WRITTEN QUESTION E-0065/96 by Yannos Kranidiotis (PSE) to the Council (30 January 1996)

Subject: MEDA programme funding for Turkey

At the Euro-Mediterranean conference held in Barcelona in November 1995, the EU Member States and their Mediterranean partners took joint decisions on their future relations and the objectives to be pursued to promote development and consolidate peace and stability in the Mediterranean region. To attain these objectives and enable the Mediterranean countries to cope with the difficulties they face, the Community provided for financial aid to those countries under the MEDA programme.

One of the countries due to receive funding under the MEDA programme is Turkey. This programme, however, is not Turkey's only source of finance. Apart from the substantial sum which the Commission indicates that Turkey is to receive from MEDA, the country will also obtain ECU 375 million of the sum agreed at Cannes as financial aid once the European Parliament has adopted the regulation on a special measure for Turkey. The result of this, however, will be to reduce the amounts allocated for third Mediterranean countries, while Turkey collects money from several sources.

How much of total MEDA funding has been earmarked for Turkey and what are the criteria for the payments to that country?

Reply (27 June 1996)

The Cannes European Council agreed to make available to the Mediterranean partners of the European Union an overall amount of ECU 4 685 million for financial cooperation over the period 1995-99. These funds are intended for all 12 Mediterranean partners associated with the process of the Euro-Mediterranean Conference of Barcelona, including Turkey.

Furthermore, in the context of the overall political framework for the development of the future relations between the European Union and Turkey on the one hand, and Cyprus on the other, as well as the Customs Union with Turkey, as agreed upon by the Council on 6 March 1995, the Community made a declaration concerning the resumption of financial cooperation with Turkey. In that declaration the Community acknowledged that in order to adapt its industrial sector to the new competitive situation created by the Customs Union and improve its infrastructure linkage with the European Union (road transport, ports, airports, railways, telecommunications and electricity), as well as to reduce the difference between its economy and that of the Community, Turkey would need substantial financial resources, in particular long-term loans and technical assistance.

In the light of those points, the Community informed Turkey that it would benefit from:

* budgetary resources of ECU 375 million for a five-year period starting in 1996, and from the MEDA financing system;

* access to EIB funds under the 1992-96 new Mediterranean policy (an amount of between ECU 300 and 400 million), additional loans over a five-year period starting in 1996 (ECU 750 million) and from MEDA financing system.

It ensures from the foregoing that Turkey should naturally benefit from gifts under the MEDA financing system and that the amount approved by the Cannes European Council for Mediterranean third countries was agreed on taking into account that commitment to Turkey. The other Mediterranean partners are therefore not penalized because of the funds to be made available to Turkey.

The detailed procedures for implementing financial cooperation with all Mediterranean third countries are currently being examined in the context of the draft MEDA Regulation, which remains to be finalized.

The allocation of these funds amongst the Mediterranean partners, which is largely the Commission's responsibility, has not yet been carried out. It will be done after the MEDA Financial Regulation enters into force, in the light, on the one hand, of the general guidelines for financial cooperation and of the national indicative programmes adopted in accordance with the relevant provisions of that Regulation, and, on the other hand, of the negotiations with the third countries concerned on Euro-Mediterranean association agreements.