WRITTEN QUESTION E-3491/97 by Jaak Vandemeulebroucke (ARE) to the Commission (3 November 1997)

Subject: Relocation of Flemish companies to Hainault and Northern France

Both the Northern French regions of Lens and Lille and the Belgian province of Hainault benefit from Cohesion Fund subsidies, unlike the adjacent Flemish province of West Flanders. The environmental standards in Northern France and Hainault are also not as strict as in Flanders. The clear result has been that various companies from the southern part of West Flanders have relocated to the much more lucrative neighbouring regions, where, in addition they do not have to pay so much attention to ecological measures. Ironically, it is Flanders which actually has to take responsibility for a large proportion of the pollution from these companies as a result of the pollution of the River Leie.

Is the Commission aware that its support is misfiring in this way? A large proportion of the new jobs in the regions receiving support are in fact at the expense of jobs in Flanders. How does it intend to deal with this situation without harming the support given to Northern France and Hainault?

Does the Commission have practical plans to bring about equality between environmental standards throughout the Union.? The present situation means that regions which have stricter environmental standards are in fact penalized as a result.

Answer given by Mrs Wulf-Mathies on behalf of the Commission (23 December 1997)

Where a programme is part-financed by the Structural Funds, the projects are selected, in accordance with the subsidiarity principle, by the authorities responsible for implementing the programme under the partnership. However, it is clear that the choices made must be consistent with competition and environmental policy in particular. This is in fact a requirement of the programme implementing rules relating to compliance with Community policies.

Furthermore, the Commission is currently examining the question of relocation and the Structural Funds in its deliberations on improving existing mechanisms for State aid for the regions. These discussions, focusing on a revision of the aid ceilings, varying the rates of aid, and the introduction of an investment durability clause, are aimed at preventing the misappropriation of public aid by the recipient companies and concentrating budgetary resources on the areas in greatest difficulty.

Furthermore, the Commission would point out that Article 130t of the EC Treaty entitles Member States to introduce more stringent protective measures for the environment. Therefore, complete harmonisation of environmental standards cannot be guaranteed. However, the Commission would draw attention to its proposal for a Council directive establishing a framework for Community action in the field of water policy ((OJ C 184, 17.6.1997. )). The overall aim of this proposal is to extend the scope of water protection to all bodies of water, establish good ecological and chemical status for all bodies of water across Europe and require Member States to develop a programme of measures in order to achieve this goal within the time limits set in the directive. This proposal will be a considerable step forward in the harmonisation of environmental objectives in Europe.