WRITTEN QUESTION E-2591/98

by Elisabeth Schroedter (V) to the Commission

(1 September 1998)

Subject: Support for the "Friedrichshain Strategies, 1998-2000" project in Friedrichshain, Berlin

The European Union has provided support for the "Friedrichshain Strategies, 1998-2000" project in the Friedrichshain district of Berlin in connection with urban pilot schemes under Article 10 of the European Regional Development Fund. The district is also targeted by an URBAN project (Commission Decision 94/628/EC)(1) of 29 July 1994 concerning the Community support framework for the German Objective 1 regions). The urban pilot scheme was intended, inter alia, to create model jobs both directly, by integrating the long-term unemployed, and indirectly, through support measures for small and medium-sized enterprises.

1. Does the Commission consider that this objective has been attained?

2. Is the Commission in a position to check whether workers without social insurance have been employed in connection with the "Friedrichshain Strategies, 1998-2000" project?

3. How does the Commission prevent the financing of competing projects, particularly in the cultural sphere, coming under urban pilot schemes, the URBAN project and other public-sector development schemes in Friedrichshain?

4. What is the Commission's view of the question of a project supported by EU funds, which envisages indirect support for small and medium-sized enterprises in Friedrichshain, and which in reality contains no incentives to attract such enterprises?

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

(1 October 1998)

1. The project "strategies for Friedrichshain" was approved under the European regional development fund (ERDF) urban pilot projects programme in July 1997. It was one of 26 innovative projects selected out of more than 500 submitted by cities across Europe. The project funding runs from 1997 until December 1999 and the ERDF grant total for the project is ECU 2,19 million. The first advance of the ERDF funding has been paid to the project and further payments will depend on its satisfactory progress. The Commission monitors progress, but at this stage it is too early to assess whether the aims of the project have been achieved.

2. The project is, in addition, subject to audit during and after completion. The audit assesses financial management and compliance with the terms of the grant offer, including the need to comply with all relevant Community legislation. Projects are also subject to audit by national administrations, which would also seek to ascertain compliance with national legislation, for example on social insurance.

3. In terms of competition for funding, the Commission does not permit the double funding of a project through different Community programmes. This is prevented, amongst other measures, through inter-service consultation prior to the approval of grant for a project.

The Kirchbauhof GmbH, responsible for the urban pilot project, has also submitted several applications for grant under the URBAN Community initiative. None of these has been approved, and the "Kulturhaus Palisadenstrasse 48" has not received ERDF aid under the URBAN programme.

Generally, projects in the URBAN area are managed by the Beratungs- und Servicegesellschaft Umwelt GmbH which operates directly in the area and assesses the projects in coordination with the co-financing Berlin authorities (Bezirk/Land). Up to now, two projects have been approved in Friedrichshain under the URBAN programme, both in the context of energy saving concepts (St. Pius-Kirche and Schwimmhalle).

4. The main instrument proposed for support to small and medium sized enterprises (SME) within the urban pilot project is the consultation agency, which will offer advice and professional support to SMEs in the area. It is not yet possible to judge the success of this pilot project, although reports to date indicate progress is being made.

(1) OJ L 250, 26.9.1994, p. 18.