WRITTEN QUESTION P-1772/96 by Josu Imaz San Miguel (PPE) to the Commission (20 June 1996)

Subject: Structural Funds and conditionality

In its communication to the Council with a view to preparing the Florence Summit the Commission indicates that some Member States have requested that an analysis be made of the feasibility of introducing macro-economic conditionality in the context of the Structural Funds.

That statement might be interpreted as meaning that the Member States concerned are raising the possibility of making Structural Funds payments conditional on the implementation of convergence policies and the consequent fulfilment of the criteria for access to economic and monetary union set out in the Treaty on European Union, particularly as regards excessive deficits.

The nature of the Structural Funds is completely separate from economic convergence conditions. While there is a protocol which makes access to the Cohesion Fund conditional on compliance with economic convergence criteria as laid down in Article 104c of the EU Treaty, there is no such reference or link between the Structural Funds and the fulfilment of convergence criteria.

The Structural Funds were planned and defined before convergence policies were even thought of. Moreover, by their very nature, the objective of these Funds is quite different from a budgetary policy designed to remedy excessive deficits. They are a response to the need to correct regional imbalances within the Community.

Does the Commission consider that the possibility of making the Structural Funds conditional on fulfilment of convergence programmes would alter the functions, priority objectives and organization of these Funds?

Does the Commission share the view that any amendment of this sort would require unanimity within the Council and the assent of the European Parliament as laid down in Article 130d of the EU Treaty?

Answer given by Mrs Wulf-Mathies on behalf of the Commission (5 July 1996)

At the informal meeting of ministers for economy and finance held in Verona in April 1996, the Commission was asked to examine ways of strengthening efforts to promote economic convergence in the Community, including the possibility of introducing macro-economic conditionality into the structural funds. This examination is currently under way.

The extension to the structural funds of the principle of conditionality - which is applicable at present only to the Cohesion fund - must be considered in the light of its economic consequences and its practical implications. It must also take into account the specific objectives of Community policies under the structural funds. These policies address the problems of the less favoured regions and social groups in order to reduce socio-economic disparities and promote real convergence. The structural funds differ in this respect from the Cohesion fund, which was conceived as an instrument to support national budgets and to facilitate the achievement of the nominal convergence criteria for participation in economic and monetary union, although the Cohesion fund also addresses structural problems by supporting investments in environmental and transport infrastructures.

The principles governing the structural funds are contained in the current regulations ((OJ L 193, 31.7.1993. )) which expire on 31 December 1999. The regulations for the following period will be adopted in accordance with the procedures in force at that time.