WRITTEN QUESTION P-1919/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(14 October 1999)

Subject: Cuts in Ekpizo funds

Ekpizo is a well-known Greek consumers association recognised by the European Union which funds its programmes. Recently the Commission's DG XXIV retroactively implemented Decision No 283/1999/EC(1) establishing a general framework for Community activities in favour of consumers which entered into force in February 1999, cutting Drs. 15 million from the total amount due and suspending Ekpizo's two programmes for 1999 which had been approved in 1998.

Given that the provisions of the Decision do not state that it applies retroactively, will the Commission say:

1. Why have these cuts been made to Ekpizo programmes?

2. What measures does it intend to take to ensure continued funding of the programmes that had been approved prior to publication of the above Decision?

(1) OJ L 34, 9.2.1999, p. 1.

Answer given by Mr Byrne on behalf of the Commission

(22 November 1999)

The Commission does not recognise as such any national consumers associations. It has identified more than 125 associations among which a number of Greek associations, including Ekpizo, which are kept directly informed about European consumer protection developments by the Commission.

Ekpizo has presented for a number of years projects to be co-financed by the Commission. In 1997, the Commission agreed to finance two projects for a total amount of 260 941 (DRA 81 million). In 1998, one project was financed by the Commission ( 39 752). For the year 1999, two Ekpizo projects were approved in accordance with the procedures established by the legal base, Decision No 283/1999/EC of the Parliament and of the Council of 25 January 1999 establishing a general framework for Community activities in favour of consumers.

Under Article 7 of the contract signed by Ekpizo, the Commission decided to carry out a financial audit relating to the two projects financed in 1997. The main findings included the lack of any book-keeping which made control of total expenditure or total revenue impossible; the existence of unofficial receipts for salaries paid to free-lance employees and for suppliers, although official invoices are necessary to comply with Commission rules; and the fact that it was not possible to establish the effective payment of the counterpart of the Commission's subsidy. As a result, the Commission decided not to pay the full amount for the two projects, but to retain a lump sum of 15 million Dra. This represents a reduction of less than 20 % compared to the payment foreseen and corresponds to the expenditure which has not been duly justified.

The audit also clearly showed that Ekpizo did not dispose of the necessary own resources for the two large projects in 1999.The total cost of the two projects originally amounted to 572 605, of which 50 % was to be financed from Ekpizo's own funds. Ekpizo therefore decided to withdraw one of the two approved projects. As far as the remaining 1999 project is concerned, a final deadline of 15 October 1999 was given to present a financially acceptable project. To date, no modified application has been received by the Commission.

The decisions concerning the projects from Ekpizo concern therefore the basic rules concerning financial management, rather than Decision No 283/1999/EC as such.