot be eligible for Objective 1. In view of its socio-economic problems the entire province has Objective 2 eligibility for the current programming period, population density being one of the eligibility criteria for this Objective. The province's particular situation has already been taken into consideration in the single programming document for Aragon.

Further, low population density areas are given specific treatment in the regional State aid system guidelines. First, low population density is a sufficient criterion for regional aid to be eligible for exceptional treatment under Article 87(3)(c) of the EC Treaty. Second, the maximum level of investment aid that can be granted in such regions has been set at 30 % net grant equivalent instead of the 20 % that is the normal rule. These provisions cover all of the province of Teruel.

To establish a solid and transparent legal basis the Commission in February 2001 adopted a proposal for a Parliament and Council Regulation on establishment of a common classification of Territorial Units for Statistics (NUTS)(2). This has been the subject of a report to Parliament and is at present under discussion in the Council. One of its purposes is to secure application of objective criteria in the definition of Member States' regions in order to guarantee impartiality and comparability when regional statistics are compiled. For Spain Annex II to the proposal places the Autonomous Communities at NUTS level II.

For the purpose of defining cohesion policy for the period after 2006 the Commission with publication of the Second Report on Economic and Social Cohesion(3) launched a wide-ranging debate. In the report the Commission examines as a possible priority for future cohesion policy zones with grave geographical or natural handicaps, including low population density. The debate is in progress and in due time the Commission will in the Third Cohesion Report make proposals to the Council and Parliament on the best way of taking account of these specific factors in regional policy.

(1) OJ L 161, 26.6.1999.

(2) OJ C 180 E, 26.6.2001.

(3) COM(2001) 24 final.