WRITTEN QUESTION No. 922/96 by José TORRES COUTO to the Commission. European Social Fund - Investments/Financing costs
Date: 1996-04-23
Institutions: European Parliament, TORRES COUTO
Subjects: EU financial instrument, European Social Fund, Structural Funds, employment aid, long-term unemployment, reintegration into working life, vocational training













EUR-Lex - 91996E0922 - EN






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91996E0922

WRITTEN QUESTION No. 922/96 by José TORRES COUTO to the Commission. European Social Fund - Investments/Financing costs  


Official Journal C 217 , 26/07/1996 P. 0128 





WRITTEN QUESTION E-0922/96 by José Torres Couto (PSE) to the Commission (23 April 1996)Subject: European Social Fund - Investments/Financing costsAccording to the Commission's understanding, profits from investments which project organizers have made or have occasion to make using funds transferred to them constitute income accruing to the European Social Fund.What is the Commission's attitude as regards the financing costs borne by project organizers when they are obliged to borrow money from banks in order to cope with lengthy delays in the transfer of the various 'instalments' of funds and balances owing from Brussels to the Member States? Can the Commission give reasons in support of its position?Answer given by Mr Flynn on behalf of the Commission (15 May 1996)According to the legislation in force (Article 21(1), (2) and (3) of Regulation (EEC) No 2082/93 ((OJ No L 193, 31.7.1993. ))) 'payments of financial assistance shall be made in accordance with the corresponding budgetary commitments to the national, regional or local authority or body designated for the purpose in the application submitted through the Member State concerned as a general rule within two months from receipt of an acceptable application'. The Commission scrupulously respects these deadlines. Provision is made in the same Article for a system of advances from the Commission to project organisers, covering up to 80% of the commitment.Payments made by project managers to final beneficiaries must comply with Article 21(5) of Regulation (EEC) No 2082/93 which stipulates that 'Member States shall designate the authorities empowered to issue the certificates referred to in paragraphs 3 and 4 and shall ensure that the beneficiaries receive the advances and payments as soon as possible, and as a general rule within three months of receipt of the appropriations by the Member State and provided that the beneficiaries' applications fulfil the conditions necessary for payment to be made'.The Commission checks national provisions relating to respect of the three-month deadline for the transfer of funds to the final beneficiaries in order to avoid cash deficits which might jeopardise the smooth implementation of the measures.With regard to eligibility of the financing costs borne by project organisers, the Commission would draw the Honourable Member's attention to Article 2 of Regulation (EEC) No 2084/931 which stipulates that no provision is made for such expenditure.Pursuant to Regulations (EEC) Nos 2081/931 and 2082/93, the Commission shall contribute to the cost of vocational training measures. If such measures generate income, in particular resulting from the use of advances received by project organisers, the cost of the measures is inevitably reduced. Therefore, in order to determine the real cost, these amounts must be considered as income from the measures.