WRITTEN QUESTION E-2265/01

by Ioannis Marínos (PPE-DE) to the Commission

(31 July 2001)

Subject: Unutilised Structural Funds appropriations

The Directorate-General for Regional Policy states in Inforegio News (No. 86 of May 2001) that: On 3 May last, the Council and the European Parliament approved plans to distribute over the five years from 2002 to 2006 Structural Funds appropriations not committed in 2000 nor carried over to 2001. It goes on to state that: The funding in question is worth EUR 6 152 million, of which half from Greek Objective 1 programmes, and adds that: The financial rules for 2000-2006 permit this type of transfer only for unused amounts from 2000 uncommitted funding from subsequent years may not be reallocated within the budget.

Can the Commission confirm that this means that those countries which have been unable to use up their Community funds for 2001 will definitively forfeit these funds? What indications are there concerning the take-up of Structural Funds appropriations in Greece for 2001? What will happen to funds from the third Community Support Framework (CSF) which are not used up during the years of implementation?

Answer given by Mr Barnier on behalf of the Commission

(15 January 2002)

1. Loss of commitment appropriations not used in 2001

In view of the deadlines for adopting the new generation of programmes for 2000-2006, the interinstitutional agreement of 6 May 1999 stipulates that the commitment appropriations for the first year of the 2000-2006 programming period could be the subject of rebudgeting in 2001 if not used in 2000. Under the financial appropriations adopted in Berlin and confirmed by Council Regulation (EC) No 1260/1999(1) the commitment appropriations allocated for each year from 2001 to 2006 and not utilised by the end of each year will be forfeited without the possibility of re-allocation to the budget for the following year(s). However, this provision is only a minor problem for Greece because, apart from the Operational Programme (OP) covering technical assistance which is in the course of adoption and the amended environmental OP, all the Objective 1 programmes have been adopted and the commitments for the annual instalments for the following years will be paid automatically.

2. Forecast Greek take-up of Structural Fund commitment appropriations in 2001

European Regional Development Fund (ERDF)

The allocation of commitment appropriations for Greece under ERDF Objective 1 is EUR 2 122 million for 2001, of which EUR 2 091 million has to date been committed and EUR 31 million has not yet been used. The Greece/Bulgaria and Greece/Cyprus Interreg programmes

should be approved before the end of 2001. The 2001 budget allocation of commitment appropriations for those two programmes is EUR 42 million.

European Agricultural Guidance and Guarantee Fund, Guidance Section (EAGGF Guidance Section)

The 2000 budget allocation for all Objective 1 programmes under the EAGGF Guidance Section and the Leader+ Community initiative has been re-allocated to the budget for 2002 to 2006.

The total 2001 budget allocation for Greece, EUR 341,2 million, was committed under Objective 1 for the EAGGF Guidance Section. The 7 % advance of EUR 158,2 million has been paid.

Under Leader+, a national programme has been adopted to commit the entire annual instalment of EUR 28 million for 2001. This sum should have been committed and the initial advance paid before 31 December 2001.

European Social Fund (ESF)

The budget allocation of ESF commitment appropriations for 2001 is EUR 623 320 666, of which EUR 621 741 332 has already been sent [sic]. EUR 1 579 334 has been set aside for the technical assistance OP which is still under examination. The 7 % instalment covering the entire programming period amounting to EUR 295 769 306 has been paid for all the programmes adopted.

Financial Instrument for Fisheries Guidance (FIFG)

The FIFG budget allocation for 2001, EUR 26,5 million, was committed immediately. The 7 % advance for the total FIFG programming (EUR 14 777 000) has been paid to the Member State.

3. Appropriations under the third CSF not utilised during the period

The risk of loss of appropriations resulting from a low degree of implementation of the programmes stems from the application of the rule (Article 31(2) of Regulation (EC) No 1260/1999), whereby any part of a commitment which is not settled by the end of year n+2 is decommitted and the Community contribution to the relevant programme is reduced accordingly.

Each Member State had until 31 December 2003 to make declarations of expenditure relating to the use of 2001 Structural Fund commitment appropriations.

The year n+2 rule will also apply in 2002 and subsequent years.

(1) OJ L 161, 26.6.1999.