WRITTEN QUESTION P-1610/02

by Samuli Pohjamo (ELDR) to the Commission

(31 May 2002)

Subject: Structural Fund payments

The latest budget review figures indicate that the implementation of and payments under Structural Fund programmes in the current Agenda period have been progressing far too slowly. The slow programme approval procedure can no longer be held to blame, given that outstanding commitments have risen in May of this year to the equivalent of last year's level.

Parliament will be placed in a strange position when it is called upon to give discharge to the Commission in respect of the Structural Fund policy pursued notwithstanding the fact that the delays have in most cases been caused by Member States and not by the Commission.

One problem now beginning to arise is that if payments pile up at the end this Agenda period, the annual payment appropriation frameworks will not be sufficient. A further incipient problem lies in the n+2 rule, which reduces regional policy funding for many Member States even though local and regional operators are not to blame for the difficulties inherent in the complicated system.

What is the Commission doing to resolve the situation, which will soon become a political problem? Could it give a clear and open account to Parliament and the Member States? Could structural policy be simplified before the end of the current Structural Fund period to enable projects to be set genuinely in motion?

Answer given by Mr Barnier on behalf of the Commission

(4 July 2002)

A rapid increase in outstanding commitments (OCs) at the beginning of the year is not an indicator of the rapidity of implementation of structural action.

What happens is that the automatic commitment rule for the annual programme instalments initially creates OCs given that payments are made following actual execution by recipients and accordingly are spread throughout the year.

Thus during the first five months of 2002 almost all the Structural Fund appropriations were committed (EUR 30,4 billion in total) whereas payments amounted to EUR 6,2 billion. The difference is the temporary increase in OCs during the period. In the rest of the year commitments will rise no further whereas payments will progress normally and so gradually reduce OCs up to the end of the year.

This automatic commitment mechanism, in conjunction with the n+2 automatic decommitment rule, is an incitement to payment execution and when payment is not made permits reduction of the OCs.

The Commission wishes to point out that in line with the legislation in force it continuously monitors the state of advance of financial assistance and regularly reminds Member States of the importance of maintaining a satisfactory pace of assistance and the financial implications of failure to do so. It is preparing a communication on the topic.

The Honourable Member's wish for simplification has already been met as regards programme complement treatment under the Structural Fund rules in force. In the Committee on Development and Conversion of Regions the Commission is at present working with the national administrations on simplifying other aspects of implementation of the programmes part-financed by the Funds and it encourages the Member States to take the same approach in national rules. It will not fail to keep Parliament informed of the results of this work.