WRITTEN QUESTION E-2450/01

by Erik Meijer (GUE/NGL) to the Commission

(11 September 2001)

Subject: Differences of interpretation regarding incorrect use and unforeseen claim for repayment of Dutch ESF funds

1. In the light of the differences of opinion between the Netherlands Government and the Commission concerning the claim for repayment of NLG 447 million (more than 200 million) in subsidies paid in the Netherlands from the European Social Fund in 1994-1996, can the Commission say whether the rules on the use of ESF funds should be interpreted as meaning that the Member State which receives them bears ultimate responsibility for monitoring and ensuring their correct use?

2. If ultimate responsibility lies with the government of the Member State concerned, does this mean that the government is immune from claims for repayment if it considers the funds to have been used in accordance with the rules, or does it always remain possible for the Commission to retrospectively resume ultimate responsibility and on this basis, years later, demand repayment of money which the government concerned considers to have been spent in good faith?

3. How can it be ensured that agreement is reached between the Commission and the government of the Member State concerned at the earliest possible stage, and not later than one year after the end of the financial year in which the expenditure has been incurred, that ESF funds have been spent correctly, so as to avoid the possibility that the Commission may later demand repayment of money which the Member State concerned or its subordinate bodies have already definitively assessed as having been spent correctly and in accordance with the rules?

4. Bearing in mind that Member States often regard funds which they receive from the EU as being available for use at their discretion within the sector to which they are allocated, will the Commission define more clearly the respective responsibilities for such funds, making it absolutely clear to all parties concerned in advance whether the funds are available for uses for which the Member State concerned bears ultimate responsibility or whether they are earmarked exclusively for a use which involves the European Union independently monitoring how the funds are used and accounted for because it bears ultimate responsibility itself?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(17 October 2001)

1. According to article 23, section 1 of Council Regulation (EEC) No 4253/88(1) the Member State is, in the first instance, responsible for the correct use of the Structural Funds.

2. The Commission, with its ultimate responsibility, has always the possibility to go back to the Member State when evidence arises which challenges the proper use of the money. If this is the case a financial correction has to be made which can lead to a repayment.

3. The Commission must be able to reclaim money during and after the end of the programming period if evidence arises that challenges the proper use of money. For the period 2000-2006 the payment system has changed substantially. There are no longer advances from the Commission to Member States except for a 7 % lump sum paid at the beginning of the period. The Commission reimburses only real costs once they have been incurred and certified by the Member State. This new set of rules should avoid any excessive repayments.

4. The Structural Funds Regulation(2), discussed and adopted by the Member States, is clear about the responsibilities of the Member State and the Commission. The amount of money granted under the Structural Funds Regulation is exclusively earmarked for the purposes laid down in the Structural Funds regulations and the Programming Documents.

(1) Council Regulation (EEC) No 4253/88 of 19 December 1988, laying down provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments, OJ L 374, 31.12.1988.

(2) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds, OJ L 161, 26.6.1999.