WRITTEN QUESTION E-0359/99

by Elisabeth Schroedter (V) to the Commission

(1 March 1999)

Subject: Diversion of European regional funding from the European Regional Development Fund (ERDF) by the government of the Land of Mecklenburg-Western Pomerania to feeder roads to the A20 motorway

In its answer to my question of 16 April 1998 on the same subject (E-0518/98)(1), the Commission stated that it had no information about the diversion of ERDF funding to basic infrastructure measures at federal or Land level in Mecklenburg-Western Pomerania. It also stated that general infrastructure measures could not be funded from ERDF resources.

At the same time, however, it is clear from public statements by Mecklenburg-Western Pomerania's Minister for Economic Affairs, Mr Rolf Eggert, that planning work is currently beginning on linking the island of Rügen to the A20 motorway, a project which is to be financed with ERDF funding totalling DM 272 million (of a planned total estimated amount of DM 724 million, i.e. over one third).

1. Does the Commission take the view that, in the case of such subsidies, EU funds are being used economically and efficiently as intended, particularly in terms of their employment impact and the promotion of small and medium- sized undertakings? If so, what impact on employment does it anticipate and how many jobs could actually be created directly and indirectly?

2. Was it consulted before the diversion of economic development funding to basic infrastructure measures in Mecklenburg-Western Pomerania? If so, did it approve this diversion? If not, what action will it be taking to halt the misuse of ERDF funding?

Answer given by Ms Wulf-Mathies on behalf of the Commission

(31 March 1999)

The Commission has not been officially notified of the project for European Regional Development Fund (ERDF) part-financing of an access road from the island of Rügen to the A 20 motorway. In its answer to Written Question E-518/98, the Commission explained that a scheme of this kind could not be part-financed within the provisions of the Community support framework (CSF) for Objective 1 regions in Germany for the period 1994 to 1999: in view of the stage the programmes in question are at as regards commitments and expenditure, the possibility of Community assistance for this project during the current programming period must be ruled out.

As far as the next programming period is concerned (2000 to 2006), the draft ERDF Regulation(2) provides for the possibility of part-financing for investment in infrastructure contributing to increasing the economic potential, development, structural adjustment and sustainable employment in Objective 1 regions. In less-favoured areas, and in particular the remote regions and islands of the Community, the development of transport infrastructures can indeed play a key role in improving the competitive position of businesses and regional prosperity (cf. the Commission communication of 14 January 1999)(3). In this context the Commission will pay particular attention to connections and interconnections with the trans-European networks (TENs), which include the A 20 motorway under construction.

Once the new Structural Fund regulations have been adopted, it will be up to the national authorities to decide whether they wish to submit the Rügen-A 20 link project to the Commission under the Structural Fund assistance programming for Mecklenburg-Western Pomerania. The Commission will not be in a position to consider the effectiveness of this scheme in terms of cost, environmental impact, economic benefits and effects on employment in the region until the authorities have submitted this project to it. Major projects accounting for a total eligible cost of over EUR 50 million will have to be approved by special procedure on the basis of very precise details to be supplied by the Member State concerned (see Articles 24 and 25 of the draft Regulation laying down general provisions on the Structural Funds.

In order to maximise the impact of budget resources, the Commission will as far as possible give preference to schemes involving a public-private partnership, combining Community subsidies and loans (with the participation of the European Investment Bank) with private funding.

(1) OJ C 402, 22.12.1998, p. 13.

(2) OJ C 176, 9.6.1998.

(3) COM(98) 806 final.