WRITTEN QUESTION E-0021/00

by Paulo Casaca (PSE) to the Commission

(19 January 2000)

Subject: The outermost regions and the allocation of structural funds

The programming of structural funds in the Autonomous Region of the Azores for the period 1994 to 1999 envisaged structural support worth PTE 149 200 075 million or EUR 744,207 million, equivalent to EUR 124,034 million per year, according to the latest rescheduling in 1999.

Although it already reflects the upward adjustment resulting from the relevant deflator, the amount is still quoted at current prices, since it is difficult to update it to 1999 prices.

In a letter to the Portuguese authorities dated 1 July 1999 the Commission proposed an indicative allocation of EUR 757 million for the Autonomous Region of the Azores for the period 2000 to 2006, equivalent to EUR 108 million per year.

This represents a substantial reduction, much more than the apparent reduction of EUR 16 million, in that the value for 1994-1999 has not been updated for 1999 and does not take account of the rise in revenue in both the Azores and the Community.

This Commission proposal blatantly contradicts all the promises and statements made by the Commission with regard to the outermost regions, in particular:

1. that the resources would be concentrated in the poorest regions;

2. that these regions would receive more amounts per year;

3. that the outermost regions in particular would benefit.

Apparently insensitive to the reality of numbers, the Commission continues to claim that the reform of the structural funds has brought more resources to all the outermost regions.

Does the Commission not consider it necessary to carry out a thorough review of the impact of the reform of Community policies in the poorest and most isolated regions, such as the Autonomous Region of the Azores, in particular in the context of the application of Article 299(2) of the Treaty?

Answer given by Mr Barnier on behalf of the Commission

(15 March 2000)

The Commission's letter to the Portuguese Government of 1 July 1999 to which the Honourable Member refers did no more than set out the consequence of the mathematical application of the general criteria that it had laid down for distributing structural aid to the various regions. Accordingly, this letter contained a purely hypothetical allocation of these amounts and did not seek to replace an analysis based on other considerations that might be taken into account when preparing the Community Support Framework.

Thus the Regional Development Plan presented by the Portuguese authorities on 13 October 1999 proposed allocating to the autonomous region of the Azores, under the regional operational programme to be applied, a total of EUR 848 million from the Structural Funds, plus a sum still to be determined for aid from Cohesion Fund. The Commission has no objection to the Portuguese proposal.

As requested by the Cologne European Council, the Commission will submit to the Council a report on measures to implement the new Article 299(2) (ex Article 227) of the EC Treaty concerning the outermost regions. This report should be submitted to the Council during the Portuguese Presidency and will also be forwarded to Parliament.