WRITTEN QUESTION E-1190/01

by Luis Berenguer Fuster (PSE) to the Commission

(19 April 2001)

Subject: European Social Fund and the Valencia region

In the course of this week, contradictory information has emerged from the Valencia region regarding the administration of the subsidies provided by the Valencia Regional Government for the running of vocational training courses by approved partner training centres.

During the 2000 financial year the regional government had to pay back 687 million pesetas to the ESF whilst at the same time many partner bodies and organisations had to abandon courses which had already been scheduled, since the regional authority was unable to monitor them and check that they met the required standards.

In the local press there have been reports concerning a former (1995/6) Director-General of Employment within the Valencia Regional Government José Linfante Vidal who was responsible for such training initiatives during his time in office and who now runs businesses in the vocational training sector, the basic activity of which is involvement in programmes co-financed by the European Social Fund. Their services range from advising on the running of vocational training projects to the teaching of, for example, courses providing an introduction to new information and communication technologies. Mr Linfante Vidal's case would appear to be somewhat unethical since some of the schools which he runs have doubled their revenue since 1995.

Within the Valencia Regional Parliament, questions have been asked regarding the identity of the companies and public bodies which have received subsidies, the value of those subsidies, the number of students enrolled and the degree of success achieved by former students in finding jobs. No answers have so far been forthcoming.

Is the Commission aware of these facts? To what extent do they affect the beneficiaries of the ESF?

In what way does the Commission work with the Member States' authorities in order to meet the needs of an Objective 1 region, pursuant to the regulations applicable?

Is the Commission intending to take any action regarding the administration of ESF funds in the Valencia region?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(29 June 2001)

Concerning the questions relating to the information from Valencia (regional parliament, press), the Commission does not at this stage possess enough details to express an opinion or take any measures which might be necessary. It has immediately contacted the Spanish authorities in order to obtain replies to the questions raised by the press and the regional parliament. As soon as it receives this information, it will inform the Honourable Member and provide him with its analysis of the situation.

Concerning the question on co-operation between the Commission and the Member States, Article 8 of Council Regulation (EC) No 1260/1999(1) provides for application of the principle of subsidiarity, under which the implementation of assistance is the responsibility of the Member States at the appropriate territorial level.

The same regulation also makes provision for arrangements for Commission participation in the implementation of assistance, in particular budgetary procedures, arrangements for payments to Member States, and Commission involvement in operational programme monitoring committees. Similarly, Commission regulations have been adopted establishing rules and procedures for the implementation, management and control of assistance granted (Regulation (EC) No 438/2001(2)) and an obligation to report irregularities and fraud to the Commission (Regulation (EC) No 1681/94(3)).

In the specific case of the Autonomous Community of Valencia, the operational programme for the period 1994-1999 (Programa Operativo de la Comunidad Autónoma Valenciana) has not yet been wound up, as the Commission has not yet received a request for payment of the balance, the final report or the certification to be provided by the national managing authorities pursuant to Regulation (EC) No 2064/97(4). The deadline given to the Spanish authorities to submit all the necessary documentation to the Commission is 30 June 2002.

As regards the operational programme for the period 2000-2006 (Programa Operativo Integrado de la Comunidad Autónoma Valenciana), the first meeting of the monitoring committee will take place in Valencia during June. At this meeting the Spanish authorities will have to report on implementation of the assistance. The Commission is also due to receive very soon the first annual report for the current period, describing the implementation and management of this operational programme.

(1) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds (OJ L 161, 26.6.1999).

(2) Commission Regulation (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural Funds (OJ L 63, 3.3.2001).

(3) Commission Regulation (EC) No 1681/94 of 11 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organisation of an information system in this field (OJ L 178, 12.7.1994).

(4) Commission Regulation (EC) No 2064/97 of 15 October 1997 establishing detailed arrangements for the implementation of Council Regulation (EEC) No 4253/88 as regards the financial control by Member States of operations co-financed by the Structural Funds (OJ L 290, 23.10.1997).