WRITTEN QUESTION P-1691/01

by Sérgio Marques (PPE-DE) to the Commission

(6 June 2001)

Subject: Implementation of the Poseima programme in Madeira and the new legal basis for the outermost regions

The programme of options specific to the remote and insular nature of Madeira and the Azores (Poseima), which was set up in 1991, provides for the differentiation of Community policies (particularly in the field of taxation) and the adoption of measures in the agriculture, livestock, fisheries, craft, environment and transport sectors, specific measures designed to reduce the extra cost of supplying agricultural and petroleum products, and customs measures for free zones.

The implementation of the Poseima programme has had a beneficial effect on the social and economic development of Madeira, despite the fact that some of the planned sectoral measures (those relating to the environment, craft industries and energy) have been applied only for a short period and others are at present unsuited to the actual situation on the island, as is the case in the agriculture sector. The truth of the matter is that the implementation of Poseima has essentially been restricted to the agriculture and fisheries sectors, to customs measures for the benefit of the Madeira free zone and to certain VAT-related tax reductions (the provisions of the Act of Accession have remained in force) and special taxes on consumption.

Following the inclusion in the Treaty of the new legal basis for the outermost regions, it was expected that the Commission taking into account the experience of implementing Poseima would submit a comprehensive multi-sectoral action programme which, in the current context of European integration, would meet the development needs of Madeira and the other outermost regions which have been brought to the Commission's attention by means of the memoranda submitted by those regions and their respective Member States. So far this has not happened and the Commission has merely submitted a number of proposals for structural amendments to certain regulations (agriculture: adjustment of the intervention ceilings established in the regulation on EAGGF aid; fisheries: adjustment of certain FIFG financial intervention rates; Structural Funds: increase in the maximum participation rate ceilings) and revision of the agriculture part of the Poseima programme (and of the other Posei programmes), with preference to be given once again under Poseima to the agriculture sector.

Furthermore, the Commission has not used the new legal basis laid down in the Treaty for the outermost regions in any of its recently submitted proposals, which comes as a surprise and runs counter to expectations.

The Commission:

- when does it intend to draw up and implement its previously announced comprehensive multi-sectoral action programme (including the relevant financial commitments and an identification of priority areas for intervention) which will fully meet development needs of the outermost regions? For example, does the Commission intend to reprogramme measures such as those originally included in the Poseima programme in the environment, craft, tourism, energy and transport fields?

- what criterion does it intend to adopt for using the new legal basis for the outermost regions which has been laid down in the Treaty, i.e. Article 299(2) thereof?

Answer given by Mr Prodi on behalf of the Commission

(4 September 2001)

The Commission did not, at least at this stage, think it worthwhile proposing a single programme to replace the programme of options specific to the remote and insular nature of Madeira and the Azores (Poseima), the programme of options specific to the remote and insular nature of the overseas departments (Poseidom) and the programme of options specific to the remote and insular nature of the Canary Islands (Poseican). It has received no requests to this effect from the Member States and regions concerned. Nonetheless, the Commission report of 14 March 2000(1) outlined a strategy for the sustainable development of the outermost regions. This strategy not only proposes that existing measures should be continued, adapted and improved but also paves the way for new initiatives.

The Poseima programme schemes mentioned by the Honourable Member (for the environment, craft industries and energy) could not be continued because they were neither eligible for structural funding nor covered by a specific budget line. However, Structural Fund operational programmes for 2000-2006 make provision for funding investment in energy and the environment. More generally, investment in the environment and transport is also eligible for funding under the Cohesion Fund for the countries concerned. At the same time the Commission is still deliberating on the concerns raised by the Honourable Member.

Finally, the Commission now regards Article 299(2) (ex-Article 227(2)) of the EC Treaty as an important political lever to bring in Community measures to assist the outermost regions. As regards the legal basis in the strict sense for the measures in favour of those regions, the Council opted unanimously for a double legal basis for the measures it adopted in June 2001. The Commission, however, stands by its view that Article 299(2) should be used as the legal basis only for exceptions to the provisions of the Treaty, without prejudice to the use of the specific legal bases for the common policies.

(1) COM(2000) 147.