WRITTEN QUESTION E-1717/00

by Raffaele Costa (PPE-DE) to the Commission

(29 May 2000)

Subject: Turin and the Italian proposal on the coverage of Objective 2 areas

The proposal first submitted by Italy on 1 October 1999, relating to the coverage of Structural Fund Objective 2 areas for the period 2000-2006, was initially rejected on the grounds that the statistics used conflicted with Eurostat data.

However, not even the amended and revised version, which seeks to incorporate the area of Turin into Objective 2, has been granted final approval by the Commission.

The Directorate-General for Regional Policy maintains that the Turin area is not eligible, as its unemployment rate does not meet the criteria for Objective 2. It fails to take into consideration the fact that Italy is the only EU country to have an organisation such as the Cassa Integrazione (a fund which provides income support to workers who have been laid off). Workers receiving this kind of income support are not included on the unemployment lists immediately, but only after several months.

The approval of the proposal has been delayed for many months now and is severely penalising Italy's economy. The ITL 9 000 billion of the 2000-2006 Community support framework cannot be committed and the northern regions do not even have the opportunity of using other forms of national financial aid, as the failure to agree on Objective 2 is also blocking approval of the state aid programme for the Centre-North.

The Italian Government has, in the meantime, accepted the other observations made by the Commission and is waiting for the regions to approve the new proposal to be sent to Brussels.

In the Commission's view, what are the fresh obstacles which might undermine the outcome of the negotiations?

When is the Italian proposal expected to be granted final approval?

Which other Member States are, like Italy, still awaiting the approval of proposals concerning regional policy objectives and are being affected by the situation in an equally damaging way?

Answer given by Mr Barnier on behalf of the Commission

(4 July 2000)

The Italian authorities sent the Commission their Objective 2 zoning proposal on 1 October 1999. On 11 October the Commission informed them that it was unacceptable since it did not meet the requirement of Article 4(4) of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds(1) that at least 50 % of the population covered by Objective 2 must live in zones meeting the criteria of paragraphs 5 and 6 of that Article. Only 29,6 % of the total population proposed in fact did so.

The Commission therefore asked Italy to send with all speed an amended proposal in line with the Council Regulation. New zones meeting the Community criteria and with a population of at least 1 510 000 would have to be included and zones of equivalent population not meeting them dropped.

In the case of the Province of Turin the Commission has pointed out to Italy that the zones in greatest difficulty in it could perfectly well be presented for Objective 2 eligibility on the basis of paragraphs 7 to 9 of the said Article 4.

The Commission has several times pointed out to Italy the need for immediate transmission of a revised proposal in order not to penalise the areas in question. As soon as it has been received the Commission will give top priority to rapid adoption.

Italy is the only Member State for which it has not been possible to adopt Objective 2 zoning.

(1) OJ L 161, 26.6.1999.