WRITTEN QUESTION E-3083/00

by Daniela Raschhofer (NI) to the Commission

(2 October 2000)

Subject: PHARE programme

The PHARE programme was introduced to bring the Central and Eastern European countries closer to the Union. Negotiations on accession by those countries are entering their final stages; the time consequently has come to take stock of the impact of PHARE programme support operations.

In its report on enlargement to the east (PE 286.105), the European Parliament's Committee on Industry states the following (paragraph 3): mldr however, the PHARE programme, partly due to its current management and priorities, has not yet been an overwhelming success; calls upon the Commission to submit to the European Parliament a separate progress report mldr.

How does the Commission rate the success of the PHARE programme?

Does the Commission share the view of the Committee on Industry that the PHARE programme has not hitherto been an overwhelming success?

Assuming that the Commission shares that committee's view, what are the reasons for the PHARE programme's relative lack of success, and what changes are being planned in order to achieve PHARE objectives?

Answer given by Mr Verheugen on behalf of the Commission

(7 December 2000)

In its recently released Phare 2000 Review Strengthening Preparations for membership(1), the Commission recognised that Phare's performance can still be improved in certain areas but that its basic orientations as introduced in 1997 and updated in 1999 continue to address the main needs of the applicant countries. Beneficial results arising from these orientations include: Phare programming has been fully re-oriented towards the accession priorities of the accession partnership and the annual regular reports; strengthening administrative capacities is now a key priority, with 200 Member States' civil servants in place advising their applicant country counterparts on priority acquis issues; new Phare management structures are operational in all ten candidate countries based on national funds, central financing and contracting units (CFCUs) and implementing agencies; the joint monitoring commitees are entering operation; and lastly, more responsibility has been deconcentrated to Commission delegations. Phare programmes focusing on promoting economic and social cohesion are being financed in 2000 on the basis of draft national development plans. Phare contracting rates are improving. The five worst performing countries in 1997 have shown substantial improvements in 1998. The average time between the financing memorandum and contracting is decreasing. Average contract size is increasing by between two and four times, depending on country. Phare's reforms sought to raise impact and, as a result, the number of Phare programmes rated as satisfactory or above in the Commission's assessment has increased from 39 % in 1999 to 56 % in 2000.

Despite the advances above, the Commission agrees with the committee's view that there is still substantial room for improvement on Phare (see communication section 2 and annex 1 for more detail).

As highlighted also in various reports by the Court of auditors, past problems have included: the disruption caused to candidate countries by introducing too many changes at the same time, some of which had not been sufficiently worked out in advance; the need for continued improvements in project design; certain problems regarding twinning and the lack of an effective Phare management information system.

All these problems are addressed in this communication. In summary, the communication identifies two additional broad challenges for Phare that must be tackled in the period 2000-2006 to achieve Phare's objectives better and deliver on the past reforms. There should be a period of relative stability to consolidate the past reforms and to ensure their full benefit is obtained. In addition, some of the 1997 reforms must be refined to respond to the constructive criticisms of the Court of auditors and Parliament. Lastly, efforts to raise impact and absorption capacity in the applicant countries must be further emphasised.

The objective of Phare in the structural funds area is to prepare for the implementation of structural funds in candidate countries by putting in place the necessary administrative and budgetary structures, and to allow these countries to benefit from a first generation of integrated regional development programmes of an objective 1 type contributing to their economic and social cohesion.

A new series of country evaluations under the Phare programme is at an early planning stage.

(1) C-2000-3103-2.